XML 54 R42.htm IDEA: XBRL DOCUMENT v3.22.2.2
BUSINESS SEGMENT INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]        
Pretax adjusted earnings [1] $ 880 $ 1,293 $ 3,156 $ 3,940
Net investment gains (losses) [2],[3],[4],[5],[6] 222 (172) 923 216
Other income (loss) 1 (8) 1 (66)
Earnings before income taxes 1,103 1,113 4,080 4,090
Income taxes applicable to pretax adjusted earnings 156 262 565 771
Effect of foreign currency translation on after tax adjusted earnings (53) (14) (147) (8)
Interest expense on debt 45 40 127 130
Aflac Japan        
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]        
Pretax adjusted earnings [2],[5] 630 976 2,351 2,867
Hedge costs 28 20 84 55
Net interest cash flows from derivatives (25) (7) (37) (24)
Aflac U.S.        
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]        
Pretax adjusted earnings [6] 309 358 984 1,217
Net interest cash flows from derivatives (1) 1 1 1
Corporate and other        
Segment Reporting, Reconciling Item for Adjusted Profit (Loss) from Segment to Consolidated [Line Items]        
Pretax adjusted earnings [3],[4],[7] (59) (41) (179) (144)
Hedge income 19 13 44 45
Gain (loss) on change in fair value of derivative, interest rate component 13 14 38 41
Income (loss) from federal historic rehabilitation and solar tax credit investments (19) (5) (61) (35)
Federal historic rehabilitation and solar tax credits, amount $ 19 $ 10 $ 63 $ 35
[1] Includes $45 and $40 for the three-month periods and $127 and $130 for the nine-month periods ended September 30, 2022, and 2021, respectively, of interest expense on debt.
[2] Amortized hedge costs of $28 and $20 for the three-month periods and $84 and $55 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations.
[3] A gain of $13 and $14 for the three-month periods and $38 and $41 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations.
[4] Amortized hedge income of $19 and $13 for the three-month periods and $44 and $45 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations.
[5] Net interest cash flows from derivatives associated with certain investment strategies of $(25) and $(7) for the three-month periods and $(37) and $(24) for the nine-month periods ended September 30, 2022, and 2021, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.
[6] Net interest cash flows from derivatives associated with certain investment strategies of $(1) and $1 for the three-month periods and $1 and $1 for the nine-month periods ended September 30, 2022, and 2021, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations.
[7] The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month periods and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.