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SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
As of December 31, 2023, the Company has outstanding share-based awards under the Aflac Incorporated Long-Term Incentive Plan (As Amended and Restated February 14, 2017), as further amended on August 9, 2022 (the Plan). Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors.
The Plan allows for a maximum number of shares issuable over its term of 75 million shares including 38 million shares that may be awarded in respect of awards other than options or stock appreciation rights. If any awards granted under the Plan are forfeited or are terminated before being exercised or settled for any reason other than tax forfeiture, then the shares underlying the awards will again be available under the Plan.
The Plan allows awards to Company employees for incentive stock options (ISOs), non-qualifying stock options (NQSOs), restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. As of December 31, 2023, approximately 34.8 million shares were available for future grants under this plan. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of December 31, 2023, the only performance-based awards issued and outstanding were restricted stock awards and units.

Stock options and stock appreciation rights granted under the amended Plan have an exercise price of at least the fair market value of the underlying stock on the grant date and have an expiration date no later than 10 years from the grant date. Time-based restricted stock awards, restricted stock awards and stock options generally vest on a ratable basis over three years. The Compensation Committee of the board of directors has the discretion to determine vesting schedules.

Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.
Summary of Share-Based Compensation Expense
Share-based compensation expense consists primarily of expenses for stock options, restricted stock awards (including performance based restricted stock awards), and restricted stock units granted to employees.

The following table presents the impact of the expense recognized in connection with share-based awards for the years ended December 31.
(In millions, except for per-share amounts)202320222021
Impact on earnings from continuing operations$79 $69 $65 
Impact on earnings before income taxes79 69 65 
Impact on net earnings62 55 51 
Impact on net earnings per share:
Basic$.10 $.09 $.08 
Diluted.10 .09 .08 
Stock Options

The following table summarizes stock option activity under the employee stock option plan.
(In thousands of shares)Stock
Option
Shares		Weighted-Average
Exercise Price
Per Share
Outstanding at December 31, 20203,045 $30.25 
Granted in 20210 0.00 
Canceled in 2021(4)16.93 
Exercised in 2021(896)28.45 
Outstanding at December 31, 20212,145 31.02 
Granted in 20220 0.00 
Canceled in 2022(8)32.43 
Exercised in 2022(560)28.11 
Outstanding at December 31, 20221,577 32.05 
Granted in 20230 0.00 
Canceled in 20230 24.75 
Exercised in 2023(526)30.35 
Outstanding at December 31, 20231,051 $32.90 

(In thousands of shares)202320222021
Shares exercisable, end of year1,051 1,577 2,145 

The Company estimates the fair value of each stock option granted using the Black-Scholes-Merton multiple option approach. Expected volatility is based on historical periods generally commensurate with the estimated terms of the options. The Company uses historical data to estimate option exercise and termination patterns within the model. Separate groups of employees that have similar historical exercise patterns are stratified and considered separately for valuation purposes. The expected term of options granted is derived from the output of the Company's option model and represents the weighted-average period of time that options granted are expected to be outstanding. The Company bases the risk-free interest rate on the Treasury note rate with a term comparable to that of the estimated term of the options. There were no options granted in 2023, 2022 or 2021. The following table presents the assumptions used in valuing options granted, if applicable, during the years ended December 31.
202320222021
Expected term (years)8.07.87.9
Expected volatility26.7 %25.8 %25.6 %
Annual forfeiture rate4.2 4.0 3.8 
Risk-free interest rate3.0 1.6 1.0 
Dividend yield2.3 2.7 3.0 

The following table summarizes information about stock options outstanding and exercisable at December 31, 2023.
(In thousands of shares)Options OutstandingOptions Exercisable
Range of
Exercise Prices
Per Share		Stock Option
Shares
Outstanding		Wgtd.-Avg.
Remaining
Contractual
Life (Yrs.)		Wgtd.-Avg.
Exercise
Price
Per Share		Stock Option
Shares
Exercisable		Wgtd.-Avg.
Exercise
Price
Per Share
$0.00 -$24.75 0 0.0$0.00 0 $0.00 
24.75 -28.97 217 2.128.96 217 28.96 
28.97 -31.21 368 1.030.57 368 30.57 
31.21 -36.21 317 2.834.68 317 34.68 
36.21 -44.59 149 3.840.57 149 40.57 
$0.00 -$44.59 1,051 2.2$32.90 1,051 $32.90 
The aggregate intrinsic value in the following table represents the total pretax intrinsic value, and is based on the difference between the exercise price of the stock options and the quoted closing common stock price of $82.50 as of December 31, 2023, for those awards that have an exercise price currently below the closing price. As of December 31, 2023, the aggregate intrinsic value of stock options outstanding was $52 million, with a weighted-average remaining term of 2.2 years. The total number of in-the-money stock options exercisable as of December 31, 2023, was 1.1 million shares. The aggregate intrinsic value of stock options exercisable at that same date was $52 million, with a weighted-average remaining term of 2.2 years.

The following table summarizes stock option activity during the years ended December 31.
(In millions)202320222021
Total intrinsic value of options exercised$22 $20 $21 
Cash received from options exercised16 16 26 
Tax benefit realized as a result of options exercised and
  restricted stock releases		20 18 17 

Performance-Based Restricted Stock Awards and Units

Under the Plan, the Company grants selected executive officers performance-based restricted stock awards (PBRS) each February whose vesting is contingent upon meeting various performance goals. PBRS are generally granted at-the-money and contingently cliff vest over a period of three years, generally subject to continued employment. In February 2023, the Company granted 354 thousand performance-based stock awards, which are contingent on the achievement of the Company's financial performance metrics and its market-based conditions. On the date of grant, the Company estimated the fair value of restricted stock awards with market-based conditions using a Monte Carlo simulation model. The model discounts the value of the stock at the assumed vesting date based on a risk-free interest rate. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter. Actual performance, including modification for relative total shareholder return, may result in the ultimate award of 0% to 200% percent of the initial number of PBRS issued, with the potential for no award if company performance goals are not achieved during the three-year period. PBRS subject to accelerated vesting at the date of retirement eligibility are recognized over the implicit service period.

The Company also granted selected executive officers performance-based restricted stock units (PSUs) throughout the year whose vesting is contingent upon meeting various performance goals. PSUs are generally granted at-the-money and contingently cliff vest over a period of three years, generally subject to continued employment. In 2023, the Company granted 105 thousand performance-based stock units, which are contingent on the achievement of certain Company determined metrics. Based on estimates of actual performance versus the vesting thresholds, the calculated fair value percentage pay-out estimate will be updated each quarter. Actual performance may result in the ultimate award of 0% to 200% percent of the initial number of PSUs issued, with the potential for no award if the Company determined metrics are not achieved during the three-year period. PSUs subject to accelerated vesting at the date of retirement eligibility is recognized over the implicit service period.

The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, a Monte Carlo simulation model. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards.

Key assumptions used to value PBRS granted during 2023 follows:
(In millions)2023
Expected volatility (based on Aflac Inc. and peer group historical daily stock price) 32.3 %
Expected life from grant date (years)2.9
Risk-free interest rate (based on U.S. Treasury yields at the date of grant)4.1 %
Restricted Stock Awards and Units
The value of restricted stock awards and restricted stock units is based on the fair market value of the Company's common stock at the date of grant. The following table summarizes restricted stock activity during the years ended December 31. 
(In thousands of shares)SharesWeighted-Average
Grant-Date
Fair Value
Per  Share
Restricted stock at December 31, 20202,580 $48.57 
Granted in 20211,496 47.87 
Canceled in 2021(148)49.00 
Vested in 2021(1,371)45.80 
Restricted stock at December 31, 20212,557 49.38 
Granted in 20221,119 66.72 
Canceled in 2022(96)54.59 
Vested in 2022(1,166)49.64 
Restricted stock at December 31, 20222,414 56.21 
Granted in 20231,171 70.74 
Canceled in 2023(112)60.62 
Vested in 2023(1,165)52.77 
Restricted stock at December 31, 20232,308 $62.96 

As of December 31, 2023, total compensation cost not yet recognized in the Company's financial statements related to restricted stock awards and restricted stock units was $31 million, of which $13 million (2.0 million shares) was related to restricted stock awards with a performance-based vesting condition. The Company expects to recognize these amounts over a weighted-average period of approximately 1.7 years. There are no other contractual terms covering restricted stock awards once vested.