BUSINESS SEGMENT AND SELECTED FOREIGN CURRENCY TRANSLATION ITEMS (Tables)

12 Months Ended

Dec. 31, 2023

Reconciliation of Revenue from Segments to Consolidated

Information regarding operations by reportable segment and Corporate and other for the years ended December 31 follows:


(In millions)	2023			2022			2021
Revenues:
Aflac Japan:
Net earned premiums: (1)
Cancer		$	4,054		$	4,702		$	5,718
Medical and other health		2,451			2,706			3,287
Life insurance		1,542			1,778			2,296
Adjusted net investment income		2,582			2,669			3,031
Other income		35			35			41
Total adjusted revenue Aflac Japan		10,664			11,890			14,373
Aflac U.S.:
Net earned premiums:
Accident		1,284			1,314			1,362
Disability		1,249			1,171			1,162
Critical care		1,743			1,753			1,797
Hospital indemnity		720			722			730
Dental/vision		214			199			188
Life insurance		432			372			332
Other		33			39			43
Adjusted net investment income		820			755			754
Other income		128			161			121
Total adjusted revenue Aflac U.S.		6,623			6,486			6,489
Corporate and other (2)		460			267			175
Total adjusted revenues		17,747			18,643			21,037
Net investment gains (losses)		590			363			468
Reconciling items:
Amortized hedge costs		157			112			76
Amortized hedge income		(121)			(68)			(57)
Net interest cash flows from derivatives		328			90			30
Total revenues		$	18,701		$	19,140		$	21,554

(1) Includes a gain (loss) of $20, $(42) and $(11) in 2023, 2022 and 2021, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

(2) The change in value of federal historic rehabilitation and solar investments in partnerships of $343, $91 and $138 in 2023, 2022 and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $334, $83 and $115 in 2023, 2022 and 2021, respectively, have been recorded as an income tax benefit in the consolidated statements of earnings. See Note 3 for additional information on these investments.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated


(In millions)	2023			2022			2021
Pretax earnings:
Aflac Japan (1)		$	3,234		$	3,281		$	3,756
Aflac U.S.		1,501			1,359			1,356
Corporate and other (2)		(425)			(218)			(293)
Pretax adjusted earnings		4,310			4,422			4,819
Other income (loss)		39			0			(73)
Net investment gains (losses)		590			363			468
Reconciling items:
Amortized hedge costs		157			112			76
Amortized hedge income		(121)			(68)			(57)
Net interest cash flows from derivatives		328			90			30
Interest rate component of the change in fair value of foreign currency		(41)			(50)			(55)
Total earnings before income taxes		$	5,262		$	4,869		$	5,208
Income taxes applicable to pretax adjusted earnings		$	577		$	808		$	893
Effect of foreign currency translation on after-tax adjusted earnings		(113)			(262)			(35)

(1) Includes a gain (loss) of $20, $(42) and $(11) for 2023, 2022 and 2021, respectively, related to remeasurement of the deferred profit liability for limited-payment contracts.

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Foreign Currency Disclosure

The following table shows the yen/dollar exchange rates used for or during the periods ended December 31. Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year.


	2023				2022				2021
Statements of Earnings:
Weighted-average yen/dollar exchange rate (1)		140.57				130.17				109.79
Yen percent strengthening (weakening)		(7.4)		%		(15.7)		%		(2.7)		%
Exchange effect on pretax adjusted earnings (in millions)		$	(131)			$	(318)			$	(43)


	2023				2022
Balance Sheets:
Yen/dollar exchange rate at December 31(1)		141.83				132.70
Yen percent strengthening (weakening)		(6.4)		%		(13.3)		%
Exchange effect on total assets (in millions)		$	(3,984)			$	(11,099)
Exchange effect on total liabilities (in millions)		(6,936)				(9,513)

(1) Rates are based on the published MUFG Bank, Ltd. telegraphic transfer middle rate (TTM)

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Schedule of Intercompany Transfers of Funds

Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan.


(In millions)	2023			2022			2021
Management fees		$	67		$	61		$	59

Profit remittances		2,623			2,412			2,138
Total transfers from Aflac Japan		$	2,690		$	2,473		$	2,197

Reconciliation of Assets from Segment to Consolidated

The Company's total assets as of December 31 were as follows:


(In millions)	2023			2022
Assets:
Aflac Japan		$	101,541		$	105,734
Aflac U.S.		21,861			21,002
Corporate and other		3,322			5,002
Total assets		$	126,724		$	131,738

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

Property, Plant and Equipment

Classes of property and equipment as of December 31 were as follows:


(In millions)	2023			2022
Property and equipment:
Land		$	168		$	168
Buildings		421			437
Equipment and furniture		510			587
Total property and equipment		1,099			1,192
Less accumulated depreciation		654			662
Net property and equipment		$	445		$	530