XML 28 R17.htm IDEA: XBRL DOCUMENT v3.24.1.u1
NOTES PAYABLE AND LEASE OBLIGATIONS
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
NOTES PAYABLE AND LEASE OBLIGATIONS NOTES PAYABLE AND LEASE OBLIGATIONS
A summary of notes payable and lease obligations follows:
(In millions)March 31,
2024		December 31,
2023
1.125% senior sustainability notes due March 2026
$398 $398 
2.875% senior notes due October 2026
299 299 
3.60% senior notes due April 2030
993 993 
6.90% senior notes due December 2039
221 221 
6.45% senior notes due August 2040
254 254 
4.00% senior notes due October 2046
394 394 
4.750% senior notes due January 2049
542 542 
Yen-denominated senior notes and subordinated debentures:
.300% senior notes due September 2025 (principal amount ¥12.4 billion)
82 87 
.932% senior notes due January 2027 (principal amount ¥60.0 billion)
395 422 
1.048% senior notes due March 2029 (principal amount ¥13.0 billion)
86 0 
1.075% senior notes due September 2029 (principal amount ¥33.4 billion)
220 234 
.500% senior notes due December 2029 (principal amount ¥12.6 billion)
83 88 
.550% senior notes due March 2030 (principal amount ¥13.3 billion)
87 93 
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)
192 206 
1.412% senior notes due March 2031 (principal amount ¥27.9 billion)
184 0 
.633% senior notes due April 2031 (principal amount ¥30.0 billion)
197 211 
.843% senior notes due December 2031 (principal amount ¥9.3 billion)
61 65 
.750% senior notes due March 2032 (principal amount ¥20.7 billion)
136 145 
1.320% senior notes due December 2032 (principal amount ¥21.1 billion)
139 148 
.844% senior notes due April 2033 (principal amount ¥12.0 billion)
79 84 
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)
100 106 
1.682% senior notes due March 2034 (principal amount ¥7.7 billion)
51 0 
1.600% senior notes due March 2034 (principal amount ¥18.3 billion)
122 0 
.934% senior notes due December 2034 (principal amount ¥9.8 billion)
64 69 
.830% senior notes due March 2035 (principal amount ¥10.6 billion)
69 74 
1.740% senior notes due March 2036 (principal amount ¥15.0 billion)
100 0 
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)
65 70 
1.594% senior notes due September 2037 (principal amount ¥6.5 billion)
43 45 
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)
58 62 
1.920% senior notes due March 2039 (principal amount ¥16.5 billion)
110 0 
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)
41 44 
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)
65 70 
2.160% senior notes due March 2044 (principal amount ¥5.7 billion)
38 0 
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)
392 419 
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) (1)
198 211 
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)
131 140 
2.144% senior notes due September 2052 (principal amount ¥12.0 billion)
79 84 
1.958% subordinated bonds due December 2053 (principal amount ¥30.0 billion)
197 210 
2.400% senior notes due March 2054 (principal amount ¥19.5 billion)
130 0 
Yen-denominated loans:
Variable interest rate loan due August 2027 (.38% in 2024 and .35% in 2023,
  principal amount ¥11.7 billion)
77 82 
Variable interest rate loan due August 2029 (.48% in 2024 and .45% in 2023,
  principal amount ¥25.3 billion)
166 178 
Variable interest rate loan due August 2032 (.63% in 2024 and .60% in 2023,
  principal amount ¥70.0 billion)
461 492 
Finance lease obligations payable through 20306 6 
Operating lease obligations payable through 2049107 118 
Total notes payable and lease obligations$7,912 $7,364 
(1) Redeemed in April 2024
Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.
In March 2024, the Parent Company issued five series of senior notes totaling ¥75.0 billion through a private placement. The first series, which totaled ¥18.3 billion, bears interest at a fixed rate of 1.600% per annum, payable semi-annually, and will mature in March 2034. The second series, which totaled ¥15.0 billion, bears interest at a fixed rate of 1.740% per annum, payable semi-annually, and will mature in March 2036. The third series, which totaled ¥16.5 billion, bears interest at a fixed rate of 1.920% per annum, payable semi-annually, and will mature in March 2039. The fourth series, which totaled ¥5.7 billion, bears interest at a fixed rate of 2.160% per annum, payable semi-annually, and will mature in March 2044. The fifth series, which totaled ¥19.5 billion, bears interest at a fixed rate of 2.400% per annum, payable semi-annually, and will mature in March 2054. These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed.

In March 2024, the Parent Company issued three series of senior notes totaling ¥48.6 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥13.0 billion, bears interest at a fixed rate of 1.048% per annum, payable semi-annually, and will mature in March 2029. The second series, which totaled ¥27.9 billion, bears interest at a fixed rate of 1.412% per annum, payable semi-annually, and will mature in March 2031. The third series, which totaled ¥7.7 billion, bears interest at a fixed rate of 1.682% per annum, payable semi-annually, and will mature in March 2034. These notes are redeemable at the Parent Company’s option at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance. In addition, the notes maturing in March 2029, March 2031 and March 2034 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after December 21, 2028, December 31, 2030 and September 21, 2033, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $46 million and $47 million for the three-month periods ended March 31, 2024 and 2023, respectively.
A summary of the Company's lines of credit as of March 31, 2024 follows:
Borrower(s)TypeTermExpiration DateCapacityAmount OutstandingInterest Rate on Borrowed AmountMaturity PeriodCommitment FeeBusiness Purpose
Aflac Incorporated
and Aflac		uncommitted bilateral364 daysDecember 6, 2024
$100 million
$0 million
The rate quoted by the bank and agreed upon at the time of borrowing
Up to 3 months
NoneGeneral corporate purposes
Aflac Incorporatedunsecured revolving5 yearsMay 9,
2027, or the date commitments are terminated pursuant to an event of default
¥100.0 billion
¥0.0 billion
A rate per annum equal to (a) Tokyo Interbank Market Rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out periodNo later than
May 10, 2027
.28% to .45%, depending on the Parent Company's debt ratings as of the date of determination
General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated
and Aflac		unsecured revolving5 yearsNovember 15, 2027, or the date commitments are terminated pursuant to an event of default
$1.0 billion
$0.0 billion
A rate per annum equal to, at the Company's option, either, (a) Secured Overnight Financing Rate (SOFR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by the agent as its prime rate, or (3) SOFR for an interest period of one month plus 1.00%, in each case plus an applicable marginNo later than November 15, 2027
.08% to
.20%, depending on the Parent Company's debt ratings as of the date of determination
General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated
and Aflac		uncommitted bilateralNone specifiedNone specified
$50 million
$0 million
A rate per annum equal to, at the Parent Company's option, either (a) a rate determined by reference to SOFR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (1) the lender's USD short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1%
Up to 3 months
NoneGeneral corporate purposes
Aflac(1)
uncommitted revolving364 daysDecember 2, 2024
$250 million
$50 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annumNo later than December 3, 2024NoneGeneral corporate purposes
Aflac Incorporated(1)
(Tranche 1)
uncommitted revolving364 daysNovember 25, 2024
¥50.0 billion
¥0.0 billion
Three-month yen TIBOR plus 75 basis points per annumNo later than November 26, 2024NoneGeneral corporate purposes
Aflac Incorporated(1)
(Tranche 2)
uncommitted revolving364 daysNovember 25, 2024
¥50.0 billion
¥0.0 billion
Three-month yen TIBOR plus 75 basis points per annumNo later than November 26, 2024NoneGeneral corporate purposes
Aflac New York(1),(2)
uncommitted revolving364 daysApril 8,
2024
$25 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annumNo later than
April 9, 2024		NoneGeneral corporate purposes
CAIC(1)
uncommitted revolving364 daysMarch 21,
2025
$15 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annumNo later than
March 24, 2025		NoneGeneral corporate purposes
(1) Intercompany credit agreement
(2) Renewed in April 2024 with an expiration date of April 8, 2025
(continued)
Borrower(s)TypeTermExpiration DateCapacityAmount OutstandingInterest Rate on Borrowed AmountMaturity PeriodCommitment FeeBusiness Purpose
TOIC(1)
uncommitted revolving364 daysMarch 21,
2025
$0.3 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annumNo later than
March 24, 2025		NoneGeneral corporate purposes
Hatch Healthcare
K.K.(1)
uncommitted revolving364 daysJanuary 2,
2025
¥900 million
¥0 million
A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable periodNo later than January 3, 2025NoneGeneral corporate purposes
Aflac Digital Services Co., Ltd.(1)
uncommitted revolving364 daysJanuary 2,
2025
¥600 million
¥0 million
A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable periodNo later than January 3, 2025NoneGeneral corporate purposes
Aflac GI Holdings LLC(1)
uncommitted revolving364 daysJuly 16,
2024
$30 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annumNo later than
July 17, 2024		NoneGeneral corporate purposes
Aflac Incorporated(1)
uncommitted revolving364 daysJanuary 2,
2025
$400 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 97 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 97 basis points per annum for Japanese yen-denominated borrowingsNo later than January 3, 2025NoneGeneral corporate purposes
Aflac Re(1)
uncommitted revolving364 daysJanuary 2,
2025
$400 million
$0 million
Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowingsNo later than January 3, 2025NoneGeneral corporate purposes
(1) Intercompany credit agreement

The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2024. No events of default or defaults occurred during the three-month period ended March 31, 2024.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2023 Annual Report.