-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AZzdDS7wvzoufqU9UM1dOqstXIcSdByPRosLbD0pcknozrZbCMneeBs6dNAnffLs fSG2+mxwsE221UjkcfqanQ== 0000004977-99-000024.txt : 19990624 0000004977-99-000024.hdr.sgml : 19990624 ACCESSION NUMBER: 0000004977-99-000024 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990623 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AFLAC INC CENTRAL INDEX KEY: 0000004977 STANDARD INDUSTRIAL CLASSIFICATION: ACCIDENT & HEALTH INSURANCE [6321] IRS NUMBER: 581167100 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-07434 FILM NUMBER: 99650667 BUSINESS ADDRESS: STREET 1: 1932 WYNNTON RD CITY: COLUMBUS STATE: GA ZIP: 31999 BUSINESS PHONE: 7063233431 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN FAMILY CORP DATE OF NAME CHANGE: 19920306 11-K 1 FORM 11-K FOR 401K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 1998 AFLAC INCORPORATED 401(k) PLAN 1932 Wynnton Road Columbus, Georgia 31999 Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AFLAC INCORPORATED 401(k) PLAN Date: June 23, 1999 By: /s/ Angela S. Hart ---------------------------------- Angela S. Hart Senior Vice President, Director of Human Resources AFLAC INCORPORATED 401(k) PLAN Table of Contents ----------------- Page ---- Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits 2 Statements of Changes in Net Assets Available for Plan Benefits 3 Notes to Financial Statements 4-15 Item 27a - Schedule of Assets Held for Investment Purposes 16 Item 27d - Schedule of Reportable Transactions 17 Exhibit 23 - Independent Auditors' Consent 18 i INDEPENDENT AUDITORS' REPORT The Administrative Committee AFLAC Incorporated 401(k) Plan: We have audited the accompanying statements of net assets available for plan benefits of the AFLAC Incorporated 401(k) Plan (the Plan) as of December 31, 1998 and 1997, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the AFLAC Incorporated 401(k) Plan at December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements of the AFLAC Incorporated 401(k) Plan taken as a whole. The supplementary information included in Schedules 1 and 2 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. KPMG LLP May 28, 1999 Atlanta, GA 1 AFLAC INCORPORATED 401(k) PLAN Statements of Net Assets Available for Plan Benefits December 31,
1998 1997 ---------- ---------- Assets: Investments (Note 5): Money market funds $ 2,024,987 $ 1,781,116 Mutual funds (cost $17,809,985 in 1998, $15,038,049 in 1997) 19,143,312 16,665,210 AFLAC Incorporated common stock (cost $11,266,152 in 1998, $8,086,594 in 1997) 29,150,111 15,604,603 Participants' notes receivable 1,799,636 938,509 ---------- ---------- Total investments 52,118,046 34,989,438 ---------- ---------- Receivables: Employer contributions 126,314 89,549 Accrued interest and dividends 14,269 - ---------- ---------- Total receivables 140,583 89,549 ---------- ---------- Cash 591,344 1,285,429 ---------- ---------- Total assets 52,849,973 36,364,416 ---------- ---------- Liabilities: Excess employee contributions payable 4,627 13,650 Other 80,152 905,531 ---------- ---------- Total liabilities 84,779 919,181 ---------- ---------- Net assets available for plan benefits $52,765,194 $35,445,235 ========== ========== See accompanying Notes to Financial Statements.
2 AFLAC INCORPORATED 401(k) PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31,
1998 1997 ---------- ---------- Contributions: Participant withholdings $ 3,879,310 $ 3,583,036 Participant transfers from other plans 217,499 133,462 Employer matching 2,051,943 1,536,531 ---------- ---------- Total 6,148,752 5,253,029 Interest and dividend income 1,530,165 1,391,039 Net realized gains on sale of investments 1,809,024 8,323,481 Change in net unrealized appreciation (depreciation) on investments 10,072,116 (1,775,165) Distributions to participants (2,169,422) (3,115,052) Forfeitures (70,676) (108,771) Transfer of Broadcast Division Plan assets - (10,357,501) ---------- ---------- Increase (decrease) in net assets 17,319,959 (388,940) Net assets available for plan benefits: Beginning of year 35,445,235 35,834,175 ---------- ---------- End of year $52,765,194 $35,445,235 ========== ========== See accompanying Notes to Financial Statements.
3 AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements December 31, 1998 and 1997 (1) DESCRIPTION OF THE PLAN The AFLAC Incorporated 401(k) Plan (the Plan) was established for the benefit of the employees of AFLAC Incorporated and related companies, American Family Life Assurance Company of Columbus (excluding Japan Branch employees), American Family Life Assurance Company of New York, AFLAC Broadcast Division, AFLAC International, Inc., and Communicorp, Inc. The AFLAC Broadcast Division was sold in 1997. All Plan assets related to the broadcast division were transferred to a trust established by the purchaser. The following description provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. (a) GENERAL. The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Eligible employees may voluntarily participate in the Plan on the first day of the month which coincides with or next follows the completion of thirty days of employment. The Plan is administered by a plan administrator appointed by the Company's Board of Directors. All Plan expenses are paid by the Company. (b) CONTRIBUTIONS. Contributions to the Plan are made by both participants and the Company. For the years 1998 and 1997, participants could contribute through payroll deductions from 1% to 22% and 1% to 18%, respectively, of their aggregate compensation, subject to certain limitations. The first 1% to 6% of participants' compensation contributed may be subject to a percentage matching contribution by the Company. For the years ended December 31, 1998 and 1997, the Company's matching contribution was 50% of the portion of the participants' contributions, which were not in excess of 6% of the participants' compensation. (c) PARTICIPANT ACCOUNTS. An account is maintained for each participant and is credited with participant contributions and investment earnings/losses thereon. Contributions may be invested in one or more of the investment funds available under the Plan at the direction of the participant. A separate account is maintained with respect to each participant's interest in the Company's matching contributions. Amounts in this account are apportioned and invested in the same manner as the participant's account. 4 (d) VESTING. Participants are 100% vested in their contributions plus actual investment earnings/losses thereon. Participants become vested in the Company's contribution according to the following schedule. Years of Service Vested Percentage ---------------- ----------------- Less than 1 0% 1 20% 2 40% 3 60% 4 80% 5 or more 100% A participant's interest in the Company's contributions is also vested upon termination either because of death or disability or after attaining his/her early retirement date or normal retirement age. Participants forfeit the portion of their interest which is not vested upon termination of employment. These forfeitures reduce the Company's matching contribution. (e) DISTRIBUTIONS. Participants may receive a distribution equal to the vested value of their account upon death, disability, retirement, or termination of either the participant's employment or the Plan. Distributions may only be made in the form of a lump-sum cash payment and/or AFLAC Incorporated common stock. The Plan permits in-service withdrawals for a participant who is 100% vested in the Company's contribution and has attained age 60. (f) LOANS Participants are allowed to borrow from their accounts. The minimum amount of any loan is $1,000. The maximum amount of any loan is such that when the amount of the loan is added to the outstanding balance of all other loans made to the participant from the Plan (and any other plans maintained by the employer or any related companies) the total does not exceed the lesser of: a. 50% of the participant's vested accrued benefit (as defined in the Plan); or b. $50,000, reduced by the amount, if any, of the highest balance of all outstanding loans to the participant during the one-year period ending on the day prior to the day on which the loan is made. (g) AGREEMENTS WITH TRUSTEE. The assets of the Plan are held in a trust maintained by Charles Schwab Trust Company. 5 (2) SUMMARY OF ACCOUNTING POLICIES (a) BASIS OF PRESENTATION. The accompanying statements of net assets and changes in net assets have been prepared on the accrual basis of accounting. (b) INVESTMENTS. Investments are stated at fair value based upon quotations obtained from national security exchanges or the value as determined by the managers of the money market and mutual funds. Securities transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains and losses on the sale of investments are calculated based on the difference between selling price and cost on an average cost basis. (3) FEDERAL INCOME TAXES The Internal Revenue Service has determined and informed the Company by a letter dated August 7, 1997, that the Plan and related trust are in accordance with applicable sections of the Internal Revenue Code. Participants in the Plan are not subject to Federal income taxes on their contributions, on amounts contributed by the employer, or on earnings or appreciation of investments held by the Plan until withdrawn by the participant or distributed to the participant's named beneficiary in the event of death. (4) PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right to terminate the Plan at any time subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their accounts. (5) INVESTMENT FUNDS The following tables show net assets available for plan benefits as of December 31, 1998 and 1997, and changes in net assets available for plan benefits for the years then ended by investment fund. The investments in the Dodge & Cox Balanced Fund, Dodge & Cox Stock Fund, Davis New York Venture Fund, Stein Roe Capital Opportunities Fund and AFLAC Incorporated Common Stock all exceeded five percent of the Plan's net assets available for plan benefits at December 31, 1998. 6 AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Net Assets Available for Plan Benefits, Investment Fund Information December 31, 1998
Schwab Columbia Dodge Dodge Davis Stein Roe Institutn'l Fixed Income & Cox & Cox New York Capital Advantage Securities Balanced Stock Venture Opportuni- Money Fund Fund Fund Fund Fund ties Fund ------------ ------------ ------------ ------------ ------------ ------------ Investments: Money market funds $ 2,024,987 $ - $ - $ - $ - $ - Mutual funds - 546,197 3,520,134 6,662,405 4,770,025 3,015,186 AFLAC Incorporated common stock - - - - - - Participant notes receivable - - - - - - ---------- ---------- ---------- ---------- ---------- ---------- Total investments 2,024,987 546,197 3,520,134 6,662,405 4,770,025 3,015,186 Receivables: Employer contributions 13,927 2,971 11,458 12,779 15,072 13,918 Accrued interest and dividends - - - - - - Loan repayments 3,089 854 4,461 5,489 4,959 4,149 Cash 37,828 11,140 43,421 49,985 55,656 55,561 Excess employee contributions payable (246) (94) (443) (592) (579) (568) Other liabilities 68 44 1,995 459 603 312 ---------- ---------- ---------- ---------- ---------- ---------- Net assets available for plan benefits $ 2,079,653 $ 561,112 $ 3,581,026 $ 6,730,525 $ 4,845,736 $ 3,088,558 ========== ========== ========== ========== ========== ========== (Continued on following page) 7
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Net Assets Available for Plan Benefits, Investment Fund Information (continued) December 31, 1998
Templeton AFLAC Participant Cash Foreign Incorporated Notes and Fund Common Stock Receivables Other Totals ------------ ------------ ------------ ------------ ------------ Investments: Money market funds $ - $ - $ - $ - $ 2,024,987 Mutual funds 629,365 - - - 19,143,312 AFLAC Incorporated common stock - 29,150,111 - - 29,150,111 Participant notes receivable - - 1,799,636 - 1,799,636 ---------- ---------- ---------- ---------- ---------- Total investments 629,365 29,150,111 1,799,636 - 52,118,046 Receivables: Employer contributions 2,248 53,941 - - 126,314 Accrued interest and dividends - - 14,269 - 14,269 Loan repayments 734 27,166 (50,901) - - Cash 8,217 213,510 - 116,026 591,344 Excess employee contributions payable (108) (1,997) - - (4,627) Other liabilities 1,624 28,547 2,222 (116,026) (80,152) ---------- ---------- ---------- ---------- ---------- Net assets available for plan benefits $ 642,080 $29,471,278 $ 1,765,226 $ - $52,765,194 ========== ========== ========== ========== ========== 8
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Net Assets Available for Plan Benefits, Investment Fund Information December 31, 1997
Schwab Columbia Dodge Dodge Davis Stein Roe Institutn'l Fixed Income & Cox & Cox New York Capital Advantage Securities Balanced Stock Venture Opportuni- Money Fund Fund Fund Fund Fund ties Fund ------------ ------------ ------------ ------------ ------------ ------------ Investments: Money market funds $ 1,781,116 $ - $ - $ - $ - $ - Mutual funds - 392,178 3,046,464 6,248,225 3,746,842 2,711,392 AFLAC Incorporated common stock - - - - - - Participant notes receivable - - - - - - ------------ ------------ ------------ ------------ ------------ ------------ Total investments 1,781,116 392,178 3,046,464 6,248,225 3,746,842 2,711,392 Receivables: Employer contributions 5,163 1,911 8,659 11,114 10,508 12,496 Cash 22,018 8,505 39,079 48,266 46,652 53,290 Excess employee contributions payable (714) (158) (1,221) (2,505) (1,502) (1,087) Other liabilities: Accrued transfers - - - - - - Other (9,222) 809 530 3,202 1,060 1,094 ------------ ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits $ 1,798,361 $ 403,245 $ 3,093,511 $ 6,308,302 $ 3,803,560 $ 2,777,185 ============ ============ ============ ============ ============ ============ (Continued on following page) 9
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Net Assets Available for Plan Benefits, Investment Fund Information (continued) December 31, 1997
Templeton AFLAC Participant Cash Foreign Incorporated Notes and Fund Common Stock Receivables Other Totals ------------ ------------ ------------ ------------ ------------ Investments: Money market funds $ - $ - $ - $ - $ 1,781,116 Mutual funds 520,109 - - - 16,665,210 AFLAC Incorporated common stock - 15,604,603 - - 15,604,603 Participant notes receivable - - 938,509 - 938,509 ------------ ------------ ------------ ------------ ------------ Total investments 520,109 15,604,603 938,509 - 34,989,438 Receivables: Employer contributions 2,075 37,623 - - 89,549 Cash 8,713 164,305 - 894,601 1,285,429 Excess employee contributions payable (208) (6,255) - - (13,650) Other liabilities: Accrued transfers - - - (880,549) (880,549) Other - 5,393 (13,796) (14,052) (24,982) ------------ ------------ ------------ ------------ ------------ Net assets available for plan benefits $ 530,689 $ 15,805,669 $ 924,713 $ - $ 35,445,235 ============ ============ ============ ============ ============ 10
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Changes in Net Assets Available for Plan Benefits, Investment Fund Information Year Ended December 31, 1998
Schwab Columbia Dodge Dodge Davis Instit'nl Fixed In- & Cox & Cox New York Advantage come Secu- Balanced Stock Venture Money Fnd rities Fnd Fund Fund Fund ---------- ---------- ---------- ---------- ---------- Contributions: Participant withholdings $ 206,101 $ 78,461 $ 371,219 $ 495,921 $ 485,798 Participant transfers from other plans 14,015 10,578 39,770 10,349 34,354 Employer matching 155,716 39,485 192,379 241,802 239,549 Interest and dividend income 105,121 39,579 311,672 615,643 106,997 Net realized gains on sale of investments - 2,777 35,396 81,216 126,028 Change in net unrealized appreciation (depreciation) on investments - (4,567) (121,876) (363,393) 361,660 Transfers 57,173 19,211 (156,346) (268,315) 7,672 Distributions to participants (210,867) (21,166) (167,223) (262,855) (261,644) Forfeitures (11,464) (833) (4,534) (3,277) (8,160) Participant notes receivable: New loans (62,238) (13,656) (97,670) (175,306) (94,039) Loan payments 27,735 7,998 84,728 50,438 43,961 ---------- ---------- ---------- ---------- ---------- Net change 281,292 157,867 487,515 422,223 1,042,176 Net assets available for plan benefits at beginning of year 1,798,361 403,245 3,093,511 6,308,302 3,803,560 ---------- ---------- ---------- ---------- ---------- Net assets available for plan benefits at end of year $ 2,079,653 $ 561,112 $ 3,581,026 $ 6,730,525 $ 4,845,736 ========== ========== ========== ========== ========== (Continued on following page) 11
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Changes in Net Assets Available for Plan Benefits, Investment Fund Information (continued) Year Ended December 31, 1998
Stein Roe Capital Templeton AFLAC Partici- Opportuni- Foreign Incorporated pant Notes ties Fund Fund Common Stock Receivable Totals ---------- ---------- ------------ ---------- ----------- Contributions: Participant withholdings $ 475,958 $ 90,635 $ 1,675,217 $ - $ 3,879,310 Participant transfers from other plans 20,267 1,666 86,500 - 217,499 Employer matching 238,026 44,899 900,087 - 2,051,943 Interest and dividend income 24 65,827 151,966 133,336 1,530,165 Net realized gains on sale of investments 48,675 (6,625) 1,521,557 - 1,809,024 Change in net unrealized appreciation (depreciation) on investments (69,772) (95,886) 10,365,950 - 10,072,116 Transfers (309,606) 23,825 626,386 - - Distributions to participants (54,640) (8,613) (1,129,767) (52,647) (2,169,422) Forfeitures (4,563) (697) (36,964) (184) (70,676) Participant notes receivable: New loans (68,655) (10,519) (796,139) 1,318,222 - Loan payments 35,659 6,879 300,816 (558,214) - ---------- ---------- ------------ ---------- ---------- Net change 311,373 111,391 13,665,609 840,513 17,319,959 Net assets available for plan benefits at beginning of year 2,777,185 530,689 15,805,669 924,713 35,445,235 ---------- ---------- ------------ ---------- ---------- Net assets available for plan benefits at end of year $ 3,088,558 $ 642,080 $ 29,471,278 $ 1,765,226 $52,765,194 ========== ========== ============ ========== ========== 12
AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Changes in Net Assets Available for Plan Benefits, Investment Fund Information Year Ended December 31, 1997
Schwab Columbia Dodge Dodge Davis Stein Roe Instit'nl Fixed In- & Cox & Cox New York Capital Templeton AFLAC Advantage come Secu- Balanced Stock Venture Opportuni- Foreign Incorporated Money Fnd rities Fnd Fund Fund Fund ties Fund Fund Common Stock ---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------ Contributions: Participant with- holdings $ 210,597 $ 68,373 $ 371,717 $ 535,040 $ 445,964 $ 483,448 $ 101,199 $ 1,366,698 Participant transfers from other plans 7,840 427 22,220 15,602 32,375 14,377 2,709 37,912 Employer matching 83,980 28,209 149,617 221,192 181,934 196,460 41,115 574,149 Interest and dividend income 115,212 26,019 282,041 520,241 176,872 204 54,242 167,225 Net realized gains on sale of investments - 2,208 211,598 650,251 228,765 5,237 15,065 3,480,731 Change in net unrealized appreciation (depre- ciation) on investments - 7,554 215,516 715,181 535,151 192,466 (38,707) (379,268) Transfer of Broadcast Division Plan assets (680,125) (136,198) (1,606,597) (2,938,368) (1,071,695) (564,851) (187,002) (3,172,665) Transfers 2,589,145 474,215 3,854,490 7,334,242 3,656,712 2,556,488 570,935 (217,361) Distributions to participants (397,311) (55,341) (318,224) (615,413) (297,525) (54,403) (11,801) (1,404,096) Forfeitures (71,668) (64) (3,506) (9,189) (4,422) (4,865) (345) (14,645) Participant notes receivable: New loans (67,364) (15,719) (107,068) (139,425) (92,856) (62,256) (18,506) (553,978) Loan payments 8,055 3,562 21,707 18,948 12,285 14,880 1,785 75,865 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- Net change 1,798,361 403,245 3,093,511 6,308,302 3,803,560 2,777,185 530,689 (39,433) Net assets available for plan benefits at beginning of year - - - - - - - 15,845,102 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------- Net assets available for plan benefits at end of year $ 1,798,361 $ 403,245 $ 3,093,511 $ 6,308,302 $ 3,803,560 $ 2,777,185 $ 530,689 $15,805,669 ========== ========== ========== ========== ========== ========== ========== =========== (Continued on following page)
13 AFLAC INCORPORATED 401(k) PLAN Notes to Financial Statements Changes in Net Assets Available for Plan Benefits, Investment Fund Information (continued) Year Ended December 31, 1997
Partici- GIC pant Notes Income American Washington Fidelity Receivable Fund 4 Balanced Mutual Magellan Totals ---------- ---------- ---------- ---------- ---------- ----------- Contributions: Participant with- holdings $ - $ - $ - $ - $ - $ 3,583,036 Participant transfers from other plans - - - - - 133,462 Employer matching - 59,875 - - - 1,536,531 Interest and dividend income 43,328 5,655 - - - 1,391,039 Net realized gains on sale of investments - - 578,509 2,560,826 590,291 8,323,481 Change in net unrealized appreciation (depre- ciation) on investments - - (452,725) (2,144,200) (426,133) (1,775,165) Transfer of Broadcast Division Plan assets - - - - - (10,357,501) Transfers - (3,259,397) (4,128,191) (9,288,174) (4,143,104) - Distributions to participants (18,633) 8,600 10,766 21,574 16,755 (3,115,052) Forfeitures (67) - - - - (108,771) Participant notes receivable: New loans 1,057,172 - - - - - Loan payments (157,087) - - - - - ---------- ---------- ---------- ---------- ---------- ----------- Net change 924,713 (3,185,267) (3,991,641) (8,849,974) (3,962,191) (388,940) Net assets available for plan benefits at beginning of year - 3,185,267 3,991,641 8,849,974 3,962,191 35,834,175 ---------- ---------- ---------- ---------- ---------- ----------- Net assets available for plan benefits at end of year $ 924,713 $ - $ - $ - $ - $ 35,445,235 ========== ========== ========== ========== ========== =========== 14
(6) SUBSEQUENT EVENTS Effective January 1, 1999, the Plan was amended to change the name of the Plan to the AFLAC Incorporated 401(k) Savings and Profit Sharing Plan. In addition, the Plan was amended to provide additional deferral options for employee profit sharing bonuses and to lower the retirement age from 60 years to 59 1/2 years. These changes are not expected to alter the qualified status of the Plan. (7) YEAR 2000 (unaudited) The Company has received Year 2000 Disclosures from the plan administrator and trustee. They have indicated that they are currently in the remediation and testing phase of their Year 2000 readiness plans with testing to continue through the third quarter of 1999. In addition, they are in the process of developing and refining contingency plans for their business systems and processes. The Company will continue to monitor their progress and is attempting to set up data exchange tests for later in 1999. Due to the uncertainty of potential year 2000 problems which are outside the scope of the Company's control, such as public utilities, financial institutions, governmental functions, and various other vendors on which the Company relies, the Company is unable to reasonably predict the possible exposure and impact of year 2000 failure on the plan. 15 Schedule 1 AFLAC INCORPORATED 401(k) PLAN Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1998 Description Shares/Units Cost Current Value - --------------- ------------ -------- ------------- Money Market Funds - ------------------ Schwab Institutional Advantage Money Fund 2,024,987 $ 2,024,987 $ 2,024,987 ---------- ---------- Mutual Funds - ------------ Columbia Fixed Income Securities Fund 40,700 543,210 546,197 Davis New York Venture Fund 190,471 3,873,213 4,770,025 Dodge & Cox Balanced Fund 53,976 3,426,494 3,520,134 Dodge & Cox Stock Fund 73,467 6,310,617 6,662,405 Stein Roe Capital Opportunities Fund 102,672 2,892,492 3,015,186 Templeton Foreign Fund 75,014 763,959 629,365 ---------- ---------- Total Mutual Funds 17,809,985 19,143,312 ---------- ---------- Common Stock - ------------ AFLAC Incorporated* 664,390 11,266,152 29,150,111 Participant notes receivable 1,799,636 1,799,636 1,799,636 ---------- ---------- Total Investments $32,900,760 $52,118,046 ========== ========== * Indicates party-in-interest per Erisa Section 406. 16 Schedule 2 AFLAC INCORPORATED 401(k) PLAN Item 27d - Schedule of Reportable Transactions Year Ended December 31, 1998
Current Value Purchase Selling of Asset on Net Description Price Price Cost Transaction Date Gain/(Loss) --------------- ---------- ---------- ---------- ---------------- ----------- Purchases: AFLAC Incorporated Common Stock* $ 4,468,549 $ - $ 4,468,549 $ 4,468,549 $ - Schwab Institutional Advantage Money Fund 1,106,496 - 1,106,496 1,106,496 - Columbia Fixed Income Securities Fund 345,508 - 345,508 345,508 - Dodge & Cox Balanced Fund 1,152,602 - 1,152,602 1,152,602 - Dodge & Cox Stock Fund 1,625,221 - 1,625,221 1,625,221 - Davis New York Venture Fund 1,412,961 - 1,412,961 1,412,961 - Stein Roe Capital Opportunities Fund 897,273 - 897,273 897,273 - Templeton Foreign Fund 318,892 - 318,892 318,892 - Sales: AFLAC Incorporated Common Stock* - 3,019,025 1,497,468 3,019,025 1,521,557 Schwab Institutional Advantage Money Fund - 862,625 862,625 862,625 - Columbia Fixed Income Securities Fund - 189,699 186,922 189,699 2,777 Dodge & Cox Balanced Fund - 592,452 557,056 592,452 35,396 Dodge & Cox Stock Fund - 928,864 847,648 928,864 81,216 Davis New York Venture Fund - 877,467 751,439 877,467 126,028 Stein Roe Capital Opportunities Fund - 572,382 523,707 572,382 48,675 Templeton Foreign Fund - 107,124 113,749 107,124 (6,625) * Indicates party-in-interest per Erisa Section 406. 17
EX-23 2 KPMG CONSENT EXHIBIT 23 INDEPENDENT AUDITORS' CONSENT The Administrative Committee AFLAC Incorporated 401(k) Plan: We consent to incorporation by reference in Registration Statement No. 33-41552 on Form S-8 of AFLAC Incorporated of our report dated May 28, 1999, relating to the statements of net assets available for plan benefits of the AFLAC Incorporated 401(k) Plan as of December 31, 1998 and 1997, and the related statements of changes in net assets available for plan benefits for the years then ended, and all related schedules, which report appears in the December 31, 1998 annual report on Form 11-K of AFLAC Incorporated. KPMG LLP Atlanta, Georgia June 23, 1999 18 -----END PRIVACY-ENHANCED MESSAGE-----