BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Net Funded Status

Information with respect to our benefit plans’ assets and obligations as of December 31 was as follows:

	Pension Benefits												Other Postretirement Benefits
	Japan						U.S.
(In millions)	2011			2010			2011			2010			2011			2010
Projected benefit obligation:
Benefit obligation, beginning of year	$	297		$	238		$	454		$	402		$	67		$	53
Service cost		17			14			14			13			4			3
Interest cost		12			12			28			26			3			3
Actuarial (gain) loss		0			9			42			26			10			9
Benefits and expenses paid		(10	)		(7	)		(13	)		(13	)		(1	)		(1	)
Effect of foreign exchange rate changes		13			31			0			0			0			0
Benefit obligation, end of year		329			297			525			454			83			67
Plan assets:
Fair value of plan assets, beginning of year		147			114			209			169			0			0
Actual return on plan assets		(2	)		1			0			25			0			0
Employer contributions		29			23			28			28			1			1
Benefits and expenses paid		(10	)		(7	)		(13	)		(13	)		(1	)		(1	)
Effect of foreign exchange rate changes		7			16			0			0			0			0
Fair value of plan assets, end of year		171			147			224			209			0			0
Funded status of the plans(1)	$	(158	)	$	(150	)	$	(301	)	$	(245	)	$	(83	)	$	(67	)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	77		$	71		$	151		$	100		$	30		$	21
Prior service (credit) cost		(4	)		(5	)		1			1			0			0
Transition obligation		1			2			0			0			0			0
Total included in accumulated other comprehensive income	$	74		$	68		$	152		$	101		$	30		$	21
Accumulated benefit obligation	$	295		$	266		$	448		$	390			N/A	(2)		N/A	(2)

⁽¹⁾  Recognized in other liabilities in the consolidated balance sheets

⁽²⁾  Not applicable

Schedule of Assumptions Used

	Pension Benefits																		Other Postretirement Benefits
	Japan									U.S.
	2011			2010			2009			2011			2010			2009			2011			2010			2009
Weighted-average actuarial assumptions:
Discount rate - net periodic benefit cost		2.25	%		2.50	%		2.50	%		5.50	%		5.75	%		6.25	%		5.50	%		5.75	%		6.25	%
Discount rate - benefit obligations		2.25			2.25			2.50			4.75			5.50			5.75			4.75			5.50			5.75
Expected long-term return on plan assets		2.50			2.50			2.50			7.50			7.50			8.00			N/A	(1)		N/A	(1)		N/A	(1)
Rate of compensation increase		N/A	(1)		N/A	(1)		N/A	(1)		4.00			4.00			4.00			N/A	(1)		N/A	(1)		N/A	(1)
Health care cost trend rates		N/A	(1)		N/A	(1)		N/A	(1)		N/A	(1)		N/A	(1)		N/A	(1)		7.30	(2)		7.50	(2)		6.70	(2)

⁽¹⁾  Not applicable

⁽²⁾  In the years 2011, 2010 and 2009, the health care cost trend rates were expected to trend down to 4.2%, 3.9% and 4.5%, respectively, in 75 years

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2011:

(In millions)
One percentage point increase
Increase in total service and interest costs	$	2
Increase in postretirement benefit obligation		12
One percentage point decrease
Decrease in total service and interest costs	$	1
Decrease in postretirement benefit obligation		10

Schedule of Net Benefit Costs

Net periodic (benefit) cost, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components:

	Pension Benefits																		Other Postretirement Benefits
	Japan									U.S.
(In millions)		2011			2010			2009			2011			2010			2009			2011		2010		2009
Service cost	$	17		$	14		$	13		$	14		$	13		$	11		$	4	$	3	$	3
Interest cost		12			12			11			28			26			27			3		3		3
Expected return on plan assets		(4	)		(4	)		(3	)		(14	)		(12	)		(12	)		0		0		0
Amortization of net actuarial loss		3			3			3			6			5			4			1		1		1
Net periodic benefit cost	$	28		$	25		$	24		$	34		$	32		$	30		$	8	$	7	$	7

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:

	Pension Benefits																		Other Postretirement Benefits
	Japan									U.S.
(In millions)		2011			2010			2009			2011			2010			2009			2011			2010			2009
Net actuarial loss (gain)	$	5		$	11		$	(5	)	$	57		$	13		$	(6	)	$	10		$	8		$	(2	)
Amortization of net actuarial loss		(3	)		(3	)		(3	)		(6	)		(5	)		(4	)		(1	)		(1	)		(1	)
Total	$	2		$	8		$	(8	)	$	51		$	8		$	(10	)	$	9		$	7		$	(3	)

Schedule of Expected Benefit Payments

The following table provides expected benefit payments, which reflect expected future service, as appropriate.

	Pension Benefits				Other Postretirement Benefits
(In millions)	Japan		U.S.
2012	$	11	$	17	$	2
2013		10		18		2
2014		11		19		2
2015		12		20		3
2016		11		27		3
2017-2021		68		157		22

Schedule of Allocation of Plan Assets

Asset allocation targets as of December 31, 2011 were as follows:

	Japan Pension			U.S. Pension
Domestic equities		7	%		43	%
International equities		19			22
Fixed income securities		59			35
Other		15			0
Total		100	%		100	%

Plan Assets

Fair Value, Assets Measured on Recurring Basis

The following table presents the fair value of Aflac Japan’s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy.

(In millions)	2011		2010
Japan pension plan assets:
Equities:
Japanese equity securities	$	11	$	11
International equity securities		34		31
Fixed income securities:
Japanese bonds		60		51
International bonds		42		34
Insurance contracts		24		20
Total	$	171	$	147

The following table presents the fair value of Aflac U.S.’s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.

(In millions)	2011		2010
U.S. pension plan assets:
Mutual funds:
Large cap equity funds	$	77	$	75
Mid cap equity funds		13		13
Real estate equity funds		7		6
International equity funds		45		48
Fixed income bond funds		79		64
Aflac Incorporated common stock		3		3
Total	$	224	$	209