A U D I T E D    F I N A N C I A L    S T A T E M E N T S

John Hancock Life Insurance Company (U.S.A.) Separate Account M

December 31, 2021

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John Hancock Life Insurance Company (U.S.A.)

Separate Account M

Audited Financial Statements

December 31, 2021

Contents

Report of Independent Registered Public Accounting Firm	3
Statements of Assets and Liabilities	5
Statements of Operations and Changes in Contract Owners’ Equity	7
Notes to Financial Statements	10

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of John Hancock Life Insurance Company (U.S.A.) and Contract Owners of

John Hancock Life Insurance Company (U.S.A.) Separate Account M

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the Appendix that comprise John Hancock Life Insurance Company (U.S.A.) Separate Account M (the “Separate Account”) as of December 31, 2021, and the related statements of operations and changes in contract owners’ equity for the two years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2021, and the results of its operations and changes in contract owners’ equity for each of the two years then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on each of the subaccounts’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the fund companies, or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of the Separate Account since 1983.

Boston, Massachusetts

March 30, 2022

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Appendix

Subaccounts comprising John Hancock Life Insurance

Company (U.S.A.) Separate Account M

American Asset Allocation Trust Series I	Investment Quality Bond Trust Series I
American Growth-Income Trust Series I	Money Market Trust Series I
Disciplined Value International Trust Series I	Real Estate Securities Trust Series I
International Equity Index Series I	Small Cap Opportunities Trust Series I

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2021

	American Asset   Allocation Trust   Series I		American Growth-   Income Trust Series   I		Disciplined Value   International Trust   Series I		International Equity   Index Series I		Investment Quality   Bond Trust Series I		Money Market Trust   Series I
Total Assets
Investments at fair value	$	2,715,483	$	5,203,260	$	480,939	$	827,477	$	888,159	$	280,134
Units outstanding		79,678		105,167		30,536		50,418		30,534		15,513
Unit value	$	34.08	$	49.48	$	15.75	$	16.41	$	29.09	$	18.06
Shares		207,131		280,499		33,445		40,863		77,231		280,134
Cost	$	2,701,993	$	4,660,585	$	419,178	$	714,312	$	887,371	$	280,134

See accompanying notes.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2021

	Real Estate   Securities Trust   Series I		Small Cap   Opportunities Trust   Series I
Total Assets
Investments at fair value	$	5,360,087	$	6,780,984
Units outstanding		20,302		355,807
Unit value	$	264.02	$	19.06
Shares		195,125		202,056
Cost	$	2,968,221	$	5,681,023

See accompanying notes.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	American Asset Allocation Trust Series I				American Growth-Income Trust Series I				Disciplined Value International Trust Series I
	2021		2020		2021		2020		2021		2020
Income:
Dividend distributions received	$	42,064	$	32,268	$	36,775	$	56,477	$	12,112	$	10,377
Expenses:
Mortality and expense risk and administrative charges		(26,818)		(25,140)		(49,396)		(38,076)		(5,026)		(4,932)
Net investment income (loss)		15,246		7,128		(12,621)		18,401		7,086		5,445
Realized gains (losses) on investments:
Capital gain distributions received		145,166		291,371		248,064		553,483		-		-
Net realized gain (loss)		(26,360)		(50,575)		(183,221)		(181,878)		18,331		(5,673)
Realized gains (losses)		118,806		240,796		64,843		371,605		18,331		(5,673)
Unrealized appreciation (depreciation) during the period		205,354		(37,603)		933,246		108,804		36,460		6,673
Net increase (decrease) in net assets from operations		339,406		210,321		985,468		498,810		61,877		6,445
Changes from principal transactions:
Purchase payments		-		-		-		-		-		-
Transfers between sub-accounts and the company		5,604		(20,299)		(132,903)		630,200		(96,630)		4,346
Withdrawals		(187,737)		(499,703)		(265,304)		(300,780)		(36,981)		(39,253)
Annual contract fee		(450)		(570)		(392)		(531)		(58)		(59)
Net increase (decrease) in net assets from principal transactions		(182,583)		(520,572)		(398,599)		328,889		(133,669)		(34,966)
Total increase (decrease) in net assets		156,823		(310,251)		586,869		827,699		(71,792)		(28,521)
Net assets at beginning of period		2,558,660		2,868,911		4,616,391		3,788,692		552,731		581,252
Net assets at end of period	$	2,715,483	$	2,558,660	$	5,203,260	$	4,616,391	$	480,939	$	552,731
	2021		2020		2021		2020		2021		2020
Units, beginning of period		85,262		106,023		114,187		104,941		39,281		42,234
Units issued		380		216		291		19,715		612		574
Units redeemed		(5,964)		(20,977)		(9,311)		(10,469)		(9,357)		(3,527)
Units, end of period		79,678		85,262		105,167		114,187		30,536		39,281

See accompanying notes.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	International Equity Index Series I				Investment Quality Bond Trust Series I				Money Market Trust Series I
	2021		2020		2021		2020		2021		2020
Income:
Dividend distributions received	$	21,356	$	12,173	$	18,634	$	21,413	$	10	$	1,224
Expenses:
Mortality and expense risk and administrative charges		(7,843)		(4,834)		(9,443)		(9,770)		(2,876)		(3,585)
Net investment income (loss)		13,513		7,339		9,191		11,643		(2,866)		(2,361)
Realized gains (losses) on investments:
Capital gain distributions received		9,946		4,786		20,230		506		-		-
Net realized gain (loss)		20,453		1,316		819		1,031		-		-
Realized gains (losses)		30,399		6,102		21,049		1,537		-		-
Unrealized appreciation (depreciation) during the period		(2,730)		35,781		(53,849)		64,415		-		(1)
Net increase (decrease) in net assets from operations		41,182		49,222		(23,609)		77,595		(2,866)		(2,362)
Changes from principal transactions:
Purchase payments		-		-		-		80,988		-		1,756
Transfers between sub-accounts and the company		282,451		(1,576)		(47,717)		(5,410)		(7,755)		(83,433)
Withdrawals		(60,796)		(1,397)		(87,418)		(69,003)		(6,635)		(16,554)
Annual contract fee		(116)		(133)		(52)		(81)		(62)		(63)
Net increase (decrease) in net assets from principal transactions		221,539		(3,106)		(135,187)		6,494		(14,452)		(98,294)
Total increase (decrease) in net assets		262,721		46,116		(158,796)		84,089		(17,318)		(100,656)
Net assets at beginning of period		564,756		518,640		1,046,955		962,866		297,452		398,108
Net assets at end of period	$	827,477	$	564,756	$	888,159	$	1,046,955	$	280,134	$	297,452
	2021		2020		2021		2020		2021		2020
Units, beginning of period		36,655		36,873		35,194		35,047		16,305		21,649
Units issued		17,477		-		1,293		3,123		25		112
Units redeemed		(3,714)		(218)		(5,953)		(2,976)		(817)		(5,456)
Units, end of period		50,418		36,655		30,534		35,194		15,513		16,305

See accompanying notes.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Real Estate Securities Trust Series I				Small Cap Opportunities Trust Series I
	2021		2020		2021		2020
Income:
Dividend distributions received	$	69,073	$	84,121	$	31,999	$	33,982
Expenses:
Mortality and expense risk and administrative charges		(47,885)		(45,590)		(67,396)		(47,616)
Net investment income (loss)		21,188		38,531		(35,397)		(13,634)
Realized gains (losses) on investments:
Capital gain distributions received		-		500,731		138,008		280,917
Net realized gain (loss)		568,419		536,099		43,194		(114,105)
Realized gains (losses)		568,419		1,036,830		181,202		166,812
Unrealized appreciation (depreciation) during the period		1,202,669		(1,544,796)		1,540,426		300,567
Net increase (decrease) in net assets from operations		1,792,276		(469,435)		1,686,231		453,745
Changes from principal transactions:
Purchase payments		-		-		-		-
Transfers between sub-accounts and the company		(78,272)		(683,427)		(42,429)		(8,748)
Withdrawals		(655,303)		(249,364)		(715,637)		(333,149)
Annual contract fee		(350)		(495)		(940)		(1,197)
Net increase (decrease) in net assets from principal transactions		(733,925)		(933,286)		(759,006)		(343,094)
Total increase (decrease) in net assets		1,058,351		(1,402,721)		927,225		110,651
Net assets at beginning of period		4,301,736		5,704,457		5,853,759		5,743,108
Net assets at end of period	$	5,360,087	$	4,301,736	$	6,780,984	$	5,853,759
	2021		2020		2021		2020
Units, beginning of period		23,678		29,332		398,669		425,494
Units issued		-		84		438		1,919
Units redeemed		(3,376)		(5,738)		(43,300)		(28,744)
Units, end of period		20,302		23,678		355,807		398,669

See accompanying notes.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS

December 31, 2021

1. Organization

John Hancock Life Insurance Company (U.S.A.) Separate Account M (the “Account”) is a separate account established by John Hancock Life Insurance Company (U.S.A.) (the “Company”). The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended (the “Act”) and is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment Companies. The Account consists of 8 active sub-accounts which are exclusively invested in a corresponding portfolio of the John Hancock Variable Insurance Trust (the “Trust”). The Trust is registered under the Act as an open-ended management investment company, commonly known as a mutual fund, which does not transact with the general public. The Account is a funding vehicle for the allocation of net premiums under variable annuity contracts (the “Contracts”) issued by the Company.

The Company is a stocklife insurance company organized originally under the laws of the State of Maine in 1955 and later in 1992, the Company changed its state of domicile to the State of Michigan. The Company is an indirect, wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian based publicly traded life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial.

The Company is required to maintain assets in the Account with a total fair value of at least equal to the reserves and other liabilities relating to the variable benefits under all Contracts participating in the Account. These assets may not be charged with liabilities which arise from any other business the Company conducts. However, all obligations under the Contracts are general corporate obligations of the Company.

In addition to the Account, certain contract owners may also allocate funds to the fixed account, which is part of the Company’s general account. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and the Company’s general account has not been registered as an investment company under the Investment Company Act of 1940. Net interfund transfers include transfers between separate and general accounts.

Each sub-account holds shares of a particular series (“Portfolio”) of a registered investment company. Sub-accounts that invest in Portfolios of the Trust may offer a class of units to fund Contracts issued by the Company. This class, Series I, represents an interest in the same Trust Portfolio, but in a different class of that Portfolio.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

2. Significant Accounting Policies

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates.

Valuation of Investments

Investments made in the Portfolios of the Trust are valued at fair value based on the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on a first-in, first-out basis.

Amounts Receivable/Payable

Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset-based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios’ shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2021.    

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

3. Federal Income Taxes

The Account does not file separate tax returns. The taxable income of the Account is consolidated with that of the Company within the consolidated federal tax return. Any tax contingencies arising from the taxable income generated by the Account is the responsibility of the Company and the Company holds any and all tax contingencies on its financial statements. The Company’s consolidated federal tax return for the years 2014 and 2015 are currently under examination by the Internal Revenue Service. The years from 2015 are also open for examination by the internal revenue service. The Account is not a party to the consolidated tax sharing agreement thus no amount of income taxes or tax contingencies are passed through to the Account. The legal form of the Account is not taxable in any state or foreign jurisdictions.

The income taxes topic of the FASB ASC establishes a minimum threshold for financial statement recognition of the benefit of positions taken, or expected to be taken, in filing tax returns (including whether the Account is taxable in certain jurisdictions). The topic requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as tax expense or benefit.

The Account complies with the provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2021, the Account did not have a liability for any uncertain tax positions. The Account recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statements of Operations and Changes in Contract Owners’ Equity.

4. Transactions with Affiliates

The Company has an administrative services agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. John Hancock Investment Management Services, LLC (“JHIMS”), a Delaware limited liability company controlled by MFC, serves as investment adviser for the Trust.

John Hancock Distributors, LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principle underwriter of the Contracts pursuant to a distribution agreement with the Company. Contracts are sold by registered representatives of either John Hancock Distributors, LLC or other broker-dealers having distribution agreements with John Hancock Distributors, LLC.

Certain officers of the Account are officers and directors of JHUSA or the Trust.

Contract charges, as described in Note 9, are paid to the Company.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

5. Fair Value Measurements

ASC 820 “Fair Value Measurements and Disclosures” provides a single definition of fair value for accounting purposes, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820 defines fair value as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit value. An exit value is not a forced liquidation or distressed sale.

Following ASC 820 guidance, the Account has categorized its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Account’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

• Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Account has the ability to access at the measurement date.

• Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

• Level 3 – Fair value measurements using significant non market observable inputs.

All of the Account’s sub-accounts’ investments in a Portfolio of the Trust were valued at the reported net asset value of the Portfolio and categorized as Level 1 as of December 31, 2021. The following table presents the Account’s assets that are measured at fair value on a recurring basis by fair value hierarchy level under ASC 820, as of December 31, 2021:

	Level 1	Level 2	Level 3	Total
Mutual Funds
Affiliated	$                22,536,523	-	-	22,536,523
Total	$                22,536,523	-	-	22,536,523

Assets owned by the Account are primarily open-ended mutual fund investments issued by the Trust. These are classified within Level 1, as fair values of the underlying funds are based upon reported net asset values (“NAV”), which represent the values at which each sub-account can redeem its investments.    

Changes in valuation techniques may result in transfer in or out of an assigned level within the disclosure hierarchy. Transfers between investment levels may occur as the availability of a price source or data used in an investment’s valuation changes. Transfers between investment levels are recognized at the beginning of the reporting period. There have been no transfers between any level of fair value measurements during the period ended December 31, 2021.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

6. Purchases and Sales of Investments

The cost of purchases including reinvestment of dividend distributions and proceeds from the sales of investments in the Portfolios of the Trust during 2021 were as follows:

Sub-Account	Purchases		Sales
American Asset Allocation Trust Series I	$	198,824	$	220,995
American Growth-Income Trust Series I		297,817		460,974
Disciplined Value International Trust Series I		21,789		148,373
International Equity Index Series I		313,454		68,456
Investment Quality Bond Trust Series I		75,915		181,681
Money Market Trust Series I		354		17,673
Real Estate Securities Trust Series I		69,073		781,810
Small Cap Opportunities Trust Series I		176,409		832,805

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

7. Unit Values

A summary of unit values and units outstanding for variable annuity contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
American Asset Allocation Trust Series I(*)	2021	80	$ 34.08 to $ 34.08	$2,715	1.00 % to 1.00 %	1.57 %	13.57 % to 13.57 %
	2020	85	30.01 to 30.01	2,559	1.00 to 1.00	1.29	10.90 to 10.90
	2019	106	27.06 to 27.06	2,869	1.00 to 1.00	1.38	19.57 to 19.57
	2018	112	22.63 to 22.63	2,529	1.00 to 1.00	1.51	-5.86 to -5.86
	2017	131	24.04 to 24.04	3,147	1.00 to 1.00	1.22	14.64 to 14.64
American Growth-Income Trust Series I(*)	2021	105	49.48 to 49.48	5,203	1.00 to 1.00	0.74	22.38 to 22.38
	2020	114	40.43 to 40.43	4,616	1.00 to 1.00	1.49	11.98 to 11.98
	2019	105	36.10 to 36.10	3,789	1.00 to 1.00	1.53	24.45 to 24.45
	2018	111	29.01 to 29.01	3,224	1.00 to 1.00	1.37	-3.16 to -3.16
	2017	121	29.96 to 29.96	3,629	1.00 to 1.00	1.05	20.82 to 20.82
Disciplined Value International Trust Series I(*)	2021	31	15.75 to 15.75	481	1.00 to 1.00	2.42	11.94 to 11.94
	2020	39	14.07 to 14.07	553	1.01 to 1.01	2.12	2.25 to 2.25
	2019	42	13.76 to 13.76	581	1.00 to 1.00	2.80	11.21 to 11.21
	2018	44	12.38 to 12.38	543	1.00 to 1.00	2.30	-15.88 to -15.88
	2017	54	14.71 to 14.71	799	1.00 to 1.00	1.48	15.98 to 15.98
International Equity Index Series I(*)	2021	50	16.41 to 16.41	827	1.00 to 1.00	2.71	6.52 to 6.52
	2020	37	15.41 to 15.41	565	1.01 to 1.01	2.53	9.54 to 9.54
	2019	37	14.07 to 14.07	519	1.00 to 1.00	2.38	20.16 to 20.16
	2018	37	11.71 to 11.71	434	1.00 to 1.00	2.33	-14.96 to -14.96
	2017	38	13.76 to 13.76	527	1.00 to 1.00	2.17	26.05 to 26.05
Investment Quality Bond Trust Series I(*)	2021	31	29.04 to 29.04	888	1.00 to 1.00	1.98	-2.24 to -2.24
	2020	35	29.71 to 29.71	1,047	1.00 to 1.00	2.20	8.28 to 8.28
	2019	35	27.44 to 27.44	963	1.00 to 1.00	2.49	8.28 to 8.28
	2018	38	25.34 to 25.34	967	1.00 to 1.00	2.56	-1.81 to -1.81
	2017	47	25.81 to 25.81	1,202	1.00 to 1.00	2.56	3.57 to 3.57
Money Market Trust Series I(*)	2021	16	18.14 to 18.14	280	1.00 to 1.00	0.00	-1.00 to -1.00
	2020	16	18.32 to 18.32	297	1.01 to 1.01	0.34	-0.69 to -0.69
	2019	22	18.45 to 18.45	398	1.00 to 1.00	1.92	0.93 to 0.93
	2018	21	18.28 to 18.28	388	1.00 to 1.00	1.50	0.52 to 0.52
	2017	28	18.18 to 18.18	503	1.00 to 1.00	0.60	-0.40 to -0.40
Real Estate Securities Trust Series I(*)	2021	20	264.05 to 264.05	5,360	1.00 to 1.00	1.44	45.33 to 45.33
	2020	24	181.70 to 181.70	4,302	1.01 to 1.01	1.85	-6.58 to -6.58
	2019	29	194.50 to 194.50	5,704	1.00 to 1.00	2.11	28.12 to 28.12
	2018	31	151.82 to 151.82	4,671	1.00 to 1.00	1.67	-4.43 to -4.43
	2017	35	158.85 to 158.85	5,482	1.00 to 1.00	0.52	5.18 to 5.18
Small Cap Opportunities Trust Series I(*)	2021	356	19.05 to 19.05	6,781	1.00 to 1.00	0.47	29.79 to 29.79
	2020	399	14.68 to 14.68	5,854	1.00 to 1.00	0.72	8.78 to 8.78
	2019	425	13.50 to 13.50	5,743	1.00 to 1.00	0.40	24.29 to 24.29
	2018	448	10.86 to 10.86	4,863	1.00 to 1.00	0.41	-14.71 to -14.71
	2017	496	12.73 to 12.73	6,312	1.00 to 1.00	0.41	9.97 to 9.97

(*) Sub-account that invests in affiliated Trust.

(a) As the unit fair value is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

(b) These ratios represent the annualized contract expenses of the separate account, consisting primarily of the items known as “Revenue from underlying fund (12b-1, ST A, Other)” and “Revenue from Sub-account” (formerly referred to as the administrative maintenance charges and sales and service fees (AMC and SSF)). The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to unitholder accounts through the redemption of units and expenses of the underlying fund are excluded.

(c) These ratios represent the distributions from net investment income received by the sub-account from the underlying Portfolio, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policyholder accounts either through the reductions in the unit values or the redemptions of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying Portfolio in which the sub-accounts invest.

(d) These ratios, represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options indicated in footnote 1 with a date notation, if any, denote the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. For closed sub-accounts, the total return is calculated from the beginning of the reporting period to the date the sub-account closed. As

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

7. Unit Values (continued):

the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT M

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2021

8. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Internal Revenue Code (“the Code”). Under the provisions of Section 817(h) of the Code, a Contract will not be treated as a variable annuity contract for federal tax purposes for any period for which the investments of the Account on which the contract is based are not adequately diversified. The Code provides that the “adequately diversified” requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirement set forth in regulations issued by the Secretary of the Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and the Account will continue to meet such requirements.    

9. Contract Charges

The expense ratio represents the contract expenses of the Account for the period indicated and includes only those expenses that are charged through a reduction of the unit value. Included in this category are mortality and expense charges. The fees are 1.00% of net assets of the sub-account.

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