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NOTES PAYABLE | 9 Months Ended
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Sep. 30, 2016
Debt Disclosure [Abstract] |
NOTES PAYABLE | NOTES PAYABLE A summary of notes payable follows:
(In millions) | September 30, 2016 |  | December 31, 2015
2.65% senior notes due February 2017 |  | $ | 650 |  |  |  |  | $ | 651 |  |
2.40% senior notes due March 2020 |  | 547 |  |  |  |  | 546 |  |
4.00% senior notes due February 2022 |  | 348 |  |  |  |  | 348 |  |
3.625% senior notes due June 2023 |  | 696 |  |  |  |  | 696 |  |
3.625% senior notes due November 2024 |  | 745 |  |  |  |  | 744 |  |
3.25% senior notes due March 2025 |  | 445 |  |  |  |  | 445 |  |
2.875% senior notes due October 2026 |  | 298 |  |  |  |  | 0 |  |
6.90% senior notes due December 2039 |  | 394 |  |  |  |  | 393 |  |
6.45% senior notes due August 2040 |  | 445 |  |  |  |  | 445 |  |
4.00% senior notes due October 2046 |  | 393 |  |  |  |  | 0 |  |
5.50% subordinated debentures due September 2052 |  | 486 |  |  |  |  | 486 |  |
Yen-denominated Uridashi notes: |  |  |  |  |  |  |
2.26% notes paid September 2016 (principal amount 8 billion yen) |  | 0 |  |  |  |  | 66 |  |
Yen-denominated Samurai notes: |  |  |  |  |  |  |
1.84% notes paid July 2016 (principal amount 15.8 billion yen) |  | 0 |  |  |  |  | 131 |  |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen) |  | 49 |  |  |  |  | 0 |  |
Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen) |  | 247 |  |  |  |  | 0 |  |
Capitalized lease obligations payable through 2023 |  | 22 |  |  |  |  | 20 |  |
Total notes payable |  | $ | 5,765 |  |  |  |  | $ | 4,971 |  |
Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs. 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 September 2016, the Parent company issued two series of senior notes totaling $700 million through a U.S. public offering. The first series, which totaled $300 million, bears interest at a fixed rate of 2.875% per annum, payable semi-annually and has a 10-year maturity. The second series, which totaled $400 million, bears interest at a fixed rate of 4.00% per annum, payable semi-annually, and has a 30-year maturity. In September 2016, the Parent Company entered into two series of senior unsecured term loan facilities totaling 30.0 billion yen. The first series, which totaled 5.0 billion yen, bears an interest rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a five-year maturity. The applicable margin ranges between .20% and .60%, depending on the Parent Company's debt ratings as of the date of determination. The second series, which totaled 25.0 billion yen, bears an interest rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a seven-year maturity. The applicable margin ranges between .35% and .75%, depending on the Parent Company's debt ratings as of the date of determination. In September 2016, we paid off 8.0 billion yen of 2.26% fixed rate Uridashi notes upon their maturity and in July 2016, we paid off 15.8 billion yen of 1.84% fixed rate Samurai notes upon their maturity. In March 2016, the Parent Company entered into a three-year senior unsecured revolving credit facility agreement with a group of financial institutions that provides for borrowings of up to 100.0 billion yen on a revolving basis. Borrowings bear interest at a rate per annum equal to the Tokyo interbank market rate (TIBOR) plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company is required to pay a facility fee on the commitments ranging between .30% and .50%, also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under this credit agreement may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company, and will expire on the earlier of (a) March 31, 2019, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. The credit facility requires compliance with certain financial covenants on a quarterly basis. As of September 30, 2016, we did not have any borrowings outstanding under our 100.0 billion yen revolving credit agreement. The Parent Company and Aflac have a 364-day uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $100 million. Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. Borrowings under the financing agreement will mature no later than three months after the last drawdown date of October 15, 2016. As of September 30, 2016, we did not have any borrowings outstanding under our $100 million credit agreement. The Parent Company and Aflac have a five-year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 55.0 billion yen or the equivalent of yen in U.S. dollars on a revolving basis. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the London Interbank Offered Rate (LIBOR) for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company and Aflac are required to pay a facility fee on the commitments ranging between .085% and .225%, also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under the amended and restated credit facility may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company and Aflac. The amended and restated credit facility requires compliance with certain financial covenants on a quarterly basis and will expire on the earlier of (a) September 18, 2020, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. As of September 30, 2016, we did not have any borrowings outstanding under our 55.0 billion yen revolving credit agreement. The Parent Company and Aflac have an uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $50 million. Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. As of September 30, 2016, we did not have any borrowings outstanding under our $50 million credit agreement. We were in compliance with all of the covenants of our notes payable and lines of credit at September 30, 2016. No events of default or defaults occurred during the nine-month period ended September 30, 2016. For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in our annual report to shareholders for the year ended December 31, 2015.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References No definition available. + Details
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