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SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended
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Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract] |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Earnings
| Years ended December 31,
(In millions) | 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |  |  |  |  |  |  |
Management and service fees from subsidiaries(1) |  | $ | 151 |  |  |  |  | $ | 190 |  |  |  |  | $ | 297 |  |
Net investment income |  | 77 |  |  |  |  | 69 |  |  |  |  | 30 |  |
Interest from subsidiaries(1) |  | 4 |  |  |  |  | 4 |  |  |  |  | 5 |  |
Realized investment gains (losses) |  | 98 |  |  |  |  | (16 | ) |  |  |  | (1 | ) |
Total revenues |  | 330 |  |  |  |  | 247 |  |  |  |  | 331 |  |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | 200 |  |  |  |  | 188 |  |  |  |  | 197 |  |
Other operating expenses(2) |  | 221 |  |  |  |  | 225 |  |  |  |  | 180 |  |
Total operating expenses |  | 421 |  |  |  |  | 413 |  |  |  |  | 377 |  |
Earnings before income taxes and equity in earnings of subsidiaries |  | (91 | ) |  |  |  | (166 | ) |  |  |  | (46 | ) |
Income tax expense (benefit) |  | (22 | ) |  |  |  | (12 | ) |  |  |  | (23 | ) |
Earnings before equity in earnings of subsidiaries |  | (69 | ) |  |  |  | (154 | ) |  |  |  | (23 | ) |
Equity in earnings of subsidiaries(1) |  | 3,373 |  |  |  |  | 3,074 |  |  |  |  | 4,627 |  |
Net earnings |  | $ | 3,304 |  |  |  |  | $ | 2,920 |  |  |  |  | $ | 4,604 |  |
(1)Eliminated in consolidation (2)Includes expense of $13 in 2017 for the early extinguishment of debt See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Comprehensive Income (Loss)
| Years ended December 31,
(In millions) | 2019 |  | 2018 |  | 2017
Net earnings |  | $ | 3,304 |  |  |  |  | $ | 2,920 |  |  |  |  | $ | 4,604 |  |
Other comprehensive income (loss) before income taxes: |  |  |  |  |  |  |  |  |  |  |
Unrealized foreign currency translation gains (losses) during period |  | 252 |  |  |  |  | 232 |  |  |  |  | 286 |  |
Unrealized gains (losses) on fixed maturity securities during period |  | 5,852 |  |  |  |  | (3,109 | ) |  |  |  | 1,733 |  |
Unrealized gains (losses) on derivatives during period |  | (12 | ) |  |  |  | 2 |  |  |  |  | 1 |  |
Pension liability adjustment during period |  | (85 | ) |  |  |  | (25 | ) |  |  |  | 9 |  |
Total other comprehensive income (loss) before income taxes |  | 6,007 |  |  |  |  | (2,900 | ) |  |  |  | 2,029 |  |
Income tax expense (benefit) related to items of other comprehensive income (loss) |  | 1,543 |  |  |  |  | (797 | ) |  |  |  | 631 |  |
Other comprehensive income (loss), net of income taxes |  | 4,464 |  |  |  |  | (2,103 | ) |  |  |  | 1,398 |  |
Total comprehensive income (loss) |  | $ | 7,768 |  |  |  |  | $ | 817 |  |  |  |  | $ | 6,002 |  |
See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Balance Sheets
| December 31,
(In millions, except for share and per-share amounts) | 2019 |  | 2018
Assets: |  |  |  |  |  |  |
Investments and cash: |  |  |  |  |  |  |
Fixed maturity securities available for sale, at fair value (amortized cost $1,506 in 2019 and $1,209 in 2018) |  | $ | 1,567 |  |  |  |  | $ | 1,222 |  |
Investments in subsidiaries(1) |  | 30,744 |  |  |  |  | 26,230 |  |
Other investments |  | 36 |  |  |  |  | 21 |  |
Cash and cash equivalents |  | 2,508 |  |  |  |  | 1,767 |  |
Total investments and cash |  | 34,855 |  |  |  |  | 29,240 |  |
Due from subsidiaries(1) |  | 170 |  |  |  |  | 98 |  |
Income taxes receivable |  | 337 |  |  |  |  | 176 |  |
Other assets |  | 405 |  |  |  |  | 390 |  |
Total assets |  | $ | 35,767 |  |  |  |  | $ | 29,904 |  |
Liabilities and shareholders' equity: |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |
Employee benefit plans |  | $ | 323 |  |  |  |  | $ | 310 |  |
Notes payable |  | 6,136 |  |  |  |  | 5,765 |  |
Other liabilities |  | 349 |  |  |  |  | 367 |  |
Total liabilities |  | 6,808 |  |  |  |  | 6,442 |  |
Shareholders' equity: |  |  |  |  |  |  |
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2019 and 2018; issued 1,349,309 shares in 2019 and 1,347,540 shares in 2018 |  | 135 |  |  |  |  | 135 |  |
Additional paid-in capital |  | 2,313 |  |  |  |  | 2,177 |  |
Retained earnings |  | 34,291 |  |  |  |  | 31,788 |  |
Accumulated other comprehensive income (loss): |  |  |  |  |  |  |
Unrealized foreign currency translation gains (losses) |  | (1,623 | ) |  |  |  | (1,847 | ) |
Unrealized gains (losses) on fixed maturity securities |  | 8,548 |  |  |  |  | 4,234 |  |
Unrealized gains (losses) on derivatives |  | (33 | ) |  |  |  | (24 | ) |
Pension liability adjustment |  | (277 | ) |  |  |  | (212 | ) |
Treasury stock, at average cost |  | (14,395 | ) |  |  |  | (12,789 | ) |
Total shareholders' equity |  | 28,959 |  |  |  |  | 23,462 |  |
Total liabilities and shareholders' equity |  | $ | 35,767 |  |  |  |  | $ | 29,904 |  |
(1)Eliminated in consolidation See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. CONDENSED FINANCIAL INFORMATION OF REGISTRANT Aflac Incorporated (Parent Only) Condensed Statements of Cash Flows
| Years ended December 31,
(In millions) | 2019 |  | 2018 |  | 2017
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |
Net earnings |  | $ | 3,304 |  |  |  |  | $ | 2,920 |  |  |  |  | $ | 4,604 |  |
Adjustments to reconcile net earnings to net cash provided from operating activities: |  |  |  |  |  |  |  |  |  |  |
Equity in earnings of subsidiaries(1) |  | (3,373 | ) |  |  |  | (3,074 | ) |  |  |  | (4,627 | ) |
Cash dividends received from subsidiaries |  | 3,466 |  |  |  |  | 1,820 |  |  |  |  | 2,001 |  |
Other, net |  | (203 | ) |  |  |  | 99 |  |  |  |  | (46 | ) |
Net cash provided (used) by operating activities |  | 3,194 |  |  |  |  | 1,765 |  |  |  |  | 1,932 |  |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities sold |  | 340 |  |  |  |  | 207 |  |  |  |  | 263 |  |
Fixed maturity securities purchased |  | (639 | ) |  |  |  | (254 | ) |  |  |  | (329 | ) |
Other investments sold (purchased) |  | (16 | ) |  |  |  | 31 |  |  |  |  | (47 | ) |
Settlement of derivatives |  | 22 |  |  |  |  | (2 | ) |  |  |  | 223 |  |
Additional capitalization of subsidiaries(1) |  | (214 | ) |  |  |  | (62 | ) |  |  |  | (69 | ) |
Other, net |  | 87 |  |  |  |  | (107 | ) |  |  |  | (218 | ) |
Net cash provided (used) by investing activities |  | (420 | ) |  |  |  | (187 | ) |  |  |  | (177 | ) |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |
Purchases of treasury stock |  | (1,627 | ) |  |  |  | (1,301 | ) |  |  |  | (1,351 | ) |
Proceeds from borrowings |  | 347 |  |  |  |  | 1,020 |  |  |  |  | 1,040 |  |
Principal payments under debt obligations |  | 0 |  |  |  |  | (550 | ) |  |  |  | (1,161 | ) |
Dividends paid to shareholders |  | (771 | ) |  |  |  | (793 | ) |  |  |  | (661 | ) |
Treasury stock reissued |  | 49 |  |  |  |  | 58 |  |  |  |  | 33 |  |
Proceeds from exercise of stock options |  | 29 |  |  |  |  | 34 |  |  |  |  | 38 |  |
Net change in amount due to/from subsidiaries(1) |  | (58 | ) |  |  |  | (4 | ) |  |  |  | (5 | ) |
Other, net |  | (2 | ) |  |  |  | 0 |  |  |  |  | 0 |  |
Net cash provided (used) by financing activities |  | (2,033 | ) |  |  |  | (1,536 | ) |  |  |  | (2,067 | ) |
Net change in cash and cash equivalents |  | 741 |  |  |  |  | 42 |  |  |  |  | (312 | ) |
Cash and cash equivalents, beginning of period |  | 1,767 |  |  |  |  | 1,725 |  |  |  |  | 2,037 |  |
Cash and cash equivalents, end of period |  | $ | 2,508 |  |  |  |  | $ | 1,767 |  |  |  |  | $ | 1,725 |  |
(1)Eliminated in consolidation See the accompanying Notes to Condensed Financial Statements. See the accompanying Report of Independent Registered Public Accounting Firm. (A) Notes Payable A summary of notes payable as of December 31 follows:
(In millions) | 2019 |  | 2018
4.00% senior notes due February 2022 (1) |  | $ | 348 |  |  |  |  | $ | 348 |  |
3.625% senior notes due June 2023 |  | 698 |  |  |  |  | 698 |  |
3.625% senior notes due November 2024 |  | 747 |  |  |  |  | 746 |  |
3.25% senior notes due March 2025 |  | 448 |  |  |  |  | 447 |  |
2.875% senior notes due October 2026 |  | 298 |  |  |  |  | 297 |  |
6.90% senior notes due December 2039 |  | 220 |  |  |  |  | 220 |  |
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 |  | 541 |  |  |  |  | 540 |  |
Yen-denominated senior notes and subordinated debentures: |  |  |  |  |  |  |
.932% senior notes due January 2027 (principal amount ¥60.0 billion) |  | 545 |  |  |  |  | 538 |  |
.500% senior notes due December 2029 (principal amount ¥12.6 billion) |  | 114 |  |  |  |  | 0 |  |
1.159% senior notes due October 2030 (principal amount ¥29.3 billion) |  | 266 |  |  |  |  | 262 |  |
.843% senior notes due December 2031 (principal amount ¥9.3 billion) |  | 84 |  |  |  |  | 0 |  |
1.488% senior notes due October 2033 (principal amount ¥15.2 billion) |  | 138 |  |  |  |  | 136 |  |
.934% senior notes due December 2034 (principal amount ¥9.8 billion) |  | 88 |  |  |  |  | 0 |  |
1.750% senior notes due October 2038 (principal amount ¥8.9 billion) |  | 81 |  |  |  |  | 79 |  |
1.122% senior notes due December 2039 (principal amount ¥6.3 billion) |  | 57 |  |  |  |  | 0 |  |
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) |  | 543 |  |  |  |  | 536 |  |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due September 2026 (.42% in 2019 and .32 in 2018, principal amount ¥5.0 billion) |  | 45 |  |  |  |  | 45 |  |
Variable interest rate loan due September 2029 (.57% in 2019 and .47 in 2018, principal amount ¥25.0 billion) |  | 227 |  |  |  |  | 225 |  |
Total notes payable |  | $ | 6,136 |  |  |  |  | $ | 5,765 |  |
(1) Redeemed in January 2020 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 December 2019, the Parent Company issued four series of senior notes totaling ¥38.0 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥12.6 billion, bears interest at a fixed rate of .500% per annum, payable semi-annually, and will mature in December 2029. The second series, which totaled ¥9.3 billion, bears interest at a fixed rate of .843% per annum, payable semi-annually, and will mature in December 2031. The third series, which totaled ¥9.8 billion, bears interest at a fixed rate of .934% per annum, payable semi-annually, and will mature in December 2034. The fourth series, which totaled ¥6.3 billion, bears interest at a fixed rate of 1.122% per annum, payable semi-annually, and will mature in December 2039. These notes may only be redeemed before maturity, 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 September 2019, the Parent Company renewed a ¥30.0 billion senior term loan facility. The first tranche of the facility, which totaled ¥5.0 billion, bears interest at a rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and will mature in September 2026. The applicable margin ranges between .30% and .70%, depending on the Parent Company's debt ratings as of the date of determination. The second tranche, which totaled ¥25.0 billion, bears interest at a rate per annum equal to the TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and will mature in September 2029. The applicable margin ranges between .45% and 1.00%, depending on the Parent Company's debt ratings as of the date of determination. The aggregate contractual maturities of notes payable during each of the years after December 31, 2019, are as follows:
(In millions) |  |
2020 | $ | 0 |  |
2021 | 0 |  |
2022 | 350 |  |
2023 | 700 |  |
2024 | 750 |  |
Thereafter | 4,386 |  |
Total | $ | 6,186 |  |
For further information regarding notes payable, see Note 9 of the Notes to the Consolidated Financial Statements. (B) Derivatives At December 31, 2019, the Parent Company's outstanding freestanding derivative contracts were swaps, foreign currency forwards and options. The swaps are associated with its notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with the Parent Company's senior notes due in February 2022, June 2023, November 2024 and March 2025. The foreign currency forwards and options are designated as derivative hedges of the foreign currency exposure of the Company's net investment in Aflac Japan. The Parent Company does not use derivative financial instruments for trading purposes, nor does it engage in leveraged derivative transactions. For further information regarding these derivatives, see Notes 1, 4 and 9 of the Notes to the Consolidated Financial Statements. (C) Income Taxes The Parent Company and its eligible U.S. subsidiaries file a consolidated U.S. federal income tax return. Income tax liabilities or benefits are recorded by each principal subsidiary based upon separate return calculations, and any difference between the consolidated provision and the aggregate amounts recorded by the subsidiaries is reflected in the Parent Company financial statements. For further information on income taxes, see Note 10 of the Notes to the Consolidated Financial Statements. (D) Dividend Restrictions See Note 13 of the Notes to the Consolidated Financial Statements for information regarding dividend restrictions. (E) Supplemental Disclosures of Cash Flow Information
(In millions) | 2019 |  | 2018 |  | 2017
Interest paid |  | $ | 189 |  |  |  |  | $ | 179 |  |  |  |  | $ | 195 |  |
Noncash financing activities: |  |  |  |  |  |  |  |  |  |  |
Treasury stock issued for shareholder dividend reinvestment |  | 30 |  |  |  |  | 8 |  |  |  |  | 29 |  |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
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