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NOTES PAYABLE AND LEASE OBLIGATIONS | 9 Months Ended
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Sep. 30, 2021
Debt Disclosure [Abstract] |
NOTES PAYABLE AND LEASE OBLIGATIONS | NOTES PAYABLE AND LEASE OBLIGATIONSA summary of notes payable and lease obligations follows:
(In millions) | September 30, 2021 |  | December 31, 2020
3.625% senior notes paid May 2021 |  | $ | 0 |  |  |  |  | $ | 698 |  |
3.625% senior notes due November 2024 |  | 748 |  |  |  |  | 747 |  |
3.25% senior notes due March 2025 |  | 448 |  |  |  |  | 448 |  |
1.125% senior sustainability notes due March 2026 |  | 397 |  |  |  |  | 0 |  |
2.875% senior notes due October 2026 |  | 298 |  |  |  |  | 298 |  |
3.60% senior notes due April 2030 |  | 991 |  |  |  |  | 990 |  |
6.90% senior notes due December 2039 |  | 221 |  |  |  |  | 221 |  |
6.45% senior notes due August 2040 |  | 255 |  |  |  |  | 254 |  |
4.00% senior notes due October 2046 |  | 394 |  |  |  |  | 394 |  |
4.750% senior notes due January 2049 |  | 541 |  |  |  |  | 541 |  |
Yen-denominated senior notes and subordinated debentures: |  |  |  |  |  |  |
.300% senior notes due September 2025 (principal amount ¥12.4 billion) |  | 110 |  |  |  |  | 119 |  |
.932% senior notes due January 2027 (principal amount ¥60.0 billion) |  | 534 |  |  |  |  | 578 |  |
.500% senior notes due December 2029 (principal amount ¥12.6 billion) |  | 112 |  |  |  |  | 121 |  |
.550% senior notes due March 2030 (principal amount ¥13.3 billion) |  | 118 |  |  |  |  | 127 |  |
1.159% senior notes due October 2030 (principal amount ¥29.3 billion) |  | 261 |  |  |  |  | 282 |  |
.633% senior notes due April 2031 (principal amount ¥30.0 billion) |  | 266 |  |  |  |  | 0 |  |
.843% senior notes due December 2031 (principal amount ¥9.3 billion) |  | 83 |  |  |  |  | 90 |  |
.750% senior notes due March 2032 (principal amount ¥20.7 billion) |  | 183 |  |  |  |  | 198 |  |
.844% senior notes due April 2033 (principal amount ¥12.0 billion) |  | 107 |  |  |  |  | 0 |  |
1.488% senior notes due October 2033 (principal amount ¥15.2 billion) |  | 135 |  |  |  |  | 146 |  |
.934% senior notes due December 2034 (principal amount ¥9.8 billion) |  | 87 |  |  |  |  | 94 |  |
.830% senior notes due March 2035 (principal amount ¥10.6 billion) |  | 94 |  |  |  |  | 101 |  |
1.039% senior notes due April 2036 (principal amount ¥10.0 billion) |  | 88 |  |  |  |  | 0 |  |
1.750% senior notes due October 2038 (principal amount ¥8.9 billion) |  | 79 |  |  |  |  | 85 |  |
1.122% senior notes due December 2039 (principal amount ¥6.3 billion) |  | 56 |  |  |  |  | 61 |  |
1.264% senior notes due April 2041 (principal amount ¥10.0 billion) |  | 89 |  |  |  |  | 0 |  |
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) |  | 532 |  |  |  |  | 575 |  |
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) |  | 267 |  |  |  |  | 289 |  |
1.560% senior notes due April 2051 (principal amount ¥20.0 billion) |  | 177 |  |  |  |  | 0 |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due September 2026 (.41% in 2021 and .43% in 2020, principal amount ¥5.0 billion) |  | 44 |  |  |  |  | 48 |  |
Variable interest rate loan due September 2029 (.56% in 2021 and .58% in 2020, principal amount ¥25.0 billion) |  | 222 |  |  |  |  | 240 |  |
Finance lease obligations payable through 2027 |  | 13 |  |  |  |  | 11 |  |
Operating lease obligations payable through 2049 |  | 116 |  |  |  |  | 143 |  |
Total notes payable and lease obligations |  | $ | 8,066 |  |  |  |  | $ | 7,899 |  |
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 April 2021, the Parent Company issued five series of senior notes totaling ¥82.0 billion through a public debt offering under its then existing U.S. shelf registration statement. The first series, which totaled ¥30.0 billion, bears interest at a fixed rate of .633% per annum, payable semi-annually, and will mature in April 2031. The second series, which totaled ¥12.0 billion, bears interest at a fixed rate of .844% per annum, payable semi-annually, and will mature in April 2033. The third series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.039% per annum, payable semi-annually, and will mature in April 2036. The fourth series, which totaled ¥10.0 billion, bears interest at a fixed rate of 1.264% per annum, payable semi-annually, and will mature in April 2041. The fifth series, which totaled ¥20.0 billion, bears interest at a fixed rate of 1.560% per annum, payable semi-annually, and will mature in April 2051. The notes are redeemable at the Parent Company’s option (i) at any time, 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 or (ii) on or after the date that is six months prior to the stated maturity date of the series, in whole or in part, at a redemption price equal to the aggregate principal amount to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.
In May 2021, the Parent Company used a portion of the net proceeds from the April 2021 issuance of its various series of senior notes to redeem $700 million of the Parent Company's 3.625% senior notes due June 2023. In March 2021, the Parent Company issued $400 million of senior sustainability notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 1.125% per annum, payable semi-annually, and will mature in March 2026. The Company intends, but is not contractually committed, to allocate an amount at least equivalent to the net proceeds from this issuance exclusively to existing or future investments in, or financing of, assets, businesses or projects that meet the eligibility criteria of the Company's sustainability bond framework described in the offering documentation in connection with such notes. These notes are redeemable at the Parent Company's option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the aggregate principal amount of the notes to be redeemed or (ii) the amount equal to the sum of the present values of the remaining scheduled payments for principal of and interest on the notes to be redeemed, not including any portion of the payments of interest accrued as of such redemption date, discounted to such redemption date on a semiannual basis at the yield to maturity for a U.S. Treasury security with a maturity comparable to the remaining term of the notes, plus 10 basis points, plus in each case, accrued and unpaid interest on the principal amount of the notes to be redeemed to, but excluding, such redemption date. A summary of the Company's lines of credit as of September 30, 2021 follows:
Borrower(s) | Type | Term | Expiration Date | Capacity | Amount Outstanding | Interest Rate on Borrowed Amount | Maturity Period | Commitment Fee | Business Purpose
Aflac Incorporated and Aflac | uncommitted bilateral | 364 days | December 17, 2021 | $100 million | $0 million | The rate quoted by the bank and agreed upon at the time of borrowing | Up to 3 months | None | General corporate purposes
Aflac Incorporated | unsecured revolving | 5 years | March 29, 2024, or the date commitments are terminated pursuant to an event of default | ¥100.0 billion | ¥0.0 billion | A rate per annum equal to (a) Tokyo interbank market rate (TIBOR) plus, the alternative applicable TIBOR margin during the availability period from the closing date to the commitment termination date or (b) the TIBOR rate offered by the agent to major banks in yen for the applicable period plus, the applicable alternative TIBOR margin during the term out period | No later than March 29, 2024 | .30% to .50%, depending on the Parent Company's debt ratings as of the date of determination | General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac | unsecured revolving | 5 years | November 18, 2024, or the date commitments are terminated pursuant to an event of default | $1.0 billion | $0.0 billion | A rate per annum equal to, at the Company's option, either, (a) London Interbank Offered Rate (LIBOR) for U.S. dollar denominated borrowings or TIBOR for Japanese yen denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate, or (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin | No later than November 18, 2024 | .085% to .225%, depending on the Parent Company's debt ratings as of the date of determination | General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac | uncommitted bilateral | None specified | None specified | $50 million | $0 million | A rate per annum equal to, at the Company's option, either (a) a rate determined by reference to LIBOR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (a) the lender's U.S. dollar short-term commercial loan rate, (b) the federal funds rate plus 1/2 of 1% and (c) one-month LIBOR plus 1%. LIBOR is subject to replacement with Secured Overnight Financing Rate (SOFR) under certain circumstances | Up to 3 months | None | General corporate purposes
Aflac(1) | uncommitted revolving | 364 days | November 30, 2021 | $250 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | 3 months | None | General corporate purposes
Aflac Incorporated(1) | uncommitted revolving | 364 days | April 4, 2022 | ¥50.0 billion | ¥0.0 billion | Three-month TIBOR plus 70 basis points per annum | 3 months | None | General corporate purposes
Aflac Incorporated(1) | uncommitted revolving | 364 days | November 26, 2021 | ¥50.0 billion | ¥0.0 billion | Three-month TIBOR plus 70 basis points per annum | 3 months | None | General corporate purposes
Aflac New York(1) | uncommitted revolving | 364 days | April 8, 2022 | $25 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | 3 months | None | General corporate purposes
CAIC(1) | uncommitted revolving | 364 days | March 21, 2022 | $15 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | 3 months | None | General corporate purposes
(1) Intercompany credit agreement (continued)
Borrower(s) | Type | Term | Expiration Date | Capacity | Amount Outstanding | Interest Rate on Borrowed Amount | Maturity Period | Commitment Fee | Business Purpose
Tier One Insurance Company(1) | uncommitted revolving | 364 days | March 21, 2022 | $0.3 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | 3 months | None | General corporate purposes
AGV Management Services Japan K.K.(1) | uncommitted revolving | 364 days | May 2, 2022 | ¥500 million | ¥350 million | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | No later than May 2, 2022 | None | General corporate purposes
Hatch Healthcare K.K.(1) | uncommitted revolving | 364 days | January 3, 2022 | ¥900 million | ¥0 million | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | No later than January 3, 2022 | None | General corporate purposes
Hatch Insight K.K.(1) | uncommitted revolving | 364 days | January 3, 2022 | ¥600 million | ¥0 million | A rate per annum equal to the short-term prime lending rates of banks appearing on the website for the Bank of Japan on the first day of the applicable period | No later than January 3, 2022 | None | General corporate purposes
Aflac GI Holdings LLC(1) | uncommitted revolving | 364 days | July 18, 2022 | $30 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | No later than July 18, 2022 | None | General corporate purposes
(1) Intercompany credit agreement The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2021. No events of default or defaults occurred during the nine-month period ended September 30, 2021. For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2020 Annual Report.

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