XML 38 R26.htm IDEA: XBRL DOCUMENT
v3.22.2.2

BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2022
Segment Reporting [Abstract] |
Reconciliation of Revenue from Segments to Consolidated | Information regarding operations by reportable segment and Corporate and other, follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
(In millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |
Revenues: |  |  |  |  |  |  |  |
Aflac Japan: |  |  |  |  |  |  |  |
Net earned premiums | $ | 2,241 |  |  | $ | 2,934 |  |  | $ | 7,384 |  |  | $ | 9,045 |  |
Adjusted net investment income (1),(2) | 663 |  |  | 763 |  |  | 2,066 |  |  | 2,260 |  |
Other income | 9 |  |  | 10 |  |  | 26 |  |  | 32 |  |
Total adjusted revenue Aflac Japan | 2,913 |  |  | 3,707 |  |  | 9,476 |  |  | 11,337 |  |
Aflac U.S.: |  |  |  |  |  |  |  |
Net earned premiums | 1,375 |  |  | 1,393 |  |  | 4,182 |  |  | 4,223 |  |
Adjusted net investment income (3) | 185 |  |  | 191 |  |  | 563 |  |  | 557 |  |
Other income | 38 |  |  | 32 |  |  | 120 |  |  | 90 |  |
Total adjusted revenue Aflac U.S. | 1,598 |  |  | 1,616 |  |  | 4,865 |  |  | 4,870 |  |
Corporate and other (4),(5) | 73 |  |  | 72 |  |  | 189 |  |  | 205 |  |
Total adjusted revenues | 4,584 |  |  | 5,395 |  |  | 14,530 |  |  | 16,412 |  |
Net investment gains (losses) (1),(2),(3),(4) | 236 |  |  | (158) |  |  | 962 |  |  | 258 |  |
Total revenues | $ | 4,820 |  |  | $ | 5,237 |  |  | $ | 15,492 |  |  | $ | 16,670 |  |
(1) Amortized hedge costs of $28 and $20 for the three-month periods and $84 and $55 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(25) and $(7) for the three-month periods and $(37) and $(24) for the nine-month periods ended September 30, 2022, and 2021, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $(1) and $1 for the three-month periods and $1 and $1 for the nine-month periods ended September 30, 2022, and 2021, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (4) Amortized hedge income of $19 and $13 for the three-month periods and $44 and $45 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase to net investment income when analyzing operations. (5) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month periods and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments.
Reconciliation of Adjusted Profit (Loss) from Segments to Consolidated |
| Three Months Ended September 30, |  | Nine Months Ended September 30, |
(In millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |
Pretax earnings: |  |  |  |  |  |  |  |
Aflac Japan (1),(2) | $ | 630 |  |  | $ | 976 |  |  | $ | 2,351 |  |  | $ | 2,867 |  |
Aflac U.S. (3) | 309 |  |  | 358 |  |  | 984 |  |  | 1,217 |  |
Corporate and other (4),(5),(6) | (59) |  |  | (41) |  |  | (179) |  |  | (144) |  |
Pretax adjusted earnings (7) | 880 |  |  | 1,293 |  |  | 3,156 |  |  | 3,940 |  |
Net investment gains (losses) (1),(2),(3),(4),(5) | 222 |  |  | (172) |  |  | 923 |  |  | 216 |  |
Other income (loss) | 1 |  |  | (8) |  |  | 1 |  |  | (66) |  |
Total earnings before income taxes | $ | 1,103 |  |  | $ | 1,113 |  |  | $ | 4,080 |  |  | $ | 4,090 |  |
Income taxes applicable to pretax adjusted earnings | $ | 156 |  |  | $ | 262 |  |  | $ | 565 |  |  | $ | 771 |  |
Effect of foreign currency translation on after-tax adjusted earnings | (53) |  |  | (14) |  |  | (147) |  |  | (8) |  |
(1) Amortized hedge costs of $28 and $20 for the three-month periods and $84 and $55 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies have been reclassified from net investment gains (losses) and reported as a deduction from net investment income when analyzing operations. (2) Net interest cash flows from derivatives associated with certain investment strategies of $(25) and $(7) for the three-month periods and $(37) and $(24) for the nine-month periods ended September 30, 2022, and 2021, respectively, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (3) Net interest cash flows from derivatives associated with certain investment strategies of $(1) and $1 for the three-month periods and $1 and $1 for the nine-month periods ended September 30, 2022, and 2021, have been reclassified from net investment gains (losses) and included in adjusted earnings as a component of net investment income when analyzing operations. (4) Amortized hedge income of $19 and $13 for the three-month periods and $44 and $45 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to certain foreign currency exposure management strategies has been reclassified from net investment gains (losses) and reported as an increase in net investment income when analyzing operations. (5) A gain of $13 and $14 for the three-month periods and $38 and $41 for the nine-month periods ended September 30, 2022, and 2021, respectively, related to the interest rate component of the change in fair value of foreign currency swaps on notes payable has been reclassified from net investment gains (losses) and included in adjusted earnings when analyzing operations. (6) The change in value of federal historic rehabilitation and solar investments in partnerships of $19 and $5 for the three-month periods and $61 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $19 and $10 for the three-month periods and $63 and $35 for the nine-month periods ended September 30, 2022, and 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings. See Note 3 of the Notes to the Consolidated Financial Statements for additional information on these investments. (7) Includes $45 and $40 for the three-month periods and $127 and $130 for the nine-month periods ended September 30, 2022, and 2021, respectively, of interest expense on debt.
Reconciliation of Assets from Segment to Consolidated | Assets were as follows:
(In millions) | September 30, 2022 |  | December 31, 2021
Assets: |  |  |  |  |  |  |
Aflac Japan |  | $ | 101,311 |  |  |  |  | $ | 128,536 |  |
Aflac U.S. |  | 20,212 |  |  |  |  | 23,106 |  |
Corporate and other |  | 6,577 |  |  |  |  | 5,900 |  |
Total assets |  | $ | 128,100 |  |  |  |  | $ | 157,542 |  |

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfOperatingProfitLossFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total revenues from reportable segments to the entity's consolidated revenues. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
Name: | us-gaap_ReconciliationOfRevenueFromSegmentsToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration