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NOTES PAYABLE AND LEASE OBLIGATIONS | 9 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
NOTES PAYABLE AND LEASE OBLIGATIONS | NOTES PAYABLE AND LEASE OBLIGATIONS A summary of notes payable and lease obligations follows:
(In millions) | September 30, 2022 |  | December 31, 2021
3.625% senior notes paid September 2022 |  | $ | 0 |  |  |  |  | $ | 748 |  |
3.25% senior notes due March 2025 (1) |  | 448 |  |  |  |  | 448 |  |
1.125% senior sustainability notes due March 2026 |  | 398 |  |  |  |  | 397 |  |
2.875% senior notes due October 2026 |  | 298 |  |  |  |  | 298 |  |
3.60% senior notes due April 2030 |  | 992 |  |  |  |  | 991 |  |
6.90% senior notes due December 2039 |  | 221 |  |  |  |  | 221 |  |
6.45% senior notes due August 2040 |  | 254 |  |  |  |  | 255 |  |
4.00% senior notes due October 2046 |  | 394 |  |  |  |  | 394 |  |
4.750% senior notes due January 2049 |  | 542 |  |  |  |  | 541 |  |
Yen-denominated senior notes and subordinated debentures: |  |  |  |  |  |  |
.300% senior notes due September 2025 (principal amount ¥12.4 billion) |  | 84 |  |  |  |  | 107 |  |
.932% senior notes due January 2027 (principal amount ¥60.0 billion) |  | 413 |  |  |  |  | 520 |  |
1.075% senior notes due September 2029 (principal amount ¥33.4 billion) |  | 227 |  |  |  |  | 0 |  |
.500% senior notes due December 2029 (principal amount ¥12.6 billion) |  | 87 |  |  |  |  | 109 |  |
.550% senior notes due March 2030 (principal amount ¥13.3 billion) |  | 90 |  |  |  |  | 115 |  |
1.159% senior notes due October 2030 (principal amount ¥29.3 billion) |  | 201 |  |  |  |  | 254 |  |
.633% senior notes due April 2031 (principal amount ¥30.0 billion) |  | 203 |  |  |  |  | 259 |  |
.843% senior notes due December 2031 (principal amount ¥9.3 billion) |  | 64 |  |  |  |  | 81 |  |
.750% senior notes due March 2032 (principal amount ¥20.7 billion) |  | 139 |  |  |  |  | 179 |  |
1.320% senior notes due December 2032 (principal amount ¥21.1 billion) |  | 143 |  |  |  |  | 0 |  |
.844% senior notes due April 2033 (principal amount ¥12.0 billion) |  | 81 |  |  |  |  | 104 |  |
1.488% senior notes due October 2033 (principal amount ¥15.2 billion) |  | 104 |  |  |  |  | 131 |  |
.934% senior notes due December 2034 (principal amount ¥9.8 billion) |  | 67 |  |  |  |  | 85 |  |
.830% senior notes due March 2035 (principal amount ¥10.6 billion) |  | 71 |  |  |  |  | 91 |  |
1.039% senior notes due April 2036 (principal amount ¥10.0 billion) |  | 67 |  |  |  |  | 86 |  |
1.594% senior notes due September 2037 (principal amount ¥6.5 billion) |  | 44 |  |  |  |  | 0 |  |
1.750% senior notes due October 2038 (principal amount ¥8.9 billion) |  | 61 |  |  |  |  | 77 |  |
1.122% senior notes due December 2039 (principal amount ¥6.3 billion) |  | 43 |  |  |  |  | 54 |  |
1.264% senior notes due April 2041 (principal amount ¥10.0 billion) |  | 67 |  |  |  |  | 86 |  |
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) |  | 410 |  |  |  |  | 517 |  |
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) |  | 207 |  |  |  |  | 260 |  |
1.560% senior notes due April 2051 (principal amount ¥20.0 billion) |  | 135 |  |  |  |  | 172 |
2.144% senior notes due September 2052 (principal amount ¥12.0 billion) |  | 81 |  |  |  |  | 0 |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due August 2027 (.34% in 2022, principal amount ¥11.7 billion) |  | 83 |  |  |  |  | 0 |  |
Variable interest rate loan due August 2029 (.44% in 2022 and .41% in 2021, principal amount ¥25.3 billion in 2022 and ¥5.0 billion in 2021) |  | 179 |  |  |  |  | 43 |  |
Variable interest rate loan due August 2032 (.59% in 2022 and .56% in 2021, principal amount ¥70.0 billion in 2022 and ¥25.0 billion in 2021) |  | 495 |  |  |  |  | 216 |  |
Finance lease obligations payable through 2028 |  | 8 |  |  |  |  | 12 |  |
Operating lease obligations payable through 2049 |  | 117 |  |  |  |  | 105 |  |
Total notes payable and lease obligations |  | $ | 7,518 |  |  |  |  | $ | 7,956 |  |
(1) Redeemed in October 2022 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 2022, the Parent Company issued four series of senior notes totaling ¥73.0 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥33.4 billion, bears interest at a fixed rate of 1.075% per annum, payable semi-annually, and will mature in September 2029. The second series, which totaled ¥21.1 billion, bears interest at a fixed rate of 1.320% per annum, payable semi-annually, and will mature in December 2032. The third series, which totaled ¥6.5 billion, bears interest at a fixed rate of 1.594% per annum, payable semi-annually, and will mature in September 2037. The fourth series, which totaled ¥12.0 billion, bears interest at a fixed rate of 2.144% per annum, payable semi-annually, and will mature in September 2052. These notes are redeemable at the Parent Company’s option 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. In addition, the notes maturing in September 2029, December 2032 and September 2037 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after June 14, 2029, June 14, 2032 and March 14, 2037, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption. In August 2022, the Parent Company renewed a senior term loan facility with a commitment amount totaling ¥107.0 billion. The first tranche of the facility, which totaled ¥11.7 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 August 2027. The applicable margin ranges between .225% and .625%, depending on the Parent Company's debt ratings as of the date of determination. The second tranche, which totaled ¥25.3 billion, bears interest at a rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and will mature in August 2029. The applicable margin ranges between .325% and .725%, depending on the Parent Company's debt ratings as of the date of determination. The third tranche, which totaled ¥70.0 billion, bears interest at a rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and will mature in August 2032. The applicable margin ranges between .475% and 1.025%, depending on the Parent Company's debt ratings as of the date of determination. In September 2022, the Parent Company used a portion of the net proceeds from its September 2022 issuance of various series of senior notes and the August 2022 senior term loan facility to redeem $750 million of its 3.625% senior notes due November 2024. A summary of the Company's lines of credit as of September 30, 2022 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 30, 2022 | $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 | May 9, 2027, 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) 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 May 10, 2027 | .28% to .45%, 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) USD 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 Parent Company's option, either (a) a rate determined by reference to USD 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) USD one-month LIBOR plus 1%. USD 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, 2022 | $250 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | 3 months | None | General corporate purposes
Aflac Incorporated(1) (Tranche 1) | uncommitted revolving | 364 days | November 25, 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) (Tranche 2) | uncommitted revolving | 364 days | November 25, 2022 | ¥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 10, 2023 | $25 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | No later than April 11, 2023 | None | General corporate purposes
CAIC(1) | uncommitted revolving | 364 days | March 21, 2023 | $15 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | No later than March 22, 2023 | 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, 2023 | $0.3 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | No later than March 22, 2023 | None | General corporate purposes
Aflac Ventures Japan K.K.(1) | uncommitted revolving | 364 days | May 2, 2023 | ¥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 3, 2023 | None | General corporate purposes
Hatch Healthcare K.K.(1) | uncommitted revolving | 364 days | January 3, 2023 | ¥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 4, 2023 | None | General corporate purposes
Hatch Insight K.K.(1) | uncommitted revolving | 364 days | January 3, 2023 | ¥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 4, 2023 | None | General corporate purposes
Aflac GI Holdings LLC(1) | uncommitted revolving | 364 days | July 17, 2023 | $30 million | $0 million | USD three-month LIBOR plus 75 basis points per annum | No later than July 18, 2023 | 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, 2022. No events of default or defaults occurred during the nine-month period ended September 30, 2022. For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2021 Annual Report.

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