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NOTES PAYABLE AND LEASE OBLIGATIONS | 3 Months Ended
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Mar. 31, 2024
Debt Disclosure [Abstract] |
NOTES PAYABLE AND LEASE OBLIGATIONS | NOTES PAYABLE AND LEASE OBLIGATIONS A summary of notes payable and lease obligations follows:
(In millions) | March 31, 2024 |  | December 31, 2023
1.125% senior sustainability notes due March 2026 |  | $ | 398 |  |  |  |  | $ | 398 |  |
2.875% senior notes due October 2026 |  | 299 |  |  |  |  | 299 |  |
3.60% senior notes due April 2030 |  | 993 |  |  |  |  | 993 |  |
6.90% senior notes due December 2039 |  | 221 |  |  |  |  | 221 |  |
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 |  | 542 |  |  |  |  | 542 |  |
Yen-denominated senior notes and subordinated debentures: |  |  |  |  |  |  |
.300% senior notes due September 2025 (principal amount ¥12.4 billion) |  | 82 |  |  |  |  | 87 |  |
.932% senior notes due January 2027 (principal amount ¥60.0 billion) |  | 395 |  |  |  |  | 422 |  |
1.048% senior notes due March 2029 (principal amount ¥13.0 billion) |  | 86 |  |  |  |  | 0 |  |
1.075% senior notes due September 2029 (principal amount ¥33.4 billion) |  | 220 |  |  |  |  | 234 |  |
.500% senior notes due December 2029 (principal amount ¥12.6 billion) |  | 83 |  |  |  |  | 88 |  |
.550% senior notes due March 2030 (principal amount ¥13.3 billion) |  | 87 |  |  |  |  | 93 |  |
1.159% senior notes due October 2030 (principal amount ¥29.3 billion) |  | 192 |  |  |  |  | 206 |  |
1.412% senior notes due March 2031 (principal amount ¥27.9 billion) |  | 184 |  |  |  |  | 0 |  |
.633% senior notes due April 2031 (principal amount ¥30.0 billion) |  | 197 |  |  |  |  | 211 |  |
.843% senior notes due December 2031 (principal amount ¥9.3 billion) |  | 61 |  |  |  |  | 65 |  |
.750% senior notes due March 2032 (principal amount ¥20.7 billion) |  | 136 |  |  |  |  | 145 |  |
1.320% senior notes due December 2032 (principal amount ¥21.1 billion) |  | 139 |  |  |  |  | 148 |  |
.844% senior notes due April 2033 (principal amount ¥12.0 billion) |  | 79 |  |  |  |  | 84 |  |
1.488% senior notes due October 2033 (principal amount ¥15.2 billion) |  | 100 |  |  |  |  | 106 |  |
1.682% senior notes due March 2034 (principal amount ¥7.7 billion) |  | 51 |  |  |  |  | 0 |  |
1.600% senior notes due March 2034 (principal amount ¥18.3 billion) |  | 122 |  |  |  |  | 0 |  |
.934% senior notes due December 2034 (principal amount ¥9.8 billion) |  | 64 |  |  |  |  | 69 |  |
.830% senior notes due March 2035 (principal amount ¥10.6 billion) |  | 69 |  |  |  |  | 74 |  |
1.740% senior notes due March 2036 (principal amount ¥15.0 billion) |  | 100 |  |  |  |  | 0 |  |
1.039% senior notes due April 2036 (principal amount ¥10.0 billion) |  | 65 |  |  |  |  | 70 |  |
1.594% senior notes due September 2037 (principal amount ¥6.5 billion) |  | 43 |  |  |  |  | 45 |  |
1.750% senior notes due October 2038 (principal amount ¥8.9 billion) |  | 58 |  |  |  |  | 62 |  |
1.920% senior notes due March 2039 (principal amount ¥16.5 billion) |  | 110 |  |  |  |  | 0 |  |
1.122% senior notes due December 2039 (principal amount ¥6.3 billion) |  | 41 |  |  |  |  | 44 |  |
1.264% senior notes due April 2041 (principal amount ¥10.0 billion) |  | 65 |  |  |  |  | 70 |  |
2.160% senior notes due March 2044 (principal amount ¥5.7 billion) |  | 38 |  |  |  |  | 0 |  |
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) |  | 392 |  |  |  |  | 419 |  |
.963% subordinated bonds due April 2049 (principal amount ¥30.0 billion) (1) |  | 198 |  |  |  |  | 211 |  |
1.560% senior notes due April 2051 (principal amount ¥20.0 billion) |  | 131 |  |  |  |  | 140 |  |
2.144% senior notes due September 2052 (principal amount ¥12.0 billion) |  | 79 |  |  |  |  | 84 |  |
1.958% subordinated bonds due December 2053 (principal amount ¥30.0 billion) |  | 197 |  |  |  |  | 210 |  |
2.400% senior notes due March 2054 (principal amount ¥19.5 billion) |  | 130 |  |  |  |  | 0 |  |
Yen-denominated loans: |  |  |  |  |  |  |
Variable interest rate loan due August 2027 (.38% in 2024 and .35% in 2023, principal amount ¥11.7 billion) |  | 77 |  |  |  |  | 82 |  |
Variable interest rate loan due August 2029 (.48% in 2024 and .45% in 2023, principal amount ¥25.3 billion) |  | 166 |  |  |  |  | 178 |  |
Variable interest rate loan due August 2032 (.63% in 2024 and .60% in 2023, principal amount ¥70.0 billion) |  | 461 |  |  |  |  | 492 |  |
Finance lease obligations payable through 2030 |  | 6 |  |  |  |  | 6 |  |
Operating lease obligations payable through 2049 |  | 107 |  |  |  |  | 118 |  |
Total notes payable and lease obligations |  | $ | 7,912 |  |  |  |  | $ | 7,364 |  |
(1) Redeemed in April 2024 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 March 2024, the Parent Company issued five series of senior notes totaling ¥75.0 billion through a private placement. The first series, which totaled ¥18.3 billion, bears interest at a fixed rate of 1.600% per annum, payable semi-annually, and will mature in March 2034. The second series, which totaled ¥15.0 billion, bears interest at a fixed rate of 1.740% per annum, payable semi-annually, and will mature in March 2036. The third series, which totaled ¥16.5 billion, bears interest at a fixed rate of 1.920% per annum, payable semi-annually, and will mature in March 2039. The fourth series, which totaled ¥5.7 billion, bears interest at a fixed rate of 2.160% per annum, payable semi-annually, and will mature in March 2044. The fifth series, which totaled ¥19.5 billion, bears interest at a fixed rate of 2.400% per annum, payable semi-annually, and will mature in March 2054. These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed. In March 2024, the Parent Company issued three series of senior notes totaling ¥48.6 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥13.0 billion, bears interest at a fixed rate of 1.048% per annum, payable semi-annually, and will mature in March 2029. The second series, which totaled ¥27.9 billion, bears interest at a fixed rate of 1.412% per annum, payable semi-annually, and will mature in March 2031. The third series, which totaled ¥7.7 billion, bears interest at a fixed rate of 1.682% per annum, payable semi-annually, and will mature in March 2034. 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 March 2029, March 2031 and March 2034 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after December 21, 2028, December 31, 2030 and September 21, 2033, 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. Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $46 million and $47 million for the three-month periods ended March 31, 2024 and 2023, respectively. A summary of the Company's lines of credit as of March 31, 2024 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 6, 2024 | $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) 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 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 15, 2027, 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) Secured Overnight Financing Rate (SOFR) 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 the agent as its prime rate, or (3) SOFR for an interest period of one month plus 1.00%, in each case plus an applicable margin | No later than November 15, 2027 | .08% to .20%, 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 SOFR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (1) the lender's USD short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1% | Up to 3 months | None | General corporate purposes
Aflac(1) | uncommitted revolving | 364 days | December 2, 2024 | $250 million | $50 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 3, 2024 | None | General corporate purposes
Aflac Incorporated(1) (Tranche 1) | uncommitted revolving | 364 days | November 25, 2024 | ¥50.0 billion | ¥0.0 billion | Three-month yen TIBOR plus 75 basis points per annum | No later than November 26, 2024 | None | General corporate purposes
Aflac Incorporated(1) (Tranche 2) | uncommitted revolving | 364 days | November 25, 2024 | ¥50.0 billion | ¥0.0 billion | Three-month yen TIBOR plus 75 basis points per annum | No later than November 26, 2024 | None | General corporate purposes
Aflac New York(1),(2) | uncommitted revolving | 364 days | April 8, 2024 | $25 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than April 9, 2024 | None | General corporate purposes
CAIC(1) | uncommitted revolving | 364 days | March 21, 2025 | $15 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than March 24, 2025 | None | General corporate purposes
(1) Intercompany credit agreement (2) Renewed in April 2024 with an expiration date of April 8, 2025 (continued)
Borrower(s) | Type | Term | Expiration Date | Capacity | Amount Outstanding | Interest Rate on Borrowed Amount | Maturity Period | Commitment Fee | Business Purpose
TOIC(1) | uncommitted revolving | 364 days | March 21, 2025 | $0.3 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than March 24, 2025 | None | General corporate purposes
Hatch Healthcare K.K.(1) | uncommitted revolving | 364 days | January 2, 2025 | ¥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, 2025 | None | General corporate purposes
Aflac Digital Services Co., Ltd.(1) | uncommitted revolving | 364 days | January 2, 2025 | ¥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, 2025 | None | General corporate purposes
Aflac GI Holdings LLC(1) | uncommitted revolving | 364 days | July 16, 2024 | $30 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than July 17, 2024 | None | General corporate purposes
Aflac Incorporated(1) | uncommitted revolving | 364 days | January 2, 2025 | $400 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 97 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 97 basis points per annum for Japanese yen-denominated borrowings | No later than January 3, 2025 | None | General corporate purposes
Aflac Re(1) | uncommitted revolving | 364 days | January 2, 2025 | $400 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings | No later than January 3, 2025 | 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 March 31, 2024. No events of default or defaults occurred during the three-month period ended March 31, 2024. For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2023 Annual Report.

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