AFLAC INC, 10-K filed on 2/24/2017
Annual Report
v3.6.0.2
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2016
Feb. 15, 2017
Jun. 30, 2016
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2016    
Document Fiscal Year Focus 2016    
Document Fiscal Period Focus FY    
Trading Symbol AFL    
Entity Registrant Name AFLAC INC    
Entity Central Index Key 0000004977    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Common Stock, Shares Outstanding   401,426,860  
Entity Public Float     $ 29,327,044,586
Maximum      
Estimation of Percent of Revenues Within Scope of the Guidance to Total Revenues 1.00%    
v3.6.0.2
Consolidated Statements of Earnings - USD ($)
shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues:      
Net premiums, principally supplemental health insurance $ 19,225 $ 17,570 $ 19,072
Net investment income 3,278 3,135 3,319
Realized investment gains (losses):      
Other-than-temporary impairment losses realized (83) (153) (31)
Sales and redemptions 215 303 215
Derivative and other gains (losses) (255) (10) 31
Total realized investment gains (losses) (123) 140 215
Other income (loss) 179 27 122
Total revenues 22,559 20,872 22,728
Benefits and expenses:      
Benefits and claims, net 12,919 11,746 12,937
Acquisition and operating expenses:      
Amortization of deferred policy acquisition costs 1,141 1,066 1,108
Insurance commissions 1,368 1,303 1,436
Insurance expenses 2,452 2,214 2,261
Interest expense 268 289 317
Other operating expenses 344 [1] 392 [1] 178
Total acquisition and operating expenses 5,573 5,264 5,300
Total benefits and expenses 18,492 17,010 18,237
Earnings before income taxes 4,067 3,862 4,491
Income Tax Expense:      
Current 884 1,288 1,079
Deferred 524 41 461
Total income tax expense 1,408 1,329 1,540
Net earnings $ 2,659 $ 2,533 $ 2,951
Net earnings per share:      
Basic (in dollars per share) $ 6.46 $ 5.88 $ 6.54
Diluted (in dollars per share) $ 6.42 $ 5.85 $ 6.50
Weighted-average outstanding common shares used in computing earnings per share (In thousands):      
Basic (in shares) 411,471 430,654 451,204
Diluted (in shares) 413,921 433,172 454,000
Senior Notes due 2039 and 2040      
Expense on extinguishment of debt $ 137    
8.50% senior notes due May 2019      
Expense on extinguishment of debt   $ 230  
[1] Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
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Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]      
Net earnings $ 2,659 $ 2,533 $ 2,951
Other comprehensive income (loss) before income taxes:      
Unrealized foreign currency translation gains (losses) during period 283 360 (1,455)
Unrealized gains (losses) on investment securities:      
Unrealized holding gains (losses) on investment securities during period 2,852 (2,534) 5,947
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings (53) (61) (54)
Unrealized gains (losses) on derivatives during period 3 0 (17)
Pension liability adjustment during period (45) (20) (76)
Total other comprehensive income (loss) before income taxes 3,040 (2,255) 4,345
Income tax expense (benefit) related to items of other comprehensive income (loss) 1,035 (901) 1,803
Other comprehensive income (loss), net of income taxes 2,005 (1,354) 2,542
Total comprehensive income (loss) $ 4,664 $ 1,179 $ 5,493
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Securities held to maturity, at amortized cost:    
Fixed maturities $ 33,350 $ 33,459
Other investments 1,450 [1] 294
Cash and cash equivalents 4,859 4,350
Total investments and cash 116,361 105,897
Receivables 669 705
Accrued investment income 754 768
Deferred policy acquisition costs 8,993 8,511
Property and equipment, at cost less accumulated depreciation 433 427
Other [2] 2,609 1,948
Total assets 129,819 118,256
Policy liabilities:    
Future policy benefits 76,106 69,687
Unpaid policy claims 4,045 3,802
Unearned premiums 6,916 7,857
Other policyholders' funds 6,659 6,285
Total policy liabilities 93,726 87,631
Income taxes 5,387 4,340
Payables for return of cash collateral on loaned securities 526 941
Notes payable 5,360 4,971
Other [3] 4,338 2,665
Commitments and contingent liabilities (Note 15)
Total liabilities 109,337 100,548
Shareholders' equity:    
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 67 67
Additional paid-in capital 1,976 1,828
Retained earnings 25,981 24,007
Accumulated other comprehensive income (loss):    
Unrealized foreign currency translation gains (losses) (1,983) (2,196)
Unrealized gains (losses) on investment securities 4,805 2,986
Unrealized gains (losses) on derivatives (24) (26)
Pension liability adjustment (168) (139)
Treasury stock, at average cost (10,172) (8,819)
Total shareholders' equity 20,482 17,708
Total liabilities and shareholders' equity 129,819 118,256
Investments Other Than Consolidated Variable Interest Entities    
Securities available for sale, at fair value:    
Fixed maturities 68,778 60,795
Perpetual securities 1,425 1,719
Equity securities 265 135
Securities held to maturity, at amortized cost:    
Fixed maturities 33,350 33,459
Variable Interest Entity, Consolidated    
Securities available for sale, at fair value:    
Fixed maturities 4,982 4,554
Perpetual securities 208 228
Equity securities $ 1,044 $ 363
[1] Includes $819 in 2016 of loan receivables from consolidated variable interest entities
[2] Includes $127 in 2016 and $102 in 2015 of derivatives from consolidated variable interest entities
[3] Includes $146 in 2016 and $293 in 2015 of derivatives from consolidated variable interest entities
v3.6.0.2
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Millions
Dec. 31, 2016
Dec. 31, 2015
Securities held to maturity, fixed maturities, fair value $ 40,021 $ 37,520
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
Common stock, shares authorized (in shares) 1,900,000 1,900,000
Common stock, shares issued (in shares) 671,249 669,723
Asset derivatives $ 1,207 $ 676
Liability derivatives 1,998 371
Investments Other Than Consolidated Variable Interest Entities    
Securities available for sale, fixed maturities, amortized cost 62,195 56,903
Securities available for sale, perpetual securities, amortized cost 1,269 1,586
Securities available for sale, equity securities, cost 231 117
Securities held to maturity, fixed maturities, fair value 40,021 37,520
Variable Interest Entity, Consolidated    
Securities available for sale, fixed maturities, amortized cost 4,168 3,739
Securities available for sale, perpetual securities, amortized cost 237 255
Securities available for sale, equity securities, cost 972 363
Asset derivatives 127 102
Liability derivatives 146 $ 293
Commercial mortgage and middle market loans [Member] | Variable Interest Entity, Consolidated    
Other investments held in unit trust, net of reserves, amortized cost $ 819  
v3.6.0.2
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Millions
Total
Common stock:
Additional paid-in capital:
Retained earnings:
Accumulated other comprehensive income (loss):
Treasury stock:
Balance, beginning of period at Dec. 31, 2013   $ 67 $ 1,644 $ 19,885 $ (563) $ (6,413)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Exercise of stock options     29      
Share-based compensation     (3)      
Net earnings $ 2,951     2,951    
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014)       (680)    
Unrealized foreign currency translation gains (losses) during period, net of income taxes         (1,036)  
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments         3,637  
Unrealized gains (losses) on derivatives during period, net of income taxes         (14)  
Pension liability adjustment during period, net of income taxes         (45)  
Purchases of treasury stock           (1,210)
Treasury stock reissued     41     57
Balance, end of period at Dec. 31, 2014 18,347 67 1,711 22,156 1,979 (7,566)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Exercise of stock options     43      
Share-based compensation     36      
Net earnings 2,533     2,533    
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014)       (682)    
Unrealized foreign currency translation gains (losses) during period, net of income taxes         345  
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments         (1,686)  
Unrealized gains (losses) on derivatives during period, net of income taxes         0  
Pension liability adjustment during period, net of income taxes         (13)  
Purchases of treasury stock           (1,315)
Treasury stock reissued     38     62
Balance, end of period at Dec. 31, 2015 17,708 67 1,828 24,007 625 (8,819)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Exercise of stock options     46      
Share-based compensation     64      
Net earnings 2,659     2,659    
Dividends to shareholders ($1.66 per share in 2016, $1.58 per share in 2015 and $1.50 per share in 2014)       (685)    
Unrealized foreign currency translation gains (losses) during period, net of income taxes         213  
Unrealized gains (losses) on investment securities during the period, net of income taxes and reclassification adjustments         1,819  
Unrealized gains (losses) on derivatives during period, net of income taxes         2  
Pension liability adjustment during period, net of income taxes         (29)  
Purchases of treasury stock           (1,422)
Treasury stock reissued     38     69
Balance, end of period at Dec. 31, 2016 $ 20,482 $ 67 $ 1,976 $ 25,981 $ 2,630 $ (10,172)
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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Retained earnings:      
Dividends to shareholders (in dollars per share) $ 1.66 $ 1.58 $ 1.50
v3.6.0.2
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:      
Net earnings $ 2,659 $ 2,533 $ 2,951
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Change in receivables and advance premiums 42 147 (7)
Increase in deferred policy acquisition costs (306) (241) (225)
Increase in policy liabilities 3,331 3,524 3,614
Change in income tax liabilities (93) (36) 123
Realized investment (gains) losses 123 (140) (215)
Other, net 231 [1] 989 [1] 309
Net cash provided (used) by operating activities 5,987 6,776 6,550
Securities available for sale:      
Fixed maturities sold 5,157 3,224 4,178
Fixed maturities matured or called 1,096 1,132 1,001
Perpetual securities matured or called 470 647 203
Equity securities sold 350 1 0
Securities held to maturity:      
Fixed maturities matured or called 1,399 766 8,475
Costs of investments acquired:      
Available for sale fixed maturities acquired (10,890) (6,507) (10,978)
Available-for-sale equity securities acquired (1,079) (454) (5)
Held to maturity fixed maturities acquired 0 0 (3,564)
Other investments, net (1,118) (70) 272
Purchase of subsidiary 0 (40) 0
Settlement of derivatives, net 1,252 (2,119) (636)
Cash received (pledged or returned) as collateral, net (416) (1,391) (3,217)
Other, net (76) (86) 30
Net cash provided (used) by investing activities (3,855) (4,897) (4,241)
Cash flows from financing activities:      
Purchases of treasury stock (1,422) (1,315) (1,210)
Proceeds from borrowings 986 998 750
Principal payments under debt obligations (610) (1,272) (335)
Dividends paid to shareholders (658) (656) (654)
Change in investment-type contracts, net 159 256 1,253
Treasury stock reissued 46 36 33
Other, net (120) [1] (234) [1] 16
Net cash provided (used) by financing activities (1,619) (2,187) (147)
Effect of exchange rate changes on cash and cash equivalents (4) 0 (47)
Net change in cash and cash equivalents 509 (308) 2,115
Cash and cash equivalents, beginning of period 4,350 4,658 2,543
Cash and cash equivalents, end of period 4,859 4,350 4,658
Supplemental disclosures of cash flow information:      
Income taxes paid 1,526 996 1,416
Interest paid 211 236 241
Noncash interest 57 53 76
Impairment losses included in realized investment losses 83 153 31
Noncash financing activities:      
Capitalized lease obligations 1 6 9
Associate stock bonus      
Noncash financing activities:      
Treasury stock issued 30 35 35
Shareholder dividend reinvestment      
Noncash financing activities:      
Treasury stock issued 27 26 26
Share-based compensation grants      
Noncash financing activities:      
Treasury stock issued 4 3 $ 4
Senior Notes due 2039 and 2040      
Expense on extinguishment of debt $ 137    
8.50% senior notes due May 2019      
Expense on extinguishment of debt   $ 230  
[1] Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Business 
Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 71% of the Company's total revenues in 2016, compared with 70% in 2015 and 72% in 2014. The percentage of the Company's total assets attributable to Aflac Japan was 83% at both December 31, 2016 and 2015.

Basis of Presentation
We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards CodificationTM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate.

The consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated.

Significant Accounting Policies

Translation of Foreign Currencies: The functional currency of Aflac Japan's insurance operations is the Japanese yen. We translate our yen-denominated financial statement accounts into U.S. dollars as follows. Assets and liabilities are translated at end-of-period exchange rates. Realized gains and losses on security transactions are translated at the exchange rate on the trade date of each transaction. Other revenues, expenses and cash flows are translated using average exchange rates for the period. The resulting currency translation adjustments are reported in accumulated other comprehensive income. We include in earnings the realized currency exchange gains and losses resulting from foreign currency transactions.

We have designated a majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our investment in Aflac Japan. Outstanding principal and related accrued interest on these Parent Company liabilities and the fair value of these derivatives are translated into U.S. dollars at end-of-period exchange rates. Currency translation adjustments and changes in the fair value of these derivatives are recorded as unrealized foreign currency translation gains (losses) in other comprehensive income and are included in accumulated other comprehensive income.

Insurance Revenue and Expense Recognition: The supplemental health and life insurance policies we issue are classified as long-duration contracts. The contract provisions generally cannot be changed or canceled during the contract period; however, we may adjust premiums for supplemental health policies issued in the United States within prescribed guidelines and with the approval of state insurance regulatory authorities.

Insurance premiums for most of the Company's health and life policies, including cancer, accident, hospital, critical illness, dental, vision, term life, whole life, long-term care and disability, are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. When revenues are reported, the related amounts of benefits and expenses are charged against such revenues, so that profits are recognized in proportion to premium revenues during the period the policies are expected to remain in force. This association is accomplished by means of annual additions to the liability for future policy benefits and the deferral and subsequent amortization of policy acquisition costs.

Premiums from the Company's products with limited-pay features, including term life, whole life, WAYS, and child endowment, are collected over a significantly shorter period than the period over which benefits are provided. Premiums for these products are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. Any gross premium in excess of the net premium is deferred and recorded in earnings, such that profits are recognized in a constant relationship with insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net premium method.

At the policyholder's option, customers can also pay discounted advanced premiums for certain of our products. Advanced premiums are deferred and recognized when due from policyholders over the regularly scheduled premium payment period.

The calculation of deferred policy acquisition costs (DAC) and the liability for future policy benefits requires the use of estimates based on sound actuarial valuation techniques. For new policy issues, we review our actuarial assumptions and deferrable acquisition costs each year and revise them when necessary to more closely reflect recent experience and studies of actual acquisition costs. For policies in force, we evaluate DAC by major product groupings to determine that they are recoverable from future revenues, and any amounts determined not to be recoverable are charged against net earnings. We have not had any material charges to earnings for DAC that was determined not to be recoverable in any of the years presented in this Form 10-K.

Advertising expense is reported as incurred in insurance expenses in the consolidated statements of earnings.

Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, money market instruments and other debt instruments with a maturity of 90 days or less when purchased.

Investments: Our debt securities consist of fixed-maturity securities, which are classified as either held to maturity or available for sale. Securities classified as held to maturity are securities that we have the ability and intent to hold to maturity or redemption and are carried at amortized cost. All other fixed-maturity debt securities, our perpetual securities and our equity securities are classified as available for sale and are carried at fair value. If the fair value is higher than the amortized cost for debt and perpetual securities, or the purchase cost for equity securities, the excess is an unrealized gain, and if lower than cost, the difference is an unrealized loss. The net unrealized gains and losses on securities available for sale, plus the unamortized unrealized gains and losses on debt securities transferred to the held-to-maturity portfolio, less related deferred income taxes, are recorded through other comprehensive income and included in accumulated other comprehensive income.

Amortized cost of debt and perpetual securities is based on our purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of debt and perpetual securities we purchase at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Interest is reported as income when earned and is adjusted for amortization of any premium or discount.

We have investments in variable interest entities (VIEs). Criteria for evaluating VIEs for consolidation focuses on identifying which enterprise has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. We are the primary beneficiary of certain VIEs, and therefore consolidate these entities in our financial statements. While the VIEs generally operate within a defined set of documents, there are certain powers that are retained by us that are considered significant in our conclusion that we are the primary beneficiary. These powers vary by structure but generally include the initial selection of the underlying collateral or, for collateralized debt obligations (CDOs), the reference credits to include in the structure; the ability to obtain the underlying collateral in the event of default; and the ability to appoint or dismiss key parties in the structure. In particular, our powers surrounding the underlying collateral were considered to be the most significant powers since those most significantly impact the economics of the VIE. We have no obligation to provide any continuing financial support to any of the entities in which we are the primary beneficiary. Our maximum loss is limited to our original investment. Neither we nor any of our creditors have the ability to obtain the underlying collateral, nor do we have control over the instruments in the VIEs, unless there is an event of default. For those entities where we are the primary beneficiary, the assets consolidated are fixed-maturity securities, perpetual securities, equity securities, and derivative instruments; collateral consisting of these asset classes is reported separately with the caption "- consolidated variable interest entities" on our balance sheet.

For the mortgage- and asset-backed securities held in our fixed maturities portfolio, we recognize income using a constant effective yield, which is based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in mortgage- and asset-backed securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income.

We use the specific identification method to determine the gain or loss from securities transactions and report the realized gain or loss in the consolidated statements of earnings. Securities transactions are accounted for based on values as of the trade date of the transaction.

An investment in a fixed maturity, perpetual security or equity security is impaired if the fair value falls below book value. We regularly review our entire investment portfolio for declines in value. Our fixed maturities and investment-grade perpetual securities investments are evaluated for other-than-temporary impairment using our debt impairment model. Our debt impairment model focuses on the ultimate collection of the cash flows from our investments and whether we have the intent to sell or if it is more likely than not we would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon our periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available.
When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition our security portfolio, and risk profile of individual investment holdings. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration analysis of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without selling any of our investments prior to their maturity.

The determination of whether an impairment in value of our debt securities is other than temporary is based largely on our evaluation of the issuer's creditworthiness. We must apply considerable judgment in determining the likelihood of the security recovering in value while we own it. Factors that may influence this include the overall level of interest rates, credit spreads, the credit quality of the underlying issuer, and other factors. This process requires consideration of risks which can be controlled to a certain extent, such as credit risk, and risks which cannot be controlled, such as interest rate risk and foreign currency risk.

If, after monitoring and analyses, management believes that fair value will not recover to amortized cost prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once a security is considered to be other-than-temporarily impaired, the impairment loss is separated into two separate components: the portion of the impairment related to credit and the portion of the impairment related to factors other than credit. We recognize a charge to earnings for the credit-related portion of other-than-temporary impairments. Impairments related to factors other than credit are charged to earnings in the event we intend to sell the security prior to the recovery of its amortized cost or if it is more likely than not that we would be required to dispose of the security prior to recovery of its amortized cost; otherwise, non-credit-related other-than-temporary impairments are charged to other comprehensive income.

Our investments in perpetual securities that are rated below investment grade and equity securities are evaluated for other-than-temporary impairment under our equity impairment model. Our equity impairment model focuses on the severity of a security's decline in fair value coupled with the length of time the fair value of the security has been below amortized cost and the financial condition and near-term prospects of the issuer. For equity securities that have declines in value that are deemed to be temporary, we make an assertion as to our ability and intent to retain the security until recovery. Once identified, these equity securities are restricted from trading unless authorized based upon significant events that could not have been foreseen at the time we asserted our ability and intent to retain the security until recovery.

If management believes that the equity security will not recover prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once an equity security is considered to be other-than-temporarily impaired, its fair value on that date becomes the new cost basis and the impairment loss is recognized in earnings.

We lend fixed-maturity securities to financial institutions in short-term security lending transactions. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral.

Other investments include policy loans, middle market loans, commercial mortgage loans, and other short-term investments with maturities of one year or less, but greater than 90 days, at the time of purchase. We invest in middle market loans through participation rights, and commercial mortgage loans that are accounted for as loan receivables and recorded at amortized cost on the acquisition date. Since we have the intent and ability to hold these loan receivables for the foreseeable future or until they mature, they are considered held for investment and are carried at adjusted amortized cost in the other investments line on our consolidated balance sheets. The adjusted amortized cost of the loan receivables reflects allowances for expected incurred losses estimated based on past events and current economic conditions as of each reporting date. Other short-term investments are stated at amortized cost, which approximates estimated fair value.

Derivatives and Hedging: Freestanding derivative instruments are reported in the consolidated balance sheet at fair value and are reported in other assets and other liabilities, with changes in value reported in earnings and/or other comprehensive income. These freestanding derivatives are interest rate swaps, foreign currency swaps, credit default swaps (CDSs), foreign currency forwards, foreign currency options, and options on interest rate swaps (or interest rate swaptions). Interest rate and foreign currency swaps are used within VIEs to hedge the risk arising from interest rate and currency exchange risk, while the CDSs are used to increase the yield and improve the diversification of the portfolio. Foreign currency forwards and options are used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio. Foreign currency forwards and options are used to hedge certain portions of forecasted cash flows denominated in yen. Interest rate swaps are used to hedge the variability of interest cash flows associated with our variable interest rate notes. Cross-currency interest rate swaps, also referred to as foreign currency swaps, are used to economically convert certain U.S. dollar-denominated note obligations into yen-denominated principal and interest obligations. Interest rate swaptions have been used to hedge interest rate risk for certain U.S. dollar-denominated available-for-sale securities. We do not use derivatives for trading purposes, nor do we engage in leveraged derivative transactions.

From time to time, we purchase certain investments that contain an embedded derivative. We assess whether this embedded derivative is clearly and closely related to the asset that serves as its host contract. If we deem that the embedded derivative's terms are not clearly and closely related to the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the derivative is separated from that contract, held at fair value and reported with the host instrument in the consolidated balance sheet, with changes in fair value reported in earnings. If we have elected the fair value option, the embedded derivative is not bifurcated, and the entire investment is held at fair value with changes in fair value reported in earnings.

For those relationships where we seek hedge accounting, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objectives and strategies for undertaking various hedge transactions. This process includes linking derivatives and non-derivative financial instruments that are designated as hedges to specific assets or liabilities on the balance sheet. We also assess, both at inception and on an ongoing basis, whether the derivatives and non-derivative financial instruments used in hedging activities are highly effective in offsetting changes in fair values or cash flows of the hedged items. The assessment of hedge effectiveness determines the accounting treatment of noncash changes in fair value.

Changes in the fair value of any of our derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income as long as they are deemed effective. Any hedge ineffectiveness is recorded immediately in current period earnings within derivative and other gains (losses). Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of earnings in which the cash flows of the hedged item are recorded.
Changes in the estimated fair value of derivative instruments that are designated and qualify as fair value hedges, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses).

We have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated certain derivatives as hedges of the foreign currency exposure to our investment in Aflac Japan. At the beginning of each quarter, we make our net investment hedge designation. If the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective, and the exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses).

Derivatives that are not designated as hedges are carried at fair value with all changes in fair value recorded in current period earnings within derivative and other gains (losses). We include the fair value of all freestanding derivatives in either other assets or other liabilities on the balance sheet.

We receive and pledge cash or other securities as collateral on open derivative positions. Cash received as collateral is reported as an asset with a corresponding liability for the return of the collateral. Cash pledged as collateral is recorded as a reduction to cash, and a corresponding receivable is recognized for the return of the cash collateral. We generally can repledge or resell collateral obtained by us, although we do not typically exercise such rights. Securities received as collateral are not recognized unless we were to exercise our right to sell that collateral or exercise remedies on that collateral upon a counterparty default. Securities that we have pledged as collateral continue to be carried as investment assets on our balance sheet.
Freestanding derivatives are carried at estimated fair value in our consolidated balance sheets either as other assets or as other liabilities. See Note 5 for a discussion on how we determine the fair value of our derivatives. Accruals on derivatives are typically recorded in accrued investment income or within other liabilities in the consolidated balance sheets.
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are generally reported within derivative and other gains(losses), which is a component of realized investment gains (losses). The fluctuations in estimated fair value of derivatives that have not been designated for hedge accounting can result in volatility in net earnings.
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. At the inception of the hedging relationship for hedges we elect to designate for hedge accounting treatment, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. We document the designation of each hedge as either (i) a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability or the hedge of a forecasted transaction ("cash flow hedge"); (ii) a hedge of the estimated fair value of a recognized asset or liability ("fair value hedge"); or (iii) a hedge of a net investment in a foreign operation. The documentation process includes linking derivatives and nonderivatives that are designated as hedges to specific assets or groups of assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been, and are expected to continue to be, highly effective in offsetting their designated risk. Hedge effectiveness is assessed using qualitative and quantitative methods.
For assessing hedge effectiveness of cash flow hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships on our VIE cash flow hedges is measured each reporting period using the “Hypothetical Derivative Method.” For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings within derivative and other gains (losses). All components of each derivative's gain or loss are included in the assessment of hedge effectiveness.
For assessing hedge effectiveness of fair value hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in fair value associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the dollar offset method. For derivative instruments that are designated and qualify as fair value hedges, changes in the estimated fair value of the derivative, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). When assessing the effectiveness of our fair value hedges, we exclude the changes in fair value related to the difference between the spot and the forward rate on our foreign currency forwards and the time value of options.
For the hedge of our net investment in Aflac Japan, we have designated Parent Company yen-denominated liabilities as non-derivative hedging instruments and have designated certain foreign currency forwards and options as derivative hedging instruments. We make our net investment hedge designation at the beginning of each quarter. For assessing hedge effectiveness of net investment hedges, if the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective. If the hedge is effective, the related exchange effect on the yen-denominated liabilities is reported in the unrealized foreign currency component of other comprehensive income. For derivatives designated as net investment hedges, Aflac follows the forward-rate method. According to that method, all changes in fair value, including changes related to the forward-rate component of foreign currency forward contracts and the time value of foreign currency options, are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses).
We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.
When hedge accounting is discontinued on a cash flow hedge or fair value hedge, the derivative is carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized in current period earnings. For discontinued cash flow hedges, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income (loss) are reclassified into earnings when earnings are impacted by the cash flow of the hedged item.

Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. The Company performs a two-stage analysis of the internal replacements to determine if the modification is substantive to the base policy. The stages of evaluation are as follows: 1) determine if the modification is integrated with the base policy, and 2) if it is integrated, determine if the resulting contract is substantially changed.
For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Examples include conversions of same age bands, certain family coverage changes, pricing era changes (decrease), and ordinary life becomes reduced paid-up and certain reinstatements.
An internal replacement transaction that results in a policy that is substantially changed is accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Further, the policy reserves are evaluated based on the new policy features, and any change (up or down) necessary is recognized at the date of contract change/modification. Examples include conversions-higher age bands, certain family coverage changes, pricing era changes (increase), lapse & re-issue, certain reinstatements and certain contract conversions.
Riders can be considered internal replacements that are either integrated or non-integrated resulting in either substantially changed or substantially unchanged treatment. Riders are evaluated based on the specific facts and circumstances of the rider and are considered expansion of the existing benefits with additional premium required. Non-integrated riders to existing contracts do not change the Company's profit expectations for the related products and are treated as a new policy establishment for incremental coverage.
We measure the recoverability of DAC and the adequacy of our policy reserves annually by performing gross premium valuations on our business. (See the following discussion for further information regarding policy reserves.)
Policy Liabilities: Future policy benefits represent claims that are expected to occur in the future and are computed by a net level premium method using estimated future investment yields, persistency and recognized morbidity and mortality tables modified to reflect our experience, including a provision for adverse deviation. These assumptions are generally established and considered locked at policy inception. These assumptions may only be unlocked in certain circumstances based on the results of periodic DAC recoverability and premium deficiency testing.
Unpaid policy claims are estimates computed on an undiscounted basis using statistical analyses of historical claims experience adjusted for current trends and changed conditions. The ultimate liability may vary significantly from such estimates. We regularly adjust these estimates as new claims experience emerges and reflect the changes in operating results in the year such adjustments are made.

Other policy liabilities consist primarily of discounted advance premiums on deposit from policyholders in conjunction with their purchase of certain Aflac Japan limited-pay insurance products. These advanced premiums are deferred upon collection and recognized as premium revenue over the contractual premium payment period.

For internal replacements that are determined to not be substantially unchanged, policy liabilities related to the original policy that was replaced are immediately released, and policy liabilities are established for the new insurance contract; however, for internal replacements that are considered substantially unchanged, no changes to the reserves are recognized.

Reinsurance: We enter into reinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. See Note 8 of the Notes to the Consolidated Financial Statements for additional information.

Income Taxes: Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

Policyholder Protection Corporation and State Guaranty Association Assessments: In Japan, the government has required the insurance industry to contribute to a policyholder protection corporation. We recognize a charge for our estimated share of the industry's obligation once it is determinable. We review the estimated liability for policyholder protection corporation contributions on an annual basis and report any adjustments in Aflac Japan's expenses.

In the United States, each state has a guaranty association that supports insolvent insurers operating in those states. To date, our state guaranty association assessments have not been material.

Treasury Stock: Treasury stock is reflected as a reduction of shareholders' equity at cost. We use the weighted-average purchase cost to determine the cost of treasury stock that is reissued. We include any gains and losses in additional paid-in capital when treasury stock is reissued.

Share-Based Compensation: We measure compensation cost related to our share-based payment transactions at fair value on the grant date, and we recognize those costs in the financial statements over the vesting period during which the employee provides service in exchange for the award.

Earnings Per Share: We compute basic earnings per share (EPS) by dividing net earnings by the weighted-average number of unrestricted shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of shares outstanding for the period plus the shares representing the dilutive effect of share-based awards.

Reclassifications: Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments: In September 2015, the FASB issued guidance requiring that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. In the same period’s financial statements, the acquirer is required to record income effects of the adjustments as if the accounting had been completed at the acquisition date. The acquirer is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Financial Services - Insurance - Disclosures about Short-Duration Contracts: In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. We adopted this guidance as of December 31, 2016, and have no insurance contracts classified as short-duration. The adoption of this guidance did not have a significant impact on our disclosures.

Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent): In May 2015, the FASB issued updated guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our disclosures.

Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs: In April 2015, the FASB issued updated guidance to simplify presentation of debt issuance costs. The updated guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. In August 2015, the FASB issued updated Securities and Exchange Commission (SEC) Staff guidance pertaining to the presentation of debt issuance costs related to line-of-credit arrangements. The guidance states that an entity may defer and present debt issuance costs as an asset, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We retrospectively adopted this guidance as of January 1, 2016. The retrospective adoption of this accounting standard resulted in a $40 million reduction to notes payable and other assets as of December 31, 2015, the earliest balance sheet date presented in the period of adoption, but did not have a significant impact on our financial position, results of operations, or disclosures.

Consolidation - Amendments to the Consolidation Analysis: In February 2015, the FASB issued updated guidance that affects evaluation of whether limited partnerships and similar legal entities (limited liability corporations and securitization structures, etc.) are VIEs, evaluation of whether fees paid to a decision maker or a service provider are a variable interest, and evaluation of the effect of fee arrangements and the effect of related parties on the determination of the primary beneficiary under the VIE model for consolidation. The updated guidance eliminates the presumption that a general partner should consolidate a limited partnership. Limited partnership and similar legal entities that provide partners with either substantive kick-out rights or substantive participating rights over the general partner will now be evaluated under the voting interest model rather than the VIE model for consolidation. In situations where no single party has a controlling financial interest in a VIE, the related party relationships under common control should be considered in their entirety in determining whether that common control group has a controlling financial interest in the VIE. We adopted this guidance as of January 1, 2016. The adoption of this guidance impacted our footnote disclosures, but did not have a significant impact on our financial position or results of operations.

Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity: In November 2014, the FASB issued guidance to clarify how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The guidance also clarifies that an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Presentation of Financial Statements - Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new guidance requires a formal assessment of going concern by management based on criteria prescribed in the new guidance. We adopted this guidance as of December 31, 2016. The adoption of this guidance did not have a significant impact our financial position, results of operations, or disclosures, and no substantial doubt currently exists about the Company’s ability to continue as a going concern. 

Compensation - Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: In June 2014, the FASB issued this amendment that provides guidance on certain share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Income Statement - Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items: In January 2015, the FASB issued updated guidance that eliminates from U.S. GAAP the concept of extraordinary items. Presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained. We adopted this guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Receivables - Troubled Debt Restructurings by Creditors - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure: In August 2014, the FASB issued updated guidance for troubled debt restructurings affecting creditors that hold government guaranteed mortgage loans. The guidance requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if certain conditions are met. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued updated guidance for repurchase agreement and security lending transactions to change the accounting for repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. The amendments also require new disclosures to increase transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. We adopted accounting changes for the new guidance as of January 1, 2015, and adopted the required disclosures as of April 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Receivables - Troubled Debt Restructurings by Creditors - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure: In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: In July 2013, the FASB issued guidance to amend the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Other Expenses - Fees Paid to the Federal Government by Health Insurers: In July 2011, the FASB issued guidance on the accounting for fees owed by health insurers as mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act, which imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. A health insurer's portion of the annual fee is payable by September 30 of the applicable calendar year once the entity provides health insurance for any U.S. health risk in that year. The accounting guidance specifies that the liability for the fee should be estimated and recorded in full in the applicable calendar year in which the fee is payable. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Accounting Pronouncements Pending Adoption

Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are U.S. SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Business Combinations - Clarifying the Definition of a Business: In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to determine when a set of assets and activities is not a business. The amendments are effective for public business entities beginning after December 15, 2017, including interim periods within those periods. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Statement of Cash Flows - Restricted Cash: In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact of adoption of this guidance on our financial position, results of operations, or disclosures.

Consolidation - Interests Held through Related Parties That Are under Common Control: In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, or disclosures.

Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments: In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows.

Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current GAAP. However, the amendments require that credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and loan receivables and reinsurance recoverables (See Notes 3 and 8 for current balances of instruments in scope). We are continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and disclosures.

Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period.

The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement, rather than in paid-in capital. As a result of applying this requirement, we estimate that recognition of excess tax benefits will increase volatility in our statement of operations but will not have a significant impact on our statement of financial position, operations, or disclosures. We continue to evaluate the impact of this guidance as estimates will vary from the actual expense based on changes in actual share price.

The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and record a cumulative-effect adjustment to equity on a modified retrospective basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and financing activities. The reclassification guidance will not have a significant impact on our statement of cash flows.

The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We estimate that the election and adoption of this amendment in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Leases: In February 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee’s right to use, or to control the use of, a specified asset for a lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 for current balances of leases in scope). The leases within scope of this guidance will increase our right-of-use assets recorded on our financial position, however we estimate leases within scope of the guidance to represent less than 1% of our total assets as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures.

Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities: In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, perpetual securities and equity securities (See Note 3 for current balances of instruments in scope). We estimate that the impact of this guidance will increase volatility in our statement of operations and we are continuing to evaluate the impact of this guidance on our statement of financial position, operations, or disclosures.

Revenue from Contracts with Customers: In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Other updates related to the new guidance, which are effective as of the same reporting period, pertain to improvements in certain areas. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods. We have identified revenue in scope of this guidance to include certain revenues associated with affiliated entities in support of our operations. We estimate the revenue within scope of the guidance to represent less than 1% of our total revenues as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures.

Recent accounting guidance not discussed above is not applicable, did not have, or is not expected to have a material impact to our business.
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT AND FOREIGN INFORMATION
The Company consists of two reportable insurance business segments: Aflac Japan and Aflac U.S., both of which sell supplemental health and life insurance. Operating business segments that are not individually reportable and business activities, including reinsurance retrocession activities, not included in Aflac Japan or Aflac U.S. are included in the "Other business segments" category.

We do not allocate corporate overhead expenses to business segments. Consistent with U.S. GAAP accounting guidance for segment reporting, we evaluate and manage our business segments using a financial performance measure called pretax operating earnings. Our definition of operating earnings includes interest cash flows associated with notes payable and excludes the following items from net earnings on an after-tax basis: realized investment gains/losses (securities transactions, impairments, and the impact of derivative and hedging activities), nonrecurring items and other non-operating income (loss). We then exclude income taxes related to operations to arrive at pretax operating earnings. Information regarding operations by segment for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums
 
 
 
 
 
 
 
 
 
 
 
             Cancer
 
$
5,639

 
 
 
$
4,933

 
 
 
$
5,596

 
             Medical and other health
 
3,429

 
 
 
3,092

 
 
 
3,770

 
             Life insurance
 
4,469

 
 
 
4,021

 
 
 
4,495

 
   Net investment income
 
2,554

 
 
 
2,436

 
 
 
2,662

 
   Other income
 
40

 
 
 
31

 
 
 
32

 
               Total Aflac Japan
 
16,131

 
 
 
14,513

 
 
 
16,555

 
Aflac U.S.:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums:
 
 
 
 
 
 
 
 
 
 
 
             Accident/disability
 
2,469

 
 
 
2,391

 
 
 
2,303

 
             Cancer
 
1,299

 
 
 
1,293

 
 
 
1,279

 
             Other health
 
1,415

 
 
 
1,395

 
 
 
1,371

 
             Life insurance
 
271

 
 
 
268

 
 
 
258

 
   Net investment income
 
703

 
 
 
678

 
 
 
645

 
   Other income
 
10

 
 
 
8

 
 
 
3

 
               Total Aflac U.S.
 
6,167

 
 
 
6,033

 
 
 
5,859

 
Other business segments
 
275

 
 
 
225

 
 
 
43

 
               Total business segment revenues
 
22,573

 
 
 
20,771

 
 
 
22,457

 
Realized investment gains (losses) (1)
 
(208
)
 
 
 
55

 
 
 
171

 
Corporate
 
284

 
 
 
282

 
 
 
281

 
Intercompany eliminations
 
(199
)
 
 
 
(201
)
 
 
 
(248
)
 
Other non-operating income (loss)
 
109

 
 
 
(35
)
(2) 
 
 
67

 
           Total revenues
 
$
22,559

 
 
 
$
20,872

 
 
 
$
22,728

 

(1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses).
(In millions)
2016
 
2015
 
2014
Pretax earnings:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
3,334

 
 
 
$
3,175

 
 
 
$
3,458

 
Aflac U.S.
 
1,208

 
 
 
1,101

 
 
 
1,073

 
Other business segments
 
18

 
 
 
14

 
 
 
(2
)
 
    Total business segment pretax operating earnings
 
4,560

 
 
 
4,290

 
 
 
4,529

 
Interest expense, noninsurance operations
 
(128
)
 
 
 
(146
)
 
 
 
(198
)
 
Corporate and eliminations
 
(129
)
 
 
 
(71
)
 
 
 
(78
)
 
    Pretax operating earnings
 
4,303

 
 
 
4,073

 
 
 
4,253

 
Realized investment gains (losses) (1)
 
(208
)
 
 
 
55

 
 
 
171

 
Other non-operating income (loss)
 
(28
)
(3) 
 
 
(266
)
(2),(3) 
 
 
67

 
    Total earnings before income taxes
 
$
4,067

 
 
 
$
3,862

 
 
 
$
4,491

 
Income taxes applicable to pretax operating earnings
 
$
1,491

 
 
 
$
1,403

 
 
 
$
1,456

 
Effect of foreign currency translation on after-tax operating
earnings
 
141

 
 
 
(198
)
 
 
 
(117
)
 

(1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses).
(3) Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt

Assets as of December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Assets:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
107,858

 
 
 
$
97,646

 
 
 
$
98,525

 
Aflac U.S.
 
19,453

 
 
 
18,537

 
 
 
18,383

 
Other business segments
 
270

 
 
 
188

 
 
 
128

 
    Total business segment assets
 
127,581

 
 
 
116,371

 
 
 
117,036

 
Corporate
 
26,476

 
 
 
23,375

 
 
 
24,596

 
Intercompany eliminations
 
(24,238
)
 
 
 
(21,490
)
 
 
 
(21,905
)
 
    Total assets
 
$
129,819

 
 
 
$
118,256

 
 
 
$
119,727

 

Prior year amounts have been adjusted for the adoption of the accounting guidance on January 1, 2016 related to debt issuance costs.

Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31. Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year.
 
2016
 
2015
 
2014
Statements of Earnings:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average yen/dollar exchange rate
 
108.70

 
 
 
120.99

 
 
 
105.46

 
Yen percent strengthening (weakening)
 
11.3
%
 
 
 
(12.8
)%
 
 
 
(7.5
)%
 
Exchange effect on pretax operating earnings (in millions)
 
$
218

 
 
 
$
(288
)
 
 
 
$
(180
)
 

 
2016
 
2015
Balance Sheets:
 
 
 
 
 
 
 
Yen/dollar exchange rate at December 31
 
116.49

 
 
 
120.61

 
Yen percent strengthening (weakening)
 
3.54
%
 
 
 
(.05
)%
 
Exchange effect on total assets (in millions)
 
$
2,820

 
 
 
$
(36
)
 
Exchange effect on total liabilities (in millions)
 
3,109

 
 
 
(41
)
 


Transfers of funds from Aflac Japan: Aflac Japan makes payments to the Parent Company for management fees and to Aflac U.S. for allocated expenses and profit repatriations. Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan.
(In millions)
2016
 
2015
 
2014
Management fees
 
$
79

 
 
 
$
53

 
 
 
$
39

 
Allocated expenses
 
106

 
 
 
101

 
 
 
71

 
Profit repatriation
 
1,286

 
 
 
2,139

 
 
 
1,704

 
Total transfers from Aflac Japan
 
$
1,471

 
 
 
$
2,293

 
 
 
$
1,814

 


Property and Equipment: The costs of buildings, furniture and equipment are depreciated principally on a straight-line basis over their estimated useful lives (maximum of 50 years for buildings and 20 years for furniture and equipment). Expenditures for maintenance and repairs are expensed as incurred; expenditures for betterments are capitalized and depreciated. Classes of property and equipment as of December 31 were as follows:
(In millions)
2016
 
2015
Property and equipment:
 
 
 
 
 
 
 
Land
 
$
166

 
 
 
$
166

 
Buildings
 
421

 
 
 
400

 
Equipment and furniture
 
355

 
 
 
329

 
Total property and equipment
 
942

 
 
 
895

 
Less accumulated depreciation
 
509

 
 
 
468

 
Net property and equipment
 
$
433

 
 
 
$
427

 


Receivables: Receivables consist primarily of monthly insurance premiums due from individual policyholders or their employers for payroll deduction of premiums, net of an allowance for doubtful accounts. At December 31, 2016, $207 million, or 30.9% of total receivables, were related to Aflac Japan's operations, compared with $257 million, or 36.4%, at December 31, 2015.
v3.6.0.2
INVESTMENTS
 12 Months Ended
Dec. 31, 2016
Investments [Abstract]  
INVESTMENTS
INVESTMENTS
Net Investment Income

The components of net investment income for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Fixed-maturity securities
 
$
3,214

 
 
 
$
3,094

 
 
 
$
3,249

 
Perpetual securities
 
94

 
 
 
114

 
 
 
141

 
Equity securities
 
35

 
 
 
3

 
 
 
1

 
Other investments
 
31

 
 
 
15

 
 
 
6

 
Short-term investments and cash equivalents
 
11

 
 
 
4

 
 
 
2

 
Gross investment income
 
3,385

 
 
 
3,230

 
 
 
3,399

 
Less investment expenses
 
107

 
 
 
95

 
 
 
80

 
Net investment income
 
$
3,278

 
 
 
$
3,135

 
 
 
$
3,319

 
Investment Holdings
The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments at December 31 are shown in the following tables.
  
2016
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
22,857

 
 
 
$
3,359

 
 
 
$
160

 
 
 
$
26,056

 
Municipalities
 
246

 
 
 
29

 
 
 
8

 
 
 
267

 
Mortgage- and asset-backed securities
 
1,096

 
 
 
33

 
 
 
8

 
 
 
1,121

 
Public utilities
 
1,533

 
 
 
318

 
 
 
3

 
 
 
1,848

 
Sovereign and supranational
 
862

 
 
 
186

 
 
 
5

 
 
 
1,043

 
Banks/financial institutions
 
2,673

 
 
 
403

 
 
 
74

 
 
 
3,002

 
Other corporate
 
3,192

 
 
 
623

 
 
 
3

 
 
 
3,812

 
Total yen-denominated
 
32,459

 
 
 
4,951

 
 
 
261

 
 
 
37,149

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
148

 
 
 
10

 
 
 
0

 
 
 
158

 
Municipalities
 
894

 
 
 
142

 
 
 
8

 
 
 
1,028

 
Mortgage- and asset-backed securities
 
196

 
 
 
20

 
 
 
0

 
 
 
216

 
Public utilities
 
5,205

 
 
 
690

 
 
 
60

 
 
 
5,835

 
Sovereign and supranational
 
335

 
 
 
91

 
 
 
0

 
 
 
426

 
Banks/financial institutions
 
2,570

 
 
 
507

 
 
 
16

 
 
 
3,061

 
Other corporate
 
24,556

 
 
 
2,021

 
 
 
690

 
 
 
25,887

 
Total dollar-denominated
 
33,904

 
 
 
3,481

 
 
 
774

 
 
 
36,611

 
Total fixed maturities
 
66,363

 
 
 
8,432

 
 
 
1,035

 
 
 
73,760

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,266

 
 
 
128

 
 
 
49

 
 
 
1,345

 
Other corporate
 
189

 
 
 
24

 
 
 
0

 
 
 
213

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
51

 
 
 
24

 
 
 
0

 
 
 
75

 
Total perpetual securities
 
1,506

 
 
 
176

 
 
 
49

 
 
 
1,633

 
Equity securities:
 


 
 
 


 
 
 


 
 
 


 
      Yen-denominated
 
624

 
 
 
83

 
 
 
2

 
 
 
705

 
      Dollar-denominated
 
579

 
 
 
31

 
 
 
6

 
 
 
604

 
Total equity securities
 
1,203

 
 
 
114

 
 
 
8

 
 
 
1,309

 
Total securities available for sale
 
$
69,072

 
 
 
$
8,722

 
 
 
$
1,092

 
 
 
$
76,702

 



  
2016
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair  
Value  
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
20,702

 
 
 
$
5,338

 
 
 
$
0

 
 
 
$
26,040

 
Municipalities
 
350

 
 
 
107

 
 
 
0

 
 
 
457

 
Mortgage- and asset-backed securities
 
30

 
 
 
2

 
 
 
0

 
 
 
32

 
Public utilities
 
3,201

 
 
 
358

 
 
 
23

 
 
 
3,536

 
Sovereign and supranational
 
2,602

 
 
 
283

 
 
 
8

 
 
 
2,877

 
Banks/financial institutions
 
3,731

 
 
 
195

 
 
 
26

 
 
 
3,900

 
Other corporate
 
2,734

 
 
 
452

 
 
 
7

 
 
 
3,179

 
Total yen-denominated
 
33,350

 
 
 
6,735

 
 
 
64

 
 
 
40,021

 
Total securities held to maturity
 
$
33,350

 
 
 
$
6,735

 
 
 
$
64

 
 
 
$
40,021

 

 
 
2015
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
17,293

 
 
 
$
1,862

 
 
 
$
0

 
 
 
$
19,155

 
Municipalities
 
128

 
 
 
9

 
 
 
0

 
 
 
137

 
Mortgage- and asset-backed securities
 
322

 
 
 
33

 
 
 
0

 
 
 
355

 
Public utilities
 
1,400

 
 
 
210

 
 
 
10

 
 
 
1,600

 
Sovereign and supranational
 
791

 
 
 
180

 
 
 
0

 
 
 
971

 
Banks/financial institutions
 
2,321

 
 
 
325

 
 
 
105

 
 
 
2,541

 
Other corporate
 
3,337

 
 
 
448

 
 
 
33

 
 
 
3,752

 
Total yen-denominated
 
25,592

 
 
 
3,067

 
 
 
148

 
 
 
28,511

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
110

 
 
 
11

 
 
 
0

 
 
 
121

 
Municipalities
 
926

 
 
 
151

 
 
 
6

 
 
 
1,071

 
Mortgage- and asset-backed securities
 
200

 
 
 
27

 
 
 
0

 
 
 
227

 
Public utilities
 
5,464

 
 
 
636

 
 
 
221

 
 
 
5,879

 
Sovereign and supranational
 
331

 
 
 
105

 
 
 
0

 
 
 
436

 
Banks/financial institutions
 
2,865

 
 
 
634

 
 
 
21

 
 
 
3,478

 
Other corporate
 
25,154

 
 
 
1,774

 
 
 
1,302

 
 
 
25,626

 
Total dollar-denominated
 
35,050

 
 
 
3,338

 
 
 
1,550

 
 
 
36,838

 
Total fixed maturities
 
60,642

 
 
 
6,405

 
 
 
1,698

 
 
 
65,349

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,581

 
 
 
143

 
 
 
93

 
 
 
1,631

 
Other corporate
 
183

 
 
 
22

 
 
 
0

 
 
 
205

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
77

 
 
 
35

 
 
 
1

 
 
 
111

 
Total perpetual securities
 
1,841

 
 
 
200

 
 
 
94

 
 
 
1,947

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Yen-denominated
 
472

 
 
 
19

 
 
 
4

 
 
 
487

 
    Dollar-denominated
 
8

 
 
 
3

 
 
 
0

 
 
 
11

 
Total equity securities
 
480

 
 
 
22

 
 
 
4

 
 
 
498

 
Total securities available for sale
 
$
62,963

 
 
 
$
6,627

 
 
 
$
1,796

 
 
 
$
67,794

 


  
2015
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
20,004

 
 
 
$
3,387

 
 
 
$
0

 
 
 
$
23,391

 
Municipalities
 
341

 
 
 
74

 
 
 
0

 
 
 
415

 
Mortgage- and asset-backed securities
 
36

 
 
 
2

 
 
 
0

 
 
 
38

 
Public utilities
 
3,092

 
 
 
205

 
 
 
94

 
 
 
3,203

 
Sovereign and supranational
 
2,555

 
 
 
182

 
 
 
26

 
 
 
2,711

 
Banks/financial institutions
 
4,431

 
 
 
168

 
 
 
53

 
 
 
4,546

 
Other corporate
 
3,000

 
 
 
260

 
 
 
44

 
 
 
3,216

 
Total yen-denominated
 
33,459

 
 
 
4,278

 
 
 
217

 
 
 
37,520

 
Total securities held to maturity
 
$
33,459

 
 
 
$
4,278

 
 
 
$
217

 
 
 
$
37,520

 


The methods of determining the fair values of our investments in fixed-maturity securities, perpetual securities and equity securities are described in Note 5.

Beginning in 2015 and continuing into 2016, we increased our investment in yen-denominated publicly traded equity securities. In 2016, we also increased our investment in U.S. dollar-denominated publicly traded equity securities. These securities are classified as available for sale and carried on our balance sheet at fair value.

During 2016 and 2015, we did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During 2014, we reclassified three investments from the held-to-maturity category to the available-for-sale category as a result of the issuers being downgraded to below investment grade. At the time of the transfer, the securities had an aggregate amortized cost of $424 million and an aggregate unrealized loss of $54 million.
Contractual and Economic Maturities

The contractual maturities of our investments in fixed maturities at December 31, 2016, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
 
$
180

 
 
 
$
204

 
 
 
$
103

 
 
 
$
105

 
Due after one year through five years
 
3,441

 
 
 
3,696

 
 
 
617

 
 
 
668

 
Due after five years through 10 years
 
9,374

 
 
 
9,694

 
 
 
2,860

 
 
 
3,018

 
Due after 10 years
 
39,461

 
 
 
45,125

 
 
 
8,545

 
 
 
9,411

 
Mortgage- and asset-backed securities
 
1,144

 
 
 
1,184

 
 
 
43

 
 
 
48

 
Total fixed maturities available for sale
 
$
53,600

 
 
 
$
59,903

 
 
 
$
12,168

 
 
 
$
13,250

 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due after one year through five years
 
2,009

 
 
 
2,112

 
 
 
0

 
 
 
0

 
Due after five years through 10 years
 
1,584

 
 
 
1,737

 
 
 
0

 
 
 
0

 
Due after 10 years
 
29,727

 
 
 
36,140

 
 
 
0

 
 
 
0

 
Mortgage- and asset-backed securities
 
30

 
 
 
32

 
 
 
0

 
 
 
0

 
Total fixed maturities held to maturity
 
$
33,350

 
 
 
$
40,021

 
 
 
$
0

 
 
 
$
0

 


At December 31, 2016, the Parent Company and other business segments had portfolios of available-for-sale fixed-maturity securities totaling $595 million at amortized cost and $607 million at fair value, which are not included in the table above.

Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations with or without call or prepayment penalties.

The majority of our perpetual securities are subordinated to other debt obligations of the issuer, but rank higher than the issuer's equity securities. Perpetual securities have characteristics of both debt and equity investments, along with unique features that create economic maturity dates for the securities. Although perpetual securities have no contractual maturity date, they have stated interest coupons that were fixed at their issuance and subsequently change to a floating short-term interest rate after some period of time. The instruments are generally callable by the issuer at the time of changing from a fixed coupon rate to a new variable rate of interest, which is determined by the combination of some market index plus a fixed amount of basis points. The net effect is to create an expected maturity date for the instrument. The economic maturities of our investments in perpetual securities, which were all reported as available for sale at December 31, 2016, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Due in one year or less
 
$
87

 
 
 
$
82

 
 
 
$
0

 
 
 
$
0

 
Due after one year through five years
 
189

 
 
 
213

 
 
 
0

 
 
 
0

 
Due after 10 years
 
1,191

 
 
 
1,282

 
 
 
39

 
 
 
56

 
Total perpetual securities available for sale
 
$
1,467

 
 
 
$
1,577

 
 
 
$
39

 
 
 
$
56

 
Investment Concentrations

Our process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. We evaluate independently those factors which we believe could influence an issuer's ability to make payments under the contractual terms of our instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). We further evaluate the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income.

Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows:
 
2016
 
2015
(In millions)
Credit
Rating
 
Amortized
Cost
 
Fair
Value
 
Credit
Rating
 
Amortized
Cost
 
Fair
Value
Japan National Government(1)
A
 
$42,931
 
$51,345
 
A
 
$36,859
 
$42,025
(1)Japan Government Bonds (JGBs) or JGB-backed securities
Realized Investment Gains and Losses

Information regarding pretax realized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
 
Realized investment gains (losses):
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Gross gains from sales
$
77

 
$
224

 
$
192

 
Gross losses from sales
(134
)
(1) 
(8
)
 
(12
)
 
Net gains (losses) from redemptions (1)
186

 
52

 
34

 
Other-than-temporary impairment losses
(24
)
(1) 
(152
)
 
(31
)
 
Held to maturity:
 
 
 
 
 
 
Net gains (losses) from redemptions
0

 
0

 
1

 
Total fixed maturities
105

 
116

 
184

 
Perpetual securities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Net gains (losses) from redemptions
64

 
35

 
0

 
Other-than-temporary impairment losses
(2
)
 
0

 
0

 
Total perpetual securities
62

 
35

 
0

 
Equity securities:
 
 
 
 
 
 
Net gains (losses) from redemptions
22

 
0

 
0

 
Other-than-temporary impairment losses
(57
)
 
(1
)
 
0

 
Total equity securities
(35
)
 
(1
)
 
0

 
Derivatives and other:
 
 
 
 
 
 
Derivative gains (losses)
(255
)
 
(10
)
 
31

 
  Total derivatives and other
(255
)
 
(10
)
 
31

 
  Total realized investment gains (losses)
$
(123
)
 
$
140

 
$
215

 

(1) Primarily driven by foreign exchange

In 2016, the impairments we recorded related to fixed maturity securities were due to a change in intent to sell securities. In 2016, the impairments we recorded related to equity securities were a result of significant and/or prolonged declines in fair value, as well as expected portfolio rebalancing where we were not able to assert our ability and intent to hold certain securities until recovery.
Unrealized Investment Gains and Losses

Information regarding changes in unrealized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
Changes in unrealized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
$
2,690

 
 
 
$
(2,481
)
 
 
 
$
5,629

 
Transferred to held to maturity
 
0

 
 
 
0

 
 
 
(10
)
 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
21

 
 
 
(123
)
 
 
 
269

 
Equity securities
 
88

 
 
 
9

 
 
 
5

 
Total change in unrealized gains (losses)
 
$
2,799

 
 
 
$
(2,595
)
 
 
 
$
5,893

 


Effect on Shareholders' Equity

The net effect on shareholders' equity of unrealized gains and losses from investment securities at December 31 was as follows:
(In millions)
2016
 
2015
Unrealized gains (losses) on securities available for sale
 
$
7,630

 
 
 
$
4,831

 
Deferred income taxes
 
(2,825
)
 
 
 
(1,845
)
 
Shareholders’ equity, unrealized gains (losses) on investment securities
 
$
4,805

 
 
 
$
2,986

 


Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.
 
  
2016
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Japan government and
agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
$
3,958

 
 
 
$
160

 
 
 
$
3,958

 
 
 
$
160

 
 
 
$
0

 
 
 
$
0

 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
44

 
 
 
8

 
 
 
0

 
 
 
0

 
 
 
44

 
 
 
8

 
  Yen-denominated
 
105

 
 
 
8

 
 
 
105

 
 
 
8

 
 
 
0

 
 
 
0

 
Mortgage- and asset-
backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
713

 
 
 
8

 
 
 
713

 
 
 
8

 
 
 
0

 
 
 
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
1,265

 
 
 
60

 
 
 
790

 
 
 
32

 
 
 
475

 
 
 
28

 
  Yen-denominated
 
635

 
 
 
26

 
 
 
347

 
 
 
14

 
 
 
288

 
 
 
12

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
244

 
 
 
13

 
 
 
38

 
 
 
5

 
 
 
206

 
 
 
8

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
268

 
 
 
16

 
 
 
238

 
 
 
10

 
 
 
30

 
 
 
6

 
  Yen-denominated
 
1,521

 
 
 
100

 
 
 
636

 
 
 
19

 
 
 
885

 
 
 
81

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
10,462

 
 
 
690

 
 
 
7,252

 
 
 
346

 
 
 
3,210

 
 
 
344

 
  Yen-denominated
 
321

 
 
 
10

 
 
 
321

 
 
 
10

 
 
 
0

 
 
 
0

 
  Total fixed maturities
 
19,536

 
 
 
1,099

 
 
 
14,398

 
 
 
612

 
 
 
5,138

 
 
 
487

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
  Total perpetual securities
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
211

 
 
 
6

 
 
 
211

 
 
 
6

 
 
 
0

 
 
 
0

 
  Yen-denominated
 
49

 
 
 
2

 
 
 
49

 
 
 
2

 
 
 
0

 
 
 
0

 
  Total equity securities
 
260

 
 
 
8

 
 
 
260

 
 
 
8

 
 
 
0

 
 
 
0

 
  Total
 
$
20,275

 
 
 
$
1,156

 
 
 
$
14,743

 
 
 
$
621

 
 
 
$
5,532

 
 
 
$
535

 




  
2015
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
$
80

 
 
 
$
6

 
 
 
$
80

 
 
 
$
6

 
 
 
$
0

 
 
 
$
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
2,127

 
 
 
221

 
 
 
1,689

 
 
 
132

 
 
 
438

 
 
 
89

 
  Yen-denominated
 
1,487

 
 
 
104

 
 
 
1,062

 
 
 
73

 
 
 
425

 
 
 
31

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
580

 
 
 
26

 
 
 
385

 
 
 
13

 
 
 
195

 
 
 
13

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
366

 
 
 
21

 
 
 
348

 
 
 
11

 
 
 
18

 
 
 
10

 
  Yen-denominated
 
2,350

 
 
 
158

 
 
 
1,147

 
 
 
14

 
 
 
1,203

 
 
 
144

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
13,430

 
 
 
1,302

 
 
 
11,068

 
 
 
770

 
 
 
2,362

 
 
 
532

 
  Yen-denominated
 
1,151

 
 
 
77

 
 
 
343

 
 
 
5

 
 
 
808

 
 
 
72

 
  Total fixed maturities
 
21,571

 
 
 
1,915

 
 
 
16,122

 
 
 
1,024

 
 
 
5,449

 
 
 
891

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
6

 
 
 
1

 
 
 
0

 
 
 
0

 
 
 
6

 
 
 
1

 
  Yen-denominated
 
645

 
 
 
93

 
 
 
216

 
 
 
12

 
 
 
429

 
 
 
81

 
  Total perpetual securities
 
651

 
 
 
94

 
 
 
216

 
 
 
12

 
 
 
435

 
 
 
82

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total equity securities
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total
 
$
22,413

 
 
 
$
2,013

 
 
 
$
16,529

 
 
 
$
1,040

 
 
 
$
5,884

 
 
 
$
973

 


Analysis of Securities in Unrealized Loss Positions

The unrealized losses on our fixed income or perpetual securities investments have been primarily related to general market changes in interest rates, foreign exchange rates, and/or the levels of credit spreads rather than specific concerns with the issuer's ability to pay interest and repay principal. The unrealized losses on our investments in equity securities are primarily related to foreign exchange rates, general market conditions which reflect prospects for the economy as a whole, or specific information pertaining to an industry or an individual company.

For any significant declines in fair value of our fixed income or perpetual securities, we perform a more focused review of the related issuers' credit profile. For corporate issuers, we evaluate their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, we analyze all sources of credit support, including issuer-specific factors. We utilize information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. We also consider ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security we own including seniority in the issuer's capital structure, covenant predictions, or other relevant features. From these reviews, we evaluate the issuers' continued ability to service our investment through payment of interest and principal.

For any significant declines in fair value of our equity securities, we review the severity of the security’s decline in fair value coupled with the length of time the fair value of the security has been below cost. We also perform a more focused review of the financial condition and near-term prospects of the issuer as well as general market conditions reflecting the prospects for the economy as a whole, and determine whether we have the intent to hold the securities until they recover in value.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturities and perpetual securities are expected to diminish as investments near maturity. Based on our credit analysis, we believe that the issuers of our fixed maturity and perpetual security investments in the sectors shown in the table above have the ability to service their obligations to us.
Variable Interest Entities (VIEs)

As a condition to our involvement or investment in a VIE, we enter into certain protective rights and covenants that preclude changes in the structure of the VIE that would alter the creditworthiness of our investment or our beneficial interest in the VIE.

For those VIEs other than certain unit trust structures, our involvement is passive in nature. We are not, nor have we been, required to purchase any securities issued in the future by these VIEs.

Our ownership interest in VIEs is limited to holding the obligations issued by them. We have no direct or contingent obligations to fund the limited activities of these VIEs, nor do we have any direct or indirect financial guarantees related to the limited activities of these VIEs. We have not provided any assistance or any other type of financing support to any of the VIEs we invest in, nor do we have any intention to do so in the future. For those VIEs in which we hold debt obligations, the weighted-average lives of our notes are very similar to the underlying collateral held by these VIEs where applicable.

We also utilize unit trust structures in our Aflac Japan segment to invest in various asset classes. As the sole investor of these VIEs, we are required to consolidate these entities under U.S. GAAP.

Our risk of loss related to our interests in any of our VIEs is limited to the carrying value of the related investments held in the VIE.

VIEs - Consolidated

The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported as of December 31.
Investments in Consolidated Variable Interest Entities
  
2016
 
2015
(In millions)
Cost or Amortized
Cost
 
Fair
Value
 
Cost or Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,168

 
 
 
$
4,982

 
 
 
$
3,739

 
 
 
$
4,554

 
Perpetual securities, available for sale
 
237

 
 
 
208

 
 
 
255

 
 
 
228

 
Equity securities
 
972

 
 
 
1,044

 
 
 
363

 
 
 
363

 
Other investments
 
819

 
 
 
789

 
 
 
0

 
 
 
0

 
Other assets
 
127

 
 
 
127

 
 
 
102

 
 
 
102

 
Total assets of consolidated VIEs
 
$
6,323

 
 
 
$
7,150

 
 
 
$
4,459

 
 
 
$
5,247

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 
Total liabilities of consolidated VIEs
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 


We are substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, we have the power to direct the activities of the variable interest entity that most significantly impact the entity's economic performance and are therefore considered to be the primary beneficiary of the VIEs that we consolidate. We also participate in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency, and/or CDS, as appropriate, and utilizing the cash flows from these securities to service our investment. Neither we nor any of our creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, we are not a direct counterparty to the swap contracts and have no control over them. Our loss exposure to these VIEs is limited to our original investment. Our consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of our investments in unit trust structures, the underlying collateral assets and funding of our consolidated VIEs are generally static in nature and the underlying collateral and the reference corporate entities covered by any CDS contracts were all investment grade at the time of issuance.

Investments in Unit Trust Structures

We invest through unit trust structures in yen-denominated public equity securities, U.S. dollar-denominated public equity securities, bank loans, commercial mortgage loans, and middle market loans in which we are the only investor, requiring us to consolidate these trusts under U.S. GAAP. The yen-denominated and U.S. dollar-denominated equity securities are classified as available-for-sale in the financial statements. As of December 31, 2016, the amortized cost and fair value of these equity securities was $972 million and $1.0 billion, compared with amortized cost and fair value of $363 million as of December 31, 2015. The bank loans are classified as available-for-sale fixed-maturity securities in the financial statements. As of December 31, 2016, the amortized cost and fair value of our bank loan investments was $2.0 billion and $1.9 billion, respectively, compared with an amortized cost and fair value of $1.4 billion as of December 31, 2015. The commercial mortgage loans, all of which were purchased in 2016, are classified as held for investment and reflected in other investments on the consolidated balance sheets. As of December 31, 2016, the amortized cost of these loans, net of loan loss reserves, was $745 million. The middle market loans, which were purchased in 2016, are classified as held for investment and reflected in other investments on the consolidated balance sheets. As of December 31, 2016, the amortized cost of these loans, net of loan loss reserves, was $74 million.

VIEs - Not Consolidated

The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported as of December 31.

Investments in Variable Interest Entities Not Consolidated
 
2016
 
2015
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,729

 
 
 
$
5,261

 
 
 
$
4,731

 
 
 
$
5,093

 
Perpetual securities, available for sale
 
172

 
 
 
200

 
 
 
249

 
 
 
253

 
Fixed maturities, held to maturity
 
2,563

 
 
 
2,948

 
 
 
2,477

 
 
 
2,636

 
Other investments
 
1

 
 
 
1

 
 
 
0

 
 
 
0

 
Total investments in VIEs not consolidated
 
$
7,465

 
 
 
$
8,410

 
 
 
$
7,457

 
 
 
$
7,982

 

Prior year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to consolidations.

The VIEs that we are not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. We do not have the power to direct the activities that most significantly impact the entity's economic performance, nor do we have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, we are not the primary beneficiary of these VIEs and are therefore not required to consolidate them. These VIE investments comprise securities from 145 separate issuers with an average credit rating of BBB as of December 31, 2016, compared with 169 separate issuers with an average credit rating of BBB as of December 31, 2015.

Loans and Loan Receivables

We classify our loans and loan receivables as held-for-investment and include them in the other investments line on the consolidated balance sheets. We carry them on the balance sheet at amortized cost less an estimated allowance for loan losses. Our loan allowance for losses is established using both specific and general allowances. The specific allowance is used on an individual loan basis for those impaired loans where we expect to incur a loss. The general allowance is used for loans grouped by similar risk characteristics where a loan-specific or market-specific risk has not been identified, but for which we anticipate to incur a loss.

Middle Market Loans

As of December 31, 2016 and 2015, our investment in middle market loan receivables, net of loan loss reserves and inclusive of those loans held in unit trust structures as discussed above, was $319 million and $118 million, respectively. These balances include an unfunded amount of $91 million and $53 million as of December 31, 2016 and 2015, respectively, that was reflected in other liabilities on the consolidated balance sheets. As of December 31, 2016 and 2015, we had no loans that were past due in regards to principal and/or interest payments. Additionally, we held no loans that were on nonaccrual status or considered impaired as of December 31, 2016 and 2015. Our middle market loan allowance for losses was immaterial as of December 31, 2016 and 2015. Our middle market loan allowance for losses is established using a general allowance methodology by applying industry average long term historical loss rates to our outstanding middle market loan balances. We had no troubled debt restructurings during December 31, 2016 and 2015.

As of December 31, 2016, we had commitments of $779 million to fund potential future loan originations related to this investment program, inclusive of loans held in unit trust structures. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria.

Commercial Mortgage Loans

In 2016, we began funding investments in commercial mortgage loans. As of December 31, 2016, the amortized cost of these investments, net of loan loss reserves and inclusive of those loans held in unit trust structures as discussed above, was $855 million. We had no loans that were past due in regards to principal and/or interest payments, and we held no loans that were on nonaccrual status or considered impaired as of December 31, 2016. Our commercial mortgage loan allowance for losses was immaterial as of December 31, 2016. We had no troubled debt restructurings during the year ended December 31, 2016.

As of December 31, 2016, we had $19 million in outstanding commitments to fund commercial mortgage loans, inclusive of loans held in unit trust structures. These commitments are contingent on the final underwriting and due diligence to be performed.
Securities Lending and Pledged Securities

We lend fixed-maturity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. Our security lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be 102% or more of the fair value of the loaned securities. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral.

Details of our securities lending activities as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
2016
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Public utilities
$
62

 
$
0

 
 
$
62

Banks/financial institutions
34

 
0

 
 
34

Other corporate
430

 
0

 
 
430

          Total borrowings
$
526

 
$
0

 
 
$
526

Gross amount of recognized liabilities for securities lending transactions
 
$
526

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0

(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Securities Lending Transactions Accounted for as Secured Borrowings
2015
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Japan government and agencies
$
0

 
$
499

 
 
$
499

Public utilities
108

 
0

 
 
108

Banks/financial institutions
13

 
0

 
 
13

Other corporate
321

 
0

 
 
321

          Total borrowings
$
442

 
$
499

 
 
$
941

Gross amount of recognized liabilities for securities lending transactions
 
$
941

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0


(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

We did not have any repurchase agreements or repurchase-to-maturity transactions outstanding as of December 31, 2016 and 2015, respectively.

Certain fixed-maturity securities can be pledged as collateral as part of derivative transactions, or pledged to support state deposit requirements on certain investment programs. For additional information regarding pledged securities related to derivative transactions, see Note 4.

At December 31, 2016, debt securities with a fair value of $17 million were on deposit with regulatory authorities in the United States (including U.S. territories) and Japan. We retain ownership of all securities on deposit and receive the related investment income.

For general information regarding our investment accounting policies, see Note 1.
v3.6.0.2
DERIVATIVE INSTRUMENTS
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS
Our freestanding derivative financial instruments have historically consisted of: (1) foreign currency swaps and credit default swaps that are associated with investments in special-purpose entities, including VIEs where we are the primary beneficiary; (2) foreign currency forwards and options used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio; (3) foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; (4) swaps associated with our notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with certain senior notes and our subordinated debentures; and (5) options on interest rate swaps (or interest rate swaptions) and futures used to hedge interest rate risk for certain available-for-sale securities. We do not use derivative financial instruments for trading purposes, nor do we engage in leveraged derivative transactions. Some of our derivatives are designated as cash flow hedges, fair value hedges or net investment hedges; however, other derivatives do not qualify for hedge accounting or we elect not to designate them as an accounting hedge. We utilize a net investment hedge to mitigate foreign exchange exposure resulting from our net investment in Aflac Japan. In addition to designating derivatives as hedging instruments, we have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and loans) as non-derivative hedging instruments for this net investment hedge.

Derivative Types

We enter into foreign currency swaps pursuant to which we exchange an initial principal amount in one currency for an initial principal amount of another currency, with an agreement to re-exchange the currencies at a future date at an agreed upon exchange rate. There may also be periodic exchanges of payments at specified intervals based on the agreed upon rates and notional amounts. Foreign currency swaps are used primarily in the consolidated VIEs in our Aflac Japan portfolio to convert foreign-denominated cash flows to yen, the functional currency of Aflac Japan, in order to minimize cash flow fluctuations. We also use foreign currency swaps to economically convert certain of our dollar-denominated senior note and subordinated debenture principal and interest obligations into yen-denominated obligations.

Foreign currency forwards and options are executed for the Aflac Japan segment in order to hedge the currency risk on the carrying value of certain U.S. dollar-denominated investments. The maturities of these forwards and options are typically two years or less. In forward transactions, Aflac Japan agrees with another party to buy a fixed amount of yen and sell a corresponding amount of U.S. dollars at a specified future date. Aflac Japan also executes foreign currency option transactions in a collar strategy, where Aflac Japan agrees with another party to simultaneously purchase a fixed amount of U.S. dollar put options and sell U.S. dollar call options. The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar). The foreign currency forwards and options are used in fair value hedging relationships to mitigate the foreign exchange risk associated with U.S. dollar-denominated investments supporting yen-denominated liabilities.

Foreign currency forwards and options are also used to hedge the currency risk associated with the net investment in Aflac Japan. In these forward transactions, Aflac agrees with another party to buy a fixed amount of U.S. dollars and sell a corresponding amount of yen at a specified future date. In the option transactions, we use a combination of foreign currency options to protect expected future cash flows by simultaneously purchasing yen put options (options that protect against a weakening yen) and selling yen call options (options that limit participation in a strengthening yen). The combination of these two actions results in no net premium being paid (i.e. a costless or zero-cost collar).

The only CDS that we currently hold relates to components of an investment in a VIE and is used to assume credit risk related to an individual security. This CDS contract entitles the consolidated VIE to receive periodic fees in exchange for an obligation to compensate the derivative counterparties should the referenced security issuer experience a credit event, as defined in the contract.

Interest rate swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. No cash or principal payments are exchanged at the inception of the contract. Interest rate swaps are primarily used to convert interest receipts on floating-rate fixed-maturity securities contracts to fixed rates. These derivatives are predominantly used to better match cash receipts from assets with cash disbursements required to fund liabilities.

Interest rate swaptions are options on interest rate swaps. Interest rate collars are combinations of two swaption positions and are executed in order to hedge certain U.S. dollar-denominated available-for-sale securities that are held in the Aflac Japan segment. We use collars to protect against significant changes in the fair value associated with our U.S. dollar-denominated available-for-sale securities due to interest rates. In order to maximize the efficiency of the collars while minimizing cost, we set the strike price on each collar so that the premium paid for the ‘payer leg’ is offset by the premium received for having sold the ‘receiver leg’.

Periodically, we may enter into other derivative transactions depending on general economic conditions.

Derivative Balance Sheet Classification
The tables below summarize the balance sheet classification of our derivative fair value amounts, as well as the gross asset and liability fair value amounts, at December 31. The fair value amounts presented do not include income accruals. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and are not reflective of exposure or credit risk.
 
2016
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
75

 
 
 
$
(10
)
 
 
 
$
0

 
 
 
$
(10
)
 
Total cash flow hedges
 
75

 
 
 
(10
)
 
 
 
0

 
 
 
(10
)
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
10,965

 
 
 
(759
)
 
 
 
0

 
 
 
(759
)
 
Foreign currency options
 
4,224

 
 
 
(30
)
 
 
 
2

 
 
 
(32
)
 
Total fair value hedges
 
15,189

 
 
 
(789
)
 
 
 
2

 
 
 
(791
)
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
209

 
 
 
3

 
 
 
5

 
 
 
(2
)
 
Foreign currency options
 
843

 
 
 
24

 
 
 
41

 
 
 
(17
)
 
Total net investment hedge
 
1,052

 
 
 
27

 
 
 
46

 
 
 
(19
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
6,266

 
 
 
270

 
 
 
490

 
 
 
(220
)
 
Foreign currency forwards
 
21,218

 
 
 
(289
)
 
 
 
667

 
 
 
(956
)
 
Foreign currency options
 
41

 
 
 
(2
)
 
 
 
0

 
 
 
(2
)
 
Credit default swaps
 
86

 
 
 
2

 
 
 
2

 
 
 
0

 
Total non-qualifying strategies
 
27,611

 
 
 
(19
)
 
 
 
1,159

 
 
 
(1,178
)
 
Total derivatives
 
$
43,927

 
 
 
$
(791
)
 
 
 
$
1,207

 
 
 
$
(1,998
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
18,329

 
 
 
$
1,207

 
 
 
$
1,207

 
 
 
$
0

 
Other liabilities
 
25,598

 
 
 
(1,998
)
 
 
 
0

 
 
 
(1,998
)
 
Total derivatives
 
$
43,927

 
 
 
$
(791
)
 
 
 
$
1,207

 
 
 
$
(1,998
)
 

 
 
2015
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
75

 
 
 
$
(15
)
 
 
 
$
0

 
 
 
$
(15
)
 
Total cash flow hedges
 
75

 
 
 
(15
)
 
 
 
0

 
 
 
(15
)
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
13,080

 
 
 
45

 
 
 
88

 
 
 
(43
)
 
Foreign currency options
 
1,250

 
 
 
0

 
 
 
0

 
 
 
0

 
Total fair value hedges
 
14,330

 
 
 
45

 
 
 
88

 
 
 
(43
)
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
763

 
 
 
13

 
 
 
19

 
 
 
(6
)
 
    Foreign currency options
 
266

 
 
 
(3
)
 
 
 
5

 
 
 
(8
)
 
Total net investment hedge
 
1,029

 
 
 
10

 
 
 
24

 
 
 
(14
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
6,599

 
 
 
264

 
 
 
563

 
 
 
(299
)
 
Foreign currency forwards
 
11

 
 
 
0

 
 
 
0

 
 
 
0

 
Credit default swaps
 
83

 
 
 
1

 
 
 
1

 
 
 
0

 
Total non-qualifying strategies
 
6,693

 
 
 
265

 
 
 
564

 
 
 
(299
)
 
Total derivatives
 
$
22,127

 
 
 
$
305

 
 
 
$
676

 
 
 
$
(371
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
11,413

 
 
 
$
676

 
 
 
$
676

 
 
 
$
0

 
Other liabilities
 
10,714

 
 
 
(371
)
 
 
 
0

 
 
 
(371
)
 
Total derivatives
 
$
22,127

 
 
 
$
305

 
 
 
$
676

 
 
 
$
(371
)
 


The derivative notional amount increased from 2015 to 2016 primarily due to an increase in non-qualifying strategies. The increase in non-qualifying strategies related to entering into longer duration foreign currency forwards designated as fair value hedges that resulted in the dedesignation of existing foreign currency forwards. We also entered into offsetting foreign currency forwards for the remaining term of the foreign currency forwards that were dedesignated, both of which are included in the notional amounts presented for non-qualifying strategies.

Cash Flow Hedges
Certain of our consolidated VIEs have foreign currency swaps that qualify for hedge accounting treatment. For those that have qualified, we have designated the derivative as a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset (“cash flow” hedge). We expect to continue this hedging activity for a weighted-average period of approximately nine years. The remaining derivatives in our consolidated VIEs that have not qualified for hedge accounting are included in "non-qualifying strategies."
Fair Value Hedges
We designate and account for certain foreign currency forwards and options as fair value hedges when they meet the requirements for hedge accounting. These foreign currency forwards and options hedge the foreign currency exposure of certain U.S. dollar-denominated investments. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the foreign currency forwards related to the changes in the difference between the spot rate and the forward price is excluded from the assessment of hedge effectiveness. The change in fair value of the foreign currency option related to the time value of the option is excluded from the assessment of hedge effectiveness.

We designate and account for interest rate swaptions as fair value hedges when they meet the requirements for hedge accounting. These interest rate swaptions hedge the interest rate exposure of certain U.S. dollar-denominated fixed maturity securities within the investment portfolio of our Aflac Japan segment. We recognize gains and losses on these derivatives and the related hedged items in current earnings within derivative and other gains (losses). The change in the fair value of the interest rate swaptions related to the time value of the option is excluded from the assessment of hedge effectiveness.

The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges for the years ended December 31.

Fair Value Hedging Relationships
(In millions)
 
 
Hedging Derivatives
 
Hedged Items
 
 
Hedging Derivatives
Hedged Items
 
Total
Gains (Losses)
 
Gains (Losses)
Excluded from Effectiveness Testing
 
Gains (Losses)
Included in Effectiveness Testing
 
 Gains (Losses)
 
Ineffectiveness
Recognized for Fair Value Hedge
2016:
 
 
 
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity securities and equity securities
 
$
207

 
$
(338
)
 
$
545

 
$
(566
)
 
$
(21
)
Foreign currency
options
Fixed-maturity securities
 
(95
)
 
(18
)
 
(77
)
 
70

 
(7
)
2015:
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
(133
)
 
$
(136
)
 
$
3

 
$
(5
)
 
$
(2
)
Foreign currency options
Fixed-maturity securities
 
(4
)
 
3

 
(7
)
 
7

 
0

Interest rate
swaptions
Fixed-maturity securities
 
(95
)
 
19

 
(114
)
 
99

 
(15
)
2014:
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
(1,835
)
 
$
(38
)
 
$
(1,797
)
 
$
1,819

 
$
22

Foreign currency options
Fixed-maturity securities
 
(41
)
 
(4
)
 
(37
)
 
38

 
1

Interest rate
swaptions
Fixed-maturity securities
 
(318
)
 
(36
)
 
(282
)
 
316

 
34



Net Investment Hedge

Our primary exposure to be hedged is our net investment in Aflac Japan, which is affected by changes in the yen/dollar exchange rate. To mitigate this exposure, we have designated the Parent Company's yen-denominated liabilities (see Note 9) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our net investment in Aflac Japan.

We used foreign exchange forwards and options to hedge foreign exchange risk on 114.0 billion yen of profit repatriation received from Aflac Japan in 2016. As of December 31, 2016, we had entered into foreign exchange forwards and options as part of a hedge on 122.6 billion yen of future profit repatriation.

Our net investment hedge was effective for the years ended December 31, 2016, 2015 and 2014.
Non-qualifying Strategies
For our derivative instruments in consolidated VIEs that do not qualify for hedge accounting treatment, all changes in their fair value are reported in current period earnings within derivative and other gains (losses). The amount of gain or loss recognized in earnings for our VIEs is attributable to the derivatives in those investment structures. While the change in value of the swaps is recorded through current period earnings, the change in value of the available-for-sale fixed-maturity or perpetual securities associated with these swaps is recorded through other comprehensive income.
We have cross-currency interest rate swap agreements related to our $400 million senior notes due February 2017, $550 million senior notes due March 2020, $350 million senior notes due February 2022, $700 million senior notes due June 2023, $750 million senior notes due November 2024, $450 million senior notes due March 2025, and $500 million subordinated debentures due September 2052. Changes in the values of these swaps are recorded through current period earnings. For additional information regarding these swaps, see Note 9.
In the fourth quarter of 2016, we began using foreign exchange forwards to mitigate the currency risk of our U.S. dollar-denominated middle market loan portfolio held within the Aflac Japan segment. As of December 31, 2016, the outstanding derivative notional amounts associated with these U.S. dollar-denominated middle market loans was approximately $109 million. In the third quarter of 2016, we began using foreign exchange forwards to mitigate the currency risk of our U.S. dollar-denominated commercial loan portfolio held within the Aflac Japan segment. As of December 31, 2016, the outstanding derivative notional amounts associated with these U.S. dollar-denominated commercial mortgage loans was approximately $710 million. We have not elected to apply hedge accounting for these middle market loans and commercial mortgage loans. The change in fair value of the foreign exchange forwards and the foreign currency remeasurement of the middle market loans and commercial mortgage loans are each recorded through current period earnings, and generally offset each other.
Impact of Derivatives and Hedging Instruments

The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments for the years ended December 31.
 
2016
2015
2014
(In millions)
Realized Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Realized Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Realized
Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Qualifying hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
$
1

 
 
$
3

 
 
$
0

 
 
$
0

 
 
$
(2
)
 
 
$
(17
)
 
  Total cash flow hedges
 
1

 
 
3

 
 
0

 
 
0

 
 
(2
)
 
 
(17
)
 
  Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency forwards (2)
 
(359
)
 
 
0

 
 
(138
)
 
 
0

 
 
(16
)
 
 
0

 
       Foreign currency options (2)
 
(25
)
 
 
0

 
 
3

 
 
0

 
 
(3
)
 
 
0

 
       Interest rate swaptions (2)
 
0

 
 
0

 
 
4

 
 
0

 
 
(2
)
 
 
0

 
  Total fair value hedges
 
(384
)
 
 
0

 
 
(131
)
 
 
0

 
 
(21
)
 
 
0

 
  Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-derivative hedging
instruments
 
0

 
 
0

 
 
0

 
 
3

 
 
0

 
 
39

 
       Foreign currency forwards
 
0

 
 
(118
)
 
 
0

 
 
4

 
 
0

 
 
89

 
       Foreign currency options
 
0

 
 
73

 
 
0

 
 
0

 
 
0

 
 
(3
)
 
   Total net investment hedge
 
0

 
 
(45
)
 
 
0

 
 
7

 
 
0

 
 
125

 
  Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
117

 
 
0

 
 
16

 
 
0

 
 
151

 
 
0

 
       Foreign currency forwards
 
9

 
 
0

 
 
100

 
 
0

 
 
(11
)
 
 
0

 
       Credit default swaps
 
2

 
 
0

 
 
1

 
 
0

 
 
3

 
 
0

 
       Interest rate swaps
 
0

 
 
0

 
 
5

 
 
0

 
 
(1
)
 
 
0

 
       Interest rate swaptions
 
0

 
 
0

 
 
0

 
 
0

 
 
1

 
 
0

 
       Futures
 
0

 
 
0

 
 
(1
)
 
 
0

 
 
(89
)
 
 
0

 
  Total non- qualifying strategies
 
128

 
 
0

 
 
121

 
 
0

 
 
54

 
 
0

 
          Total
 
$
(255
)
 
 
$
(42
)
 
 
$
(10
)
 
 
$
7

 
 
$
31

 
 
$
108

 
(1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).
(2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)

We reclassified a de minimus amount from accumulated other comprehensive income (loss) into earnings related to our designated cash flow hedges for the years ended December 31, 2016, 2015 and 2014, respectively. There was no gain or loss reclassified from accumulated other comprehensive income (loss) into earnings related to the net investment hedge for the years ended December 31, 2016, 2015 and 2014. As of December 31, 2016, deferred gains and losses on derivative instruments recorded in accumulated other comprehensive income that are expected to be reclassified to earnings during the next twelve months were immaterial.

Credit Risk Assumed through Derivatives

For the foreign currency and credit default swaps associated with our VIE investments for which we are the primary beneficiary, we bear the risk of foreign exchange loss due to counterparty default even though we are not a direct counterparty to those contracts. We are a direct counterparty to the foreign currency swaps that we have entered into in connection with certain of our senior notes, subordinated debentures, and Samurai notes; foreign currency forwards; foreign currency options; and interest rate swaptions, and therefore we are exposed to credit risk in the event of nonperformance by the counterparties in those contracts. The risk of counterparty default for our VIE swaps, foreign currency swaps, certain foreign currency forwards, foreign currency options and interest rate swaptions is mitigated by collateral posting requirements that counterparties to those transactions must meet. As of December 31, 2016, there were 16 counterparties to our derivative agreements, with five comprising 63% of the aggregate notional amount. The counterparties to these derivatives are financial institutions with the following credit ratings as of December 31:
 
2016
2015
(In millions)
Notional Amount
of Derivatives
Asset Derivatives
Fair Value
Liability Derivatives
Fair Value
Notional Amount
of Derivatives
Asset Derivatives
Fair Value
Liability Derivatives
Fair Value
Counterparties' credit rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AA
 
$
6,844

 
 
$
247

 
 
$
(308
)
 
 
$
2,187

 
 
$
166

 
 
$
(35
)
 
A
 
36,019

 
 
900

 
 
(1,621
)
 
 
19,940

 
 
510

 
 
(336
)
 
BBB
 
1,064

 
 
60

 
 
(69
)
 
 
0

 
 
0

 
 
0

 
Total
 
$
43,927

 
 
$
1,207

 
 
$
(1,998
)
 
 
$
22,127

 
 
$
676

 
 
$
(371
)
 


We engage in derivative transactions directly with unaffiliated third parties under International Swaps and Derivatives Association, Inc. (ISDA) agreements and other documentation. Most of the ISDA agreements also include Credit Support Annexes (CSAs) provisions, which generally provide for two-way collateral postings at the first dollar of exposure. We mitigate the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value while generally requiring that collateral be posted at the outset of the transaction. In addition, a significant portion of the derivative transactions have provisions that give the counterparty the right to terminate the transaction upon a downgrade of Aflac’s financial strength rating. The actual amount of payments that we could be required to make, depends on market conditions, the fair value of outstanding affected transactions, and other factors prevailing at and after the time of the downgrade.

Collateral posted by us to third parties for derivative transactions can generally be repledged or resold by the counterparties. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position by counterparty was approximately $1.2 billion and $26 million as of December 31, 2016 and 2015, respectively. We are generally allowed to sell or repledge collateral obtained from our derivative counterparties, although we do not typically exercise such rights. (See the Offsetting tables below for collateral posted or received as of the reported balance sheet dates.)

Offsetting of Financial Instruments and Derivatives

Some of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Parent Company or Aflac and its respective counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements with the master netting arrangements generally provide that the Company will receive or pledge financial collateral at the first dollar of exposure.

We have securities lending agreements with unaffiliated financial institutions that post collateral to us in return for the use of our fixed maturity securities (see Note 3). When we have entered into securities lending agreements with the same counterparty, the agreements generally provide for net settlement in the event of default by the counterparty. This right of set-off allows us to keep and apply collateral received if the counterparty failed to return the securities borrowed from us as contractually agreed. For additional information on the Company's accounting policy for securities lending, see
Note 1.

The tables below summarize our derivatives and securities lending transactions as of December 31, and as reflected in the tables, in accordance with U.S. GAAP, our policy is to not offset these financial instruments in the Consolidated Balance Sheets.

Offsetting of Financial Assets and Derivative Assets
2016
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Assets
 
Gross Amount
Offset in
Balance Sheet
 
Net Amount of Assets Presented
 in Balance Sheet
 
Financial Instruments
 
Securities
Collateral
 
Cash Collateral Received
 
Net Amount
Derivative
  assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      assets subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
$
1,080

 
 
 
$
0

 
 
 
$
1,080

 
 
 
$
(698
)
 
 
$
0

 
 
$
(382
)
 
 
 
$
0

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
127

 
 
 

 
 
 
127

 
 
 

 
 


 
 

 
 
 
127

 
    Total derivative
      assets
 
1,207

 
 
 
0

 
 
 
1,207

 
 
 
(698
)
 
 
0

 
 
(382
)
 
 
 
127

 
Securities lending
   and similar
   arrangements
 
513

 
 
 
0

 
 
 
513

 
 
 
0

 
 
0

 
 
(513
)
 
 
 
0

 
    Total
 
$
1,720

 
 
 
$
0

 
 
 
$
1,720

 
 
 
$
(698
)
 
 
$
0

 
 
$
(895
)
 
 
 
$
127

 


2015
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Assets
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Assets Presented in Balance Sheet
 
Financial
Instruments
Securities Collateral
Cash Collateral Received
 
Net Amount
Derivative
  assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      assets subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
$
574

 
 
 
$
0

 
 
 
$
574

 
 
 
$
(51
)
 
 
$
(190
)
 
 
$
(326
)
 
 
 
$
7

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
102

 
 
 
 
 
 
 
102

 
 
 


 
 


 
 


 
 
 
102

 
    Total derivative
      assets
 
676

 
 
 
0

 
 
 
676

 
 
 
(51
)
 
 
(190
)
 
 
(326
)
 
 
 
109

 
Securities lending
   and similar
   arrangements
 
921

 
 
 
0

 
 
 
921

 
 
 
0

 
 
0

 
 
(921
)
 
 
 
0

 
    Total
 
$
1,597

 
 
 
$
0

 
 
 
$
1,597

 
 
 
$
(51
)
 
 
$
(190
)
 
 
$
(1,247
)
 
 
 
$
109

 




Offsetting of Financial Liabilities and Derivative Liabilities
2016
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Liabilities
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Liabilities Presented in Balance Sheet
 
Financial Instruments
 
Securities Collateral
 
Cash Collateral Pledged
 
Net Amount
Derivative
  liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      liabilities subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
$
(1,852
)
 
 
 
$
0

 
 
 
$
(1,852
)
 
 
 
$
698

 
 
$
1,130

 
 
$
21

 
 
 
$
(3
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(146
)
 
 
 
 
 
 
 
(146
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(146
)
 
    Total derivative
      liabilities
 
(1,998
)
 
 
 
0

 
 
 
(1,998
)
 
 
 
698

 
 
1,130

 
 
21

 
 
 
(149
)
 
Securities lending
   and similar
   arrangements
 
(526
)
 
 
 
0

 
 
 
(526
)
 
 
 
513

 
 
0

 
 
0

 
 
 
(13
)
 
    Total
 
$
(2,524
)
 
 
 
$
0

 
 
 
$
(2,524
)
 
 
 
$
1,211

 
 
$
1,130

 
 
$
21

 
 
 
$
(162
)
 


2015
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Liabilities
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Liabilities Presented in Balance Sheet
 
Financial Instruments
 
Securities Collateral
 
Cash Collateral Pledged
 
Net Amount
Derivative
  liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      liabilities subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
$
(78
)
 
 
 
$
0

 
 
 
$
(78
)
 
 
 
$
51

 
 
$
18

 
 
$
3

 
 
 
$
(6
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(293
)
 
 
 
 
 
 
 
(293
)
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(293
)
 
    Total derivative
      liabilities
 
(371
)
 
 
 
0

 
 
 
(371
)
 
 
 
51

 
 
18

 
 
3

 
 
 
(299
)
 
Securities lending
   and similar
   arrangements
 
(941
)
 
 
 
0

 
 
 
(941
)
 
 
 
921

 
 
0

 
 
0

 
 
 
(20
)
 
    Total
 
$
(1,312
)
 
 
 
$
0

 
 
 
$
(1,312
)
 
 
 
$
972

 
 
$
18

 
 
$
3

 
 
 
$
(319
)
 



For additional information on our financial instruments, see the accompanying Notes 1, 3 and 5.
v3.6.0.2
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
Fair Value Hierarchy

U.S. GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. Level 1 valuations reflect quoted market prices for identical assets or liabilities in active markets. Level 2 valuations reflect quoted market prices for similar assets or liabilities in an active market, quoted market prices for identical or similar assets or liabilities in non-active markets or model-derived valuations in which all significant valuation inputs are observable in active markets. Level 3 valuations reflect valuations in which one or more of the significant inputs are not observable in an active market.

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis as of December 31.
  
2016
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale, carried at
fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
25,387

 
 
 
$
827

 
 
 
$
0

 
 
 
$
26,214

 
Municipalities
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
Mortgage- and asset-backed securities
 
0

 
 
 
1,139

 
 
 
198

 
 
 
1,337

 
Public utilities
 
0

 
 
 
7,667

 
 
 
16

 
 
 
7,683

 
Sovereign and supranational
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
Banks/financial institutions
 
0

 
 
 
6,038

 
 
 
25

 
 
 
6,063

 
Other corporate
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
Total fixed maturities
 
25,387

 
 
 
48,134

 
 
 
239

 
 
 
73,760

 
  Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
Other corporate
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
Total perpetual securities
 
0

 
 
 
1,633

 
 
 
0

 
 
 
1,633

 
Equity securities
 
1,300

 
 
 
6

 
 
 
3

 
 
 
1,309

 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
0

 
 
 
365

 
 
 
125

 
 
 
490

 
Foreign currency forwards
 
0

 
 
 
672

 
 
 
0

 
 
 
672

 
Foreign currency options
 
0

 
 
 
43

 
 
 
0

 
 
 
43

 
Credit default swaps
 
0

 
 
 
0

 
 
 
2

 
 
 
2

 
Total other assets
 
0

 
 
 
1,080

 
 
 
127

 
 
 
1,207

 
Other investments
 
276

 
 
 
0

 
 
 
0

 
 
 
276

 
Cash and cash equivalents
 
4,859

 
 
 
0

 
 
 
0

 
 
 
4,859

 
Total assets
 
$
31,822

 
 
 
$
50,853

 
 
 
$
369

 
 
 
$
83,044

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
0

 
 
 
$
84

 
 
 
$
146

 
 
 
$
230

 
Foreign currency forwards
 
0

 
 
 
1,717

 
 
 
0

 
 
 
1,717

 
Foreign currency options
 
0

 
 
 
51

 
 
 
0

 
 
 
51

 
Total liabilities
 
$
0

 
 
 
$
1,852

 
 
 
$
146

 
 
 
$
1,998

 

 



  
2015
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale, carried at
fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
18,669

 
 
 
$
607

 
 
 
$
0

 
 
 
$
19,276

 
Municipalities
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
Mortgage- and asset-backed securities
 
0

 
 
 
362

 
 
 
220

 
 
 
582

 
Public utilities
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
Sovereign and supranational
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
Banks/financial institutions
 
0

 
 
 
5,993

 
 
 
26

 
 
 
6,019

 
Other corporate
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
Total fixed maturities
 
18,669

 
 
 
46,434

 
 
 
246

 
 
 
65,349

 
  Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
Other corporate
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
Total perpetual securities
 
0

 
 
 
1,947

 
 
 
0

 
 
 
1,947

 
Equity securities
 
489

 
 
 
6

 
 
 
3

 
 
 
498

 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
0

 
 
 
462

 
 
 
101

 
 
 
563

 
Foreign currency forwards
 
0

 
 
 
107

 
 
 
0

 
 
 
107

 
Foreign currency options
 
0

 
 
 
5

 
 
 
0

 
 
 
5

 
Credit default swaps
 
0

 
 
 
0

 
 
 
1

 
 
 
1

 
Total other assets
 
0

 
 
 
574

 
 
 
102

 
 
 
676

 
Other investments
 
176

 
 
 
0

 
 
 
0

 
 
 
176

 
Cash and cash equivalents
 
4,350

 
 
 
0

 
 
 
0

 
 
 
4,350

 
Total assets
 
$
23,684

 
 
 
$
48,961

 
 
 
$
351

 
 
 
$
72,996

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
0

 
 
 
$
21

 
 
 
$
293

 
 
 
$
314

 
Foreign currency forwards
 
0

 
 
 
49

 
 
 
0

 
 
 
49

 
Foreign currency options
 
0

 
 
 
8

 
 
 
0

 
 
 
8

 
Total liabilities
 
$
0

 
 
 
$
78

 
 
 
$
293

 
 
 
$
371

 


The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value as of December 31.
 
2016
(In millions)
Carrying
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Total
Fair
Value
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity,
carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
20,702

 
 
$
26,040

 
 
 
$
0

 
 
 
$
0

 
 
 
$
26,040

 
Municipalities
 
350

 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
Mortgage and asset-backed
securities
 
30

 
 
0

 
 
 
10

 
 
 
22

 
 
 
32

 
Public utilities
 
3,201

 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
Sovereign and
supranational
 
2,602

 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
Banks/financial institutions
 
3,731

 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
Other corporate
 
2,734

 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
Other investments
 
1,174

 
 
0

 
 
 
0

 
 
 
1,142

 
 
 
1,142

 
 Total assets
 
$
34,524

 
 
$
26,040

 
 
 
$
13,959

 
 
 
$
1,164

 
 
 
$
41,163

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other policyholders’ funds
 
$
6,659

 
 
$
0

 
 
 
$
0

 
 
 
$
6,540

 
 
 
$
6,540

 
Notes payable
(excluding capital leases)
 
5,339

 
 
0

 
 
 
0

 
 
 
5,530

 
 
 
5,530

 
Total liabilities
 
$
11,998

 
 
$
0

 
 
 
$
0

 
 
 
$
12,070

 
 
 
$
12,070

 

 
 
 
 
2015
(In millions)
Carrying
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity,
carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
20,004

 
 
$
23,391

 
 
 
$
0

 
 
 
$
0

 
 
 
$
23,391

 
Municipalities
 
341

 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
Mortgage and asset-backed
securities
 
36

 
 
0

 
 
 
12

 
 
 
26

 
 
 
38

 
Public utilities
 
3,092

 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
Sovereign and
supranational
 
2,555

 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
Banks/financial institutions
 
4,431

 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
Other corporate
 
3,000

 
 
0

 
 
 
3,216

 
 
 
0

 
 
 
3,216

 
Other investments
 
118

 
 
0

 
 
 
0

 
 
 
118

 
 
 
118

 
  Total assets
 
$
33,577

 
 
$
23,391

 
 
 
$
14,103

 
 
 
$
144

 
 
 
$
37,638

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other policyholders’ funds
 
$
6,285

 
 
$
0

 
 
 
$
0

 
 
 
$
6,160

 
 
 
$
6,160

 
Notes payable
(excluding capital leases)
 
4,951

 
 
0

 
 
 
0

 
 
 
5,256

 
 
 
5,256

 
Total liabilities
 
$
11,236

 
 
$
0

 
 
 
$
0

 
 
 
$
11,416

 
 
 
$
11,416

 

Amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.

Fair Value of Financial Instruments

U.S. GAAP requires disclosure of the fair value of certain financial instruments including those that are not carried at fair value. The carrying amounts for cash and cash equivalents, other investments (excluding loan receivables), receivables, accrued investment income, accounts payable, cash collateral and payables for security transactions approximated their fair values due to the nature of these instruments. Liabilities for future policy benefits and unpaid policy claims are not financial instruments as defined by U.S. GAAP.

Fixed maturities, perpetual securities, and equity securities

We determine the fair values of our fixed maturity securities, perpetual securities, and public and privately issued equity securities using the following approaches or techniques: price quotes and valuations from third party pricing vendors (including quoted market prices readily available from public exchange markets) and non-binding price quotes we obtain from outside brokers.

A third party pricing vendor has developed valuation models to determine fair values of privately issued securities to reflect the impact of the persistent economic environment and the changing regulatory framework. These models are discounted cash flow (DCF) valuation models, but also use information from related markets, specifically the CDS market to estimate expected cash flows. These models take into consideration any unique characteristics of the securities and make various adjustments to arrive at an appropriate issuer-specific loss adjusted credit curve. This credit curve is then used with the relevant recovery rates to estimate expected cash flows and modeling of additional features, including illiquidity adjustments, if necessary, to price the security by discounting those loss adjusted cash flows. In cases where a credit curve cannot be developed from the specific security features, the valuation methodology takes into consideration other market observable inputs, including: 1) the most appropriate comparable security(ies) of the issuer; 2) issuer-specific CDS spreads; 3) bonds or CDS spreads of comparable issuers with similar characteristics such as rating, geography, or sector; or 4) bond indices that are comparative in rating, industry, maturity and region.

The pricing data and market quotes we obtain from outside sources, including third party pricing services, are reviewed internally for reasonableness. If a fair value appears unreasonable, we will re-examine the inputs and assess the reasonableness of the pricing data with the vendor. Additionally, we may compare the inputs to relevant market indices and other performance measurements. The output of this analysis is presented to the Company's Valuation and Classifications Subcommittee, or VCS. Based on the analysis provided to the VCS, the valuation is confirmed or may be revised if there is evidence of a more appropriate estimate of fair value based on available market data. We have performed verification of the inputs and calculations in any valuation models to confirm that the valuations represent reasonable estimates of fair value.

The fixed maturities classified as Level 3 consist of securities for which there are limited or no observable valuation inputs. For Level 3 securities that are investment grade, we estimate the fair value of these securities by obtaining non-binding broker quotes from a limited number of brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. For Level 3 investments that are below-investment-grade securities, we consider a variety of significant valuation inputs in the valuation process, including forward exchange rates, yen swap rates, dollar swap rates, interest rate volatilities, credit spread data on specific issuers, assumed default and default recovery rates, and certain probability assumptions. In obtaining these valuation inputs, we have determined that certain pricing assumptions and data used by our pricing sources are difficult to validate or corroborate by the market and/or appear to be internally developed rather than observed in or corroborated by the market. The use of these unobservable valuation inputs causes more subjectivity in the valuation process for these securities.

For the periods presented, we have not adjusted the quotes or prices we obtain from the pricing services and brokers we use.

The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities as of December 31.
 
 
2016
(In millions)
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
25,387

 
 
 
$
827

 
 
 
$
0

 
 
 
$
26,214

 
               Total government and agencies
 
 
25,387

 
 
 
827

 
 
 
0

 
 
 
26,214

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
               Total municipalities
 
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,139

 
 
 
0

 
 
 
1,139

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
198

 
 
 
198

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
1,139

 
 
 
198

 
 
 
1,337

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
7,667

 
 
 
0

 
 
 
7,667

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
16

 
 
 
16

 
               Total public utilities
 
 
0

 
 
 
7,667

 
 
 
16

 
 
 
7,683

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
               Total sovereign and supranational
 
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
6,038

 
 
 
0

 
 
 
6,038

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
25

 
 
 
25

 
               Total banks/financial institutions
 
 
0

 
 
 
6,038

 
 
 
25

 
 
 
6,063

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
               Total other corporate
 
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
                  Total fixed maturities
 
 
25,387

 
 
 
48,134

 
 
 
239

 
 
 
73,760

 
      Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
               Total banks/financial institutions
 
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
               Total other corporate
 
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
                  Total perpetual securities
 
 
0

 
 
 
1,633

 
 
 
0

 
 
 
1,633

 
      Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
1,300

 
 
 
6

 
 
 
0

 
 
 
1,306

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
3

 
 
 
3

 
               Total equity securities
 
 
1,300

 
 
 
6

 
 
 
3

 
 
 
1,309

 
                     Total securities available for sale
 
 
$
26,687

 
 
 
$
49,773

 
 
 
$
242

 
 
 
$
76,702

 


 
 
2016
(In millions)
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
26,040

 
 
 
$
0

 
 
 
$
0

 
 
 
$
26,040

 
               Total government and agencies
 
 
26,040

 
 
 
0

 
 
 
0

 
 
 
26,040

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
               Total municipalities
 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
10

 
 
 
0

 
 
 
10

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
22

 
 
 
22

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
10

 
 
 
22

 
 
 
32

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
               Total public utilities
 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
               Total sovereign and supranational
 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
               Total banks/financial institutions
 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
               Total other corporate
 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
                  Total securities held to maturity
 
 
$
26,040

 
 
 
$
13,959

 
 
 
$
22

 
 
 
$
40,021

 

 
 
2015
(In millions)
 
Quoted Prices in Active Markets
for Identical Assets
(Level 1)
 
Significant Observable
Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
18,669

 
 
 
$
607

 
 
 
$
0

 
 
 
$
19,276

 
               Total government and agencies
 
 
18,669

 
 
 
607

 
 
 
0

 
 
 
19,276

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
               Total municipalities
 
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
362

 
 
 
0

 
 
 
362

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
220

 
 
 
220

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
362

 
 
 
220

 
 
 
582

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
               Total public utilities
 
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
               Total sovereign and supranational
 
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
5,993

 
 
 
0

 
 
 
5,993

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
26

 
 
 
26

 
               Total banks/financial institutions
 
 
0

 
 
 
5,993

 
 
 
26

 
 
 
6,019

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
               Total other corporate
 
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
                  Total fixed maturities
 
 
18,669

 
 
 
46,434

 
 
 
246

 
 
 
65,349

 
      Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
               Total banks/financial institutions
 
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
               Total other corporate
 
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
                  Total perpetual securities
 
 
0

 
 
 
1,947

 
 
 
0

 
 
 
1,947

 
      Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
489

 
 
 
6

 
 
 
0

 
 
 
495

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
3

 
 
 
3

 
               Total equity securities
 
 
489

 
 
 
6

 
 
 
3

 
 
 
498

 
                     Total securities available for sale
 
 
$
19,158

 
 
 
$
48,387

 
 
 
$
249

 
 
 
$
67,794

 
 
 
2015
(In millions)
 
Quoted Prices in Active Markets
for Identical Assets
(Level 1)
 
Significant Observable
Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
23,391

 
 
 
$
0

 
 
 
$
0

 
 
 
$
23,391

 
               Total government and agencies
 
 
23,391

 
 
 
0

 
 
 
0

 
 
 
23,391

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
               Total municipalities
 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
12

 
 
 
0

 
 
 
12

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
26

 
 
 
26

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
12

 
 
 
26

 
 
 
38

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
               Total public utilities
 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
               Total sovereign and supranational
 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
               Total banks/financial institutions
 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,189

 
 
 
0

 
 
 
3,189

 
            Broker/other
 
 
0

 
 
 
27

 
 
 
0

 
 
 
27

 
               Total other corporate
 
 
0

 
 
 
3,216

 
 
 
0

 
 
 
3,216

 
                  Total securities held to maturity
 
 
$
23,391

 
 
 
$
14,103

 
 
 
$
26

 
 
 
$
37,520

 


The following is a discussion of the determination of fair value of our remaining financial instruments.

Derivatives

We use derivative instruments to manage the risk associated with certain assets. However, the derivative instrument may not be classified in the same fair value hierarchy level as the associated asset. Inputs used to value derivatives include, but are not limited to, interest rates, credit spreads, foreign currency forward and spot rates, and interest volatility.

The fair values of the foreign currency forwards, options, and interest rate swaptions associated with certain investments; the foreign currency forwards and options used to hedge foreign exchange risk from our net investment in Aflac Japan and economically hedge certain portions of forecasted cash flows denominated in yen; and the foreign currency swaps associated with certain senior notes and our subordinated debentures are based on the amounts we would expect to receive or pay. The determination of the fair value of these derivatives is based on observable market inputs, therefore they are classified as Level 2.

For derivatives associated with VIEs where we are the primary beneficiary, we are not the direct counterparty to the swap contracts. As a result, the fair value measurements incorporate the credit risk of the collateral associated with the VIE. We receive valuations from a third party pricing vendor for these derivatives. Based on an analysis of these derivatives and a review of the methodology employed by the pricing vendor, we determined that due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data. As a result, the derivatives associated with our consolidated VIEs are classified as Level 3 of the fair value hierarchy.

Loan Receivables

Our loan receivables do not have readily determinable market prices and generally lack market liquidity. Fair values for loan receivables are determined based on the present value of expected future cash flows discounted at the applicable U.S. Treasury or London Interbank Offered Rate (LIBOR) yield plus an appropriate spread that considers other risk factors, such as credit and liquidity risk. These spreads are provided by the applicable asset managers based on their knowledge of the current loan pricing environment and market conditions. The spreads are a significant component of the pricing inputs and are generally considered unobservable. Therefore, these investments have been assigned a Level 3 within the fair value hierarchy. Loan receivables are included in other investments on the consolidated balance sheets.

Other policyholders' funds

The largest component of the other policyholders' funds liability is our annuity line of business in Aflac Japan. Our annuities have fixed benefits and premiums. For this product, we estimated the fair value to be equal to the cash surrender value. This is analogous to the value paid to policyholders on the valuation date if they were to surrender their policy. We periodically check the cash value against discounted cash flow projections for reasonableness. We consider our inputs for this valuation to be unobservable and have accordingly classified this valuation as Level 3.

Notes payable

The fair values of our publicly issued notes payable classified as Level 3 were obtained from a limited number of independent brokers. These brokers base their quotes on a combination of their knowledge of the current pricing environment and market conditions. We consider these inputs to be unobservable. The fair values of our yen-denominated loans approximate their carrying values.
Transfers between Hierarchy Levels and Level 3 Rollforward

There were no transfers between Level 1 and 2 for the years ended December 31, 2016 and 2015, respectively.

The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3 as of December 31.
2016
 
Fixed Maturities
 
Equity
Securities
 
Derivatives(1)
 
 
(In millions)
Mortgage-
and
Asset-
Backed
Securities
 
Public
Utilities
 
Banks/
Financial
Institutions
 
 
 
 
Foreign
Currency
Swaps
 
Credit
Default
Swaps
 
Total
Balance, beginning of period
$
220

 
$
0

 
$
26

 
 
$
3

 
$
(192
)
 
$
1

 
$
58

Realized investment gains (losses) included
in earnings
0

 
0

 
0

 
 
0

 
194

 
1

 
195

Unrealized gains (losses) included in other
comprehensive income (loss)
38

 
0

 
(1
)
 
 
0

 
(22
)
 
0

 
15

Purchases, issuances, sales and settlements:
 
 
 
 
 
 
 
 
 

 

 

Purchases
0

 
16

 
0

 
 
0

 
0

 
0

 
16

Issuances
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Sales
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Settlements
(60
)
 
0

 
0

 
 
0

 
(1
)
 
0

 
(61
)
Transfers into Level 3
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Transfers out of Level 3
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Balance, end of period
$
198

 
$
16

 
$
25

 
 
$
3

 
$
(21
)
 
$
2

 
$
223

Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at
the end of the period included in realized
investment gains (losses)
$
0

 
$
0

 
$
0

 
 
$
0

 
$
194

 
$
1

 
$
195


(1) Derivative assets and liabilities are presented net

2015
  
Fixed Maturities
 
Perpetual
Securities
 
Equity
Securities
 
Derivatives(1)
 
  
(In millions)
Mortgage-
and
Asset-
Backed
Securities
 
Banks/
Financial
Institutions
 
Banks/
Financial
Institutions
 
 
 
Foreign
Currency
Swaps
 
Credit
Default
Swaps
 
Total
Balance, beginning of period
$
223

 
$
26

 
$
149

 
$
3

 
$
(212
)
 
$
0

 
$
189

Realized investment gains (losses) included in
earnings
0

 
0

 
0

 
0

 
(15
)
 
1

 
(14
)
Unrealized gains (losses) included in other
comprehensive income (loss)
(1
)
 
0

 
(2
)
 
0

 
(1
)
 
0

 
(4
)
Purchases, issuances, sales and settlements:


 


 


 


 


 


 


Purchases
0

 
0

 
0

 
0

 
0

 
0

 
0

Issuances
0

 
0

 
0

 
0

 
0

 
0

 
0

Sales
0

 
0

 
(147
)
 
0

 
0

 
0

 
(147
)
Settlements
(2
)
 
0

 
0

 
0

 
36

 
0

 
34

Transfers into Level 3
0

 
0

 
0

 
0

 
0

 
0

 
0

Transfers out of Level 3
0

 
0

 
0

 
0

 
0

 
0

 
0

Balance, end of period
$
220

 
$
26

 
$
0

 
$
3

 
$
(192
)
 
$
1

 
$
58

Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at
the end of the period included in realized
investment gains (losses)
$
0

 
$
0

 
$
0

 
$
0

 
$
(15
)
 
$
1

 
$
(14
)

(1) Derivative assets and liabilities are presented net
Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.
2016
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
  Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
    Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
       Mortgage- and asset-backed securities
 
 
$
198

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
       Public utilities
 
 
16

 
 
Discounted cash flow
 
Historical volatility
 
N/A
(d) 
       Banks/financial institutions
 
 
25

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
    Equity securities
 
 
3

 
 
Net asset value
 
Offered quotes
 
$1 - $701 ($8)
 
  Other assets:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
16

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
17 - 172 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
 
 
 
29

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
16 - 88 bps
 
 
 
 
80

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
       Credit default swaps
 
 
2

 
 
Discounted cash flow
 
Base correlation
 
52.18% - 56.07%
(e) 
 
 
 
 
 
 
 
 
CDS spreads
 
54 bps
 
 
 
 
 
 
 
 
 
Recovery rate
 
36.69%
 
            Total assets
 
 
$
369

 
 
 
 
 
 
 
 

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.
(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices

2016
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
$
113

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
17 - 172 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
 
 
 
23

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
24 - 216 bps
 
 
 
 
10

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
            Total liabilities
 
 
$
146

 
 
 
 
 
 
 
 
(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate




2015
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
  Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
    Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
       Mortgage- and asset-backed securities
 
 
$
220

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
       Banks/financial institutions
 
 
26

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
    Equity securities
 
 
3

 
 
Net asset value
 
Offered quotes
 
$1-$677 ($7)
 
  Other assets:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
7

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
32 - 147 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
 
 
 
94

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
       Credit default swaps
 
 
1

 
 
Discounted cash flow
 
Base correlation
 
    53.26% - 58.40%
(e) 
 
 
 
 
 
 
 
 
CDS spreads
 
123 bps
 
 
 
 
 
 
 
 
 
Recovery rate
 
36.87%
 
            Total assets
 
 
$
351

 
 
 
 
 
 
 
 

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.
(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices


2015
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
$
158

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
32 - 147 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
 
 
 
120

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
35 - 213 bps
 
 
 
 
15

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
            Total liabilities
 
 
$
293

 
 
 
 
 
 
 
 
(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
The following is a discussion of the significant unobservable inputs or valuation technique used in determining the fair value of securities and derivatives classified as Level 3.

Net Asset Value

We hold certain unlisted equity securities whose fair value is derived based on the financial statements published by the investee. These securities do not trade on an active market and the valuations derived are dependent on the availability of timely financial reporting of the investee. Net asset value is an unobservable input in the determination of fair value of equity securities.

Offered Quotes

In circumstances where our valuation model price is overridden because it implies a value that is not consistent with current market conditions, we will solicit bids from a limited number of brokers. We also receive unadjusted prices from brokers for our mortgage and asset-backed securities. These quotes are non-binding but are reflective of valuation best estimates at that particular point in time. Offered quotes are an unobservable input in the determination of fair value of mortgage- and asset-backed securities, certain banks/financial institutions, certain other corporate, and equity securities investments.

Interest Rates, CDS Spreads, Foreign Exchange Rates

The significant drivers of the valuation of the interest and foreign exchange swaps are interest rates, foreign exchange rates and CDS spreads. Our swaps have long maturities that increase the sensitivity of the swaps to interest rate fluctuations. Since most of our yen-denominated cross currency swaps are in a net liability position, an increase in interest rates will decrease the liabilities and increase the value of the swap.
Foreign exchange swaps also have a lump-sum final settlement of foreign exchange principal receivables at the termination of the swap. An increase in yen interest rates will decrease the value of the final settlement foreign exchange receivables and decrease the value of the swap, and an increase in U.S. dollar interest rates increase the swap value.
A similar sensitivity pattern is observed for the foreign exchange rates. When the spot U.S. dollar/Japanese yen (USD/JPY) foreign exchange rate decreases and the swap is receiving a final exchange payment in JPY, the swap value will increase due to the appreciation of the JPY. Most of our swaps are designed to receive payments in JPY at the termination and will thus be impacted by the USD/JPY foreign exchange rate in this way. In cases where there is no final foreign exchange receivable in JPY and we are paying JPY as interest payments and receiving USD, a decrease in the foreign exchange rate will lead to a decrease in the swap value.

The extinguisher feature in most of our swaps results in a cessation of cash flows and no further payments between the parties to the swap in the event of a default on the referenced or underlying collateral. To price this feature, we apply the survival probability of the referenced entity to the projected cash flows. The survival probability uses the CDS spreads and recovery rates to adjust the present value of the cash flows. For extinguisher swaps with positive values, an increase in CDS spreads decreases the likelihood of receiving the final exchange payments and reduces the value of the swap.

Due to the long duration of these swaps and the need to extrapolate from short-term observable data to derive and measure long-term inputs, certain inputs, assumptions and judgments are required to value future cash flows that cannot be corroborated by current inputs or current observable market data.

Interest rates, CDS spreads, and foreign exchange rates are unobservable inputs in the determination of fair value of foreign currency swaps.

Base Correlations, CDS Spreads, Recovery Rates

Our remaining CDO is a tranche on a basket of single-name credit default swaps. The risk in this synthetic CDO comes from the single-name CDS risk and the correlations between the single names. The valuation of synthetic CDOs is dependent on the calibration of market prices for interest rates, single name CDS default probabilities and base correlation using financial modeling tools. Since there is limited or no observable data available for this tranche, the base correlations must be obtained from commonly traded market tranches such as the CDX and iTraxx indices. From the historical prices of these indices, base correlations can be obtained to develop a pricing curve of CDOs with different seniorities. Since the reference entities of the market indices do not match those in the portfolio underlying the synthetic CDO to be valued, several processing steps are taken to map the CDO in our portfolio to the indices. With the base correlation determined and the appropriate spreads selected, a valuation is calculated. An increase in the CDS spreads in the underlying portfolio leads to a decrease in the value due to higher probability of defaults and losses. The impact on the valuation due to base correlation depends on a number of factors, including the riskiness between market tranches and the modeled tranche based on our portfolio and the equivalence between detachment points in these tranches. Generally speaking, an increase in base correlation will decrease the value of the senior tranches while increasing the value of junior tranches. This may result in a positive or negative value change.

The CDO tranche in our portfolio is a senior mezzanine tranche and, due to the low level of credit support for this type of tranche, exhibits equity-like behavior. As a result, an increase in recovery rates tends to cause its value to decrease.

Base correlations, CDS spreads, and recovery rates are unobservable inputs in the determination of fair value of credit default swaps.

For additional information on our investments and financial instruments, see the accompanying Notes 1, 3 and 4.
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES
 12 Months Ended
Dec. 31, 2016
Deferred Policy Acquisition Costs Disclosures [Abstract]  
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES
Consolidated policy acquisition costs deferred were $1.4 billion in 2016, compared with $1.3 billion in 2015 and 2014. The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.
  
2016
 
2015
(In millions)
Japan
 
U.S.
 
Japan
 
U.S.
Deferred policy acquisition costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
 
$
5,370

 
 
 
$
3,141

 
 
 
$
5,211

 
 
 
$
3,062

 
Capitalization
 
864

 
 
 
583

 
 
 
738

 
 
 
578

 
Amortization
 
(644
)
 
 
 
(497
)
 
 
 
(578
)
 
 
 
(488
)
 
Foreign currency translation and other
 
175

 
 
 
1

 
 
 
(1
)
 
 
 
(11
)
 
Balance, end of year
 
$
5,765

 
 
 
$
3,228

 
 
 
$
5,370

 
 
 
$
3,141

 

Commissions deferred as a percentage of total acquisition costs deferred were 74% in 2016 and 2015, compared with 77% in 2014.

Personnel, compensation and benefit expenses as a percentage of insurance expenses were 53% in 2016, compared with 52% in 2015 and 2014. Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Advertising expense:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
100

 
 
 
$
82

 
 
 
$
103

 
Aflac U.S.
 
124

 
 
 
129

 
 
 
126

 
          Total advertising expense
 
$
224

 
 
 
$
211

 
 
 
$
229

 


Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Depreciation expense
 
$
48

 
 
 
$
44

 
 
 
$
47

 
Other amortization expense
 
6

 
 
 
6

 
 
 
8

 
          Total depreciation and other amortization expense
 
$
54

 
 
 
$
50

 
 
 
$
55

 


Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Lease and rental expense:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
53

 
 
 
$
46

 
 
 
$
52

 
Aflac U.S.
 
21

 
 
 
18

 
 
 
15

 
Other
 
1

 
 
 
1

 
 
 
1

 
          Total lease and rental expense
 
$
75

 
 
 
$
65

 
 
 
$
68

 
v3.6.0.2
POLICY LIABILITIES
 12 Months Ended
Dec. 31, 2016
Insurance Loss Reserves [Abstract]  
POLICY LIABILITIES
POLICY LIABILITIES
Policy liabilities consist of future policy benefits, unpaid policy claims, unearned premiums, and other policyholders' funds, which accounted for 81%, 4%, 8% and 7% of total policy liabilities at December 31, 2016, respectively. We regularly review the adequacy of our policy liabilities in total and by component.
The liability for future policy benefits as of December 31 consisted of the following:
  
  
 
Liability Amounts
 
 
Interest Rates
(In millions)
Policy
Issue Year
 
2016
 
2015
 
 
Year of
Issue
 
In 20
Years
Health insurance:
 
 
 
 
 
 
 
 
 
 
 
 
Japan:
1992 - 2016
 
$
8,912

 
$
7,633

 
 
1.0 - 2.5
%
 
1.0 - 2.5
%
 
1974 - 2013
 
1,118

 
1,078

 
 
2.7 - 2.75
 
 
2.25 - 2.75
 
 
1998 - 2016
 
11,687

 
11,008

 
 
3.0
 
 
3.0
 
 
1997 - 1999
 
2,485

 
2,435

 
 
3.5
 
 
3.5
 
 
1994 - 1996
 
3,069

 
2,998

 
 
4.0 - 4.5
 
 
4.0 - 4.5
 
 
1987 - 1994
 
14,372

 
14,161

 
 
5.5
 
 
5.5
 
 
1985 - 1991
 
1,871

 
1,868

 
 
5.25 - 6.75
 
 
5.25 - 5.5
 
 
1978 - 1984
 
2,134

 
2,163

 
 
6.5
 
 
5.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.:
2013 - 2016
 
75

 
57

 
 
3.0 - 3.5
 
 
3.0 - 3.5
 
 
2012 - 2016
 
1,062

 
794

 
 
3.75
 
 
3.75
 
 
2011
 
319

 
300

 
 
4.75
 
 
4.75
 
 
2005 - 2010
 
3,004

 
2,986

 
 
5.5
 
 
5.5
 
 
1988 - 2004
 
669

 
687

 
 
8.0
 
 
6.0
 
 
1986 - 2004
 
1,265

 
1,276

 
 
6.0
 
 
6.0
 
 
1981 - 1986
 
166

 
174

 
 
6.5 - 7.0
 
 
5.5 - 6.5
 
 
1998 - 2004
 
1,295

 
1,279

 
 
7.0
 
 
7.0
 
 
Other
 
19

 
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany eliminations:
2015
 
(630
)
(1) 
(646
)
(1) 
 
2.0
 
 
2.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life insurance:
 
 
 
 
 
 
 
 
 
 
 
 
Japan:
2001 - 2016
 
7,255

 
5,441

 
 
1.0 - 1.85
 
 
1.0 - 1.85
 
 
2011 - 2016
 
4,151

 
3,226

 
 
2.0
 
 
2.0
 
 
2009 - 2011
 
2,861

 
2,332

 
 
2.25
 
 
2.25
 
 
1992 - 2006
 
5

 
5

 
 
2.19
 
 
1.55
 
 
2005 - 2011
 
1,488

 
1,330

 
 
2.5
 
 
2.5
 
 
1985 - 2006
 
2,007

 
1,962

 
 
2.7
 
 
2.25
 
 
2007 - 2011
 
1,220

 
1,105

 
 
2.75
 
 
2.75
 
 
1999 - 2011
 
2,102

 
1,988

 
 
3.0
 
 
3.0
 
 
1996 - 2009
 
657

 
635

 
 
3.5
 
 
3.5
 
 
1994 - 1996
 
897

 
877

 
 
4.0 - 4.5
 
 
4.0 - 4.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.:
1956 - 2016
 
571

 
514

 
 
3.5 - 6.0
 
 
3.5 - 6.0
 
Total
 
 
$
76,106

 
$
69,687

 
 
 
 
 
 
 
(1) Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements

The weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits for Japanese policies were 3.5% in 2016, compared with 3.6% in 2015 and 3.8% in 2014; and for U.S. policies, 5.5% in 2016, compared with 5.6% in 2015 and 5.7% in 2014.

Changes in the liability for unpaid policy claims were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Unpaid supplemental health claims, beginning of year
 
$
3,548

 
 
 
$
3,412

 
 
 
$
3,537

 
Less reinsurance recoverables
 
26

 
 
 
7

 
 
 
9

 
Net balance, beginning of year
 
3,522

 
 
 
3,405

 
 
 
3,528

 
Add claims incurred during the year related to:
 
 
 
 
 
 
 
 
 
 
 
Current year
 
7,037

 
 
 
6,416

 
 
 
6,866

 
Prior years
 
(465
)
 
 
 
(353
)
 
 
 
(301
)
 
Total incurred
 
6,572

 
 
 
6,063

 
 
 
6,565

 
Less claims paid during the year on claims incurred during:
 
 
 
 
 
 
 
 
 
 
 
Current year
 
4,613

 
 
 
4,227

 
 
 
4,532

 
Prior years
 
1,865

 
 
 
1,718

 
 
 
1,873

 
Total paid
 
6,478

 
 
 
5,945

 
 
 
6,405

 
Effect of foreign exchange rate changes on unpaid claims
 
64

 
 
 
(1
)
 
 
 
(283
)
 
Net balance, end of year
 
3,680

 
 
 
3,522

 
 
 
3,405

 
Add reinsurance recoverables
 
27

 
 
 
26

 
 
 
7

 
Unpaid supplemental health claims, end of year
 
3,707

 
 
 
3,548

 
 
 
3,412

 
Unpaid life claims, end of year
 
338

 
 
 
254

 
 
 
218

 
Total liability for unpaid policy claims
 
$
4,045

 
 
 
$
3,802

 
 
 
$
3,630

 

Total incurred claims increased from 2015 to 2016 partially due to the impact of foreign exchange rates as well as normal increases in inforce and policyholder aging. The incurred claims development related to prior years reflects favorable claims experience compared to previous estimates, primarily in our lines of business in Japan.

As of December 31, 2016 and 2015, unearned premiums consisted primarily of discounted advance premiums on deposit. Discounted advance premiums are premiums on deposit from policyholders in conjunction with their purchase of certain Aflac Japan limited-pay insurance products. These advanced premiums are deferred upon collection and recognized as premium revenue over the contractual premium payment period. These advanced premiums represented 76% of the December 31, 2016 and 77% of the December 31, 2015 unearned premiums balances.

As of December 31, 2016 and 2015, the largest component of the other policyholders' funds liability is our annuity line of business in Aflac Japan. Our annuities have fixed benefits and premiums. These annuities represented 98% of both the December 31, 2016 and 2015 other policyholders' funds liability.
v3.6.0.2
REINSURANCE
 12 Months Ended
Dec. 31, 2016
Reinsurance Disclosures [Abstract]  
REINSURANCE
REINSURANCE

We enter into fixed quota-share coinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and benefits are reported net of insurance ceded.

Effective March 31, 2015, we entered into a coinsurance transaction whereby we ceded 30.0% of the sickness hospital benefit of one of Aflac Japan’s closed in-force blocks of business. We have an agreement for a $90 million letter of credit as collateral for this reinsurance transaction (see Note 13 for additional information). Effective April 1, 2015, we entered into a retrocession coinsurance transaction whereby we assumed 27.0% of the sickness hospital benefit of one of Aflac Japan’s closed in-force blocks of business through our subsidiary CAIC.

Effective October 1, 2014 and September 30, 2013, we entered into coinsurance reinsurance transactions whereby we ceded 16.7% and 33.3%, respectively, of the hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business. Effective December 31, 2014, we entered into a retrocession coinsurance reinsurance transaction whereby we assumed 8.35% of the reinsured hospital benefit of one of Aflac Japan’s closed medical in-force blocks of business through our subsidiary CAIC.

For our reinsurance transactions to date, we have recorded a deferred profit liability related to the reinsurance transactions. The remaining deferred profit liability of $870 million, as of December 31, 2016, included in future policy benefits in the consolidated balance sheet, is being amortized into income over the expected lives of the policies. We also have recorded a reinsurance recoverable for reinsurance transactions, which is included in other assets in the consolidated balance sheet and had a remaining balance of $860 million and $805 million as of December 31, 2016 and 2015, respectively. The increase in the reinsurance recoverable balance was driven by two aggregating factors: yen strengthening and the growth in reserves related to the business that has been reinsured as the policies age. The spot yen/dollar exchange rate strengthened by approximately 4% and ceded reserves increased approximately 3% from December 31, 2015 to December 31, 2016.

The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance for the years ended December 31.
(In millions)
2016
2015
Direct premium income
 
$
19,592

 
 
$
17,904

 
Ceded to other companies:
 
 
 
 
 
 
    Ceded Aflac Japan closed blocks
 
(560
)
 
 
(481
)
 
    Other
 
(48
)
 
 
(39
)
 
Assumed from other companies:
 
 
 
 
 
 
    Retrocession activities
 
234

 
 
178

 
    Other
 
7

 
 
8

 
Net premium income
 
$
19,225

 
 
$
17,570

 
 
 
 
 
 
 
 
Direct benefits and claims
 
$
13,240

 
 
$
12,041

 
Ceded benefits and change in reserves for future benefits:
 
 
 
 
 
 
    Ceded Aflac Japan closed blocks
 
(509
)
 
 
(437
)
 
    Eliminations
 
58

 
 
46

 
    Other
 
(38
)
 
 
(30
)
 
Assumed from other companies:
 
 
 
 
 
 
    Retrocession activities
 
222

 
 
167

 
    Eliminations
 
(58
)
 
 
(46
)
 
    Other
 
4

 
 
5

 
Benefits and claims, net
 
$
12,919

 
 
$
11,746

 


These reinsurance transactions are indemnity reinsurance that do not relieve us from our obligations to policyholders. In the event that the reinsurer is unable to meet their obligations, we remain liable for the reinsured claims.

As a part of our capital contingency plan, we entered into a committed reinsurance facility agreement on December 1, 2015 in the amount of approximately 110 billion yen. This reinsurance facility agreement was renewed in 2016 and is effective until December 31, 2017. There are also additional commitment periods of a one-year duration each which are automatically extended unless notification is received from the reinsurer within 60 days prior to the expiration. The reinsurer can withdraw from the committed facility if Aflac‘s Standard and Poor's (S&P) rating drops below BBB-. As of December 31, 2016, we have not executed a reinsurance treaty under this committed reinsurance facility.
v3.6.0.2
NOTES PAYABLE
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
NOTES PAYABLE
NOTES PAYABLE
A summary of notes payable as of December 31 follows:
(In millions)
2016
 
2015
2.65% senior notes due February 2017
 
$
649

 
 
 
$
651

 
2.40% senior notes due March 2020
 
547

 
 
 
546

 
4.00% senior notes due February 2022
 
348

 
 
 
348

 
3.625% senior notes due June 2023
 
696

 
 
 
696

 
3.625% senior notes due November 2024
 
745

 
 
 
744

 
3.25% senior notes due March 2025
 
445

 
 
 
445

 
2.875% senior notes due October 2026
 
298

 
 
 
0

 
6.90% senior notes due December 2039
 
220

 
 
 
393

 
6.45% senior notes due August 2040
 
254

 
 
 
445

 
4.00% senior notes due October 2046
 
394

 
 
 
0

 
5.50% subordinated debentures due September 2052
 
486

 
 
 
486

 
Yen-denominated Uridashi notes:
 
 
 
 
 
 
 
2.26% notes paid September 2016 (principal amount 8 billion yen)
 
0

 
 
 
66

 
Yen-denominated Samurai notes:
 
 
 
 
 
 
 
1.84% notes paid July 2016 (principal amount 15.8 billion yen)
 
0

 
 
 
131

 
Yen-denominated loans:
 
 
 
 
 
 
 
Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen)
 
43

 
 
 
0

 
Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen)
 
214

 
 
 
0

 
Capitalized lease obligations payable through 2023
 
21

 
 
 
20

 
Total notes payable
 
$
5,360

 
 
 
$
4,971

 

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.
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 2016, the Parent Company issued two series of senior notes totaling $700 million through a U.S. public debt offering. The first series, which totaled $300 million, bears interest at a fixed rate of 2.875% per annum, payable semi-annually and has a 10-year maturity. The second series, which totaled $400 million, bears interest at a fixed rate of 4.00% per annum, payable semi-annually, and has a 30-year maturity.

In September 2016, the Parent Company entered into two series of senior unsecured term loan facilities totaling 30.0 billion yen. The first series, which totaled 5.0 billion yen, bears an interest rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a five-year maturity. The applicable margin ranges between .20% and .60%, depending on the Parent Company's debt ratings as of the date of determination. The second series, which totaled 25.0 billion yen, bears an interest rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a seven-year maturity. The applicable margin ranges between .35% and .75%, depending on the Parent Company's debt ratings as of the date of determination.

In March 2015, the Parent Company issued two series of senior notes totaling $1.0 billion through a U.S. public debt offering. The first series, which totaled $550 million, bears interest at a fixed rate of 2.40% per annum, payable semi-annually, and has a five-year maturity. The second series, which totaled $450 million, bears interest at a fixed rate of 3.25% per annum, payable semi-annually, and has a 10-year maturity. We have entered into cross-currency swaps that convert the U.S. dollar-denominated principal and interest on the senior notes into yen-denominated obligations which results in lower nominal net interest rates on the debt. By entering into these cross-currency swaps, we economically converted our $550 million liability into a 67.0 billion yen liability and reduced the interest rate on this debt from 2.40% in dollars to .24% in yen, and we economically converted our $450 million liability into a 55.0 billion yen liability and reduced the interest rate on this debt from 3.25% in dollars to .82% in yen.

In November 2014, the Parent Company issued $750 million of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10-year maturity. These notes are redeemable at our 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 treasury rate plus 20 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. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into the swaps, we economically converted our $750 million liability into an 85.3 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.00% in yen.

In June 2013, the Parent Company issued $700 million of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of 3.625% per annum, payable semi-annually, and have a 10-year maturity. These notes are redeemable at our 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 treasury rate plus 20 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. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $700 million liability into a 69.8 billion yen liability and reduced the interest rate on this debt from 3.625% in dollars to 1.50% in yen.

In September 2012, the Parent Company issued $450 million of subordinated debentures through a U.S. public debt offering. The debentures bear interest at a fixed rate of 5.50% per annum, payable quarterly, and have a 40-year maturity. In five years, on or after September 26, 2017, we may redeem the debentures, in whole or in part, at their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption; provided that if the debentures are not redeemed in whole, at least $25 million aggregate principal amount of the debentures must remain outstanding after giving effect to such redemption. The debentures may only be redeemed prior to September 26, 2017, in whole but not in part, upon the occurrence of certain tax events or certain rating agency events, as specified in the indenture governing the terms of the debentures. We entered into cross-currency interest rate swaps to convert the U.S. dollar-denominated principal and interest on the subordinated debentures we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $450 million liability into a 35.3 billion yen liability and reduced the interest rate on this debt from 5.50% in dollars to 4.41% in yen. The swaps will expire after the initial five-year non-callable period for the debentures. In October 2012, the underwriters exercised their option, pursuant to the underwriting agreement, to purchase an additional $50 million principal amount of the debentures discussed above. We entered into a cross-currency interest rate swap to economically convert this $50 million liability into a 3.9 billion yen liability and reduce the interest rate from 5.50% in dollars to 4.42% in yen. The swap will expire after the initial five-year non-callable period for the debentures.

In February 2012, the Parent Company issued two series of senior notes totaling $750 million through a U.S. public debt offering. The first series, which totaled $400 million, bears interest at a fixed rate of 2.65% per annum, payable semiannually, and has a five-year maturity. The second series, which totaled $350 million, bears interest at a fixed rate of 4.00% per annum, payable semiannually, and has a 10-year maturity. These notes are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the principal amount of the notes or (ii) the present value of the remaining scheduled payments of principal and interest to be redeemed, discounted to the redemption date, plus accrued and unpaid interest. We entered into cross-currency interest rate swaps to reduce interest expense by converting the U.S. dollar-denominated principal and interest on the senior notes we issued into yen-denominated obligations. By entering into these swaps, we economically converted our $400 million liability into a 30.9 billion yen liability and reduced the interest rate on this debt from 2.65% in dollars to 1.22% in yen. We also economically converted our $350 million liability into a 27.0 billion yen liability and reduced the interest rate on this debt from 4.00% in dollars to 2.07% in yen. In July 2012, the Parent Company issued $250 million of senior notes that are an addition to the original first series of senior notes issued in February 2012. These notes have a five-year maturity and a fixed rate of 2.65% per annum, payable semiannually.

In 2010 and 2009, we issued senior notes through U.S. public debt offerings; the details of these notes are as follows. In August 2010, we issued $450 million of senior notes that have a 30-year maturity. In December 2009, we issued $400 million of senior notes that have a 30-year maturity. These senior notes pay interest semiannually and are redeemable at our option in whole at any time or in part from time to time at a redemption price equal to the greater of: (i) the principal amount of the notes or (ii) the present value of the remaining scheduled payments of principal and interest to be redeemed, discounted to the redemption date, plus accrued and unpaid interest.

In December 2016, the Parent Company completed a tender offer in which it extinguished $176 million principal of its 6.90% senior notes due 2039 and $193 million principal of its 6.45% senior notes due 2040. The pretax loss due to the early redemption of these notes was $137 million.

In September 2016, we extinguished 8.0 billion yen of 2.26% fixed rate Uridashi notes upon their maturity and in July 2016, we extinguished 15.8 billion yen of 1.84% fixed rate Samurai notes upon their maturity.

For our yen-denominated notes and loans, the principal amount as stated in dollar terms will fluctuate from period to period due to changes in the yen/dollar exchange rate. We have designated the majority of our yen-denominated notes payable as a nonderivative hedge of the foreign currency exposure of our investment in Aflac Japan.

The aggregate contractual maturities of notes payable during each of the years after December 31, 2016, are as follows:
(In millions)
Long-term
Debt
 
Capitalized
Lease
Obligations
 
Total
Notes
Payable
2017
 
$
650

 
 
 
$
6

 
 
 
$
656

 
2018
 
0

 
 
 
6

 
 
 
6

 
2019
 
0

 
 
 
5

 
 
 
5

 
2020
 
550

 
 
 
2

 
 
 
552

 
2021
 
43

 
 
 
1

 
 
 
44

 
Thereafter
 
4,145

 
 
 
1

 
 
 
4,146

 
Total
 
$
5,388

 
 
 
$
21

 
 
 
$
5,409

 

In October 2016, the Parent Company and Aflac renewed a 364-day uncommitted bilateral line of credit that provides for borrowings in the amount of $100 million. Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. Borrowings under the financing agreement will mature no later than three months after the last drawdown date of October 14, 2017. As of December 31, 2016, we did not have any borrowings outstanding under our $100 million credit agreement.

In March 2016, the Parent Company entered into a three-year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 100.0 billion yen on a revolving basis. Borrowings bear interest at a rate per annum equal to TIBOR plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company is required to pay a facility fee on the commitments ranging between .30% and .50%, also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under this credit agreement may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company, and will expire on the earlier of (a) March 31, 2019, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. The credit facility requires compliance with certain financial covenants on a quarterly basis. As of December 31, 2016, we did not have any borrowings outstanding under our 100.0 billion yen revolving credit agreement.

The Parent Company and Aflac have a five-year senior unsecured revolving credit facility agreement with a syndicate of financial institutions that provides for borrowings of up to 55.0 billion yen or the equivalent of yen in U.S. dollars on a revolving basis. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S. dollars on a revolving basis. Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent Company and Aflac are required to pay a facility fee on the commitments ranging between .085% and .225%, also based on the Parent Company’s debt ratings as of the date of determination. Borrowings under the amended and restated credit facility may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent Company and Aflac. The amended and restated credit facility requires compliance with certain financial covenants on a quarterly basis and will expire on the earlier of (a) September 18, 2020, or (b) the date the commitments are terminated pursuant to an event of default, as such term is defined in the credit agreement. As of December 31, 2016, we did not have any borrowings outstanding under our 55.0 billion yen revolving credit agreement.

The Parent Company and Aflac have an uncommitted bilateral line of credit with a third party that provides for borrowings in the amount of $50 million. Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate purposes. As of December 31, 2016, we did not have any borrowings outstanding under our $50 million credit agreement.

We were in compliance with all of the covenants of our notes payable and lines of credit at December 31, 2016. No events of default or defaults occurred during 2016 and 2015.
v3.6.0.2
INCOME TAXES
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows:
(In millions)
Foreign
 
U.S.
 
Total
2016:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
650

 
 
 
$
234

 
 
 
$
884

 
Deferred
 
136

 
 
 
388

 
 
 
524

 
Total income tax expense
 
$
786

 
 
 
$
622

 
 
 
$
1,408

 
2015:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
1,063

 
 
 
$
225

 
 
 
$
1,288

 
Deferred
 
42

 
 
 
(1
)
 
 
 
41

 
Total income tax expense
 
$
1,105

 
 
 
$
224

 
 
 
$
1,329

 
2014:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
995

 
 
 
$
84

 
 
 
$
1,079

 
Deferred
 
125

 
 
 
336

 
 
 
461

 
Total income tax expense
 
$
1,120

 
 
 
$
420

 
 
 
$
1,540

 


The Japan income tax rate for the fiscal year 2014 was 33.3%. The rate was reduced to 30.8% for the fiscal year 2015 and reduced to 28.8% for the fiscal year 2016.

Income tax expense in the accompanying statements of earnings varies from the amount computed by applying the expected U.S. tax rate of 35% to pretax earnings. The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Income taxes based on U.S. statutory rates
 
$
1,424

 
 
 
$
1,352

 
 
 
$
1,572

 
Utilization of foreign tax credit
 
(30
)
 
 
 
(27
)
 
 
 
(32
)
 
Nondeductible expenses
 
8

 
 
 
3

 
 
 
5

 
Other, net
 
6

 
 
 
1

 
 
 
(5
)
 
Income tax expense
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 


Total income tax expense for the years ended December 31 was allocated as follows:
(In millions)
2016
 
2015
 
2014
Statements of earnings
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation gains (losses) during period
 
70

 
 
 
16

 
 
 
(419
)
 
Unrealized gains (losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on investment
securities during period
 
962

 
 
 
(931
)
 
 
 
2,237

 
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings
 
18

 
 
 
21

 
 
 
19

 
Unrealized gains (losses) on derivatives during period
 
1

 
 
 
0

 
 
 
(3
)
 
Pension liability adjustment during period
 
(16
)
 
 
 
(7
)
 
 
 
(31
)
 
Total income tax expense (benefit) related to items of
other comprehensive income (loss)
 
1,035

 
 
 
(901
)
 
 
 
1,803

 
Additional paid-in capital (exercise of stock options)
 
(10
)
 
 
 
4

 
 
 
(7
)
 
Total income taxes
 
$
2,433

 
 
 
$
432

 
 
 
$
3,336

 


The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows:
(In millions)
2016
 
2015
Deferred income tax liabilities:
 
 
 
 
 
 
 
Deferred policy acquisition costs
 
$
2,439

 
 
 
$
2,282

 
Unrealized gains on investment securities
 
2,636

 
 
 
1,684

 
Premiums receivable
 
111

 
 
 
139

 
Policy benefit reserves
 
1,638

 
 
 
1,313

 
Depreciation
 
70


 
 
61

 
Other
 
0


 
 
0

 
Total deferred income tax liabilities
 
6,894

 
 
 
5,479

 
Deferred income tax assets:
 
 
 
 
 
 
 
Other basis differences in investment securities
 
1,167

 
 
 
1,422

 
Unfunded retirement benefits
 
13

 
 
 
15

 
Other accrued expenses
 
11

 
 
 
7

 
Policy and contract claims
 
146

 
 
 
113

 
Foreign currency loss on Japan branch
 
185

 
 
 
208

 
Deferred compensation
 
210

 
 
 
181

 
Capital loss carryforwards
 
3

 
 
 
0

 
Other
 
103

 
 
 
95

 
Total deferred income tax assets
 
1,838

 
 
 
2,041

 
Net deferred income tax liability
 
5,056

 
 
 
3,438

 
Current income tax liability
 
331

 
 
 
902

 
Total income tax liability
 
$
5,387

 
 
 
$
4,340

 

Based upon a review of the Company's anticipated future taxable income, and including all other available evidence, both positive and negative, the Company's management has concluded that it is more likely than not that the net deferred tax assets will be realized.

Under U.S. income tax rules, only 35% of non-life operating losses can be offset against life insurance taxable income each year. For current U.S. income tax purposes, there were no unused operating loss carryforwards available to offset against future taxable income. The Company has capital loss carryforwards of $9 million available to offset capital gains which expire in 2021.

The Company files federal income tax returns in the United States and Japan as well as state or prefecture income tax returns in various jurisdictions in the two countries. The Company is currently under audit by the State of Illinois for tax years 2006-2012. There are currently no other open Federal, State, or local U.S. income tax audits. U.S. federal income tax returns for years before 2011 are no longer subject to examination. The Company is currently under a corporate income tax audit in Japan by the National Tax Agency (NTA) for tax years 2012-2015. Japan corporate income tax returns for years before 2012 are no longer subject to examination. Management believes it has established adequate tax liabilities and final resolution of all open audits is not expected to have a material impact on the Company's consolidated financial statements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31:
(In millions)
 
2016
 
 
2015
 
Balance, beginning of year
 
$
264


 
$
309


Additions for tax positions of prior years
 
33

  
 
0

  
Reductions for tax positions of prior years
 
(3
)
  
 
(45
)
 
Balance, end of year
 
$
294


 
$
264




Included in the balance of the liability for unrecognized tax benefits at December 31, 2016, are $293 million of tax positions for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility, compared with $261 million at December 31, 2015. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate, but would accelerate the payment of cash to the taxing authority to an earlier period. The Company has accrued approximately $1 million as of December 31, 2016, for permanent uncertainties, which if reversed would not have a material effect on the annual effective rate.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. We recognized approximately $13 million in interest and penalties in 2016, compared with $11 million in 2015 and 2014. The Company has accrued approximately $26 million for the payment of interest and penalties as of December 31, 2016, compared with $22 million a year ago.

As of December 31, 2016, there were no material uncertain tax positions for which the total amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months.
v3.6.0.2
SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2016
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
The following table is a reconciliation of the number of shares of the Company's common stock for the years ended December 31.
(In thousands of shares)
2016
 
2015
 
2014
Common stock - issued:
 
 
 
 
 
Balance, beginning of period
669,723
 
668,132
 
667,046
Exercise of stock options and issuance of restricted shares
1,526
 
1,591
 
1,086
Balance, end of period
671,249
 
669,723
 
668,132
Treasury stock:
 
 
 
 
 
Balance, beginning of period
245,343
 
225,687
 
207,633
Purchases of treasury stock:
 
 
 
 
 
Open market
21,618
 
21,179
 
19,660
Other
330
 
247
 
157
Dispositions of treasury stock:
 
 
 
 
 
Shares issued to AFL Stock Plan
(1,064)
 
(1,209)
 
(1,251)
Exercise of stock options
(683)
 
(465)
 
(391)
Other
(105)
 
(96)
 
(121)
Balance, end of period
265,439
 
245,343
 
225,687
Shares outstanding, end of period
405,810
 
424,380
 
442,445

Outstanding share-based awards are excluded from the calculation of weighted-average shares used in the computation of basic EPS. The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share at December 31:
(In thousands)
2016
 
2015
 
2014
Anti-dilutive share-based awards
 
911

 
 
 
1,862

 
 
 
1,215

 

The weighted-average shares used in calculating earnings per share for the years ended December 31 were as follows: 
(In thousands of shares)
2016
 
2015
 
2014
Weighted-average outstanding shares used for calculating basic EPS
411,471

 
430,654

 
451,204

Dilutive effect of share-based awards
2,450

 
2,518

 
2,796

Weighted-average outstanding shares used for calculating diluted EPS
413,921

 
433,172

 
454,000



Share Repurchase Program: During 2016, we purchased 21.6 million shares of our common stock in the open market, compared with 21.2 million shares in 2015 and 19.7 million shares in 2014. As of December 31, 2016, a remaining balance of 26.8 million shares of our common stock was available for purchase under share repurchase authorizations by our board of directors.

Voting Rights: In accordance with the Parent Company's articles of incorporation, shares of common stock are generally entitled to one vote per share until they have been held by the same beneficial owner for a continuous period of 48 months, at which time they become entitled to 10 votes per share.
Reclassifications from Accumulated Other Comprehensive Income
The table below is a reconciliation of accumulated other comprehensive income by component for the years ended December 31.

Changes in Accumulated Other Comprehensive Income
2016
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension
Liability
Adjustment
 
Total
Balance, beginning of period
 
$
(2,196
)
 
 
 
$
2,986

 
 
 
$
(26
)
 
 
 
$
(139
)
 
 
 
$
625

 
Other comprehensive
income (loss) before
reclassification
 
213

 
 
 
1,854

 
 
 
2

 
 
 
(32
)
 
 
 
2,037

 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(35
)
 
 
 
0

 
 
 
3

 
 
 
(32
)
 
Net current-period other
comprehensive
income (loss)
 
213

 
 
 
1,819

 
 
 
2

 
 
 
(29
)
 
 
 
2,005

 
Balance, end of period
 
$
(1,983
)
 
 
 
$
4,805

 
 
 
$
(24
)
 
 
 
$
(168
)
 
 
 
$
2,630

 
All amounts in the table above are net of tax.
2015
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension Liability Adjustment
 
Total
Balance, beginning of period
 
$
(2,541
)
 
 
 
$
4,672

 
 
 
$
(26
)
 
 
 
$
(126
)
 
 
 
$
1,979

 
Other comprehensive
income (loss) before
reclassification
 
345

 
 
 
(1,646
)
 
 
 
0

 
 
 
(13
)
 
 
 
(1,314
)
 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(40
)
 
 
 
0

 
 
 
0

 
 
 
(40
)
 
Net current-period other
comprehensive
income (loss)
 
345

 
 
 
(1,686
)
 
 
 
0

 
 
 
(13
)
 
 
 
(1,354
)
 
Balance, end of period
 
$
(2,196
)
 
 
 
$
2,986

 
 
 
$
(26
)
 
 
 
$
(139
)
 
 
 
$
625

 
All amounts in the table above are net of tax.

2014
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension Liability Adjustment
 
Total
Balance, beginning of period
 
$
(1,505
)
 
 
 
$
1,035

 
 
 
$
(12
)
 
 
 
$
(81
)
 
 
 
$
(563
)
 
Other comprehensive
income (loss) before
reclassification
 
(1,036
)
 
 
 
3,672

 
 
 
(14
)
 
 
 
(44
)
 
 
 
2,578

 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(35
)
 
 
 
0

 
 
 
(1
)
 
 
 
(36
)
 
Net current-period other
comprehensive
income (loss)
 
(1,036
)
 
 
 
3,637

 
 
 
(14
)
 
 
 
(45
)
 
 
 
2,542

 
Balance, end of period
 
$
(2,541
)
 
 
 
$
4,672

 
 
 
$
(26
)
 
 
 
$
(126
)
 
 
 
$
1,979

 
All amounts in the table above are net of tax.
The table below summarizes the amounts reclassified from each component of accumulated other comprehensive income based on source for the years ended December 31.

Reclassifications Out of Accumulated Other Comprehensive Income
(In millions)
2016
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
136

 
Sales and redemptions
 
 
(83
)
 
Other-than-temporary impairment
losses realized
 
 
53

 
Total before tax
 
 
(18
)
 
Tax (expense) or benefit(1)
 
 
$
35

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(15
)
 
Acquisition and operating expenses(2)
Prior service (cost) credit
 
11

 
Acquisition and operating expenses(2)
 
 
1

 
Tax (expense) or benefit(1)
 
 
$
(3
)
 
Net of tax
Total reclassifications for the period
 
$
32

 
Net of tax

(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see
Note 14 for additional details).
 
(In millions)
2015
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
214

 
Sales and redemptions
 
 
(153
)
 
Other-than-temporary impairment
losses realized
 
 
61

 
Total before tax
 
 
(21
)
 
Tax (expense) or benefit(1)
 
 
$
40

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(17
)
 
Acquisition and operating expenses(2)
Prior service (cost) credit
 
17

 
Acquisition and operating expenses(2)
 
 
0

 
Tax (expense) or benefit(1)
 
 
$
0

 
Net of tax
Total reclassifications for the period
 
$
40

 
Net of tax
(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).
(In millions)
2014
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
57

 
Sales and redemptions
 
 
(3
)
 
Other-than-temporary impairment
losses realized
 
 
54

 
Total before tax
 
 
(19
)
 
Tax (expense) or benefit(1)
 
 
$
35

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(15
)
 
Acquisition and operating expenses(2)
       Prior service (cost) credit
 
17

 
Acquisition and operating expenses(2)
 
 
(1
)
 
Tax (expense) or benefit(1)
 
 
$
1

 
Net of tax
Total reclassifications for the period
 
$
36

 
Net of tax
(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).
v3.6.0.2
SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION
As of December 31, 2016, the Company has outstanding share-based awards under two long-term incentive compensation plans.
The first plan, which expired in February 2007, is a stock option plan which allowed grants for incentive stock options (ISOs) to employees and non-qualifying stock options (NQSOs) to employees and non-employee directors. The options have a term of 10 years. The exercise price of options granted under this plan is equal to the fair market value of a share of the Company's common stock at the date of grant. Options granted before the plan's expiration date remain outstanding in accordance with their terms.
The second long-term incentive compensation plan allows awards to Company employees for ISOs, NQSOs, restricted stock, restricted stock units, and stock appreciation rights. Non-employee directors are eligible for grants of NQSOs, restricted stock, and stock appreciation rights. The ISOs and NQSOs have a term of 10 years, and the share-based awards generally vest upon time-based conditions or time- and performance-based conditions. Time-based vesting generally occurs after three years. Performance-based vesting conditions generally include the attainment of goals related to Company financial performance. As of December 31, 2016, approximately 8.8 million shares were available for future grants under this plan, and the only performance-based awards issued and outstanding were restricted stock awards.
Share-based awards granted to U.S.-based grantees are settled with authorized but unissued Company stock, while those issued to Japan-based grantees are settled with treasury shares.
The following table presents the impact of the expense recognized in connection with share-based awards for the periods ended December 31.
(In millions, except for per-share amounts)
2016
 
2015
 
2014
Impact on earnings from continuing operations
 
$
68

 
 
 
$
39

 
 
 
$
41

 
Impact on earnings before income taxes
 
68

 
 
 
39

 
 
 
41

 
Impact on net earnings
 
46

 
 
 
27

 
 
 
28

 
Impact on net earnings per share:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
.11

 
 
 
$
.06

 
 
 
$
.06

 
Diluted
 
.11

 
 
 
.06

 
 
 
.06

 


We estimate the fair value of each stock option granted using the Black-Scholes-Merton multiple option approach. Expected volatility is based on historical periods generally commensurate with the estimated terms of the options. We use historical data to estimate option exercise and termination patterns within the model. Separate groups of employees that have similar historical exercise patterns are stratified and considered separately for valuation purposes. The expected term of options granted is derived from the output of our option model and represents the weighted-average period of time that options granted are expected to be outstanding. We base the risk-free interest rate on the Treasury note rate with a term comparable to that of the estimated term of the options. The weighted-average fair value of options at their grant date was $12.70 per share for 2016, compared with $9.46 for 2015 and $16.24 in 2014. The following table presents the assumptions used in valuing options granted during the years ended December 31.
 
2016
 
2015
 
2014
Expected term (years)
 
6.4
 
 
 
6.3
 
 
 
6.3
 
Expected volatility
 
27.0
%
 
 
20.0
%
 
 
30.0
%
Annual forfeiture rate
 
3.2
 
 
 
2.8
 
 
 
2.7
 
Risk-free interest rate
 
2.2
 
 
 
2.0
 
 
 
2.8
 
Dividend yield
 
2.9
 
 
 
2.7
 
 
 
2.3
 


The following table summarizes stock option activity.
(In thousands of shares)
Stock
Option
Shares
 
Weighted-Average
Exercise Price
Per Share
Outstanding at December 31, 2013
 
9,980

 
 
 
$
47.03

 
Granted in 2014
 
678

 
 
 
61.81

 
Canceled in 2014
 
(115
)
 
 
 
52.01

 
Exercised in 2014
 
(1,236
)
 
 
 
41.04

 
Outstanding at December 31, 2014
 
9,307

 
 
 
48.84

 
Granted in 2015
 
855

 
 
 
61.47

 
Canceled in 2015
 
(231
)
 
 
 
55.70

 
Exercised in 2015
 
(2,013
)
 
 
 
45.15

 
Outstanding at December 31, 2015
 
7,918

 
 
 
50.94

 
Granted in 2016
 
664

 
 
 
61.39

 
Canceled in 2016
 
(181
)
 
 
 
55.63

 
Exercised in 2016
 
(2,061
)
 
 
 
48.91

 
Outstanding at December 31, 2016
 
6,340

 
 
 
$
52.56

 

 
(In thousands of shares)
2016
 
2015
 
2014
Shares exercisable, end of year
 
4,493

 
 
 
6,085

 
 
 
7,497

 


The following table summarizes information about stock options outstanding and exercisable at December 31, 2016.
(In thousands of shares)
 
 
Options Outstanding
 
Options Exercisable
 
Range of
Exercise Prices
Per Share
 
 
Stock Option
Shares
Outstanding
 
Wgtd.-Avg.
Remaining
Contractual
Life (Yrs.)
 
Wgtd.-Avg.
Exercise
Price
Per Share
 
Stock Option
Shares
Exercisable
 
Wgtd.-Avg.
Exercise
Price
Per Share
 
$
14.99

-
$
47.06

 
 
 
1,639

 
 
 
3.0
 
 
 
$
36.38

 
 
 
1,639

 
 
 
$
36.38

 
 
47.23

-
55.72

 
 
 
1,348

 
 
 
3.8
 
 
 
51.11

 
 
 
1,348

 
 
 
51.11

 
 
56.24

-
61.45

 
 
 
1,706

 
 
 
7.0
 
 
 
59.05

 
 
 
632

 
 
 
57.92

 
 
61.81

-
63.16

 
 
 
1,322

 
 
 
4.1
 
 
 
62.10

 
 
 
802

 
 
 
61.87

 
 
63.34

-
72.42

 
 
 
325

 
 
 
8.5
 
 
 
67.36

 
 
 
72

 
 
 
67.50

 
 
$
14.99

-
$
72.42

 
 
 
6,340

 
 
 
4.8
 
 
 
$
52.56

 
 
 
4,493

 
 
 
$
48.88

 


The aggregate intrinsic value represents the difference between the exercise price of the stock options and the quoted closing common stock price of $69.60 as of December 31, 2016, for those awards that have an exercise price currently below the closing price. As of December 31, 2016, the aggregate intrinsic value of stock options outstanding was $108 million, with a weighted-average remaining term of 4.8 years. The aggregate intrinsic value of stock options exercisable at that same date was $93 million, with a weighted-average remaining term of 3.3 years.

The following table summarizes stock option activity during the years ended December 31.
(In millions)
2016
 
2015
 
2014
Total intrinsic value of options exercised
 
$
41

 
 
 
$
36

 
 
 
$
25

 
Cash received from options exercised
 
68

 
 
 
68

 
 
 
39

 
Tax benefit realized as a result of options exercised and
restricted stock releases
 
45

 
 
 
25

 
 
 
17

 


The value of restricted stock awards is based on the fair market value of our common stock at the date of grant. The following table summarizes restricted stock activity during the years ended December 31. 
(In thousands of shares)
Shares
 
Weighted-Average
Grant-Date
Fair Value
Per  Share
Restricted stock at December 31, 2013
 
1,671

 
 
 
$
52.12

 
Granted in 2014
 
584

 
 
 
62.12

 
Canceled in 2014
 
(27
)
 
 
 
52.66

 
Vested in 2014
 
(348
)
 
 
 
56.95

 
Restricted stock at December 31, 2014
 
1,880

 
 
 
54.33

 
Granted in 2015
 
638

 
 
 
61.51

 
Canceled in 2015
 
(145
)
 
 
 
57.52

 
Vested in 2015
 
(558
)
 
 
 
48.41

 
Restricted stock at December 31, 2015
 
1,815

 
 
 
58.42

 
Granted in 2016
 
878

 
 
 
61.68

 
Canceled in 2016
 
(76
)
 
 
 
60.65

 
Vested in 2016
 
(749
)
 
 
 
53.68

 
Restricted stock at December 31, 2016
 
1,868

 
 
 
$
61.76

 


As of December 31, 2016, total compensation cost not yet recognized in our financial statements related to restricted stock awards was $33 million, of which $10 million (953 thousand shares) was related to restricted stock awards with a performance-based vesting condition. We expect to recognize these amounts over a weighted-average period of approximately 1.0 years. There are no other contractual terms covering restricted stock awards once vested.
v3.6.0.2
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS
 12 Months Ended
Dec. 31, 2016
Insurance [Abstract]  
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS
Our insurance subsidiaries are required to report their results of operations and financial position to state insurance regulatory authorities on the basis of statutory accounting practices prescribed or permitted by such authorities. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis.

Aflac, the Company's most significant insurance subsidiary, reports statutory financial statements that are prepared on the basis of accounting practices prescribed or permitted by the Nebraska Department of Insurance (NDOI). The NDOI recognizes statutory accounting principles and practices prescribed or permitted by the state of Nebraska for determining and reporting the financial condition and results of operations of an insurance company, and for determining a company's solvency under Nebraska insurance law. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual (SAP) has been adopted by the state of Nebraska as a component of those prescribed or permitted practices. Additionally, the Director of the NDOI has the right to permit other specific practices which deviate from prescribed practices. Aflac has been given explicit permission by the Director of the NDOI for two such permitted practices. These permitted practices, which do not impact the calculation of net income on a statutory basis or prevent the triggering of a regulatory event in the Company's risk-based capital calculation, are as follows:

•
Aflac has reported as admitted assets the refundable lease deposits on the leases of commercial office space which house Aflac Japan's sales operations. These lease deposits are unique and part of the ordinary course of doing business in the country of Japan; these assets would be non-admitted under SAP.

•
Aflac entered into a reinsurance agreement effective March 31, 2015 with a then unauthorized reinsurer. The effective date of this agreement predated the effective date of Nebraska's Amended Credit for Reinsurance statute (44-416) allowing certified reinsurers and also predated the subsequent approval of the agreement's assuming reinsurer as a Certified Reinsurer, which occurred on August 30, 2015 and December 24, 2015, respectively. Aflac has obtained a permitted practice to recognize this treaty and counterparty as Certified Reinsurer for the purpose of determining the collateral required to receive reinsurance reserve credit.

A reconciliation of Aflac's capital and surplus between SAP and practices permitted by the state of Nebraska is shown below:
(In millions)
2016
 
2015
Capital and surplus, Nebraska state basis
 
$
11,221

 
 
 
$
11,298

 
State Permitted Practice:
 
 
 
 
 
 
 
Refundable lease deposits – Japan
 
(40
)
 
 
 
(38
)
 
Reinsurance - Japan
 
(764
)
 
 
 
(707
)
 
Capital and surplus, NAIC basis
 
$
10,417

 
 
 
$
10,553

 

As of December 31, 2016, Aflac's capital and surplus significantly exceeded the required company action level capital and surplus of $1.3 billion. As determined on a U.S. statutory accounting basis, Aflac's net income was $2.8 billion in 2016, $2.3 billion in 2015 and $2.4 billion in 2014.

Aflac Japan must report its results of operations and financial position to the Japanese Financial Services Agency (FSA) on a Japanese regulatory accounting basis as prescribed by the FSA. Capital and surplus of the Japan branch, based on Japanese regulatory accounting practices, was $5.6 billion at December 31, 2016, compared with $4.7 billion at December 31, 2015. Japanese regulatory accounting practices differ in many respects from U.S. GAAP. Under Japanese regulatory accounting practices, policy acquisition costs are expensed immediately; policy benefit and claim reserving methods and assumptions are different; premium income is recognized on a cash basis; different consolidation criteria apply to VIEs; reinsurance is recognized on a different basis; and investments can have a separate accounting classification and treatment referred to as policy reserve matching bonds (PRM).

The Parent Company depends on its subsidiaries for cash flow, primarily in the form of dividends and management fees. Consolidated retained earnings in the accompanying financial statements largely represent the undistributed earnings of our insurance subsidiary. Amounts available for dividends, management fees and other payments to the Parent Company by its insurance subsidiary may fluctuate due to different accounting methods required by regulatory authorities. These payments are also subject to various regulatory restrictions and approvals related to safeguarding the interests of insurance policyholders. Our insurance subsidiary must maintain adequate risk-based capital for U.S. regulatory authorities and our Japan branch must maintain adequate solvency margins for Japanese regulatory authorities. Additionally, the maximum amount of dividends that can be paid to the Parent Company by Aflac without prior approval of Nebraska's director of insurance is the greater of the net income from operations, which excludes net realized investment gains, for the previous year determined under statutory accounting principles, or 10% of statutory capital and surplus as of the previous year-end. Dividends declared by Aflac during 2017 in excess of $2.8 billion would require such approval. Aflac declared dividends of $2.0 billion during 2016.

A portion of Aflac Japan earnings, as determined on a Japanese regulatory accounting basis, can be repatriated each year to Aflac U.S. after complying with solvency margin provisions and satisfying various conditions imposed by Japanese regulatory authorities for protecting policyholders. Profit repatriations to the United States can fluctuate due to changes in the amounts of Japanese regulatory earnings. Among other items, factors affecting regulatory earnings include Japanese regulatory accounting practices and fluctuations in currency translation of Aflac Japan's U.S. dollar-denominated investments and related investment income into yen. Profits repatriated by Aflac Japan to Aflac U.S. were as follows for the years ended December 31:
  
In Dollars
 
In Yen
(In millions of dollars and billions of yen)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Profit repatriation
 
$
1,286

 
 
 
$
2,139

 
 
 
$
1,704

 
 
 
138.5

 
 
 
259.0

 
 
 
181.4

 


We entered into foreign exchange forwards and options as part of an economic hedge on foreign exchange risk on 114.0 billion yen of profit repatriation received in 2016, resulting in $64 million less funds received when the yen were exchanged into dollars. As of December 31, 2016, we had foreign exchange forwards and options as part of a hedging strategy on 122.6 billion yen of future profit repatriation.
v3.6.0.2
BENEFIT PLANS
 12 Months Ended
Dec. 31, 2016
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
BENEFIT PLANS
BENEFIT PLANS
Pension and Other Postretirement Plans
We have funded defined benefit plans in Japan and the United States, however the U.S. plan was frozen to new participants effective October 1, 2013. We also maintain non-qualified, unfunded supplemental retirement plans that provide defined pension benefits in excess of limits imposed by federal tax law for certain Japanese, U.S. and former employees, however the U.S. plan was frozen to new participants effective January 1, 2015. U.S. employees who are not participants in the defined benefit plan receive a nonelective 401(k) employer contribution.

We provide certain health care benefits for eligible U.S. retired employees, their beneficiaries and covered dependents ("other postretirement benefits"). The health care plan is contributory and unfunded. On October 1, 2013, a change was made to postretirement medical benefits to limit the eligibility for the benefits beginning January 1, 2014 to include the following: (1) active employees whose age plus service, in years, equaled or exceeded 80 (rule of 80); (2) active employees who were age 55 or older and had met the 15 years of service requirement; (3) active employees who would meet the rule of 80 in the next five years; (4) active employees who were age 55 or older and who would meet the 15 years of service requirement within the next five years; and (5) current retirees. Effective October 1, 2013, this change was accounted for as a negative plan amendment and resulted in a reduction to the postretirement benefit obligation of approximately $51 million, with an offset to accumulated other comprehensive income (AOCI). Starting in the fourth quarter of 2013, this reduction is being amortized as a reduction to net periodic benefit cost over three years. The postretirement plan obligation was remeasured using a discount rate of 4.75% as of October 1, 2013. For certain employees and former employees, additional coverage is provided for all medical expenses for life.

Information with respect to our benefit plans' assets and obligations as of December 31 was as follows:

 
 
Pension Benefits
 
Other
 
 
Japan
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
2015
 
2016
2015
 
2016
2015
Projected benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Benefit obligation, beginning of year
 
 
$
276

 
 
$
267

 
 
 
$
735

 
 
$
717

 
 
 
$
40

 
 
$
44

 
      Service cost
 
 
16

 
 
15

 
 
 
23

 
 
23

 
 
 
1

 
 
1

 
      Interest cost
 
 
9

 
 
1

 
 
 
29

 
 
18

 
 
 
2

 
 
2

 
      Actuarial (gain) loss
 
 
29

 
 
0

 
 
 
29

 
 
(6
)
 
 
 
(4
)
 
 
(5
)
 
      Benefits and expenses paid
 
 
(8
)
 
 
(7
)
 
 
 
(18
)
 
 
(17
)
 
 
 
(2
)
 
 
(2
)
 
      Effect of foreign exchange
rate changes
 
 
7

 
 
0

 
 
 
0

 
 
0

 
 
 
0

 
 
0

 
               Benefit obligation, end of year
 
 
329

 
 
276

 
 
 
798

 
 
735

 
 
 
37

 
 
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fair value of plan assets,
beginning of year
 
 
198

 
 
183

 
 
 
336

 
 
341

 
 
 
0

 
 
0

 
      Actual return on plan assets
 
 
9

 
 
1

 
 
 
24

 
 
(6
)
 
 
 
0

 
 
0

 
      Employer contributions
 
 
25

 
 
21

 
 
 
17

 
 
18

 
 
 
2

 
 
2

 
      Benefits and expenses paid
 
 
(8
)
 
 
(7
)
 
 
 
(18
)
 
 
(17
)
 
 
 
(2
)
 
 
(2
)
 
      Effect of foreign exchange
rate changes
 
 
5

 
 
0

 
 
 
0

 
 
0

 
 
 
0

 
 
0

 
               Fair value of plan assets, end of year
 
 
229

 
 
198

 
 
 
359

 
 
336

 
 
 
0

 
 
0

 
Funded status of the plans(1)
 
 
$
(100
)
 
 
$
(78
)
 
 
 
$
(439
)
 
 
$
(399
)
 
 
 
$
(37
)
 
 
$
(40
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other
comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net actuarial (gain) loss
 
 
$
67

 
 
$
42

 
 
 
$
189

 
 
$
175

 
 
 
$
7

 
 
$
12

 
      Prior service (credit) cost
 
 
(2
)
 
 
(2
)
 
 
 
(4
)
 
 
(4
)
 
 
 
0

 
 
(11
)
 
               Total included in accumulated
other comprehensive income
 
 
$
65

 
 
$
40

 
 
 
$
185

 
 
$
171

 
 
 
$
7

 
 
$
1

 
Accumulated benefit obligation
 
 
$
288

 
 
$
244

 
 
 
$
670

 
 
$
621

 
 
 
  N/A

(2) 
 
N/A

(2) 
(1) Recognized in other liabilities in the consolidated balance sheets
(2) Not applicable
 
Pension Benefits
 
Other
 
Japan
 
 
U.S.
 
 
Postretirement Benefits
 
2016
 
2015
 
2014
 
 
2016
 
2015
 
2014
 
 
2016
 
2015
 
2014
 
Weighted-average actuarial assumptions:
  
 
  
 
  
 
 
  
 
  
 
  
 
  
  
 
  
 
  
  
Discount rate - net periodic benefit cost
1.75
%
 
1.75
%
 
2.25
%
 
 
4.50
%
 
4.50
%
 
4.75
%
 
 
4.50
%
 
4.50
%
 
4.75
%
 
Discount rate - benefit obligations
1.25

 
1.75

 
1.75

 
 
4.25

 
4.50

 
4.50

 
  
4.25

 
4.50

 
4.50

  
Expected long-term return on plan assets
2.00

 
2.00

 
2.00

 
 
7.00

 
7.25

 
7.50

 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
Rate of compensation increase
N/A
(1) 
N/A
(1) 
N/A
(1) 
 
4.00

 
4.00

 
4.00

 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
Health care cost trend rates
N/A
(1) 
N/A
(1) 
N/A
(1) 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
  
5.20

(2) 
5.30

(2) 
5.70

(2) 
(1) Not applicable
(2)For the years 2016, 2015 and 2014, the health care cost trend rates are expected to trend down to 4.5% in 74 years, 4.5% in 78 years, and 4.6% in 78 years, respectively.
We determine our discount rate assumption for our pension retirement obligations based on indices for AA corporate bonds with an average duration of approximately 20 years for the Japan pension plans and 17 years for the U.S. pension plans, and determination of the U.S. pension plans discount rate utilizes the 85-year extrapolated yield curve. In Japan, participant salary and future salary increases are not factors in determining pension benefit cost or the related pension benefit obligation.

We base our assumption for the long-term rate of return on assets on historical trends (10-year or longer historical rates of return for the Japanese plan assets and 15-year historical rates of return for the U.S. plan assets), expected future market movement, as well as the portfolio mix of securities in the asset portfolio including, but not limited to, style, class and equity and fixed income allocations. In addition, our consulting actuaries evaluate our assumptions for long-term rates of return under Actuarial Standards of Practice (ASOP). Under the ASOP, the actual portfolio type, mix and class is modeled to determine a best estimate of the long-term rate of return. We in turn use those results to further validate our own assumptions.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2016:
(In millions)
 
 
 
 
One percentage point increase:
 
 
 
 
Increase in total service and interest costs
 
 
$
0

 
Increase in postretirement benefit obligation
 
 
2

 
 
 
 
 
 
One percentage point decrease:
 
 
 
 
Decrease in total service and interest costs
 
 
$
0

 
Decrease in postretirement benefit obligation
 
 
2

 

Components of Net Periodic Benefit Cost
Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components:
 
 
Pension Benefits
 
Other
 
 
 
Japan
 
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
 
 
$
16

 
 
 
$
15

 
 
 
$
15

 
 
 
$
23

 
 
 
$
23

 
 
 
$
20

 
 
 
$
1

 
 
 
$
1

 
 
 
$
1

 
Interest cost
 
 
9

 
 
 
1

 
 
 
9

 
 
 
29

 
 
 
18

 
 
 
38

 
 
 
2

 
 
 
2

 
 
 
2

 
Expected return on plan
assets
 
 
(4
)
 
 
 
(4
)
 
 
 
(4
)
 
 
 
(23
)
 
 
 
(22
)
 
 
 
(20
)
 
 
 
0

 
 
 
0

 
 
 
0

 
Amortization of net actuarial
loss
 
 
1

 
 
 
1

 
 
 
1

 
 
 
13

 
 
 
14

 
 
 
11

 
 
 
1

 
 
 
2

 
 
 
3

 
Amortization of prior service
cost (credit)
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
(11
)
 
 
 
(17
)
 
 
 
(17
)
 
Net periodic (benefit) cost
 
 
$
22

 
 
 
$
13

 
 
 
$
21

 
 
 
$
42

 
 
 
$
33

 
 
 
$
49

 
 
 
$
(7
)
 
 
 
$
(12
)
 
 
 
$
(11
)
 


Changes in Accumulated Other Comprehensive Income
The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:
 
 
Pension Benefits
 
Other
 
 
Japan
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net actuarial loss (gain)
 
 
$
26

 
 
 
$
3

 
 
 
$
12

 
 
 
$
27

 
 
 
$
22

 
 
 
$
67

 
 
 
$
(4
)
 
 
 
$
(5
)
 
 
 
$
(3
)
 
Amortization of net actuarial loss
 
 
(1
)
 
 
 
(1
)
 
 
 
(1
)
 
 
 
(13
)
 
 
 
(14
)
 
 
 
(11
)
 
 
 
(1
)
 
 
 
(2
)
 
 
 
(3
)
 
Amortization of prior
service cost
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
11

 
 
 
17

 
 
 
17

 
     Total
 
 
$
25

 
 
 
$
2

 
 
 
$
11

 
 
 
$
14

 
 
 
$
8

 
 
 
$
56

 
 
 
$
6

 
 
 
$
10

 
 
 
$
11

 


Prior service credits of $51 million were incurred in 2013 for the plan amendment related to the change in eligibility for postretirement medical benefits, all of which had been amortized as of December 31, 2016. No transition obligations arose during 2016, and the transition obligations amortized to expense were immaterial for the years ended December 31, 2016, 2015 and 2014. Amortization of actuarial losses to expense in 2017 is estimated to be $2 million for the Japanese plans, $14 million for the U.S. plans and $1 million for the other postretirement benefits plan. Amortization of prior service costs and credits and transition obligations for all plans is expected to be negligible in 2017.

Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
 
 
Pension Benefits
 
Other
(In millions)
 
Japan
U.S.
 
Postretirement Benefits
2017
 
 
$
13

 
 
$
22

 
 
 
$
2

 
2018
 
 
8

 
 
23

 
 
 
2

 
2019
 
 
9

 
 
24

 
 
 
3

 
2020
 
 
10

 
 
25

 
 
 
3

 
2021
 
 
10

 
 
27

 
 
 
3

 
2022-2026
 
 
74

 
 
180

 
 
 
18

 


Funding

We plan to make contributions of $21 million to the Japanese funded defined benefit plan and $10 million to the U.S. funded defined benefit plan in 2017. The funding policy for our non-qualified supplemental defined benefit pension plans and other postretirement benefits plan is to contribute the amount of the benefit payments made during the year.

Plan Assets

The investment objective of our Japanese and U.S. funded defined benefit plans is to preserve the purchasing power of the plan's assets and earn a reasonable inflation-adjusted rate of return over the long term. Furthermore, we seek to accomplish these objectives in a manner that allows for the adequate funding of plan benefits and expenses. In order to achieve these objectives, our goal is to maintain a conservative, well-diversified and balanced portfolio of high-quality equity, fixed-income and money market securities. As a part of our strategy, we have established strict policies covering quality, type and concentration of investment securities. For our Japanese plan, these policies include limitations on investments in derivatives including futures, options and swaps, and low-liquidity investments such as real estate, venture capital investments, and privately issued securities. For our U.S. plan, these policies prohibit investments in precious metals, limited partnerships, venture capital, and direct investments in real estate. We are also prohibited from trading on margin.

The plan fiduciaries for our funded defined benefit plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2016 were as follows:
 
 
Japan Pension
 
U.S. Pension
Domestic equities
 
 
11
%
 
 
 
40
%
 
International equities
 
 
15

 
 
 
20

 
Fixed income securities
 
 
59

 
 
 
40

 
Other
 
 
15

 
 
 
0

 
     Total
 
 
100
%
 
 
 
100
%
 


The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy, except cash and cash equivalents which are classified as Level 1.
(In millions)
2016
 
2015
Japan pension plan assets:
 
 
 
 
 
 
 
     Equities:
 
 
 
 
 
 
 
        Japanese equity securities
 
$
28

 
 
 
$
22

 
        International equity securities
 
40

 
 
 
33

 
     Fixed income securities:
 
 
 
 
 
 
 
        Japanese bonds
 
79

 
 
 
71

 
        International bonds
 
55

 
 
 
48

 
     Insurance contracts
 
27

 
 
 
23

 
     Cash and cash equivalents
 
0

 
 
 
1

 
        Total
 
$
229

 
 
 
$
198

 

The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.

(In millions)
2016
 
2015
U.S. pension plan assets:
 
 
 
 
 
 
 
     Mutual funds:
 
 
 
 
 
 
 
        Large cap equity funds
 
$
104

 
 
 
$
94

 
        Mid cap equity funds
 
19

 
 
 
16

 
        Real estate equity funds
 
10

 
 
 
10

 
        International equity funds
 
85

 
 
 
77

 
        Fixed income bond funds
 
136

 
 
 
134

 
     Aflac Incorporated common stock
 
4

 
 
 
4

 
     Cash and cash equivalents
 
1

 
 
 
1

 
        Total
 
$
359

 
 
 
$
336

 


The fair values of our pension plan investments categorized as Level 1, consisting of mutual funds and common stock, are based on quoted market prices for identical securities traded in active markets that are readily and regularly available to us. The fair values of our pension plan investments classified as Level 2 are based on quoted prices for similar assets in markets that are not active, other inputs that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates, or other market-corroborated inputs.

401(k) Plan

The Company sponsors a 401(k) plan in which we match a portion of U.S. employees' contributions. The plan provides for salary reduction contributions by employees and, in 2016, 2015, and 2014, provided matching contributions by the Company of 50% of each employee's contributions which were not in excess of 6% of the employee's annual cash compensation.

On January 1, 2014, the Company began providing a nonelective contribution to the 401(k) plan of 2% of annual cash compensation for employees who elected to opt out of the future benefits of the U.S. defined benefit plan during the election period provided during the fourth quarter of 2013 and for new U.S. employees who started working for the Company after September 30, 2013.

The 401(k) contributions by the Company, included in acquisition and operating expenses in the consolidated statements of earnings, were $11 million in 2016, $9 million in 2015 and $7 million in 2014. The plan trustee held approximately one million shares of our common stock for plan participants at December 31, 2016.

Stock Bonus Plan

Aflac U.S. maintains a stock bonus plan for eligible U.S. sales associates. Plan participants receive shares of Aflac Incorporated common stock based on their new annualized premium sales and their first-year persistency of substantially all new insurance policies. The cost of this plan, which was capitalized as deferred policy acquisition costs, amounted to $31 million in 2016, compared with $34 million in 2015 and $36 million in 2014.
v3.6.0.2
COMMITMENTS AND CONTINGENT LIABILITIES
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES
COMMITMENTS AND CONTINGENT LIABILITIES
We have two outsourcing agreements with a technology and consulting corporation. The first agreement provides mainframe computer operations, distributed mid-range server computer operations, and related support for Aflac Japan. It has a remaining term of four years and an aggregate remaining cost of 36.7 billion yen ($315 million using the December 31, 2016, exchange rate). The second agreement provides application maintenance and development services for Aflac Japan. It has a remaining term of five years and an aggregate remaining cost of 11.9 billion yen ($102 million using the December 31, 2016, exchange rate).

We have an outsourcing agreement with a management consulting and technology services company to provide application maintenance and development services for our Japanese operation. The agreement has a remaining term of five years with an aggregate remaining cost of 15.4 billion yen ($132 million using the December 31, 2016, exchange rate).

We have two outsourcing agreements with information technology and data services companies to provide application maintenance and development services for our Japanese operation. The first agreement has a remaining term of three years with an aggregate remaining cost of 6.1 billion yen ($53 million using the December 31, 2016, exchange rate). The second agreement has a remaining term of one year with an aggregate remaining cost of 740 million yen ($6 million using the December 31, 2016, exchange rate).

As of December 31, 2016, we have commitments of $779 million to fund potential future loan originations related to our investment in middle market loans. These commitments are contingent upon the availability of middle market loans that meet our underwriting criteria. In addition, we had commitments of $19 million to fund potential future loan originations related to our investment in commercial mortgage loans. These commitments are contingent on the final underwriting and due diligence to be performed and may or may not be funded. See Note 3 of the Notes to the Consolidated Financial Statements for more details on these investment programs.

We lease office space and equipment under agreements that expire in various years through 2026. Future minimum lease payments due under non-cancelable operating leases at December 31, 2016, were as follows:

(In millions)
 
2017
$
62

2018
41

2019
18

2020
13

2021
11

Thereafter
0

   Total future minimum lease payments
$
145



We are a defendant in various lawsuits considered to be in the normal course of business. Members of our senior legal and financial management teams review litigation on a quarterly and annual basis. The final results of any litigation cannot be predicted with certainty. Although some of this litigation is pending in states where large punitive damages,
bearing little relation to the actual damages sustained by plaintiffs, have been awarded in recent years, we believe the outcome of pending litigation will not have a material adverse effect on our financial position, results of operations, or cash flows.
v3.6.0.2
UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA
UNAUDITED CONSOLIDATED QUARTERLY FINANCIAL DATA

In management's opinion, the following quarterly financial information fairly presents the results of operations for such periods and is prepared on a basis consistent with our annual audited financial statements.
 
(In millions, except for per-share amounts)
March 31,
2016
 
June 30,
2016
 
September 30,
2016
 
December 31,
2016
Net premium income
 
$
4,602

 
 
 
$
4,823

 
 
 
$
5,022

 
 
 
$
4,778

 
Net investment income
 
801

 
 
 
822

 
 
 
842

 
 
 
813

 
Realized investment gains (losses)
 
73

 
 
 
(187
)
 
 
 
(146
)
 
 
 
137

 
Other income (loss)
 
(25
)
 
 
 
(21
)
 
 
 
(2
)
 
 
 
227

 
Total revenues
 
5,451

 
 
 
5,437

 
 
 
5,716

 
 
 
5,955

 
Total benefits and expenses
 
4,334

 
 
 
4,603

 
 
 
4,753

 
 
 
4,802

 
Earnings before income taxes
 
1,117

 
 
 
834

 
 
 
963

 
 
 
1,153

 
Total income tax
 
386

 
 
 
286

 
 
 
334

 
 
 
402

 
Net earnings
 
$
731

 
 
 
$
548

 
 
 
$
629

 
 
 
$
751

 
Net earnings per basic share
 
$
1.75

 
 
 
$
1.33

 
 
 
$
1.54

 
 
 
$
1.85

 
Net earnings per diluted share
 
1.74

 
 
 
1.32

 
 
 
1.53

 
 
 
1.84

 
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions, except for per-share amounts)
March 31,
2015
 
June 30,
2015
 
September 30,
2015
 
December 31,
2015
Net premium income
 
$
4,432

 
 
 
$
4,364

 
 
 
$
4,380

 
 
 
$
4,394

 
Net investment income
 
782

 
 
 
777

 
 
 
784

 
 
 
792

 
Realized investment gains (losses)
 
13

 
 
 
127

 
 
 
(114
)
 
 
 
114

 
Other income (loss)
 
(1
)
 
 
 
19

 
 
 
(10
)
 
 
 
19

 
Total revenues
 
5,226

 
 
 
5,287

 
 
 
5,040

 
 
 
5,319

 
Total benefits and expenses
 
4,213

 
 
 
4,413

 
 
 
4,176

 
 
 
4,209

 
Earnings before income taxes
 
1,013

 
 
 
874

 
 
 
864

 
 
 
1,110

 
Total income tax
 
350

 
 
 
301

 
 
 
297

 
 
 
380

 
Net earnings
 
$
663

 
 
 
$
573

 
 
 
$
567

 
 
 
$
730

 
Net earnings per basic share
 
$
1.52

 
 
 
$
1.33

 
 
 
$
1.32

 
 
 
$
1.72

 
Net earnings per diluted share
 
1.51

 
 
 
1.32

 
 
 
1.32

 
 
 
1.71

 

Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
v3.6.0.2
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

In January 2017, the Parent Company issued 60.0 billion yen of senior notes through a U.S. public debt offering. The notes bear interest at a fixed rate of .932% per annum, payable semi-annually, and have a 10-year maturity. 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.
v3.6.0.2
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Aflac Incorporated (Parent Only)
Condensed Statements of Earnings
 
Years ended December 31,
(In millions)
2016
    
2015
    
2014
Revenues:
 
 
 
    
 
 
 
    
 
 
 
   Dividends from subsidiaries(1)
 
$
2,020

 
    
 
$
2,393

 
    
 
$
1,483

 
   Management and service fees from subsidiaries(1)
 
265

 
    
 
260

 
    
 
272

 
   Net investment income
 
18

 
    
 
22

 
    
 
13

 
   Interest from subsidiaries(1)
 
5

 
    
 
6

 
    
 
6

 
   Realized investment gains (losses)
 
84

 
    
 
86

 
    
 
45

 
   Change in fair value of the cross-currency interest rate swaps
 
(159
)
 
    
 
(53
)
 
    
 
314

 
   Other income (loss)
 
0

 
    
 
0

 
    
 
(11
)
 
     Total revenues
 
2,233

 
    
 
2,714

 
    
 
2,122

 
Operating expenses:
 
 
 
    
 
 
 
    
 
 
 
   Interest expense
 
213

 
    
 
231

 
    
 
243

 
   Other operating expenses
 
277

(2) 
    
 
321

(2) 
    
 
88

 
     Total operating expenses
 
490

 
    
 
552

 
    
 
331

 
   Earnings before income taxes and equity in undistributed earnings of
subsidiaries
 
1,743

 
    
 
2,162

 
    
 
1,791

 
Income tax expense (benefit):
 
 
 
    
 
 
 
    
 
 
 
   Current
 
3

 
    
 
2

 
    
 
1

 
   Deferred
 
(105
)
 
    
 
(82
)
 
    
 
120

 
     Total income taxes
 
(102
)
 
    
 
(80
)
 
    
 
121

 
   Earnings before equity in undistributed earnings of subsidiaries
 
1,845

 
    
 
2,242

 
    
 
1,670

 
Equity in undistributed earnings of subsidiaries(1)
 
814

 
    
 
291

 
    
 
1,281

 
     Net earnings
 
$
2,659

 
    
 
$
2,533

 
    
 
$
2,951

 
(1)Eliminated in consolidation
(2)Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Statements of Comprehensive Income (Loss)
  
Years ended December 31,
(In millions)
2016
 
2015
 
2014
Net earnings
 
$
2,659

 
 
 
$
2,533

 
 
 
$
2,951

 
Other comprehensive income (loss) before income taxes:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation gains (losses)
during period - parent only
 
0

 
 
 
3

 
 
 
39

 
Equity in unrealized foreign currency translation gains (losses) of
subsidiaries during period
 
283

 
 
 
357

 
 
 
(1,494
)
 
Unrealized gains (losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on investment securities
during period - parent only
 
2

 
 
 
(8
)
 
 
 
9

 
Equity in unrealized holding gains (losses) on investment securities
held by subsidiaries during period
 
2,850

 
 
 
(2,526
)
 
 
 
5,938

 
Equity in reclassification adjustment for realized (gains) losses of
subsidiaries included in net earnings
 
(53
)
 
 
 
(61
)
 
 
 
(54
)
 
Unrealized gains (losses) on derivatives during period
 
3

 
 
 
0

 
 
 
(17
)
 
Pension liability adjustment during period
 
(45
)
 
 
 
(20
)
 
 
 
(76
)
 
Total other comprehensive income (loss) before
income taxes
 
3,040

 
 
 
(2,255
)
 
 
 
4,345

 
Income tax expense (benefit) related to items of other comprehensive
income (loss)
 
1,035

 
 
 
(901
)
 
 
 
1,803

 
Other comprehensive income (loss), net of income taxes
 
2,005

 
 
 
(1,354
)
 
 
 
2,542

 
Total comprehensive income (loss)
 
$
4,664

 
 
 
$
1,179

 
 
 
$
5,493

 

See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Balance Sheets
  
December 31,
(In millions, except for share and per-share amounts)
2016
 
2015
Assets:
 
 
 
 
 
 
 
Investments and cash:
 
 
 
 
 
 
 
Fixed maturity securities available for sale, at fair value
(amortized cost $483 in 2016 and $481 in 2015)
 
$
496

 
 
 
$
493

 
Investments in subsidiaries(1)
 
23,353

 
 
 
20,500

 
Other investments
 
3

 
 
 
9

 
Cash and cash equivalents
 
2,037

 
 
 
1,721

 
Total investments and cash
 
25,889

 
 
 
22,723

 
Due from subsidiaries(1)
 
75

 
 
 
113

 
Income taxes receivable
 
103

 
 
 
0

 
Other assets
 
497

 
 
 
542

 
Total assets
 
$
26,564

 
 
 
$
23,378

 
 
 
 
 
 
 
 
 
Liabilities and shareholders' equity:
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
Income taxes
 
$
0

 
 
 
$
8

 
Employee benefit plans
 
293

 
 
 
274

 
Notes payable
 
5,339

 
 
 
4,968

 
Other liabilities
 
450

 
 
 
420

 
Total liabilities
 
6,082

 
 
 
5,670

 
Shareholders' equity:
 
 
 
 
 
 
 
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in
2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015
 
67

 
 
 
67

 
Additional paid-in capital
 
1,976

 
 
 
1,828

 
Retained earnings
 
25,981

 
 
 
24,007

 
Accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
Unrealized foreign currency translation gains
 
(1,983
)
 
 
 
(2,196
)
 
Unrealized gains (losses) on investment securities
 
4,805

 
 
 
2,986

 
Unrealized gains (losses) on derivatives
 
(24
)
 
 
 
(26
)
 
Pension liability adjustment
 
(168
)
 
 
 
(139
)
 
Treasury stock, at average cost
 
(10,172
)
 
 
 
(8,819
)
 
Total shareholders' equity
 
20,482

 
 
 
17,708

 
Total liabilities and shareholders' equity
 
$
26,564

 
 
 
$
23,378

 

(1)Eliminated in consolidation
Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.
See the accompanying Notes to Condensed Financial Statements.
See the accompanying Report of Independent Registered Public Accounting Firm.
SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Aflac Incorporated (Parent Only)
Condensed Statements of Cash Flows
  
Years ended December 31,
(In millions)
2016
 
2015
 
2014
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
$
2,659

 
 
 
$
2,533

 
 
 
$
2,951

 
Adjustments to reconcile net earnings to net cash provided from
operating activities:
 
 
 
 
 
 
 
 
 
 
 
              Equity in undistributed earnings of subsidiaries(1)
 
(814
)
 
 
 
(291
)
 
 
 
(1,281
)
 
 Change in income tax liabilities
 
(112
)
 
 
 
6

 
 
 
115

 
 Other, net
 
406

(2) 
 
 
149

(2) 
 
 
(72
)
 
Net cash provided (used) by operating activities
 
2,139

 
 
 
2,397

 
 
 
1,713

 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities sold
 
225

 
 
 
121

 
 
 
38

 
Fixed maturity securities purchased
 
(229
)
 
 
 
(202
)
 
 
 
(105
)
 
Other investments sold (purchased)
 
6

 
 
 
14

 
 
 
291

 
Settlement of derivatives
 
0

 
 
 
147

 
 
 
(1
)
 
Additional capitalization of subsidiaries(1)
 
(36
)
 
 
 
(43
)
 
 
 
0

 
Other, net
 
(25
)
 
 
 
0

 
 
 
0

 
Net cash provided (used) by investing activities
 
(59
)
 
 
 
37

 
 
 
223

 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Purchases of treasury stock
 
(1,422
)
 
 
 
(1,315
)
 
 
 
(1,210
)
 
Proceeds from borrowings
 
986

 
 
 
998

 
 
 
750

 
Principal payments under debt obligations
 
(621
)
 
 
 
(1,272
)
 
 
 
(335
)
 
Dividends paid to shareholders
 
(658
)
 
 
 
(656
)
 
 
 
(654
)
 
Treasury stock reissued
 
46

 
 
 
36

 
 
 
33

 
Proceeds from exercise of stock options
 
36

 
 
 
47

 
 
 
23

 
       Net change in amount due to/from subsidiaries(1)
 
(6
)
 
 
 
43

 
 
 
14

 
Other, net
 
(125
)
(2) 
 
 
(232
)
(2) 
 
 
0

 
Net cash provided (used) by financing activities
 
(1,764
)
 
 
 
(2,351
)
 
 
 
(1,379
)
 
Net change in cash and cash equivalents
 
316

 
 
 
83

 
 
 
557

 
Cash and cash equivalents, beginning of period
 
1,721

 
 
 
1,638

 
 
 
1,081

 
Cash and cash equivalents, end of period
 
$
2,037

 
 
 
$
1,721

 
 
 
$
1,638

 

(1)Eliminated in consolidation
(2)Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
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)
2016
 
2015
2.65% senior notes due February 2017
 
$
649

 
  
 
$
651

 
2.40% senior notes due March 2020
 
547

 
 
 
546

 
4.00% senior notes due February 2022
 
348

 
 
 
348

 
3.625% senior notes due June 2023
 
696

 
 
 
696

 
3.625% senior notes due November 2024
 
745

 
 
 
744

 
3.25% senior notes due March 2025
 
445

 
 
 
445

 
2.875% senior notes due October 2026
 
298

 
 
 
0

 
6.90% senior notes due December 2039
 
220

 
 
 
393

 
6.45% senior notes due August 2040
 
254

 
 
 
445

 
4.00% senior notes due October 2046
 
394

 
 
 
0

 
5.50% subordinated debentures due September 2052
 
486

 
 
 
486

 
Yen-denominated Uridashi notes:
 
 
 
 
 
 
 
2.26% notes paid September 2016 (principal amount 10 billion yen)
 
0

  
  
 
83

  
Yen-denominated Samurai notes:
 
 
 
 
 
 
 
1.84% notes paid July 2016 (principal amount 15.8 billion yen)
 
0

 
 
 
131

 
Yen-denominated loans:
 
 
 
 
 
 
 
Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0
billion yen)
 
43

  
  
 
0

  
Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0
billion yen)
 
214

  
  
 
0

  
Total notes payable
 
$
5,339

  
  
 
$
4,968

  

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.
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.

During 2009, Aflac Japan bought on the open market 2.0 billion yen of yen-denominated Uridashi notes issued by the Parent Company. These notes were redeemed in September 2016. In consolidation, those notes were extinguished; however, they remained an outstanding liability for the Parent Company until their maturity date.

The aggregate contractual maturities of notes payable during each of the years after December 31, 2016, are as follows:
(In millions)
 
 
2017
$
650

 
2018
0

 
2019
0

 
2020
550

 
2021
43

 
Thereafter
4,145

 
Total
$
5,388

 


For further information regarding notes payable, see Note 9 of the Notes to the Consolidated Financial Statements.
(B) Derivatives
At December 31, 2016, the Parent Company's outstanding freestanding derivative contracts were swaps associated with our notes payable, consisting of cross-currency interest rate swaps, also referred to as foreign currency swaps, associated with our senior notes due in February 2017, March 2020, February 2022, June 2023, November 2024 and March 2025, and subordinated debentures due in September 2052. We do not use derivative financial instruments for trading purposes, nor do we 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)
2016
 
2015
 
2014
Interest paid
 
$
209

 
 
 
$
235

 
 
 
$
241

 
Noncash financing activities:
 
 
 
 
 
 
 
 
 
 
 
Treasury stock issued for shareholder dividend reinvestment
 
26

 
 
 
26

 
 
 
26

 
v3.6.0.2
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION
 12 Months Ended
Dec. 31, 2016
Supplementary Insurance Information [Abstract]  
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION
SCHEDULE III
SUPPLEMENTARY INSURANCE INFORMATION
Aflac Incorporated and Subsidiaries
Years ended December 31,
(In millions)
Deferred Policy
Acquisition
Costs
 
Future Policy
Benefits & Unpaid
Policy Claims
 
Unearned
Premiums
 
Other
Policyholders'
Funds
2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
5,765

 
 
 
$
70,684

 
 
 
$
6,798

 
 
 
$
6,659

 
Aflac U.S.
 
3,228

 
 
 
10,094

 
 
 
118

 
 
 
0

 
All other
 
0

 
 
 
91

 
 
 
0

 
 
 
0

 
Intercompany eliminations
 
0

 
 
 
(718
)
 
 
 
0

 
 
 
0

 
Total
 
$
8,993

 
 
 
$
80,151

 
 
 
$
6,916

 
 
 
$
6,659

 
2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
5,370

 
 
 
$
64,437

 
 
 
$
7,739

 
 
 
$
6,285

 
Aflac U.S.
 
3,141

 
 
 
9,696

 
 
 
118

 
 
 
0

 
All other
 
0

 
 
 
43

 
 
 
0

 
 
 
0

 
Intercompany eliminations
 
0

 
 
 
(687
)
 
 
 
0

 
 
 
0

 
Total
 
$
8,511

 
 
 
$
73,489

 
 
 
$
7,857

 
 
 
$
6,285

 
Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding.
Years Ended December 31,
(In millions)
Net
Premium
Revenue
 
Net
Investment
Income
 
Benefits and
Claims, net
 
Amortization of
Deferred Policy
Acquisition Costs
 
Other
Operating
Expenses
 
Premiums
Written
2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
$
13,537

 
 
$
2,554

 
 
 
$
9,828

 
 
 
$
644

 
 
 
$
2,326

 
 
$
12,762

Aflac U.S.
5,454

 
 
703

 
 
 
2,869

 
 
 
497

 
 
 
1,593

 
 
5,452

All other
234

 
 
21

 
 
 
222

 
 
 
0

 
 
 
513

 
 
0

Total
$
19,225

 
 
$
3,278

 
 
 
$
12,919

 
 
 
$
1,141

 
 
 
$
4,432

 
 
$
18,214

2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
$
12,046

 
 
$
2,436

 
 
 
$
8,705

 
 
 
$
578

 
 
 
$
2,055

 
 
$
11,740

Aflac U.S.
5,347

 
 
678

 
 
 
2,873

 
 
 
488

 
 
 
1,570

 
 
5,343

All other
177

 
 
21

 
 
 
168

 
 
 
0

 
 
 
573

 
 
0

Total
$
17,570

 
 
$
3,135

 
 
 
$
11,746

 
 
 
$
1,066

 
 
 
$
4,198

 
 
$
17,083

2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
$
13,861

 
 
$
2,662

 
 
 
$
10,084

 
 
 
$
649

 
 
 
$
2,364

 
 
$
13,352

Aflac U.S.
5,211

 
 
645

 
 
 
2,853

 
 
 
459

 
 
 
1,474

 
 
5,198

All other
0

 
 
12

 
 
 
0

 
 
 
0

 
 
 
354

 
 
0

Total
$
19,072

 
 
$
3,319

 
 
 
$
12,937

 
 
 
$
1,108

 
 
 
$
4,192

 
 
$
18,550


Segment amounts may not agree in total to the corresponding consolidated amounts due to rounding.
See the accompanying Report of Independent Registered Public Accounting Firm.
v3.6.0.2
SCHEDULE IV REINSURANCE
 12 Months Ended
Dec. 31, 2016
Reinsurance Disclosures [Abstract]  
SCHEDULE IV REINSURANCE
SCHEDULE IV
REINSURANCE
Aflac Incorporated and Subsidiaries
Years Ended December 31,
(In millions)
Gross
Amount
 
Ceded to
Other
Companies
 
Assumed
from Other
companies
 
Net
Amount
 
Percentage
of Amount
Assumed
to Net
2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life insurance in force
$
151,093

 
 
$
3,741

 
 
 
$
0

 
 
$
147,352

 
 
0
%
 
Premiums:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Health insurance
$
14,839

 
 
$
595

 
 
 
$
241

 
 
$
14,485

 
 
1
%
 
Life insurance
4,753

 
 
13

 
 
 
0

 
 
4,740

 
 
0

 
Total earned premiums
$
19,592

 
 
$
608

 
 
 
$
241

 
 
$
19,225

 
 
1
%
 
2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life insurance in force
$
146,610

 
 
$
3,547

 
 
 
$
0

 
 
$
143,063

 
 
0
%
 
Premiums:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Health insurance
$
13,604

 
 
$
509

 
 
 
$
186

 
 
$
13,281

 
 
1
%
 
Life insurance
4,300

 
 
11

 
 
 
0

 
 
4,289

 
 
0

 
Total earned premiums
$
17,904

 
 
$
520

 
 
 
$
186

 
 
$
17,570

 
 
1
%
 
2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life insurance in force
$
144,374

 
 
$
3,298

 
 
 
$
0

 
 
$
141,076

 
 
0
%
 
Premiums:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Health insurance
$
14,648

 
 
$
339

 
 
 
$
10

 
 
$
14,319

 
 
0
%
 
Life insurance
4,764

 
 
11

 
 
 
0

 
 
4,753

 
 
0

 
Total earned premiums
$
19,412

 
 
$
350

 
 
 
$
10

 
 
$
19,072

 
 
0
%
 

Premiums by type may not agree in total to the corresponding consolidated amounts due to rounding.
See the accompanying Report of Independent Registered Public Accounting Firm.
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business and Basis of Presentation
Description of Business 
Aflac Incorporated (the Parent Company) and its subsidiaries (collectively, the Company) primarily sell supplemental health and life insurance in the United States and Japan. The Company's insurance business is marketed and administered through American Family Life Assurance Company of Columbus (Aflac), which operates in the United States (Aflac U.S.) and as a branch in Japan (Aflac Japan). American Family Life Assurance Company of New York (Aflac New York) is a wholly owned subsidiary of Aflac. Most of Aflac's policies are individually underwritten and marketed through independent agents. Additionally, Aflac U.S. markets and administers group products through Continental American Insurance Company (CAIC), branded as Aflac Group Insurance. Our insurance operations in the United States and our branch in Japan service the two markets for our insurance business. Aflac Japan's revenues, including realized gains and losses on its investment portfolio, accounted for 71% of the Company's total revenues in 2016, compared with 70% in 2015 and 72% in 2014. The percentage of the Company's total assets attributable to Aflac Japan was 83% at both December 31, 2016 and 2015.

Basis of Presentation
We prepare our financial statements in accordance with U.S. generally accepted accounting principles (GAAP). These principles are established primarily by the Financial Accounting Standards Board (FASB). In these Notes to the Consolidated Financial Statements, references to U.S. GAAP issued by the FASB are derived from the FASB Accounting Standards CodificationTM (ASC). The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates when recording transactions resulting from business operations based on currently available information. The most significant items on our balance sheet that involve a greater degree of accounting estimates and actuarial determinations subject to changes in the future are the valuation of investments, deferred policy acquisition costs, liabilities for future policy benefits and unpaid policy claims, and income taxes. These accounting estimates and actuarial determinations are sensitive to market conditions, investment yields, mortality, morbidity, commission and other acquisition expenses, and terminations by policyholders. As additional information becomes available, or actual amounts are determinable, the recorded estimates will be revised and reflected in operating results. Although some variability is inherent in these estimates, we believe the amounts provided are adequate.

The consolidated financial statements include the accounts of the Parent Company, its subsidiaries and those entities required to be consolidated under applicable accounting standards. All material intercompany accounts and transactions have been eliminated.
Translation of Foreign Currencies
Translation of Foreign Currencies: The functional currency of Aflac Japan's insurance operations is the Japanese yen. We translate our yen-denominated financial statement accounts into U.S. dollars as follows. Assets and liabilities are translated at end-of-period exchange rates. Realized gains and losses on security transactions are translated at the exchange rate on the trade date of each transaction. Other revenues, expenses and cash flows are translated using average exchange rates for the period. The resulting currency translation adjustments are reported in accumulated other comprehensive income. We include in earnings the realized currency exchange gains and losses resulting from foreign currency transactions.

We have designated a majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated foreign currency forwards and options as derivative hedges of the foreign currency exposure of our investment in Aflac Japan. Outstanding principal and related accrued interest on these Parent Company liabilities and the fair value of these derivatives are translated into U.S. dollars at end-of-period exchange rates. Currency translation adjustments and changes in the fair value of these derivatives are recorded as unrealized foreign currency translation gains (losses) in other comprehensive income and are included in accumulated other comprehensive income.
Insurance Revenue and Expense Recognition
Insurance Revenue and Expense Recognition: The supplemental health and life insurance policies we issue are classified as long-duration contracts. The contract provisions generally cannot be changed or canceled during the contract period; however, we may adjust premiums for supplemental health policies issued in the United States within prescribed guidelines and with the approval of state insurance regulatory authorities.

Insurance premiums for most of the Company's health and life policies, including cancer, accident, hospital, critical illness, dental, vision, term life, whole life, long-term care and disability, are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. When revenues are reported, the related amounts of benefits and expenses are charged against such revenues, so that profits are recognized in proportion to premium revenues during the period the policies are expected to remain in force. This association is accomplished by means of annual additions to the liability for future policy benefits and the deferral and subsequent amortization of policy acquisition costs.

Premiums from the Company's products with limited-pay features, including term life, whole life, WAYS, and child endowment, are collected over a significantly shorter period than the period over which benefits are provided. Premiums for these products are recognized as revenue over the premium-paying periods of the contracts when due from policyholders. Any gross premium in excess of the net premium is deferred and recorded in earnings, such that profits are recognized in a constant relationship with insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net premium method.

At the policyholder's option, customers can also pay discounted advanced premiums for certain of our products. Advanced premiums are deferred and recognized when due from policyholders over the regularly scheduled premium payment period.

The calculation of deferred policy acquisition costs (DAC) and the liability for future policy benefits requires the use of estimates based on sound actuarial valuation techniques. For new policy issues, we review our actuarial assumptions and deferrable acquisition costs each year and revise them when necessary to more closely reflect recent experience and studies of actual acquisition costs. For policies in force, we evaluate DAC by major product groupings to determine that they are recoverable from future revenues, and any amounts determined not to be recoverable are charged against net earnings. We have not had any material charges to earnings for DAC that was determined not to be recoverable in any of the years presented in this Form 10-K.

Advertising expense is reported as incurred in insurance expenses in the consolidated statements of earnings.
Cash and Cash Equivalents
Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, money market instruments and other debt instruments with a maturity of 90 days or less when purchased.
Investments
Investments: Our debt securities consist of fixed-maturity securities, which are classified as either held to maturity or available for sale. Securities classified as held to maturity are securities that we have the ability and intent to hold to maturity or redemption and are carried at amortized cost. All other fixed-maturity debt securities, our perpetual securities and our equity securities are classified as available for sale and are carried at fair value. If the fair value is higher than the amortized cost for debt and perpetual securities, or the purchase cost for equity securities, the excess is an unrealized gain, and if lower than cost, the difference is an unrealized loss. The net unrealized gains and losses on securities available for sale, plus the unamortized unrealized gains and losses on debt securities transferred to the held-to-maturity portfolio, less related deferred income taxes, are recorded through other comprehensive income and included in accumulated other comprehensive income.

Amortized cost of debt and perpetual securities is based on our purchase price adjusted for accrual of discount, or amortization of premium, and recognition of impairment charges, if any. The amortized cost of debt and perpetual securities we purchase at a discount or premium will equal the face or par value at maturity or the call date, if applicable. Interest is reported as income when earned and is adjusted for amortization of any premium or discount.

We have investments in variable interest entities (VIEs). Criteria for evaluating VIEs for consolidation focuses on identifying which enterprise has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. We are the primary beneficiary of certain VIEs, and therefore consolidate these entities in our financial statements. While the VIEs generally operate within a defined set of documents, there are certain powers that are retained by us that are considered significant in our conclusion that we are the primary beneficiary. These powers vary by structure but generally include the initial selection of the underlying collateral or, for collateralized debt obligations (CDOs), the reference credits to include in the structure; the ability to obtain the underlying collateral in the event of default; and the ability to appoint or dismiss key parties in the structure. In particular, our powers surrounding the underlying collateral were considered to be the most significant powers since those most significantly impact the economics of the VIE. We have no obligation to provide any continuing financial support to any of the entities in which we are the primary beneficiary. Our maximum loss is limited to our original investment. Neither we nor any of our creditors have the ability to obtain the underlying collateral, nor do we have control over the instruments in the VIEs, unless there is an event of default. For those entities where we are the primary beneficiary, the assets consolidated are fixed-maturity securities, perpetual securities, equity securities, and derivative instruments; collateral consisting of these asset classes is reported separately with the caption "- consolidated variable interest entities" on our balance sheet.

For the mortgage- and asset-backed securities held in our fixed maturities portfolio, we recognize income using a constant effective yield, which is based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in mortgage- and asset-backed securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition. This adjustment is reflected in net investment income.

We use the specific identification method to determine the gain or loss from securities transactions and report the realized gain or loss in the consolidated statements of earnings. Securities transactions are accounted for based on values as of the trade date of the transaction.

An investment in a fixed maturity, perpetual security or equity security is impaired if the fair value falls below book value. We regularly review our entire investment portfolio for declines in value. Our fixed maturities and investment-grade perpetual securities investments are evaluated for other-than-temporary impairment using our debt impairment model. Our debt impairment model focuses on the ultimate collection of the cash flows from our investments and whether we have the intent to sell or if it is more likely than not we would be required to sell the security prior to recovery of its amortized cost. The determination of the amount of impairments under this model is based upon our periodic evaluation and assessment of known and inherent risks associated with the respective securities. Such evaluations and assessments are revised as conditions change and new information becomes available.
When determining our intention to sell a security prior to recovery of its fair value to amortized cost, we evaluate facts and circumstances such as, but not limited to, future cash flow needs, decisions to reposition our security portfolio, and risk profile of individual investment holdings. We perform ongoing analyses of our liquidity needs, which includes cash flow testing of our policy liabilities, debt maturities, projected dividend payments and other cash flow and liquidity needs. Our cash flow testing includes extensive duration analysis of our investment portfolio and policy liabilities. Based on our analyses, we have concluded that we have sufficient excess cash flows to meet our liquidity needs without selling any of our investments prior to their maturity.

The determination of whether an impairment in value of our debt securities is other than temporary is based largely on our evaluation of the issuer's creditworthiness. We must apply considerable judgment in determining the likelihood of the security recovering in value while we own it. Factors that may influence this include the overall level of interest rates, credit spreads, the credit quality of the underlying issuer, and other factors. This process requires consideration of risks which can be controlled to a certain extent, such as credit risk, and risks which cannot be controlled, such as interest rate risk and foreign currency risk.

If, after monitoring and analyses, management believes that fair value will not recover to amortized cost prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once a security is considered to be other-than-temporarily impaired, the impairment loss is separated into two separate components: the portion of the impairment related to credit and the portion of the impairment related to factors other than credit. We recognize a charge to earnings for the credit-related portion of other-than-temporary impairments. Impairments related to factors other than credit are charged to earnings in the event we intend to sell the security prior to the recovery of its amortized cost or if it is more likely than not that we would be required to dispose of the security prior to recovery of its amortized cost; otherwise, non-credit-related other-than-temporary impairments are charged to other comprehensive income.

Our investments in perpetual securities that are rated below investment grade and equity securities are evaluated for other-than-temporary impairment under our equity impairment model. Our equity impairment model focuses on the severity of a security's decline in fair value coupled with the length of time the fair value of the security has been below amortized cost and the financial condition and near-term prospects of the issuer. For equity securities that have declines in value that are deemed to be temporary, we make an assertion as to our ability and intent to retain the security until recovery. Once identified, these equity securities are restricted from trading unless authorized based upon significant events that could not have been foreseen at the time we asserted our ability and intent to retain the security until recovery.

If management believes that the equity security will not recover prior to the disposal of the security, we recognize an other-than-temporary impairment of the security. Once an equity security is considered to be other-than-temporarily impaired, its fair value on that date becomes the new cost basis and the impairment loss is recognized in earnings.

We lend fixed-maturity securities to financial institutions in short-term security lending transactions. These securities continue to be carried as investment assets on our balance sheet during the terms of the loans and are not reported as sales. We receive cash or other securities as collateral for such loans. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral.

Other investments include policy loans, middle market loans, commercial mortgage loans, and other short-term investments with maturities of one year or less, but greater than 90 days, at the time of purchase. We invest in middle market loans through participation rights, and commercial mortgage loans that are accounted for as loan receivables and recorded at amortized cost on the acquisition date. Since we have the intent and ability to hold these loan receivables for the foreseeable future or until they mature, they are considered held for investment and are carried at adjusted amortized cost in the other investments line on our consolidated balance sheets. The adjusted amortized cost of the loan receivables reflects allowances for expected incurred losses estimated based on past events and current economic conditions as of each reporting date. Other short-term investments are stated at amortized cost, which approximates estimated fair value.
Derivatives and Hedging
Derivatives and Hedging: Freestanding derivative instruments are reported in the consolidated balance sheet at fair value and are reported in other assets and other liabilities, with changes in value reported in earnings and/or other comprehensive income. These freestanding derivatives are interest rate swaps, foreign currency swaps, credit default swaps (CDSs), foreign currency forwards, foreign currency options, and options on interest rate swaps (or interest rate swaptions). Interest rate and foreign currency swaps are used within VIEs to hedge the risk arising from interest rate and currency exchange risk, while the CDSs are used to increase the yield and improve the diversification of the portfolio. Foreign currency forwards and options are used in hedging foreign exchange risk on U.S. dollar-denominated investments in Aflac Japan's portfolio. Foreign currency forwards and options are used to hedge certain portions of forecasted cash flows denominated in yen. Interest rate swaps are used to hedge the variability of interest cash flows associated with our variable interest rate notes. Cross-currency interest rate swaps, also referred to as foreign currency swaps, are used to economically convert certain U.S. dollar-denominated note obligations into yen-denominated principal and interest obligations. Interest rate swaptions have been used to hedge interest rate risk for certain U.S. dollar-denominated available-for-sale securities. We do not use derivatives for trading purposes, nor do we engage in leveraged derivative transactions.

From time to time, we purchase certain investments that contain an embedded derivative. We assess whether this embedded derivative is clearly and closely related to the asset that serves as its host contract. If we deem that the embedded derivative's terms are not clearly and closely related to the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the derivative is separated from that contract, held at fair value and reported with the host instrument in the consolidated balance sheet, with changes in fair value reported in earnings. If we have elected the fair value option, the embedded derivative is not bifurcated, and the entire investment is held at fair value with changes in fair value reported in earnings.

For those relationships where we seek hedge accounting, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objectives and strategies for undertaking various hedge transactions. This process includes linking derivatives and non-derivative financial instruments that are designated as hedges to specific assets or liabilities on the balance sheet. We also assess, both at inception and on an ongoing basis, whether the derivatives and non-derivative financial instruments used in hedging activities are highly effective in offsetting changes in fair values or cash flows of the hedged items. The assessment of hedge effectiveness determines the accounting treatment of noncash changes in fair value.

Changes in the fair value of any of our derivatives that are designated and qualify as cash flow hedges are recorded in other comprehensive income as long as they are deemed effective. Any hedge ineffectiveness is recorded immediately in current period earnings within derivative and other gains (losses). Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of earnings in which the cash flows of the hedged item are recorded.
Changes in the estimated fair value of derivative instruments that are designated and qualify as fair value hedges, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses).

We have designated the majority of the Parent Company's yen-denominated liabilities (notes payable and yen-denominated loans) as non-derivative hedges and designated certain derivatives as hedges of the foreign currency exposure to our investment in Aflac Japan. At the beginning of each quarter, we make our net investment hedge designation. If the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective, and the exchange effect on the yen-denominated liabilities and the change in estimated fair value of the derivatives are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses).

Derivatives that are not designated as hedges are carried at fair value with all changes in fair value recorded in current period earnings within derivative and other gains (losses). We include the fair value of all freestanding derivatives in either other assets or other liabilities on the balance sheet.

We receive and pledge cash or other securities as collateral on open derivative positions. Cash received as collateral is reported as an asset with a corresponding liability for the return of the collateral. Cash pledged as collateral is recorded as a reduction to cash, and a corresponding receivable is recognized for the return of the cash collateral. We generally can repledge or resell collateral obtained by us, although we do not typically exercise such rights. Securities received as collateral are not recognized unless we were to exercise our right to sell that collateral or exercise remedies on that collateral upon a counterparty default. Securities that we have pledged as collateral continue to be carried as investment assets on our balance sheet.
Freestanding derivatives are carried at estimated fair value in our consolidated balance sheets either as other assets or as other liabilities. See Note 5 for a discussion on how we determine the fair value of our derivatives. Accruals on derivatives are typically recorded in accrued investment income or within other liabilities in the consolidated balance sheets.
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are generally reported within derivative and other gains(losses), which is a component of realized investment gains (losses). The fluctuations in estimated fair value of derivatives that have not been designated for hedge accounting can result in volatility in net earnings.
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. At the inception of the hedging relationship for hedges we elect to designate for hedge accounting treatment, we formally document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking each hedge transaction. We document the designation of each hedge as either (i) a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability or the hedge of a forecasted transaction ("cash flow hedge"); (ii) a hedge of the estimated fair value of a recognized asset or liability ("fair value hedge"); or (iii) a hedge of a net investment in a foreign operation. The documentation process includes linking derivatives and nonderivatives that are designated as hedges to specific assets or groups of assets or liabilities on the statement of financial position or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. At the hedge's inception and on an ongoing quarterly basis, we also formally assess whether the derivatives that are used in hedging transactions have been, and are expected to continue to be, highly effective in offsetting their designated risk. Hedge effectiveness is assessed using qualitative and quantitative methods.
For assessing hedge effectiveness of cash flow hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in cash flows associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships on our VIE cash flow hedges is measured each reporting period using the “Hypothetical Derivative Method.” For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings within derivative and other gains (losses). All components of each derivative's gain or loss are included in the assessment of hedge effectiveness.
For assessing hedge effectiveness of fair value hedges, qualitative methods may include the comparison of critical terms of the derivative to the hedged item, and quantitative methods may include regression or other statistical analysis of changes in fair value associated with the hedge relationship. Hedge ineffectiveness of the hedge relationships is measured each reporting period using the dollar offset method. For derivative instruments that are designated and qualify as fair value hedges, changes in the estimated fair value of the derivative, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported in current earnings within derivative and other gains (losses). When assessing the effectiveness of our fair value hedges, we exclude the changes in fair value related to the difference between the spot and the forward rate on our foreign currency forwards and the time value of options.
For the hedge of our net investment in Aflac Japan, we have designated Parent Company yen-denominated liabilities as non-derivative hedging instruments and have designated certain foreign currency forwards and options as derivative hedging instruments. We make our net investment hedge designation at the beginning of each quarter. For assessing hedge effectiveness of net investment hedges, if the total of the designated Parent Company non-derivative and derivatives notional is equal to or less than our net investment in Aflac Japan, the hedge is deemed to be effective. If the hedge is effective, the related exchange effect on the yen-denominated liabilities is reported in the unrealized foreign currency component of other comprehensive income. For derivatives designated as net investment hedges, Aflac follows the forward-rate method. According to that method, all changes in fair value, including changes related to the forward-rate component of foreign currency forward contracts and the time value of foreign currency options, are reported in the unrealized foreign currency component of other comprehensive income. Should these designated net investment hedge positions exceed our net investment in Aflac Japan, the foreign exchange effect on the portion that exceeds our investment in Aflac Japan would be recognized in current earnings within derivative and other gains (losses).
We discontinue hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated cash flows or fair value of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised.
When hedge accounting is discontinued on a cash flow hedge or fair value hedge, the derivative is carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized in current period earnings. For discontinued cash flow hedges, including those where the derivative is sold, terminated or exercised, amounts previously deferred in other comprehensive income (loss) are reclassified into earnings when earnings are impacted by the cash flow of the hedged item.

Deferred Policy Acquisition Costs
Deferred Policy Acquisition Costs: Certain direct and incremental costs of acquiring new business are deferred and amortized with interest over the premium payment periods in proportion to the ratio of annual premium income to total anticipated premium income. Anticipated premium income is estimated by using the same mortality, persistency and interest assumptions used in computing liabilities for future policy benefits. In this manner, the related acquisition expenses are matched with revenues. Deferred costs include the excess of current-year commissions over ultimate renewal-year commissions and certain incremental direct policy issue, underwriting and sales expenses. All of these incremental costs are directly related to successful policy acquisition.

For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. The Company performs a two-stage analysis of the internal replacements to determine if the modification is substantive to the base policy. The stages of evaluation are as follows: 1) determine if the modification is integrated with the base policy, and 2) if it is integrated, determine if the resulting contract is substantially changed.
For internal replacement transactions where the resulting contract is substantially unchanged, the policy is accounted for as a continuation of the replaced contract. Unamortized deferred acquisition costs from the original policy continue to be amortized over the expected life of the new policy, and the costs of replacing the policy are accounted for as policy maintenance costs and expensed as incurred. Examples include conversions of same age bands, certain family coverage changes, pricing era changes (decrease), and ordinary life becomes reduced paid-up and certain reinstatements.
An internal replacement transaction that results in a policy that is substantially changed is accounted for as an extinguishment of the original policy and the issuance of a new policy. Unamortized deferred acquisition costs on the original policy are immediately expensed, and the costs of acquiring the new policy are capitalized and amortized in accordance with our accounting policies for deferred acquisition costs. Further, the policy reserves are evaluated based on the new policy features, and any change (up or down) necessary is recognized at the date of contract change/modification. Examples include conversions-higher age bands, certain family coverage changes, pricing era changes (increase), lapse & re-issue, certain reinstatements and certain contract conversions.
Riders can be considered internal replacements that are either integrated or non-integrated resulting in either substantially changed or substantially unchanged treatment. Riders are evaluated based on the specific facts and circumstances of the rider and are considered expansion of the existing benefits with additional premium required. Non-integrated riders to existing contracts do not change the Company's profit expectations for the related products and are treated as a new policy establishment for incremental coverage.
We measure the recoverability of DAC and the adequacy of our policy reserves annually by performing gross premium valuations on our business. (See the following discussion for further information regarding policy reserves.)
Policy Liabilities - Future Policy Benefits
Policy Liabilities: Future policy benefits represent claims that are expected to occur in the future and are computed by a net level premium method using estimated future investment yields, persistency and recognized morbidity and mortality tables modified to reflect our experience, including a provision for adverse deviation. These assumptions are generally established and considered locked at policy inception. These assumptions may only be unlocked in certain circumstances based on the results of periodic DAC recoverability and premium deficiency testing.
Policy Liabilities - Unpaid Policy Claims
Unpaid policy claims are estimates computed on an undiscounted basis using statistical analyses of historical claims experience adjusted for current trends and changed conditions. The ultimate liability may vary significantly from such estimates. We regularly adjust these estimates as new claims experience emerges and reflect the changes in operating results in the year such adjustments are made.
Other Policy Liabilities
Other policy liabilities consist primarily of discounted advance premiums on deposit from policyholders in conjunction with their purchase of certain Aflac Japan limited-pay insurance products. These advanced premiums are deferred upon collection and recognized as premium revenue over the contractual premium payment period.
Internal Replacements of Insurance Contracts
For internal replacements that are determined to not be substantially unchanged, policy liabilities related to the original policy that was replaced are immediately released, and policy liabilities are established for the new insurance contract; however, for internal replacements that are considered substantially unchanged, no changes to the reserves are recognized.
Reinsurance Accounting Policy
Reinsurance: We enter into reinsurance agreements with other companies in the normal course of business. For each of our reinsurance agreements, we determine if the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. See Note 8 of the Notes to the Consolidated Financial Statements for additional information.
Income Taxes
Income Taxes: Income tax provisions are generally based on pretax earnings reported for financial statement purposes, which differ from those amounts used in preparing our income tax returns. Deferred income taxes are recognized for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which we expect the temporary differences to reverse. We record deferred tax assets for tax positions taken based on our assessment of whether the tax position is more likely than not to be sustained upon examination by taxing authorities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.
Policyholder Protection Corporation and State Guaranty Association Assessments
Policyholder Protection Corporation and State Guaranty Association Assessments: In Japan, the government has required the insurance industry to contribute to a policyholder protection corporation. We recognize a charge for our estimated share of the industry's obligation once it is determinable. We review the estimated liability for policyholder protection corporation contributions on an annual basis and report any adjustments in Aflac Japan's expenses.

In the United States, each state has a guaranty association that supports insolvent insurers operating in those states. To date, our state guaranty association assessments have not been material.
Treasury Stock
Treasury Stock: Treasury stock is reflected as a reduction of shareholders' equity at cost. We use the weighted-average purchase cost to determine the cost of treasury stock that is reissued. We include any gains and losses in additional paid-in capital when treasury stock is reissued.
Share-Based Compensation
Share-Based Compensation: We measure compensation cost related to our share-based payment transactions at fair value on the grant date, and we recognize those costs in the financial statements over the vesting period during which the employee provides service in exchange for the award.
Earnings Per Share
Earnings Per Share: We compute basic earnings per share (EPS) by dividing net earnings by the weighted-average number of unrestricted shares outstanding for the period. Diluted EPS is computed by dividing net earnings by the weighted-average number of shares outstanding for the period plus the shares representing the dilutive effect of share-based awards.
Reclassifications
Reclassifications: Certain reclassifications have been made to prior-year amounts to conform to current-year reporting classifications. These reclassifications had no impact on net earnings or total shareholders' equity.
Recently Adopted Accounting Pronouncements
New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Business Combinations - Simplifying the Accounting for Measurement-Period Adjustments: In September 2015, the FASB issued guidance requiring that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustments are determined. In the same period’s financial statements, the acquirer is required to record income effects of the adjustments as if the accounting had been completed at the acquisition date. The acquirer is also required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Financial Services - Insurance - Disclosures about Short-Duration Contracts: In May 2015, the FASB issued updated guidance requiring enhanced disclosures by all insurance entities that issue short-duration contracts. The amendments require insurance entities to disclose for annual reporting periods information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. In addition, the amendments require insurance entities to disclose for annual and interim reporting periods a roll-forward of the liability for unpaid claims and claim adjustment expenses. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities and expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. We adopted this guidance as of December 31, 2016, and have no insurance contracts classified as short-duration. The adoption of this guidance did not have a significant impact on our disclosures.

Fair Value Measurement - Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent): In May 2015, the FASB issued updated guidance that removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our disclosures.

Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs: In April 2015, the FASB issued updated guidance to simplify presentation of debt issuance costs. The updated guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this amendment. In August 2015, the FASB issued updated Securities and Exchange Commission (SEC) Staff guidance pertaining to the presentation of debt issuance costs related to line-of-credit arrangements. The guidance states that an entity may defer and present debt issuance costs as an asset, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. We retrospectively adopted this guidance as of January 1, 2016. The retrospective adoption of this accounting standard resulted in a $40 million reduction to notes payable and other assets as of December 31, 2015, the earliest balance sheet date presented in the period of adoption, but did not have a significant impact on our financial position, results of operations, or disclosures.

Consolidation - Amendments to the Consolidation Analysis: In February 2015, the FASB issued updated guidance that affects evaluation of whether limited partnerships and similar legal entities (limited liability corporations and securitization structures, etc.) are VIEs, evaluation of whether fees paid to a decision maker or a service provider are a variable interest, and evaluation of the effect of fee arrangements and the effect of related parties on the determination of the primary beneficiary under the VIE model for consolidation. The updated guidance eliminates the presumption that a general partner should consolidate a limited partnership. Limited partnership and similar legal entities that provide partners with either substantive kick-out rights or substantive participating rights over the general partner will now be evaluated under the voting interest model rather than the VIE model for consolidation. In situations where no single party has a controlling financial interest in a VIE, the related party relationships under common control should be considered in their entirety in determining whether that common control group has a controlling financial interest in the VIE. We adopted this guidance as of January 1, 2016. The adoption of this guidance impacted our footnote disclosures, but did not have a significant impact on our financial position or results of operations.

Derivatives and Hedging - Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity: In November 2014, the FASB issued guidance to clarify how to evaluate the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. The guidance also clarifies that an entity should assess the substance of the relevant terms and features when considering how to weight those terms and features. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Presentation of Financial Statements - Going Concern - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern: In August 2014, the FASB issued this amendment that provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The new guidance requires a formal assessment of going concern by management based on criteria prescribed in the new guidance. We adopted this guidance as of December 31, 2016. The adoption of this guidance did not have a significant impact our financial position, results of operations, or disclosures, and no substantial doubt currently exists about the Company’s ability to continue as a going concern. 

Compensation - Stock Compensation - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period: In June 2014, the FASB issued this amendment that provides guidance on certain share-based payment awards that require a specific performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance to awards with performance conditions that affect vesting to account for such awards. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. We adopted this guidance as of January 1, 2016. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Income Statement - Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items: In January 2015, the FASB issued updated guidance that eliminates from U.S. GAAP the concept of extraordinary items. Presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained. We adopted this guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Receivables - Troubled Debt Restructurings by Creditors - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure: In August 2014, the FASB issued updated guidance for troubled debt restructurings affecting creditors that hold government guaranteed mortgage loans. The guidance requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if certain conditions are met. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Transfers and Servicing - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures: In June 2014, the FASB issued updated guidance for repurchase agreement and security lending transactions to change the accounting for repurchase-to-maturity transactions and linked repurchase financings to be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. The amendments also require new disclosures to increase transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. We adopted accounting changes for the new guidance as of January 1, 2015, and adopted the required disclosures as of April 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Receivables - Troubled Debt Restructurings by Creditors - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure: In January 2014, the FASB issued updated guidance for troubled debt restructurings clarifying when an in substance repossession or foreclosure occurs, and when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. We adopted the guidance as of January 1, 2015. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Income Taxes - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists: In July 2013, the FASB issued guidance to amend the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.

Other Expenses - Fees Paid to the Federal Government by Health Insurers: In July 2011, the FASB issued guidance on the accounting for fees owed by health insurers as mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act, which imposes an annual fee on health insurers for each calendar year beginning on or after January 1, 2014. A health insurer's portion of the annual fee is payable by September 30 of the applicable calendar year once the entity provides health insurance for any U.S. health risk in that year. The accounting guidance specifies that the liability for the fee should be estimated and recorded in full in the applicable calendar year in which the fee is payable. We adopted this guidance as of January 1, 2014. The adoption of this guidance did not have a significant impact on our financial position, results of operations, or disclosures.
Description of Accounting Pronouncements Pending Adoption
Accounting Pronouncements Pending Adoption

Intangibles - Goodwill and Other - Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued amendments simplifying the subsequent measurement of goodwill. An entity, under this update, is no longer required to perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, the entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The amendments are effective for public business entities that are U.S. SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after Dec. 15, 2019. Early adoption is permitted for any goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Business Combinations - Clarifying the Definition of a Business: In January 2017, the FASB issued amendments clarifying when a set of assets and activities is a business. The amendments provide a screen to determine when a set of assets and activities is not a business. The amendments are effective for public business entities beginning after December 15, 2017, including interim periods within those periods. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Statement of Cash Flows - Restricted Cash: In November 2016, the FASB issued amendments requiring that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations, or disclosures.

Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory: In October 2016, the FASB issued amendments that require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for public business entities for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. We are evaluating the impact of adoption of this guidance on our financial position, results of operations, or disclosures.

Consolidation - Interests Held through Related Parties That Are under Common Control: In October 2016, the FASB issued amendments which clarify the consolidation guidance on how a reporting entity that is the single decision maker of a VIE should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, or disclosures.

Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments: In August 2016, the FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash flows.

Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale debt securities will continue to be measured in a manner similar to current GAAP. However, the amendments require that credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and loan receivables and reinsurance recoverables (See Notes 3 and 8 for current balances of instruments in scope). We are continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and disclosures.

Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting: In March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions, including income tax consequences, classification of awards as either liability or equities, and classification on the statement of cash flows. The amendments are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period.

The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement, rather than in paid-in capital. As a result of applying this requirement, we estimate that recognition of excess tax benefits will increase volatility in our statement of operations but will not have a significant impact on our statement of financial position, operations, or disclosures. We continue to evaluate the impact of this guidance as estimates will vary from the actual expense based on changes in actual share price.

The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and record a cumulative-effect adjustment to equity on a modified retrospective basis. We estimate that the adoption of these amendments in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and financing activities. The reclassification guidance will not have a significant impact on our statement of cash flows.

The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they occur, using modified retrospective application. We estimate that the election and adoption of this amendment in the guidance will not have a significant impact on our financial position, results of operations, or disclosures.

Investments - Equity Method and Joint Ventures - Simplifying the Transition to the Equity Method of Accounting: In March 2016, the FASB issued amendments which eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. Per the amendments, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Early adoption is permitted. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Derivatives and Hedging - Contingent Put and Call Options in Debt Instruments: In March 2016, the FASB issued amendments which clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Derivatives and Hedging - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships: In March 2016, the FASB issued amendments which clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have evaluated the adoption of this guidance and do not expect the guidance to have a significant impact on our financial position, results of operations, or disclosures.

Leases: In February 2016, the FASB issued updated guidance for accounting for leases. Per the amendments, lessees will be required to recognize all leases on the balance sheet, with the exception of short-term leases. A lease liability will be recorded for the obligation of a lessee to make lease payments arising from a lease. A right-of-use asset, will be recorded which represents the lessee’s right to use, or to control the use of, a specified asset for a lease term. Under the new guidance, lessor accounting is largely unchanged. The amendments are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. We have identified certain operating leases in scope of this guidance to include office space and equipment leases (See Note 15 for current balances of leases in scope). The leases within scope of this guidance will increase our right-of-use assets recorded on our financial position, however we estimate leases within scope of the guidance to represent less than 1% of our total assets as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures.

Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Financial Liabilities: In January 2016, the FASB issued guidance to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The main provisions require that equity investments be measured at fair value with changes recognized in net income; that changes in instrument-specific credit risk for financial liabilities that are measured under the fair value option be recognized in other comprehensive income; and that entities would make the assessment of the ability to realize a deferred tax asset (DTA) related to an available-for-sale (AFS) debt security in combination with the entity's other DTAs. The amendments are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is not permitted, with the exception of the own credit provision if an entity has elected to measure a liability at fair value. We have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, perpetual securities and equity securities (See Note 3 for current balances of instruments in scope). We estimate that the impact of this guidance will increase volatility in our statement of operations and we are continuing to evaluate the impact of this guidance on our statement of financial position, operations, or disclosures.

Revenue from Contracts with Customers: In May 2014, the FASB issued updated guidance that affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g., insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB deferred the effective date for this standard to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Other updates related to the new guidance, which are effective as of the same reporting period, pertain to improvements in certain areas. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods. We have identified revenue in scope of this guidance to include certain revenues associated with affiliated entities in support of our operations. We estimate the revenue within scope of the guidance to represent less than 1% of our total revenues as of December 31, 2016. We estimate that the adoption of this guidance will not have a significant impact on our financial position, results of operations and disclosures.
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
Information regarding operations by segment for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums
 
 
 
 
 
 
 
 
 
 
 
             Cancer
 
$
5,639

 
 
 
$
4,933

 
 
 
$
5,596

 
             Medical and other health
 
3,429

 
 
 
3,092

 
 
 
3,770

 
             Life insurance
 
4,469

 
 
 
4,021

 
 
 
4,495

 
   Net investment income
 
2,554

 
 
 
2,436

 
 
 
2,662

 
   Other income
 
40

 
 
 
31

 
 
 
32

 
               Total Aflac Japan
 
16,131

 
 
 
14,513

 
 
 
16,555

 
Aflac U.S.:
 
 
 
 
 
 
 
 
 
 
 
   Net earned premiums:
 
 
 
 
 
 
 
 
 
 
 
             Accident/disability
 
2,469

 
 
 
2,391

 
 
 
2,303

 
             Cancer
 
1,299

 
 
 
1,293

 
 
 
1,279

 
             Other health
 
1,415

 
 
 
1,395

 
 
 
1,371

 
             Life insurance
 
271

 
 
 
268

 
 
 
258

 
   Net investment income
 
703

 
 
 
678

 
 
 
645

 
   Other income
 
10

 
 
 
8

 
 
 
3

 
               Total Aflac U.S.
 
6,167

 
 
 
6,033

 
 
 
5,859

 
Other business segments
 
275

 
 
 
225

 
 
 
43

 
               Total business segment revenues
 
22,573

 
 
 
20,771

 
 
 
22,457

 
Realized investment gains (losses) (1)
 
(208
)
 
 
 
55

 
 
 
171

 
Corporate
 
284

 
 
 
282

 
 
 
281

 
Intercompany eliminations
 
(199
)
 
 
 
(201
)
 
 
 
(248
)
 
Other non-operating income (loss)
 
109

 
 
 
(35
)
(2) 
 
 
67

 
           Total revenues
 
$
22,559

 
 
 
$
20,872

 
 
 
$
22,728

 

(1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses).
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
(In millions)
2016
 
2015
 
2014
Pretax earnings:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
3,334

 
 
 
$
3,175

 
 
 
$
3,458

 
Aflac U.S.
 
1,208

 
 
 
1,101

 
 
 
1,073

 
Other business segments
 
18

 
 
 
14

 
 
 
(2
)
 
    Total business segment pretax operating earnings
 
4,560

 
 
 
4,290

 
 
 
4,529

 
Interest expense, noninsurance operations
 
(128
)
 
 
 
(146
)
 
 
 
(198
)
 
Corporate and eliminations
 
(129
)
 
 
 
(71
)
 
 
 
(78
)
 
    Pretax operating earnings
 
4,303

 
 
 
4,073

 
 
 
4,253

 
Realized investment gains (losses) (1)
 
(208
)
 
 
 
55

 
 
 
171

 
Other non-operating income (loss)
 
(28
)
(3) 
 
 
(266
)
(2),(3) 
 
 
67

 
    Total earnings before income taxes
 
$
4,067

 
 
 
$
3,862

 
 
 
$
4,491

 
Income taxes applicable to pretax operating earnings
 
$
1,491

 
 
 
$
1,403

 
 
 
$
1,456

 
Effect of foreign currency translation on after-tax operating
earnings
 
141

 
 
 
(198
)
 
 
 
(117
)
 

(1) Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
(2) Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses).
(3) Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt

Reconciliation of Assets from Segment to Consolidated
Assets as of December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Assets:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
107,858

 
 
 
$
97,646

 
 
 
$
98,525

 
Aflac U.S.
 
19,453

 
 
 
18,537

 
 
 
18,383

 
Other business segments
 
270

 
 
 
188

 
 
 
128

 
    Total business segment assets
 
127,581

 
 
 
116,371

 
 
 
117,036

 
Corporate
 
26,476

 
 
 
23,375

 
 
 
24,596

 
Intercompany eliminations
 
(24,238
)
 
 
 
(21,490
)
 
 
 
(21,905
)
 
    Total assets
 
$
129,819

 
 
 
$
118,256

 
 
 
$
119,727

 

Prior year amounts have been adjusted for the adoption of the accounting guidance on January 1, 2016 related to debt issuance costs
Foreign Currency Disclosure
Yen-Translation Effects: The following table shows the yen/dollar exchange rates used for or during the periods ended December 31. Exchange effects were calculated using the same yen/dollar exchange rate for the current year as for each respective prior year.
 
2016
 
2015
 
2014
Statements of Earnings:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average yen/dollar exchange rate
 
108.70

 
 
 
120.99

 
 
 
105.46

 
Yen percent strengthening (weakening)
 
11.3
%
 
 
 
(12.8
)%
 
 
 
(7.5
)%
 
Exchange effect on pretax operating earnings (in millions)
 
$
218

 
 
 
$
(288
)
 
 
 
$
(180
)
 

 
2016
 
2015
Balance Sheets:
 
 
 
 
 
 
 
Yen/dollar exchange rate at December 31
 
116.49

 
 
 
120.61

 
Yen percent strengthening (weakening)
 
3.54
%
 
 
 
(.05
)%
 
Exchange effect on total assets (in millions)
 
$
2,820

 
 
 
$
(36
)
 
Exchange effect on total liabilities (in millions)
 
3,109

 
 
 
(41
)
 
Schedule of Intercompany Transfers of Funds
Information on transfers for each of the years ended December 31 is shown below. See Note 13 for information concerning restrictions on transfers from Aflac Japan.
(In millions)
2016
 
2015
 
2014
Management fees
 
$
79

 
 
 
$
53

 
 
 
$
39

 
Allocated expenses
 
106

 
 
 
101

 
 
 
71

 
Profit repatriation
 
1,286

 
 
 
2,139

 
 
 
1,704

 
Total transfers from Aflac Japan
 
$
1,471

 
 
 
$
2,293

 
 
 
$
1,814

 
Property, Plant and Equipment
Classes of property and equipment as of December 31 were as follows:
(In millions)
2016
 
2015
Property and equipment:
 
 
 
 
 
 
 
Land
 
$
166

 
 
 
$
166

 
Buildings
 
421

 
 
 
400

 
Equipment and furniture
 
355

 
 
 
329

 
Total property and equipment
 
942

 
 
 
895

 
Less accumulated depreciation
 
509

 
 
 
468

 
Net property and equipment
 
$
433

 
 
 
$
427

 
v3.6.0.2
INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Schedule Of Net Investment Income
The components of net investment income for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Fixed-maturity securities
 
$
3,214

 
 
 
$
3,094

 
 
 
$
3,249

 
Perpetual securities
 
94

 
 
 
114

 
 
 
141

 
Equity securities
 
35

 
 
 
3

 
 
 
1

 
Other investments
 
31

 
 
 
15

 
 
 
6

 
Short-term investments and cash equivalents
 
11

 
 
 
4

 
 
 
2

 
Gross investment income
 
3,385

 
 
 
3,230

 
 
 
3,399

 
Less investment expenses
 
107

 
 
 
95

 
 
 
80

 
Net investment income
 
$
3,278

 
 
 
$
3,135

 
 
 
$
3,319

 
Available-for-sale Securities
The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments at December 31 are shown in the following tables.
  
2016
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
22,857

 
 
 
$
3,359

 
 
 
$
160

 
 
 
$
26,056

 
Municipalities
 
246

 
 
 
29

 
 
 
8

 
 
 
267

 
Mortgage- and asset-backed securities
 
1,096

 
 
 
33

 
 
 
8

 
 
 
1,121

 
Public utilities
 
1,533

 
 
 
318

 
 
 
3

 
 
 
1,848

 
Sovereign and supranational
 
862

 
 
 
186

 
 
 
5

 
 
 
1,043

 
Banks/financial institutions
 
2,673

 
 
 
403

 
 
 
74

 
 
 
3,002

 
Other corporate
 
3,192

 
 
 
623

 
 
 
3

 
 
 
3,812

 
Total yen-denominated
 
32,459

 
 
 
4,951

 
 
 
261

 
 
 
37,149

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
148

 
 
 
10

 
 
 
0

 
 
 
158

 
Municipalities
 
894

 
 
 
142

 
 
 
8

 
 
 
1,028

 
Mortgage- and asset-backed securities
 
196

 
 
 
20

 
 
 
0

 
 
 
216

 
Public utilities
 
5,205

 
 
 
690

 
 
 
60

 
 
 
5,835

 
Sovereign and supranational
 
335

 
 
 
91

 
 
 
0

 
 
 
426

 
Banks/financial institutions
 
2,570

 
 
 
507

 
 
 
16

 
 
 
3,061

 
Other corporate
 
24,556

 
 
 
2,021

 
 
 
690

 
 
 
25,887

 
Total dollar-denominated
 
33,904

 
 
 
3,481

 
 
 
774

 
 
 
36,611

 
Total fixed maturities
 
66,363

 
 
 
8,432

 
 
 
1,035

 
 
 
73,760

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,266

 
 
 
128

 
 
 
49

 
 
 
1,345

 
Other corporate
 
189

 
 
 
24

 
 
 
0

 
 
 
213

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
51

 
 
 
24

 
 
 
0

 
 
 
75

 
Total perpetual securities
 
1,506

 
 
 
176

 
 
 
49

 
 
 
1,633

 
Equity securities:
 


 
 
 


 
 
 


 
 
 


 
      Yen-denominated
 
624

 
 
 
83

 
 
 
2

 
 
 
705

 
      Dollar-denominated
 
579

 
 
 
31

 
 
 
6

 
 
 
604

 
Total equity securities
 
1,203

 
 
 
114

 
 
 
8

 
 
 
1,309

 
Total securities available for sale
 
$
69,072

 
 
 
$
8,722

 
 
 
$
1,092

 
 
 
$
76,702

 
 
2015
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
17,293

 
 
 
$
1,862

 
 
 
$
0

 
 
 
$
19,155

 
Municipalities
 
128

 
 
 
9

 
 
 
0

 
 
 
137

 
Mortgage- and asset-backed securities
 
322

 
 
 
33

 
 
 
0

 
 
 
355

 
Public utilities
 
1,400

 
 
 
210

 
 
 
10

 
 
 
1,600

 
Sovereign and supranational
 
791

 
 
 
180

 
 
 
0

 
 
 
971

 
Banks/financial institutions
 
2,321

 
 
 
325

 
 
 
105

 
 
 
2,541

 
Other corporate
 
3,337

 
 
 
448

 
 
 
33

 
 
 
3,752

 
Total yen-denominated
 
25,592

 
 
 
3,067

 
 
 
148

 
 
 
28,511

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
110

 
 
 
11

 
 
 
0

 
 
 
121

 
Municipalities
 
926

 
 
 
151

 
 
 
6

 
 
 
1,071

 
Mortgage- and asset-backed securities
 
200

 
 
 
27

 
 
 
0

 
 
 
227

 
Public utilities
 
5,464

 
 
 
636

 
 
 
221

 
 
 
5,879

 
Sovereign and supranational
 
331

 
 
 
105

 
 
 
0

 
 
 
436

 
Banks/financial institutions
 
2,865

 
 
 
634

 
 
 
21

 
 
 
3,478

 
Other corporate
 
25,154

 
 
 
1,774

 
 
 
1,302

 
 
 
25,626

 
Total dollar-denominated
 
35,050

 
 
 
3,338

 
 
 
1,550

 
 
 
36,838

 
Total fixed maturities
 
60,642

 
 
 
6,405

 
 
 
1,698

 
 
 
65,349

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,581

 
 
 
143

 
 
 
93

 
 
 
1,631

 
Other corporate
 
183

 
 
 
22

 
 
 
0

 
 
 
205

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
77

 
 
 
35

 
 
 
1

 
 
 
111

 
Total perpetual securities
 
1,841

 
 
 
200

 
 
 
94

 
 
 
1,947

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Yen-denominated
 
472

 
 
 
19

 
 
 
4

 
 
 
487

 
    Dollar-denominated
 
8

 
 
 
3

 
 
 
0

 
 
 
11

 
Total equity securities
 
480

 
 
 
22

 
 
 
4

 
 
 
498

 
Total securities available for sale
 
$
62,963

 
 
 
$
6,627

 
 
 
$
1,796

 
 
 
$
67,794

 
Held-to-maturity Securities
  
2016
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair  
Value  
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
20,702

 
 
 
$
5,338

 
 
 
$
0

 
 
 
$
26,040

 
Municipalities
 
350

 
 
 
107

 
 
 
0

 
 
 
457

 
Mortgage- and asset-backed securities
 
30

 
 
 
2

 
 
 
0

 
 
 
32

 
Public utilities
 
3,201

 
 
 
358

 
 
 
23

 
 
 
3,536

 
Sovereign and supranational
 
2,602

 
 
 
283

 
 
 
8

 
 
 
2,877

 
Banks/financial institutions
 
3,731

 
 
 
195

 
 
 
26

 
 
 
3,900

 
Other corporate
 
2,734

 
 
 
452

 
 
 
7

 
 
 
3,179

 
Total yen-denominated
 
33,350

 
 
 
6,735

 
 
 
64

 
 
 
40,021

 
Total securities held to maturity
 
$
33,350

 
 
 
$
6,735

 
 
 
$
64

 
 
 
$
40,021

 
  
2015
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
20,004

 
 
 
$
3,387

 
 
 
$
0

 
 
 
$
23,391

 
Municipalities
 
341

 
 
 
74

 
 
 
0

 
 
 
415

 
Mortgage- and asset-backed securities
 
36

 
 
 
2

 
 
 
0

 
 
 
38

 
Public utilities
 
3,092

 
 
 
205

 
 
 
94

 
 
 
3,203

 
Sovereign and supranational
 
2,555

 
 
 
182

 
 
 
26

 
 
 
2,711

 
Banks/financial institutions
 
4,431

 
 
 
168

 
 
 
53

 
 
 
4,546

 
Other corporate
 
3,000

 
 
 
260

 
 
 
44

 
 
 
3,216

 
Total yen-denominated
 
33,459

 
 
 
4,278

 
 
 
217

 
 
 
37,520

 
Total securities held to maturity
 
$
33,459

 
 
 
$
4,278

 
 
 
$
217

 
 
 
$
37,520

 
Investments Classified by Contractual Maturity Date
The contractual maturities of our investments in fixed maturities at December 31, 2016, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
 
$
180

 
 
 
$
204

 
 
 
$
103

 
 
 
$
105

 
Due after one year through five years
 
3,441

 
 
 
3,696

 
 
 
617

 
 
 
668

 
Due after five years through 10 years
 
9,374

 
 
 
9,694

 
 
 
2,860

 
 
 
3,018

 
Due after 10 years
 
39,461

 
 
 
45,125

 
 
 
8,545

 
 
 
9,411

 
Mortgage- and asset-backed securities
 
1,144

 
 
 
1,184

 
 
 
43

 
 
 
48

 
Total fixed maturities available for sale
 
$
53,600

 
 
 
$
59,903

 
 
 
$
12,168

 
 
 
$
13,250

 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due after one year through five years
 
2,009

 
 
 
2,112

 
 
 
0

 
 
 
0

 
Due after five years through 10 years
 
1,584

 
 
 
1,737

 
 
 
0

 
 
 
0

 
Due after 10 years
 
29,727

 
 
 
36,140

 
 
 
0

 
 
 
0

 
Mortgage- and asset-backed securities
 
30

 
 
 
32

 
 
 
0

 
 
 
0

 
Total fixed maturities held to maturity
 
$
33,350

 
 
 
$
40,021

 
 
 
$
0

 
 
 
$
0

 
Economic Maturities of Investments in Perpetual Securities
The economic maturities of our investments in perpetual securities, which were all reported as available for sale at December 31, 2016, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Due in one year or less
 
$
87

 
 
 
$
82

 
 
 
$
0

 
 
 
$
0

 
Due after one year through five years
 
189

 
 
 
213

 
 
 
0

 
 
 
0

 
Due after 10 years
 
1,191

 
 
 
1,282

 
 
 
39

 
 
 
56

 
Total perpetual securities available for sale
 
$
1,467

 
 
 
$
1,577

 
 
 
$
39

 
 
 
$
56

 
Investment Exposures Exceeding 10 Percent Shareholders Equity
Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows:
 
2016
 
2015
(In millions)
Credit
Rating
 
Amortized
Cost
 
Fair
Value
 
Credit
Rating
 
Amortized
Cost
 
Fair
Value
Japan National Government(1)
A
 
$42,931
 
$51,345
 
A
 
$36,859
 
$42,025
(1)Japan Government Bonds (JGBs) or JGB-backed securities
Gain (Loss) on Investments
Information regarding pretax realized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
 
Realized investment gains (losses):
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Gross gains from sales
$
77

 
$
224

 
$
192

 
Gross losses from sales
(134
)
(1) 
(8
)
 
(12
)
 
Net gains (losses) from redemptions (1)
186

 
52

 
34

 
Other-than-temporary impairment losses
(24
)
(1) 
(152
)
 
(31
)
 
Held to maturity:
 
 
 
 
 
 
Net gains (losses) from redemptions
0

 
0

 
1

 
Total fixed maturities
105

 
116

 
184

 
Perpetual securities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Net gains (losses) from redemptions
64

 
35

 
0

 
Other-than-temporary impairment losses
(2
)
 
0

 
0

 
Total perpetual securities
62

 
35

 
0

 
Equity securities:
 
 
 
 
 
 
Net gains (losses) from redemptions
22

 
0

 
0

 
Other-than-temporary impairment losses
(57
)
 
(1
)
 
0

 
Total equity securities
(35
)
 
(1
)
 
0

 
Derivatives and other:
 
 
 
 
 
 
Derivative gains (losses)
(255
)
 
(10
)
 
31

 
  Total derivatives and other
(255
)
 
(10
)
 
31

 
  Total realized investment gains (losses)
$
(123
)
 
$
140

 
$
215

 

(1) Primarily driven by foreign exchange
Unrealized Gain (Loss) on Investments
Information regarding changes in unrealized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
Changes in unrealized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
$
2,690

 
 
 
$
(2,481
)
 
 
 
$
5,629

 
Transferred to held to maturity
 
0

 
 
 
0

 
 
 
(10
)
 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
21

 
 
 
(123
)
 
 
 
269

 
Equity securities
 
88

 
 
 
9

 
 
 
5

 
Total change in unrealized gains (losses)
 
$
2,799

 
 
 
$
(2,595
)
 
 
 
$
5,893

 
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities
The net effect on shareholders' equity of unrealized gains and losses from investment securities at December 31 was as follows:
(In millions)
2016
 
2015
Unrealized gains (losses) on securities available for sale
 
$
7,630

 
 
 
$
4,831

 
Deferred income taxes
 
(2,825
)
 
 
 
(1,845
)
 
Shareholders’ equity, unrealized gains (losses) on investment securities
 
$
4,805

 
 
 
$
2,986

 
Investments Gross Unrealized Loss Aging
The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.
 
  
2016
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Japan government and
agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
$
3,958

 
 
 
$
160

 
 
 
$
3,958

 
 
 
$
160

 
 
 
$
0

 
 
 
$
0

 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
44

 
 
 
8

 
 
 
0

 
 
 
0

 
 
 
44

 
 
 
8

 
  Yen-denominated
 
105

 
 
 
8

 
 
 
105

 
 
 
8

 
 
 
0

 
 
 
0

 
Mortgage- and asset-
backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
713

 
 
 
8

 
 
 
713

 
 
 
8

 
 
 
0

 
 
 
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
1,265

 
 
 
60

 
 
 
790

 
 
 
32

 
 
 
475

 
 
 
28

 
  Yen-denominated
 
635

 
 
 
26

 
 
 
347

 
 
 
14

 
 
 
288

 
 
 
12

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
244

 
 
 
13

 
 
 
38

 
 
 
5

 
 
 
206

 
 
 
8

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
268

 
 
 
16

 
 
 
238

 
 
 
10

 
 
 
30

 
 
 
6

 
  Yen-denominated
 
1,521

 
 
 
100

 
 
 
636

 
 
 
19

 
 
 
885

 
 
 
81

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
10,462

 
 
 
690

 
 
 
7,252

 
 
 
346

 
 
 
3,210

 
 
 
344

 
  Yen-denominated
 
321

 
 
 
10

 
 
 
321

 
 
 
10

 
 
 
0

 
 
 
0

 
  Total fixed maturities
 
19,536

 
 
 
1,099

 
 
 
14,398

 
 
 
612

 
 
 
5,138

 
 
 
487

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
  Total perpetual securities
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
211

 
 
 
6

 
 
 
211

 
 
 
6

 
 
 
0

 
 
 
0

 
  Yen-denominated
 
49

 
 
 
2

 
 
 
49

 
 
 
2

 
 
 
0

 
 
 
0

 
  Total equity securities
 
260

 
 
 
8

 
 
 
260

 
 
 
8

 
 
 
0

 
 
 
0

 
  Total
 
$
20,275

 
 
 
$
1,156

 
 
 
$
14,743

 
 
 
$
621

 
 
 
$
5,532

 
 
 
$
535

 




  
2015
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
$
80

 
 
 
$
6

 
 
 
$
80

 
 
 
$
6

 
 
 
$
0

 
 
 
$
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
2,127

 
 
 
221

 
 
 
1,689

 
 
 
132

 
 
 
438

 
 
 
89

 
  Yen-denominated
 
1,487

 
 
 
104

 
 
 
1,062

 
 
 
73

 
 
 
425

 
 
 
31

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
580

 
 
 
26

 
 
 
385

 
 
 
13

 
 
 
195

 
 
 
13

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
366

 
 
 
21

 
 
 
348

 
 
 
11

 
 
 
18

 
 
 
10

 
  Yen-denominated
 
2,350

 
 
 
158

 
 
 
1,147

 
 
 
14

 
 
 
1,203

 
 
 
144

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
13,430

 
 
 
1,302

 
 
 
11,068

 
 
 
770

 
 
 
2,362

 
 
 
532

 
  Yen-denominated
 
1,151

 
 
 
77

 
 
 
343

 
 
 
5

 
 
 
808

 
 
 
72

 
  Total fixed maturities
 
21,571

 
 
 
1,915

 
 
 
16,122

 
 
 
1,024

 
 
 
5,449

 
 
 
891

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
6

 
 
 
1

 
 
 
0

 
 
 
0

 
 
 
6

 
 
 
1

 
  Yen-denominated
 
645

 
 
 
93

 
 
 
216

 
 
 
12

 
 
 
429

 
 
 
81

 
  Total perpetual securities
 
651

 
 
 
94

 
 
 
216

 
 
 
12

 
 
 
435

 
 
 
82

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total equity securities
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total
 
$
22,413

 
 
 
$
2,013

 
 
 
$
16,529

 
 
 
$
1,040

 
 
 
$
5,884

 
 
 
$
973

 
Securities Lending Transactions Accounted for as Secured Borrowings
Details of our securities lending activities as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
2016
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Public utilities
$
62

 
$
0

 
 
$
62

Banks/financial institutions
34

 
0

 
 
34

Other corporate
430

 
0

 
 
430

          Total borrowings
$
526

 
$
0

 
 
$
526

Gross amount of recognized liabilities for securities lending transactions
 
$
526

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0

(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Securities Lending Transactions Accounted for as Secured Borrowings
2015
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Japan government and agencies
$
0

 
$
499

 
 
$
499

Public utilities
108

 
0

 
 
108

Banks/financial institutions
13

 
0

 
 
13

Other corporate
321

 
0

 
 
321

          Total borrowings
$
442

 
$
499

 
 
$
941

Gross amount of recognized liabilities for securities lending transactions
 
$
941

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0


(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.
Variable Interest Entity, Consolidated  
Investments in Variable Interest Entities
The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported as of December 31.
Investments in Consolidated Variable Interest Entities
  
2016
 
2015
(In millions)
Cost or Amortized
Cost
 
Fair
Value
 
Cost or Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,168

 
 
 
$
4,982

 
 
 
$
3,739

 
 
 
$
4,554

 
Perpetual securities, available for sale
 
237

 
 
 
208

 
 
 
255

 
 
 
228

 
Equity securities
 
972

 
 
 
1,044

 
 
 
363

 
 
 
363

 
Other investments
 
819

 
 
 
789

 
 
 
0

 
 
 
0

 
Other assets
 
127

 
 
 
127

 
 
 
102

 
 
 
102

 
Total assets of consolidated VIEs
 
$
6,323

 
 
 
$
7,150

 
 
 
$
4,459

 
 
 
$
5,247

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 
Total liabilities of consolidated VIEs
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 
Variable Interest Entity, Not Consolidated  
Investments in Variable Interest Entities
The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported as of December 31.

Investments in Variable Interest Entities Not Consolidated
 
2016
 
2015
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,729

 
 
 
$
5,261

 
 
 
$
4,731

 
 
 
$
5,093

 
Perpetual securities, available for sale
 
172

 
 
 
200

 
 
 
249

 
 
 
253

 
Fixed maturities, held to maturity
 
2,563

 
 
 
2,948

 
 
 
2,477

 
 
 
2,636

 
Other investments
 
1

 
 
 
1

 
 
 
0

 
 
 
0

 
Total investments in VIEs not consolidated
 
$
7,465

 
 
 
$
8,410

 
 
 
$
7,457

 
 
 
$
7,982

 

Prior year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to consolidations.

v3.6.0.2
DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk
The counterparties to these derivatives are financial institutions with the following credit ratings as of December 31:
 
2016
2015
(In millions)
Notional Amount
of Derivatives
Asset Derivatives
Fair Value
Liability Derivatives
Fair Value
Notional Amount
of Derivatives
Asset Derivatives
Fair Value
Liability Derivatives
Fair Value
Counterparties' credit rating:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AA
 
$
6,844

 
 
$
247

 
 
$
(308
)
 
 
$
2,187

 
 
$
166

 
 
$
(35
)
 
A
 
36,019

 
 
900

 
 
(1,621
)
 
 
19,940

 
 
510

 
 
(336
)
 
BBB
 
1,064

 
 
60

 
 
(69
)
 
 
0

 
 
0

 
 
0

 
Total
 
$
43,927

 
 
$
1,207

 
 
$
(1,998
)
 
 
$
22,127

 
 
$
676

 
 
$
(371
)
 
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
 
2016
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
75

 
 
 
$
(10
)
 
 
 
$
0

 
 
 
$
(10
)
 
Total cash flow hedges
 
75

 
 
 
(10
)
 
 
 
0

 
 
 
(10
)
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
10,965

 
 
 
(759
)
 
 
 
0

 
 
 
(759
)
 
Foreign currency options
 
4,224

 
 
 
(30
)
 
 
 
2

 
 
 
(32
)
 
Total fair value hedges
 
15,189

 
 
 
(789
)
 
 
 
2

 
 
 
(791
)
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
209

 
 
 
3

 
 
 
5

 
 
 
(2
)
 
Foreign currency options
 
843

 
 
 
24

 
 
 
41

 
 
 
(17
)
 
Total net investment hedge
 
1,052

 
 
 
27

 
 
 
46

 
 
 
(19
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
6,266

 
 
 
270

 
 
 
490

 
 
 
(220
)
 
Foreign currency forwards
 
21,218

 
 
 
(289
)
 
 
 
667

 
 
 
(956
)
 
Foreign currency options
 
41

 
 
 
(2
)
 
 
 
0

 
 
 
(2
)
 
Credit default swaps
 
86

 
 
 
2

 
 
 
2

 
 
 
0

 
Total non-qualifying strategies
 
27,611

 
 
 
(19
)
 
 
 
1,159

 
 
 
(1,178
)
 
Total derivatives
 
$
43,927

 
 
 
$
(791
)
 
 
 
$
1,207

 
 
 
$
(1,998
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
18,329

 
 
 
$
1,207

 
 
 
$
1,207

 
 
 
$
0

 
Other liabilities
 
25,598

 
 
 
(1,998
)
 
 
 
0

 
 
 
(1,998
)
 
Total derivatives
 
$
43,927

 
 
 
$
(791
)
 
 
 
$
1,207

 
 
 
$
(1,998
)
 

 
 
2015
(In millions)
Net Derivatives
 
Asset
Derivatives
 
Liability
Derivatives
Hedge Designation/ Derivative Type
Notional
Amount
 
Fair Value
 
Fair Value
 
Fair Value
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
75

 
 
 
$
(15
)
 
 
 
$
0

 
 
 
$
(15
)
 
Total cash flow hedges
 
75

 
 
 
(15
)
 
 
 
0

 
 
 
(15
)
 
Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
13,080

 
 
 
45

 
 
 
88

 
 
 
(43
)
 
Foreign currency options
 
1,250

 
 
 
0

 
 
 
0

 
 
 
0

 
Total fair value hedges
 
14,330

 
 
 
45

 
 
 
88

 
 
 
(43
)
 
Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forwards
 
763

 
 
 
13

 
 
 
19

 
 
 
(6
)
 
    Foreign currency options
 
266

 
 
 
(3
)
 
 
 
5

 
 
 
(8
)
 
Total net investment hedge
 
1,029

 
 
 
10

 
 
 
24

 
 
 
(14
)
 
Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
6,599

 
 
 
264

 
 
 
563

 
 
 
(299
)
 
Foreign currency forwards
 
11

 
 
 
0

 
 
 
0

 
 
 
0

 
Credit default swaps
 
83

 
 
 
1

 
 
 
1

 
 
 
0

 
Total non-qualifying strategies
 
6,693

 
 
 
265

 
 
 
564

 
 
 
(299
)
 
Total derivatives
 
$
22,127

 
 
 
$
305

 
 
 
$
676

 
 
 
$
(371
)
 
Balance Sheet Location
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other assets
 
$
11,413

 
 
 
$
676

 
 
 
$
676

 
 
 
$
0

 
Other liabilities
 
10,714

 
 
 
(371
)
 
 
 
0

 
 
 
(371
)
 
Total derivatives
 
$
22,127

 
 
 
$
305

 
 
 
$
676

 
 
 
$
(371
)
 
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The following table presents the gains and losses on derivatives and the related hedged items in fair value hedges for the years ended December 31.

Fair Value Hedging Relationships
(In millions)
 
 
Hedging Derivatives
 
Hedged Items
 
 
Hedging Derivatives
Hedged Items
 
Total
Gains (Losses)
 
Gains (Losses)
Excluded from Effectiveness Testing
 
Gains (Losses)
Included in Effectiveness Testing
 
 Gains (Losses)
 
Ineffectiveness
Recognized for Fair Value Hedge
2016:
 
 
 
 
 
 
 
 
 
 
Foreign currency
forwards
Fixed-maturity securities and equity securities
 
$
207

 
$
(338
)
 
$
545

 
$
(566
)
 
$
(21
)
Foreign currency
options
Fixed-maturity securities
 
(95
)
 
(18
)
 
(77
)
 
70

 
(7
)
2015:
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
(133
)
 
$
(136
)
 
$
3

 
$
(5
)
 
$
(2
)
Foreign currency options
Fixed-maturity securities
 
(4
)
 
3

 
(7
)
 
7

 
0

Interest rate
swaptions
Fixed-maturity securities
 
(95
)
 
19

 
(114
)
 
99

 
(15
)
2014:
 
 
 
 
 
 
 
Foreign currency forwards
Fixed-maturity securities
 
$
(1,835
)
 
$
(38
)
 
$
(1,797
)
 
$
1,819

 
$
22

Foreign currency options
Fixed-maturity securities
 
(41
)
 
(4
)
 
(37
)
 
38

 
1

Interest rate
swaptions
Fixed-maturity securities
 
(318
)
 
(36
)
 
(282
)
 
316

 
34
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following table summarizes the impact to realized investment gains (losses) and other comprehensive income (loss) from all derivatives and hedging instruments for the years ended December 31.
 
2016
2015
2014
(In millions)
Realized Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Realized Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Realized
Investment
Gains (Losses)
Other
Comprehensive
Income (Loss)(1)
Qualifying hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
$
1

 
 
$
3

 
 
$
0

 
 
$
0

 
 
$
(2
)
 
 
$
(17
)
 
  Total cash flow hedges
 
1

 
 
3

 
 
0

 
 
0

 
 
(2
)
 
 
(17
)
 
  Fair value hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency forwards (2)
 
(359
)
 
 
0

 
 
(138
)
 
 
0

 
 
(16
)
 
 
0

 
       Foreign currency options (2)
 
(25
)
 
 
0

 
 
3

 
 
0

 
 
(3
)
 
 
0

 
       Interest rate swaptions (2)
 
0

 
 
0

 
 
4

 
 
0

 
 
(2
)
 
 
0

 
  Total fair value hedges
 
(384
)
 
 
0

 
 
(131
)
 
 
0

 
 
(21
)
 
 
0

 
  Net investment hedge:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Non-derivative hedging
instruments
 
0

 
 
0

 
 
0

 
 
3

 
 
0

 
 
39

 
       Foreign currency forwards
 
0

 
 
(118
)
 
 
0

 
 
4

 
 
0

 
 
89

 
       Foreign currency options
 
0

 
 
73

 
 
0

 
 
0

 
 
0

 
 
(3
)
 
   Total net investment hedge
 
0

 
 
(45
)
 
 
0

 
 
7

 
 
0

 
 
125

 
  Non-qualifying strategies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
117

 
 
0

 
 
16

 
 
0

 
 
151

 
 
0

 
       Foreign currency forwards
 
9

 
 
0

 
 
100

 
 
0

 
 
(11
)
 
 
0

 
       Credit default swaps
 
2

 
 
0

 
 
1

 
 
0

 
 
3

 
 
0

 
       Interest rate swaps
 
0

 
 
0

 
 
5

 
 
0

 
 
(1
)
 
 
0

 
       Interest rate swaptions
 
0

 
 
0

 
 
0

 
 
0

 
 
1

 
 
0

 
       Futures
 
0

 
 
0

 
 
(1
)
 
 
0

 
 
(89
)
 
 
0

 
  Total non- qualifying strategies
 
128

 
 
0

 
 
121

 
 
0

 
 
54

 
 
0

 
          Total
 
$
(255
)
 
 
$
(42
)
 
 
$
(10
)
 
 
$
7

 
 
$
31

 
 
$
108

 
(1) Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).
(2) Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)
Offsetting Assets
Offsetting of Financial Assets and Derivative Assets
2016
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Assets
 
Gross Amount
Offset in
Balance Sheet
 
Net Amount of Assets Presented
 in Balance Sheet
 
Financial Instruments
 
Securities
Collateral
 
Cash Collateral Received
 
Net Amount
Derivative
  assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      assets subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
$
1,080

 
 
 
$
0

 
 
 
$
1,080

 
 
 
$
(698
)
 
 
$
0

 
 
$
(382
)
 
 
 
$
0

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
127

 
 
 

 
 
 
127

 
 
 

 
 


 
 

 
 
 
127

 
    Total derivative
      assets
 
1,207

 
 
 
0

 
 
 
1,207

 
 
 
(698
)
 
 
0

 
 
(382
)
 
 
 
127

 
Securities lending
   and similar
   arrangements
 
513

 
 
 
0

 
 
 
513

 
 
 
0

 
 
0

 
 
(513
)
 
 
 
0

 
    Total
 
$
1,720

 
 
 
$
0

 
 
 
$
1,720

 
 
 
$
(698
)
 
 
$
0

 
 
$
(895
)
 
 
 
$
127

 


2015
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Assets
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Assets Presented in Balance Sheet
 
Financial
Instruments
Securities Collateral
Cash Collateral Received
 
Net Amount
Derivative
  assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      assets subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
$
574

 
 
 
$
0

 
 
 
$
574

 
 
 
$
(51
)
 
 
$
(190
)
 
 
$
(326
)
 
 
 
$
7

 
    Derivative
      assets not subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
102

 
 
 
 
 
 
 
102

 
 
 


 
 


 
 


 
 
 
102

 
    Total derivative
      assets
 
676

 
 
 
0

 
 
 
676

 
 
 
(51
)
 
 
(190
)
 
 
(326
)
 
 
 
109

 
Securities lending
   and similar
   arrangements
 
921

 
 
 
0

 
 
 
921

 
 
 
0

 
 
0

 
 
(921
)
 
 
 
0

 
    Total
 
$
1,597

 
 
 
$
0

 
 
 
$
1,597

 
 
 
$
(51
)
 
 
$
(190
)
 
 
$
(1,247
)
 
 
 
$
109

 
Offsetting Liabilities
Offsetting of Financial Liabilities and Derivative Liabilities
2016
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Liabilities
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Liabilities Presented in Balance Sheet
 
Financial Instruments
 
Securities Collateral
 
Cash Collateral Pledged
 
Net Amount
Derivative
  liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      liabilities subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
$
(1,852
)
 
 
 
$
0

 
 
 
$
(1,852
)
 
 
 
$
698

 
 
$
1,130

 
 
$
21

 
 
 
$
(3
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(146
)
 
 
 
 
 
 
 
(146
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(146
)
 
    Total derivative
      liabilities
 
(1,998
)
 
 
 
0

 
 
 
(1,998
)
 
 
 
698

 
 
1,130

 
 
21

 
 
 
(149
)
 
Securities lending
   and similar
   arrangements
 
(526
)
 
 
 
0

 
 
 
(526
)
 
 
 
513

 
 
0

 
 
0

 
 
 
(13
)
 
    Total
 
$
(2,524
)
 
 
 
$
0

 
 
 
$
(2,524
)
 
 
 
$
1,211

 
 
$
1,130

 
 
$
21

 
 
 
$
(162
)
 


2015
 
 
 
Gross Amounts Not Offset
in Balance Sheet
 
 
(In millions)
Gross Amount of Recognized Liabilities
 
Gross Amount Offset in Balance Sheet
 
Net Amount of Liabilities Presented in Balance Sheet
 
Financial Instruments
 
Securities Collateral
 
Cash Collateral Pledged
 
Net Amount
Derivative
  liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Derivative
      liabilities subject
      to a master netting
      agreement or
      offsetting
      arrangement
 
$
(78
)
 
 
 
$
0

 
 
 
$
(78
)
 
 
 
$
51

 
 
$
18

 
 
$
3

 
 
 
$
(6
)
 
    Derivative
      liabilities not
      subject to a
      master netting
      agreement or
      offsetting
      arrangement
 
(293
)
 
 
 
 
 
 
 
(293
)
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(293
)
 
    Total derivative
      liabilities
 
(371
)
 
 
 
0

 
 
 
(371
)
 
 
 
51

 
 
18

 
 
3

 
 
 
(299
)
 
Securities lending
   and similar
   arrangements
 
(941
)
 
 
 
0

 
 
 
(941
)
 
 
 
921

 
 
0

 
 
0

 
 
 
(20
)
 
    Total
 
$
(1,312
)
 
 
 
$
0

 
 
 
$
(1,312
)
 
 
 
$
972

 
 
$
18

 
 
$
3

 
 
 
$
(319
)
 
v3.6.0.2
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis
The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis as of December 31.
  
2016
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale, carried at
fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
25,387

 
 
 
$
827

 
 
 
$
0

 
 
 
$
26,214

 
Municipalities
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
Mortgage- and asset-backed securities
 
0

 
 
 
1,139

 
 
 
198

 
 
 
1,337

 
Public utilities
 
0

 
 
 
7,667

 
 
 
16

 
 
 
7,683

 
Sovereign and supranational
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
Banks/financial institutions
 
0

 
 
 
6,038

 
 
 
25

 
 
 
6,063

 
Other corporate
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
Total fixed maturities
 
25,387

 
 
 
48,134

 
 
 
239

 
 
 
73,760

 
  Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
Other corporate
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
Total perpetual securities
 
0

 
 
 
1,633

 
 
 
0

 
 
 
1,633

 
Equity securities
 
1,300

 
 
 
6

 
 
 
3

 
 
 
1,309

 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
0

 
 
 
365

 
 
 
125

 
 
 
490

 
Foreign currency forwards
 
0

 
 
 
672

 
 
 
0

 
 
 
672

 
Foreign currency options
 
0

 
 
 
43

 
 
 
0

 
 
 
43

 
Credit default swaps
 
0

 
 
 
0

 
 
 
2

 
 
 
2

 
Total other assets
 
0

 
 
 
1,080

 
 
 
127

 
 
 
1,207

 
Other investments
 
276

 
 
 
0

 
 
 
0

 
 
 
276

 
Cash and cash equivalents
 
4,859

 
 
 
0

 
 
 
0

 
 
 
4,859

 
Total assets
 
$
31,822

 
 
 
$
50,853

 
 
 
$
369

 
 
 
$
83,044

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
0

 
 
 
$
84

 
 
 
$
146

 
 
 
$
230

 
Foreign currency forwards
 
0

 
 
 
1,717

 
 
 
0

 
 
 
1,717

 
Foreign currency options
 
0

 
 
 
51

 
 
 
0

 
 
 
51

 
Total liabilities
 
$
0

 
 
 
$
1,852

 
 
 
$
146

 
 
 
$
1,998

 

 



  
2015
(In millions)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities available for sale, carried at
fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
18,669

 
 
 
$
607

 
 
 
$
0

 
 
 
$
19,276

 
Municipalities
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
Mortgage- and asset-backed securities
 
0

 
 
 
362

 
 
 
220

 
 
 
582

 
Public utilities
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
Sovereign and supranational
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
Banks/financial institutions
 
0

 
 
 
5,993

 
 
 
26

 
 
 
6,019

 
Other corporate
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
Total fixed maturities
 
18,669

 
 
 
46,434

 
 
 
246

 
 
 
65,349

 
  Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
Other corporate
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
Total perpetual securities
 
0

 
 
 
1,947

 
 
 
0

 
 
 
1,947

 
Equity securities
 
489

 
 
 
6

 
 
 
3

 
 
 
498

 
Other assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
0

 
 
 
462

 
 
 
101

 
 
 
563

 
Foreign currency forwards
 
0

 
 
 
107

 
 
 
0

 
 
 
107

 
Foreign currency options
 
0

 
 
 
5

 
 
 
0

 
 
 
5

 
Credit default swaps
 
0

 
 
 
0

 
 
 
1

 
 
 
1

 
Total other assets
 
0

 
 
 
574

 
 
 
102

 
 
 
676

 
Other investments
 
176

 
 
 
0

 
 
 
0

 
 
 
176

 
Cash and cash equivalents
 
4,350

 
 
 
0

 
 
 
0

 
 
 
4,350

 
Total assets
 
$
23,684

 
 
 
$
48,961

 
 
 
$
351

 
 
 
$
72,996

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency swaps
 
$
0

 
 
 
$
21

 
 
 
$
293

 
 
 
$
314

 
Foreign currency forwards
 
0

 
 
 
49

 
 
 
0

 
 
 
49

 
Foreign currency options
 
0

 
 
 
8

 
 
 
0

 
 
 
8

 
Total liabilities
 
$
0

 
 
 
$
78

 
 
 
$
293

 
 
 
$
371

 
Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost
The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value as of December 31.
 
2016
(In millions)
Carrying
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Total
Fair
Value
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity,
carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
20,702

 
 
$
26,040

 
 
 
$
0

 
 
 
$
0

 
 
 
$
26,040

 
Municipalities
 
350

 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
Mortgage and asset-backed
securities
 
30

 
 
0

 
 
 
10

 
 
 
22

 
 
 
32

 
Public utilities
 
3,201

 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
Sovereign and
supranational
 
2,602

 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
Banks/financial institutions
 
3,731

 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
Other corporate
 
2,734

 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
Other investments
 
1,174

 
 
0

 
 
 
0

 
 
 
1,142

 
 
 
1,142

 
 Total assets
 
$
34,524

 
 
$
26,040

 
 
 
$
13,959

 
 
 
$
1,164

 
 
 
$
41,163

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other policyholders’ funds
 
$
6,659

 
 
$
0

 
 
 
$
0

 
 
 
$
6,540

 
 
 
$
6,540

 
Notes payable
(excluding capital leases)
 
5,339

 
 
0

 
 
 
0

 
 
 
5,530

 
 
 
5,530

 
Total liabilities
 
$
11,998

 
 
$
0

 
 
 
$
0

 
 
 
$
12,070

 
 
 
$
12,070

 

 
 
 
 
2015
(In millions)
Carrying
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity,
carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government and agencies
 
$
20,004

 
 
$
23,391

 
 
 
$
0

 
 
 
$
0

 
 
 
$
23,391

 
Municipalities
 
341

 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
Mortgage and asset-backed
securities
 
36

 
 
0

 
 
 
12

 
 
 
26

 
 
 
38

 
Public utilities
 
3,092

 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
Sovereign and
supranational
 
2,555

 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
Banks/financial institutions
 
4,431

 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
Other corporate
 
3,000

 
 
0

 
 
 
3,216

 
 
 
0

 
 
 
3,216

 
Other investments
 
118

 
 
0

 
 
 
0

 
 
 
118

 
 
 
118

 
  Total assets
 
$
33,577

 
 
$
23,391

 
 
 
$
14,103

 
 
 
$
144

 
 
 
$
37,638

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other policyholders’ funds
 
$
6,285

 
 
$
0

 
 
 
$
0

 
 
 
$
6,160

 
 
 
$
6,160

 
Notes payable
(excluding capital leases)
 
4,951

 
 
0

 
 
 
0

 
 
 
5,256

 
 
 
5,256

 
Total liabilities
 
$
11,236

 
 
$
0

 
 
 
$
0

 
 
 
$
11,416

 
 
 
$
11,416

 

Amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.
Fair Value Assets Available-for-Sale Securities Primary Pricing Sources
The following tables present the pricing sources for the fair values of our fixed maturities, perpetual securities, and equity securities as of December 31.
 
 
2016
(In millions)
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
25,387

 
 
 
$
827

 
 
 
$
0

 
 
 
$
26,214

 
               Total government and agencies
 
 
25,387

 
 
 
827

 
 
 
0

 
 
 
26,214

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
               Total municipalities
 
 
0

 
 
 
1,295

 
 
 
0

 
 
 
1,295

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,139

 
 
 
0

 
 
 
1,139

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
198

 
 
 
198

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
1,139

 
 
 
198

 
 
 
1,337

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
7,667

 
 
 
0

 
 
 
7,667

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
16

 
 
 
16

 
               Total public utilities
 
 
0

 
 
 
7,667

 
 
 
16

 
 
 
7,683

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
               Total sovereign and supranational
 
 
0

 
 
 
1,469

 
 
 
0

 
 
 
1,469

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
6,038

 
 
 
0

 
 
 
6,038

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
25

 
 
 
25

 
               Total banks/financial institutions
 
 
0

 
 
 
6,038

 
 
 
25

 
 
 
6,063

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
               Total other corporate
 
 
0

 
 
 
29,699

 
 
 
0

 
 
 
29,699

 
                  Total fixed maturities
 
 
25,387

 
 
 
48,134

 
 
 
239

 
 
 
73,760

 
      Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
               Total banks/financial institutions
 
 
0

 
 
 
1,420

 
 
 
0

 
 
 
1,420

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
               Total other corporate
 
 
0

 
 
 
213

 
 
 
0

 
 
 
213

 
                  Total perpetual securities
 
 
0

 
 
 
1,633

 
 
 
0

 
 
 
1,633

 
      Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
1,300

 
 
 
6

 
 
 
0

 
 
 
1,306

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
3

 
 
 
3

 
               Total equity securities
 
 
1,300

 
 
 
6

 
 
 
3

 
 
 
1,309

 
                     Total securities available for sale
 
 
$
26,687

 
 
 
$
49,773

 
 
 
$
242

 
 
 
$
76,702

 


 
 
2015
(In millions)
 
Quoted Prices in Active Markets
for Identical Assets
(Level 1)
 
Significant Observable
Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
18,669

 
 
 
$
607

 
 
 
$
0

 
 
 
$
19,276

 
               Total government and agencies
 
 
18,669

 
 
 
607

 
 
 
0

 
 
 
19,276

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
               Total municipalities
 
 
0

 
 
 
1,208

 
 
 
0

 
 
 
1,208

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
362

 
 
 
0

 
 
 
362

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
220

 
 
 
220

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
362

 
 
 
220

 
 
 
582

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
               Total public utilities
 
 
0

 
 
 
7,479

 
 
 
0

 
 
 
7,479

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
               Total sovereign and supranational
 
 
0

 
 
 
1,407

 
 
 
0

 
 
 
1,407

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
5,993

 
 
 
0

 
 
 
5,993

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
26

 
 
 
26

 
               Total banks/financial institutions
 
 
0

 
 
 
5,993

 
 
 
26

 
 
 
6,019

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
               Total other corporate
 
 
0

 
 
 
29,378

 
 
 
0

 
 
 
29,378

 
                  Total fixed maturities
 
 
18,669

 
 
 
46,434

 
 
 
246

 
 
 
65,349

 
      Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
               Total banks/financial institutions
 
 
0

 
 
 
1,742

 
 
 
0

 
 
 
1,742

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
               Total other corporate
 
 
0

 
 
 
205

 
 
 
0

 
 
 
205

 
                  Total perpetual securities
 
 
0

 
 
 
1,947

 
 
 
0

 
 
 
1,947

 
      Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
489

 
 
 
6

 
 
 
0

 
 
 
495

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
3

 
 
 
3

 
               Total equity securities
 
 
489

 
 
 
6

 
 
 
3

 
 
 
498

 
                     Total securities available for sale
 
 
$
19,158

 
 
 
$
48,387

 
 
 
$
249

 
 
 
$
67,794

 
Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources
 
 
2016
(In millions)
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
26,040

 
 
 
$
0

 
 
 
$
0

 
 
 
$
26,040

 
               Total government and agencies
 
 
26,040

 
 
 
0

 
 
 
0

 
 
 
26,040

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
               Total municipalities
 
 
0

 
 
 
457

 
 
 
0

 
 
 
457

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
10

 
 
 
0

 
 
 
10

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
22

 
 
 
22

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
10

 
 
 
22

 
 
 
32

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
               Total public utilities
 
 
0

 
 
 
3,536

 
 
 
0

 
 
 
3,536

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
               Total sovereign and supranational
 
 
0

 
 
 
2,877

 
 
 
0

 
 
 
2,877

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
               Total banks/financial institutions
 
 
0

 
 
 
3,900

 
 
 
0

 
 
 
3,900

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
               Total other corporate
 
 
0

 
 
 
3,179

 
 
 
0

 
 
 
3,179

 
                  Total securities held to maturity
 
 
$
26,040

 
 
 
$
13,959

 
 
 
$
22

 
 
 
$
40,021

 
 
 
2015
(In millions)
 
Quoted Prices in Active Markets
for Identical Assets
(Level 1)
 
Significant Observable
Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         Government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
$
23,391

 
 
 
$
0

 
 
 
$
0

 
 
 
$
23,391

 
               Total government and agencies
 
 
23,391

 
 
 
0

 
 
 
0

 
 
 
23,391

 
         Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
               Total municipalities
 
 
0

 
 
 
415

 
 
 
0

 
 
 
415

 
         Mortgage- and asset-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
12

 
 
 
0

 
 
 
12

 
            Broker/other
 
 
0

 
 
 
0

 
 
 
26

 
 
 
26

 
               Total mortgage- and asset-backed securities
 
 
0

 
 
 
12

 
 
 
26

 
 
 
38

 
         Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
               Total public utilities
 
 
0

 
 
 
3,203

 
 
 
0

 
 
 
3,203

 
         Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
               Total sovereign and supranational
 
 
0

 
 
 
2,711

 
 
 
0

 
 
 
2,711

 
         Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
               Total banks/financial institutions
 
 
0

 
 
 
4,546

 
 
 
0

 
 
 
4,546

 
         Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
            Third party pricing vendor
 
 
0

 
 
 
3,189

 
 
 
0

 
 
 
3,189

 
            Broker/other
 
 
0

 
 
 
27

 
 
 
0

 
 
 
27

 
               Total other corporate
 
 
0

 
 
 
3,216

 
 
 
0

 
 
 
3,216

 
                  Total securities held to maturity
 
 
$
23,391

 
 
 
$
14,103

 
 
 
$
26

 
 
 
$
37,520

 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables present the changes in fair value of our available-for-sale investments and derivatives classified as Level 3 as of December 31.
2016
 
Fixed Maturities
 
Equity
Securities
 
Derivatives(1)
 
 
(In millions)
Mortgage-
and
Asset-
Backed
Securities
 
Public
Utilities
 
Banks/
Financial
Institutions
 
 
 
 
Foreign
Currency
Swaps
 
Credit
Default
Swaps
 
Total
Balance, beginning of period
$
220

 
$
0

 
$
26

 
 
$
3

 
$
(192
)
 
$
1

 
$
58

Realized investment gains (losses) included
in earnings
0

 
0

 
0

 
 
0

 
194

 
1

 
195

Unrealized gains (losses) included in other
comprehensive income (loss)
38

 
0

 
(1
)
 
 
0

 
(22
)
 
0

 
15

Purchases, issuances, sales and settlements:
 
 
 
 
 
 
 
 
 

 

 

Purchases
0

 
16

 
0

 
 
0

 
0

 
0

 
16

Issuances
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Sales
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Settlements
(60
)
 
0

 
0

 
 
0

 
(1
)
 
0

 
(61
)
Transfers into Level 3
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Transfers out of Level 3
0

 
0

 
0

 
 
0

 
0

 
0

 
0

Balance, end of period
$
198

 
$
16

 
$
25

 
 
$
3

 
$
(21
)
 
$
2

 
$
223

Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at
the end of the period included in realized
investment gains (losses)
$
0

 
$
0

 
$
0

 
 
$
0

 
$
194

 
$
1

 
$
195


(1) Derivative assets and liabilities are presented net

2015
  
Fixed Maturities
 
Perpetual
Securities
 
Equity
Securities
 
Derivatives(1)
 
  
(In millions)
Mortgage-
and
Asset-
Backed
Securities
 
Banks/
Financial
Institutions
 
Banks/
Financial
Institutions
 
 
 
Foreign
Currency
Swaps
 
Credit
Default
Swaps
 
Total
Balance, beginning of period
$
223

 
$
26

 
$
149

 
$
3

 
$
(212
)
 
$
0

 
$
189

Realized investment gains (losses) included in
earnings
0

 
0

 
0

 
0

 
(15
)
 
1

 
(14
)
Unrealized gains (losses) included in other
comprehensive income (loss)
(1
)
 
0

 
(2
)
 
0

 
(1
)
 
0

 
(4
)
Purchases, issuances, sales and settlements:


 


 


 


 


 


 


Purchases
0

 
0

 
0

 
0

 
0

 
0

 
0

Issuances
0

 
0

 
0

 
0

 
0

 
0

 
0

Sales
0

 
0

 
(147
)
 
0

 
0

 
0

 
(147
)
Settlements
(2
)
 
0

 
0

 
0

 
36

 
0

 
34

Transfers into Level 3
0

 
0

 
0

 
0

 
0

 
0

 
0

Transfers out of Level 3
0

 
0

 
0

 
0

 
0

 
0

 
0

Balance, end of period
$
220

 
$
26

 
$
0

 
$
3

 
$
(192
)
 
$
1

 
$
58

Changes in unrealized gains (losses) relating
to Level 3 assets and liabilities still held at
the end of the period included in realized
investment gains (losses)
$
0

 
$
0

 
$
0

 
$
0

 
$
(15
)
 
$
1

 
$
(14
)

(1) Derivative assets and liabilities are presented net
Fair Value Inputs Assets Quantitative Information
2015
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
  Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
    Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
       Mortgage- and asset-backed securities
 
 
$
220

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
       Banks/financial institutions
 
 
26

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
    Equity securities
 
 
3

 
 
Net asset value
 
Offered quotes
 
$1-$677 ($7)
 
  Other assets:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
7

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
32 - 147 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
 
 
 
94

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
       Credit default swaps
 
 
1

 
 
Discounted cash flow
 
Base correlation
 
    53.26% - 58.40%
(e) 
 
 
 
 
 
 
 
 
CDS spreads
 
123 bps
 
 
 
 
 
 
 
 
 
Recovery rate
 
36.87%
 
            Total assets
 
 
$
351

 
 
 
 
 
 
 
 

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.
(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices


The following tables summarize the significant unobservable inputs used in the valuation of our Level 3 available-for-sale investments and derivatives as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.
2016
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
  Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
    Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
       Mortgage- and asset-backed securities
 
 
$
198

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
       Public utilities
 
 
16

 
 
Discounted cash flow
 
Historical volatility
 
N/A
(d) 
       Banks/financial institutions
 
 
25

 
 
Consensus pricing
 
Offered quotes
 
N/A
(d) 
    Equity securities
 
 
3

 
 
Net asset value
 
Offered quotes
 
$1 - $701 ($8)
 
  Other assets:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
16

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
17 - 172 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
 
 
 
29

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
16 - 88 bps
 
 
 
 
80

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
       Credit default swaps
 
 
2

 
 
Discounted cash flow
 
Base correlation
 
52.18% - 56.07%
(e) 
 
 
 
 
 
 
 
 
CDS spreads
 
54 bps
 
 
 
 
 
 
 
 
 
Recovery rate
 
36.69%
 
            Total assets
 
 
$
369

 
 
 
 
 
 
 
 

(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
(d) N/A represents securities where we receive unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.
(e) Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices
Fair Value Inputs Liabilities Quantitative Information
2016
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
$
113

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
17 - 172 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
 
 
 
23

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
24 - 216 bps
 
 
 
 
10

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.34% - 2.59%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.22% - .80%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
21.47%
(c) 
            Total liabilities
 
 
$
146

 
 
 
 
 
 
 
 
(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
2015
(In millions)
 
Fair Value
 
Valuation Technique(s)
 
Unobservable Input
 
Range
(Weighted Average)
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
       Foreign currency swaps
 
 
$
158

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
32 - 147 bps
 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
 
 
 
120

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
CDS spreads
 
35 - 213 bps
 
 
 
 
15

 
 
Discounted cash flow
 
Interest rates (USD)
 
2.20% - 2.62%
(a) 
 
 
 
 
 
 
 
 
Interest rates (JPY)
 
.42% - 1.22%
(b) 
 
 
 
 
 
 
 
 
Foreign exchange rates
 
20.05%
(c) 
            Total liabilities
 
 
$
293

 
 
 
 
 
 
 
 
(a) Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
(b) Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
(c) Based on 10 year volatility of JPY/USD exchange rate
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES (Tables)
 12 Months Ended
Dec. 31, 2016
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Schedule of Deferred Policy Acquisition Costs
The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.
  
2016
 
2015
(In millions)
Japan
 
U.S.
 
Japan
 
U.S.
Deferred policy acquisition costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of year
 
$
5,370

 
 
 
$
3,141

 
 
 
$
5,211

 
 
 
$
3,062

 
Capitalization
 
864

 
 
 
583

 
 
 
738

 
 
 
578

 
Amortization
 
(644
)
 
 
 
(497
)
 
 
 
(578
)
 
 
 
(488
)
 
Foreign currency translation and other
 
175

 
 
 
1

 
 
 
(1
)
 
 
 
(11
)
 
Balance, end of year
 
$
5,765

 
 
 
$
3,228

 
 
 
$
5,370

 
 
 
$
3,141

 
Advertising Expense
Advertising expense, which is included in insurance expenses in the consolidated statements of earnings, was as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Advertising expense:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
100

 
 
 
$
82

 
 
 
$
103

 
Aflac U.S.
 
124

 
 
 
129

 
 
 
126

 
          Total advertising expense
 
$
224

 
 
 
$
211

 
 
 
$
229

 
Schedule Of Depreciation And Amortization Expense
Depreciation and other amortization expenses, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Depreciation expense
 
$
48

 
 
 
$
44

 
 
 
$
47

 
Other amortization expense
 
6

 
 
 
6

 
 
 
8

 
          Total depreciation and other amortization expense
 
$
54

 
 
 
$
50

 
 
 
$
55

 
Schedule of Lease Expenses
Lease and rental expense, which are included in insurance expenses in the consolidated statements of earnings, were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Lease and rental expense:
 
 
 
 
 
 
 
 
 
 
 
Aflac Japan
 
$
53

 
 
 
$
46

 
 
 
$
52

 
Aflac U.S.
 
21

 
 
 
18

 
 
 
15

 
Other
 
1

 
 
 
1

 
 
 
1

 
          Total lease and rental expense
 
$
75

 
 
 
$
65

 
 
 
$
68

 
v3.6.0.2
POLICY LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2016
Insurance Loss Reserves [Abstract]  
Liability for Future Policy Benefits by Product Segment
The liability for future policy benefits as of December 31 consisted of the following:
  
  
 
Liability Amounts
 
 
Interest Rates
(In millions)
Policy
Issue Year
 
2016
 
2015
 
 
Year of
Issue
 
In 20
Years
Health insurance:
 
 
 
 
 
 
 
 
 
 
 
 
Japan:
1992 - 2016
 
$
8,912

 
$
7,633

 
 
1.0 - 2.5
%
 
1.0 - 2.5
%
 
1974 - 2013
 
1,118

 
1,078

 
 
2.7 - 2.75
 
 
2.25 - 2.75
 
 
1998 - 2016
 
11,687

 
11,008

 
 
3.0
 
 
3.0
 
 
1997 - 1999
 
2,485

 
2,435

 
 
3.5
 
 
3.5
 
 
1994 - 1996
 
3,069

 
2,998

 
 
4.0 - 4.5
 
 
4.0 - 4.5
 
 
1987 - 1994
 
14,372

 
14,161

 
 
5.5
 
 
5.5
 
 
1985 - 1991
 
1,871

 
1,868

 
 
5.25 - 6.75
 
 
5.25 - 5.5
 
 
1978 - 1984
 
2,134

 
2,163

 
 
6.5
 
 
5.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.:
2013 - 2016
 
75

 
57

 
 
3.0 - 3.5
 
 
3.0 - 3.5
 
 
2012 - 2016
 
1,062

 
794

 
 
3.75
 
 
3.75
 
 
2011
 
319

 
300

 
 
4.75
 
 
4.75
 
 
2005 - 2010
 
3,004

 
2,986

 
 
5.5
 
 
5.5
 
 
1988 - 2004
 
669

 
687

 
 
8.0
 
 
6.0
 
 
1986 - 2004
 
1,265

 
1,276

 
 
6.0
 
 
6.0
 
 
1981 - 1986
 
166

 
174

 
 
6.5 - 7.0
 
 
5.5 - 6.5
 
 
1998 - 2004
 
1,295

 
1,279

 
 
7.0
 
 
7.0
 
 
Other
 
19

 
21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany eliminations:
2015
 
(630
)
(1) 
(646
)
(1) 
 
2.0
 
 
2.0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life insurance:
 
 
 
 
 
 
 
 
 
 
 
 
Japan:
2001 - 2016
 
7,255

 
5,441

 
 
1.0 - 1.85
 
 
1.0 - 1.85
 
 
2011 - 2016
 
4,151

 
3,226

 
 
2.0
 
 
2.0
 
 
2009 - 2011
 
2,861

 
2,332

 
 
2.25
 
 
2.25
 
 
1992 - 2006
 
5

 
5

 
 
2.19
 
 
1.55
 
 
2005 - 2011
 
1,488

 
1,330

 
 
2.5
 
 
2.5
 
 
1985 - 2006
 
2,007

 
1,962

 
 
2.7
 
 
2.25
 
 
2007 - 2011
 
1,220

 
1,105

 
 
2.75
 
 
2.75
 
 
1999 - 2011
 
2,102

 
1,988

 
 
3.0
 
 
3.0
 
 
1996 - 2009
 
657

 
635

 
 
3.5
 
 
3.5
 
 
1994 - 1996
 
897

 
877

 
 
4.0 - 4.5
 
 
4.0 - 4.5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.:
1956 - 2016
 
571

 
514

 
 
3.5 - 6.0
 
 
3.5 - 6.0
 
Total
 
 
$
76,106

 
$
69,687

 
 
 
 
 
 
 
(1) Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements
Schedule of Liability for Unpaid Claims Adjustment Expense
Changes in the liability for unpaid policy claims were as follows for the years ended December 31:
(In millions)
2016
 
2015
 
2014
Unpaid supplemental health claims, beginning of year
 
$
3,548

 
 
 
$
3,412

 
 
 
$
3,537

 
Less reinsurance recoverables
 
26

 
 
 
7

 
 
 
9

 
Net balance, beginning of year
 
3,522

 
 
 
3,405

 
 
 
3,528

 
Add claims incurred during the year related to:
 
 
 
 
 
 
 
 
 
 
 
Current year
 
7,037

 
 
 
6,416

 
 
 
6,866

 
Prior years
 
(465
)
 
 
 
(353
)
 
 
 
(301
)
 
Total incurred
 
6,572

 
 
 
6,063

 
 
 
6,565

 
Less claims paid during the year on claims incurred during:
 
 
 
 
 
 
 
 
 
 
 
Current year
 
4,613

 
 
 
4,227

 
 
 
4,532

 
Prior years
 
1,865

 
 
 
1,718

 
 
 
1,873

 
Total paid
 
6,478

 
 
 
5,945

 
 
 
6,405

 
Effect of foreign exchange rate changes on unpaid claims
 
64

 
 
 
(1
)
 
 
 
(283
)
 
Net balance, end of year
 
3,680

 
 
 
3,522

 
 
 
3,405

 
Add reinsurance recoverables
 
27

 
 
 
26

 
 
 
7

 
Unpaid supplemental health claims, end of year
 
3,707

 
 
 
3,548

 
 
 
3,412

 
Unpaid life claims, end of year
 
338

 
 
 
254

 
 
 
218

 
Total liability for unpaid policy claims
 
$
4,045

 
 
 
$
3,802

 
 
 
$
3,630

 
v3.6.0.2
REINSURANCE (Tables)
 12 Months Ended
Dec. 31, 2016
Reinsurance Disclosures [Abstract]  
Effects of Reinsurance
The following table reconciles direct premium income and direct benefits and claims to net amounts after the effect of reinsurance for the years ended December 31.
(In millions)
2016
2015
Direct premium income
 
$
19,592

 
 
$
17,904

 
Ceded to other companies:
 
 
 
 
 
 
    Ceded Aflac Japan closed blocks
 
(560
)
 
 
(481
)
 
    Other
 
(48
)
 
 
(39
)
 
Assumed from other companies:
 
 
 
 
 
 
    Retrocession activities
 
234

 
 
178

 
    Other
 
7

 
 
8

 
Net premium income
 
$
19,225

 
 
$
17,570

 
 
 
 
 
 
 
 
Direct benefits and claims
 
$
13,240

 
 
$
12,041

 
Ceded benefits and change in reserves for future benefits:
 
 
 
 
 
 
    Ceded Aflac Japan closed blocks
 
(509
)
 
 
(437
)
 
    Eliminations
 
58

 
 
46

 
    Other
 
(38
)
 
 
(30
)
 
Assumed from other companies:
 
 
 
 
 
 
    Retrocession activities
 
222

 
 
167

 
    Eliminations
 
(58
)
 
 
(46
)
 
    Other
 
4

 
 
5

 
Benefits and claims, net
 
$
12,919

 
 
$
11,746

 
v3.6.0.2
NOTES PAYABLE (Tables)
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
A summary of notes payable as of December 31 follows:
(In millions)
2016
 
2015
2.65% senior notes due February 2017
 
$
649

 
 
 
$
651

 
2.40% senior notes due March 2020
 
547

 
 
 
546

 
4.00% senior notes due February 2022
 
348

 
 
 
348

 
3.625% senior notes due June 2023
 
696

 
 
 
696

 
3.625% senior notes due November 2024
 
745

 
 
 
744

 
3.25% senior notes due March 2025
 
445

 
 
 
445

 
2.875% senior notes due October 2026
 
298

 
 
 
0

 
6.90% senior notes due December 2039
 
220

 
 
 
393

 
6.45% senior notes due August 2040
 
254

 
 
 
445

 
4.00% senior notes due October 2046
 
394

 
 
 
0

 
5.50% subordinated debentures due September 2052
 
486

 
 
 
486

 
Yen-denominated Uridashi notes:
 
 
 
 
 
 
 
2.26% notes paid September 2016 (principal amount 8 billion yen)
 
0

 
 
 
66

 
Yen-denominated Samurai notes:
 
 
 
 
 
 
 
1.84% notes paid July 2016 (principal amount 15.8 billion yen)
 
0

 
 
 
131

 
Yen-denominated loans:
 
 
 
 
 
 
 
Variable interest rate loan due September 2021 (.31% in 2016, principal amount 5.0 billion yen)
 
43

 
 
 
0

 
Variable interest rate loan due September 2023 (.46% in 2016, principal amount 25.0 billion yen)
 
214

 
 
 
0

 
Capitalized lease obligations payable through 2023
 
21

 
 
 
20

 
Total notes payable
 
$
5,360

 
 
 
$
4,971

 

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to debt issuance costs.
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.
Schedule of Maturities of Long Term Debt
The aggregate contractual maturities of notes payable during each of the years after December 31, 2016, are as follows:
(In millions)
Long-term
Debt
 
Capitalized
Lease
Obligations
 
Total
Notes
Payable
2017
 
$
650

 
 
 
$
6

 
 
 
$
656

 
2018
 
0

 
 
 
6

 
 
 
6

 
2019
 
0

 
 
 
5

 
 
 
5

 
2020
 
550

 
 
 
2

 
 
 
552

 
2021
 
43

 
 
 
1

 
 
 
44

 
Thereafter
 
4,145

 
 
 
1

 
 
 
4,146

 
Total
 
$
5,388

 
 
 
$
21

 
 
 
$
5,409

 
v3.6.0.2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows:
(In millions)
Foreign
 
U.S.
 
Total
2016:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
650

 
 
 
$
234

 
 
 
$
884

 
Deferred
 
136

 
 
 
388

 
 
 
524

 
Total income tax expense
 
$
786

 
 
 
$
622

 
 
 
$
1,408

 
2015:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
1,063

 
 
 
$
225

 
 
 
$
1,288

 
Deferred
 
42

 
 
 
(1
)
 
 
 
41

 
Total income tax expense
 
$
1,105

 
 
 
$
224

 
 
 
$
1,329

 
2014:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
995

 
 
 
$
84

 
 
 
$
1,079

 
Deferred
 
125

 
 
 
336

 
 
 
461

 
Total income tax expense
 
$
1,120

 
 
 
$
420

 
 
 
$
1,540

 
Schedule of Effective Income Tax Rate Reconciliation
The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Income taxes based on U.S. statutory rates
 
$
1,424

 
 
 
$
1,352

 
 
 
$
1,572

 
Utilization of foreign tax credit
 
(30
)
 
 
 
(27
)
 
 
 
(32
)
 
Nondeductible expenses
 
8

 
 
 
3

 
 
 
5

 
Other, net
 
6

 
 
 
1

 
 
 
(5
)
 
Income tax expense
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 
Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation
Total income tax expense for the years ended December 31 was allocated as follows:
(In millions)
2016
 
2015
 
2014
Statements of earnings
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation gains (losses) during period
 
70

 
 
 
16

 
 
 
(419
)
 
Unrealized gains (losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on investment
securities during period
 
962

 
 
 
(931
)
 
 
 
2,237

 
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings
 
18

 
 
 
21

 
 
 
19

 
Unrealized gains (losses) on derivatives during period
 
1

 
 
 
0

 
 
 
(3
)
 
Pension liability adjustment during period
 
(16
)
 
 
 
(7
)
 
 
 
(31
)
 
Total income tax expense (benefit) related to items of
other comprehensive income (loss)
 
1,035

 
 
 
(901
)
 
 
 
1,803

 
Additional paid-in capital (exercise of stock options)
 
(10
)
 
 
 
4

 
 
 
(7
)
 
Total income taxes
 
$
2,433

 
 
 
$
432

 
 
 
$
3,336

 
Schedule of Deferred Tax Assets and Liabilities
The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows:
(In millions)
2016
 
2015
Deferred income tax liabilities:
 
 
 
 
 
 
 
Deferred policy acquisition costs
 
$
2,439

 
 
 
$
2,282

 
Unrealized gains on investment securities
 
2,636

 
 
 
1,684

 
Premiums receivable
 
111

 
 
 
139

 
Policy benefit reserves
 
1,638

 
 
 
1,313

 
Depreciation
 
70


 
 
61

 
Other
 
0


 
 
0

 
Total deferred income tax liabilities
 
6,894

 
 
 
5,479

 
Deferred income tax assets:
 
 
 
 
 
 
 
Other basis differences in investment securities
 
1,167

 
 
 
1,422

 
Unfunded retirement benefits
 
13

 
 
 
15

 
Other accrued expenses
 
11

 
 
 
7

 
Policy and contract claims
 
146

 
 
 
113

 
Foreign currency loss on Japan branch
 
185

 
 
 
208

 
Deferred compensation
 
210

 
 
 
181

 
Capital loss carryforwards
 
3

 
 
 
0

 
Other
 
103

 
 
 
95

 
Total deferred income tax assets
 
1,838

 
 
 
2,041

 
Net deferred income tax liability
 
5,056

 
 
 
3,438

 
Current income tax liability
 
331

 
 
 
902

 
Total income tax liability
 
$
5,387

 
 
 
$
4,340

 
Summary of Income Tax Contingencies
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31:
(In millions)
 
2016
 
 
2015
 
Balance, beginning of year
 
$
264


 
$
309


Additions for tax positions of prior years
 
33

  
 
0

  
Reductions for tax positions of prior years
 
(3
)
  
 
(45
)
 
Balance, end of year
 
$
294


 
$
264
v3.6.0.2
SHAREHOLDERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2016
Stockholders' Equity Note [Abstract]  
Schedule of Common Stock Outstanding Roll Forward
The following table is a reconciliation of the number of shares of the Company's common stock for the years ended December 31.
(In thousands of shares)
2016
 
2015
 
2014
Common stock - issued:
 
 
 
 
 
Balance, beginning of period
669,723
 
668,132
 
667,046
Exercise of stock options and issuance of restricted shares
1,526
 
1,591
 
1,086
Balance, end of period
671,249
 
669,723
 
668,132
Treasury stock:
 
 
 
 
 
Balance, beginning of period
245,343
 
225,687
 
207,633
Purchases of treasury stock:
 
 
 
 
 
Open market
21,618
 
21,179
 
19,660
Other
330
 
247
 
157
Dispositions of treasury stock:
 
 
 
 
 
Shares issued to AFL Stock Plan
(1,064)
 
(1,209)
 
(1,251)
Exercise of stock options
(683)
 
(465)
 
(391)
Other
(105)
 
(96)
 
(121)
Balance, end of period
265,439
 
245,343
 
225,687
Shares outstanding, end of period
405,810
 
424,380
 
442,445
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following table presents the approximate number of share-based awards to purchase shares, on a weighted-average basis, that were considered to be anti-dilutive and were excluded from the calculation of diluted earnings per share at December 31:
(In thousands)
2016
 
2015
 
2014
Anti-dilutive share-based awards
 
911

 
 
 
1,862

 
 
 
1,215

 
Schedule of Weighted Average Number of Shares
The weighted-average shares used in calculating earnings per share for the years ended December 31 were as follows: 
(In thousands of shares)
2016
 
2015
 
2014
Weighted-average outstanding shares used for calculating basic EPS
411,471

 
430,654

 
451,204

Dilutive effect of share-based awards
2,450

 
2,518

 
2,796

Weighted-average outstanding shares used for calculating diluted EPS
413,921

 
433,172

 
454,000
Changes in Accumulated Other Comprehensive Income (Detail)
The table below is a reconciliation of accumulated other comprehensive income by component for the years ended December 31.

Changes in Accumulated Other Comprehensive Income
2016
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension
Liability
Adjustment
 
Total
Balance, beginning of period
 
$
(2,196
)
 
 
 
$
2,986

 
 
 
$
(26
)
 
 
 
$
(139
)
 
 
 
$
625

 
Other comprehensive
income (loss) before
reclassification
 
213

 
 
 
1,854

 
 
 
2

 
 
 
(32
)
 
 
 
2,037

 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(35
)
 
 
 
0

 
 
 
3

 
 
 
(32
)
 
Net current-period other
comprehensive
income (loss)
 
213

 
 
 
1,819

 
 
 
2

 
 
 
(29
)
 
 
 
2,005

 
Balance, end of period
 
$
(1,983
)
 
 
 
$
4,805

 
 
 
$
(24
)
 
 
 
$
(168
)
 
 
 
$
2,630

 
All amounts in the table above are net of tax.
2015
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension Liability Adjustment
 
Total
Balance, beginning of period
 
$
(2,541
)
 
 
 
$
4,672

 
 
 
$
(26
)
 
 
 
$
(126
)
 
 
 
$
1,979

 
Other comprehensive
income (loss) before
reclassification
 
345

 
 
 
(1,646
)
 
 
 
0

 
 
 
(13
)
 
 
 
(1,314
)
 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(40
)
 
 
 
0

 
 
 
0

 
 
 
(40
)
 
Net current-period other
comprehensive
income (loss)
 
345

 
 
 
(1,686
)
 
 
 
0

 
 
 
(13
)
 
 
 
(1,354
)
 
Balance, end of period
 
$
(2,196
)
 
 
 
$
2,986

 
 
 
$
(26
)
 
 
 
$
(139
)
 
 
 
$
625

 
All amounts in the table above are net of tax.

2014
(In millions)
Unrealized Foreign
Currency Translation
Gains (Losses)
 
Unrealized
Gains (Losses)
on Investment Securities
 
Unrealized
Gains (Losses)
on Derivatives
 
Pension Liability Adjustment
 
Total
Balance, beginning of period
 
$
(1,505
)
 
 
 
$
1,035

 
 
 
$
(12
)
 
 
 
$
(81
)
 
 
 
$
(563
)
 
Other comprehensive
income (loss) before
reclassification
 
(1,036
)
 
 
 
3,672

 
 
 
(14
)
 
 
 
(44
)
 
 
 
2,578

 
Amounts reclassified from
accumulated other
comprehensive income
(loss)
 
0

 
 
 
(35
)
 
 
 
0

 
 
 
(1
)
 
 
 
(36
)
 
Net current-period other
comprehensive
income (loss)
 
(1,036
)
 
 
 
3,637

 
 
 
(14
)
 
 
 
(45
)
 
 
 
2,542

 
Balance, end of period
 
$
(2,541
)
 
 
 
$
4,672

 
 
 
$
(26
)
 
 
 
$
(126
)
 
 
 
$
1,979

 
All amounts in the table above are net of tax.
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]
The table below summarizes the amounts reclassified from each component of accumulated other comprehensive income based on source for the years ended December 31.

Reclassifications Out of Accumulated Other Comprehensive Income
(In millions)
2016
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
136

 
Sales and redemptions
 
 
(83
)
 
Other-than-temporary impairment
losses realized
 
 
53

 
Total before tax
 
 
(18
)
 
Tax (expense) or benefit(1)
 
 
$
35

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(15
)
 
Acquisition and operating expenses(2)
Prior service (cost) credit
 
11

 
Acquisition and operating expenses(2)
 
 
1

 
Tax (expense) or benefit(1)
 
 
$
(3
)
 
Net of tax
Total reclassifications for the period
 
$
32

 
Net of tax

(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see
Note 14 for additional details).
 
(In millions)
2015
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
214

 
Sales and redemptions
 
 
(153
)
 
Other-than-temporary impairment
losses realized
 
 
61

 
Total before tax
 
 
(21
)
 
Tax (expense) or benefit(1)
 
 
$
40

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(17
)
 
Acquisition and operating expenses(2)
Prior service (cost) credit
 
17

 
Acquisition and operating expenses(2)
 
 
0

 
Tax (expense) or benefit(1)
 
 
$
0

 
Net of tax
Total reclassifications for the period
 
$
40

 
Net of tax
(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).
(In millions)
2014
 
Details about Accumulated Other Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive Income
Affected Line Item in the
Statements of Earnings
Unrealized gains (losses) on available-for-sale
securities
 
$
57

 
Sales and redemptions
 
 
(3
)
 
Other-than-temporary impairment
losses realized
 
 
54

 
Total before tax
 
 
(19
)
 
Tax (expense) or benefit(1)
 
 
$
35

 
Net of tax
Amortization of defined benefit pension items:
 
 
 
 
       Actuarial gains (losses)
 
$
(15
)
 
Acquisition and operating expenses(2)
       Prior service (cost) credit
 
17

 
Acquisition and operating expenses(2)
 
 
(1
)
 
Tax (expense) or benefit(1)
 
 
$
1

 
Net of tax
Total reclassifications for the period
 
$
36

 
Net of tax
(1) Based on 35% tax rate
(2) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).
v3.6.0.2
SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Expense Recognized in Connection with Share Based Awards
The following table presents the impact of the expense recognized in connection with share-based awards for the periods ended December 31.
(In millions, except for per-share amounts)
2016
 
2015
 
2014
Impact on earnings from continuing operations
 
$
68

 
 
 
$
39

 
 
 
$
41

 
Impact on earnings before income taxes
 
68

 
 
 
39

 
 
 
41

 
Impact on net earnings
 
46

 
 
 
27

 
 
 
28

 
Impact on net earnings per share:
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
.11

 
 
 
$
.06

 
 
 
$
.06

 
Diluted
 
.11

 
 
 
.06

 
 
 
.06

 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The following table presents the assumptions used in valuing options granted during the years ended December 31.
 
2016
 
2015
 
2014
Expected term (years)
 
6.4
 
 
 
6.3
 
 
 
6.3
 
Expected volatility
 
27.0
%
 
 
20.0
%
 
 
30.0
%
Annual forfeiture rate
 
3.2
 
 
 
2.8
 
 
 
2.7
 
Risk-free interest rate
 
2.2
 
 
 
2.0
 
 
 
2.8
 
Dividend yield
 
2.9
 
 
 
2.7
 
 
 
2.3
 
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity.
(In thousands of shares)
Stock
Option
Shares
 
Weighted-Average
Exercise Price
Per Share
Outstanding at December 31, 2013
 
9,980

 
 
 
$
47.03

 
Granted in 2014
 
678

 
 
 
61.81

 
Canceled in 2014
 
(115
)
 
 
 
52.01

 
Exercised in 2014
 
(1,236
)
 
 
 
41.04

 
Outstanding at December 31, 2014
 
9,307

 
 
 
48.84

 
Granted in 2015
 
855

 
 
 
61.47

 
Canceled in 2015
 
(231
)
 
 
 
55.70

 
Exercised in 2015
 
(2,013
)
 
 
 
45.15

 
Outstanding at December 31, 2015
 
7,918

 
 
 
50.94

 
Granted in 2016
 
664

 
 
 
61.39

 
Canceled in 2016
 
(181
)
 
 
 
55.63

 
Exercised in 2016
 
(2,061
)
 
 
 
48.91

 
Outstanding at December 31, 2016
 
6,340

 
 
 
$
52.56

 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable
(In thousands of shares)
2016
 
2015
 
2014
Shares exercisable, end of year
 
4,493

 
 
 
6,085

 
 
 
7,497

 
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range
The following table summarizes information about stock options outstanding and exercisable at December 31, 2016.
(In thousands of shares)
 
 
Options Outstanding
 
Options Exercisable
 
Range of
Exercise Prices
Per Share
 
 
Stock Option
Shares
Outstanding
 
Wgtd.-Avg.
Remaining
Contractual
Life (Yrs.)
 
Wgtd.-Avg.
Exercise
Price
Per Share
 
Stock Option
Shares
Exercisable
 
Wgtd.-Avg.
Exercise
Price
Per Share
 
$
14.99

-
$
47.06

 
 
 
1,639

 
 
 
3.0
 
 
 
$
36.38

 
 
 
1,639

 
 
 
$
36.38

 
 
47.23

-
55.72

 
 
 
1,348

 
 
 
3.8
 
 
 
51.11

 
 
 
1,348

 
 
 
51.11

 
 
56.24

-
61.45

 
 
 
1,706

 
 
 
7.0
 
 
 
59.05

 
 
 
632

 
 
 
57.92

 
 
61.81

-
63.16

 
 
 
1,322

 
 
 
4.1
 
 
 
62.10

 
 
 
802

 
 
 
61.87

 
 
63.34

-
72.42

 
 
 
325

 
 
 
8.5
 
 
 
67.36

 
 
 
72

 
 
 
67.50

 
 
$
14.99

-
$
72.42

 
 
 
6,340

 
 
 
4.8
 
 
 
$
52.56

 
 
 
4,493

 
 
 
$
48.88

 
Schedule of Cash Proceeds Received from Share-based Payment Awards
The following table summarizes stock option activity during the years ended December 31.
(In millions)
2016
 
2015
 
2014
Total intrinsic value of options exercised
 
$
41

 
 
 
$
36

 
 
 
$
25

 
Cash received from options exercised
 
68

 
 
 
68

 
 
 
39

 
Tax benefit realized as a result of options exercised and
restricted stock releases
 
45

 
 
 
25

 
 
 
17

 
Schedule of Nonvested Restricted Stock Units Activity
The value of restricted stock awards is based on the fair market value of our common stock at the date of grant. The following table summarizes restricted stock activity during the years ended December 31. 
(In thousands of shares)
Shares
 
Weighted-Average
Grant-Date
Fair Value
Per  Share
Restricted stock at December 31, 2013
 
1,671

 
 
 
$
52.12

 
Granted in 2014
 
584

 
 
 
62.12

 
Canceled in 2014
 
(27
)
 
 
 
52.66

 
Vested in 2014
 
(348
)
 
 
 
56.95

 
Restricted stock at December 31, 2014
 
1,880

 
 
 
54.33

 
Granted in 2015
 
638

 
 
 
61.51

 
Canceled in 2015
 
(145
)
 
 
 
57.52

 
Vested in 2015
 
(558
)
 
 
 
48.41

 
Restricted stock at December 31, 2015
 
1,815

 
 
 
58.42

 
Granted in 2016
 
878

 
 
 
61.68

 
Canceled in 2016
 
(76
)
 
 
 
60.65

 
Vested in 2016
 
(749
)
 
 
 
53.68

 
Restricted stock at December 31, 2016
 
1,868

 
 
 
$
61.76

 
v3.6.0.2
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS (Tables)
 12 Months Ended
Dec. 31, 2016
Insurance [Abstract]  
Reconciliation of Capital and Surplus between NAIC and Nebraska state basis
A reconciliation of Aflac's capital and surplus between SAP and practices permitted by the state of Nebraska is shown below:
(In millions)
2016
 
2015
Capital and surplus, Nebraska state basis
 
$
11,221

 
 
 
$
11,298

 
State Permitted Practice:
 
 
 
 
 
 
 
Refundable lease deposits – Japan
 
(40
)
 
 
 
(38
)
 
Reinsurance - Japan
 
(764
)
 
 
 
(707
)
 
Capital and surplus, NAIC basis
 
$
10,417

 
 
 
$
10,553

 
Profits Repatriated Disclosure
Profits repatriated by Aflac Japan to Aflac U.S. were as follows for the years ended December 31:
  
In Dollars
 
In Yen
(In millions of dollars and billions of yen)
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Profit repatriation
 
$
1,286

 
 
 
$
2,139

 
 
 
$
1,704

 
 
 
138.5

 
 
 
259.0

 
 
 
181.4

 
v3.6.0.2
BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2016
Schedule of Net Funded Status
Information with respect to our benefit plans' assets and obligations as of December 31 was as follows:

 
 
Pension Benefits
 
Other
 
 
Japan
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
2015
 
2016
2015
 
2016
2015
Projected benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Benefit obligation, beginning of year
 
 
$
276

 
 
$
267

 
 
 
$
735

 
 
$
717

 
 
 
$
40

 
 
$
44

 
      Service cost
 
 
16

 
 
15

 
 
 
23

 
 
23

 
 
 
1

 
 
1

 
      Interest cost
 
 
9

 
 
1

 
 
 
29

 
 
18

 
 
 
2

 
 
2

 
      Actuarial (gain) loss
 
 
29

 
 
0

 
 
 
29

 
 
(6
)
 
 
 
(4
)
 
 
(5
)
 
      Benefits and expenses paid
 
 
(8
)
 
 
(7
)
 
 
 
(18
)
 
 
(17
)
 
 
 
(2
)
 
 
(2
)
 
      Effect of foreign exchange
rate changes
 
 
7

 
 
0

 
 
 
0

 
 
0

 
 
 
0

 
 
0

 
               Benefit obligation, end of year
 
 
329

 
 
276

 
 
 
798

 
 
735

 
 
 
37

 
 
40

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Fair value of plan assets,
beginning of year
 
 
198

 
 
183

 
 
 
336

 
 
341

 
 
 
0

 
 
0

 
      Actual return on plan assets
 
 
9

 
 
1

 
 
 
24

 
 
(6
)
 
 
 
0

 
 
0

 
      Employer contributions
 
 
25

 
 
21

 
 
 
17

 
 
18

 
 
 
2

 
 
2

 
      Benefits and expenses paid
 
 
(8
)
 
 
(7
)
 
 
 
(18
)
 
 
(17
)
 
 
 
(2
)
 
 
(2
)
 
      Effect of foreign exchange
rate changes
 
 
5

 
 
0

 
 
 
0

 
 
0

 
 
 
0

 
 
0

 
               Fair value of plan assets, end of year
 
 
229

 
 
198

 
 
 
359

 
 
336

 
 
 
0

 
 
0

 
Funded status of the plans(1)
 
 
$
(100
)
 
 
$
(78
)
 
 
 
$
(439
)
 
 
$
(399
)
 
 
 
$
(37
)
 
 
$
(40
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other
comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net actuarial (gain) loss
 
 
$
67

 
 
$
42

 
 
 
$
189

 
 
$
175

 
 
 
$
7

 
 
$
12

 
      Prior service (credit) cost
 
 
(2
)
 
 
(2
)
 
 
 
(4
)
 
 
(4
)
 
 
 
0

 
 
(11
)
 
               Total included in accumulated
other comprehensive income
 
 
$
65

 
 
$
40

 
 
 
$
185

 
 
$
171

 
 
 
$
7

 
 
$
1

 
Accumulated benefit obligation
 
 
$
288

 
 
$
244

 
 
 
$
670

 
 
$
621

 
 
 
  N/A

(2) 
 
N/A

(2) 
(1) Recognized in other liabilities in the consolidated balance sheets
(2) Not applicable
Schedule of Assumptions Used
 
Pension Benefits
 
Other
 
Japan
 
 
U.S.
 
 
Postretirement Benefits
 
2016
 
2015
 
2014
 
 
2016
 
2015
 
2014
 
 
2016
 
2015
 
2014
 
Weighted-average actuarial assumptions:
  
 
  
 
  
 
 
  
 
  
 
  
 
  
  
 
  
 
  
  
Discount rate - net periodic benefit cost
1.75
%
 
1.75
%
 
2.25
%
 
 
4.50
%
 
4.50
%
 
4.75
%
 
 
4.50
%
 
4.50
%
 
4.75
%
 
Discount rate - benefit obligations
1.25

 
1.75

 
1.75

 
 
4.25

 
4.50

 
4.50

 
  
4.25

 
4.50

 
4.50

  
Expected long-term return on plan assets
2.00

 
2.00

 
2.00

 
 
7.00

 
7.25

 
7.50

 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
Rate of compensation increase
N/A
(1) 
N/A
(1) 
N/A
(1) 
 
4.00

 
4.00

 
4.00

 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
Health care cost trend rates
N/A
(1) 
N/A
(1) 
N/A
(1) 
 
N/A
(1) 
N/A
(1) 
N/A
(1) 
  
5.20

(2) 
5.30

(2) 
5.70

(2) 
(1) Not applicable
(2)For the years 2016, 2015 and 2014, the health care cost trend rates are expected to trend down to 4.5% in 74 years, 4.5% in 78 years, and 4.6% in 78 years, respectively.
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates
A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects as of December 31, 2016:
(In millions)
 
 
 
 
One percentage point increase:
 
 
 
 
Increase in total service and interest costs
 
 
$
0

 
Increase in postretirement benefit obligation
 
 
2

 
 
 
 
 
 
One percentage point decrease:
 
 
 
 
Decrease in total service and interest costs
 
 
$
0

 
Decrease in postretirement benefit obligation
 
 
2

 
Schedule of Net Benefit Costs
Pension and other postretirement benefit expenses, included in acquisition and operating expenses in the consolidated statements of earnings for the years ended December 31, included the following components:
 
 
Pension Benefits
 
Other
 
 
 
Japan
 
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
 
 
$
16

 
 
 
$
15

 
 
 
$
15

 
 
 
$
23

 
 
 
$
23

 
 
 
$
20

 
 
 
$
1

 
 
 
$
1

 
 
 
$
1

 
Interest cost
 
 
9

 
 
 
1

 
 
 
9

 
 
 
29

 
 
 
18

 
 
 
38

 
 
 
2

 
 
 
2

 
 
 
2

 
Expected return on plan
assets
 
 
(4
)
 
 
 
(4
)
 
 
 
(4
)
 
 
 
(23
)
 
 
 
(22
)
 
 
 
(20
)
 
 
 
0

 
 
 
0

 
 
 
0

 
Amortization of net actuarial
loss
 
 
1

 
 
 
1

 
 
 
1

 
 
 
13

 
 
 
14

 
 
 
11

 
 
 
1

 
 
 
2

 
 
 
3

 
Amortization of prior service
cost (credit)
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
(11
)
 
 
 
(17
)
 
 
 
(17
)
 
Net periodic (benefit) cost
 
 
$
22

 
 
 
$
13

 
 
 
$
21

 
 
 
$
42

 
 
 
$
33

 
 
 
$
49

 
 
 
$
(7
)
 
 
 
$
(12
)
 
 
 
$
(11
)
 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:
 
 
Pension Benefits
 
Other
 
 
Japan
 
U.S.
 
Postretirement Benefits
(In millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net actuarial loss (gain)
 
 
$
26

 
 
 
$
3

 
 
 
$
12

 
 
 
$
27

 
 
 
$
22

 
 
 
$
67

 
 
 
$
(4
)
 
 
 
$
(5
)
 
 
 
$
(3
)
 
Amortization of net actuarial loss
 
 
(1
)
 
 
 
(1
)
 
 
 
(1
)
 
 
 
(13
)
 
 
 
(14
)
 
 
 
(11
)
 
 
 
(1
)
 
 
 
(2
)
 
 
 
(3
)
 
Amortization of prior
service cost
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
0

 
 
 
11

 
 
 
17

 
 
 
17

 
     Total
 
 
$
25

 
 
 
$
2

 
 
 
$
11

 
 
 
$
14

 
 
 
$
8

 
 
 
$
56

 
 
 
$
6

 
 
 
$
10

 
 
 
$
11

 
Schedule of Expected Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
 
 
Pension Benefits
 
Other
(In millions)
 
Japan
U.S.
 
Postretirement Benefits
2017
 
 
$
13

 
 
$
22

 
 
 
$
2

 
2018
 
 
8

 
 
23

 
 
 
2

 
2019
 
 
9

 
 
24

 
 
 
3

 
2020
 
 
10

 
 
25

 
 
 
3

 
2021
 
 
10

 
 
27

 
 
 
3

 
2022-2026
 
 
74

 
 
180

 
 
 
18

 
Schedule of Allocation of Plan Assets
Asset allocation targets as of December 31, 2016 were as follows:
 
 
Japan Pension
 
U.S. Pension
Domestic equities
 
 
11
%
 
 
 
40
%
 
International equities
 
 
15

 
 
 
20

 
Fixed income securities
 
 
59

 
 
 
40

 
Other
 
 
15

 
 
 
0

 
     Total
 
 
100
%
 
 
 
100
%
 
Plan Assets  
Fair Value, Assets Measured on Recurring Basis
The following table presents the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 2 in the fair value hierarchy, except cash and cash equivalents which are classified as Level 1.
(In millions)
2016
 
2015
Japan pension plan assets:
 
 
 
 
 
 
 
     Equities:
 
 
 
 
 
 
 
        Japanese equity securities
 
$
28

 
 
 
$
22

 
        International equity securities
 
40

 
 
 
33

 
     Fixed income securities:
 
 
 
 
 
 
 
        Japanese bonds
 
79

 
 
 
71

 
        International bonds
 
55

 
 
 
48

 
     Insurance contracts
 
27

 
 
 
23

 
     Cash and cash equivalents
 
0

 
 
 
1

 
        Total
 
$
229

 
 
 
$
198

 

The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.

(In millions)
2016
 
2015
U.S. pension plan assets:
 
 
 
 
 
 
 
     Mutual funds:
 
 
 
 
 
 
 
        Large cap equity funds
 
$
104

 
 
 
$
94

 
        Mid cap equity funds
 
19

 
 
 
16

 
        Real estate equity funds
 
10

 
 
 
10

 
        International equity funds
 
85

 
 
 
77

 
        Fixed income bond funds
 
136

 
 
 
134

 
     Aflac Incorporated common stock
 
4

 
 
 
4

 
     Cash and cash equivalents
 
1

 
 
 
1

 
        Total
 
$
359

 
 
 
$
336

 
v3.6.0.2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Rental Payments for Operating Leases
Future minimum lease payments due under non-cancelable operating leases at December 31, 2016, were as follows:

(In millions)
 
2017
$
62

2018
41

2019
18

2020
13

2021
11

Thereafter
0

   Total future minimum lease payments
$
145
v3.6.0.2
Unaudited Consolidated Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
In management's opinion, the following quarterly financial information fairly presents the results of operations for such periods and is prepared on a basis consistent with our annual audited financial statements.
 
(In millions, except for per-share amounts)
March 31,
2016
 
June 30,
2016
 
September 30,
2016
 
December 31,
2016
Net premium income
 
$
4,602

 
 
 
$
4,823

 
 
 
$
5,022

 
 
 
$
4,778

 
Net investment income
 
801

 
 
 
822

 
 
 
842

 
 
 
813

 
Realized investment gains (losses)
 
73

 
 
 
(187
)
 
 
 
(146
)
 
 
 
137

 
Other income (loss)
 
(25
)
 
 
 
(21
)
 
 
 
(2
)
 
 
 
227

 
Total revenues
 
5,451

 
 
 
5,437

 
 
 
5,716

 
 
 
5,955

 
Total benefits and expenses
 
4,334

 
 
 
4,603

 
 
 
4,753

 
 
 
4,802

 
Earnings before income taxes
 
1,117

 
 
 
834

 
 
 
963

 
 
 
1,153

 
Total income tax
 
386

 
 
 
286

 
 
 
334

 
 
 
402

 
Net earnings
 
$
731

 
 
 
$
548

 
 
 
$
629

 
 
 
$
751

 
Net earnings per basic share
 
$
1.75

 
 
 
$
1.33

 
 
 
$
1.54

 
 
 
$
1.85

 
Net earnings per diluted share
 
1.74

 
 
 
1.32

 
 
 
1.53

 
 
 
1.84

 
Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In millions, except for per-share amounts)
March 31,
2015
 
June 30,
2015
 
September 30,
2015
 
December 31,
2015
Net premium income
 
$
4,432

 
 
 
$
4,364

 
 
 
$
4,380

 
 
 
$
4,394

 
Net investment income
 
782

 
 
 
777

 
 
 
784

 
 
 
792

 
Realized investment gains (losses)
 
13

 
 
 
127

 
 
 
(114
)
 
 
 
114

 
Other income (loss)
 
(1
)
 
 
 
19

 
 
 
(10
)
 
 
 
19

 
Total revenues
 
5,226

 
 
 
5,287

 
 
 
5,040

 
 
 
5,319

 
Total benefits and expenses
 
4,213

 
 
 
4,413

 
 
 
4,176

 
 
 
4,209

 
Earnings before income taxes
 
1,013

 
 
 
874

 
 
 
864

 
 
 
1,110

 
Total income tax
 
350

 
 
 
301

 
 
 
297

 
 
 
380

 
Net earnings
 
$
663

 
 
 
$
573

 
 
 
$
567

 
 
 
$
730

 
Net earnings per basic share
 
$
1.52

 
 
 
$
1.33

 
 
 
$
1.32

 
 
 
$
1.72

 
Net earnings per diluted share
 
1.51

 
 
 
1.32

 
 
 
1.32

 
 
 
1.71

 

Quarterly amounts may not agree in total to the corresponding annual amounts due to rounding.
v3.6.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Summary of Signficant Accounting Policies - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Aflac Japan      
Significant Accounting Policies [Line Items]      
Aflac Japan's percentage of the Company's total revenues 71.00% 70.00% 72.00%
Percentage of the Company assets 83.00% 83.00%  
Accounting Standards Update 2015-03      
Significant Accounting Policies [Line Items]      
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Liabilities   $ 40  
Maximum      
Significant Accounting Policies [Line Items]      
Estimation of Percent of Leases Within Scope of the Guidance to Total Assets 1.00%    
Estimation of Percent of Revenues Within Scope of the Guidance to Total Revenues 1.00%    
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
segment
Dec. 31, 2015
USD ($)
Segment Reporting Information [Line Items]    
Reportable insurance business segments | segment 2  
Total receivables related to Aflac Japan's operations $ 669 $ 705
Aflac Japan    
Segment Reporting Information [Line Items]    
Total receivables related to Aflac Japan's operations $ 207 $ 257
Percentage of total receivables related to Aflac Japan's operations 30.90% 36.40%
Maximum | Machinery and equipment    
Segment Reporting Information [Line Items]    
Property, Plant and Equipment, Useful Life 20 years  
Maximum | Building    
Segment Reporting Information [Line Items]    
Property, Plant and Equipment, Useful Life 50 years  
Maximum | Furniture and fixtures    
Segment Reporting Information [Line Items]    
Property, Plant and Equipment, Useful Life 20 years  
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Revenues (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net $ 4,778 $ 5,022 $ 4,823 $ 4,602 $ 4,394 $ 4,380 $ 4,364 $ 4,432 $ 19,225 $ 17,570 $ 19,072
Net investment income 813 842 822 801 792 784 777 782 3,278 3,135 3,319
Total revenues $ 5,955 $ 5,716 $ 5,437 $ 5,451 $ 5,319 $ 5,040 $ 5,287 $ 5,226 22,559 20,872 22,728
Other non-operating income (loss)                 109 (35) [1] 67
Realized investment gains (losses), non-operating [2]                 (208) 55 171
Gain (loss) on change in fair value of derivative, interest rate component, operating                 85 85 44
Life insurance                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 4,740 4,289 4,753
Aflac Japan                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 13,537 12,046 13,861
Net investment income                 2,554 2,436 2,662
Other income (loss)                 40 31 32
Total revenues                 16,131 14,513 16,555
Aflac Japan | Cancer                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 5,639 4,933 5,596
Aflac Japan | Medical and other health                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 3,429 3,092 3,770
Aflac Japan | Life insurance                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 4,469 4,021 4,495
Aflac U.S.                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 5,454 5,347 5,211
Net investment income                 703 678 645
Other income (loss)                 10 8 3
Total revenues                 6,167 6,033 5,859
Aflac U.S. | Cancer                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 1,299 1,293 1,279
Aflac U.S. | Life insurance                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 271 268 258
Aflac U.S. | Accident and disability                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 2,469 2,391 2,303
Aflac U.S. | Other health                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Premiums Earned, Net                 1,415 1,395 1,371
Other business segments                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues                 275 225 43
Total Business Segments                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues                 22,573 20,771 22,457
Corporate                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues                 284 282 281
Intercompany eliminations                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Total revenues                 $ (199) (201) $ (248)
Twenty Fifteen Profit Repatriation                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Foreign currency transaction gain (loss), realized                   $ (20)  
[1] Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. The loss was offset by derivative gains included in realized investment gains (losses).
[2] Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Pretax Earnings (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 $ 4,303 $ 4,073 $ 4,253
Realized investment gains (losses), non-operating [1]                 (208) 55 171
Other non-operating income (loss)                 (28) [2] (266) [2],[3] 67
Earnings before income taxes $ 1,153 $ 963 $ 834 $ 1,117 $ 1,110 $ 864 $ 874 $ 1,013 4,067 3,862 4,491
Income taxes applicable to pretax operating earnings                 1,491 1,403 1,456
Effect of foreign currency translation on operating earnings                 141 (198) (117)
Gain (loss) on change in fair value of derivative, interest rate component, operating                 85 85 44
Aflac Japan                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 3,334 3,175 3,458
Aflac U.S.                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 1,208 1,101 1,073
Other business segments                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 18 14 (2)
Total Business Segments                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 4,560 4,290 4,529
Interest expense, noninsurance operations                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 (128) (146) (198)
Corporate and eliminations                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Pretax operating earnings                 (129) (71) $ (78)
Senior Notes due 2039 and 2040                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Expense on extinguishment of debt                 $ 137    
8.50% senior notes due May 2019                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Expense on extinguishment of debt                   230  
Twenty Fifteen Profit Repatriation                      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]                      
Foreign currency transaction gain (loss), realized                   $ (20)  
[1] Excluding a gain of $85 in both 2016 and 2015 and $44 in 2014 related to the interest rate component of the change in fair value of foreign currency swaps on notes payable which is classified as an operating gain when analyzing segment operations
[2] Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
[3] Includes a loss of $20 related to the change in value of yen repatriation received in advance of settlement of certain foreign currency derivatives. This loss was offset by derivative gains included in realized investment gains (losses).
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Operations by Segment - Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets $ 129,819 $ 118,256 $ 119,727
Aflac Japan      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets 107,858 97,646 98,525
Aflac U.S.      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets 19,453 18,537 18,383
Other business segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets 270 188 128
Total Business Segments      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets 127,581 116,371 117,036
Corporate      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets 26,476 23,375 24,596
Intercompany eliminations      
Segment Reporting, Asset Reconciling Item [Line Items]      
Assets $ (24,238) $ (21,490) $ (21,905)
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Yen/Dollar Exchange Rates Used (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
¥ / $
Dec. 31, 2015
USD ($)
¥ / $
Dec. 31, 2014
USD ($)
¥ / $
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Weighted-average yen/dollar exchange rate | ¥ / $ 108.70 120.99 105.46
Yen percent strengthening (weakening) 11.30% (12.80%) (7.50%)
Exchange effect on pretax operating earnings (in millions) $ 218 $ (288) $ (180)
Yen/dollar exchange rate at December 31 | ¥ / $ 116.49 120.61  
Yen percent strengthening (weakening) 3.54% (0.05%)  
Exchange effect on total assets      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Exchange effect $ 2,820 $ (36)  
Exchange effect on total liabilities      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Exchange effect $ 3,109 $ (41)  
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Information on Transfers of Funds from Aflac Japan (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment Reporting [Abstract]      
Management fees $ 79 $ 53 $ 39
Allocated expenses 106 101 71
Profit repatriation 1,286 2,139 1,704
Total transfers from Aflac Japan $ 1,471 $ 2,293 $ 1,814
v3.6.0.2
BUSINESS SEGMENT AND FOREIGN INFORMATION - Classes of Property and Equipment (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Property and equipment:    
Land $ 166 $ 166
Buildings 421 400
Equipment 355 329
Total property and equipment 942 895
Less accumulated depreciation 509 468
Net property and equipment $ 433 $ 427
v3.6.0.2
INVESTMENTS - Components of Net Investment Income (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 $ 3,385 $ 3,230 $ 3,399
Less investment expenses                 107 95 80
Net investment income $ 813 $ 842 $ 822 $ 801 $ 792 $ 784 $ 777 $ 782 3,278 3,135 3,319
Fixed maturities                      
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 3,214 3,094 3,249
Perpetual securities                      
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 94 114 141
Equity securities                      
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 35 3 1
Other Investments                      
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 31 15 6
Short term investments and cash equivalents                      
Schedule of Investment Income, Reported Amounts, by Category [Line Items]                      
Gross investment income                 $ 11 $ 4 $ 2
v3.6.0.2
INVESTMENTS - Available-For-Sale Investments in Debt Securities, Perpetual Securities and Equity Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost $ 69,072 $ 62,963
Gross Unrealized Gains 8,722 6,627
Gross Unrealized Losses 1,092 1,796
Fair Value 76,702 67,794
Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 66,363 60,642
Gross Unrealized Gains 8,432 6,405
Gross Unrealized Losses 1,035 1,698
Fair Value 73,760 65,349
Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 1,506 1,841
Gross Unrealized Gains 176 200
Gross Unrealized Losses 49 94
Fair Value 1,633 1,947
Equity securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 1,203 480
Gross Unrealized Gains 114 22
Gross Unrealized Losses 8 4
Fair Value 1,309 498
Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 32,459 25,592
Gross Unrealized Gains 4,951 3,067
Gross Unrealized Losses 261 148
Fair Value 37,149 28,511
Yen-denominated | Equity securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 624 472
Gross Unrealized Gains 83 19
Gross Unrealized Losses 2 4
Fair Value 705 487
Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 33,904 35,050
Gross Unrealized Gains 3,481 3,338
Gross Unrealized Losses 774 1,550
Fair Value 36,611 36,838
Dollar-denominated | Equity securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 579 8
Gross Unrealized Gains 31 3
Gross Unrealized Losses 6 0
Fair Value 604 11
Japan government and agencies | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 22,857 17,293
Gross Unrealized Gains 3,359 1,862
Gross Unrealized Losses 160 0
Fair Value 26,056 19,155
Municipalities | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 1,295 1,208
Municipalities | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 246 128
Gross Unrealized Gains 29 9
Gross Unrealized Losses 8 0
Fair Value 267 137
Municipalities | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 894 926
Gross Unrealized Gains 142 151
Gross Unrealized Losses 8 6
Fair Value 1,028 1,071
Mortgage- and asset-backed securities | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 1,337 582
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 1,096 322
Gross Unrealized Gains 33 33
Gross Unrealized Losses 8 0
Fair Value 1,121 355
Mortgage- and asset-backed securities | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 196 200
Gross Unrealized Gains 20 27
Gross Unrealized Losses 0 0
Fair Value 216 227
Public utilities | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 7,683 7,479
Public utilities | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 1,533 1,400
Gross Unrealized Gains 318 210
Gross Unrealized Losses 3 10
Fair Value 1,848 1,600
Public utilities | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 5,205 5,464
Gross Unrealized Gains 690 636
Gross Unrealized Losses 60 221
Fair Value 5,835 5,879
Sovereign and supranational | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 1,469 1,407
Sovereign and supranational | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 862 791
Gross Unrealized Gains 186 180
Gross Unrealized Losses 5 0
Fair Value 1,043 971
Sovereign and supranational | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 335 331
Gross Unrealized Gains 91 105
Gross Unrealized Losses 0 0
Fair Value 426 436
Banks/financial institutions | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 6,063 6,019
Banks/financial institutions | Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 1,420 1,742
Banks/financial institutions | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 2,673 2,321
Gross Unrealized Gains 403 325
Gross Unrealized Losses 74 105
Fair Value 3,002 2,541
Banks/financial institutions | Yen-denominated | Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 1,266 1,581
Gross Unrealized Gains 128 143
Gross Unrealized Losses 49 93
Fair Value 1,345 1,631
Banks/financial institutions | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 2,570 2,865
Gross Unrealized Gains 507 634
Gross Unrealized Losses 16 21
Fair Value 3,061 3,478
Banks/financial institutions | Dollar-denominated | Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 51 77
Gross Unrealized Gains 24 35
Gross Unrealized Losses 0 1
Fair Value 75 111
Other corporate | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 29,699 29,378
Other corporate | Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Fair Value 213 205
Other corporate | Yen-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 3,192 3,337
Gross Unrealized Gains 623 448
Gross Unrealized Losses 3 33
Fair Value 3,812 3,752
Other corporate | Yen-denominated | Perpetual securities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 189 183
Gross Unrealized Gains 24 22
Gross Unrealized Losses 0 0
Fair Value 213 205
Other corporate | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 24,556 25,154
Gross Unrealized Gains 2,021 1,774
Gross Unrealized Losses 690 1,302
Fair Value 25,887 25,626
U.S. Government and Agencies | Dollar-denominated | Fixed maturities    
Schedule of Available-for-sale Securities [Line Items]    
Cost or Amortized Cost 148 110
Gross Unrealized Gains 10 11
Gross Unrealized Losses 0 0
Fair Value $ 158 $ 121
v3.6.0.2
INVESTMENTS - Held-to-Maturity Investments in Debt Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost $ 33,350 $ 33,459
Gross Unrealized Gains 6,735 4,278
Gross Unrealized Losses 64 217
Fair Value 40,021 37,520
Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Fair Value 40,021 37,520
Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 33,350 33,459
Gross Unrealized Gains 6,735 4,278
Gross Unrealized Losses 64 217
Fair Value 40,021 37,520
Japan government and agencies | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 20,702  
Gross Unrealized Gains 5,338 3,387
Gross Unrealized Losses 0 0
Fair Value 26,040 23,391
Municipalities | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 350 341
Fair Value 457 415
Municipalities | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 350  
Gross Unrealized Gains 107 74
Gross Unrealized Losses 0 0
Fair Value 457 415
Mortgage- and asset-backed securities | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 30 36
Fair Value 32 38
Mortgage- and asset-backed securities | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 30  
Gross Unrealized Gains 2 2
Gross Unrealized Losses 0 0
Fair Value 32 38
Public utilities | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 3,201 3,092
Fair Value 3,536 3,203
Public utilities | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 3,201  
Gross Unrealized Gains 358 205
Gross Unrealized Losses 23 94
Fair Value 3,536 3,203
Sovereign and supranational | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 2,602 2,555
Fair Value 2,877 2,711
Sovereign and supranational | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 2,602  
Gross Unrealized Gains 283 182
Gross Unrealized Losses 8 26
Fair Value 2,877 2,711
Banks/financial institutions | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 3,731 4,431
Fair Value 3,900 4,546
Banks/financial institutions | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 3,731  
Gross Unrealized Gains 195 168
Gross Unrealized Losses 26 53
Fair Value 3,900 4,546
Other corporate | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 2,734 3,000
Fair Value 3,179 3,216
Other corporate | Yen-denominated | Fixed maturities    
Schedule of Held-to-maturity Securities [Line Items]    
Securities held to maturity, fixed maturities, amortized cost 2,734  
Gross Unrealized Gains 452 260
Gross Unrealized Losses 7 44
Fair Value $ 3,179 $ 3,216
v3.6.0.2
INVESTMENTS - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
issuer
investment
Dec. 31, 2015
USD ($)
issuer
investment
Dec. 31, 2014
USD ($)
investment
Schedule of Investments [Line Items]      
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, number of investments | investment 0 0 3
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, amortized cost     $ 424
Reclassified investments from the held-to-maturity portfolio to the available-for-sale portfolio, aggregate unrealized gain (loss)     $ (54)
Percentage that the lending policy requires that the fair value of the securities and/or unrestricted cash received as collateral be of the fair value of the loaned securities 102.00%    
Fair value of debt securities on deposit with regulatory authorities in the United States and Japan $ 17    
Middle market loan program unfunded amount 91 $ 53  
Middle Market Loan Commitment 779    
Commercial mortgage loan commitments 19    
Variable Interest Entity, Consolidated      
Schedule of Investments [Line Items]      
Securities available for sale, fixed maturities, amortized cost 4,168 3,739  
Securities available for sale, equity securities, fair value 1,044 363  
Securities available for sale, fixed maturities, fair value 4,982 4,554  
Securities available for sale, equity securities, cost 972 363  
Variable Interest Entity, Not Consolidated      
Schedule of Investments [Line Items]      
Securities available for sale, fixed maturities, amortized cost 4,729 4,731  
Securities available for sale, fixed maturities, fair value $ 5,261 $ 5,093  
Number of issuers of VIEs not-consolidated | issuer 145 169  
Middle market loans      
Schedule of Investments [Line Items]      
Other investments, net of reserves, amortized cost $ 319 $ 118  
Middle market loans | Variable Interest Entity, Consolidated      
Schedule of Investments [Line Items]      
Other investments held in unit trust, net of reserves, amortized cost 74    
Bank loans | Variable Interest Entity, Consolidated      
Schedule of Investments [Line Items]      
Securities available for sale, fixed maturities, amortized cost 2,000 1,400  
Securities available for sale, fixed maturities, fair value 1,900 $ 1,400  
Commercial mortgage loans      
Schedule of Investments [Line Items]      
Other investments, net of reserves, amortized cost 855    
Commercial mortgage loans | Variable Interest Entity, Consolidated      
Schedule of Investments [Line Items]      
Other investments held in unit trust, net of reserves, amortized cost 745    
Parent Company and Other Business Segments      
Schedule of Investments [Line Items]      
Securities available for sale, fixed maturities, amortized cost 595    
Securities available for sale, fixed maturities, fair value $ 607    
v3.6.0.2
INVESTMENTS - Contractual Maturities of Investments in Fixed Maturities (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Held to maturity:    
Total fixed maturities held to maturity, amortized cost $ 33,350 $ 33,459
Held to maturity:    
Total fixed maturities held to maturity, fair value 40,021 $ 37,520
Aflac Japan    
Available for sale:    
Due in one year or less 180  
Due after one year through five years 3,441  
Due after five years through 10 years 9,374  
Due after 10 years 39,461  
Mortgage- and asset-backed securities 1,144  
Total fixed maturities available for sale, amortized cost 53,600  
Held to maturity:    
Due after one year through five years 2,009  
Due after five years through 10 years 1,584  
Due after 10 years 29,727  
Mortgage- and asset-backed securities 30  
Total fixed maturities held to maturity, amortized cost 33,350  
Available for sale:    
Due in one year or less 204  
Due after one year through five years 3,696  
Due after five years through 10 years 9,694  
Due after 10 years 45,125  
Mortgage- and asset-backed securities 1,184  
Total fixed maturities available for sale, fair value 59,903  
Held to maturity:    
Due after one year through five years 2,112  
Due after five years through 10 years 1,737  
Due after 10 years 36,140  
Mortgage- and asset-backed securities 32  
Total fixed maturities held to maturity, fair value 40,021  
Aflac U.S.    
Available for sale:    
Due in one year or less 103  
Due after one year through five years 617  
Due after five years through 10 years 2,860  
Due after 10 years 8,545  
Mortgage- and asset-backed securities 43  
Total fixed maturities available for sale, amortized cost 12,168  
Held to maturity:    
Due after one year through five years 0  
Due after five years through 10 years 0  
Due after 10 years 0  
Mortgage- and asset-backed securities 0  
Total fixed maturities held to maturity, amortized cost 0  
Available for sale:    
Due in one year or less 105  
Due after one year through five years 668  
Due after five years through 10 years 3,018  
Due after 10 years 9,411  
Mortgage- and asset-backed securities 48  
Total fixed maturities available for sale, fair value 13,250  
Held to maturity:    
Due after one year through five years 0  
Due after five years through 10 years 0  
Due after 10 years 0  
Mortgage- and asset-backed securities 0  
Total fixed maturities held to maturity, fair value $ 0  
v3.6.0.2
INVESTMENTS - Economic Maturities of Investments in Perpetual Securities (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Aflac Japan  
Investments Classified by Economic Maturity Date [Line Items]  
Due in one year or less $ 87
Due after one year through five years 189
Due after 10 years 1,191
Total perpetual securities available for sale 1,467
Due in one year or less 82
Due after one year through five years 213
Due after 10 years 1,282
Total perpetual securities available for sale 1,577
Aflac U.S.  
Investments Classified by Economic Maturity Date [Line Items]  
Due in one year or less 0
Due after one year through five years 0
Due after 10 years 39
Total perpetual securities available for sale 39
Due in one year or less 0
Due after one year through five years 0
Due after 10 years 56
Total perpetual securities available for sale $ 56
v3.6.0.2
INVESTMENTS - Investment Exposures Individually Exceeded Ten Percent of Shareholders' Equity (Detail) - Japan National Government - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Summary of Investment Holdings [Line Items]    
Credit Rating A A
Amortized Cost [1] $ 42,931 $ 36,859
Fair Value [1] $ 51,345 $ 42,025
[1] Japan Government Bonds (JGBs) or JGB-backed securities
v3.6.0.2
INVESTMENTS - Information Regarding Pretax Realized Gains and Losses From Investments (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Gain (Loss) on Investments [Line Items]      
Other-than-temporary impairment losses realized $ (83) $ (153) $ (31)
Derivative gains (losses) (255) (10) 31
Total realized investment gains (losses) (123) 140 215
Fixed maturities      
Gain (Loss) on Investments [Line Items]      
Total realized investment gains (losses) 105 116 184
Perpetual securities      
Gain (Loss) on Investments [Line Items]      
Total realized investment gains (losses) 62 35 0
Equity securities      
Gain (Loss) on Investments [Line Items]      
Net gains (losses) from redemptions 22 0 0
Other-than-temporary impairment losses realized (57) (1) 0
Total realized investment gains (losses) (35) (1) 0
Derivatives and other      
Gain (Loss) on Investments [Line Items]      
Total realized investment gains (losses) (255) (10) 31
Available-for-sale securities | Fixed maturities      
Gain (Loss) on Investments [Line Items]      
Gross gains from sales 77 224 192
Gross losses from sales (134) [1] (8) (12)
Net gains (losses) from redemptions [1] 186 52 34
Other-than-temporary impairment losses realized (24) [1] (152) (31)
Available-for-sale securities | Perpetual securities      
Gain (Loss) on Investments [Line Items]      
Net gains (losses) from redemptions 64 35 0
Other-than-temporary impairment losses realized (2) 0 0
Held-to-maturity Securities | Fixed maturities      
Gain (Loss) on Investments [Line Items]      
Net gains (losses) from redemptions $ 0 $ 0 $ 1
[1] Primarily driven by foreign exchange
v3.6.0.2
INVESTMENTS - Pretax Other-Than-Temporary Impairment Losses by Investment Category (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Gain (Loss) on Investments [Line Items]      
Other-than-temporary impairment losses $ 83 $ 153 $ 31
Equity securities      
Gain (Loss) on Investments [Line Items]      
Other-than-temporary impairment losses $ 57 $ 1 $ 0
v3.6.0.2
INVESTMENTS - Information Regarding Changes in Unrealized Gains and Losses from Investments (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Changes in unrealized gains (losses):      
Changes in unrealized gains (losses) $ 2,799 $ (2,595) $ 5,893
Fixed maturities | Available-for-sale securities      
Changes in unrealized gains (losses):      
Changes in unrealized gains (losses) 2,690 (2,481) 5,629
Fixed maturities | Transferred to held to maturity securities      
Changes in unrealized gains (losses):      
Changes in unrealized gains (losses) 0 0 (10)
Perpetual securities | Available-for-sale securities      
Changes in unrealized gains (losses):      
Changes in unrealized gains (losses) 21 (123) 269
Equity securities      
Changes in unrealized gains (losses):      
Changes in unrealized gains (losses) $ 88 $ 9 $ 5
v3.6.0.2
INVESTMENTS - Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Investments [Abstract]    
Unrealized Gain (Losses) on Available-for-sale Securities $ 7,630 $ 4,831
Deferred income taxes (2,825) (1,845)
Shareholders' equity, unrealized gains (losses) on investment securities $ 4,805 $ 2,986
v3.6.0.2
INVESTMENTS - Fair Value and Gross Unrealized Losses for Securities That Have Been in Continuous Unrealized Loss Position (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value $ 20,275 $ 22,413
Total Unrealized Losses 1,156 2,013
Less Than 12 months Fair Value 14,743 16,529
Less Than 12 months Unrealized Losses 621 1,040
12 months or longer Fair Value 5,532 5,884
12 months or longer Unrealized Losses 535 973
Fixed maturities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 19,536 21,571
Total Unrealized Losses 1,099 1,915
Less Than 12 months Fair Value 14,398 16,122
Less Than 12 months Unrealized Losses 612 1,024
12 months or longer Fair Value 5,138 5,449
12 months or longer Unrealized Losses 487 891
Perpetual securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 479 651
Total Unrealized Losses 49 94
Less Than 12 months Fair Value 85 216
Less Than 12 months Unrealized Losses 1 12
12 months or longer Fair Value 394 435
12 months or longer Unrealized Losses 48 82
Equity securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 260 191
Total Unrealized Losses 8 4
Less Than 12 months Fair Value 260 191
Less Than 12 months Unrealized Losses 8 4
12 months or longer Fair Value 0 0
12 months or longer Unrealized Losses 0 0
Yen-denominated | Fixed maturities | Japan government and agencies    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 3,958  
Total Unrealized Losses 160  
Less Than 12 months Fair Value 3,958  
Less Than 12 months Unrealized Losses 160  
12 months or longer Fair Value 0  
12 months or longer Unrealized Losses 0  
Yen-denominated | Fixed maturities | Municipalities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 105  
Total Unrealized Losses 8  
Less Than 12 months Fair Value 105  
Less Than 12 months Unrealized Losses 8  
12 months or longer Fair Value 0  
12 months or longer Unrealized Losses 0  
Yen-denominated | Fixed maturities | Mortgage- and asset-backed securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 713  
Total Unrealized Losses 8  
Less Than 12 months Fair Value 713  
Less Than 12 months Unrealized Losses 8  
12 months or longer Fair Value 0  
12 months or longer Unrealized Losses 0  
Yen-denominated | Fixed maturities | Public utilities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 635 1,487
Total Unrealized Losses 26 104
Less Than 12 months Fair Value 347 1,062
Less Than 12 months Unrealized Losses 14 73
12 months or longer Fair Value 288 425
12 months or longer Unrealized Losses 12 31
Yen-denominated | Fixed maturities | Sovereign and supranational    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 244 580
Total Unrealized Losses 13 26
Less Than 12 months Fair Value 38 385
Less Than 12 months Unrealized Losses 5 13
12 months or longer Fair Value 206 195
12 months or longer Unrealized Losses 8 13
Yen-denominated | Fixed maturities | Banks/financial institutions    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 1,521 2,350
Total Unrealized Losses 100 158
Less Than 12 months Fair Value 636 1,147
Less Than 12 months Unrealized Losses 19 14
12 months or longer Fair Value 885 1,203
12 months or longer Unrealized Losses 81 144
Yen-denominated | Fixed maturities | Other corporate    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 321 1,151
Total Unrealized Losses 10 77
Less Than 12 months Fair Value 321 343
Less Than 12 months Unrealized Losses 10 5
12 months or longer Fair Value 0 808
12 months or longer Unrealized Losses 0 72
Yen-denominated | Perpetual securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 479 645
Total Unrealized Losses 49 93
Less Than 12 months Fair Value 85 216
Less Than 12 months Unrealized Losses 1 12
12 months or longer Fair Value 394 429
12 months or longer Unrealized Losses 48 81
Yen-denominated | Equity securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 49 191
Total Unrealized Losses 2 4
Less Than 12 months Fair Value 49 191
Less Than 12 months Unrealized Losses 2 4
12 months or longer Fair Value 0 0
12 months or longer Unrealized Losses 0 0
Dollar-denominated | Fixed maturities | Municipalities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 44 80
Total Unrealized Losses 8 6
Less Than 12 months Fair Value 0 80
Less Than 12 months Unrealized Losses 0 6
12 months or longer Fair Value 44 0
12 months or longer Unrealized Losses 8 0
Dollar-denominated | Fixed maturities | Public utilities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 1,265 2,127
Total Unrealized Losses 60 221
Less Than 12 months Fair Value 790 1,689
Less Than 12 months Unrealized Losses 32 132
12 months or longer Fair Value 475 438
12 months or longer Unrealized Losses 28 89
Dollar-denominated | Fixed maturities | Banks/financial institutions    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 268 366
Total Unrealized Losses 16 21
Less Than 12 months Fair Value 238 348
Less Than 12 months Unrealized Losses 10 11
12 months or longer Fair Value 30 18
12 months or longer Unrealized Losses 6 10
Dollar-denominated | Fixed maturities | Other corporate    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 10,462 13,430
Total Unrealized Losses 690 1,302
Less Than 12 months Fair Value 7,252 11,068
Less Than 12 months Unrealized Losses 346 770
12 months or longer Fair Value 3,210 2,362
12 months or longer Unrealized Losses 344 532
Dollar-denominated | Perpetual securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value   6
Total Unrealized Losses   1
Less Than 12 months Fair Value   0
Less Than 12 months Unrealized Losses   0
12 months or longer Fair Value   6
12 months or longer Unrealized Losses   $ 1
Dollar-denominated | Equity securities    
Investments, Unrealized Loss Position [Line Items]    
Total Fair Value 211  
Total Unrealized Losses 6  
Less Than 12 months Fair Value 211  
Less Than 12 months Unrealized Losses 6  
12 months or longer Fair Value 0  
12 months or longer Unrealized Losses $ 0  
v3.6.0.2
INVESTMENTS - Investments in Consolidated Variable Interest Entities (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Variable Interest Entity [Line Items]    
Other investments, amortized cost $ 1,450 [1] $ 294
Asset derivatives 1,207 676
Assets, fair value 83,044 72,996
Liability derivatives, fair value 1,998 371
Liabilities, amortized cost 109,337 100,548
Liabilities, fair value disclosure 1,998 371
Variable Interest Entity, Consolidated    
Variable Interest Entity [Line Items]    
Securities available for sale, fixed maturities, amortized cost 4,168 3,739
Securities available for sale, fixed maturities, fair value 4,982 4,554
Securities available for sale, perpetual securities, amortized cost 237 255
Securities available for sale, perpetual securities, fair value 208 228
Securities available for sale, equity securities, cost 972 363
Securities available for sale, equity securities, fair value 1,044 363
Other investments, amortized cost 819 0
Other investments, fair value disclosure 789 0
Asset derivatives, amortized cost 127 102
Asset derivatives 127 102
Assets, amortized cost 6,323 4,459
Assets, fair value 7,150 5,247
Liability derivatives, amortized cost 146 293
Liability derivatives, fair value 146 293
Liabilities, amortized cost 146 293
Liabilities, fair value disclosure $ 146 $ 293
[1] Includes $819 in 2016 of loan receivables from consolidated variable interest entities
v3.6.0.2
INVESTMENTS - Investments in Variable Interest Entities Not Consolidated (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Variable Interest Entity [Line Items]    
Securities held to maturity, fixed maturities, amortized cost $ 33,350 $ 33,459
Securities held to maturity, fixed maturities, fair value 40,021 37,520
Other investments, amortized cost 1,450 [1] 294
Assets, fair value 83,044 72,996
Variable Interest Entity, Not Consolidated    
Variable Interest Entity [Line Items]    
Securities available for sale, fixed maturities, amortized cost 4,729 4,731
Securities available for sale, fixed maturities, fair value 5,261 5,093
Securities available for sale, perpetual securities, amortized cost 172 249
Securities available for sale, perpetual securities, fair value 200 253
Securities held to maturity, fixed maturities, amortized cost 2,563 2,477
Securities held to maturity, fixed maturities, fair value 2,948 2,636
Other investments, amortized cost 1 0
Other investments, fair value disclosure 1 0
Assets, amortized cost 7,465 7,457
Assets, fair value $ 8,410 $ 7,982
[1] Includes $819 in 2016 of loan receivables from consolidated variable interest entities
v3.6.0.2
INVESTMENTS - Securities Lending Accounted for as Secured Borrowings (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions $ 526 $ 941
Gross amount of recognized liabilities for securities lending 526 941
Amounts related to agreements not included in offsetting disclosure in Note 4 0 0
Japan government and agencies    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions   499
Public utilities    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 62 108
Banks/financial institutions    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 34 13
Other corporate    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 430 321
Maturity Overnight and Continuous    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions [1] 526 442
Maturity Overnight and Continuous | Japan government and agencies    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions [1]   0
Maturity Overnight and Continuous | Public utilities    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions [1] 62 108
Maturity Overnight and Continuous | Banks/financial institutions    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions [1] 34 13
Maturity Overnight and Continuous | Other corporate    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions [1] 430 321
Maturity up to 30 Days    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 0 499
Maturity up to 30 Days | Japan government and agencies    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions   499
Maturity up to 30 Days | Public utilities    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 0 0
Maturity up to 30 Days | Banks/financial institutions    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions 0 0
Maturity up to 30 Days | Other corporate    
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]    
Securities lending transactions $ 0 $ 0
[1] These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.
v3.6.0.2
DERIVATIVE INSTRUMENTS - Additional Information (Detail)
¥ in Billions
 12 Months Ended
Dec. 31, 2016
USD ($)
yr
counterparties
currency
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2016
JPY (¥)
yr
counterparties
currency
Mar. 31, 2015
USD ($)
Nov. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Oct. 31, 2012
USD ($)
Sep. 30, 2012
USD ($)
Jul. 31, 2012
USD ($)
Feb. 29, 2012
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Number of currencies related to foreign currency swaps | currency 1     1              
Number of counterparties | counterparties 16     16              
Number of counterparties that comprise majority of aggregate notional amount of swaps | counterparties 5     5              
Percentage of notional amount of swaps from certain number of counterparties 63.00%     63.00%              
Derivative, Net Liability Position, Aggregate Fair Value $ 1,200,000,000 $ 26,000,000                  
Hedging activity, weighted-average period (in years) | yr 9     9              
Net Derivatives Notional Amount $ 43,927,000,000 22,127,000,000                  
Cash flow hedges                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount 75,000,000 75,000,000                  
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 0 0 $ 0                
Net investment hedge                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount 1,052,000,000 1,029,000,000                  
Net investment hedge gain loss reclassified to earnings net 0 0 $ 0                
Net investment hedge | Foreign currency forwards                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount 209,000,000 $ 763,000,000                  
3.625% senior notes due November 2024                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 750,000,000         $ 750,000,000          
3.25% senior notes due March 2025                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 450,000,000       $ 450,000,000            
3.625% senior notes due June 2023                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 700,000,000           $ 700,000,000        
2.65% senior notes due February 2017                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 400,000,000                 $ 250,000,000 $ 400,000,000
2.40% senior notes due March 2020                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 550,000,000       $ 550,000,000            
4.00% senior notes due February 2022                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 350,000,000                   $ 350,000,000
5.50% subordinated notes due September 2052                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Debt instrument, principal amount 500,000,000             $ 50,000,000 $ 450,000,000    
Twenty Sixteen Profit Repatriation | Foreign currency forwards and options                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount | ¥       ¥ 114.0              
Future profit repatriation | Foreign currency forwards and options                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount | ¥       ¥ 122.6              
Middle market loans | Foreign currency forwards                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount 109,000,000                    
Commercial mortgage loans | Foreign currency forwards                      
Derivative Instruments and Hedging Activities Disclosure [Line Items]                      
Net Derivatives Notional Amount $ 710,000,000                    
v3.6.0.2
DERIVATIVE INSTRUMENTS - Summary of Balance Sheet Classification of Derivative Fair Value Amounts, as well as Gross Asset and Liability Fair Value Amounts (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount $ 43,927 $ 22,127
Net Derivatives Fair Value (791) 305
Derivative asset, fair value, gross asset including not subject to master netting arrangement 1,207 676
Derivative liability, fair value, gross liability including not subject to master netting arrangement 1,998 371
Asset Derivatives Fair Value 1,080 574
Liability Derivatives Fair Value (1,852) (78)
Other assets    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 18,329 11,413
Net Derivatives Fair Value 1,207 676
Asset Derivatives Fair Value 1,207 676
Liability Derivatives Fair Value 0 0
Other Liabilities    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 25,598 10,714
Net Derivatives Fair Value (1,998) (371)
Asset Derivatives Fair Value 0 0
Liability Derivatives Fair Value (1,998) (371)
Cash flow hedges    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 75 75
Net Derivatives Fair Value (10) (15)
Asset Derivatives Fair Value 0 0
Liability Derivatives Fair Value (10) (15)
Cash flow hedges | Foreign currency swaps    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 75 75
Net Derivatives Fair Value (10) (15)
Asset Derivatives Fair Value 0 0
Liability Derivatives Fair Value (10) (15)
Fair value hedges    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 15,189 14,330
Net Derivatives Fair Value (789) 45
Asset Derivatives Fair Value 2 88
Liability Derivatives Fair Value (791) (43)
Fair value hedges | Foreign currency forwards    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 10,965 13,080
Net Derivatives Fair Value (759) 45
Asset Derivatives Fair Value 0 88
Liability Derivatives Fair Value (759) (43)
Fair value hedges | Foreign currency options    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 4,224 1,250
Net Derivatives Fair Value (30) 0
Asset Derivatives Fair Value 2 0
Liability Derivatives Fair Value (32) 0
Net investment hedge    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 1,052 1,029
Net Derivatives Fair Value 27 10
Asset Derivatives Fair Value 46 24
Liability Derivatives Fair Value (19) (14)
Net investment hedge | Foreign currency forwards    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 209 763
Net Derivatives Fair Value 3 13
Asset Derivatives Fair Value 5 19
Liability Derivatives Fair Value (2) (6)
Net investment hedge | Foreign currency options    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 843 266
Net Derivatives Fair Value 24 (3)
Asset Derivatives Fair Value 41 5
Liability Derivatives Fair Value (17) (8)
Non-qualifying strategies    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 27,611 6,693
Net Derivatives Fair Value (19) 265
Asset Derivatives Fair Value 1,159 564
Liability Derivatives Fair Value (1,178) (299)
Non-qualifying strategies | Foreign currency swaps    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 6,266 6,599
Net Derivatives Fair Value 270 264
Asset Derivatives Fair Value 490 563
Liability Derivatives Fair Value (220) (299)
Non-qualifying strategies | Foreign currency forwards    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 21,218 11
Net Derivatives Fair Value (289) 0
Asset Derivatives Fair Value 667 0
Liability Derivatives Fair Value (956) 0
Non-qualifying strategies | Foreign currency options    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 41  
Net Derivatives Fair Value (2)  
Asset Derivatives Fair Value 0  
Liability Derivatives Fair Value (2)  
Non-qualifying strategies | Credit default swaps    
Derivatives, Fair Value [Line Items]    
Net Derivatives Notional Amount 86 83
Net Derivatives Fair Value 2 1
Asset Derivatives Fair Value 2 1
Liability Derivatives Fair Value $ 0 $ 0
v3.6.0.2
DERIVATIVE INSTRUMENTS - Gains (Losses) Recognized on Fair Value Hedging Relationships (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Fixed-maturity securities and equity securities | Foreign currency forwards      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized for derivatives $ 207    
Gains (losses) on derivatives excluded from effectiveness testing (338)    
Gains (losses) on derivatives included in effectiveness testing 545    
Gains (losses) recognized for hedged items (566)    
Ineffectiveness recognized for fair value hedge (21)    
Fixed maturities | Foreign currency forwards      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized for derivatives   $ (133) $ (1,835)
Gains (losses) on derivatives excluded from effectiveness testing   (136) (38)
Gains (losses) on derivatives included in effectiveness testing   3 (1,797)
Gains (losses) recognized for hedged items   (5) 1,819
Ineffectiveness recognized for fair value hedge   (2) 22
Fixed maturities | Foreign currency options      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized for derivatives (95) (4) (41)
Gains (losses) on derivatives excluded from effectiveness testing (18) 3 (4)
Gains (losses) on derivatives included in effectiveness testing (77) (7) (37)
Gains (losses) recognized for hedged items 70 7 38
Ineffectiveness recognized for fair value hedge $ (7) 0 1
Fixed maturities | Interest rate swaptions      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized for derivatives   (95) (318)
Gains (losses) on derivatives excluded from effectiveness testing   19 (36)
Gains (losses) on derivatives included in effectiveness testing   (114) (282)
Gains (losses) recognized for hedged items   99 316
Ineffectiveness recognized for fair value hedge   $ (15) $ 34
v3.6.0.2
DERIVATIVE INSTRUMENTS - Derivatives and Hedging Instruments Gain (Loss) Summary (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]      
Unrealized foreign currency translation gains (losses) during period $ 283 $ 360 $ (1,455)
Derivative and other gains (losses) (255) (10) 31
Derivative and non-derivative hedging instruments gain loss recognized in other comprehensive income effective portion before tax [1] (42) 7 108
Cash flow hedges      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 1 0 (2)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 3 0 (17)
Cash flow hedges | Foreign currency swaps      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 1 0 (2)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 3 0 (17)
Fair value hedges      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) (384) (131) (21)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Fair value hedges | Foreign currency forwards      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) [2] (359) (138) (16)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1],[2] 0 0 0
Fair value hedges | Foreign currency options      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) [2] (25) 3 (3)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1],[2] 0 0 0
Fair value hedges | Interest rate swaptions      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) [2] 0 4 (2)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1],[2] 0 0 0
Net investment hedge      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 0 0 0
Unrealized foreign currency translation gains (losses) during period [1] (45) 7 125
Net investment hedge | Foreign currency forwards      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 0 0 0
Unrealized foreign currency translation gains (losses) during period [1] (118) 4 89
Net investment hedge | Foreign currency options      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 0 0 0
Unrealized foreign currency translation gains (losses) during period [1] 73 0 (3)
Net investment hedge | Non-derivative hedging instruments      
Derivative Instruments, Gain (Loss) [Line Items]      
Net Realized Investment Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) 0 0 0
Unrealized foreign currency translation gains (losses) during period [1] 0 3 39
Non-qualifying strategies      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 128 121 54
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Foreign currency swaps      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 117 16 151
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Foreign currency forwards      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 9 100 (11)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Interest rate swaptions      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 0 0 1
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Interest rate swaps      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 0 5 (1)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Credit default swaps      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 2 1 3
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] 0 0 0
Non-qualifying strategies | Futures      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instrument, Gain (Loss) Recognized in Income, Net 0 (1) (89)
Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) [1] $ 0 $ 0 $ 0
[1] Cash flow hedge items are recorded as unrealized gains (losses) on derivatives and net investment hedge items are recorded in the unrealized foreign currency translation gains (losses) line in the consolidated statement of comprehensive income (loss).
[2] Impact shown net of effect of hedged items (see Fair Value Hedges section of this Note 4 for further detail)
v3.6.0.2
DERIVATIVE INSTRUMENTS - Offsetting of Financial Assets and Derivative Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Offsetting Assets [Line Items]    
Gross amount of recognized derivative assets $ 1,080 $ 574
Gross amount of liabilities offset in balance sheet 0 0
Net amount of derivative assets presented in balance sheet 1,080 574
Financial instruments, amounts not offset (698) (51)
Derivative, collateral, obligation to return securities 0 (190)
Derivative, collateral, obligation to return cash (382) (326)
Derivative asset, fair value, amount offset against collateral, subject to master netting agreement 0 7
Derivative asset, not subject to master netting arrangement 127 102
Derivative asset, fair value, amount offset against collateral, not subject to master netting agreement 127 102
Derivative asset, fair value, gross asset including not subject to master netting arrangement 1,207 676
Net amount of derivative assets presented in balance sheet 1,207 676
Derivative asset, fair value, amount offset against collateral 127 109
Offsetting assets    
Offsetting Assets [Line Items]    
Gross amounts of recognized financial instruments 1,720 1,597
Gross amounts offset in balance sheet 0 0
Net amounts of financial instruments presented in balance sheet 1,720 1,597
Carrying value of financial instruments not offset in balance sheet (698) (51)
Securities collateral, not offset in balance sheet 0 (190)
Cash collateral, not offset in balance sheet (895) (1,247)
Financial instruments, amount offset against collateral 127 109
Offsetting assets | Securities lending and similar arrangements    
Offsetting Assets [Line Items]    
Gross amounts of recognized financial instruments 513 921
Gross amounts offset in balance sheet 0 0
Net amounts of financial instruments presented in balance sheet 513 921
Carrying value of financial instruments not offset in balance sheet 0 0
Securities collateral, not offset in balance sheet 0 0
Cash collateral, not offset in balance sheet (513) (921)
Financial instruments, amount offset against collateral $ 0 $ 0
v3.6.0.2
DERIVATIVE INSTRUMENTS - Offsetting of Financial Liabilities and Derivative Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Offsetting Liabilities [Line Items]    
Gross amount of recognized derivative liabilities $ (1,852) $ (78)
Gross amount of assets offset in balance sheet 0 0
Derivative liability, fair value, amount not offset against collateral (1,852) (78)
Financial instruments, amounts not offset 698 51
Derivative, collateral, right to reclaim securities 1,130 18
Derivative, collateral, right to reclaim cash 21 3
Derivative liability, fair value, amount offset against collateral, subject to master netting agreement (3) (6)
Derivative liability, not subject to master netting arrangement (146) (293)
Derivative liability, fair value, amount offset against collateral, not subject to master netting agreement (146) (293)
Derivative liability, fair value, gross liability including not subject to master netting arrangement (1,998) (371)
Net amount of derivative liabilities presented in balance sheet (1,998) (371)
Derivative liability, fair value, amount offset against collateral (149) (299)
Offsetting liabilities    
Offsetting Liabilities [Line Items]    
Gross amounts of recognized financial instruments (2,524) (1,312)
Gross amounts offset in balance sheet 0 0
Net amounts of financial instruments presented in balance sheet (2,524) (1,312)
Carrying value of financial instruments not offset in balance sheet 1,211 972
Securities collateral, not offset in balance sheet 1,130 18
Cash collateral, not offset in balance sheet 21 3
Financial instruments, amount offset against collateral (162) (319)
Offsetting liabilities | Securities lending and similar arrangements    
Offsetting Liabilities [Line Items]    
Gross amounts of recognized financial instruments (526) (941)
Gross amounts offset in balance sheet 0 0
Net amounts of financial instruments presented in balance sheet (526) (941)
Carrying value of financial instruments not offset in balance sheet 513 921
Securities collateral, not offset in balance sheet 0 0
Cash collateral, not offset in balance sheet 0 0
Financial instruments, amount offset against collateral $ (13) $ (20)
v3.6.0.2
DERIVATIVE INSTRUMENTS - Fair Value and Notional Amount of Derivatives with Counterparty Credit Risk (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items]    
Notional Amount of Derivatives $ 43,927 $ 22,127
Asset Derivatives Fair Value 1,207 676
Liability Derivatives Fair Value (1,998) (371)
AA    
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items]    
Notional Amount of Derivatives 6,844 2,187
Asset Derivatives Fair Value 247 166
Liability Derivatives Fair Value (308) (35)
A    
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items]    
Notional Amount of Derivatives 36,019 19,940
Asset Derivatives Fair Value 900 510
Liability Derivatives Fair Value (1,621) (336)
BBB    
Fair Value and Notional Amount of Derivatives with Counterparty Credit RIsk [Line Items]    
Notional Amount of Derivatives 1,064 0
Asset Derivatives Fair Value 60 0
Liability Derivatives Fair Value $ (69) $ 0
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Assets:    
Available-for-sale securities $ 76,702 $ 67,794
Asset derivatives 1,207 676
Other investments 276 176
Cash and cash equivalents 4,859 4,350
Total assets 83,044 72,996
Liabilities:    
Liability derivatives 1,998 371
Total liabilities 1,998 371
Foreign currency swaps    
Assets:    
Asset derivatives 490 563
Liabilities:    
Liability derivatives 230 314
Foreign currency forwards    
Assets:    
Asset derivatives 672 107
Liabilities:    
Liability derivatives 1,717 49
Foreign currency options    
Assets:    
Asset derivatives 43 5
Liabilities:    
Liability derivatives 51 8
Credit default swaps    
Assets:    
Asset derivatives 2 1
Fixed maturities    
Assets:    
Available-for-sale securities 73,760 65,349
Fixed maturities | Government and agencies    
Assets:    
Available-for-sale securities 26,214 19,276
Fixed maturities | Municipalities    
Assets:    
Available-for-sale securities 1,295 1,208
Fixed maturities | Mortgage- and asset-backed securities    
Assets:    
Available-for-sale securities 1,337 582
Fixed maturities | Public utilities    
Assets:    
Available-for-sale securities 7,683 7,479
Fixed maturities | Sovereign and supranational    
Assets:    
Available-for-sale securities 1,469 1,407
Fixed maturities | Banks/financial institutions    
Assets:    
Available-for-sale securities 6,063 6,019
Fixed maturities | Other corporate    
Assets:    
Available-for-sale securities 29,699 29,378
Perpetual securities    
Assets:    
Available-for-sale securities 1,633 1,947
Perpetual securities | Banks/financial institutions    
Assets:    
Available-for-sale securities 1,420 1,742
Perpetual securities | Other corporate    
Assets:    
Available-for-sale securities 213 205
Equity securities    
Assets:    
Available-for-sale securities 1,309 498
Level 1    
Assets:    
Available-for-sale securities 26,687 19,158
Asset derivatives 0 0
Other investments 276 176
Cash and cash equivalents 4,859 4,350
Total assets 31,822 23,684
Liabilities:    
Total liabilities 0 0
Level 1 | Foreign currency swaps    
Assets:    
Asset derivatives 0 0
Liabilities:    
Liability derivatives 0 0
Level 1 | Foreign currency forwards    
Assets:    
Asset derivatives 0 0
Liabilities:    
Liability derivatives 0 0
Level 1 | Foreign currency options    
Assets:    
Asset derivatives 0 0
Liabilities:    
Liability derivatives 0 0
Level 1 | Credit default swaps    
Assets:    
Asset derivatives 0 0
Level 1 | Fixed maturities    
Assets:    
Available-for-sale securities 25,387 18,669
Level 1 | Fixed maturities | Government and agencies    
Assets:    
Available-for-sale securities 25,387 18,669
Level 1 | Fixed maturities | Municipalities    
Assets:    
Available-for-sale securities 0 0
Level 1 | Fixed maturities | Mortgage- and asset-backed securities    
Assets:    
Available-for-sale securities 0 0
Level 1 | Fixed maturities | Public utilities    
Assets:    
Available-for-sale securities 0 0
Level 1 | Fixed maturities | Sovereign and supranational    
Assets:    
Available-for-sale securities 0 0
Level 1 | Fixed maturities | Banks/financial institutions    
Assets:    
Available-for-sale securities 0 0
Level 1 | Fixed maturities | Other corporate    
Assets:    
Available-for-sale securities 0 0
Level 1 | Perpetual securities    
Assets:    
Available-for-sale securities 0 0
Level 1 | Perpetual securities | Banks/financial institutions    
Assets:    
Available-for-sale securities 0 0
Level 1 | Perpetual securities | Other corporate    
Assets:    
Available-for-sale securities 0 0
Level 1 | Equity securities    
Assets:    
Available-for-sale securities 1,300 489
Level 2    
Assets:    
Available-for-sale securities 49,773 48,387
Asset derivatives 1,080 574
Other investments 0 0
Cash and cash equivalents 0 0
Total assets 50,853 48,961
Liabilities:    
Total liabilities 1,852 78
Level 2 | Foreign currency swaps    
Assets:    
Asset derivatives 365 462
Liabilities:    
Liability derivatives 84 21
Level 2 | Foreign currency forwards    
Assets:    
Asset derivatives 672 107
Liabilities:    
Liability derivatives 1,717 49
Level 2 | Foreign currency options    
Assets:    
Asset derivatives 43 5
Liabilities:    
Liability derivatives 51 8
Level 2 | Credit default swaps    
Assets:    
Asset derivatives 0 0
Level 2 | Fixed maturities    
Assets:    
Available-for-sale securities 48,134 46,434
Level 2 | Fixed maturities | Government and agencies    
Assets:    
Available-for-sale securities 827 607
Level 2 | Fixed maturities | Municipalities    
Assets:    
Available-for-sale securities 1,295 1,208
Level 2 | Fixed maturities | Mortgage- and asset-backed securities    
Assets:    
Available-for-sale securities 1,139 362
Level 2 | Fixed maturities | Public utilities    
Assets:    
Available-for-sale securities 7,667 7,479
Level 2 | Fixed maturities | Sovereign and supranational    
Assets:    
Available-for-sale securities 1,469 1,407
Level 2 | Fixed maturities | Banks/financial institutions    
Assets:    
Available-for-sale securities 6,038 5,993
Level 2 | Fixed maturities | Other corporate    
Assets:    
Available-for-sale securities 29,699 29,378
Level 2 | Perpetual securities    
Assets:    
Available-for-sale securities 1,633 1,947
Level 2 | Perpetual securities | Banks/financial institutions    
Assets:    
Available-for-sale securities 1,420 1,742
Level 2 | Perpetual securities | Other corporate    
Assets:    
Available-for-sale securities 213 205
Level 2 | Equity securities    
Assets:    
Available-for-sale securities 6 6
Level 3    
Assets:    
Available-for-sale securities 242 249
Asset derivatives 127 102
Other investments 0 0
Cash and cash equivalents 0 0
Total assets 369 351
Liabilities:    
Total liabilities 146 293
Level 3 | Foreign currency swaps    
Assets:    
Asset derivatives 125 101
Liabilities:    
Liability derivatives 146 293
Level 3 | Foreign currency forwards    
Assets:    
Asset derivatives 0 0
Liabilities:    
Liability derivatives 0 0
Level 3 | Foreign currency options    
Assets:    
Asset derivatives 0 0
Liabilities:    
Liability derivatives 0 0
Level 3 | Credit default swaps    
Assets:    
Asset derivatives 2 1
Level 3 | Fixed maturities    
Assets:    
Available-for-sale securities 239 246
Level 3 | Fixed maturities | Government and agencies    
Assets:    
Available-for-sale securities 0 0
Level 3 | Fixed maturities | Municipalities    
Assets:    
Available-for-sale securities 0 0
Level 3 | Fixed maturities | Mortgage- and asset-backed securities    
Assets:    
Available-for-sale securities 198 220
Level 3 | Fixed maturities | Public utilities    
Assets:    
Available-for-sale securities 16 0
Level 3 | Fixed maturities | Sovereign and supranational    
Assets:    
Available-for-sale securities 0 0
Level 3 | Fixed maturities | Banks/financial institutions    
Assets:    
Available-for-sale securities 25 26
Level 3 | Fixed maturities | Other corporate    
Assets:    
Available-for-sale securities 0 0
Level 3 | Perpetual securities    
Assets:    
Available-for-sale securities 0 0
Level 3 | Perpetual securities | Banks/financial institutions    
Assets:    
Available-for-sale securities 0 0
Level 3 | Perpetual securities | Other corporate    
Assets:    
Available-for-sale securities 0 0
Level 3 | Equity securities    
Assets:    
Available-for-sale securities $ 3 $ 3
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Assets:    
Securities held to maturity, fixed maturities, amortized cost $ 33,350 $ 33,459
Securities held to maturity, fixed maturities, fair value 40,021 37,520
Other investments, carried at amortized cost 1,174 118
Other investments, carried at amortized cost, fair value 1,142 118
Total financial instruments, assets, not carried at fair value 34,524 33,577
Assets, fair value disclosure, financial instruments, carried at cost 41,163 37,638
Liabilities:    
Other policyholders' funds 6,659 6,285
Other policyholders' funds fair value disclosure 6,540 6,160
Notes payable 5,339 4,951
Notes payable, fair value disclosure 5,530 5,256
Total financial instrument liabilities not carried at fair value 11,998 11,236
Liabilities fair value disclosure financial instruments carried at cost 12,070 11,416
Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 40,021 37,520
Government and agencies | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 20,702 20,004
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Municipalities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 350 341
Securities held to maturity, fixed maturities, fair value 457 415
Mortgage- and asset-backed securities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 30 36
Securities held to maturity, fixed maturities, fair value 32 38
Public utilities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 3,201 3,092
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Sovereign and supranational | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 2,602 2,555
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Banks/financial institutions | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 3,731 4,431
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Other corporate | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, amortized cost 2,734 3,000
Securities held to maturity, fixed maturities, fair value 3,179 3,216
Level 1    
Assets:    
Other investments, carried at amortized cost, fair value 0 0
Assets, fair value disclosure, financial instruments, carried at cost 26,040 23,391
Liabilities:    
Other policyholders' funds fair value disclosure 0 0
Notes payable, fair value disclosure 0 0
Liabilities fair value disclosure financial instruments carried at cost 0 0
Level 1 | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Level 1 | Government and agencies | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Level 1 | Municipalities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 1 | Mortgage- and asset-backed securities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 1 | Public utilities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 1 | Sovereign and supranational | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 1 | Banks/financial institutions | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 1 | Other corporate | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 2    
Assets:    
Other investments, carried at amortized cost, fair value 0 0
Assets, fair value disclosure, financial instruments, carried at cost 13,959 14,103
Liabilities:    
Other policyholders' funds fair value disclosure 0 0
Notes payable, fair value disclosure 0 0
Liabilities fair value disclosure financial instruments carried at cost 0 0
Level 2 | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 13,959 14,103
Level 2 | Government and agencies | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 2 | Municipalities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 457 415
Level 2 | Mortgage- and asset-backed securities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 10 12
Level 2 | Public utilities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Level 2 | Sovereign and supranational | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Level 2 | Banks/financial institutions | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Level 2 | Other corporate | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 3,179 3,216
Level 3    
Assets:    
Other investments, carried at amortized cost, fair value 1,142 118
Assets, fair value disclosure, financial instruments, carried at cost 1,164 144
Liabilities:    
Other policyholders' funds fair value disclosure 6,540 6,160
Notes payable, fair value disclosure 5,530 5,256
Liabilities fair value disclosure financial instruments carried at cost 12,070 11,416
Level 3 | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 22 26
Level 3 | Government and agencies | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 3 | Municipalities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 3 | Mortgage- and asset-backed securities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 22 26
Level 3 | Public utilities | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 3 | Sovereign and supranational | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 3 | Banks/financial institutions | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value 0 0
Level 3 | Other corporate | Fixed maturities    
Assets:    
Securities held to maturity, fixed maturities, fair value $ 0 $ 0
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels of Assets by Pricing Source, Available-for-sale Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities $ 76,702 $ 67,794
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 26,687 19,158
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 49,773 48,387
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 242 249
Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 73,760 65,349
Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25,387 18,669
Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 48,134 46,434
Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 239 246
Perpetual securities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,633 1,947
Perpetual securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Perpetual securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,633 1,947
Perpetual securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Equity securities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,309 498
Equity securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,300 489
Equity securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6 6
Equity securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 3 3
Equity securities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,306 495
Equity securities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,300 489
Equity securities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6 6
Equity securities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Equity securities | Net asset value valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 3 3
Equity securities | Net asset value valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Equity securities | Net asset value valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Equity securities | Net asset value valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 3 3
Government and agencies | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 26,214 19,276
Government and agencies | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25,387 18,669
Government and agencies | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 827 607
Government and agencies | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 26,214 19,276
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25,387 18,669
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 827 607
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Municipalities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,295 1,208
Municipalities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Municipalities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,295 1,208
Municipalities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Municipalities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,295 1,208
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,295 1,208
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,337 582
Mortgage- and asset-backed securities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,139 362
Mortgage- and asset-backed securities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 198 220
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,139 362
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,139 362
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 198 220
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 198 220
Public utilities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 7,683 7,479
Public utilities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Public utilities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 7,667 7,479
Public utilities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 16 0
Public utilities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 7,667 7,479
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 7,667 7,479
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Public utilities | Fixed maturities | Discounted cash flow valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 16  
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0  
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0  
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 16  
Sovereign and supranational | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,469 1,407
Sovereign and supranational | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Sovereign and supranational | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,469 1,407
Sovereign and supranational | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,469 1,407
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,469 1,407
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6,063 6,019
Banks/financial institutions | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6,038 5,993
Banks/financial institutions | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25 26
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6,038 5,993
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 6,038 5,993
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25 26
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 25 26
Banks/financial institutions | Perpetual securities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,420 1,742
Banks/financial institutions | Perpetual securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Perpetual securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,420 1,742
Banks/financial institutions | Perpetual securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,420 1,742
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 1,420 1,742
Banks/financial institutions | Perpetual securities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 29,699 29,378
Other corporate | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 29,699 29,378
Other corporate | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 29,699 29,378
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 29,699 29,378
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Perpetual securities    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 213 205
Other corporate | Perpetual securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Perpetual securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 213 205
Other corporate | Perpetual securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Perpetual securities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 213 205
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 0 0
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities 213 205
Other corporate | Perpetual securities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]    
Available-for-sale securities $ 0 $ 0
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Hierarchy Levels by Pricing Source, Held-to-Maturity Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value $ 40,021 $ 37,520
Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 40,021 37,520
Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 13,959 14,103
Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 22 26
Government and agencies | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Government and agencies | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Government and agencies | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Government and agencies | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 26,040 23,391
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Government and agencies | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Municipalities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 457 415
Municipalities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Municipalities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 457 415
Municipalities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Municipalities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 457 415
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 457 415
Municipalities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 32 38
Mortgage- and asset-backed securities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 10 12
Mortgage- and asset-backed securities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 22 26
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 10 12
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 10 12
Mortgage- and asset-backed securities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 22 26
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 22 26
Public utilities | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Public utilities | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Public utilities | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Public utilities | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Public utilities | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,536 3,203
Public utilities | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Sovereign and supranational | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Sovereign and supranational | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Sovereign and supranational | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Sovereign and supranational | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 2,877 2,711
Sovereign and supranational | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Banks/financial institutions | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Banks/financial institutions | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Banks/financial institutions | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Banks/financial institutions | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,900 4,546
Banks/financial institutions | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Other corporate | Fixed maturities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,179 3,216
Other corporate | Fixed maturities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Other corporate | Fixed maturities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,179 3,216
Other corporate | Fixed maturities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Other corporate | Fixed maturities | Third party pricing vendor valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,179 3,189
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 0 0
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value 3,179 3,189
Other corporate | Fixed maturities | Third party pricing vendor valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value $ 0 0
Other corporate | Fixed maturities | Consensus pricing valuation technique    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value   27
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value   0
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value   27
Other corporate | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Securities held to maturity, fixed maturities, fair value   $ 0
v3.6.0.2
FAIR VALUE MEASUREMENTS - Changes in Available-For-Sale Investments and Derivatives Classified as Level 3 (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period $ 58 $ 189
Realized gains or losses included in earnings 195 (14)
Unrealized gains or losses included in other comprehensive income (loss) 15 (4)
Purchases 16 0
Issuances 0 0
Sales 0 (147)
Settlements (61) 34
Transfers into Level 3 0 0
Transfers out of Level 3 0 0
Balance, end of period 223 58
Change in unrealized gain (losses) still held 195 (14)
Foreign currency swaps    
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]    
Balance, beginning of period [1] (192) (212)
Realized gains or losses included in earnings [1] 194 (15)
Unrealized gains or losses included in other comprehensive income (loss) [1] (22) (1)
Purchases [1] 0 0
Issuances [1] 0 0
Sales [1] 0 0
Settlements [1] (1) 36
Transfers into Level 3 [1] 0 0
Transfers out of Level 3 [1] 0 0
Balance, end of period [1] (21) (192)
Change in unrealized gain (losses) still held [1] 194 (15)
Credit default swaps    
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]    
Balance, beginning of period [1] 1 0
Realized gains or losses included in earnings [1] 1 1
Unrealized gains or losses included in other comprehensive income (loss) [1] 0 0
Purchases [1] 0 0
Issuances [1] 0 0
Sales [1] 0 0
Settlements [1] 0 0
Transfers into Level 3 [1] 0 0
Transfers out of Level 3 [1] 0 0
Balance, end of period [1] 2 1
Change in unrealized gain (losses) still held [1] 1 1
Fixed maturities | Mortgage- and asset-backed securities    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period 220 223
Realized gains or losses included in earnings 0 0
Unrealized gains or losses included in other comprehensive income (loss) 38 (1)
Purchases 0 0
Issuances 0 0
Sales 0 0
Settlements (60) (2)
Transfers into Level 3 0 0
Transfers out of Level 3 0 0
Balance, end of period 198 220
Change in unrealized gain (losses) still held 0 0
Fixed maturities | Public utilities    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period 0  
Realized gains or losses included in earnings 0  
Unrealized gains or losses included in other comprehensive income (loss) 0  
Purchases 16  
Issuances 0  
Sales 0  
Settlements 0  
Transfers into Level 3 0  
Transfers out of Level 3 0  
Balance, end of period 16 0
Change in unrealized gain (losses) still held 0  
Fixed maturities | Banks/financial institutions    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period 26 26
Realized gains or losses included in earnings 0 0
Unrealized gains or losses included in other comprehensive income (loss) (1) 0
Purchases 0 0
Issuances 0 0
Sales 0 0
Settlements 0 0
Transfers into Level 3 0 0
Transfers out of Level 3 0 0
Balance, end of period 25 26
Change in unrealized gain (losses) still held 0 0
Perpetual securities | Banks/financial institutions    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period 0 149
Realized gains or losses included in earnings   0
Unrealized gains or losses included in other comprehensive income (loss)   (2)
Purchases   0
Issuances   0
Sales   (147)
Settlements   0
Transfers into Level 3   0
Transfers out of Level 3   0
Balance, end of period   0
Change in unrealized gain (losses) still held   0
Equity securities    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance, beginning of period 3 3
Realized gains or losses included in earnings 0 0
Unrealized gains or losses included in other comprehensive income (loss) 0 0
Purchases 0 0
Issuances 0 0
Sales 0 0
Settlements 0 0
Transfers into Level 3 0 0
Transfers out of Level 3 0 0
Balance, end of period 3 3
Change in unrealized gain (losses) still held $ 0 $ 0
[1] Derivative assets and liabilities are presented net
v3.6.0.2
FAIR VALUE MEASUREMENTS - Additional Information (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Fair Value Disclosures [Abstract]    
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount $ 0 $ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount $ 0 $ 0
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Inputs Assets Quantitative Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 76,702 $ 67,794
Asset derivatives 1,207 676
Assets, fair value $ 83,044 $ 72,996
Length of Volatility of Japanese Yen to US Dollar Exchange Rate 10 years 10 years
Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 242 $ 249
Asset derivatives 127 102
Assets, fair value 369 351
Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 73,760 65,349
Fixed maturities | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 239 246
Equity securities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 1,309 498
Equity securities | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 3 3
Equity securities | Net asset value valuation technique    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 3 3
Equity securities | Net asset value valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 3 $ 3
Equity securities | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Offered Quotes $ 1 $ 1
Equity securities | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Offered Quotes 701 677
Equity securities | Assets | Weighted Average | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Offered Quotes $ 8 $ 7
Mortgage- and asset-backed securities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 1,337 $ 582
Mortgage- and asset-backed securities | Fixed maturities | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 198 220
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 198 220
Mortgage- and asset-backed securities | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 198 220
Public utilities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 7,683 7,479
Public utilities | Fixed maturities | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 16 0
Public utilities | Fixed maturities | Discounted cash flow valuation technique    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 16  
Public utilities | Fixed maturities | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 16  
Banks/financial institutions | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 6,063 6,019
Banks/financial institutions | Fixed maturities | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 25 26
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 25 26
Banks/financial institutions | Fixed maturities | Consensus pricing valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 25 26
Foreign currency swaps    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives 490 563
Foreign currency swaps | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives 125 101
Credit default swaps    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives 2 1
Credit default swaps | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives 2 1
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives $ 16 $ 7
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Foreign Exchange Rates [1] 21.47% 20.05%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.17% 0.32%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 1.72% 1.47%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives $ 29  
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.16%  
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.88%  
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives $ 80 $ 94
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Foreign Exchange Rates [1] 21.47% 20.05%
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Asset derivatives $ 2 $ 1
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.54% 1.23%
Fair Value Inputs, Recovery Rate 36.69% 36.87%
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Base Correlation [2] 52.18% 53.26%
Fair value, unobservable input, base correlation, CDS spreads, recovery rate | Credit default swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Base Correlation [2] 56.07% 58.40%
Yen-denominated | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 37,149 $ 28,511
Yen-denominated | Equity securities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 705 487
Yen-denominated | Mortgage- and asset-backed securities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 1,121 355
Yen-denominated | Public utilities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 1,848 1,600
Yen-denominated | Banks/financial institutions | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 3,002 $ 2,541
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.22% 0.42%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.80% 1.22%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.22%  
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.80%  
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.22% 0.42%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 0.80% 1.22%
Dollar-denominated | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 36,611 $ 36,838
Dollar-denominated | Equity securities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 604 11
Dollar-denominated | Mortgage- and asset-backed securities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 216 227
Dollar-denominated | Public utilities | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities 5,835 5,879
Dollar-denominated | Banks/financial institutions | Fixed maturities    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Available-for-sale securities $ 3,061 $ 3,478
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.34% 2.20%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.59% 2.62%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.34%  
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.59%  
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Lower Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.34% 2.20%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Assets | Upper Limit | Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [4] 2.59% 2.62%
[1] Based on 10 year volatility of JPY/USD exchange rate
[2] Range of base correlation for our bespoke tranche for attachment and detachment points corresponding to market indices
[3] Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
[4] Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
v3.6.0.2
FAIR VALUE MEASUREMENTS - Fair Value Inputs Liabilities Quantitative Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives $ 1,998 $ 371
Liabilities, fair value disclosure $ 1,998 $ 371
Length of Volatility of Japanese Yen to US Dollar Exchange Rate 10 years 10 years
Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liabilities, fair value disclosure $ 146 $ 293
Foreign currency swaps    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives 230 314
Foreign currency swaps | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives 146 293
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives $ 113 $ 158
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Foreign Exchange Rates [1] 21.47% 20.05%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.17% 0.32%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 1.72% 1.47%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives $ 23 $ 120
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 0.24% 0.35%
Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Entity Credit Risk 2.16% 2.13%
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Discounted cash flow valuation technique | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Liability derivatives $ 10 $ 15
Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Foreign Exchange Rates [1] 21.47% 20.05%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.22% 0.42%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.80% 1.22%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.22% 0.42%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.80% 1.22%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.22% 0.42%
Yen-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [2] 0.80% 1.22%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.34% 2.20%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), CDS Spreads and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.59% 2.62%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.34% 2.20%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), Interest Rates (JPY), and CDS Spreads | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.59% 2.62%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Lower Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.34% 2.20%
Dollar-denominated | Fair Value, Unobservable Input, Interest Rates (USD), interest rates (JPY), and Foreign Exchange Rates | Foreign currency swaps | Liability | Upper Limit | Level 3    
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]    
Fair Value Inputs, Discount Rate [3] 2.59% 2.62%
[1] Based on 10 year volatility of JPY/USD exchange rate
[2] Inputs derived from Japan long-term rates to accommodate long maturity nature of our swaps
[3] Inputs derived from U.S. long-term rates to accommodate long maturity nature of our swaps
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Additional Information (Detail) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Deferred Policy Acquisition Costs Disclosures [Abstract]      
Consolidated policy acquisition costs deferred $ 1.4 $ 1.3 $ 1.3
Commissions deferred as a percentage of total acquisition costs 74.00% 74.00% 77.00%
Personnel, compensation and benefit expenses as a percentage of insurance expenses 53.00% 52.00% 52.00%
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Rollforward of Deferred Policy Acquisition Costs by Segment (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Deferred policy acquisition costs:      
Balance, beginning of year $ 8,511    
Capitalization 1,400 $ 1,300 $ 1,300
Amortization (1,141) (1,066) (1,108)
Balance, end of year 8,993 8,511  
Aflac Japan      
Deferred policy acquisition costs:      
Balance, beginning of year 5,370 5,211  
Capitalization 864 738  
Amortization (644) (578) (649)
Foreign currency translation and other 175 (1)  
Balance, end of year 5,765 5,370 5,211
Aflac U.S.      
Deferred policy acquisition costs:      
Balance, beginning of year 3,141 3,062  
Capitalization 583 578  
Amortization (497) (488) (459)
Foreign currency translation and other 1 (11)  
Balance, end of year $ 3,228 $ 3,141 $ 3,062
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Advertising Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Advertising Costs [Line Items]      
Advertising expense $ 224 $ 211 $ 229
Aflac Japan      
Advertising Costs [Line Items]      
Advertising expense 100 82 103
Aflac U.S.      
Advertising Costs [Line Items]      
Advertising expense $ 124 $ 129 $ 126
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Depreciation and Other Amortization Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Deferred Policy Acquisition Costs Disclosures [Abstract]      
Depreciation expense $ 48 $ 44 $ 47
Other amortization expense 6 6 8
Total depreciation and other amortization expense $ 54 $ 50 $ 55
v3.6.0.2
DEFERRED POLICY ACQUISITION COSTS AND INSURANCE EXPENSES - Lease and Rental Expense (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Lease and Rental Expense [Line Items]      
Lease and rental expense $ 75 $ 65 $ 68
Aflac Japan      
Lease and Rental Expense [Line Items]      
Lease and rental expense 53 46 52
Aflac U.S.      
Lease and Rental Expense [Line Items]      
Lease and rental expense 21 18 15
All other      
Lease and Rental Expense [Line Items]      
Lease and rental expense $ 1 $ 1 $ 1
v3.6.0.2
POLICY LIABILITIES - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Percentage of future policy benefits out of policy liabilities 81.00%    
Percentage of unpaid policy claims out of policy liabilities 4.00%    
Percentage of unearned premiums out of policy liabilities 8.00%    
Percentage of other poliyholders' funds out of policy liabilities 7.00%    
Percentage of advanced premiums to unearned premiums 76.00% 77.00%  
Percentage of annuities to other policyholders' fund 98.00% 98.00%  
Aflac Japan      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits 3.50% 3.60% 3.80%
Aflac U.S.      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Weighted-average interest rates reflected in the consolidated statements of earnings for future policy benefits 5.50% 5.60% 5.70%
v3.6.0.2
POLICY LIABILITIES - Liability for Future Policy Benefits (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 76,106 $ 69,687  
Aflac Japan      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.50% 3.60% 3.80%
Aflac U.S.      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 5.50% 5.60% 5.70%
Intercompany eliminations | 2015      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.00%    
Interest Rates In 20 Years 2.00%    
Liability amounts [1] $ (630) $ (646)  
Health insurance | Aflac Japan | 1992 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 8,912 7,633  
Health insurance | Aflac Japan | 1992 - 2016 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 1.25%    
Interest Rates In 20 Years 1.25%    
Health insurance | Aflac Japan | 1992 - 2016 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.50%    
Interest Rates In 20 Years 2.50%    
Health insurance | Aflac Japan | 1974 - 2013      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 1,118 1,078  
Health insurance | Aflac Japan | 1974 - 2013 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.70%    
Interest Rates In 20 Years 2.25%    
Health insurance | Aflac Japan | 1974 - 2013 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.75%    
Interest Rates In 20 Years 2.75%    
Health insurance | Aflac Japan | 1998 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.00%    
Interest Rates In 20 Years 3.00%    
Liability amounts $ 11,687 11,008  
Health insurance | Aflac Japan | 1997 - 1999      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.50%    
Interest Rates In 20 Years 3.50%    
Liability amounts $ 2,485 2,435  
Health insurance | Aflac Japan | 1994 - 1996      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 3,069 2,998  
Health insurance | Aflac Japan | 1994 - 1996 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 4.00%    
Interest Rates In 20 Years 4.00%    
Health insurance | Aflac Japan | 1994 - 1996 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 4.50%    
Interest Rates In 20 Years 4.50%    
Health insurance | Aflac Japan | 1987 - 1994      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 5.50%    
Interest Rates In 20 Years 5.50%    
Liability amounts $ 14,372 14,161  
Health insurance | Aflac Japan | 1985 - 1991      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 1,871 1,868  
Health insurance | Aflac Japan | 1985 - 1991 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 5.25%    
Interest Rates In 20 Years 5.25%    
Health insurance | Aflac Japan | 1985 - 1991 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 6.75%    
Interest Rates In 20 Years 5.50%    
Health insurance | Aflac Japan | 1978 - 1984      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 6.50%    
Interest Rates In 20 Years 5.50%    
Liability amounts $ 2,134 2,163  
Health insurance | Aflac U.S. | 2013 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 75 57  
Health insurance | Aflac U.S. | 2013 - 2016 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.00%    
Interest Rates In 20 Years 3.00%    
Health insurance | Aflac U.S. | 2013 - 2016 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.50%    
Interest Rates In 20 Years 3.50%    
Health insurance | Aflac U.S. | 2012 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.75%    
Interest Rates In 20 Years 3.75%    
Liability amounts $ 1,062 794  
Health insurance | Aflac U.S. | 2011      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 4.75%    
Interest Rates In 20 Years 4.75%    
Liability amounts $ 319 300  
Health insurance | Aflac U.S. | 2005 - 2010      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 5.50%    
Interest Rates In 20 Years 5.50%    
Liability amounts $ 3,004 2,986  
Health insurance | Aflac U.S. | 1988 - 2004      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 8.00%    
Interest Rates In 20 Years 6.00%    
Liability amounts $ 669 687  
Health insurance | Aflac U.S. | 1986 - 2004      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 6.00%    
Interest Rates In 20 Years 6.00%    
Liability amounts $ 1,265 1,276  
Health insurance | Aflac U.S. | 1981 - 1986      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 166 174  
Health insurance | Aflac U.S. | 1981 - 1986 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 6.50%    
Interest Rates In 20 Years 5.50%    
Health insurance | Aflac U.S. | 1981 - 1986 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 7.00%    
Interest Rates In 20 Years 6.50%    
Health insurance | Aflac U.S. | 1998 - 2004      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 7.00%    
Interest Rates In 20 Years 7.00%    
Liability amounts $ 1,295 1,279  
Health insurance | Aflac U.S. | Other years      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts 19 21  
Life insurance | Aflac Japan | 2001 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 7,255 5,441  
Life insurance | Aflac Japan | 2001 - 2016 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 1.50%    
Interest Rates In 20 Years 1.50%    
Life insurance | Aflac Japan | 2001 - 2016 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 1.85%    
Interest Rates In 20 Years 1.85%    
Life insurance | Aflac Japan | 2011 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.00%    
Interest Rates In 20 Years 2.00%    
Liability amounts $ 4,151 3,226  
Life insurance | Aflac Japan | 2009 - 2011      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.25%    
Interest Rates In 20 Years 2.25%    
Liability amounts $ 2,861 2,332  
Life insurance | Aflac Japan | 1992 - 2006      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.19%    
Interest Rates In 20 Years 1.55%    
Liability amounts $ 5 5  
Life insurance | Aflac Japan | 2005 - 2011      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.50%    
Interest Rates In 20 Years 2.50%    
Liability amounts $ 1,488 1,330  
Life insurance | Aflac Japan | 1985 - 2006      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.70%    
Interest Rates In 20 Years 2.25%    
Liability amounts $ 2,007 1,962  
Life insurance | Aflac Japan | 2007 - 2011      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 2.75%    
Interest Rates In 20 Years 2.75%    
Liability amounts $ 1,220 1,105  
Life insurance | Aflac Japan | 1999 - 2011      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.00%    
Interest Rates In 20 Years 3.00%    
Liability amounts $ 2,102 1,988  
Life insurance | Aflac Japan | 1996 - 2009      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.50%    
Interest Rates In 20 Years 3.50%    
Liability amounts $ 657 635  
Life insurance | Aflac Japan | 1994 - 1996      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 897 877  
Life insurance | Aflac Japan | 1994 - 1996 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 4.00%    
Interest Rates In 20 Years 4.00%    
Life insurance | Aflac Japan | 1994 - 1996 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 4.50%    
Interest Rates In 20 Years 4.50%    
Life insurance | Aflac U.S. | 1956 - 2016      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Liability amounts $ 571 $ 514  
Life insurance | Aflac U.S. | 1956 - 2016 | Lower Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 3.50%    
Interest Rates In 20 Years 3.50%    
Life insurance | Aflac U.S. | 1956 - 2016 | Upper Limit      
Liability for Future Policy Benefit, by Product Segment [Line Items]      
Interest Rates Year of Issue 6.00%    
Interest Rates In 20 Years 6.00%    
[1] Elimination entry necessary due to recapture of a portion of policy liabilities ceded externally, as a result of the reinsurance retrocession transaction as described in Note 8 of the Notes to the Consolidated Financial Statements
v3.6.0.2
POLICY LIABILITIES - Changes in Liability for Unpaid Policy Claims (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Liability for Unpaid Claims and Claims Expenses      
Unpaid supplemental health claims, beginning of year $ 3,802 $ 3,630  
Net balance, beginning of year 3,802    
Less claims paid during the year on claims incurred during:      
Net balance, end of year 4,045 3,802  
Total liability for unpaid policy claims 4,045 3,802 $ 3,630
Health insurance      
Liability for Unpaid Claims and Claims Expenses      
Unpaid supplemental health claims, beginning of year 3,548 3,412 3,537
Less reinsurance recoverables 26 7 9
Net balance, beginning of year 3,522 3,405 3,528
Add claims incurred during the year related to:      
Current year 7,037 6,416 6,866
Prior years (465) (353) (301)
Total incurred 6,572 6,063 6,565
Less claims paid during the year on claims incurred during:      
Current year 4,613 4,227 4,532
Prior years 1,865 1,718 1,873
Total paid 6,478 5,945 6,405
Effect of foreign exchange rate changes on unpaid claims 64 (1) (283)
Net balance, end of year 3,680 3,522 3,405
Add reinsurance recoverables 27 26 7
Total liability for unpaid policy claims 3,707 3,548 3,412
Life insurance      
Liability for Unpaid Claims and Claims Expenses      
Unpaid supplemental health claims, beginning of year 254 218  
Less claims paid during the year on claims incurred during:      
Total liability for unpaid policy claims $ 338 $ 254 $ 218
v3.6.0.2
REINSURANCE Additional Information (Detail)
$ in Millions, ¥ in Billions
 12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Dec. 31, 2015
USD ($)
Effects of Reinsurance [Line Items]      
Percent change in spot yen/dollar exchange rate 4.00%    
Percent change in ceded reserves 3.00%    
Aflac Japan      
Effects of Reinsurance [Line Items]      
Committed reinsurance facility | ¥   ¥ 110  
Aflac Japan | Closed Block- Tranche Three      
Effects of Reinsurance [Line Items]      
Coinsurance reinsurance ceded percentage 30.00%    
Reinsurance assumed percentage 27.00%    
Aflac Japan | Closed Medical Block - Tranche Two      
Effects of Reinsurance [Line Items]      
Coinsurance reinsurance ceded percentage 16.70%    
Aflac Japan | Closed Medical Block - Tranche One      
Effects of Reinsurance [Line Items]      
Coinsurance reinsurance ceded percentage 33.30%    
Aflac Japan | Closed block      
Effects of Reinsurance [Line Items]      
Reinsurance assumed percentage 8.35%    
Reinsurance deferred profit liability $ 870    
Reinsurance recoverables 860   $ 805
Letter of credit | Closed Block- Tranche Three      
Effects of Reinsurance [Line Items]      
Collateral posted for reinsurance $ 90    
v3.6.0.2
REINSURANCE Effect of Reinsurance on Premiums and Benefits and Claims (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Effects of Reinsurance [Line Items]                      
Direct premiums earned                 $ 19,592 $ 17,904 $ 19,412
Ceded premiums                 (608) (520) (350)
Assumed premiums earned                 241 186 10
Net premium income $ 4,778 $ 5,022 $ 4,823 $ 4,602 $ 4,394 $ 4,380 $ 4,364 $ 4,432 19,225 17,570 19,072
Direct benefits and claims                 13,240 12,041  
Benefits and claims, net                 12,919 11,746 12,937
All other                      
Effects of Reinsurance [Line Items]                      
Ceded premiums                 (48) (39)  
Assumed premiums earned                 7 8  
Ceded benefits and claims                 (38) (30)  
Assumed benefits and claims from other companies                 4 5  
Aflac Japan                      
Effects of Reinsurance [Line Items]                      
Net premium income                 13,537 12,046 13,861
Benefits and claims, net                 9,828 8,705 $ 10,084
Aflac Japan | Closed block                      
Effects of Reinsurance [Line Items]                      
Ceded premiums                 (560) (481)  
Assumed premiums earned                 234 178  
Ceded benefits and claims                 (509) (437)  
Assumed benefits and claims from other companies                 222 167  
Intercompany eliminations                      
Effects of Reinsurance [Line Items]                      
Ceded benefits and claims                 58 46  
Assumed benefits and claims from other companies                 $ (58) $ (46)  
v3.6.0.2
NOTES PAYABLE - Additional Information (Detail)
¥ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2016
USD ($)
Sep. 30, 2016
JPY (¥)
Jul. 31, 2016
JPY (¥)
Mar. 31, 2015
USD ($)
series
Nov. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Oct. 31, 2012
USD ($)
Sep. 30, 2012
USD ($)
Jul. 31, 2012
USD ($)
Feb. 29, 2012
USD ($)
series
Aug. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Sep. 30, 2016
USD ($)
series
Sep. 30, 2016
JPY (¥)
series
Dec. 31, 2015
USD ($)
Dec. 31, 2015
JPY (¥)
Mar. 31, 2015
JPY (¥)
series
Nov. 30, 2014
JPY (¥)
Jun. 30, 2013
JPY (¥)
Oct. 31, 2012
JPY (¥)
Sep. 30, 2012
JPY (¥)
Feb. 29, 2012
JPY (¥)
series
Debt Instrument [Line Items]                                                  
Number of series of senior unsecured term loan facilities | series                               2 2                
Number of series of senior notes issued through a U.S. public debt offering (in series) | series       2           2           2 2     2         2
2.875% senior notes due October 2026                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 2.875%                       2.875% 2.875% 2.875% 2.875% 2.875%                
Debt instrument, term   10 years                                              
Debt instrument, principal amount                               $ 300,000,000                  
4.00% senior notes due October 2046                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 4.00%                       4.00% 4.00% 4.00% 4.00% 4.00%                
Debt instrument, term   30 years                                              
Debt instrument, principal amount                               $ 400,000,000                  
Yen-denominated Loans                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, principal amount | ¥                                 ¥ 30,000                
Yen-denominated loan variable interest rate due September 2021                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 0.31%                       0.31% 0.31% 0.31%                    
Debt instrument, principal amount | ¥                             ¥ 5,000   5,000                
Debt instrument, interest rate terms   bears an interest rate per annum equal to the Tokyo interbank market rate (TIBOR), or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a five-year maturity. The applicable margin ranges between .20% and .60%, depending on the Parent Company's debt ratings as of the date of determination.                                              
Yen-denominated loan variable interest rate due September 2023                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 0.46%                       0.46% 0.46% 0.46%                    
Debt instrument, principal amount | ¥                             ¥ 25,000   ¥ 25,000                
Debt instrument, interest rate terms   bears an interest rate per annum equal to TIBOR, or alternate TIBOR, if applicable, plus the applicable TIBOR margin and has a seven-year maturity. The applicable margin ranges between .35% and .75%, depending on the Parent Company's debt ratings as of the date of determination.                                              
2.40% senior notes due March 2020                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 2.40%     2.40%                 2.40% 2.40% 2.40%     2.40% 2.40% 2.40%          
Debt instrument, term       5 years                                          
Debt instrument effective principal amount after cross currency swap | ¥                                       ¥ 67,000          
Debt instrument, principal amount $ 550,000,000     $ 550,000,000                 $ 550,000,000 $ 550,000,000                      
Debt instrument, effective interest rate       0.24%                               0.24%          
3.25% senior notes due March 2025                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 3.25%     3.25%                 3.25% 3.25% 3.25%     3.25% 3.25% 3.25%          
Debt instrument, term       10 years                                          
Debt instrument effective principal amount after cross currency swap | ¥                                       ¥ 55,000          
Debt instrument, principal amount $ 450,000,000     $ 450,000,000                 $ 450,000,000 $ 450,000,000                      
Debt instrument, effective interest rate       0.82%                               0.82%          
3.625% senior notes due November 2024                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 3.625%       3.625%               3.625% 3.625% 3.625%     3.625% 3.625%   3.625%        
Debt instrument, term         10 years                                        
Debt instrument, redemption, description         These notes are redeemable at our 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 treasury rate plus 20 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.                                        
Debt instrument effective principal amount after cross currency swap | ¥                                         ¥ 85,300        
Debt instrument, principal amount $ 750,000,000       $ 750,000,000               $ 750,000,000 $ 750,000,000                      
Debt instrument, effective interest rate         1.00%                               1.00%        
3.625% senior notes due June 2023                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 3.625%         3.625%             3.625% 3.625% 3.625%     3.625% 3.625%     3.625%      
Debt instrument, term           10 years                                      
Debt instrument, redemption, description           These notes are redeemable at our 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 treasury rate plus 20 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.                                      
Debt instrument effective principal amount after cross currency swap | ¥                                           ¥ 69,800      
Debt instrument, principal amount $ 700,000,000         $ 700,000,000             $ 700,000,000 $ 700,000,000                      
Debt instrument, effective interest rate           1.50%                               1.50%      
5.50% subordinated notes due September 2052                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 5.50%           5.50% 5.50%         5.50% 5.50% 5.50%     5.50% 5.50%       5.50% 5.50%  
Debt instrument, term               40 years                                  
Debt instrument effective principal amount after cross currency swap | ¥                                             ¥ 3,900 ¥ 35,300  
Debt instrument, principal amount $ 500,000,000           $ 50,000,000 $ 450,000,000         $ 500,000,000 $ 500,000,000                      
Minimum prinicipal amount outstanding following partial redemption               $ 25,000,000                                  
Debt instrument, effective interest rate             4.42% 4.41%                             4.42% 4.41%  
Derivative, term of contract             5 years 5 years                                  
2.65% senior notes due February 2017                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 2.65%               2.65% 2.65%     2.65% 2.65% 2.65%     2.65% 2.65%           2.65%
Debt instrument, term                 5 years 5 years                              
Debt instrument effective principal amount after cross currency swap | ¥                                                 ¥ 30,900
Debt instrument, principal amount $ 400,000,000               $ 250,000,000 $ 400,000,000     $ 400,000,000 $ 400,000,000                      
Debt instrument, effective interest rate                   1.22%                             1.22%
4.00% senior notes due February 2022                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, interest rate 4.00%                 4.00%     4.00% 4.00% 4.00%     4.00% 4.00%           4.00%
Debt instrument, term                   10 years                              
Debt instrument effective principal amount after cross currency swap | ¥                                                 ¥ 27,000
Debt instrument, principal amount $ 350,000,000                 $ 350,000,000     $ 350,000,000 $ 350,000,000                      
Debt instrument, effective interest rate                   2.07%                             2.07%
6.90% senior notes due December 2039                                                  
Debt Instrument [Line Items]                                                  
Repayments of debt $ 176,000,000                                                
Debt instrument, interest rate 6.90%                       6.90% 6.90% 6.90%     6.90% 6.90%            
Debt instrument, term                       30 years                          
Debt instrument, principal amount                       $ 400,000,000                          
6.45% senior notes due August 2040                                                  
Debt Instrument [Line Items]                                                  
Repayments of debt $ 193,000,000                                                
Debt instrument, interest rate 6.45%                       6.45% 6.45% 6.45%     6.45% 6.45%            
Debt instrument, term                     30 years                            
Debt instrument, principal amount                     $ 450,000,000                            
Senior Notes due 2039 and 2040                                                  
Debt Instrument [Line Items]                                                  
Expense on extinguishment of debt                           $ 137,000,000                      
2.26% yen-denominated Uridashi notes paid September 2016                                                  
Debt Instrument [Line Items]                                                  
Repayments of debt | ¥   ¥ 8,000                                              
Debt instrument, interest rate                               2.26% 2.26% 2.26% 2.26%            
Debt instrument, principal amount | ¥                                     ¥ 8,000            
1.84% yen-denominated Samurai notes paid July 2016                                                  
Debt Instrument [Line Items]                                                  
Repayments of debt | ¥     ¥ 15,800                                            
Debt instrument, interest rate     1.84%                             1.84% 1.84%            
Debt instrument, principal amount | ¥                                     ¥ 15,800            
Senior Notes                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, principal amount       $ 1,000,000,000           $ 750,000,000           $ 700,000,000                  
Notes Payable                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, debt default, amount $ 0                       $ 0 0       $ 0              
Lines of credit                                                  
Debt Instrument [Line Items]                                                  
Debt instrument, debt default, amount 0                       $ 0 0       $ 0              
$100 million dollar line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility term                         364 days                        
Line of credit facility, maximum borrowing capacity 100,000,000                       $ 100,000,000 100,000,000                      
Line of credit facility, interest rate description                         Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period.                        
Line of credit facility, amount outstanding 0                       $ 0 $ 0                      
100 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility term                           3 years                      
Line of credit facility, maximum borrowing capacity | ¥                             ¥ 100,000                    
Line of credit facility, interest rate description                           Borrowings bear interest at a rate per annum equal to TIBOR plus, at our option, either (a) the applicable TIBOR margin during the period from the closing date to the commitment termination date or (b) the applicable TIBOR margin during the term out period. The applicable margin ranges between .35% and .75% during the period from the closing date to the commitment termination date and .70% and 1.50% during the term out period, depending on the Parent Company’s debt ratings as of the date of determination.                      
Line of credit facility, amount outstanding | ¥                             0                    
55 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility term                           5 years                      
Line of credit facility, maximum borrowing capacity | ¥                             55,000                    
Line of credit facility, interest rate description                           Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency rate determined by reference to the LIBOR for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin. The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination.                      
Line of credit facility, amount outstanding | ¥                             ¥ 0                    
$50 million dollar line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility, maximum borrowing capacity 50,000,000                       50,000,000 $ 50,000,000                      
Line of credit facility, interest rate description                           Borrowings will bear interest at the rate quoted by the bank and agreed upon at the time of making such loan and will have up to a three-month maturity period.                      
Line of credit facility, amount outstanding $ 0                       $ 0 $ 0                      
Upper Limit | 100 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility, commitment fee percentage                           0.50%                      
Upper Limit | 55 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility, commitment fee percentage                           0.225%                      
Lower Limit | 100 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility, commitment fee percentage                           0.30%                      
Lower Limit | 55 billion yen line of credit                                                  
Debt Instrument [Line Items]                                                  
Line of credit facility, commitment fee percentage                           0.085%                      
v3.6.0.2
NOTES PAYABLE - Summary of Notes Payable (Detail)
$ in Millions, ¥ in Billions
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Sep. 30, 2016
USD ($)
Sep. 30, 2016
JPY (¥)
Jul. 31, 2016
Dec. 31, 2015
USD ($)
Dec. 31, 2015
JPY (¥)
Mar. 31, 2015
USD ($)
Nov. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Oct. 31, 2012
USD ($)
Sep. 30, 2012
USD ($)
Jul. 31, 2012
USD ($)
Feb. 29, 2012
USD ($)
Aug. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Debt Instrument [Line Items]                                
Notes payable $ 5,360         $ 4,971                    
2.65% senior notes due February 2017                                
Debt Instrument [Line Items]                                
Notes payable 649         $ 651                    
Debt instrument, principal amount $ 400                       $ 250 $ 400    
Debt instrument, interest rate 2.65% 2.65%       2.65% 2.65%           2.65% 2.65%    
2.40% senior notes due March 2020                                
Debt Instrument [Line Items]                                
Notes payable $ 547         $ 546                    
Debt instrument, principal amount $ 550             $ 550                
Debt instrument, interest rate 2.40% 2.40%       2.40% 2.40% 2.40%                
4.00% senior notes due February 2022                                
Debt Instrument [Line Items]                                
Notes payable $ 348         $ 348                    
Debt instrument, principal amount $ 350                         $ 350    
Debt instrument, interest rate 4.00% 4.00%       4.00% 4.00%             4.00%    
3.625% senior notes due June 2023                                
Debt Instrument [Line Items]                                
Notes payable $ 696         $ 696                    
Debt instrument, principal amount $ 700                 $ 700            
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%     3.625%            
3.625% senior notes due November 2024                                
Debt Instrument [Line Items]                                
Notes payable $ 745         $ 744                    
Debt instrument, principal amount $ 750               $ 750              
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%   3.625%              
3.25% senior notes due March 2025                                
Debt Instrument [Line Items]                                
Notes payable $ 445         $ 445                    
Debt instrument, principal amount $ 450             $ 450                
Debt instrument, interest rate 3.25% 3.25%       3.25% 3.25% 3.25%                
2.875% senior notes due October 2026                                
Debt Instrument [Line Items]                                
Notes payable $ 298         $ 0                    
Debt instrument, principal amount     $ 300                          
Debt instrument, interest rate 2.875% 2.875% 2.875% 2.875%                        
6.90% senior notes due December 2039                                
Debt Instrument [Line Items]                                
Notes payable $ 220         $ 393                    
Debt instrument, principal amount                               $ 400
Debt instrument, interest rate 6.90% 6.90%       6.90% 6.90%                  
6.45% senior notes due August 2040                                
Debt Instrument [Line Items]                                
Notes payable $ 254         $ 445                    
Debt instrument, principal amount                             $ 450  
Debt instrument, interest rate 6.45% 6.45%       6.45% 6.45%                  
4.00% senior notes due October 2046                                
Debt Instrument [Line Items]                                
Notes payable $ 394         $ 0                    
Debt instrument, principal amount     $ 400                          
Debt instrument, interest rate 4.00% 4.00% 4.00% 4.00%                        
5.50% subordinated notes due September 2052                                
Debt Instrument [Line Items]                                
Notes payable $ 486         $ 486                    
Debt instrument, principal amount $ 500                   $ 50 $ 450        
Debt instrument, interest rate 5.50% 5.50%       5.50% 5.50%       5.50% 5.50%        
2.26% yen-denominated Uridashi notes paid September 2016                                
Debt Instrument [Line Items]                                
Notes payable $ 0         $ 66                    
Debt instrument, principal amount | ¥             ¥ 8.0                  
Debt instrument, interest rate     2.26% 2.26%   2.26% 2.26%                  
1.84% yen-denominated Samurai notes paid July 2016                                
Debt Instrument [Line Items]                                
Notes payable 0         $ 131                    
Debt instrument, principal amount | ¥             ¥ 15.8                  
Debt instrument, interest rate         1.84% 1.84% 1.84%                  
Yen-denominated loan variable interest rate due September 2021                                
Debt Instrument [Line Items]                                
Notes payable $ 43         $ 0                    
Debt instrument, principal amount | ¥   ¥ 5.0   ¥ 5.0                        
Debt instrument, interest rate 0.31% 0.31%                            
Yen-denominated loan variable interest rate due September 2023                                
Debt Instrument [Line Items]                                
Notes payable $ 214         0                    
Debt instrument, principal amount | ¥   ¥ 25.0   ¥ 25.0                        
Debt instrument, interest rate 0.46% 0.46%                            
Capitalized lease obligations                                
Debt Instrument [Line Items]                                
Notes payable $ 21         $ 20                    
v3.6.0.2
NOTES PAYABLE - Aggregate Contractual Maturities of Notes Payable (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Debt Instrument [Line Items]  
2017 $ 656
2018 6
2019 5
2020 552
2021 44
Thereafter 4,146
Total 5,409
Long-term debt  
Debt Instrument [Line Items]  
2017 650
2018 0
2019 0
2020 550
2021 43
Thereafter 4,145
Total 5,388
Capitalized lease obligations  
Debt Instrument [Line Items]  
2017 6
2018 6
2019 5
2020 2
2021 1
Thereafter 1
Total $ 21
v3.6.0.2
NOTES PAYABLE Summary of Notes Payable (Details)
$ in Millions, ¥ in Billions
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Sep. 30, 2016
USD ($)
Sep. 30, 2016
JPY (¥)
Jul. 31, 2016
Dec. 31, 2015
JPY (¥)
Mar. 31, 2015
USD ($)
Nov. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Oct. 31, 2012
USD ($)
Sep. 30, 2012
USD ($)
Jul. 31, 2012
USD ($)
Feb. 29, 2012
USD ($)
Aug. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
2.65% senior notes due February 2017                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 2.65% 2.65%       2.65%           2.65% 2.65%    
Debt instrument, principal amount $ 400                     $ 250 $ 400    
2.40% senior notes due March 2020                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 2.40% 2.40%       2.40% 2.40%                
Debt instrument, principal amount $ 550           $ 550                
4.00% senior notes due February 2022                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 4.00% 4.00%       4.00%             4.00%    
Debt instrument, principal amount $ 350                       $ 350    
3.625% senior notes due June 2023                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 3.625% 3.625%       3.625%     3.625%            
Debt instrument, principal amount $ 700               $ 700            
3.625% senior notes due November 2024                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 3.625% 3.625%       3.625%   3.625%              
Debt instrument, principal amount $ 750             $ 750              
3.25% senior notes due March 2025                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 3.25% 3.25%       3.25% 3.25%                
Debt instrument, principal amount $ 450           $ 450                
2.875% senior notes due October 2026                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 2.875% 2.875% 2.875% 2.875%                      
Debt instrument, principal amount     $ 300                        
6.90% senior notes due December 2039                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 6.90% 6.90%       6.90%                  
Debt instrument, principal amount                             $ 400
6.45% senior notes due August 2040                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 6.45% 6.45%       6.45%                  
Debt instrument, principal amount                           $ 450  
4.00% senior notes due October 2046                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 4.00% 4.00% 4.00% 4.00%                      
Debt instrument, principal amount     $ 400                        
5.50% subordinated notes due September 2052                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 5.50% 5.50%       5.50%       5.50% 5.50%        
Debt instrument, principal amount $ 500                 $ 50 $ 450        
2.26% yen-denominated Uridashi notes paid September 2016                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate     2.26% 2.26%   2.26%                  
Debt instrument, principal amount | ¥           ¥ 8.0                  
1.84% yen-denominated Samurai notes paid July 2016                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate         1.84% 1.84%                  
Debt instrument, principal amount | ¥           ¥ 15.8                  
Yen-denominated loan variable interest rate due September 2021                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 0.31% 0.31%                          
Debt instrument, principal amount | ¥   ¥ 5.0   ¥ 5.0                      
Yen-denominated loan variable interest rate due September 2023                              
Debt Instrument [Line Items]                              
Debt instrument, interest rate 0.46% 0.46%                          
Debt instrument, principal amount | ¥   ¥ 25.0   ¥ 25.0                      
v3.6.0.2
INCOME TAXES - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Taxes [Line Items]      
Unrecognized tax benefit, deductibility highly certain, timing uncertain $ 293 $ 261  
Japan Tax Rate 28.80% 30.80% 33.30%
The expected U.S. tax rate 35.00% 35.00% 35.00%
Non-life operating loss carryforwards, limitations only 35% of non-life operating losses can be offset against life insurance taxable income each year    
Unrecognized tax benefits, permanent uncertainties $ 1    
Unrecognized tax benefits, interest and penalties expense 13 $ 11 $ 11
Unrecognized tax benefits, accrued interest and penalties 26 $ 22  
Capital loss carryforwards $ 9    
v3.6.0.2
INCOME TAXES - Components of Income Tax Expense (Benefit) Applicable to Pretax Earnings (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of Provision of Income Taxes [Line Items]                      
Current                 $ 884 $ 1,288 $ 1,079
Deferred                 524 41 461
Total income tax expense $ 402 $ 334 $ 286 $ 386 $ 380 $ 297 $ 301 $ 350 1,408 1,329 1,540
Aflac U.S.                      
Reconciliation of Provision of Income Taxes [Line Items]                      
Current                 234 225 84
Deferred                 388 (1) 336
Total income tax expense                 622 224 420
Aflac Japan                      
Reconciliation of Provision of Income Taxes [Line Items]                      
Current                 650 1,063 995
Deferred                 136 42 125
Total income tax expense                 $ 786 $ 1,105 $ 1,120
v3.6.0.2
INCOME TAXES - Principal Reasons for Differences and Related Tax Effects where Income Tax Expense Varies from Amount Computed by Applying Expected United States Tax Rate of Thirty Five Percent to Pretax Earnings (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]                      
Income taxes based on U.S. statutory rates                 $ 1,424 $ 1,352 $ 1,572
Utilization of foreign tax credit                 (30) (27) (32)
Nondeductible expenses                 8 3 5
Other, net                 6 1 (5)
Total income tax expense $ 402 $ 334 $ 286 $ 386 $ 380 $ 297 $ 301 $ 350 $ 1,408 $ 1,329 $ 1,540
v3.6.0.2
INCOME TAXES - Total Income Tax Expense (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]                      
Statements of earnings $ 402 $ 334 $ 286 $ 386 $ 380 $ 297 $ 301 $ 350 $ 1,408 $ 1,329 $ 1,540
Other comprehensive income (loss):                      
Unrealized foreign currency translation gains (losses) during period                 70 16 (419)
Unrealized gains (losses) on investment securities:                      
Unrealized holding gains (losses) on investment securities during period                 962 (931) 2,237
Reclassification adjustment for realized (gains) losses on investment securities included in net earnings                 18 21 19
Unrealized gains (losses) on derivatives during period                 1 0 (3)
Pension liability adjustment during period                 (16) (7) (31)
Total income tax expense (benefit) related to items of other comprehensive income (loss)                 1,035 (901) 1,803
Additional paid-in capital (exercise of stock options)                 (10) 4 (7)
Total income taxes                 $ 2,433 $ 432 $ 3,336
v3.6.0.2
INCOME TAXES - Income Tax Effects of Temporary Differences that Gave Rise to Deferred Income Tax Assets and Liabilities (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Deferred income tax liabilities:    
Deferred policy acquisition costs $ 2,439 $ 2,282
Unrealized gains on investment securities 2,636 1,684
Premiums receivable 111 139
Policy benefit reserves 1,638 1,313
Depreciation 70 61
Other 0 0
Total deferred income tax liabilities 6,894 5,479
Deferred income tax assets:    
Other basis differences in investment securities 1,167 1,422
Unfunded retirement benefits 13 15
Other accrued expenses 11 7
Policy and contract claims 146 113
Foreign currency loss on Japan branch 185 208
Deferred compensation 210 181
Capital loss carryforwards 3 0
Other 103 95
Total deferred income tax assets 1,838 2,041
Net deferred income tax liability 5,056 3,438
Current income tax liability 331 902
Total income tax liability $ 5,387 $ 4,340
v3.6.0.2
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Balance, beginning of year $ 264 $ 309
Additions for tax positions of prior years 33 0
Reductions for tax positions of prior years (3) (45)
Balance, end of year $ 294 $ 264
v3.6.0.2
SHAREHOLDERS' EQUITY - Additional Information (Detail)
shares in Millions
 12 Months Ended
Dec. 31, 2016
Vote
shares
Dec. 31, 2015
shares
Dec. 31, 2014
shares
Stockholders Equity Note [Line Items]      
Common stock, voting rights are generally entitled to one vote per share until they have been held by the same beneficial owner for a continuous period of 48 months, at which time they become entitled to 10 votes per share.    
Remaining common stock available for purchase under share repurchase authorizations | shares 26.8    
Common Stock Votes Per Share Two | Vote 1    
Share repurchase program      
Stockholders Equity Note [Line Items]      
Stock acquired in open market, shares | shares 21.6 21.2 19.7
Share Held For Continuous Forty Eight Month Period      
Stockholders Equity Note [Line Items]      
Voting rights, votes per share | Vote 10    
v3.6.0.2
SHAREHOLDERS' EQUITY - Reconciliation of Number of Shares of Common Stock (Detail) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Common Stock Issued [Roll Forward]      
Balance, beginning of period 669,723 668,132 667,046
Exercise of stock options and issuance of restricted shares 1,526 1,591 1,086
Balance, end of period 671,249 669,723 668,132
Treasury Stock [Roll Forward]      
Balance, beginning of period 245,343 225,687 207,633
Exercise of stock options (2,061) (2,013) (1,236)
Balance, end of period 265,439 245,343 225,687
Shares outstanding, end of period 405,810 424,380 442,445
Treasury Stock      
Treasury Stock [Roll Forward]      
Stock acquired in open market, shares 21,618 21,179 19,660
Other purchases 330 247 157
Shares issued to AFL Stock Plan (1,064) (1,209) (1,251)
Exercise of stock options (683) (465) (391)
Other dispositions (105) (96) (121)
v3.6.0.2
SHAREHOLDERS' EQUITY - Anti-Dilutive Share-Based Awards Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stockholders' Equity Note [Abstract]      
Anti-dilutive share-based awards 911 1,862 1,215
v3.6.0.2
SHAREHOLDERS' EQUITY - Weighted-Average Shares Used in Calculating Earnings Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stockholders' Equity Note [Abstract]      
Weighted-average outstanding shares used for calculating basic EPS 411,471 430,654 451,204
Dilutive effect of share-based awards 2,450 2,518 2,796
Weighted-average outstanding shares used for calculating diluted EPS 413,921 433,172 454,000
v3.6.0.2
SHAREHOLDERS' EQUITY - Changes in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income [Roll Forward]      
Balance, beginning of period $ 625 $ 1,979 $ (563)
Other comprehensive income loss before reclassifications net of tax 2,037 (1,314) 2,578
Amounts reclassified from accumulated other comprehensive income net of tax (32) (40) (36)
Other comprehensive income (loss), net of income taxes 2,005 (1,354) 2,542
Balance, end of period 2,630 625 1,979
Unrealized foreign currency translation gains (losses)      
Accumulated Other Comprehensive Income [Roll Forward]      
Balance, beginning of period (2,196) (2,541) (1,505)
Other comprehensive income loss before reclassifications net of tax 213 345 (1,036)
Amounts reclassified from accumulated other comprehensive income net of tax 0 0 0
Other comprehensive income (loss), net of income taxes 213 345 (1,036)
Balance, end of period (1,983) (2,196) (2,541)
Unrealized gains (losses) on investment securities      
Accumulated Other Comprehensive Income [Roll Forward]      
Balance, beginning of period 2,986 4,672 1,035
Other comprehensive income loss before reclassifications net of tax 1,854 (1,646) 3,672
Amounts reclassified from accumulated other comprehensive income net of tax (35) (40) (35)
Other comprehensive income (loss), net of income taxes 1,819 (1,686) 3,637
Balance, end of period 4,805 2,986 4,672
Unrealized Gains (Losses) on Derivatives      
Accumulated Other Comprehensive Income [Roll Forward]      
Balance, beginning of period (26) (26) (12)
Other comprehensive income loss before reclassifications net of tax 2 0 (14)
Amounts reclassified from accumulated other comprehensive income net of tax 0 0 0
Other comprehensive income (loss), net of income taxes 2 0 (14)
Balance, end of period (24) (26) (26)
Pension liability adjustment      
Accumulated Other Comprehensive Income [Roll Forward]      
Balance, beginning of period (139) (126) (81)
Other comprehensive income loss before reclassifications net of tax (32) (13) (44)
Amounts reclassified from accumulated other comprehensive income net of tax 3 0 (1)
Other comprehensive income (loss), net of income taxes (29) (13) (45)
Balance, end of period $ (168) $ (139) $ (126)
v3.6.0.2
SHAREHOLDERS' EQUITY - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Sales and redemptions                 $ 215 $ 303 $ 215
Other-than-temporary impairment losses realized                 (83) (153) (31)
Total before tax $ 1,153 $ 963 $ 834 $ 1,117 $ 1,110 $ 864 $ 874 $ 1,013 4,067 3,862 4,491
Income Tax (Expense) Benefit $ (402) $ (334) $ (286) $ (386) $ (380) $ (297) $ (301) $ (350) (1,408) (1,329) (1,540)
Net of tax                 $ 2,659 $ 2,533 $ 2,951
The expected U.S. tax rate                 35.00% 35.00% 35.00%
Reclassification out of Accumulated Other Comprehensive Income                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Net of tax                 $ 32 $ 40 $ 36
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gains (losses) on investment securities                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Sales and redemptions                 136 214 57
Other-than-temporary impairment losses realized                 (83) (153) (3)
Total before tax                 53 61 54
Income Tax (Expense) Benefit [1]                 (18) (21) (19)
Net of tax                 35 40 35
Reclassification out of Accumulated Other Comprehensive Income | Pension liability adjustment                      
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]                      
Acquisition and operating expense, actuarial gains (losses) [2]                 (15) (17) (15)
Acquisition and operating expenses, prior service (cost) credit [2]                 11 17 17
Income Tax (Expense) Benefit [1]                 1 0 (1)
Net of tax                 $ (3) $ 0 $ 1
[1] Based on 35% tax rate
[2] These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).
v3.6.0.2
SHARE-BASED COMPENSATION - Additional Information (Detail)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
plan
$ / shares
shares
Dec. 31, 2015
$ / shares
shares
Dec. 31, 2014
$ / shares
shares
Dec. 31, 2013
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share based compensation arrangement by share based payment award, options, grants in period, weighted average grant date fair value | $ / shares $ 12.70 $ 9.46 $ 16.24  
Number of long-term incentive compensation plans | plan 2      
Closing common stock price | $ / shares $ 69.60      
Aggregate intrinsic value of stock options outstanding $ 108      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 4 years 9 months 18 days      
Aggregate intrinsic value of stock options exercisable $ 93      
Weighted-average remaining term of stock options exercisable (in years) 3 years 3 months 18 days      
Stock Option Plan Effective Until February 2007 Member        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock option plan, term (in years) 10 years      
Second Stock Option Plan [Member]        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 10 years      
Stock option plan, vesting period 3 years      
Shares available for future grants under the long-term incentive plan | shares 8,800      
Restricted stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation cost not yet recognized, restricted stock awards $ 33      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares 1,868 1,815 1,880 1,671
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition 1 year      
Performance Based Vesting Condition Member | Restricted stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total compensation cost not yet recognized, restricted stock awards $ 10      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares 953      
v3.6.0.2
SHARE-BASED COMPENSATION - Expense Recognized in Connection with Share-Based Awards (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]                      
Earnings before income taxes $ 1,153 $ 963 $ 834 $ 1,117 $ 1,110 $ 864 $ 874 $ 1,013 $ 4,067 $ 3,862 $ 4,491
Net earnings                 $ 2,659 $ 2,533 $ 2,951
Net earnings per share:                      
Basic (in dollars per share) $ 1.85 $ 1.54 $ 1.33 $ 1.75 $ 1.72 $ 1.32 $ 1.33 $ 1.52 $ 6.46 $ 5.88 $ 6.54
Diluted (in dollars per share) $ 1.84 $ 1.53 $ 1.32 $ 1.74 $ 1.71 $ 1.32 $ 1.32 $ 1.51 $ 6.42 $ 5.85 $ 6.50
Share Based Compensation Expense                      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]                      
Earnings from continuing operations                 $ 68 $ 39 $ 41
Earnings before income taxes                 68 39 41
Net earnings                 $ 46 $ 27 $ 28
Net earnings per share:                      
Basic (in dollars per share)                 $ 0.11 $ 0.06 $ 0.06
Diluted (in dollars per share)                 $ 0.11 $ 0.06 $ 0.06
v3.6.0.2
SHARE-BASED COMPENSATION - Assumptions Used in Valuing Options Granted (Detail)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Expected term (years) 6 years 4 months 24 days 6 years 3 months 18 days 6 years 3 months 18 days
Expected volatility 27.00% 20.00% 30.00%
Annual forfeiture rate 3.20% 2.80% 2.70%
Risk-free interest rate 2.20% 2.00% 2.80%
Dividend yield 2.90% 2.70% 2.30%
v3.6.0.2
SHARE-BASED COMPENSATION - Stock Option Activity (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stock Option Shares      
Beginning Balance 7,918 9,307 9,980
Granted 664 855 678
Canceled (181) (231) (115)
Exercised (2,061) (2,013) (1,236)
Ending Balance 6,340 7,918 9,307
Weighted-Average Exercise Price Per Share      
Beginning Balance $ 50.94 $ 48.84 $ 47.03
Granted 61.39 61.47 61.81
Canceled 55.63 55.70 52.01
Exercised 48.91 45.15 41.04
Ending Balance $ 52.56 $ 50.94 $ 48.84
v3.6.0.2
SHARE-BASED COMPENSATION - Shares Exercisable (Detail) - shares
shares in Thousands
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Shares exercisable, end of year 4,493 6,085 7,497
v3.6.0.2
SHARE-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Detail) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range $ 14.99      
Range of Exercise Prices Per Share - Upper Range $ 72.42      
Options Outstanding - Stock Option Shares 6,340 7,918 9,307 9,980
Options Outstanding - Weighted-Average Remaining Term (Yrs) 4 years 9 months 18 days      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 52.56 $ 50.94 $ 48.84 $ 47.03
Options Exercisable - Stock Option Shares 4,493 6,085 7,497  
Options Exercisable - Weighted-Average Exercise Price Per Share $ 48.88      
$14.99 - $47.06        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range 14.99      
Range of Exercise Prices Per Share - Upper Range $ 47.06      
Options Outstanding - Stock Option Shares 1,639      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 3 years      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 36.38      
Options Exercisable - Stock Option Shares 1,639      
Options Exercisable - Weighted-Average Exercise Price Per Share $ 36.38      
$47.23 - $55.72        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range 47.23      
Range of Exercise Prices Per Share - Upper Range $ 55.72      
Options Outstanding - Stock Option Shares 1,348      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 3 years 9 months 18 days      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 51.11      
Options Exercisable - Stock Option Shares 1,348      
Options Exercisable - Weighted-Average Exercise Price Per Share $ 51.11      
$56.24 - $61.45        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range 56.24      
Range of Exercise Prices Per Share - Upper Range $ 61.45      
Options Outstanding - Stock Option Shares 1,706      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 7 years      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 59.05      
Options Exercisable - Stock Option Shares 632      
Options Exercisable - Weighted-Average Exercise Price Per Share $ 57.92      
$61.81 - $63.16        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range 61.81      
Range of Exercise Prices Per Share - Upper Range $ 63.16      
Options Outstanding - Stock Option Shares 1,322      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 4 years 1 month 6 days      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 62.10      
Options Exercisable - Stock Option Shares 802      
Options Exercisable - Weighted-Average Exercise Price Per Share $ 61.87      
$63.34 - $72.42        
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]        
Range of Exercise Prices Per Share - Lower Range 63.34      
Range of Exercise Prices Per Share - Upper Range $ 72.42      
Options Outstanding - Stock Option Shares 325      
Options Outstanding - Weighted-Average Remaining Term (Yrs) 8 years 6 months      
Options Outstanding - Weighted-Average Exercise Price Per Share $ 67.36      
Options Exercisable - Stock Option Shares 72      
Options Exercisable - Weighted-Average Exercise Price Per Share $ 67.50      
v3.6.0.2
SHARE-BASED COMPENSATION - Summary of Stock Option Activity (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Total intrinsic value of options exercised $ 41 $ 36 $ 25
Cash received from options exercised 68 68 39
Tax benefit realized as a result of options exercised and restricted stock releases $ 45 $ 25 $ 17
v3.6.0.2
SHARE-BASED COMPENSATION - Restricted Stock Activity (Detail) - Restricted stock - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Shares      
Beginning balance 1,815 1,880 1,671
Granted 878 638 584
Canceled (76) (145) (27)
Vested (749) (558) (348)
Ending Balance 1,868 1,815 1,880
Weighted-Average Grant-Date Fair Value Per Share      
Beginning balance $ 58.42 $ 54.33 $ 52.12
Granted 61.68 61.51 62.12
Canceled 60.65 57.52 52.66
Vested 53.68 48.41 56.95
Ending Balance $ 61.76 $ 58.42 $ 54.33
v3.6.0.2
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Additional Information (Detail)
$ in Millions, ¥ in Billions
 12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2016
JPY (¥)
Statutory Accounting Practices [Line Items]        
Statutory accounting practices, statutory capital and surplus required $ 1,300      
Net Derivatives Notional Amount 43,927 $ 22,127    
Aflac        
Statutory Accounting Practices [Line Items]        
Capital and surplus, statutory accounting practices of the state or country basis 11,221 11,298    
Net Income, Nebraska state basis 2,800 2,300 $ 2,400  
Amount available for dividend distribution without prior approval from regulatory agency 2,800      
Dividends declared 2,000      
Aflac Japan        
Statutory Accounting Practices [Line Items]        
Capital and surplus, statutory accounting practices of the state or country basis 5,600 $ 4,700    
Twenty Sixteen Profit Repatriation        
Statutory Accounting Practices [Line Items]        
Intercompany transfer profit repatriation, reduction in amount received $ 64      
Foreign currency forwards and options | Twenty Sixteen Profit Repatriation        
Statutory Accounting Practices [Line Items]        
Net Derivatives Notional Amount | ¥       ¥ 114.0
Foreign currency forwards and options | Future profit repatriation        
Statutory Accounting Practices [Line Items]        
Net Derivatives Notional Amount | ¥       ¥ 122.6
v3.6.0.2
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Reconciliation of Capital and Surplus Between Sap and Practices Permitted by the State of Nebraska (Detail) - Aflac - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Statutory Accounting Practices [Line Items]    
Capital and surplus, Nebraska state basis $ 11,221 $ 11,298
Capital and surplus, NAIC basis 10,417 10,553
Lease Deposits    
Statutory Accounting Practices [Line Items]    
State permitted practice amount (40) (38)
Reinsurance    
Statutory Accounting Practices [Line Items]    
State permitted practice amount $ (764) $ (707)
v3.6.0.2
STATUTORY ACCOUNTING AND DIVIDEND RESTRICTIONS - Profits Repatriated by Aflac Japan to Aflac U.S. (Detail)
$ in Millions, ¥ in Billions
 12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Dec. 31, 2015
USD ($)
Dec. 31, 2015
JPY (¥)
Dec. 31, 2014
USD ($)
Dec. 31, 2014
JPY (¥)
Insurance [Abstract]            
Profit repatriation $ 1,286 ¥ 138.5 $ 2,139 ¥ 259.0 $ 1,704 ¥ 181.4
v3.6.0.2
BENEFIT PLANS - Additional Information (Detail) - USD ($)
shares in Millions, $ in Millions
 1 Months Ended 12 Months Ended
Oct. 31, 2013
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Amount of years left to meet rule of 80 for active employees to be eligible for postretirement medical benefits         5 years
Amount of years left to meet 15 year service requirement for active employees age 55 or older to be eligible for postretirement medical benefits         5 years
Transition obligation   $ 0      
Matching 401(k) plan contributions included in acquisition and operating expenses   $ 11 $ 9 $ 7  
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan   50.00% 50.00% 50.00%  
Shares of employer-issued common stock held for plan participants by plan trustee (in millions)   1      
Non-Elective Defined Contribution Percentage of Employee Compensation   2.00%      
Lower Limit          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Health care plan, retirement age for eligibility, (in years)         55 years
Health care plan, number of years of service for eligibility         15 years
Health care plan, retirement age and years of service combined years for eligibility         80 years
Upper Limit          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan   6.00% 6.00% 6.00%  
Japan Pension Plan          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Discount rate - benefit obligations   1.25% 1.75% 1.75%  
AA corporate bonds average duration   20 years      
Defined benefit plan, future amortization of actuarial losses   $ 2      
Defined benefit plan, expected contributions to the plan in the following year   $ 21      
U.S. Pension Plan          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Discount rate - benefit obligations   4.25% 4.50% 4.50%  
AA corporate bonds average duration   17 years      
Defined benefit plan, future amortization of actuarial losses   $ 14      
Defined benefit plan, expected contributions to the plan in the following year   $ 10      
Other Postretirement Benefit Plans, Defined Benefit          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Defined Benefit Plan, Plan Amendments $ (51)        
Plan amendment remaining amortization period 3 years        
Discount rate - benefit obligations 4.75% 4.25% 4.50% 4.50%  
Prior service cost (credit)         $ (51)
Defined benefit plan, future amortization of actuarial losses   $ 1      
Associate Stock Bonus Plan          
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]          
Deferred policy acquisition costs, amount attributable to stock bonus plan   $ 31 $ 34 $ 36  
v3.6.0.2
BENEFIT PLANS - Reconciliation of Funded Status of Basic Employee Defined-Benefit Pension Plans (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Japan Pension Plan      
Projected benefit obligation:      
Benefit obligation, beginning of year $ 276 $ 267  
Service cost 16 15 $ 15
Interest cost 9 1 9
Actuarial (gain) loss 29 0  
Benefits and expenses paid (8) (7)  
Effect of foreign exchange rate changes 7 0  
Benefit obligation, end of year 329 276 267
Plan assets:      
Fair value of plan assets, beginning of year 198 183  
Actual return on plan assets 9 1  
Employer contributions 25 21  
Benefits and expenses paid (8) (7)  
Effect of foreign exchange rate changes 5 0  
Fair value of plan assets, end of year 229 198 183
Funded status of the plans [1] (100) (78)  
Amounts recognized in accumulated other comprehensive income:      
Net actuarial (gain) loss 67 42  
Prior service (credit) cost (2) (2)  
Total included in accumulated other comprehensive income 65 40  
Accumulated benefit obligation 288 244  
U.S. Pension Plan      
Projected benefit obligation:      
Benefit obligation, beginning of year 735 717  
Service cost 23 23 20
Interest cost 29 18 38
Actuarial (gain) loss 29 (6)  
Benefits and expenses paid (18) (17)  
Effect of foreign exchange rate changes 0 0  
Benefit obligation, end of year 798 735 717
Plan assets:      
Fair value of plan assets, beginning of year 336 341  
Actual return on plan assets 24 (6)  
Employer contributions 17 18  
Benefits and expenses paid (18) (17)  
Effect of foreign exchange rate changes 0 0  
Fair value of plan assets, end of year 359 336 341
Funded status of the plans [1] (439) (399)  
Amounts recognized in accumulated other comprehensive income:      
Net actuarial (gain) loss 189 175  
Prior service (credit) cost (4) (4)  
Total included in accumulated other comprehensive income 185 171  
Accumulated benefit obligation 670 621  
Other Postretirement Benefit Plans, Defined Benefit      
Projected benefit obligation:      
Benefit obligation, beginning of year 40 44  
Service cost 1 1 1
Interest cost 2 2 2
Actuarial (gain) loss (4) (5)  
Benefits and expenses paid (2) (2)  
Effect of foreign exchange rate changes 0 0  
Benefit obligation, end of year 37 40 44
Plan assets:      
Fair value of plan assets, beginning of year 0 0  
Actual return on plan assets 0 0  
Employer contributions 2 2  
Benefits and expenses paid (2) (2)  
Effect of foreign exchange rate changes 0 0  
Fair value of plan assets, end of year 0 0 $ 0
Funded status of the plans [1] (37) (40)  
Amounts recognized in accumulated other comprehensive income:      
Net actuarial (gain) loss 7 12  
Prior service (credit) cost 0 (11)  
Total included in accumulated other comprehensive income $ 7 $ 1  
[1] Recognized in other liabilities in the consolidated balance sheets
v3.6.0.2
BENEFIT PLANS - Weighted-Average Actuarial Assumptions (Detail)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Oct. 31, 2013
Japan Pension Plan        
Weighted-average actuarial assumptions:        
Discount rate - net periodic benefit cost 1.75% 1.75% 2.25%  
Discount rate - benefit obligations 1.25% 1.75% 1.75%  
Expected long-term return on plan assets 2.00% 2.00% 2.00%  
U.S. Pension Plan        
Weighted-average actuarial assumptions:        
Discount rate - net periodic benefit cost 4.50% 4.50% 4.75%  
Discount rate - benefit obligations 4.25% 4.50% 4.50%  
Expected long-term return on plan assets 7.00% 7.25% 7.50%  
Rate of compensation increase 4.00% 4.00% 4.00%  
Other Postretirement Benefit Plans, Defined Benefit        
Weighted-average actuarial assumptions:        
Discount rate - net periodic benefit cost 4.50% 4.50% 4.75%  
Discount rate - benefit obligations 4.25% 4.50% 4.50% 4.75%
Health care cost trend rates [1] 5.20% 5.30% 5.70%  
Defined benefit plan, ultimate health care cost trend rate 4.50% 4.50% 4.60%  
Defined benefit plan number of years that rate reaches ultimate trend rate 74 years 78 years 78 years  
[1] For the years 2016, 2015 and 2014, the health care cost trend rates are expected to trend down to 4.5% in 74 years, 4.5% in 78 years, and 4.6% in 78 years, respectively.
v3.6.0.2
BENEFIT PLANS - One-Percentage Point Increase and Decrease in Assumed Health Care Cost Trend Rates (Detail)
$ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Increase in total service and interest costs $ 0
Increase in postretirement benefit obligation 2
Decrease in total service and interest costs 0
Decrease in postretirement benefit obligation $ 2
v3.6.0.2
BENEFIT PLANS - Net Periodic (Benefit) Cost Included in Acquisition and Operating Expenses (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Japan Pension Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost $ 16 $ 15 $ 15
Interest cost 9 1 9
Expected return on plan assets (4) (4) (4)
Amortization of net actuarial loss 1 1 1
Amortization of prior service cost (credit) 0 0 0
Net periodic (benefit) cost 22 13 21
U.S. Pension Plan      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost 23 23 20
Interest cost 29 18 38
Expected return on plan assets (23) (22) (20)
Amortization of net actuarial loss 13 14 11
Amortization of prior service cost (credit) 0 0 0
Net periodic (benefit) cost 42 33 49
Other Postretirement Benefit Plans, Defined Benefit      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Service cost 1 1 1
Interest cost 2 2 2
Expected return on plan assets 0 0 0
Amortization of net actuarial loss 1 2 3
Amortization of prior service cost (credit) (11) (17) (17)
Net periodic (benefit) cost $ (7) $ (12) $ (11)
v3.6.0.2
BENEFIT PLANS - Summary of Amounts Recognized in Other Comprehensive Loss (Income) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Japan Pension Plan        
Defined Benefit Plan Disclosure [Line Items]        
Net actuarial loss (gain) $ 26 $ 3 $ 12  
Amortization of net actuarial loss (1) (1) (1)  
Amortization of prior service cost 0 0 0  
Total 25 2 11  
U.S. Pension Plan        
Defined Benefit Plan Disclosure [Line Items]        
Net actuarial loss (gain) 27 22 67  
Amortization of net actuarial loss (13) (14) (11)  
Amortization of prior service cost 0 0 0  
Total 14 8 56  
Other Postretirement Benefit Plans, Defined Benefit        
Defined Benefit Plan Disclosure [Line Items]        
Net actuarial loss (gain) (4) (5) (3)  
Amortization of net actuarial loss (1) (2) (3)  
Prior service cost (credit)       $ (51)
Amortization of prior service cost 11 17 17  
Total $ 6 $ 10 $ 11  
v3.6.0.2
BENEFIT PLANS - Expected Benefit Payments (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Japan Pension Plan  
Schedule of Postemployment Expected Future Benefit Payments [Line Items]  
2017 $ 13
2018 8
2019 9
2020 10
2021 10
2022-2026 74
U.S. Pension Plan  
Schedule of Postemployment Expected Future Benefit Payments [Line Items]  
2017 22
2018 23
2019 24
2020 25
2021 27
2022-2026 180
Other Postretirement Benefit Plans, Defined Benefit  
Schedule of Postemployment Expected Future Benefit Payments [Line Items]  
2017 2
2018 2
2019 3
2020 3
2021 3
2022-2026 $ 18
v3.6.0.2
BENEFIT PLANS - Asset Allocation Targets (Detail)
 12 Months Ended
Dec. 31, 2016
Japan Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 100.00%
U.S. Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 100.00%
Domestic equity securities | Japan Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 11.00%
Domestic equity securities | U.S. Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 40.00%
International equity securities | Japan Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 15.00%
International equity securities | U.S. Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 20.00%
Fixed income funds | Japan Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 59.00%
Fixed income funds | U.S. Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 40.00%
Other Investments | Japan Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 15.00%
Other Investments | U.S. Pension Plan  
Defined Benefit Plan Disclosure [Line Items]  
Asset allocation targets 0.00%
v3.6.0.2
BENEFIT PLANS - Fair Value Hierarchy Levels of Funded Pension Plans' Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Japan Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets $ 229 $ 198 $ 183
U.S. Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 359 336 $ 341
U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 359 336  
Japanese equity securities | Japan Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 28 22  
International equity securities | Japan Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 40 33  
Japanese bonds | Japan Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 79 71  
International bonds | Japan Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 55 48  
Insurance contracts | Japan Pension Plan | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 27 23  
Cash and cash equivalents | Japan Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 0 1  
Cash and cash equivalents | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 1 1  
U S large cap equity securities | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 104 94  
U S mid cap equity securities | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 19 16  
Real estate equity funds | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 10 10  
International fund | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 85 77  
Fixed income funds | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets 136 134  
Aflac Incorporated common stock | U.S. Pension Plan | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of pension plan assets $ 4 $ 4  
v3.6.0.2
COMMITMENTS AND CONTINGENT LIABILITIES - Additional Information (Detail)
¥ in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2016
USD ($)
agreements
Dec. 31, 2016
JPY (¥)
Commitments and Contingencies Disclosure [Line Items]    
Number of operating service agreements, technology and consulting 2  
Number of operating service agreements, management consulting and technology 1  
Middle Market Loan Commitment | $ $ 779  
Commercial mortgage loan commitments | $ $ 19  
Number of operating service agreements, information technology and data services 2  
Operating Leases, lease terms expire in various years through 2026 expire in various years through 2026
Mainframe and server computer operations and support    
Commitments and Contingencies Disclosure [Line Items]    
Outsourcing agreements, remaining term 4 years 4 years
Outsourcing agreements, aggregate remaining cost $ 315 ¥ 36,700
Technology and consulting company application maintenance and development services    
Commitments and Contingencies Disclosure [Line Items]    
Outsourcing agreements, remaining term 5 years 5 years
Outsourcing agreements, aggregate remaining cost $ 102 ¥ 11,900
Management consulting and technology services company application maintenance and development services    
Commitments and Contingencies Disclosure [Line Items]    
Outsourcing agreements, remaining term 5 years 5 years
Outsourcing agreements, aggregate remaining cost $ 132 ¥ 15,400
Information technology and data services company application maintenance and development services first agreement    
Commitments and Contingencies Disclosure [Line Items]    
Outsourcing agreements, remaining term 3 years 3 years
Outsourcing agreements, aggregate remaining cost $ 53 ¥ 6,100
Information technology and data services company application maintenance and development services second agreement    
Commitments and Contingencies Disclosure [Line Items]    
Outsourcing agreements, remaining term 1 year 1 year
Outsourcing agreements, aggregate remaining cost $ 6 ¥ 740
v3.6.0.2
COMMITMENTS AND CONTINGENT LIABILITIES - Future Minimum Lease Payments due under Non-Cancelable Operating Leases (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2017 $ 62
2018 41
2019 18
2020 13
2021 11
Thereafter 0
Total future minimum lease payments $ 145
v3.6.0.2
Unaudited Consolidated Quarterly Financial Data (Detail) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Income Statements, [Line Items]                      
Net premium income $ 4,778 $ 5,022 $ 4,823 $ 4,602 $ 4,394 $ 4,380 $ 4,364 $ 4,432 $ 19,225 $ 17,570 $ 19,072
Net investment income 813 842 822 801 792 784 777 782 3,278 3,135 3,319
Realized investment gains (losses) 137 (146) (187) 73 114 (114) 127 13      
Other income (loss) 227 (2) (21) (25) 19 (10) 19 (1) 179 27 122
Total revenues 5,955 5,716 5,437 5,451 5,319 5,040 5,287 5,226 22,559 20,872 22,728
Total benefits and expenses 4,802 4,753 4,603 4,334 4,209 4,176 4,413 4,213 18,492 17,010 18,237
Earnings before income taxes 1,153 963 834 1,117 1,110 864 874 1,013 4,067 3,862 4,491
Total income tax expense 402 334 286 386 380 297 301 350 $ 1,408 $ 1,329 $ 1,540
Net earnings $ 751 $ 629 $ 548 $ 731 $ 730 $ 567 $ 573 $ 663      
Net earnings per basic share $ 1.85 $ 1.54 $ 1.33 $ 1.75 $ 1.72 $ 1.32 $ 1.33 $ 1.52 $ 6.46 $ 5.88 $ 6.54
Net earnings per diluted share $ 1.84 $ 1.53 $ 1.32 $ 1.74 $ 1.71 $ 1.32 $ 1.32 $ 1.51 $ 6.42 $ 5.85 $ 6.50
Parent Company                      
Condensed Income Statements, [Line Items]                      
Net investment income                 $ 18 $ 22 $ 13
Other income (loss)                 0 0 (11)
Total revenues                 2,233 2,714 2,122
Earnings before income taxes                 1,743 2,162 1,791
Total income tax expense                 $ (102) $ (80) $ 121
Yen Denominated Loan Three Point Zero Zero Percent Due August Twenty Fifteen [Member] | Parent Company                      
Condensed Income Statements, [Line Items]                      
Debt Instrument, Interest Rate, Stated Percentage 0.46%               0.46%    
v3.6.0.2
SUBSEQUENT EVENTS - Additional Information (Detail) - .932% senior notes due January 2027 - Subsequent events
¥ in Billions
 1 Months Ended
Jan. 31, 2017
JPY (¥)
Subsequent Event [Line Items]  
Debt instrument, principal amount ¥ 60.0
Debt instrument, interest rate 0.932%
Debt instrument, term 10 years
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statement of Earnings (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Income Statements, [Line Items]                      
Net investment income $ 813 $ 842 $ 822 $ 801 $ 792 $ 784 $ 777 $ 782 $ 3,278 $ 3,135 $ 3,319
Realized investment gains (losses)                 (123) 140 215
Other income (loss) 227 (2) (21) (25) 19 (10) 19 (1) 179 27 122
Total revenues 5,955 5,716 5,437 5,451 5,319 5,040 5,287 5,226 22,559 20,872 22,728
Interest expense                 268 289 317
Other operating expenses                 344 [1] 392 [1] 178
Earnings before income taxes 1,153 963 834 1,117 1,110 864 874 1,013 4,067 3,862 4,491
Current tax expense (benefit)                 884 1,288 1,079
Deferred tax expense (benefit)                 524 41 461
Total income tax expense $ 402 $ 334 $ 286 $ 386 $ 380 $ 297 $ 301 $ 350 1,408 1,329 1,540
Net earnings                 2,659 2,533 2,951
Parent Company                      
Condensed Income Statements, [Line Items]                      
Dividends from subsidiaries [2]                 2,020 2,393 1,483
Management and service fees from subsidiaries [2]                 265 260 272
Net investment income                 18 22 13
Interest from subsidiaries [2]                 5 6 6
Realized investment gains (losses)                 84 86 45
Change in fair value on the cross-currency interest rate swaps                 (159) (53) 314
Other income (loss)                 0 0 (11)
Total revenues                 2,233 2,714 2,122
Interest expense                 213 231 243
Other operating expenses                 277 [3] 321 [3] 88
Total operating expenses                 490 552 331
Earnings before income taxes                 1,743 2,162 1,791
Current tax expense (benefit)                 3 2 1
Deferred tax expense (benefit)                 (105) (82) 120
Total income tax expense                 (102) (80) 121
Earnings before equity in undistributed earnings of subsidiaries                 1,845 2,242 1,670
Equity in undistributed earnings of subsidiaries [2]                 814 291 1,281
Net earnings                 2,659 2,533 $ 2,951
Senior Notes due 2039 and 2040                      
Condensed Income Statements, [Line Items]                      
Expense on extinguishment of debt                 $ 137    
8.50% senior notes due May 2019                      
Condensed Income Statements, [Line Items]                      
Expense on extinguishment of debt                   $ 230  
[1] Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
[2] Eliminated in consolidation
[3] Includes expense of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statements of Comprehensive Income (Loss) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Financial Statements, Captions [Line Items]      
Net earnings $ 2,659 $ 2,533 $ 2,951
Foreign currency translation adjustments:      
Unrealized foreign currency translation gains (losses) during period - parent only 283 360 (1,455)
Unrealized gains (losses) on investment securities:      
Unrealized holding gains (losses) on investment securities during period - parent only 2,852 (2,534) 5,947
Pension liability adjustment during period (45) (20) (76)
Total other comprehensive income (loss) before income taxes 3,040 (2,255) 4,345
Income tax expense (benefit) related to items of other comprehensive income (loss) 1,035 (901) 1,803
Other comprehensive income (loss), net of income taxes 2,005 (1,354) 2,542
Total comprehensive income (loss) 4,664 1,179 5,493
Parent Company      
Condensed Financial Statements, Captions [Line Items]      
Net earnings 2,659 2,533 2,951
Foreign currency translation adjustments:      
Unrealized foreign currency translation gains (losses) during period - parent only 0 3 39
Equity in unrealized foreign currency translation gains (losses) of subsidiaries during period 283 357 (1,494)
Unrealized gains (losses) on investment securities:      
Unrealized holding gains (losses) on investment securities during period - parent only 2 (8) 9
Equity in unrealized holding gains (losses) on investment securities held by subsidiaries during period 2,850 (2,526) 5,938
Equity in reclassification adjustment for realized (gains) losses of subsidiaries included in net earnings (53) (61) (54)
Unrealized gains (losses) on derivatives during period 3 0 (17)
Pension liability adjustment during period (45) (20) (76)
Total other comprehensive income (loss) before income taxes 3,040 (2,255) 4,345
Income tax expense (benefit) related to items of other comprehensive income (loss) 1,035 (901) 1,803
Other comprehensive income (loss), net of income taxes 2,005 (1,354) 2,542
Total comprehensive income (loss) $ 4,664 $ 1,179 $ 5,493
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Condensed Balance Sheet (Detail 1) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Investments and cash:        
Other investments $ 1,450 [1] $ 294    
Cash and cash equivalents 4,859 4,350 $ 4,658 $ 2,543
Total investments and cash 116,361 105,897    
Other assets [2] 2,609 1,948    
Total assets 129,819 118,256 119,727  
Liabilities:        
Notes payable 5,339 4,951    
Other liabilities [3] 4,338 2,665    
Total liabilities 109,337 100,548    
Shareholders' equity:        
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 67 67    
Additional paid-in capital 1,976 1,828    
Retained earnings 25,981 24,007    
Accumulated other comprehensive income (loss):        
Unrealized foreign currency translation gains (losses) (1,983) (2,196)    
Unrealized gains (losses) on investment securities 4,805 2,986    
Unrealized gains (losses) on derivatives (24) (26)    
Pension liability adjustment (168) (139)    
Treasury stock, at average cost (10,172) (8,819)    
Total shareholders' equity 20,482 17,708 18,347  
Total liabilities and shareholders' equity 129,819 118,256    
Parent Company        
Investments and cash:        
Fixed maturity securities available for sale, at fair value (amortized cost $483 in 2016 and $481 in 2015) 496 493    
Investments in subsidiaries [4] 23,353 20,500    
Other investments 3 9    
Cash and cash equivalents 2,037 1,721 $ 1,638 $ 1,081
Total investments and cash 25,889 22,723    
Due from subsidiaries [4] 75 113    
Income taxes receivable 103 0    
Other assets 497 542    
Total assets 26,564 23,378    
Liabilities:        
Income taxes 0 8    
Employee benefit plans 293 274    
Notes payable 5,339 4,968    
Other liabilities 450 420    
Total liabilities 6,082 5,670    
Shareholders' equity:        
Common stock of $.10 par value. In thousands: authorized 1,900,000 shares in 2016 and 2015; issued 671,249 shares in 2016 and 669,723 shares in 2015 67 67    
Additional paid-in capital 1,976 1,828    
Retained earnings 25,981 24,007    
Accumulated other comprehensive income (loss):        
Unrealized foreign currency translation gains (losses) (1,983) (2,196)    
Unrealized gains (losses) on investment securities 4,805 2,986    
Unrealized gains (losses) on derivatives (24) (26)    
Pension liability adjustment (168) (139)    
Treasury stock, at average cost (10,172) (8,819)    
Total shareholders' equity 20,482 17,708    
Total liabilities and shareholders' equity $ 26,564 $ 23,378    
[1] Includes $819 in 2016 of loan receivables from consolidated variable interest entities
[2] Includes $127 in 2016 and $102 in 2015 of derivatives from consolidated variable interest entities
[3] Includes $146 in 2016 and $293 in 2015 of derivatives from consolidated variable interest entities
[4] Eliminated in consolidation
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Condensed Balance Sheet (Detail 2) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Condensed Financial Statements, Captions [Line Items]        
Common stock, par value (in dollars per share) $ 0.10 $ 0.10    
Common stock, shares authorized (in shares) 1,900,000 1,900,000    
Common stock, shares issued (in shares) 671,249 669,723 668,132 667,046
Parent Company        
Condensed Financial Statements, Captions [Line Items]        
Securities available for sale, fixed maturities, amortized cost $ 483 $ 481    
Common stock, par value (in dollars per share) $ 0.10 $ 0.10    
Common stock, shares authorized (in shares) 1,900,000 1,900,000    
Common stock, shares issued (in shares) 671,249 669,723    
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Condensed Statements of Cash Flows (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:      
Net earnings $ 2,659 $ 2,533 $ 2,951
Adjustments to reconcile net earnings to net cash provided from operating activities:      
Change in income tax liabilities (93) (36) 123
Other, net 231 [1] 989 [1] 309
Net cash provided (used) by operating activities 5,987 6,776 6,550
Cash flows from investing activities:      
Fixed maturity securities sold 5,157 3,224 4,178
Fixed maturity securities purchased (10,890) (6,507) (10,978)
Other investments sold (purchased) (1,118) (70) 272
Settlement of derivatives 1,252 (2,119) (636)
Payments for (Proceeds from) Other Investing Activities (76) (86) 30
Net cash provided (used) by investing activities (3,855) (4,897) (4,241)
Cash flows from financing activities:      
Purchases of treasury stock (1,422) (1,315) (1,210)
Proceeds from borrowings 986 998 750
Principal payments under debt obligations (610) (1,272) (335)
Dividends paid to shareholders (658) (656) (654)
Treasury stock reissued 46 36 33
Other, net (120) [1] (234) [1] 16
Net cash provided (used) by financing activities (1,619) (2,187) (147)
Net change in cash and cash equivalents 509 (308) 2,115
Cash and cash equivalents, beginning of period 4,350 4,658 2,543
Cash and cash equivalents, end of period 4,859 4,350 4,658
Parent Company      
Cash flows from operating activities:      
Net earnings 2,659 2,533 2,951
Adjustments to reconcile net earnings to net cash provided from operating activities:      
Equity in undistributed earnings of subsidiaries [2] (814) (291) (1,281)
Change in income tax liabilities (112) 6 115
Other, net 406 [3] 149 [3] (72)
Net cash provided (used) by operating activities 2,139 2,397 1,713
Cash flows from investing activities:      
Fixed maturity securities sold 225 121 38
Fixed maturity securities purchased (229) (202) (105)
Other investments sold (purchased) 6 14 291
Settlement of derivatives 0 147 (1)
Additional capitalization of subsidiaries [2] (36) (43) 0
Payments for (Proceeds from) Other Investing Activities (25) 0 0
Net cash provided (used) by investing activities (59) 37 223
Cash flows from financing activities:      
Purchases of treasury stock (1,422) (1,315) (1,210)
Proceeds from borrowings 986 998 750
Principal payments under debt obligations (621) (1,272) (335)
Dividends paid to shareholders (658) (656) (654)
Treasury stock reissued 46 36 33
Proceeds from exercise of stock options 36 47 23
Net change in amount due to/from subsidiary [2] (6) 43 14
Other, net (125) [3] (232) [3] 0
Net cash provided (used) by financing activities (1,764) (2,351) (1,379)
Net change in cash and cash equivalents 316 83 557
Cash and cash equivalents, beginning of period 1,721 1,638 1,081
Cash and cash equivalents, end of period 2,037 1,721 $ 1,638
Senior Notes due 2039 and 2040      
Condensed Cash Flow Statements, Captions [Line Items]      
Expense on extinguishment of debt $ 137    
8.50% senior notes due May 2019      
Condensed Cash Flow Statements, Captions [Line Items]      
Expense on extinguishment of debt   $ 230  
[1] Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
[2] Eliminated in consolidation
[3] Operating activities excludes and financing activities includes a cash outflow of $137 in 2016 and $230 in 2015 for the payments associated with the early extinguishment of debt
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Summary of Notes Payable (Detail 1) - USD ($)
$ in Millions
Dec. 31, 2016
Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]    
Notes payable $ 5,339 $ 4,951
Parent Company    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 5,339 4,968
Parent Company | 2.65% senior notes due February 2017    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 649 651
Parent Company | 2.40% senior notes due March 2020    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 547 546
Parent Company | 4.00% senior notes due February 2022    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 348 348
Parent Company | 3.625% senior notes due June 2023    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 696 696
Parent Company | 3.625% senior notes due November 2024    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 745 744
Parent Company | 3.25% senior notes due March 2025    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 445 445
Parent Company | 2.875% senior notes due October 2026    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 298 0
Parent Company | 6.90% senior notes due December 2039    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 220 393
Parent Company | 6.45% senior notes due August 2040    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 254 445
Parent Company | 4.00% senior notes due October 2046    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 394 0
Parent Company | 5.50% subordinated notes due September 2052    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 486 486
Parent Company | 2.26% yen-denominated Uridashi notes paid September 2016    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 0 83
Parent Company | 1.84% yen-denominated Samurai notes paid July 2016    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 0 131
Parent Company | Yen-denominated loan variable interest rate due September 2021    
Condensed Financial Statements, Captions [Line Items]    
Notes payable 43 0
Parent Company | Yen-denominated loan variable interest rate due September 2023    
Condensed Financial Statements, Captions [Line Items]    
Notes payable $ 214 $ 0
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Summary of Notes Payable (Detail 2)
$ in Millions, ¥ in Billions
Dec. 31, 2016
USD ($)
Dec. 31, 2016
JPY (¥)
Sep. 30, 2016
USD ($)
Sep. 30, 2016
JPY (¥)
Jul. 31, 2016
Dec. 31, 2015
USD ($)
Dec. 31, 2015
JPY (¥)
Mar. 31, 2015
USD ($)
Nov. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Oct. 31, 2012
USD ($)
Sep. 30, 2012
USD ($)
Jul. 31, 2012
USD ($)
Feb. 29, 2012
USD ($)
Aug. 31, 2010
USD ($)
Dec. 31, 2009
USD ($)
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 5,339         $ 4,951                    
2.65% senior notes due February 2017                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 2.65% 2.65%       2.65% 2.65%           2.65% 2.65%    
Debt instrument, principal amount $ 400                       $ 250 $ 400    
2.40% senior notes due March 2020                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 2.40% 2.40%       2.40% 2.40% 2.40%                
Debt instrument, principal amount $ 550             $ 550                
4.00% senior notes due February 2022                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 4.00% 4.00%       4.00% 4.00%             4.00%    
Debt instrument, principal amount $ 350                         $ 350    
3.625% senior notes due June 2023                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%     3.625%            
Debt instrument, principal amount $ 700                 $ 700            
3.625% senior notes due November 2024                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%   3.625%              
Debt instrument, principal amount $ 750               $ 750              
3.25% senior notes due March 2025                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 3.25% 3.25%       3.25% 3.25% 3.25%                
Debt instrument, principal amount $ 450             $ 450                
2.875% senior notes due October 2026                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 2.875% 2.875% 2.875% 2.875%                        
Debt instrument, principal amount     $ 300                          
6.90% senior notes due December 2039                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 6.90% 6.90%       6.90% 6.90%                  
Debt instrument, principal amount                               $ 400
6.45% senior notes due August 2040                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 6.45% 6.45%       6.45% 6.45%                  
Debt instrument, principal amount                             $ 450  
4.00% senior notes due October 2046                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 4.00% 4.00% 4.00% 4.00%                        
Debt instrument, principal amount     $ 400                          
5.50% subordinated notes due September 2052                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 5.50% 5.50%       5.50% 5.50%       5.50% 5.50%        
Debt instrument, principal amount $ 500                   $ 50 $ 450        
2.26% yen-denominated Uridashi notes paid September 2016                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate     2.26% 2.26%   2.26% 2.26%                  
Debt instrument, principal amount | ¥             ¥ 8.0                  
1.84% yen-denominated Samurai notes paid July 2016                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate         1.84% 1.84% 1.84%                  
Debt instrument, principal amount | ¥             ¥ 15.8                  
Yen-denominated loan variable interest rate due September 2021                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 0.31% 0.31%                            
Debt instrument, principal amount | ¥   ¥ 5.0   ¥ 5.0                        
Yen-denominated loan variable interest rate due September 2023                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 0.46% 0.46%                            
Debt instrument, principal amount | ¥   ¥ 25.0   ¥ 25.0                        
Parent Company                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 5,339         $ 4,968                    
Parent Company | 2.65% senior notes due February 2017                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 649         $ 651                    
Debt instrument, interest rate 2.65% 2.65%       2.65% 2.65%                  
Parent Company | 2.40% senior notes due March 2020                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 547         $ 546                    
Debt instrument, interest rate 2.40% 2.40%       2.40% 2.40%                  
Parent Company | 4.00% senior notes due February 2022                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 348         $ 348                    
Debt instrument, interest rate 4.00% 4.00%       4.00% 4.00%                  
Parent Company | 3.625% senior notes due June 2023                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 696         $ 696                    
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%                  
Parent Company | 3.625% senior notes due November 2024                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 745         $ 744                    
Debt instrument, interest rate 3.625% 3.625%       3.625% 3.625%                  
Parent Company | 3.25% senior notes due March 2025                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 445         $ 445                    
Debt instrument, interest rate 3.25% 3.25%       3.25% 3.25%                  
Parent Company | 2.875% senior notes due October 2026                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 298         $ 0                    
Debt instrument, interest rate 2.875% 2.875%                            
Parent Company | 6.90% senior notes due December 2039                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 220         $ 393                    
Debt instrument, interest rate 6.90% 6.90%       6.90% 6.90%                  
Parent Company | 6.45% senior notes due August 2040                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 254         $ 445                    
Debt instrument, interest rate 6.45% 6.45%       6.45% 6.45%                  
Parent Company | 4.00% senior notes due October 2046                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 394         $ 0                    
Debt instrument, interest rate 4.00% 4.00%                            
Parent Company | 5.50% subordinated notes due September 2052                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 486         $ 486                    
Debt instrument, interest rate 5.50% 5.50%       5.50% 5.50%                  
Parent Company | 2.26% yen-denominated Uridashi notes paid September 2016                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 0         $ 83                    
Debt instrument, interest rate           2.26% 2.26%                  
Debt instrument, principal amount | ¥             ¥ 10.0                  
Parent Company | 1.84% yen-denominated Samurai notes paid July 2016                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable 0         $ 131                    
Debt instrument, interest rate           1.84% 1.84%                  
Debt instrument, principal amount | ¥             ¥ 15.8                  
Parent Company | Yen-denominated loan variable interest rate due September 2021                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 43         $ 0                    
Debt instrument, interest rate 0.31% 0.31%                            
Debt instrument, principal amount | ¥   ¥ 5.0                            
Parent Company | Yen-denominated loan variable interest rate due September 2023                                
Condensed Financial Statements, Captions [Line Items]                                
Notes payable $ 214         $ 0                    
Parent Company | Yen Denominated Loan Three Point Zero Zero Percent Due August Twenty Fifteen [Member]                                
Condensed Financial Statements, Captions [Line Items]                                
Debt instrument, interest rate 0.46% 0.46%                            
Debt instrument, principal amount | ¥   ¥ 25.0                            
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Additional Information (Detail)
¥ in Billions
 12 Months Ended
Dec. 31, 2016
JPY (¥)
Parent Company | Yen Denominated Uridashi and Samurai Notes  
Condensed Financial Statements, Captions [Line Items]  
Extinguishment of notes ¥ 2.0
v3.6.0.2
Schedule II - Aflac Incorporated - Aggregate Contractual Maturities of Notes Payable (Detail)
$ in Millions
Dec. 31, 2016
USD ($)
Condensed Financial Statements, Captions [Line Items]  
2017 $ 656
2018 6
2019 5
2020 552
2021 44
Thereafter 4,146
Total 5,409
Parent Company  
Condensed Financial Statements, Captions [Line Items]  
2017 650
2018 0
2019 0
2020 550
2021 43
Thereafter 4,145
Total $ 5,388
v3.6.0.2
Schedule II - Aflac Incorporated (Parent Only) - Supplemental Disclosure of Cash Flow Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed Cash Flow Statements, Captions [Line Items]      
Interest paid $ 211 $ 236 $ 241
Shareholder dividend reinvestment      
Condensed Cash Flow Statements, Captions [Line Items]      
Treasury stock issued for shareholder dividend reinvestment 27 26 26
Parent Company      
Condensed Cash Flow Statements, Captions [Line Items]      
Interest paid 209 235 241
Parent Company | Shareholder dividend reinvestment      
Condensed Cash Flow Statements, Captions [Line Items]      
Treasury stock issued for shareholder dividend reinvestment $ 26 $ 26 $ 26
v3.6.0.2
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION - (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Supplementary Insurance Information, by Segment [Line Items]                      
Deferred policy acquisition costs $ 8,993       $ 8,511       $ 8,993 $ 8,511  
Future Policy Benefits & Unpaid Policy Claims 80,151       73,489       80,151 73,489  
Unearned premiums 6,916       7,857       6,916 7,857  
Other policyholders' funds 6,659       6,285       6,659 6,285  
Premiums Earned, Net 4,778 $ 5,022 $ 4,823 $ 4,602 4,394 $ 4,380 $ 4,364 $ 4,432 19,225 17,570 $ 19,072
Net investment income 813 $ 842 $ 822 $ 801 792 $ 784 $ 777 $ 782 3,278 3,135 3,319
Benefits and claims, net                 12,919 11,746 12,937
Amortization of deferred policy acquisition costs                 1,141 1,066 1,108
Other operating Expenses                 4,432 4,198 4,192
Premiums written                 18,214 17,083 18,550
Aflac Japan                      
Supplementary Insurance Information, by Segment [Line Items]                      
Deferred policy acquisition costs 5,765       5,370       5,765 5,370 5,211
Future Policy Benefits & Unpaid Policy Claims 70,684       64,437       70,684 64,437  
Unearned premiums 6,798       7,739       6,798 7,739  
Other policyholders' funds 6,659       6,285       6,659 6,285  
Premiums Earned, Net                 13,537 12,046 13,861
Net investment income                 2,554 2,436 2,662
Benefits and claims, net                 9,828 8,705 10,084
Amortization of deferred policy acquisition costs                 644 578 649
Other operating Expenses                 2,326 2,055 2,364
Premiums written                 12,762 11,740 13,352
Aflac U.S.                      
Supplementary Insurance Information, by Segment [Line Items]                      
Deferred policy acquisition costs 3,228       3,141       3,228 3,141 3,062
Future Policy Benefits & Unpaid Policy Claims 10,094       9,696       10,094 9,696  
Unearned premiums 118       118       118 118  
Other policyholders' funds 0       0       0 0  
Premiums Earned, Net                 5,454 5,347 5,211
Net investment income                 703 678 645
Benefits and claims, net                 2,869 2,873 2,853
Amortization of deferred policy acquisition costs                 497 488 459
Other operating Expenses                 1,593 1,570 1,474
Premiums written                 5,452 5,343 5,198
All other                      
Supplementary Insurance Information, by Segment [Line Items]                      
Deferred policy acquisition costs 0       0       0 0  
Future Policy Benefits & Unpaid Policy Claims 91       43       91 43  
Unearned premiums 0       0       0 0  
Other policyholders' funds 0       0       0 0  
Premiums Earned, Net                 234 177 0
Net investment income                 21 21 12
Benefits and claims, net                 222 168 0
Amortization of deferred policy acquisition costs                 0 0 0
Other operating Expenses                 513 573 354
Premiums written                 0 0 $ 0
Intercompany eliminations                      
Supplementary Insurance Information, by Segment [Line Items]                      
Deferred policy acquisition costs 0       0       0 0  
Future Policy Benefits & Unpaid Policy Claims (718)       (687)       (718) (687)  
Unearned premiums 0       0       0 0  
Other policyholders' funds $ 0       $ 0       $ 0 $ 0  
v3.6.0.2
SCHEDULE IV REINSURANCE Schedule IV - Reinsurance (Detail) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]                      
Gross Amount, Life Insurance in Force $ 151,093       $ 146,610       $ 151,093 $ 146,610 $ 144,374
Ceded to Other Companies, Life Insurance in Force 3,741       3,547       3,741 3,547 3,298
Assumed from Other Companies, Life Insurance in Force 0       0       0 0 0
Net Amount, Life Insurance in Force $ 147,352       $ 143,063       $ 147,352 $ 143,063 $ 141,076
Percentage of Amount Assumed to Net, Life Insurance in Force 0.00%       0.00%       0.00% 0.00% 0.00%
Gross amount                 $ 19,592 $ 17,904 $ 19,412
Ceded to Other Companies                 608 520 350
Assumed from Other companies                 241 186 10
Net Amount $ 4,778 $ 5,022 $ 4,823 $ 4,602 $ 4,394 $ 4,380 $ 4,364 $ 4,432 $ 19,225 $ 17,570 $ 19,072
Percentage of Amount Assumed to Net                 1.00% 1.00% 0.00%
Health insurance                      
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]                      
Gross amount                 $ 14,839 $ 13,604 $ 14,648
Ceded to Other Companies                 595 509 339
Assumed from Other companies                 241 186 10
Net Amount                 $ 14,485 $ 13,281 $ 14,319
Percentage of Amount Assumed to Net                 1.00% 1.00% 0.00%
Life insurance                      
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items]                      
Gross amount                 $ 4,753 $ 4,300 $ 4,764
Ceded to Other Companies                 13 11 11
Assumed from Other companies                 0 0 0
Net Amount                 $ 4,740 $ 4,289 $ 4,753
Percentage of Amount Assumed to Net                 0.00% 0.00% 0.00%