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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.
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3. 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