Aflac’s 2016 10-K

For further information regarding notes payable, see Note 9 of the Notes to the Consolidated Financial Statements.

177

(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