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functions for the Japan branch. The third campus comprises leased space for the information technology departments.

Aflac also leases additional office space in Tokyo, along with regional offices located throughout the country.

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ITEM 3. LEGAL PROCEEDINGS

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.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.