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Aflac Incorporated and Subsidiaries
Consolidated 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 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
Cash flows from investing activities:
Proceeds from investments sold or matured:
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:
Capital lease obligations
1
6
9
Treasury stock issued for:
Associate stock bonus
30
35
35
Shareholder dividend reinvestment
27
26
26
Share-based compensation grants
4
3
4
(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
See the accompanying Notes to the Consolidated Financial Statements.
85