102 / 188
(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)
100