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are terminated pursuant to an event of default, as such term is defined in the credit agreement. The credit facility requires
compliance with certain financial covenants on a quarterly basis. As of December 31, 2016, we did not have any
borrowings outstanding under our 100.0 billion yen revolving credit agreement.
The Parent Company and Aflac have a five-year senior unsecured revolving credit facility agreement with a syndicate
of financial institutions that provides for borrowings of up to 55.0 billion yen or the equivalent of yen in U.S. dollars on a
revolving basis. This credit agreement provides for borrowings in Japanese yen or the equivalent of Japanese yen in U.S.
dollars on a revolving basis. Borrowings bear interest at a rate per annum equal to, at our option, either (a) a eurocurrency
rate determined by reference to the London Interbank Offered Rate (LIBOR) for the interest period relevant to such
borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the federal
funds effective rate plus ½ of 1%, (2) the rate of interest for such day announced by Mizuho Bank, Ltd. as its prime rate
and (3) the eurocurrency rate for an interest period of one month plus 1.00%, in each case plus an applicable margin.
The applicable margin ranges between .79% and 1.275% for eurocurrency rate borrowings and 0.0% and .275% for base
rate borrowings, depending on the Parent Company’s debt ratings as of the date of determination. In addition, the Parent
Company and Aflac are required to pay a facility fee on the commitments ranging between .085% and .225%, also based
on the Parent Company’s debt ratings as of the date of determination. Borrowings under the amended and restated credit
facility may be used for general corporate purposes, including a capital contingency plan for the operations of the Parent
Company and Aflac. The amended and restated credit facility requires compliance with certain financial covenants on a
quarterly basis and will expire on the earlier of (a) September 18, 2020, or (b) the date the commitments are terminated
pursuant to an event of default, as such term is defined in the credit agreement. As of December 31, 2016, we did not
have any borrowings outstanding under our 55.0 billion yen revolving credit agreement.
The Parent Company and Aflac have an uncommitted bilateral line of credit with a third party that provides for
borrowings in the amount of $50 million. Borrowings will bear interest at the rate quoted by the bank and agreed upon at
the time of making such loan and will have up to a three-month maturity period. There are no related facility fees, upfront
expenses or financial covenant requirements. Borrowings under this credit agreement may be used for general corporate
purposes. As of December 31, 2016, we did not have any borrowings outstanding under our $50 million credit agreement.
Our financial statements convey our financing arrangements during the periods presented. We have not engaged in
material intra-period short-term financings during the periods presented that are not otherwise reported in our balance
sheet. We were in compliance with all of the covenants of our notes payable and lines of credit at December 31, 2016. We
have not entered into transactions involving the transfer of financial assets with an obligation to repurchase financial
assets that have been accounted for as a sale under applicable accounting standards, including securities lending
transactions. See Notes 1, 3, and 4 of the Notes to the Consolidated Financial Statements for more information on our
securities lending and derivative activities. With the exception of disclosed activities in those referenced footnotes, we do
not have a known trend, demand, commitment, event or uncertainty that would reasonably result in our liquidity increasing
or decreasing by a material amount. Our cash and cash equivalents include unrestricted cash on hand, money market
instruments, and other debt instruments with a maturity of 90 days or less when purchased, all of which has minimal
market, settlement or other risk exposure.
The following table presents the estimated payments by period of our major contractual obligations as of
December 31, 2016. We translated our yen-denominated obligations using the December 31, 2016, exchange rate.
Actual future payments as reported in dollars will fluctuate with changes in the yen/dollar exchange rate.
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