XML 63 R45.htm IDEA: XBRL DOCUMENT v3.25.0.1
BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2024
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Net Funded Status
Information with respect to the Company's benefit plans' assets and obligations as of December 31 was as follows:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202420232024202320242023
Projected benefit obligation:
      Benefit obligation, beginning of year$324 $327 $764 $843 $25 $32 
      Service cost14 14 0 7 0 0 
      Interest cost8 9 36 41 1 1 
      Actuarial (gain) loss(18)7 (7)37 2 (4)
      Benefits and expenses paid(16)(13)(32)(58)(5)(4)
      Curtailment (gain) loss0 0 0 (106)0 0 
      Settlement0 0 (177)0 0 0 
      Effect of foreign exchange
         rate changes		(30)(20)0 0 0 0 
               Benefit obligation, end of year282 324 584 764 23 25 
Plan assets:
      Fair value of plan assets,
         beginning of year		344 335 648 659 0 0 
      Actual return on plan assets27 17 (8)39 0 0 
      Employer contributions27 27 8 8 5 4 
      Benefits and expenses paid(16)(13)(32)(58)(5)(4)
      Settlement0 0 (177)0 0 0 
      Effect of foreign exchange
         rate changes		(37)(22)0 0 0 0 
               Fair value of plan assets,
                  end of year		345 344 439 648 0 0 
Funded status of the plans(1)
$63 $20 $(145)$(116)$(23)$(25)
Amounts recognized in accumulated other
    comprehensive income:
      Net actuarial (gain) loss$(10)$30 $1 $(13)$4 $2 
      Prior service (credit) cost0 0 (1)(2)0 0 
               Total included in accumulated
                  other comprehensive income		$(10)$30 $0 $(15)$4 $2 
Accumulated benefit obligation$184 $213 $584 $764 N/AN/A
(1) Underfunded amounts are recognized in other liabilities in the consolidated balance sheets and overfunded amounts are recognized in other assets in the consolidated balance sheets
Information for Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets
Pension Benefits
JapanU.S.
(In millions)2024202320242023
Accumulated benefit obligation $184 $213 $584 $764 
Fair value of plan assets345 344 439 648 
Information for Pension Plans with a Projected Benefit Obligation in Excess of Plan Assets
Information for Pension Plans with a Projected Benefit Obligation in Excess of Plan Assets
Pension Benefits
Japan (1)
U.S.(2)
(In millions)2024202320242023
Projected benefit obligation $282 $324 $584 $764 
Fair value of plan assets345 344 439 648 
(1) The net amount of projected benefit obligation and plan assets for the overfunded Japan pension plan was $63 and $20 at December 31, 2024 and 2023, respectively, and was classified as other assets on the statement of financial position.
(2) The net amount of projected benefit obligation and plan assets for the underfunded (including unfunded) U.S. pension plan was $145 and $116 at December 31, 2024 and 2023, respectively, and was classified as other liabilities on the statement of financial position.
Schedule of Assumptions Used
Pension BenefitsOther
JapanU.S.Postretirement Benefits
202420232022202420232022202420232022
Weighted-average
  actuarial assumptions:		                    
Discount rate - net periodic
  benefit cost		1.84 %1.95 %.94 %5.33 %
(1)
5.24 %
(2)
2.94 %5.04 %5.28 %2.94 %
Discount rate - benefit
  obligations		2.31 1.84 1.95 5.60 5.04 5.28   5.60 5.04 5.28   
Expected long-term return
  on plan assets		2.00 2.00 2.00 4.75 4.75 5.50 N/AN/AN/A
Rate of compensation
  increase		5.90 N/AN/AN/A 4.00 4.00 N/AN/AN/A
Health care cost trend ratesN/AN/AN/AN/AN/AN/A6.30 
(3)
6.80 
(3)
6.50 
(3)
(1) An interim valuation was required due to the U.S. pension plan settlement. The rate shown is the rate used on the interim valuation date of November 1, 2024.
(2) An interim valuation was required due to the U.S. pension plan curtailment. The rate shown is the rate used on the interim valuation date of June 12, 2023.
(3) For the years 2024, 2023 and 2022, the health care cost trend rates are expected to trend down to 3.7% in 49 years, 3.7% in 50 years, and 3.7% in 51 years, respectively.
Schedule of Net Benefit Costs Total net periodic benefit cost includes the following components:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202420232022202420232022202420232022
Service cost$14 $14 $19 $0 $7 $26 $0 $0 $0 
Interest cost8 9 5 36 41 34 1 1 1 
Expected return on
  plan assets		(7)(7)(8)(30)(34)(42)0 0 0 
Amortization of net
  actuarial (gain) loss		0 0 1 (1)(2)21 0 2 2 
Amortization of prior
  service cost (credit)		0 0 0 (1)0 0 0 0 0 
Curtailment (gain) loss0 0 0 0 (49)0 0 0 0 
Settlement (gain) loss0 0 0 18 0 0 0 0 0 
Net periodic benefit
  cost (credit)		$15 $16 $17 $22 $(37)$39 $1 $3 $3 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The following table summarizes the amounts recognized in other comprehensive loss (income) for the years ended December 31:
Pension BenefitsOther
JapanU.S.Postretirement Benefits
(In millions)202420232022202420232022202420232022
Net actuarial (gain) loss$(40)$(5)$(14)$31 $31 $(127)$2 $(4)$0 
Amortization of net
  actuarial gain (loss)
0 0 (1)1 2 (21)0 (2)(2)
Amortization of prior
  service cost 		0 0 0 1 0 0 0 0 0 
Curtailment (gain) loss0 0 0 0 (57)0 0 0 0 
Settlement (gain) loss0 0 0 (18)0 0 0 0 0 
Total$(40)$(5)$(15)$15 $(24)$(148)$2 $(6)$(2)
Schedule of Expected Benefit Payments
The following table provides expected benefit payments, which reflect expected future service, as appropriate.
Pension BenefitsOther
(In millions)JapanU.S.Postretirement Benefits
2025$16 $37 $4 
202610 37 4 
202711 43 3 
202811 42 2 
202912 42 2 
2030-203472 212 3 
Schedule of Allocation of Plan Assets Asset allocation targets as of December 31, 2024 were as follows:
Japan
Pension		U.S.
Pension
Domestic equities8 %0 %
International equities10 0 
Fixed income securities45 99 
Other37 1 
     Total100 %100 %
Fair Value, Assets Measured on Recurring Basis
The following tables present the fair value of Aflac Japan's pension plan assets that are measured at fair value on a recurring basis as of December 31.
  2024
(In millions)Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Fair
Value
Japan pension plan assets:
Equities:
Japanese equity securities$0 $29 $0 $29 
International equity securities0 36 0 36 
Fixed income securities:
Japanese bonds0 0 0 0 
International bonds0 154 0 154 
Insurance contracts0 64 0 64 
Alternative investments0 0 62 62 
Cash and cash equivalents0 0 0 0 
Total $0 $283 $62 $345 
  2023
(In millions)Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Fair
Value
Japan pension plan assets:
Equities:
Japanese equity securities$0 $21 $0 $21 
International equity securities0 38 0 38 
Fixed income securities:
Japanese bonds0 22 0 22 
International bonds0 194 0 194 
Insurance contracts0 26 0 26 
Alternative investments0 0 16 16 
Cash and cash equivalents27 0 0 27 
Total $27 $301 $16 $344 

The following table presents the fair value of Aflac U.S.'s pension plan assets that are measured at fair value on a recurring basis as of December 31. All of these assets are classified as Level 1 in the fair value hierarchy.
(In millions)20242023
U.S. pension plan assets:
Mutual funds:
Fixed income bond funds435 $648 
Cash and cash equivalents4 0 
Total$439 $648 
Schedule of Changes in Fair Value of Plan Assets
The following table presents the changes in fair value of Aflac Japan's pension plan assets that are classified as Level 3 for the years ended December 31.
(In millions)20242023
Alternative investments:
Balance, beginning of period$16 $0 
Actual return on plan assets:
Relating to assets still held at the reporting date2 0 
Relating to assets sold during the period0 0 
Purchases, sales and settlements44 16 
Transfers in and/or out of Level 30 0 
Balance, end of period$62 $16