NOTES PAYABLE AND LEASE OBLIGATIONS

9 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

NOTES PAYABLE AND LEASE OBLIGATIONS

NOTES PAYABLE AND LEASE OBLIGATIONS

A summary of notes payable and lease obligations follows:

(In millions)	September 30, 2025			December 31, 2024
1.125% senior sustainability notes due March 2026		$	399		$	399
2.875% senior notes due October 2026		299			299
3.60% senior notes due April 2030		995			994
6.90% senior notes due December 2039		221			221
6.45% senior notes due August 2040		255			255
4.00% senior notes due October 2046		394			394
4.750% senior notes due January 2049		542			542
Yen-denominated senior notes and subordinated debentures:
.300% senior notes paid September 2025 (principal amount ¥12.4 billion)		0			79
.932% senior notes due January 2027 (principal amount ¥60.0 billion)		402			378
1.048% senior notes due March 2029 (principal amount ¥13.0 billion)		87			81
1.075% senior notes due September 2029 (principal amount ¥33.4 billion)		224			211
.500% senior notes due December 2029 (principal amount ¥12.6 billion)		84			79
.550% senior notes due March 2030 (principal amount ¥13.3 billion)		89			84
1.159% senior notes due October 2030 (principal amount ¥29.3 billion)		196			184
1.726% senior notes due October 2030 (principal amount ¥35.0 billion)		234			0
1.412% senior notes due March 2031 (principal amount ¥27.9 billion)		187			176
.633% senior notes due April 2031 (principal amount ¥30.0 billion)		201			189
.843% senior notes due December 2031 (principal amount ¥9.3 billion)		62			58
.750% senior notes due March 2032 (principal amount ¥20.7 billion)		138			130
1.990% senior notes due May 2032 (principal amount ¥18.2 billion)		122			0
1.320% senior notes due December 2032 (principal amount ¥21.1 billion)		141			133
2.003% senior notes due December 2032 (principal amount ¥23.4 billion)		157			0
.844% senior notes due April 2033 (principal amount ¥12.0 billion)		80			76
1.488% senior notes due October 2033 (principal amount ¥15.2 billion)		101			95
1.682% senior notes due March 2034 (principal amount ¥7.7 billion)		52			48
1.600% senior notes due March 2034 (principal amount ¥18.3 billion)		122			115
.934% senior notes due December 2034 (principal amount ¥9.8 billion)		65			62
.830% senior notes due March 2035 (principal amount ¥10.6 billion)		71			66
2.320% senior notes due May 2035 (principal amount ¥38.3 billion)		257			0
2.369% senior notes due June 2035 (principal amount ¥9.5 billion)		64			0
1.740% senior notes due March 2036 (principal amount ¥15.0 billion)		99			94
1.039% senior notes due April 2036 (principal amount ¥10.0 billion)		67			63
1.594% senior notes due September 2037 (principal amount ¥6.5 billion)		43			41
1.750% senior notes due October 2038 (principal amount ¥8.9 billion)		59			56
1.920% senior notes due March 2039 (principal amount ¥16.5 billion)		110			103
1.122% senior notes due December 2039 (principal amount ¥6.3 billion)		42			39
2.650% senior notes due May 2040 (principal amount ¥11.6 billion)		78			0
2.779% senior notes due June 2040 (principal amount ¥7.0 billion)		47			0
1.264% senior notes due April 2041 (principal amount ¥10.0 billion)		67			63
2.160% senior notes due March 2044 (principal amount ¥5.7 billion)		38			35
3.040% senior notes due May 2045 (principal amount ¥7.0 billion)		47			0
2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion)		399			375
1.560% senior notes due April 2051 (principal amount ¥20.0 billion)		133			125
2.144% senior notes due September 2052 (principal amount ¥12.0 billion)		80			75
1.958% subordinated bonds due December 2053 (principal amount ¥30.0 billion)		201			188
2.400% senior notes due March 2054 (principal amount ¥19.5 billion)		130			122
Yen-denominated loans:
Variable interest rate loan due August 2027 (1.05% in 2025 and .84% in 2024,   principal amount ¥11.7 billion)		78			74
Variable interest rate loan due August 2029 (1.15% in 2025 and .94% in 2024,   principal amount ¥25.3 billion)		170			160
Variable interest rate loan due August 2032 (1.30% in 2025 and 1.09% in 2024,   principal amount ¥70.0 billion)		469			441
Finance lease obligations payable through 2030		4			5
Operating lease obligations payable through 2049		83			91
Total notes payable and lease obligations		$	8,685		$	7,498

Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.

In September 2025, the Parent Company extinguished ¥12.4 billion of .300% senior notes upon their maturity.

In June 2025, the Parent Company issued four series of senior notes totaling ¥74.9 billion through a public debt offering under its U.S. shelf registration statement. The first series, which totaled ¥35.0 billion, bears interest at a fixed rate of 1.726% per annum, payable semi-annually, and will mature in October 2030. The second series, which totaled ¥23.4 billion, bears interest at a fixed rate of 2.003% per annum, payable semi-annually, and will mature in December 2032. The third series, which totaled ¥9.5 billion, bears interest at a fixed rate of 2.369% per annum, payable semi-annually, and will mature in June 2035. The fourth series, which totaled ¥7.0 billion, bears interest at a fixed rate of 2.779% per annum, payable semi-annually, and will mature in June 2040. These notes are redeemable at the Parent Company’s option at any time, in whole but not in part, upon the occurrence of certain changes affecting U.S. taxation, as specified in the indenture governing the terms of the issuance. In addition, the notes maturing in October 2030, December 2032, June 2035 and June 2040 are redeemable at the Parent Company's option, in whole or in part from time to time, on or after July 18, 2030, September 14, 2032, December 5, 2034, and December 5, 2039, respectively, at a redemption price equal to the aggregate principal amount of the applicable series to be redeemed plus accrued and unpaid interest on the principal amount to be redeemed to, but excluding, the date of redemption.

In May 2025, the Parent Company issued four series of senior notes totaling ¥75.1 billion through a private placement. The first series, which totaled ¥18.2 billion, bears interest at a fixed rate of 1.990% per annum, payable semi-annually, and will mature in May 2032. The second series, which totaled ¥38.3 billion, bears interest at a fixed rate of 2.320% per annum, payable semi-annually, and will mature in May 2035. The third series, which totaled ¥11.6 billion, bears interest at a fixed rate of 2.650% per annum, payable semi-annually, and will mature in May 2040. The fourth series, which totaled ¥7.0 billion, bears interest at a fixed rate of 3.040% per annum, payable semi-annually, and will mature in May 2045. These notes are redeemable at the Parent Company's option (i) in whole at any time or (ii) in part from time to time in an amount not less than 5% of the aggregate principal amount then outstanding of the notes to be redeemed.

Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $56 million and $49 million for the three-month periods and $157 million and $145 million for the nine-month periods ended September 30, 2025 and 2024, respectively.

Senior Note Facility Agreements

In August 2025, the Parent Company entered into two separate facility agreements: a 10-year facility agreement (2035 Facility Agreement) with a Delaware trust (2035 Trust) and a 30-year facility agreement (2055 Facility Agreement) with a Delaware trust (2055 Trust). In connection with these transactions, the trusts issued and sold pre-capitalized trust securities in private placements and invested the proceeds in a portfolio of principal and/or interest strips of U.S. Treasury securities (the Strips). These trusts are an off-balance sheet funding arrangement.

The 2035 Facility Agreement provides the Parent Company the right to issue and sell to the 2035 Trust from time to time up to $1.0 billion of 5.251% senior notes due August 2035 in exchange for a corresponding amount of the Strips held by the 2035 Trust. In return, the Parent Company agreed to pay a semi-annual facility fee to the 2035 Trust at a rate of 0.9875% per annum applied to the unexercised amount of senior notes that the Parent Company could issue and sell to the 2035 Trust.

The 2055 Facility Agreement provides the Parent Company the right to issue and sell to the 2055 Trust from time to time up to $1.0 billion of 5.991% senior notes due August 2055 in exchange for a corresponding amount of the Strips held by the 2055 Trust. In return, the Parent Company agreed to pay a semi-annual facility fee to the 2055 Trust at a rate of 1.1218% per annum applied to the unexercised amount of senior notes that the Parent Company could issue and sell to the 2055 Trust.

The Parent Company can redeem the senior notes at any time, in whole or in part, by returning the Strips to the trusts or by delivering cash at a redemption price equal to the greater of the principal amount or a make-whole redemption price, in each case plus accrued and unpaid interest to, but excluding, the date of redemption. As of September 30, 2025, the Parent Company had no senior note issuances under these facility agreements.

A summary of the Company's lines of credit as of September 30, 2025 follows:

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
Aflac Incorporated and Aflac	uncommitted bilateral	364 days	December 5, 2025	$100 million	$0 million	The rate quoted by the bank and agreed upon at the time of borrowing	Up to 3 months	None	General corporate purposes
Aflac Incorporated	unsecured revolving	5 years	May 13, 2030, or the date commitments are terminated pursuant to an event of default	¥100.0 billion	¥0.0 billion	A rate per annum equal to, at the Company's option, either (a) Tokyo Interbank Market Rate (TIBOR) plus an applicable margin or (b) an alternative TIBOR based on the rate offered by the agent to major banks in yen for the applicable period plus an applicable margin	No later than May 14, 2030	.28% to .45%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	unsecured revolving	5 years	November 15, 2027, or the date commitments are terminated pursuant to an event of default	$1.0 billion	$0.0 billion	A rate per annum equal to, at the Company's option, either, (a) Secured Overnight Financing Rate (SOFR) for U.S. dollar-denominated borrowings or TIBOR for Japanese yen-denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by the agent as its prime rate, or (3) SOFR for an interest period of one month plus 1.00%, in each case plus an applicable margin	No later than November 15, 2027	.08% to .20%, depending on the Parent Company's debt ratings as of the date of determination	General corporate purposes, including a capital contingency plan for the operations of the Parent Company
Aflac Incorporated and Aflac	uncommitted bilateral	None specified	None specified	$50 million	$0 million	A rate per annum equal to, at the Parent Company's option, either (a) a rate determined by reference to SOFR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (1) the lender's USD short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1%	Up to 3 months	None	General corporate purposes
Aflac(1)	uncommitted revolving	364 days	December 1, 2025	$250 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum	No later than December 2, 2025	None	General corporate purposes
Aflac Incorporated(1) (Tranche 1)	uncommitted revolving	364 days	November 25, 2025	¥50.0 billion	¥0.0 billion	Three-month yen TIBOR plus 75 basis points per annum	No later than November 26, 2025	None	General corporate purposes
Aflac Incorporated(1) (Tranche 2)	uncommitted revolving	364 days	November 25, 2025	¥50.0 billion	¥0.0 billion	Three-month yen TIBOR plus 75 basis points per annum	No later than November 26, 2025	None	General corporate purposes
Aflac New York(1)	uncommitted revolving	364 days	December 1, 2025	$25 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum	No later than December 2, 2025	None	General corporate purposes
CAIC(1)	uncommitted revolving	364 days	December 1, 2025	$15 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum	No later than December 2, 2025	None	General corporate purposes

(1) Intercompany credit agreement

(continued)

Borrower(s)	Type	Term	Expiration Date	Capacity	Amount Outstanding	Interest Rate on Borrowed Amount	Maturity Period	Commitment Fee	Business Purpose
TOIC(1)	uncommitted revolving	364 days	December 1, 2025	$0.3 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum	No later than December 2, 2025	None	General corporate purposes
Aflac GI Holdings LLC(1)	uncommitted revolving	364 days	December 1, 2025	$30 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum	No later than December 2, 2025	None	General corporate purposes
Aflac Incorporated(1)	uncommitted revolving	364 days	December 1, 2025	$400 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 97 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 97 basis points per annum for Japanese yen-denominated borrowings	No later than December 2, 2025	None	General corporate purposes
Aflac Re(1)	uncommitted revolving	364 days	December 1, 2025	$400 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings	No later than December 2, 2025	None	General corporate purposes
Aflac Asset Management LLC(1)	uncommitted revolving	364 days	December 1, 2025	$25 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings	No later than December 2, 2025	None	General corporate purposes
Aflac Global Ventures LLC(1)	uncommitted revolving	364 days	December 1, 2025	$2 million	$0 million	Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings	No later than December 2, 2025	None	General corporate purposes

(1) Intercompany credit agreement

The Company was in compliance with all of the covenants of its notes payable and lines of credit at September 30, 2025. No events of default or defaults occurred during the nine-month period ended September 30, 2025.

For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2024 Annual Report.