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Component: (Network and Table)
Network
2310301 - Disclosure - INCOME TAXES (Tables)
(http://www.aflac.com/role/IncomeTaxesTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Income Tax Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Income Tax Disclosure [Abstract]
 
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax expense (benefit) applicable to pretax earnings for the years ended December 31 were as follows:
(In millions)
Foreign
 
U.S.
 
Total
2016:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
650

 
 
 
$
234

 
 
 
$
884

 
Deferred
 
136

 
 
 
388

 
 
 
524

 
Total income tax expense
 
$
786

 
 
 
$
622

 
 
 
$
1,408

 
2015:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
1,063

 
 
 
$
225

 
 
 
$
1,288

 
Deferred
 
42

 
 
 
(1
)
 
 
 
41

 
Total income tax expense
 
$
1,105

 
 
 
$
224

 
 
 
$
1,329

 
2014:
 
 
 
 
 
 
 
 
 
 
 
Current
 
$
995

 
 
 
$
84

 
 
 
$
1,079

 
Deferred
 
125

 
 
 
336

 
 
 
461

 
Total income tax expense
 
$
1,120

 
 
 
$
420

 
 
 
$
1,540

 
 
 
Schedule of Effective Income Tax Rate Reconciliation
The principal reasons for the differences and the related tax effects for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Income taxes based on U.S. statutory rates
 
$
1,424

 
 
 
$
1,352

 
 
 
$
1,572

 
Utilization of foreign tax credit
 
(30
)
 
 
 
(27
)
 
 
 
(32
)
 
Nondeductible expenses
 
8

 
 
 
3

 
 
 
5

 
Other, net
 
6

 
 
 
1

 
 
 
(5
)
 
Income tax expense
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 
 
 
Schedule of Income Tax Expense Benefit Intraperiod Tax Allocation
Total income tax expense for the years ended December 31 was allocated as follows:
(In millions)
2016
 
2015
 
2014
Statements of earnings
 
$
1,408

 
 
 
$
1,329

 
 
 
$
1,540

 
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation gains (losses) during period
 
70

 
 
 
16

 
 
 
(419
)
 
Unrealized gains (losses) on investment securities:
 
 
 
 
 
 
 
 
 
 
 
Unrealized holding gains (losses) on investment
securities during period
 
962

 
 
 
(931
)
 
 
 
2,237

 
Reclassification adjustment for realized (gains) losses
on investment securities included in net earnings
 
18

 
 
 
21

 
 
 
19

 
Unrealized gains (losses) on derivatives during period
 
1

 
 
 
0

 
 
 
(3
)
 
Pension liability adjustment during period
 
(16
)
 
 
 
(7
)
 
 
 
(31
)
 
Total income tax expense (benefit) related to items of
other comprehensive income (loss)
 
1,035

 
 
 
(901
)
 
 
 
1,803

 
Additional paid-in capital (exercise of stock options)
 
(10
)
 
 
 
4

 
 
 
(7
)
 
Total income taxes
 
$
2,433

 
 
 
$
432

 
 
 
$
3,336

 
 
 
Schedule of Deferred Tax Assets and Liabilities
The income tax effects of the temporary differences that gave rise to deferred income tax assets and liabilities as of December 31 were as follows:
(In millions)
2016
 
2015
Deferred income tax liabilities:
 
 
 
 
 
 
 
Deferred policy acquisition costs
 
$
2,439

 
 
 
$
2,282

 
Unrealized gains on investment securities
 
2,636

 
 
 
1,684

 
Premiums receivable
 
111

 
 
 
139

 
Policy benefit reserves
 
1,638

 
 
 
1,313

 
Depreciation
 
70


 
 
61

 
Other
 
0


 
 
0

 
Total deferred income tax liabilities
 
6,894

 
 
 
5,479

 
Deferred income tax assets:
 
 
 
 
 
 
 
Other basis differences in investment securities
 
1,167

 
 
 
1,422

 
Unfunded retirement benefits
 
13

 
 
 
15

 
Other accrued expenses
 
11

 
 
 
7

 
Policy and contract claims
 
146

 
 
 
113

 
Foreign currency loss on Japan branch
 
185

 
 
 
208

 
Deferred compensation
 
210

 
 
 
181

 
Capital loss carryforwards
 
3

 
 
 
0

 
Other
 
103

 
 
 
95

 
Total deferred income tax assets
 
1,838

 
 
 
2,041

 
Net deferred income tax liability
 
5,056

 
 
 
3,438

 
Current income tax liability
 
331

 
 
 
902

 
Total income tax liability
 
$
5,387

 
 
 
$
4,340

 
 
 
Summary of Income Tax Contingencies
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended December 31:
(In millions)
 
2016
 
 
2015
 
Balance, beginning of year
 
$
264


 
$
309


Additions for tax positions of prior years
 
33

  
 
0

  
Reductions for tax positions of prior years
 
(3
)
  
 
(45
)
 
Balance, end of year
 
$
294


 
$
264