Aflac 2006 Annual Report Download - page 59

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55
Japan. The dollar values of our yen-denominated net assets,
which are subject to foreign currency translation fluctuations
for financial reporting purposes, are summarized as follows at
December 31 (translated at end-of-period exchange rates):
(In millions) 2006 2005
Aflac Japan net assets $ 5,782 $ 5,494
Aflac Japan dollar-denominated net assets (3,465) (3,310)
Aflac Japan yen-denominated net assets 2,317 2,184
Parent Company yen-denominated net liabilities (1,434) (1,403)
Consolidated yen-denominated net assets subject to
foreign currency translation fluctuations $ 883 $ 781
Transfers of funds from Aflac Japan: Aflac Japan makes
payments to the Parent Company for management fees and
to Aflac U.S. for allocated expenses and profit repatriations.
Information on transfers for each of the years ended
December 31 is shown below. See Note 11 for information
concerning restrictions on transfers from Aflac Japan.
(In millions) 2006 2005 2004
Management fees $25 $28 $24
Allocated expenses 32 30 26
Profit repatriation 442 374 220
Total transfers from Aflac Japan $ 499 $ 432 $ 270
Policyholder Protection Fund: The total liability accrued for
our obligations to the Japanese life insurance policyholder
fund was $175 million (¥20.8 billion) at December 31, 2006,
compared with $203 million (¥23.9 billion) a year ago. The
obligation is payable in semi-annual installments through 2013.
Property and Equipment: The costs of buildings, furniture
and equipment are depreciated principally on a straight-line
basis over their estimated useful lives (maximum of 45 years
for buildings and 10 years for furniture and equipment).
Expenditures for maintenance and repairs are expensed as
incurred; expenditures for betterments are capitalized and
depreciated. Classes of property and equipment as of
December 31 were as follows:
(In millions) 2006 2005 2004
Property and equipment:
Land $ 118 $ 119 $ 146
Buildings 379 361 404
Equipment 224 226 225
Total property and equipment 721 706 775
Less accumulated depreciation 263 258 260
Net property and equipment $ 458 $ 448 $ 515
Receivables: Receivables consisted primarily of monthly
insurance premiums due from individual policyholders or their
employers for payroll deduction of premiums. At December
31, 2006, $221 million, or 41.4% of total receivables, were
related to Aflac Japan’s operations, compared with $192
million, or 40.0%, at December 31, 2005.