Aflac 2007 Annual Report Download - page 60

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56 There’s Only One Aflac
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) 2007 2006
Aflac Japan net assets $ 6,087 $ 5,782
Aflac Japan dollar-denominated net assets (3,672) (3,465)
Aflac Japan yen-denominated net assets 2,415 2,317
Parent Company yen-denominated net liabilities (1,496) (1,434)
Consolidated yen-denominated net assets subject to
foreign currency translation fluctuations $ 919 $ 883
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) 2007 2006 2005
Management fees $32 $25 $28
Allocated expenses 33 32 30
Profit repatriation 567 442 374
Total transfers from Aflac Japan $ 632 $ 499 $ 432
Policyholder Protection Corporation: The total liability
accrued for our obligations to the Japanese Life Insurance
Policyholder Protection Corporation (LIPPC) was $151 million
(¥17.2 billion) at December 31, 2007, compared with $175
million (¥20.8 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) 2007 2006 2005
Property and equipment:
Land $ 120 $ 118 $ 119
Buildings 403 379 361
Equipment 244 224 226
Total property and equipment 767 721 706
Less accumulated depreciation 271 263 258
Net property and equipment $ 496 $ 458 $ 448
Receivables: Receivables consist primarily of monthly
insurance premiums due from individual policyholders or their
employers for payroll deduction of premiums. At December
31, 2007, $395 million, or 53.9% of total receivables, were
related to Aflac Japan’s operations, compared with $221
million, or 41.4%, at December 31, 2006.