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64 Aflac Incorporated Annual Report for 2008
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) 2008 2007 2006
Property and equipment:
Land $ 146 $ 120 $ 118
Buildings 505 403 379
Equipment 265 244 224
Total property and equipment 916 767 721
Less accumulated depreciation 319 271 263
Net property and equipment $ 597 $ 496 $ 458
Receivables: Receivables consist primarily of monthly
insurance premiums due from individual policyholders or their
employers for payroll deduction of premiums. At December
31, 2008, $527 million, or 57.3% of total receivables, were
related to Aflac Japan’s operations, compared with $395
million, or 53.9%, at December 31, 2007.
3. INVESTMENTS
The components of net investment income for the years
ended December 31 were as follows:
(In millions) 2008 2007 2006
Fixed-maturity securities $ 2,204 $ 1,936 $ 1,782
Perpetual securities 375 372 387
Equity securities and other 3 2 2
Short-term investments and cash equivalents 22 45 20
Gross investment income 2,604 2,355 2,191
Less investment expenses 26 22 20
Net investment income $ 2,578 $ 2,333 $ 2,171