Aflac 2009 Annual Report Download - page 67

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(¥11.8 billion) at December 31, 2009, compared with $161
million (¥14.6 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) 2009 2008 2007
Property and equipment:
Land $ 153 $ 146 $ 120
Buildings 501 505 403
Equipment 293 265 244
Total property and equipment 947 916 767
Less accumulated depreciation 354 319 271
Net property and equipment $ 593 $ 597 $ 496
Receivables: Receivables consist primarily of monthly
insurance premiums due from individual policyholders
or their employers for payroll deduction of premiums.
At December 31, 2009, $397 million, or 52.0% of total
receivables, were related to Aac Japan’s operations,
compared with $527 million, or 57.3%, at December
31, 2008.
3. INVESTMENTS
Net Investment Income
The components of net investment income for the years
ended December 31 were as follows:
(In millions) 2009 2008 2007
Fixed-maturity securities $ 2,413 $ 2,204 $ 1,936
Perpetual securities 367 375 372
Equity securities and other 3 3 2
Short-term investments and cash equivalents 6 22 45
Gross investment income 2,789 2,604 2,355
Less investment expenses 24 26 22
Net investment income $ 2,765 $ 2,578 $ 2,333
Aflac Annual Report for 2009 63