| NOTES PAYABLE AND LEASE OBLIGATIONS |
NOTES PAYABLE AND LEASE OBLIGATIONS A summary of notes payable and lease obligations follows: | | | | | | | | | | | | | | | | | | | | | | | | | (In millions) | March 31,
2026 | | December 31,
2025 | 1.125% senior sustainability notes paid March 2026 | | $ | 0 | | | | | $ | 400 | | | 2.875% senior notes due October 2026 | | 299 | | | | | 299 | | | 3.60% senior notes due April 2030 | | 995 | | | | | 995 | | | 6.90% senior notes due December 2039 | | 221 | | | | | 221 | | | 6.45% senior notes due August 2040 | | 255 | | | | | 255 | | | 4.00% senior notes due October 2046 | | 394 | | | | | 394 | | | 4.750% senior notes due January 2049 | | 542 | | | | | 542 | | | | Yen-denominated senior notes and subordinated debentures: | | | | | | | | .932% senior notes due January 2027 (principal amount ¥60.0 billion) | | 374 | | | | | 382 | | | 1.048% senior notes due March 2029 (principal amount ¥13.0 billion) | | 81 | | | | | 83 | | | 1.075% senior notes due September 2029 (principal amount ¥33.4 billion) | | 209 | | | | | 213 | | | .500% senior notes due December 2029 (principal amount ¥12.6 billion) | | 79 | | | | | 80 | | | .550% senior notes due March 2030 (principal amount ¥13.3 billion) | | 83 | | | | | 85 | | | 1.159% senior notes due October 2030 (principal amount ¥29.3 billion) | | 182 | | | | | 186 | | | 1.726% senior notes due October 2030 (principal amount ¥35.0 billion) | | 218 | | | | | 223 | | | 1.412% senior notes due March 2031 (principal amount ¥27.9 billion) | | 174 | | | | | 178 | | | .633% senior notes due April 2031 (principal amount ¥30.0 billion) | | 187 | | | | | 191 | | | .843% senior notes due December 2031 (principal amount ¥9.3 billion) | | 58 | | | | | 59 | | | .750% senior notes due March 2032 (principal amount ¥20.7 billion) | | 129 | | | | | 131 | | | 1.990% senior notes due May 2032 (principal amount ¥18.2 billion) | | 114 | | | | | 116 | | | 1.320% senior notes due December 2032 (principal amount ¥21.1 billion) | | 132 | | | | | 134 | | | 2.003% senior notes due December 2032 (principal amount ¥23.4 billion) | | 146 | | | | | 149 | | | .844% senior notes due April 2033 (principal amount ¥12.0 billion) | | 75 | | | | | 76 | | | 1.488% senior notes due October 2033 (principal amount ¥15.2 billion) | | 94 | | | | | 97 | | | 1.682% senior notes due March 2034 (principal amount ¥7.7 billion) | | 48 | | | | | 49 | | | 1.600% senior notes due March 2034 (principal amount ¥18.3 billion) | | 114 | | | | | 116 | | | .934% senior notes due December 2034 (principal amount ¥9.8 billion) | | 61 | | | | | 62 | | | .830% senior notes due March 2035 (principal amount ¥10.6 billion) | | 66 | | | | | 67 | | | 2.320% senior notes due May 2035 (principal amount ¥38.3 billion) | | 240 | | | | | 245 | | | 2.369% senior notes due June 2035 (principal amount ¥9.5 billion) | | 59 | | | | | 60 | | | 1.740% senior notes due March 2036 (principal amount ¥15.0 billion) | | 93 | | | | | 95 | | | 1.039% senior notes due April 2036 (principal amount ¥10.0 billion) | | 62 | | | | | 64 | | | 1.594% senior notes due September 2037 (principal amount ¥6.5 billion) | | 40 | | | | | 41 | | | 1.750% senior notes due October 2038 (principal amount ¥8.9 billion) | | 55 | | | | | 56 | | | 1.920% senior notes due March 2039 (principal amount ¥16.5 billion) | | 102 | | | | | 104 | | | 1.122% senior notes due December 2039 (principal amount ¥6.3 billion) | | 39 | | | | | 40 | | | 2.650% senior notes due May 2040 (principal amount ¥11.6 billion) | | 73 | | | | | 74 | | | 2.779% senior notes due June 2040 (principal amount ¥7.0 billion) | | 43 | | | | | 45 | | | 1.264% senior notes due April 2041 (principal amount ¥10.0 billion) | | 62 | | | | | 63 | | | 2.160% senior notes due March 2044 (principal amount ¥5.7 billion) | | 35 | | | | | 36 | | | 3.040% senior notes due May 2045 (principal amount ¥7.0 billion) | | 44 | | | | | 45 | | | 2.108% subordinated debentures due October 2047 (principal amount ¥60.0 billion) | | 371 | | | | | 379 | | | 1.560% senior notes due April 2051 (principal amount ¥20.0 billion) | | 124 | | | | | 127 | | | 2.144% senior notes due September 2052 (principal amount ¥12.0 billion) | | 74 | | | | | 76 | | | 1.958% subordinated bonds due December 2053 (principal amount ¥30.0 billion) | | 187 | | | | | 191 | | | 2.400% senior notes due March 2054 (principal amount ¥19.5 billion) | | 121 | | | | | 124 | | | | Yen-denominated loans: | | | | | | | | Variable interest rate loan due August 2027 (1.50% in 2026 and 1.08% in 2025, principal amount ¥11.7 billion) | | 73 | | | | | 75 | | | Variable interest rate loan due August 2029 (1.60% in 2026 and 1.18% in 2025, principal amount ¥25.3 billion) | | 158 | | | | | 161 | | | Variable interest rate loan due August 2032 (1.75% in 2026 and 1.33% in 2025, principal amount ¥70.0 billion) | | 437 | | | | | 446 | | | | Finance lease obligations payable through 2031 | | 9 | | | | | 6 | | | | Operating lease obligations payable through 2049 | | 77 | | | | | 73 | | | | Total notes payable and lease obligations | | $ | 7,908 | | | | | $ | 8,409 | | |
Amounts in the table above are reported net of debt issuance costs and issuance premiums or discounts, if applicable, that are being amortized over the life of the notes.In March 2026, the Parent Company extinguished $400 million of 1.125% senior sustainability notes upon their maturity. Interest expense related to the Company's notes payable, which is included in interest expense in the consolidated statements of earnings, was $59 million and $49 million for the three-month periods ended March 31, 2026 and 2025, respectively. Senior Note Facility Agreements The Parent Company has two separate facility agreements: a 10-year facility agreement (2035 Facility Agreement) with a Delaware trust (2035 Trust) and a 30-year facility agreement (2055 Facility Agreement) with a Delaware trust (2055 Trust). The trusts issued and sold pre-capitalized trust securities in private placements and invested the proceeds in a portfolio of principal and/or interest strips of U.S. Treasury securities (the Strips). These trusts are an off-balance sheet funding arrangement. The 2035 Facility Agreement provides the Parent Company the right to issue and sell to the 2035 Trust from time to time up to $1.0 billion of 5.251% senior notes due August 2035 in exchange for a corresponding amount of the Strips held by the 2035 Trust. The 2055 Facility Agreement provides the Parent Company the right to issue and sell to the 2055 Trust from time to time up to $1.0 billion of 5.991% senior notes due August 2055 in exchange for a corresponding amount of the Strips held by the 2055 Trust. As of March 31, 2026, the Parent Company had no senior note issuances under these facility agreements. For additional information, see Note 9 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report. A summary of the Company's lines of credit as of March 31, 2026 follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Borrower(s) | Type | Term | Expiration
Date | Capacity | Amount
Outstanding | Interest Rate on Borrowed Amount | Maturity Period | Commitment
Fee | Business
Purpose | Aflac Incorporated
and Aflac | uncommitted bilateral | 364 days | December 4, 2026 | $100 million | $0 million | The rate quoted by the bank and agreed upon at the time of borrowing | Up to 3 months | None | General corporate purposes | | Aflac Incorporated | unsecured revolving | 5 years | May 13,
2030, or the date commitments are terminated pursuant to an event of default | ¥100.0 billion | ¥0.0 billion | A rate per annum equal to, at the Company's option, either (a) Tokyo Interbank Market Rate (TIBOR) plus an applicable margin or (b) an alternative TIBOR based on the rate offered by the agent to major banks in yen for the applicable period plus an applicable margin | No later than
May 14, 2030 | .28% to .45%, depending on the Parent Company's debt ratings as of the date of determination | General corporate purposes, including a capital contingency plan for the operations of the Parent Company | Aflac Incorporated
and Aflac | unsecured revolving | 5 years | February 13, 2031, or the date commitments are terminated pursuant to an event of default | $1.0 billion | $0.0 billion | A rate per annum equal to, at the Company's option, either, (a) Secured Overnight Financing Rate (SOFR) for U.S. dollar-denominated borrowings or TIBOR for Japanese yen-denominated borrowings, in either case adjusted for certain costs, or (b) a base rate determined by reference to the highest of (1) the federal funds rate plus 1/2 of 1%, (2) the rate of interest for such day announced by the agent as its prime rate, or (3) SOFR for an interest period of one month plus 1.00%, in each case plus an applicable margin | No later than February 13, 2031 | .07% to .15%, depending on the Parent Company's debt ratings as of the date of determination | General corporate purposes, including a capital contingency plan for the operations of the Parent Company | Aflac Incorporated
and Aflac | uncommitted bilateral | None specified | None specified | $50 million | $0 million | A rate per annum equal to, at the Parent Company's option, either (a) a rate determined by reference to SOFR for the interest period relevant to such borrowing or (b) the base rate determined by reference to the highest of (1) the lender's U.S. dollar short-term commercial loan rate and (2) the federal funds rate plus 1/2 of 1% | Up to 3 months | None | General corporate purposes | Aflac(1) | uncommitted revolving | 364 days | November 30,
2026 | $250 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 1, 2026 | None | General corporate purposes | Aflac Incorporated(1) (Tranche 1) | uncommitted revolving | 364 days | November 25,
2026 | ¥50.0 billion | ¥0.0 billion | Three-month Japanese yen TIBOR plus 75 basis points per annum | No later than November 27, 2026 | None | General corporate purposes | Aflac Incorporated(1) (Tranche 2) | uncommitted revolving | 364 days | November 25,
2026 | ¥50.0 billion | ¥0.0 billion | Three-month Japanese yen TIBOR plus 75 basis points per annum | No later than November 27, 2026 | None | General corporate purposes | Aflac New York(1) | uncommitted revolving | 364 days | December 1,
2026 | $25 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 2, 2026 | None | General corporate purposes | CAIC(1) | uncommitted revolving | 364 days | December 1,
2026 | $15 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 2, 2026 | None | General corporate purposes |
(1) Intercompany credit agreement (continued) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Borrower(s) | Type | Term | Expiration
Date | Capacity | Amount
Outstanding | Interest Rate on Borrowed Amount | Maturity Period | Commitment
Fee | Business
Purpose | TOIC(1) | uncommitted revolving | 364 days | December 1,
2026 | $0.3 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 2, 2026 | None | General corporate purposes | Aflac GI Holdings LLC(1) | uncommitted revolving | 364 days | December 1,
2026 | $30 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 75 basis points per annum | No later than December 2, 2026 | None | General corporate purposes | Aflac Incorporated(1) | uncommitted revolving | 364 days | December 1,
2026 | $400 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 97 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 97 basis points per annum for Japanese yen-denominated borrowings | No later than December 2, 2026 | None | General corporate purposes | Aflac Re(1) | uncommitted revolving | 364 days | December 1,
2026 | $400 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings | No later than December 2, 2026 | None | General corporate purposes | Aflac Asset Management LLC(1) | uncommitted revolving | 364 days | December 1,
2026 | $25 million | $5 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings | No later than December 2, 2026 | None | General corporate purposes | Aflac Global Ventures LLC(1) | uncommitted revolving | 364 days | December 1,
2026 | $2 million | $0 million | Three-month term SOFR plus a 10 basis point SOFR adjustment and an additional 68 basis points per annum for U.S. dollar-denominated borrowings or three-month TIBOR plus 68 basis points per annum for Japanese yen-denominated borrowings | No later than December 2, 2026 | None | General corporate purposes |
(1) Intercompany credit agreement
The Company was in compliance with all of the covenants of its notes payable and lines of credit at March 31, 2026. No events of default or defaults occurred during the three-month period ended March 31, 2026.
For additional information, see Notes 4 and 9 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.
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