Expense on extinguishment of debt

  
PART I. FINANCIAL INFORMATION  
Item 1. Financial Statements. Aflac Incorporated and SubsidiariesConsolidated Statements of Earnings

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|    | Three Months EndedJune 30, | Six Months Ended June 30, |  |
| (In millions, except for share and per-share amounts - Unaudited) | 2022 | 2021 | 2022 |  | 2021 |  |
| Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |
| Net earned premiums, principally supplemental health insurance |  | $ | 3,849  |  |  |  | $ | 4,441  |  |  |  | $ | 8,028  |  |  |  | $ | 9,034  |  |  |
| Net investment income |  | 937  |  |  |  | 993  |  |  |  | 1,840  |  |  |  | 1,918  |  |  |
| Net investment gains (losses) |  | 564  |  |  |  | 89  |  |  |  | 686  |  |  |  | 396  |  |  |
| Other income (loss) |  | 50  |  |  |  | 41  |  |  |  | 118  |  |  |  | 85  |  |  |
| Total revenues |  | 5,400  |  |  |  | 5,564  |  |  |  | 10,672  |  |  |  | 11,433  |  |  |
| Benefits and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
| Benefits and claims, net |  | 2,298  |  |  |  | 2,653  |  |  |  | 4,785  |  |  |  | 5,387  |  |  |
| Acquisition and operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
| Amortization of deferred policy acquisition costs |  | 268  |  |  |  | 280  |  |  |  | 590  |  |  |  | 592  |  |  |
| Insurance commissions |  | 279  |  |  |  | 315  |  |  |  | 579  |  |  |  | 641  |  |  |
| Insurance and other expenses (1) |  | 799  |  |  |  | 881  |  |  |  | 1,629  |  |  |  | 1,712  |  |  |
| Interest expense |  | 55  |  |  |  | 62  |  |  |  | 112  |  |  |  | 124  |  |  |
| Total acquisition and operating expenses |  | 1,401  |  |  |  | 1,538  |  |  |  | 2,910  |  |  |  | 3,069  |  |  |
| Total benefits and expenses |  | 3,699  |  |  |  | 4,191  |  |  |  | 7,695  |  |  |  | 8,456  |  |  |
| Earnings before income taxes |  | 1,701  |  |  |  | 1,373  |  |  |  | 2,977  |  |  |  | 2,977  |  |  |
| Income taxes |  | 313  |  |  |  | 268  |  |  |  | 557  |  |  |  | 579  |  |  |
| Net earnings |  | $ | 1,388  |  |  |  | $ | 1,105  |  |  |  | $ | 2,420  |  |  |  | $ | 2,398  |  |  |
| Net earnings per share: |  |  |  |  |  |  |  |  |  |  |  |  |
| Basic |  | $ | 2.17  |  |  |  | $ | 1.63  |  |  |  | $ | 3.75  |  |  |  | $ | 3.51  |  |  |
| Diluted |  | 2.16  |  |  |  | 1.62  |  |  |  | 3.73  |  |  |  | 3.49  |  |  |
| Weighted-average outstanding common shares used in   computing earnings per share (In thousands): |  |  |  |  |  |  |  |  |  |  |  |  |
| Basic |  | 640,707  |  |  |  | 678,050  |  |  |  | 645,205  |  |  |  | 683,464  |  |  |
| Diluted |  | 643,243  |  |  |  | 680,920  |  |  |  | 648,010  |  |  |  | 686,400  |  |  |
| Cash dividends per share |  | $ | .40  |  |  |  | $ | .33  |  |  |  | $ | .80  |  |  |  | $ | .66  |  |  |

(1) Includes expense of $48 in the three- and six-month periods ended June 30, 2021 for the early extinguishment of debt.See the accompanying Notes to the Consolidated Financial Statements.  
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