FORM 11-K
Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 11-K

(Mark One)

[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2010

Or

[    ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                 

Commission file number:     001-07434

Aflac Incorporated 401(k) Savings

and Profit Sharing Plan

 

(Full title of the plan)

LOGO

Aflac Incorporated

 

(Name of issuer of the securities held pursuant to the plan)

1932 Wynnton Road

Columbus, Georgia 31999

 

(Address of the plan and address of issuer’s principal executive offices)


Table of Contents

Aflac Incorporated 401(k) Savings and Profit Sharing Plan

Table of Contents

 

     Page

Report of Independent Registered Public Accounting Firm

   1

Statements of Net Assets Available for Plan Benefits

   2

Statements of Changes in Net Assets Available for Plan Benefits

   3

Notes to Financial Statements

   4

Schedule 1 - Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

   11

Exhibit Index

   13


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Pension Committee

Aflac Incorporated 401(k) Savings

    and Profit Sharing Plan:

We have audited the accompanying statements of net assets available for plan benefits of the Aflac Incorporated 401(k) Savings and Profit Sharing Plan (the Plan) as of December 31, 2010 and 2009, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Aflac Incorporated 401(k) Savings and Profit Sharing Plan as of December 31, 2010 and 2009, and the changes in net assets available for plan benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information included in Schedule 1 as of December 31, 2010 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplemental information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

 

  

LOGO

June 27, 2011

  

Atlanta, Georgia

  

 

1


Table of Contents

Aflac Incorporated 401(k) Savings and Profit Sharing Plan

Statements of Net Assets Available for Plan Benefits

December 31,

 

      2010     2009  

Assets:

    

Investments (Note 5)

   $     213,671,088      $     174,785,482         

Participant loans

     10,860,303        9,116,280         

Cash

     -        224,949         

Accrued employer contribution

     372,923        136,371         

Accrued participant contribution

     678,065        384,755         

Total assets

     225,582,379        184,647,837         

Liabilities:

    

Excess participant contributions payable

     192,968        171,606         

Total liabilities

     192,968        171,606         

Net assets available for plan benefits before adjustments

     225,389,411        184,476,231         

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     (468,430     813,049         

Net assets available for plan benefits

   $ 224,920,981      $ 185,289,280         
   

See accompanying Notes to Financial Statements.

 

2


Table of Contents

Aflac Incorporated 401(k) Savings and Profit Sharing Plan

Statements of Changes in Net Assets Available for Plan Benefits

Years Ended December 31,

 

      2010     2009  

Contributions and transfers:

    

Participant withholdings

   $ 11,747,257      $ 11,029,577          

Participant transfers from other plans

     4,639,218        283,966          

Employer matching

     4,477,853        4,456,406          

Total contributions and transfers

     20,864,328        15,769,949          

Dividend income

     4,687,369        3,790,846          

Interest income

     613,430        661,417          

Net appreciation in fair value of investments (Note 5)

     26,660,872        21,591,820          

Distributions to participants

     (13,109,913     (10,087,246)         

Administrative fees

     (84,385     (86,331)         

Increase in net assets

     39,631,701        31,640,455          

Net assets available for plan benefits:

    

Beginning of year

     185,289,280        153,648,825          

End of year

   $     224,920,981      $     185,289,280          
   

See accompanying Notes to Financial Statements.

 

3


Table of Contents

Aflac Incorporated 401(k) Savings and Profit Sharing Plan

Notes to Financial Statements

December 31, 2010 and 2009

 

1. DESCRIPTION OF THE PLAN

The Aflac Incorporated 401(k) Savings and Profit Sharing Plan (the Plan) was established for the benefit of the employees of Aflac Incorporated; American Family Life Assurance Company of Columbus (excluding Japan Branch employees); American Family Life Assurance Company of New York; Aflac International, Incorporated (excluding Japan Branch employees); and Communicorp, Incorporated. Effective August 1, 2010, employees of Continental American Insurance Company (CAIC) became eligible to participate in the Plan. The aforementioned entities are collectively referred to as “the Company” in this report.

The following description provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.

 

  (a) General

The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

Eligible employees may voluntarily participate in the Plan on the first day of the month, which coincides with or next follows the completion of thirty days of employment.

The Plan is administered by a plan administrator appointed by the Pension Committee of Aflac Incorporated’s Board of Directors. For the period May 3, 2010 to December 31, 2010, T. Rowe Price Trust Company was the Plan’s trustee and administrator. For the period January 1, 2010 to May 2, 2010, and for the year ended December 31, 2009, the Plan’s trustee and administrator was Merrill Lynch Trust Company. The majority of the Plan’s administrative expenses are paid by the Plan sponsor. A portion of the Plan’s administrative expenses is allocated to the Plan and is deducted from the investment earnings (losses) in participant accounts. Administrative fees on loans and in-service withdrawal expenses are paid directly by the requesting participant and are deducted from the loan or in-service withdrawal amount.

 

  (b) Contributions and Transfers

Contributions to the Plan are made by both participants and the Company. Participants may contribute portions of their salary and bonus in increments of whole percentages of up to 75% in 2010 and 50% in 2009, subject to aggregate limits imposed by Internal Revenue Service (IRS) regulations. Aggregate limits as prescribed by the IRS were $16,500 for participants under the age of 50 and $22,000 for participants age 50 and older in 2010 and 2009. Prior to March 1, 2009, contributions by participants were all made on a pre-tax basis. Effective March 1, 2009, participants could elect whether to make contributions on a pre-tax basis (traditional 401(k)) or on an after-tax basis (Roth 401(k)). The first 1% to 6% of participants’ compensation contributed may be subject to a percentage matching contribution by the Company. For the years ended December 31, 2010 and 2009, subject to certain limitations, the Company’s matching contribution was 50% of the portion of the participants’ contributions, which were not in excess of 6% of the participants’ annual cash compensation. Participants may transfer into the Plan amounts representing distributions from other eligible plans. During the year ended December 31, 2010, $4.2 million in net assets was transferred from the CAIC 401(k) Retirement Savings Plan into the Aflac Incorporated 401(k) Savings and Profit Sharing Plan.

 

  (c) Participant Accounts

An account is maintained for each participant and is credited with participant contributions and investment earnings or losses thereon. Contributions may be invested in one or more of the investment funds available under the Plan at the direction of the participant. A separate account is maintained with respect to each participant’s interest in the Company’s matching contributions. Amounts in this account are apportioned and invested in the same manner as the participant’s account.

 

4


Table of Contents
  (d) Vesting

Participants are 100% vested in their contributions plus investment earnings or losses thereon.

Participants become vested in the Company’s matching contributions and the related earnings or losses thereon according to the following schedule.

 

    Years of Service       Vested Percentage        
 

Less than 1

  0%  
 

1

  20%  
 

2

  40%  
 

3

  60%  
 

4

  80%  
 

5 or more

  100%  

A participant’s interest in the Company’s matching contributions and the related earnings or losses thereon is also vested upon termination either because of death or disability or after attaining early retirement date or normal retirement age. Except as previously described, participants forfeit the portion of their interest which is not vested upon termination of employment. These forfeitures are available to reduce the Company’s future matching contributions or plan expenses. At December 31, 2010, forfeited non-vested accounts totaled approximately $23,000, compared with approximately $46,100 a year ago. In 2010, forfeitures of approximately $277,000 were used to reduce matching contributions, compared with approximately $148,000 in 2009.

 

  (e) Distributions

Participants may receive a distribution equal to the vested value of their account upon death, disability, retirement, or termination of either the Plan or the participant’s employment. Distributions may only be made in the form of a lump-sum cash payment and/or Aflac Incorporated common stock.

The Plan permits in-service withdrawals for participants who are 100% vested in the Company’s contribution and have attained age 59 1/2.

 

  (f) Loans

Participants are allowed to borrow funds from their accounts. The minimum amount of any loan is $1,000. Participants may have up to two active loans from their account at any time. The maximum amount of loans made to a participant from the Plan, when added together, cannot exceed the lesser of:

 

  a. 50% of the participant’s vested benefit (as defined by the Plan document); or

 

  b. $50,000, reduced by the amount, if any, of the highest balance of all outstanding loans to the participant during the one-year period ending on the day prior to the day on which the loan is made.

All participant loans carry a maturity date of up to five years for general purpose loans and up to 10 years for loans made to purchase the participant’s principal residence and are secured by the balance in the participant’s account. Interest rates on participant loans are established at the prevailing prime interest rate at the time the loan is made plus 2%. The prime interest rate was 3.25% at December 31, 2010, and 2009. Participant loans are classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest.

 

5


Table of Contents
  (g) Transactions With Parties-in-Interest

As of December 31, 2010 and 2009, the statements of net assets available for plan benefits include the following investments and participant loans with parties-in-interest to the Plan.

 

      2010      2009  

T. Rowe Price Balanced Fund

   $     30,325,088       $ *           

T. Rowe Price Equity Income Fund

     15,411,869         *           

T. Rowe Price Mid-Cap Growth Fund

     5,896,285         *           

T. Rowe Price Mid-Cap Value Fund

     485,170         *           

T. Rowe Price Retirement Income Fund

     88,082         *           

T. Rowe Price Retirement 2005 Fund

     158,645         *           

T. Rowe Price Retirement 2010 Fund

     909,398         *           

T. Rowe Price Retirement 2015 Fund

     545,950         *           

T. Rowe Price Retirement 2020 Fund

     391,520         *           

T. Rowe Price Retirement 2025 Fund

     600,475         *           

T. Rowe Price Retirement 2030 Fund

     217,627         *           

T. Rowe Price Retirement 2035 Fund

     133,232         *           

T. Rowe Price Retirement 2040 Fund

     207,458         *           

T. Rowe Price Retirement 2045 Fund

     129,157         *           

T. Rowe Price Retirement 2050 Fund

     136,972         *           

T. Rowe Price Retirement 2055 Fund

     20,523         *           

T. Rowe Price Stable Value Common Trust Fund**

     12,491,592         *           

T. Rowe Price U.S. Treasury Money Market Trust

     1,237,880         *           

Merrill Lynch Retirement Preservation Trust***

     *             12,021,527           

Merrill Lynch Equity Index Trust

     *         3,221,317           

Aflac Incorporated common stock

     99,174,091         84,727,222           

Participant loans

     10,860,303         9,116,280           
   

* Investment not part of the Plan at the end of the respective period

** Includes adjustment to contract value of $(468,430) in 2010

*** Includes adjustment to contract value of $813,049 in 2009

2. SUMMARY OF ACCOUNTING POLICIES

 

  (a) Basis of Presentation

The accompanying statements of net assets available for plan benefits and changes in net assets available for plan benefits have been prepared on the accrual basis of accounting.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires the plan administrator to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

 

  (b) Investments

Investments are stated at fair value. Investments in mutual funds and common shares are stated at fair value based upon market quotations obtained from national security exchanges. Investments in common/collective trusts are valued based on the quoted market prices of the underlying assets held in the fund, except for the T. Rowe Price Stable Value Common Trust Fund at December 31, 2010 and the Merrill Lynch Retirement Preservation Trust at December 31, 2009.

The T. Rowe Price Stable Value Common Trust Fund and the Merrill Lynch Retirement Preservation Trust, both common/collective trusts, primarily hold investments in fully benefit-responsive investment contracts that provide that the Plan may make withdrawals at contract value for benefit-responsive requirements. In accordance with applicable accounting guidance, the Plan’s investment in units of these trusts is presented at fair value in the statements of net assets available for plan benefits, with an adjustment to its underlying contract value displayed separately. The T. Rowe Price Stable Value

 

6


Table of Contents

Common Trust Fund’s and the Merrill Lynch Retirement Preservation Trust’s reported fair values are determined as the sum of (a) the fair value of the investments in guaranteed insurance contracts and security-backed investment contracts that are wrapped by an insurance company, bank or other financial institution (collectively, the “Investment Contracts”), as determined by that fund’s trustee and (b) the fair value of that fund’s investments in externally managed collective investment funds as determined by those funds’ trustees.

Securities transactions are accounted for on the trade date (the date the order to buy or sell is executed). Realized gains and losses on the sale of investments are calculated based on the difference between selling price and cost on an average cost basis.

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities could occur and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for plan benefits.

 

  (c) Distributions

Distributions to participants are recorded when paid.

 

  (d) Fair Value of Financial Instruments

Investments are stated at fair value. Participant loans are stated at cost, which approximates fair value. The carrying amounts for cash, receivables, and payables approximated their fair values due to the short-term nature of these instruments.

 

  (e) New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Participant loans: In September 2010, the Financial Accounting Standards Board (FASB) issued amended accounting guidance on classifying participant loans. This guidance requires that participant loans be classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest. The Company adopted this guidance during the year ended December 31, 2010. As of December 31, 2010, and 2009, accrued but unpaid interest is included in the participant loan balance in the Plan’s statements of net assets available for plan benefits. The adoption had no other impact on the Plan’s net assets available for benefits or the changes in net assets available for benefits.

Fair value measurements and disclosures: In January 2010, the FASB issued amended accounting guidance on fair value disclosures. This guidance requires new disclosures about transfers in and out of fair value hierarchy Levels 1 and 2 and clarifies that fair value measurement disclosures should be provided for each class of assets and liabilities. The Company adopted this guidance during the year ended December 31, 2010. The adoption had no impact on the Plan’s net assets available for benefits or the changes in net assets available for benefits.

Accounting Pronouncements Pending Adoption

Fair value measurements and disclosures: In May 2011, the FASB issued amended accounting guidance on fair value measurements and disclosures. Most of the amendments are wording changes that clarify the FASB’s intent about the application of existing fair value measurement and disclosure requirements. Other amendments change a particular principle or requirement for measuring fair value or disclosing information about fair value measurements. This guidance is effective for interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of adopting this guidance on the Plan’s net assets available for benefits and the changes in net assets available for benefits.

In January 2010, the FASB issued amended accounting guidance on fair value disclosures. This guidance requires the activity in fair value hierarchy Level 3 for purchases, sales, issuances, and settlements to be reported on a gross, rather than net, basis. This guidance is effective for interim and annual periods

 

7


Table of Contents

beginning after December 15, 2010. The Company does not expect the adoption of this guidance to have any impact on the Plan’s net assets available for benefits or the changes in net assets available for benefits.

3. FEDERAL INCOME TAXES

The Internal Revenue Service has determined and informed the Company by letter dated February 27, 2002, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code. Although the Plan has been amended since receiving the determination letter, the Plan administrator and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Internal Revenue Code. In January 2011, the Plan was submitted to the Internal Revenue Service for a determination on its continued tax-qualified status.

Accounting principles generally accepted in the United States of America require the Company to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Company has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2010, and 2009, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

4. PLAN TERMINATION

Although it has not expressed any intent to do so, the Company has the right to terminate the Plan at any time subject to the provisions of ERISA. In the event of Plan termination, participants would become 100% vested in their accounts.

5. INVESTMENT FUNDS

The following table presents the fair value of individual investments that exceeded 5% of the Plan’s net assets as of December 31:

 

      2010      2009  

Mutual funds:

     

T. Rowe Price Balanced Fund

   $         30,325,088       $     *           

T. Rowe Price Equity Income Fund

     15,411,869         *           

Vanguard Institutional Index Fund, Institutional

     15,119,310         *           

Davis New York Venture Fund

     *         9,795,229           

Dodge & Cox Balanced Fund

     *                 25,432,680           

Dodge & Cox Stock Fund

     *         14,691,410           

Common/collective trust funds:

     

T. Rowe Price Stable Value Common Trust Fund**

     12,491,592         *           

Merrill Lynch Retirement Preservation Trust***

     *         12,021,527           

Aflac Incorporated common stock

     99,174,091         84,727,222           
   

* Investment not part of the Plan at the end of the respective period

** Includes adjustment to contract value of $(468,430) in 2010

*** Includes adjustment to contract value of $813,049 in 2009

During 2010 and 2009, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:

 

      2010      2009  

Mutual funds

   $ 8,077,402       $ 15,064,006           

Common/collective trust funds

     220,887         684,248           

Aflac Incorporated common stock

     18,362,583         5,843,566           

Total net appreciation in fair value of investments

   $         26,660,872       $         21,591,820           
   

GAAP specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. These two types of inputs create three valuation hierarchy levels. The following tables present the fair value hierarchy levels of the Plan’s assets that are measured at fair value on a recurring basis as of December 31.

 

8


Table of Contents
   
      2010  
            Level 1          Level 2      Level 3      Total  

Assets:

           

Investments:

           

Mutual funds:

           

Small cap funds

   $ 2,516,033       $ -       $ -       $ 2,516,033           

Mid cap funds

     6,929,740         -         -         6,929,740           

Large cap funds

     39,150,228         -         -         39,150,228           

International funds

     11,089,501         -         -         11,089,501           

Blended funds

     33,869,234         -         -         33,869,234           

Fixed income bond funds

     6,744,359         -         -         6,744,359           

Common/collective trust funds

     -         14,197,902         -         14,197,902           

Aflac Incorporated common stock

     99,174,091         -         -         99,174,091           

Total assets

   $         199,473,186       $         14,197,902       $                 -       $         213,671,088           
   
           
   
      2009  
            Level 1          Level 2      Level 3      Total  

Assets:

           

Investments:

           

Mutual funds:

           

Small cap funds

   $ 1,290,597       $ -       $ -       $ 1,290,597           

Mid cap funds

     3,606,520         -         -         3,606,520           

Large cap funds

     31,285,194         -         -         31,285,194           

International funds

     9,663,393         -         -         9,663,393           

Blended funds

     25,432,680         -         -         25,432,680           

Fixed income bond funds

     4,350,081         -         -         4,350,081           

Common/collective trust funds

     -         14,429,795         -         14,429,795           

Aflac Incorporated common stock

     84,727,222         -         -         84,727,222           

Total assets

   $         160,355,687       $         14,429,795       $                 -       $ 174,785,482           
   

The fair value of our investments categorized as Level 1, consisting of mutual funds and common stock, is based on quoted market prices for identical securities traded in active markets that are readily and regularly available to us. The fair value of our investments categorized as Level 2, consisting of common/collective trusts, is based on quoted prices for similar assets in markets that are not active, other inputs that are observable, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates, or other market corroborated inputs.

The Plan does not have any liabilities that are measured at fair value on a recurring basis as of December 31, 2010 and 2009.

 

9


Table of Contents

6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for plan benefits as presented in these financial statements to the balance per Form 5500 as of December 31:

 

          2010     2009  

Net assets available for plan benefits

   $         224,920,981      $ 185,289,280          

Adjustment from contract value to fair value for fully benefit-responsive investment contracts

     468,430        (813,049)         

Participant withdrawals not yet distributed

     -        (185,123)         

Deemed distributions

     (62,196     (48,185)         

Net assets available for plan benefits - Form 5500

   $ 225,327,215      $         184,242,923          
   

Deemed distributions are defaulted and unpaid participant loans of active participants that are disallowed on Form 5500.

The following is a reconciliation of changes in net assets available for plan benefits as presented in these financial statements and Form 5500 as of December 31:

 

      2010     2009  

Increase in net assets per statement of changes in net assets available for plan benefits

   $ 39,631,701      $ 31,640,455          

Adjustment from contract value to fair value for fully benefit-responsive investment contracts

     1,281,479        (813,049)         

Participant withdrawals not yet distributed

     185,123        (185,123)         

Deemed distributions

     (14,815     -          

Deemed distributions paid

     804        3,227          

Deemed distributions written off

     -        3,007          

Net income and Reconciliation - Form 5500*

   $           41,084,292      $           30,648,517          
   
  * Represents net income of $36,850,693 in 2010 and $30,648,517 in 2009 on Schedule H, line 2k and the transfer of net assets from the CAIC 401(k) Retirement Savings Plan into the Aflac Incorporated 401(k) Savings and Profit Sharing Plan of $4,233,599 in 2010 on Schedule H, line 2l(1)

Paid deemed distributions are cash receipts on defaulted participant loans of active participants disallowed on Form 5500 in previous years. Deemed distributions written off represent those defaulted loans that had not been removed from plan assets until the current year but that had been disallowed on Form 5500 in previous years.

 

10


Table of Contents

SCHEDULE 1

Aflac Incorporated 401(k) Savings and Profit Sharing Plan

EIN: 58-1167100 PN: 004

Form 5500, Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

As of December 31, 2010

 

Identity of Issue and Description of Investment

     Shares/Units         Current Value           

Mutual Funds

     

PIMCO Total Return Fund, Institutional

     553,700       $ 6,007,654           

Vanguard Inflation-Protected Securities Fund, Admiral

     8,427         215,246           

Vanguard Total Bond Market Index Fund, Institutional

     49,194         521,459           

American Funds Growth Fund of America, R6

     283,148         8,619,049           

American Funds Europacific Growth Fund, R6

     260,739         10,786,793           

T. Rowe Price Balanced Fund*

     1,571,248         30,325,088           

T. Rowe Price Equity Income Fund*

     650,564         15,411,869           

T. Rowe Price Mid-Cap Growth Fund*

     100,739         5,896,285           

T. Rowe Price Mid-Cap Value Fund*

     20,462         485,170           

Principal U.S. Property Account

     10         5,107           

T. Rowe Price Retirement Income Fund*

     6,718         88,082           

T. Rowe Price Retirement 2005 Fund*

     13,989         158,645           

T. Rowe Price Retirement 2010 Fund*

     59,282         909,398           

T. Rowe Price Retirement 2015 Fund*

     45,916         545,950           

T. Rowe Price Retirement 2020 Fund*

     23,815         391,520           

T. Rowe Price Retirement 2025 Fund*

     49,873         600,475           

T. Rowe Price Retirement 2030 Fund*

     12,594         217,627           

T. Rowe Price Retirement 2035 Fund*

     10,893         133,232           

T. Rowe Price Retirement 2040 Fund*

     11,909         207,458           

T. Rowe Price Retirement 2045 Fund*

     11,124         129,157           

T. Rowe Price Retirement 2050 Fund*

     14,063         136,972           

T. Rowe Price Retirement 2055 Fund*

     2,131         20,523           

Royce Pennsylvania Mutual Fund

     215,968         2,516,033           

Vanguard Extended Market Index Fund, Institutional

     13,285         548,285           

Vanguard Institutional Index Fund, Institutional

     131,460         15,119,310           

Vanguard Total International Stock Index, Investor

     19,207         302,708           

Total Mutual Funds

              100,299,095           

Common/Collective Trusts

     

T. Rowe Price Stable Value Common Trust Fund*

     12,491,592         12,960,022           

T. Rowe Price U.S. Treasury Money Market Trust*

     1,237,880         1,237,880           

Total Common/Collective Trusts

              14,197,902           

Aflac Incorporated common stock*

     1,757,471         99,174,091           

Participant loans (3,492 loans outstanding with zero cost, interest rates from 5.25% to 10.25% and maturity dates of less than one year to 10 years)*

              10,798,107**       

Total

      $     224,469,195           
   

*Indicates a party-in-interest to the Plan.

**Excludes deemed distributions of $62,196

See accompanying report of independent registered public accounting firm.

 

11


Table of Contents

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

        Aflac Incorporated 401(k) Savings and  
        Profit Sharing Plan  
Date:  

    June 27, 2011

      By:  

  /s/ Casey Graves

 
          Casey Graves  
          Vice President  
          Human Resources  

 

12


Table of Contents

Exhibit Index

 

23   -   Consent of Independent Registered Public Accounting Firm

 

13