<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 1998
AFLAC INCORPORATED 401(k) PLAN
1932 Wynnton Road
Columbus, Georgia 31999
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 report to be signed on its behalf by the undersigned
hereunto duly authorized.
AFLAC INCORPORATED 401(k) PLAN
Date: June 23, 1999 By: /s/ Angela S. Hart
----------------------------------
Angela S. Hart
Senior Vice President,
Director of Human Resources
<PAGE>
AFLAC INCORPORATED 401(k) PLAN
Table of Contents
-----------------
Page
----
Independent Auditors' Report 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 4-15
Item 27a - Schedule of Assets Held for Investment Purposes 16
Item 27d - Schedule of Reportable Transactions 17
Exhibit 23 - Independent Auditors' Consent 18
i
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Administrative Committee
AFLAC Incorporated 401(k) Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the AFLAC Incorporated 401(k) Plan (the Plan) as of December 31,
1998 and 1997, 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 generally accepted auditing
standards. 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) Plan at December 31, 1998 and 1997, and the
changes in net assets available for plan benefits for the years then ended
in conformity with generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements of the AFLAC Incorporated 401(k) Plan taken as a whole.
The supplementary information included in Schedules 1 and 2 is presented for
the purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. These
supplemental schedules are the responsibility of the Plan's management.
Such information 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.
KPMG LLP
May 28, 1999
Atlanta, GA
1
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Statements of Net Assets Available for Plan Benefits
December 31,
<CAPTION>
1998 1997
---------- ----------
<S> <C> <C>
Assets:
Investments (Note 5):
Money market funds $ 2,024,987 $ 1,781,116
Mutual funds (cost $17,809,985 in
1998, $15,038,049 in 1997) 19,143,312 16,665,210
AFLAC Incorporated common stock
(cost $11,266,152 in 1998,
$8,086,594 in 1997) 29,150,111 15,604,603
Participants' notes receivable 1,799,636 938,509
---------- ----------
Total investments 52,118,046 34,989,438
---------- ----------
Receivables:
Employer contributions 126,314 89,549
Accrued interest and dividends 14,269 -
---------- ----------
Total receivables 140,583 89,549
---------- ----------
Cash 591,344 1,285,429
---------- ----------
Total assets 52,849,973 36,364,416
---------- ----------
Liabilities:
Excess employee contributions payable 4,627 13,650
Other 80,152 905,531
---------- ----------
Total liabilities 84,779 919,181
---------- ----------
Net assets available for
plan benefits $52,765,194 $35,445,235
========== ==========
See accompanying Notes to Financial Statements.
</TABLE>
2
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31,
<CAPTION>
1998 1997
---------- ----------
<S> <C> <C>
Contributions:
Participant withholdings $ 3,879,310 $ 3,583,036
Participant transfers
from other plans 217,499 133,462
Employer matching 2,051,943 1,536,531
---------- ----------
Total 6,148,752 5,253,029
Interest and dividend income 1,530,165 1,391,039
Net realized gains on sale
of investments 1,809,024 8,323,481
Change in net unrealized appreciation
(depreciation) on investments 10,072,116 (1,775,165)
Distributions to participants (2,169,422) (3,115,052)
Forfeitures (70,676) (108,771)
Transfer of Broadcast Division
Plan assets - (10,357,501)
---------- ----------
Increase (decrease) in net assets 17,319,959 (388,940)
Net assets available
for plan benefits:
Beginning of year 35,445,235 35,834,175
---------- ----------
End of year $52,765,194 $35,445,235
========== ==========
See accompanying Notes to Financial Statements.
</TABLE>
3
<PAGE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
December 31, 1998 and 1997
(1) DESCRIPTION OF THE PLAN
The AFLAC Incorporated 401(k) Plan (the Plan) was established for the
benefit of the employees of AFLAC Incorporated and related companies,
American Family Life Assurance Company of Columbus (excluding Japan Branch
employees), American Family Life Assurance Company of New York, AFLAC
Broadcast Division, AFLAC International, Inc., and Communicorp, Inc. The
AFLAC Broadcast Division was sold in 1997. All Plan assets related to the
broadcast division were transferred to a trust established by the purchaser.
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 Company's Board of Directors. All Plan expenses are paid
by the Company.
(b) CONTRIBUTIONS.
Contributions to the Plan are made by both participants and the
Company. For the years 1998 and 1997, participants could
contribute through payroll deductions from 1% to 22% and 1% to
18%, respectively, of their aggregate compensation, subject to
certain limitations. 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,
1998 and 1997, the Company's matching contribution was 50% of the
portion of the participants' contributions, which were not in
excess of 6% of the participants' compensation.
(c) PARTICIPANT ACCOUNTS.
An account is maintained for each participant and is credited
with participant contributions and investment earnings/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
<PAGE>
(d) VESTING.
Participants are 100% vested in their contributions plus actual
investment earnings/losses thereon.
Participants become vested in the Company's contribution
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 contributions is also
vested upon termination either because of death or disability or
after attaining his/her early retirement date or normal
retirement age. Participants forfeit the portion of their
interest which is not vested upon termination of employment.
These forfeitures reduce the Company's matching contribution.
(e) DISTRIBUTIONS.
Participants may receive a distribution equal to the vested value
of their account upon death, disability, retirement, or
termination of either the participant's employment or the Plan.
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 a participant who
is 100% vested in the Company's contribution and has attained
age 60.
(f) LOANS
Participants are allowed to borrow from their accounts. The
minimum amount of any loan is $1,000. The maximum amount of any
loan is such that when the amount of the loan is added to the
outstanding balance of all other loans made to the participant
from the Plan (and any other plans maintained by the employer or
any related companies) the total does not exceed the lesser of:
a. 50% of the participant's vested accrued benefit (as
defined in the Plan); 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.
(g) AGREEMENTS WITH TRUSTEE.
The assets of the Plan are held in a trust maintained by Charles
Schwab Trust Company.
5
<PAGE>
(2) SUMMARY OF ACCOUNTING POLICIES
(a) BASIS OF PRESENTATION.
The accompanying statements of net assets and changes in net
assets have been prepared on the accrual basis of accounting.
(b) INVESTMENTS.
Investments are stated at fair value based upon quotations
obtained from national security exchanges or the value as
determined by the managers of the money market and mutual funds.
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.
(3) FEDERAL INCOME TAXES
The Internal Revenue Service has determined and informed the Company by
a letter dated August 7, 1997, that the Plan and related trust are in
accordance with applicable sections of the Internal Revenue Code.
Participants in the Plan are not subject to Federal income taxes on
their contributions, on amounts contributed by the employer, or on earnings
or appreciation of investments held by the Plan until withdrawn by the
participant or distributed to the participant's named beneficiary in the
event of death.
(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 tables show net assets available for plan benefits as of
December 31, 1998 and 1997, and changes in net assets available for plan
benefits for the years then ended by investment fund. The investments in the
Dodge & Cox Balanced Fund, Dodge & Cox Stock Fund, Davis New York Venture
Fund, Stein Roe Capital Opportunities Fund and AFLAC Incorporated Common
Stock all exceeded five percent of the Plan's net assets available for plan
benefits at December 31, 1998.
6
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Net Assets Available for Plan Benefits, Investment Fund Information
December 31, 1998
<CAPTION>
Schwab Columbia Dodge Dodge Davis Stein Roe
Institutn'l Fixed Income & Cox & Cox New York Capital
Advantage Securities Balanced Stock Venture Opportuni-
Money Fund Fund Fund Fund Fund ties Fund
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Money market funds $ 2,024,987 $ - $ - $ - $ - $ -
Mutual funds - 546,197 3,520,134 6,662,405 4,770,025 3,015,186
AFLAC Incorporated
common stock - - - - - -
Participant notes
receivable - - - - - -
---------- ---------- ---------- ---------- ---------- ----------
Total investments 2,024,987 546,197 3,520,134 6,662,405 4,770,025 3,015,186
Receivables:
Employer contributions 13,927 2,971 11,458 12,779 15,072 13,918
Accrued interest
and dividends - - - - - -
Loan repayments 3,089 854 4,461 5,489 4,959 4,149
Cash 37,828 11,140 43,421 49,985 55,656 55,561
Excess employee
contributions payable (246) (94) (443) (592) (579) (568)
Other liabilities 68 44 1,995 459 603 312
---------- ---------- ---------- ---------- ---------- ----------
Net assets available
for plan benefits $ 2,079,653 $ 561,112 $ 3,581,026 $ 6,730,525 $ 4,845,736 $ 3,088,558
========== ========== ========== ========== ========== ==========
(Continued on following page)
7
</TABLE>
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Net Assets Available for Plan Benefits, Investment Fund Information (continued)
December 31, 1998
<CAPTION>
Templeton AFLAC Participant Cash
Foreign Incorporated Notes and
Fund Common Stock Receivables Other Totals
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments:
Money market funds $ - $ - $ - $ - $ 2,024,987
Mutual funds 629,365 - - - 19,143,312
AFLAC Incorporated
common stock - 29,150,111 - - 29,150,111
Participant notes
receivable - - 1,799,636 - 1,799,636
---------- ---------- ---------- ---------- ----------
Total investments 629,365 29,150,111 1,799,636 - 52,118,046
Receivables:
Employer contributions 2,248 53,941 - - 126,314
Accrued interest and
dividends - - 14,269 - 14,269
Loan repayments 734 27,166 (50,901) - -
Cash 8,217 213,510 - 116,026 591,344
Excess employee
contributions payable (108) (1,997) - - (4,627)
Other liabilities 1,624 28,547 2,222 (116,026) (80,152)
---------- ---------- ---------- ---------- ----------
Net assets available
for plan benefits $ 642,080 $29,471,278 $ 1,765,226 $ - $52,765,194
========== ========== ========== ========== ==========
8
</TABLE>
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Net Assets Available for Plan Benefits, Investment Fund Information
December 31, 1997
<CAPTION>
Schwab Columbia Dodge Dodge Davis Stein Roe
Institutn'l Fixed Income & Cox & Cox New York Capital
Advantage Securities Balanced Stock Venture Opportuni-
Money Fund Fund Fund Fund Fund ties Fund
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investments:
Money market funds $ 1,781,116 $ - $ - $ - $ - $ -
Mutual funds - 392,178 3,046,464 6,248,225 3,746,842 2,711,392
AFLAC Incorporated
common stock - - - - - -
Participant notes
receivable - - - - - -
------------ ------------ ------------ ------------ ------------ ------------
Total investments 1,781,116 392,178 3,046,464 6,248,225 3,746,842 2,711,392
Receivables:
Employer contributions 5,163 1,911 8,659 11,114 10,508 12,496
Cash 22,018 8,505 39,079 48,266 46,652 53,290
Excess employee
contributions payable (714) (158) (1,221) (2,505) (1,502) (1,087)
Other liabilities:
Accrued transfers - - - - - -
Other (9,222) 809 530 3,202 1,060 1,094
------------ ------------ ------------ ------------ ------------ ------------
Net assets available
for plan benefits $ 1,798,361 $ 403,245 $ 3,093,511 $ 6,308,302 $ 3,803,560 $ 2,777,185
============ ============ ============ ============ ============ ============
(Continued on following page)
9
</TABLE>
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Net Assets Available for Plan Benefits, Investment Fund Information (continued)
December 31, 1997
<CAPTION>
Templeton AFLAC Participant Cash
Foreign Incorporated Notes and
Fund Common Stock Receivables Other Totals
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Investments:
Money market funds $ - $ - $ - $ - $ 1,781,116
Mutual funds 520,109 - - - 16,665,210
AFLAC Incorporated
common stock - 15,604,603 - - 15,604,603
Participant notes
receivable - - 938,509 - 938,509
------------ ------------ ------------ ------------ ------------
Total investments 520,109 15,604,603 938,509 - 34,989,438
Receivables:
Employer contributions 2,075 37,623 - - 89,549
Cash 8,713 164,305 - 894,601 1,285,429
Excess employee
contributions payable (208) (6,255) - - (13,650)
Other liabilities:
Accrued transfers - - - (880,549) (880,549)
Other - 5,393 (13,796) (14,052) (24,982)
------------ ------------ ------------ ------------ ------------
Net assets available
for plan benefits $ 530,689 $ 15,805,669 $ 924,713 $ - $ 35,445,235
============ ============ ============ ============ ============
10
</TABLE>
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Changes in Net Assets Available for Plan Benefits, Investment Fund Information
Year Ended December 31, 1998
<CAPTION>
Schwab Columbia Dodge Dodge Davis
Instit'nl Fixed In- & Cox & Cox New York
Advantage come Secu- Balanced Stock Venture
Money Fnd rities Fnd Fund Fund Fund
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Contributions:
Participant withholdings $ 206,101 $ 78,461 $ 371,219 $ 495,921 $ 485,798
Participant transfers from other plans 14,015 10,578 39,770 10,349 34,354
Employer matching 155,716 39,485 192,379 241,802 239,549
Interest and dividend income 105,121 39,579 311,672 615,643 106,997
Net realized gains on sale of investments - 2,777 35,396 81,216 126,028
Change in net unrealized appreciation
(depreciation) on investments - (4,567) (121,876) (363,393) 361,660
Transfers 57,173 19,211 (156,346) (268,315) 7,672
Distributions to participants (210,867) (21,166) (167,223) (262,855) (261,644)
Forfeitures (11,464) (833) (4,534) (3,277) (8,160)
Participant notes receivable:
New loans (62,238) (13,656) (97,670) (175,306) (94,039)
Loan payments 27,735 7,998 84,728 50,438 43,961
---------- ---------- ---------- ---------- ----------
Net change 281,292 157,867 487,515 422,223 1,042,176
Net assets available for plan benefits at
beginning of year 1,798,361 403,245 3,093,511 6,308,302 3,803,560
---------- ---------- ---------- ---------- ----------
Net assets available for plan benefits at
end of year $ 2,079,653 $ 561,112 $ 3,581,026 $ 6,730,525 $ 4,845,736
========== ========== ========== ========== ==========
(Continued on following page)
11
</TABLE>
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Changes in Net Assets Available for Plan Benefits, Investment Fund Information (continued)
Year Ended December 31, 1998
<CAPTION>
Stein Roe
Capital Templeton AFLAC Partici-
Opportuni- Foreign Incorporated pant Notes
ties Fund Fund Common Stock Receivable Totals
---------- ---------- ------------ ---------- -----------
<S> <C> <C> <C> <C> <C>
Contributions:
Participant withholdings $ 475,958 $ 90,635 $ 1,675,217 $ - $ 3,879,310
Participant transfers from other plans 20,267 1,666 86,500 - 217,499
Employer matching 238,026 44,899 900,087 - 2,051,943
Interest and dividend income 24 65,827 151,966 133,336 1,530,165
Net realized gains on sale of investments 48,675 (6,625) 1,521,557 - 1,809,024
Change in net unrealized appreciation
(depreciation) on investments (69,772) (95,886) 10,365,950 - 10,072,116
Transfers (309,606) 23,825 626,386 - -
Distributions to participants (54,640) (8,613) (1,129,767) (52,647) (2,169,422)
Forfeitures (4,563) (697) (36,964) (184) (70,676)
Participant notes receivable:
New loans (68,655) (10,519) (796,139) 1,318,222 -
Loan payments 35,659 6,879 300,816 (558,214) -
---------- ---------- ------------ ---------- ----------
Net change 311,373 111,391 13,665,609 840,513 17,319,959
Net assets available for plan benefits at
beginning of year 2,777,185 530,689 15,805,669 924,713 35,445,235
---------- ---------- ------------ ---------- ----------
Net assets available for plan benefits at
end of year $ 3,088,558 $ 642,080 $ 29,471,278 $ 1,765,226 $52,765,194
========== ========== ============ ========== ==========
12
</TABLE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Changes in Net Assets Available for Plan Benefits, Investment Fund Information
Year Ended December 31, 1997
<CAPTION>
Schwab Columbia Dodge Dodge Davis Stein Roe
Instit'nl Fixed In- & Cox & Cox New York Capital Templeton AFLAC
Advantage come Secu- Balanced Stock Venture Opportuni- Foreign Incorporated
Money Fnd rities Fnd Fund Fund Fund ties Fund Fund Common Stock
---------- ---------- ---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Contributions:
Participant with-
holdings $ 210,597 $ 68,373 $ 371,717 $ 535,040 $ 445,964 $ 483,448 $ 101,199 $ 1,366,698
Participant transfers
from other plans 7,840 427 22,220 15,602 32,375 14,377 2,709 37,912
Employer matching 83,980 28,209 149,617 221,192 181,934 196,460 41,115 574,149
Interest and dividend
income 115,212 26,019 282,041 520,241 176,872 204 54,242 167,225
Net realized gains on
sale of investments - 2,208 211,598 650,251 228,765 5,237 15,065 3,480,731
Change in net unrealized
appreciation (depre-
ciation) on investments - 7,554 215,516 715,181 535,151 192,466 (38,707) (379,268)
Transfer of Broadcast
Division Plan assets (680,125) (136,198) (1,606,597) (2,938,368) (1,071,695) (564,851) (187,002) (3,172,665)
Transfers 2,589,145 474,215 3,854,490 7,334,242 3,656,712 2,556,488 570,935 (217,361)
Distributions to
participants (397,311) (55,341) (318,224) (615,413) (297,525) (54,403) (11,801) (1,404,096)
Forfeitures (71,668) (64) (3,506) (9,189) (4,422) (4,865) (345) (14,645)
Participant notes receivable:
New loans (67,364) (15,719) (107,068) (139,425) (92,856) (62,256) (18,506) (553,978)
Loan payments 8,055 3,562 21,707 18,948 12,285 14,880 1,785 75,865
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
Net change 1,798,361 403,245 3,093,511 6,308,302 3,803,560 2,777,185 530,689 (39,433)
Net assets available
for plan benefits at
beginning of year - - - - - - - 15,845,102
---------- ---------- ---------- ---------- ---------- ---------- ---------- -----------
Net assets available
for plan benefits at
end of year $ 1,798,361 $ 403,245 $ 3,093,511 $ 6,308,302 $ 3,803,560 $ 2,777,185 $ 530,689 $15,805,669
========== ========== ========== ========== ========== ========== ========== ===========
(Continued on following page)
</TABLE> 13
<PAGE>
<TABLE>
AFLAC INCORPORATED 401(k) PLAN
Notes to Financial Statements
Changes in Net Assets Available for Plan Benefits, Investment Fund Information (continued)
Year Ended December 31, 1997
<CAPTION>
Partici- GIC
pant Notes Income American Washington Fidelity
Receivable Fund 4 Balanced Mutual Magellan Totals
---------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participant with-
holdings $ - $ - $ - $ - $ - $ 3,583,036
Participant transfers
from other plans - - - - - 133,462
Employer matching - 59,875 - - - 1,536,531
Interest and dividend
income 43,328 5,655 - - - 1,391,039
Net realized gains on
sale of investments - - 578,509 2,560,826 590,291 8,323,481
Change in net unrealized
appreciation (depre-
ciation) on investments - - (452,725) (2,144,200) (426,133) (1,775,165)
Transfer of Broadcast
Division Plan assets - - - - - (10,357,501)
Transfers - (3,259,397) (4,128,191) (9,288,174) (4,143,104) -
Distributions to
participants (18,633) 8,600 10,766 21,574 16,755 (3,115,052)
Forfeitures (67) - - - - (108,771)
Participant notes receivable:
New loans 1,057,172 - - - - -
Loan payments (157,087) - - - - -
---------- ---------- ---------- ---------- ---------- -----------
Net change 924,713 (3,185,267) (3,991,641) (8,849,974) (3,962,191) (388,940)
Net assets available
for plan benefits at
beginning of year - 3,185,267 3,991,641 8,849,974 3,962,191 35,834,175
---------- ---------- ---------- ---------- ---------- -----------
Net assets available
for plan benefits at
end of year $ 924,713 $ - $ - $ - $ - $ 35,445,235
========== ========== ========== ========== ========== ===========
14
</TABLE>
<PAGE>
(6) SUBSEQUENT EVENTS
Effective January 1, 1999, the Plan was amended to change the name of
the Plan to the AFLAC Incorporated 401(k) Savings and Profit Sharing Plan.
In addition, the Plan was amended to provide additional deferral options for
employee profit sharing bonuses and to lower the retirement age from 60
years to 59 1/2 years. These changes are not expected to alter the
qualified status of the Plan.
(7) YEAR 2000 (unaudited)
The Company has received Year 2000 Disclosures from the plan
administrator and trustee. They have indicated that they are currently in
the remediation and testing phase of their Year 2000 readiness plans with
testing to continue through the third quarter of 1999. In addition, they
are in the process of developing and refining contingency plans for their
business systems and processes. The Company will continue to monitor their
progress and is attempting to set up data exchange tests for later in 1999.
Due to the uncertainty of potential year 2000 problems which are
outside the scope of the Company's control, such as public utilities,
financial institutions, governmental functions, and various other vendors on
which the Company relies, the Company is unable to reasonably predict the
possible exposure and impact of year 2000 failure on the plan.
15
<PAGE>
Schedule 1
AFLAC INCORPORATED 401(k) PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
Description Shares/Units Cost Current Value
- --------------- ------------ -------- -------------
Money Market Funds
- ------------------
Schwab Institutional
Advantage Money Fund 2,024,987 $ 2,024,987 $ 2,024,987
---------- ----------
Mutual Funds
- ------------
Columbia Fixed Income
Securities Fund 40,700 543,210 546,197
Davis New York Venture Fund 190,471 3,873,213 4,770,025
Dodge & Cox Balanced Fund 53,976 3,426,494 3,520,134
Dodge & Cox Stock Fund 73,467 6,310,617 6,662,405
Stein Roe Capital
Opportunities Fund 102,672 2,892,492 3,015,186
Templeton Foreign Fund 75,014 763,959 629,365
---------- ----------
Total Mutual Funds 17,809,985 19,143,312
---------- ----------
Common Stock
- ------------
AFLAC Incorporated* 664,390 11,266,152 29,150,111
Participant notes receivable 1,799,636 1,799,636 1,799,636
---------- ----------
Total Investments $32,900,760 $52,118,046
========== ==========
* Indicates party-in-interest per Erisa Section 406.
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<PAGE>
<TABLE>
Schedule 2
AFLAC INCORPORATED 401(k) PLAN
Item 27d - Schedule of Reportable Transactions
Year Ended December 31, 1998
<CAPTION>
Current Value
Purchase Selling of Asset on Net
Description Price Price Cost Transaction Date Gain/(Loss)
--------------- ---------- ---------- ---------- ---------------- -----------
<S> <C> <C> <C> <C> <C>
Purchases:
AFLAC Incorporated Common Stock* $ 4,468,549 $ - $ 4,468,549 $ 4,468,549 $ -
Schwab Institutional Advantage
Money Fund 1,106,496 - 1,106,496 1,106,496 -
Columbia Fixed Income Securities Fund 345,508 - 345,508 345,508 -
Dodge & Cox Balanced Fund 1,152,602 - 1,152,602 1,152,602 -
Dodge & Cox Stock Fund 1,625,221 - 1,625,221 1,625,221 -
Davis New York Venture Fund 1,412,961 - 1,412,961 1,412,961 -
Stein Roe Capital Opportunities Fund 897,273 - 897,273 897,273 -
Templeton Foreign Fund 318,892 - 318,892 318,892 -
Sales:
AFLAC Incorporated Common Stock* - 3,019,025 1,497,468 3,019,025 1,521,557
Schwab Institutional Advantage
Money Fund - 862,625 862,625 862,625 -
Columbia Fixed Income Securities Fund - 189,699 186,922 189,699 2,777
Dodge & Cox Balanced Fund - 592,452 557,056 592,452 35,396
Dodge & Cox Stock Fund - 928,864 847,648 928,864 81,216
Davis New York Venture Fund - 877,467 751,439 877,467 126,028
Stein Roe Capital Opportunities Fund - 572,382 523,707 572,382 48,675
Templeton Foreign Fund - 107,124 113,749 107,124 (6,625)
* Indicates party-in-interest per Erisa Section 406.
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</TABLE>
<PAGE>
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
The Administrative Committee
AFLAC Incorporated 401(k) Plan:
We consent to incorporation by reference in Registration Statement
No. 33-41552 on Form S-8 of AFLAC Incorporated of our report dated
May 28, 1999, relating to the statements of net assets available for plan
benefits of the AFLAC Incorporated 401(k) Plan as of December 31, 1998 and
1997, and the related statements of changes in net assets available for plan
benefits for the years then ended, and all related schedules, which report
appears in the December 31, 1998 annual report on Form 11-K of AFLAC
Incorporated.
KPMG LLP
Atlanta, Georgia
June 23, 1999
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