MetLife 2000 Annual Report Download - page 46

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Changes in mortgage loan valuation allowances were as follows:
Years ended December 31,
2000 1999 1998
(Dollars in millions)
Balance at January 1 ********************************************************************** $ 90 $ 173 $ 289
Additions********************************************************************************* 38 40 40
Deductions for writedowns and dispositions**************************************************** (74) (123) (130)
Acquisitions (dispositions) of affiliates********************************************************** 29 — (26)
Balance at December 31 ******************************************************************* $ 83 $ 90 $ 173
A portion of the Company’s mortgage loans on real estate was impaired and consisted of the following:
December 31,
2000 1999
(Dollars in
millions)
Impaired mortgage loans with valuation allowances ************************************************************ $592 $540
Impaired mortgage loans without valuation allowances ********************************************************* 330 437
Total *********************************************************************************************** 922 977
Less: Valuation allowances ******************************************************************************** 77 83
Impaired mortgage loans ****************************************************************************** $845 $894
The average investment in impaired mortgage loans on real estate was $912 million, $1,134 million and $1,282 million for the years ended
December 31, 2000, 1999 and 1998, respectively. Interest income on impaired mortgage loans was $76 million, $101 million and $109 million for the
years ended December 31, 2000, 1999 and 1998, respectively.
The investment in restructured mortgage loans on real estate was $784 million and $980 million at December 31, 2000 and 1999, respectively.
Interest income of $62 million, $80 million and $74 million was recognized on restructured loans for the years ended December 31, 2000, 1999 and
1998, respectively. Gross interest income that would have been recorded in accordance with the original terms of such loans amounted to $74 million,
$92 million and $87 million for the years ended December 31, 2000, 1999 and 1998, respectively.
Mortgage loans on real estate with scheduled payments of 60 days (90 days for agriculture mortgages) or more past due or in foreclosure had an
amortized cost of $40 million and $44 million at December 31, 2000 and 1999, respectively.
Real Estate and Real Estate Joint Ventures
Real estate and real estate joint ventures consisted of the following:
December 31,
2000 1999
(Dollars in millions)
Real estate and real estate joint ventures held-for-investment **************************************** $5,495 $5,440
Impairments ********************************************************************************* (272) (289)
Total *********************************************************************************** 5,223 5,151
Real estate and real estate joint ventures held-for-sale ********************************************** 417 719
Impairments ********************************************************************************* (97) (187)
Valuation allowance *************************************************************************** (39) (34)
Total *********************************************************************************** 281 498
Real estate and real estate joint ventures ************************************************* $5,504 $5,649
Accumulated depreciation on real estate was $2,337 million and $2,235 million at December 31, 2000 and 1999, respectively. Related
depreciation expense was $224 million, $247 million and $282 million for the years ended December 31, 2000, 1999 and 1998, respectively.
Real estate and real estate joint ventures were categorized as follows:
December 31,
2000 1999
Amount Percent Amount Percent
(Dollars in millions)
Office *************************************************************************** $3,635 66% $3,846 68%
Retail**************************************************************************** 586 10 587 10
Apartments*********************************************************************** 558 10 474 8
Land **************************************************************************** 202 4 258 5
Agriculture *********************************************************************** 84 2 96 2
Other**************************************************************************** 439 8 388 7
Total ******************************************************************** $5,504 100% $5,649 100%
MetLife, Inc. F-15