MetLife 2000 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2000 MetLife annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Short-term and Long-term Debt, Payables Under Securities Loaned Transactions and Company-Obligated Mandatorily Redeemable
Securities of Subsidiary Trusts
The fair values of short-term and long-term debt, payables under securities loaned transactions and Company-obligated mandatorily redeemable
securities of subsidiary trusts are determined by discounting expected future cash flows, using risk rates currently available for debt with similar terms and
remaining maturities.
Derivative Instruments
The fair value of derivative instruments, including financial futures, financial forwards, interest rate and foreign currency swaps, floors, foreign
exchange contracts, caps and options are based upon quotations obtained from dealers or other reliable sources. See Note 3 for derivative fair value
disclosures.
5. Employee Benefit Plans
Pension Benefit and Other Benefit Plans
The Company is both the sponsor and administrator of defined benefit pension plans covering all eligible employees and sales representatives of
Metropolitan Life and certain of its subsidiaries. Retirement benefits are based upon years of credited service and final average earnings history.
The Company also provides certain postemployment benefits and certain postretirement health care and life insurance benefits for retired employees
through insurance contracts. Substantially all of the Company’s employees may, in accordance with the plans applicable to the postretirement benefits,
become eligible for these benefits if they attain retirement age, with sufficient service, while working for the Company.
December 31,
Pension Benefits Other Benefits
2000 1999 2000 1999
(Dollars in millions)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year ********************************************* $3,737 $3,920 $1,483 $1,708
Service cost************************************************************************* 98 100 29 28
Interest cost************************************************************************* 291 271 113 107
Acquisitions ************************************************************************* 107 — 37
Actuarial losses (gains) **************************************************************** 176 (260) 59 (281)
Curtailments and terminations ********************************************************** (3) (22) 2 10
Change in benefits ******************************************************************* (2) — (86) —
Benefits paid ************************************************************************ (259) (272) (95) (89)
Projected benefit obligation at end of year ************************************************** 4,145 3,737 1,542 1,483
Change in plan assets:
Contract value of plan assets at beginning of year ******************************************* 4,726 4,403 1,199 1,123
Actual return on plan assets *********************************************************** 54 575 179 141
Acquisitions ************************************************************************* 79 — —
Employer contribution ***************************************************************** 19 20 3 24
Benefits paid ************************************************************************ (259) (272) (63) (89)
Contract value of plan assets at end of year ************************************************ 4,619 4,726 1,318 1,199
Over (under) funded ********************************************************************** 474 989 (224) (284)
Unrecognized net asset at transition********************************************************* (31) (66) — —
Unrecognized net actuarial losses (gains)***************************************************** 2 (564) (478) (487)
Unrecognized prior service cost ************************************************************ 109 127 (89) (2)
Prepaid (accrued) benefit cost************************************************************** $ 554 $ 486 $ (791) $ (773)
Qualified plan prepaid pension cost ********************************************************* $ 775 $ 632
Non-qualified plan accrued pension cost ***************************************************** (263) (182)
Unamortized prior service cost ************************************************************* 14 17
Accumulated other comprehensive income *************************************************** 28 19
Prepaid benefit cost ********************************************************************** $ 554 $ 486
The aggregate projected benefit obligation and aggregate contract value of plan assets for the pension plans were as follows:
Non-Qualified
Qualified Plan Plan Total
2000 1999 2000 1999 2000 1999
(Dollars in millions)
Aggregate projected benefit obligation ********************************************* $(3,775) $(3,482) $(370) $(255) $(4,145) $(3,737)
Aggregate contract value of plan assets (principally Company contracts)***************** 4,619 4,726 — — 4,619 4,726
Over (under) funded ************************************************************ $ 844 $ 1,244 $(370) $(255) $ 474 $ 989
MetLife, Inc.
F-20