MetLife 2001 Annual Report Download - page 57

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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 $53 million and $40 million at December 31, 2001 and 2000, respectively.
Real Estate and Real Estate Joint Ventures
Real estate and real estate joint ventures consisted of the following:
December 31,
2001 2000
(Dollars in millions)
Real estate and real estate joint ventures held-for-investment **************************************** $5,877 $5,495
Impairments ********************************************************************************* (244) (272)
Total *********************************************************************************** 5,633 5,223
Real estate and real estate joint ventures held-for-sale ********************************************** 220 417
Impairments ********************************************************************************* (88) (97)
Valuation allowance *************************************************************************** (35) (39)
Total *********************************************************************************** 97 281
Real estate and real estate joint ventures ************************************************* $5,730 $5,504
Accumulated depreciation on real estate was $2,504 million and $2,337 million at December 31, 2001 and 2000, respectively. Related
depreciation expense was $220 million, $224 million and $247 million for the years ended December 31, 2001, 2000 and 1999, respectively.
Real estate and real estate joint ventures were categorized as follows:
December 31,
2001 2000
Amount Percent Amount Percent
(Dollars in millions)
Office *************************************************************************** $3,637 63% $3,635 66%
Retail**************************************************************************** 780 14% 586 10%
Apartments*********************************************************************** 740 13% 558 10%
Land **************************************************************************** 184 3% 202 4%
Agriculture *********************************************************************** 14 0% 84 2%
Other**************************************************************************** 375 7% 439 8%
Total ******************************************************************** $5,730 100% $5,504 100%
The Company’s real estate holdings are primarily located throughout the United States. At December 31, 2001, approximately 27%, 23% and 12%
of the Company’s real estate holdings were located in New York, California and Texas, respectively.
Changes in real estate and real estate joint ventures held-for-sale valuation allowance were as follows:
Years ended December 31,
2001 2000 1999
(Dollars in millions)
Balance at January 1 **************************************************************************** $39 $34 $33
Additions charged to operations ******************************************************************* 16 17 36
Deductions for writedowns and dispositions ********************************************************* (20) (12) (35)
Balance at December 31 ************************************************************************* $35 $39 $34
Investment income related to impaired real estate and real estate joint ventures held-for-investment was $57 million, $45 million and $61 million for
the years ended December 31, 2001, 2000 and 1999, respectively. Investment (expense) income related to impaired real estate and real estate joint
ventures held-for-sale was $(4) million, $18 million and $14 million for the years ended December 31, 2001, 2000 and 1999, respectively. The carrying
value of non-income producing real estate and real estate joint ventures was $14 million and $15 million at December 31, 2001 and 2000, respectively.
The Company owned real estate acquired in satisfaction of debt of $49 million and $66 million at December 31, 2001 and 2000, respectively.
Leveraged Leases
Leveraged leases, included in other invested assets, consisted of the following:
December 31,
2001 2000
(Dollars in millions)
Investment ********************************************************************************** $1,070 $1,002
Estimated residual values ********************************************************************** 505 546
Total *********************************************************************************** 1,575 1,548
Unearned income **************************************************************************** (404) (384)
Leveraged leases ************************************************************************ $1,171 $1,164
MetLife, Inc.
F-18