MetLife 2002 Annual Report Download - page 65

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METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Real Estate and Real Estate Joint Ventures
Real estate and real estate joint ventures consisted of the following:
December 31,
2002 2001
(Dollars in millions)
Real estate and real estate joint ventures held-for-investment **************************************** $4,684 $4,211
Impairments ********************************************************************************* (188) (157)
Total *********************************************************************************** 4,496 4,054
Real estate held-for-sale *********************************************************************** 327 1,888
Impairments ********************************************************************************* (82) (177)
Valuation allowance *************************************************************************** (16) (35)
Total *********************************************************************************** 229 1,676
Real estate and real estate joint ventures ************************************************* $4,725 $5,730
Accumulated depreciation on real estate was $1,951 million and $2,504 million at December 31, 2002 and 2001, respectively. Related
depreciation expense was $227 million, $220 million and $224 million for the years ended December 31, 2002, 2001 and 2000, respectively. These
amounts include $48 million, $79 million and $80 million of depreciation expense related to discontinued operations for the years ended December 31,
2002, 2001 and 2000, respectively.
Real estate and real estate joint ventures were categorized as follows:
December 31,
2002 2001
Amount Percent Amount Percent
(Dollars in millions)
Office *************************************************************************** $2,733 58% $3,637 63%
Retail**************************************************************************** 699 15 780 14
Apartments*********************************************************************** 835 18 740 13
Land **************************************************************************** 87 2 184 3
Agriculture *********************************************************************** 7 — 14 —
Other**************************************************************************** 364 7 375 7
Total ******************************************************************** $4,725 100% $5,730 100%
The Company’s real estate holdings are primarily located throughout the United States. At December 31, 2002, approximately 37%, 21% and 13%
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,
2002 2001 2000
(Dollars in millions)
Balance at January 1 **************************************************************************** $35 $39 $34
Additions charged to operations ******************************************************************* 21 16 17
Deductions for writedowns and dispositions ********************************************************* (40) (20) (12)
Balance at December 31 ************************************************************************* $16 $35 $39
Investment income related to impaired real estate and real estate joint ventures held-for-investment was $40 million, $22 million and $11 million for
the years ended December 31, 2002, 2001 and 2000, respectively. Investment income related to impaired real estate and real estate joint ventures held-
for-sale was $11 million, $31 million and $52 million for the years ended December 31, 2002, 2001 and 2000, respectively. The carrying value of non-
income producing real estate and real estate joint ventures was $63 million and $14 million at December 31, 2002 and 2001, respectively.
The Company owned real estate acquired in satisfaction of debt of $10 million and $49 million at December 31, 2002 and 2001, respectively.
Leveraged Leases
Leveraged leases, included in other invested assets, consisted of the following:
December 31,
2002 2001
(Dollars in millions)
Investment ********************************************************************************** $ 985 $1,070
Estimated residual values ********************************************************************** 428 505
Total *********************************************************************************** 1,413 1,575
Unearned income **************************************************************************** (368) (404)
Leveraged leases ************************************************************************ $1,045 $1,171
MetLife, Inc. F-21