MetLife 2003 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,
2003 2002
(Dollars in millions)
Real estate and real estate joint ventures held-for-investment **************************************** $4,997 $4,197
Impairments ********************************************************************************* (283) (271)
Total *********************************************************************************** 4,714 3,926
Real estate held-for-sale *********************************************************************** 101 815
Impairments ********************************************************************************* —(5)
Valuation allowance *************************************************************************** (12) (11)
Total *********************************************************************************** 89 799
Real estate and real estate joint ventures ************************************************* $4,803 $4,725
Accumulated depreciation on real estate was $1,955 million and $1,951 million at December 31, 2003 and 2002, respectively. The related
depreciation expense was $183 million, $227 million and $220 million for the years ended December 31, 2003, 2002 and 2001, respectively. These
amounts include $15 million, $66 million and $93 million of depreciation expense related to discontinued operations for the years ended December 31,
2003, 2002 and 2001, respectively.
Real estate and real estate joint ventures were categorized as follows:
December 31,
2003 2002
Amount Percent Amount Percent
(Dollars in millions)
Office *************************************************************************** $2,775 58% $2,733 58%
Retail**************************************************************************** 667 14 699 15
Apartments*********************************************************************** 861 18 835 18
Land **************************************************************************** 81 2 87 2
Agriculture *********************************************************************** 1— 7—
Other**************************************************************************** 418 8 364 7
Total ******************************************************************** $4,803 100% $4,725 100%
The Company’s real estate holdings are primarily located throughout the United States. At December 31, 2003, approximately 28%, 17% and 16%
of the Company’s real estate holdings were located in New York, California and Illinois, respectively.
Changes in real estate and real estate joint ventures held-for-sale valuation allowance were as follows:
Years Ended December 31,
2003 2002 2001
(Dollars in millions)
Balance at January 1 **************************************************************************** $11 $35 $39
Additions charged to investment income ************************************************************ 17 21 16
Deductions for writedowns and dispositions ********************************************************* (16) (45) (20)
Balance at December 31 ************************************************************************* $12 $11 $35
Investment income related to impaired real estate and real estate joint ventures held-for-investment was $35 million, $48 million and $34 million for
the years ended December 31, 2003, 2002 and 2001, respectively. There was no investment income related to impaired real estate and real estate joint
ventures held-for-sale for the year ended December 31, 2003. Investment income related to impaired real estate and real estate joint ventures held-for-
sale was $3 million and $19 million for the years ended December 31, 2002 and 2001, respectively. The carrying value of non-income producing real
estate and real estate joint ventures was $77 million and $63 million at December 31, 2003 and 2002, respectively.
The Company owned real estate acquired in satisfaction of debt of $3 million and $10 million at December 31, 2003 and 2002, respectively.
Leveraged Leases
Leveraged leases, included in other invested assets, consisted of the following:
December 31,
2003 2002
(Dollars in millions)
Investment ********************************************************************************** $ 974 $ 985
Estimated residual values ********************************************************************** 386 428
Total *********************************************************************************** 1,360 1,413
Unearned income **************************************************************************** (380) (368)
Leveraged leases ************************************************************************ $ 980 $1,045
MetLife, Inc.
F-20