MetLife 2006 Annual Report Download - page 160

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The following table presents the amounts related to the operations of MetLife Indonesia that have been combined with the discontinued
real estate operations in the consolidated statements of income:
2005 2004
Years Ended
December 31,
(In millions)
Revenues.................................................................... $ 5 $ 5
Expenses.................................................................... 10 14
Incomebeforeprovisionforincometax................................................. (5) (9)
Provisionforincometax........................................................... — —
Lossfromdiscontinuedoperations,netofincometax...................................... (5) (9)
Netinvestmentgain,netofincometax................................................. 10 —
Income(loss)fromdiscontinuedoperations,netofincometax............................... $ 5 $(9)
On January 31, 2005, the Company completed the sale of SSRM to a third party for $328 million in cash and stock. As a result of the
sale of SSRM, the Company recognized income from discontinued operations of $157 million, net of income tax, comprised of a realized
gain of $165 million, net of income tax, and an operating expense related to a lease abandonment of $8 million, net of income tax. Under
the terms of the sale agreement, MetLife will have an opportunity to receive additional payments based on, among other things, certain
revenue retention and growth measures. The purchase price is also subject to reduction over five years, depending on retention of certain
MetLife-related business. Also under the terms of such agreement, MetLife had the opportunity to receive additional consideration for the
retention of certain customers for a specific period in 2005. Upon finalization of the computation, the Company received payments of
$30 million, net of income tax, in the second quarter of 2006 and $12 million, net of income tax, in the fourth quarter of 2005 due to the
retention of these specific customer accounts. In the fourth quarter of 2006, the Company eliminated $4 million of a liability that was
previously recorded with respect to the indemnities provided in connection with the sale of SSRM, resulting in a benefit to the Company of
$2 million, net of income tax. The Company believes that future payments relating to these indemnities are not probable.
The Company reported the operations of SSRM in discontinued operations. Additionally, the sale of SSRM resulted in the elimination of
the Company’s Asset Management segment. The remaining asset management business, which is insignificant, is reported in Corporate &
Other. The Company’s discontinued operations for the year ended December 31, 2005 included expenses of $6 million, net of income tax,
related to the sale of SSRM.
The operations of SSRM include affiliated revenues of $5 million and $59 million for the years ended December 31, 2005 and 2004,
respectively, related to asset management services provided by SSRM to the Company that have not been eliminated from discontinued
operations as these transactions continued after the sale of SSRM. The following table presents the amounts related to operations of
SSRM that have been combined with the discontinued real estate operations in the consolidated statements of income:
2006 2005 2004
Years Ended
December 31,
(In millions)
Revenuesfromdiscontinuedoperations........................................... $— $ 19 $328
Expensesfromdiscontinuedoperations........................................... — 38 296
Incomefromdiscontinuedoperationsbeforeprovisionforincometax........................ — (19) 32
Provisionforincometax ..................................................... — (5) 13
Income(loss)fromdiscontinuedoperations,netofincometax........................... — (14) 19
Netinvestmentgain,netofincometax............................................ 32 177 —
Incomefromdiscontinuedoperations,netofincometax............................... $32 $163 $ 19
23. Fair Value Information
The estimated fair value of financial instruments have been determined by using available market information and the valuation
methodologies described below. Considerable judgment is often required in interpreting market data to develop estimates of fair value.
Accordingly, the estimates presented herein may not necessarily be indicative of amounts that could be realized in a current market
exchange. The use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.
F-77MetLife, Inc.
METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)