MetLife 2006 Annual Report Download - page 162

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Cash and Cash Equivalents and Short-term Investments
The carrying values for cash and cash equivalents and short-term investments approximated fair values due to the short-term maturities
of these instruments.
Accrued Investment Income
The carrying value for accrued investment income approximates fair value.
Policyholder Account Balances
The fair value of PABs which have final contractual maturities are estimated by discounting expected future cash flows based upon
interest rates currently being offered for similar contracts with maturities consistent with those remaining for the agreements being valued.
The fair value of PABs without final contractual maturities are assumed to equal their current net surrender value.
Short-term and Long-term Debt, Junior Subordinated Debt Securities and Shares Subject to Mandatory Redemption
The fair values of short-term and long-term debt, junior subordinated debt securities,and shares subject to mandatory redemption are
determined by discounting expected future cash flows using risk rates currently available for debt with similar terms and remaining
maturities.
Payables for Collateral Under Securities Loaned and Other Transactions
The carrying value for payables for collateral under securities loaned and other transactions approximate fair value.
Derivative Financial Instruments
The fair value of derivative financial instruments, including financial futures, financial forwards, interest rate, credit default and foreign
currency swaps, foreign currency forwards, caps, floors, and options are based upon quotations obtained from dealers or other reliable
sources. See Note 4 for derivative fair value disclosures.
24. Subsequent Events
On February 27, 2007, the Holding Company’s Board of Directors authorized an additional $1 billion common stock repurchase
program. See Note 17 for further information.
On February 16, 2007, the Holding Company’s Board of Directors announced dividends of $0.3975000 per share, for a total of
$10 million, on its Series A preferred shares, and $0.4062500 per share, for a total of $24 million, on its Series B preferred shares, subject
to the final confirmation that it has met the financial tests specified in the Series A and Series B preferred shares, which the Holding
Company anticipates will be made on or about March 5, 2007, the earliest date permitted in accordance with the terms of the securities.
Both dividends will be payable March 15, 2007 to shareholders of record as of February 28, 2007.
F-79MetLife, Inc.
METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)