MetLife 2007 Annual Report Download - page 174

The following tables present the amounts related to the operations and financial position of MetLife Australia’s annuities and pension
businesses:
2007 2006 2005
Years Ended
December 31,
(In millions)
Revenues............................................................... $71 $100 $50
Expenses ............................................................... 58 89 41
Incomebeforeprovisionforincometax............................................ 13 11 9
Provisionforincometax...................................................... 4 3 3
Netinvestmentgain(loss),netofincometax ........................................ (4) 20 (5)
Incomefromdiscontinuedoperations,netofincometax................................ $ 5 $ 28 $ 1
December 31, 2006
(In millions)
Fixedmaturitysecurities........................................................ $1,500
Equitysecurities............................................................. 37
Deferredpolicyacquisitioncosts.................................................. 13
Otherassets............................................................... 13
Totalassetsheld-for-sale...................................................... $1,563
Policyholderaccountbalances ................................................... $1,595
Totalliabilitiesheld-for-sale .................................................... $1,595
On September 29, 2005, the Company completed the sale of MetLife Indonesia to a third party, resulting in a gain upon disposal of
$10 million, net of income tax. As a result of this sale, the Company recognized income from discontinued operations of $5 million, net of
income tax, for the year ended December 31, 2005. The Company reclassified the operations of MetLife Indonesia into discontinued
operations for all years presented.
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:
Year Ended
December 31,
2005
(In millions)
Revenues.................................................................... $ 5
Expenses.................................................................... 10
Incomefromdiscontinuedoperationsbeforeprovisionforincometax ............................. (5)
Provisionforincometax........................................................... —
Netinvestmentgain,netofincometax ................................................. 10
Incomefromdiscontinuedoperations,netofincometax .................................... $ 5
On January 31, 2005, the Company completed the sale of SSRM to a third party for $328 million in cash and stock. The Company
reported the operations of SSRM in discontinued operations. 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. 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. 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. In the fourth quarter of 2007, the Company accrued a liability for $2 million, net of income tax, related to the termination 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 first quarter of 2007, the Company received a payment of $16 million, net of income
tax, as a result of the revenue retention and growth measure provision in the sales agreement. 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 operations of SSRM include affiliated revenues of $5 million for the year ended December 31, 2005, related to asset management
services provided by SSRM to the Company that have not been eliminated from discontinued operations as these transactions continued
F-78 MetLife, Inc.
MetLife, Inc.
Notes to Consolidated Financial Statements — (Continued)