MetLife 2008 Annual Report Download - page 213

Island State Insurance Code, the Rhode Island Commissioner has broad discretion in determining whether the financial condition of a stock
property and casualty insurance company would support the payment of such dividends to its shareholders. MPC may not pay any
dividends in 2009 without prior regulatory approval for dividend payments with payment dates prior to December 12, 2009. Subsequent to
December 12, 2009, MPC can pay dividends totaling $9 million without requiring regulatory approval from the Rhode Island Commissioner.
Other Comprehensive Income (Loss)
The following table sets forth the reclassification adjustments required for the years ended December 31, 2008, 2007 and 2006 in other
comprehensive income (loss) that are included as part of net income for the current year that have been reported as a part of other
comprehensive income (loss) in the current or prior year:
2008 2007 2006
Years Ended December 31,
(In millions)
Holding gains (losses) on investments arising during the year . . . . . . . . . . . . . . . . . . . . . . $(26,491) $(1,485) $(1,022)
Incometaxeffectofholdinggains(losses) .................................. 8,989 581 379
Reclassification adjustments:
Recognized holding (gains) losses included in current year income . . . . . . . . . . . . . . . . . 2,040 176 916
Amortization of premiums and accretion of discounts associated with investments . . . . . . . (926) (831) (600)
Incometaxeffect................................................... (377) 254 (117)
Allocation of holding losses on investments relating to other policyholder amounts . . . . . . . . . 4,809 676 581
Income tax effect of allocation of holding losses to other policyholder amounts . . . . . . . . . . . (1,621) (264) (215)
Unrealizedinvestmentlossofsubsidiaryatdateofsale .......................... 112 — —
Deferred income tax on unrealized investment loss of subsidiary at date of sale . . . . . . . . . . (60) — —
Netunrealizedinvestmentgains(losses),netofincometax ....................... (13,525) (893) (78)
Foreigncurrencytranslationadjustment .................................... (593) 290 46
Minimumpensionliabilityadjustment,netofincometax.......................... — — (18)
Definedbenefitplanadjustment,netofincometax ............................. (1,203) 563 —
Other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(15,321) $ (40) $ (50)
19. Other Expenses
Information on other expenses is as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
Compensation..................................................... $ 3,549 $ 3,548 $3,422
Commissions ..................................................... 3,384 3,207 2,866
Interestanddebtissuecosts........................................... 1,086 987 812
AmortizationofDACandVOBA.......................................... 3,489 2,250 1,904
CapitalizationofDAC ................................................ (3,092) (3,064) (2,825)
Rent,netofsubleaseincome........................................... 477 373 345
Minorityinterest.................................................... (23) 23 23
Insurancetax ..................................................... 497 503 488
Other .......................................................... 2,557 2,602 2,502
Totalotherexpenses ................................................ $11,924 $10,429 $9,537
Amortization and Capitalization of DAC and VOBA
See Note 5 for deferred acquisition costs by segment and a rollforward of deferred acquisition costs including impacts of amortization
and capitalization. See also Note 9 for a description of the DAC amortization impact associated with the closed block.
Interest and Debt Issue Costs
See Notes 10, 11, 12, 13 and 14 for attribution of interest expense by debt issuance.
Lease Impairments
See Note 16 for description of lease impairments included within other expenses.
Restructuring Charges
The Company has initiated an enterprise-wide cost reduction and revenue enhancement initiative. This initiative is focused on reducing
complexity, leveraging scale, increasing productivity, and improving the effectiveness of the Company’s operations, as well as providing a
foundation for future growth. During the third quarter of 2008, the Company recognized a severance-related restructuring charge of
$73 million associated with the termination of certain employees in connection with this enterprise-wide initiative. During the fourth quarter
of 2008, the Company recorded further severance related restructuring costs of $36 million offset by an $8 million reduction to its third
quarter restructuring charge attributable to lower than anticipated costs for variable incentive compensation and for employees whose
severance status changed. Severance costs of $15 million were paid during the fourth quarter of 2008. Total restructuring charges
incurred in connection with this enterprise-wide initiative during the year ended December 31, 2008 were $101 million and were reflected
F-90 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)