MetLife 2009 Annual Report Download - page 141

The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and
the consolidated statements of stockholders’ equity for the years ended December 31, 2009, 2008 and 2007:
Net Investment
Gains (Losses) Net Investment Income Other Expenses Net Investment Gains (Losses) Net Investment Income
(Effective Portion) (Effective Portion)
(Ineffective Portion and
Amount Excluded from
Effectiveness Testing)
Derivatives in Cash Flow
Hedging Relationships
Amount of Gains
(Losses) Deferred
in Accumulated Other
Comprehensive Income
(Loss) on Derivatives
Amount and Location
of Gains (Losses)
Reclassified from
Accumulated Other Comprehensive
Income (Loss) into Income (Loss)
Amount and Location
of Gains (Losses)
Recognized in Income (Loss)
on Derivatives
(In millions)
For the Year Ended
December 31, 2009:
Interestrateswaps .......... $ (45) $ — $— $(4) $(2) $—
Foreign currency swaps . . . . . . . (319) (133) (6) 1 (1) —
Interestrateforwards......... 147 79 — — — —
Creditforwards ............ (4) — — — — —
Total.................. $(221) $ (54) $ (6) $(3) $(3) $—
For the Year Ended
December 31, 2008:
Interestrateswaps .......... $ — $ — $— $— $— $—
Foreign currency swaps . . . . . . . 203 (140) (10) 1 — —
Total.................. $203 $(140) $(10) $1 $— $—
For the Year Ended
December 31, 2007:
Interestrateswaps .......... $ 3 $ — $— $— $— $—
Foreign currency swaps . . . . . . . (171) (96) (12) 2 — —
Total.................. $(168) $ (96) $(12) $2 $— $—
Hedges of Net Investments in Foreign Operations
The Company uses foreign exchange contracts, which may include foreign currency swaps, forwards and options, to hedge portions of its
net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness on these
contracts based upon the change in forward rates. In addition, the Company may also use non-derivative financial instruments to hedge
portions of its net investments in foreign operations against adverse movements in exchange rates. The Company measures ineffectiveness
on non-derivative financial instruments based upon the change in spot rates.
When net investments in foreign operations are sold or substantially liquidated, the amounts in accumulated other comprehensive income
(loss) are reclassified to the consolidated statements of operations, while a pro rata portion will be reclassified upon partial sale of the net
investments in foreign operations.
The following table presents the effects of derivatives and non-derivative financial instruments in net investment hedging relationships in
the consolidated statements of operations and the consolidated statements of stockholders’ equity for the years ended December 31, 2009,
2008 and 2007:
Derivatives and Non-Derivative Hedging Instruments in Net
Investment Hedging Relationships (1), (2) 2009 2008 2007 2009 2008 2007
Years Ended December 31, Years Ended December 31,
Net Investment Gains
(Losses)
Amount of Gains (Losses)
Deferred in Accumulated
Other Comprehensive
Income (Loss)
(Effective Portion)
Amount and Location
of Gains (Losses)
Reclassified From
Accumulated Other
Comprehensive
Income
(Loss) into Income
(Loss)
(Effective Portion)
(In millions)
Foreign currency forwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(244) $338 $ (36) $ (59) $— $—
Foreigncurrencyswaps.......................................... (18) 76 (82) (63) — —
Non-derivativehedginginstruments .................................. (37) 81 (62) (11) — —
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(299) $495 $(180) $(133) $— $—
F-57MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)