MetLife 2009 Annual Report Download - page 175

pledged qualifying loans and investment securities to the Federal Reserve Bank of New York as collateral. At December 31, 2008, MetLife
Bank’s liability for advances from the Federal Reserve Bank of New York under these facilities was $950 million, which is included in short-term
debt. MetLife Bank had no liability for advances from the Federal Reserve Bank of New York under these facilities at December 31, 2009. The
estimated fair value of loan and investment security collateral pledged by MetLife Bank to the Federal Reserve Bank of New York at
December 31, 2009 and 2008 was $1.5 billion and $1.6 billion, respectively. During the years ended December 31, 2009 and 2008, the
weighted average interest rate on these advances was 0.26% and 0.79%, respectively. During the years ended December 31, 2009 and
2008, respectively, the average daily balance of these advances was $1,513 million and $145 million and these advances were outstanding
for an average of 24 days and 41 days. The Company did not participate in these programs during 2007.
Short-term Debt
Short-term debt with maturities less than one year is as follows:
2009 2008
December 31,
(In millions)
Commercialpaper ................................................... $ 319 $ 714
MetLife Bank, N.A. — Collateralized borrowings from the Federal Reserve Bank of New York . . . — 950
MetLifeBank,N.A.—RepurchaseagreementswiththeFHLBofNY................... 585 695
MetLife Insurance Company of Connecticut — Collateralized borrowings from the FHLB of
Boston ......................................................... — 300
Other............................................................ 8 —
Totalshort-termdebt ................................................ $ 912 $ 2,659
Averagedailybalance................................................. $ 2,845 $ 1,252
Averagedaysoutstanding .............................................. 16days 25days
During the years ended December 31, 2009, 2008 and 2007, the weighted average interest rate on short-term debt was 0.42%, 2.4% and
5.0%, respectively.
Interest Expense
Interest expense related to the Company’s indebtedness included in other expenses was $713 million, $554 million and $600 million for
the years ended December 31, 2009, 2008 and 2007, respectively, and does not include interest expense on collateral financing
arrangements, junior subordinated debt securities or common equity units. See Notes 12 and 13.
Credit and Committed Facilities
The Company maintains unsecured credit facilities and committed facilities, which aggregated $3.2 billion and $12.8 billion, respectively,
at December 31, 2009. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.
Credit Facilities. The unsecured credit facilities are used for general corporate purposes. At December 31, 2009, the Company had
outstanding $548 million in letters of credit and no aggregate drawdowns against these facilities. Remaining unused commitments were
$2.6 billion at December 31, 2009.
Total fees expensed associated with these credit facilities were $43 million and $17 million for the years ended December 31, 2009 and
2008, respectively. Information on these credit facilities at December 31, 2009 is as follows:
Borrower(s) Expiration Capacity
Letter of
Credit
Issuances Drawdowns Unused Commitments
(In millions)
MetLife, Inc. and MetLife Funding, Inc. . . . . . . . . . June 2012 (1) $2,850 $548 $ — $2,302
MetLifeBank,N.A. ...................... August2010 300 — — 300
Total .............................. $3,150 $548 $— $2,602
(1) Proceeds are available to be used for general corporate purposes, to support the borrowers’ commercial paper programs and for the
issuance of letters of credit. All borrowings under the credit agreement must be repaid by June 2012, except that letters of credit
outstanding upon termination may remain outstanding until June 2013.
Committed Facilities. The committed facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. At
December 31, 2009, the Company had outstanding $4.7 billion in letters of credit and $2.8 billion in aggregate drawdowns against these
facilities. Remaining unused commitments were $5.4 billion at December 31, 2009.
F-91MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)