MetLife 2009 Annual Report Download - page 205

Amortization and Capitalization of DAC and VOBA
See Note 6 for deferred acquisition costs by segment and a rollforward of deferred acquisition costs including impacts of amortization and
capitalization. See also Note 10 for a description of the DAC amortization impact associated with the closed block.
Lease Impairments
See Note 16 for description of lease impairments included within other expenses.
Restructuring Charges
In September 2008, the Company began an enterprise-wide cost reduction and revenue enhancement initiative which is expected to be
fully implemented by December 31, 2010. 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. These restructuring costs were
included in other expenses. As the expenses relate to an enterprise-wide initiative, they were incurred within Banking, Corporate & Other.
Estimated restructuring costs may change as management continues to execute its restructuring plans. Restructuring charges associated
with this enterprise-wide initiative are as follows:
2009 2008
Years Ended
December 31,
(In millions)
Balance,beginningofperiod ................................................. $ 86 $ —
Severancecharges ...................................................... 84 109
Changeinseverancechargeestimates ......................................... (8) (8)
Cashpayments......................................................... (126) (15)
Balance,endofperiod ..................................................... $ 36 $ 86
Restructuringchargesincurredincurrentperiod..................................... $ 76 $101
Totalrestructuringchargesincurredsinceinceptionofprogram ........................... $177 $101
For both years ended December 31, 2009 and 2008, the change in severance charge estimates was $8 million due to lower anticipated
costs for lower variable incentive compensation, COBRA benefits, employee outplacement services and for employees whose severance
status changed.
In 2009, the Company also recognized additional lease charges of $28 million and made cash payments of $2 million associated with the
consolidation of office space.
Management anticipates further restructuring charges including severance, lease and asset impairments will be incurred during the year
ending December 31, 2010. However, such restructuring plans are not sufficiently developed to enable the Company to make an estimate of
such restructuring charges at December 31, 2009.
In addition to the restructuring charges incurred in connection with the aforementioned enterprise-wide initiative, the Company also
incurred severance costs in connection with the Argentine government’s nationalization of its private pension business. During the year
ended December 31, 2008, the Company recognized a restructuring charge of $15 million within the International segment and made
payments of $12 million resulting in a restructuring liability of $3 million at December 31, 2008. During the year ended December 31, 2009,
the Company made payments of $3 million resulting in no restructuring liability at December 31, 2009.
F-121MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)