MetLife 2011 Annual Report Download - page 182

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Value of Distribution Agreements and Customer Relationships Acquired
Information regarding VODA and VOCRA, which are reported in other assets, was as follows:
Amount
(In millions)
Balance at January 1, 2009 ........................................................................ $ 822
Acquisitions .................................................................................... —
Amortization .................................................................................... (34)
Effect of foreign currency translation and other .......................................................... 4
Balance at December 31, 2009 ..................................................................... 792
Acquisitions .................................................................................... 356
Amortization .................................................................................... (42)
Effect of foreign currency translation and other .......................................................... (12)
Balance at December 31, 2010 ..................................................................... 1,094
Acquisitions .................................................................................... 213
Amortization .................................................................................... (60)
Effect of foreign currency translation and other .......................................................... 17
Balance at December 31, 2011 ..................................................................... $1,264
The estimated future amortization expense allocated to other expenses for the next five years for VODA and VOCRA is $82 million in 2012,
$89 million in 2013, $94 million in 2014, $92 million in 2015 and $84 million in 2016. See Note 2 for a description of acquisitions and dispositions.
Negative Value of Business Acquired
Information regarding negative VOBA, which is recorded in other policy-related balances, was as follows:
Amount
(In millions)
Balance at January 1, 2010 ........................................................................ $ —
Acquisitions ..................................................................................... 4,422
Amortization ..................................................................................... (64)
Effect of foreign currency translation .................................................................. (71)
Balance at December 31, 2010 ..................................................................... 4,287
Acquisitions ..................................................................................... 7
Amortization ..................................................................................... (697)
Effect of foreign currency translation .................................................................. 60
Balance at December 31, 2011 ..................................................................... $3,657
The weighted average amortization period for negative VOBA was 6.0 years. The estimated future amortization of credit to expenses recorded in
other expenses for the next five years for negative VOBA is $627 million in 2012, $563 million in 2013, $477 million in 2014, $388 million in 2015 and
$298 million in 2016.
Sales Inducements
Information regarding deferred sales inducements, which are reported in other assets, was as follows:
Amount
(In millions)
Balance at January 1, 2009 ........................................................................ $711
Capitalization .................................................................................... 193
Amortization ..................................................................................... (63)
Balance at December 31, 2009 ..................................................................... 841
Capitalization .................................................................................... 157
Amortization ..................................................................................... (80)
Balance at December 31, 2010 ..................................................................... 918
Capitalization .................................................................................... 140
Amortization ..................................................................................... (132)
Balance at December 31, 2011 ..................................................................... $926
178 MetLife, Inc.