MetLife 2011 Annual Report Download - page 219

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
A rollforward of all pension and other postretirement benefit plan assets measured at estimated fair value on a recurring basis using significant
unobservable (Level 3) inputs was as follows:
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Pension Benefits
Derivative
Securities Real Estate
(In millions)
Year Ended December 31, 2011:
Balance, January 1, ..................................... $11 $ 8
Total realized/unrealized gains (losses) included in:
Earnings:
Net investment income ............................... — —
Net investment gains (losses) .......................... — —
Net derivative gains (losses) ........................... — —
Other revenues ..................................... — —
Policyholder benefits and claims ....................... — —
Other expenses .................................... — —
Other comprehensive income (loss) ....................... 2 —
Purchases ............................................ — —
Sales ................................................ — —
Issuances ............................................ — —
Settlements ........................................... — —
Transfers into Level 3 .................................... — —
Transfers out of Level 3 .................................. — —
Balance, December 31, .................................. $13 $ 8
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Pension Benefits
Derivative
Securities(1) Real Estate(1)
(In millions)
Year Ended December 31, 2010:
Balance, January 1, ..................................... $— $—
Total realized/unrealized gains (losses) included in:
Earnings:
Net investment income ............................... — —
Net investment gains (losses) .......................... — —
Net derivative gains (losses) ........................... 3 —
Other revenues ..................................... — —
Policyholder benefits and claims ....................... — —
Other expenses .................................... — —
Other comprehensive income (loss) ....................... (3) —
Purchases, sales, issuances, and settlements ................ (1) —
Transfers into Level 3 .................................... 12 8
Transfers out of Level 3 .................................. — —
Balance, December 31, .................................. $11 $ 8
(1) Derivative securities and real estate transfers into Level 3 are due to the Acquisition and are not related to the changes in Level 3 classification at the
security level.
Certain non-U.S. Subsidiaries sponsor defined benefit plans that cover employees and sales representatives who meet specified eligibility
requirements. Pension benefits are provided utilizing either a traditional formula or cash balance formula, similar to the U.S. plans discussed above. The
investment objectives are also similar, subject to local regulations. Generally, these international pension plans invest directly in high quality equity and
fixed maturity securities. The assets of the non-U.S. pension plans are comprised of cash and cash equivalents, equity and fixed maturity securities, real
estate and hedge fund investments.
The assets of the non-U.S. pension plans, other than those held in participant directed investment accounts, are managed in accordance with
investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters. Specifically, investment
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