MetLife 2011 Annual Report Download - page 226

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
2009 Performance Share grants was completed, but the performance factor had not yet been calculated. Included in the immediately preceding table
are 1,791,609 outstanding Performance Shares to which the 2009-2011 performance factor will be applied.
Restricted Stock Units
Restricted Stock Units are units that, if they vest, are payable in shares of MetLife, Inc. common stock. Restricted Stock Units are accounted for as
equity awards, but are not credited with dividend-equivalents for actual dividends paid on MetLife, Inc. common stock during the performance period.
Accordingly, the estimated fair value of Restricted Stock Units is based upon the closing price of MetLife, Inc. common stock on the date of grant,
reduced by the present value of estimated dividends to be paid on that stock during the performance period.
The vast majority of Restricted Stock Units normally vest in their entirety on the third anniversary of their grant date. Other Restricted Stock Units
normally vest in their entirety on the fifth anniversary of their grant date. Vesting is subject to continued service, except for employees who are retirement
eligible and in certain other limited circumstances.
The following table presents a summary of Restricted Stock Unit activity for the year ended December 31, 2011:
Restricted Stock
Units
Weighted Average
Grant Date
Fair Value
Outstanding at January 1, 2011 .................................................. 937,172 $29.63
Granted(1) .................................................................. 734,159 $41.94
Forfeited .................................................................... (61,160) $35.36
Payable(2) .................................................................. (47,322) $44.35
Outstanding at December 31, 2011 .............................................. 1,562,849 $34.74
Restricted Stock Units expected to vest at a future date as of December 31, 2011 .......... 1,562,849 $34.74
(1) The total fair value on the date of the grant was $31 million.
(2) Includes both shares paid and shares deferred for later payment.
Liability Awards (Phantom Stock-Based Awards)
Certain MetLife international subsidiaries have granted Phantom Stock-Based Awards in the form of Unit Options, Restricted Units, and Performance
Units. These share-based cash settled awards are recorded as liabilities until payout is made. Unlike share-settled awards, which have a fixed grant-
date fair value, the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value
of one share of MetLife, Inc. common stock. The liability and corresponding expense are adjusted accordingly until the award is settled.
Unit Options.
Each Unit Option is the contingent right of the holders to receive a cash payment equal to the closing price of one share of MetLife, Inc. common
stock on the surrender date, less the closing price on the grant date, if the difference is greater than zero. The vast majority of Unit Options have
become or will become eligible for surrender at a rate of one-third of each award on each of the first three anniversaries of the grant date. Other Unit
Options have become or will become eligible for surrender on the third anniversary of the grant date. Vesting is subject to continued service, except for
employees who are retirement eligible and in certain other limited circumstances.
Restricted Units.
Restricted Units are units that, if they vest, are payable in cash equal to the closing price of MetLife, Inc. common stock on the last day of the
restriction period. The vast majority of Restricted Units normally vest in their entirety on the third anniversary of their grant date. Vesting is subject to
continued service, except for employees who are retirement eligible and in certain other limited circumstances.
Performance Units.
Performance Units are units that, if they vest, are multiplied by a performance factor to produce a number of final Performance Units which are
payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period.
Performance Units are accounted for as liability awards, but are not credited with dividend-equivalents for actual dividends paid on MetLife, Inc.
common stock during the performance period. Accordingly, the estimated fair value of Performance Units is based upon the closing price of MetLife,
Inc. common stock on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.
Performance Units normally vest in their entirety at the end of the three-year performance period. Vesting is subject to continued service, except for
employees who are retirement eligible and in certain other limited circumstances. Vested Performance Units are multiplied by a performance factor of
0.0 to 2.0 based largely on MetLife, Inc.’s performance in change in annual net operating earnings and total shareholder return over the applicable
three-year performance period compared to the performance of its competitors.
222 MetLife, Inc.