MetLife 2011 Annual Report Download - page 230

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
19. Other Expenses
Information on other expenses was as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Compensation ............................................................... $ 5,287 $ 3,575 $ 3,394
Pension, postretirement & post employment benefit costs ............................. 463 380 452
Commissions ................................................................ 6,378 3,607 3,393
Volume-related costs .......................................................... 335 379 407
Interest credited to bank deposits ................................................ 95 137 163
Capitalization of DAC .......................................................... (6,858) (3,299) (2,976)
Amortization of DAC and VOBA .................................................. 5,391 2,843 1,289
Amortization of negative VOBA .................................................. (697) (64) —
Interest expense on debt and debt issuance costs ................................... 1,629 1,550 1,044
Premium taxes, licenses & fees .................................................. 633 513 526
Professional services .......................................................... 1,597 1,103 901
Rent, net of sublease income ................................................... 426 305 383
Other ...................................................................... 3,051 1,735 1,545
Total other expenses ........................................................ $17,730 $12,764 $10,521
Capitalization of DAC and Amortization of DAC and VOBA
See Note 6 for DAC and VOBA by segment and a roll forward of each including impacts of capitalization and amortization. See also Note 10 for a
description of the DAC amortization impact associated with the closed block.
Interest Expense on Debt and Debt Issuance Costs
See Notes 11, 12, 13 and 14 for attribution of interest expense by debt issuance. Interest expense on debt and debt issuance costs includes
interest expense related to CSEs. See Note 3.
Lease Impairments
See Note 16 for description of lease impairments included within other expenses.
Costs Related to the Acquisition
Transaction and Integration-Related Expenses
The Company incurred transaction costs of $3 million and $100 million for the years ended December 31, 2011 and 2010, respectively.
Transaction costs represent costs directly related to effecting the Acquisition and primarily include banking and legal expenses. Such costs have been
expensed as incurred within Corporate & Other.
Integration-related costs were $362 million and $176 million for the years ended December 31, 2011 and 2010, respectively. Integration-related
costs represent costs directly related to integrating ALICO, including expenses for consulting, rebranding and the integration of information systems.
Such costs have been expensed as incurred and as the integration of ALICO is an enterprise-wide initiative, these expenses are reported within
Corporate & Other.
Restructuring Charges
As part of the integration of ALICO’s operations, management initiated restructuring plans focused on increasing productivity and improving the
efficiency of the Company’s operations. See Note 2. Estimated restructuring charges may change as management continues to execute its
restructuring plans. Management anticipates further restructuring charges, including severance, contract termination costs and other associated costs
through the year ended December 31, 2013. However, such restructuring plans are not sufficiently developed to enable management to make an
estimate of such restructuring charges at December 31, 2011.
226 MetLife, Inc.