MetLife 2011 Annual Report Download - page 231

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Restructuring charges associated with restructuring plans related to the Acquisition are included in other expenses within Corporate & Other. Such
restructuring charges included:
Years Ended December 31,
2011 2010
(In millions)
Balance at January 1, ................................................................... $10 $—
Restructuring charges .................................................................. 46 10
Cash payments ....................................................................... (43) —
Balance at December 31, ............................................................... $13 $10
Restructuring charges incurred in current period .............................................. $46 $10
Total restructuring charges incurred since inception of restructuring plans .......................... $56 $10
Other Restructuring Charges
In September 2008, the Company began an enterprise-wide cost reduction and revenue enhancement initiative which was fully implemented by
December 31, 2011. This initiative was 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 charges are included in other expenses. As the expenses relate to an enterprise-wide initiative, they are reported within
Corporate & Other. Restructuring charges associated with this enterprise-wide initiative were as follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Balance at January 1, ................................................................. $ 7 $ 36 $ 86
Severance charges .................................................................. 2 17 84
Change in severance charge estimates ................................................... (1) (1) (8)
Cash payments ..................................................................... (8) (45) (126)
Balance at December 31, ............................................................. $ — $ 7 $ 36
Restructuring charges incurred in current period ............................................ $ 1 $ 16 $ 76
Total restructuring charges incurred since inception of initiative ................................. $194 $193 $ 177
Changes in severance charge estimates were due to changes in estimates for variable incentive compensation, COBRA benefits, employee
outplacement services and for employees whose severance status changed.
In addition to the above charges, the Company has recognized lease charges of $28 million associated with the consolidation of office space since
the inception of the initiative.
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