MetLife 2012 Annual Report Download - page 172

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
Short-term Debt
Short-term debt with maturities of one year or less was as follows:
December 31,
2012 2011
(In millions)
Commercial paper ..................................................................................... $ 100 $ 101
MetLife Bank, N.A. - Advances agreements with the FHLB of NY ................................................. — 585
Total short-term debt ................................................................................... $ 100 $ 686
Average daily balance ................................................................................... $ 119 $ 447
Average days outstanding ............................................................................... 40days 19 days
During the years ended December 31, 2012, 2011 and 2010, the weighted average interest rate on short-term debt was 0.17%, 0.33% and
0.35%, respectively.
Interest Expense
Interest expense related to long-term and short-term debt included in other expenses was $871 million, $975 million and $815 million for the years
ended December 31, 2012, 2011 and 2010, respectively. Such amounts do not include interest expense on collateral financing arrangements, junior
subordinated debt securities, common equity units or long-term debt related to CSEs. See Notes 8, 13, 14 and 15.
Credit and Committed Facilities
The Company maintains unsecured credit facilities and committed facilities, which aggregated $4.0 billion and $12.4 billion, respectively, at
December 31, 2012. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.
Credit Facilities
The unsecured credit facilities are used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance
of letters of credit. Total fees expensed associated with these credit facilities were $30 million, $35 million and $17 million for the years ended
December 31, 2012, 2011 and 2010, respectively, and are included in other expenses. Information on these credit facilities at December 31, 2012
was as follows:
Borrower(s) Expiration Capacity
Letter of
Credit
Issuances Drawdowns Unused Commitments
(In millions)
MetLife, Inc. and MetLife Funding, Inc. ............................ September 2017 (1) $1,000 $ 365 $— $ 635
MetLife, Inc. and MetLife Funding, Inc. ............................ August 2016 3,000 2,203 — 797
Total .................................................... $4,000 $2,568 $— $1,432
(1) In September 2012, MetLife, Inc. and MetLife Funding, Inc. entered into a $1.0 billion five-year credit agreement which amended and restated the
three-year agreement dated October 2010. All borrowings under the 2012 five-year credit agreement must be repaid by September 2017, except
that letters of credit outstanding on that date may remain outstanding until no later than September 2018. MetLife, Inc. incurred costs of $4 million
related to the amended and restated credit facility, which have been capitalized and included in other assets. These costs will be amortized over the
remaining term of the amended and restated credit facility.
Committed Facilities
The committed facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees expensed associated with these
committed facilities were $96 million, $93 million and $92 million for the years ended December 31, 2012, 2011 and 2010, respectively, and are
included in other expenses. Information on these committed facilities at December 31, 2012 was as follows:
166 MetLife, Inc.