MetLife 2012 Annual Report Download - page 64

Credit and Committed Facilities. We maintain 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.
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. At December 31, 2012, we had outstanding $2.6 billion in letters of credit and no drawdowns against these
facilities. Remaining unused commitments were $1.4 billion at December 31, 2012.
The committed facilities are used for collateral for certain of our affiliated reinsurance liabilities. At December 31, 2012, $5.5 billion in letters
of credit and $2.8 billion in aggregate drawdowns were outstanding against these facilities. Remaining unused commitments were $4.1 billion
at December 31, 2012.
See Note 12 of the Notes to the Consolidated Financial Statements for further discussion of these facilities.
We have no reason to believe that our lending counterparties will be unable to fulfill their respective contractual obligations under these
facilities. As commitments associated with letters of credit and financing arrangements may expire unused, these amounts do not necessarily
reflect our actual future cash funding requirements.
Outstanding Debt Under Global Funding Sources. The following table summarizes our outstanding debt at:
December 31,
2012 2011
(In millions)
Short-term debt (1) ................................................................................ $ 100 $ 686
Long-term debt (2) ................................................................................ $ 16,535 $ 20,624
Collateral financing arrangements (3) .................................................................. $ 4,196 $ 4,647
Junior subordinated debt securities (3) ................................................................. $ 3,192 $ 3,192
(1) For more information regarding issuances of short-term debt, see “— Global Funding Sources” and Note 12 of the Notes to the Consolidated
Financial Statements.
(2) Excludes $2.5 billion and $3.1 billion at December 31, 2012 and 2011, respectively, of long-term debt relating to CSEs (see Note 8 of the Notes to
the Consolidated Financial Statements). For more information regarding long-term debt, see Note 12 of the Notes to the Consolidated Financial
Statements.
(3) For information regarding prior issuances of collateral financing arrangements and junior subordinated debt securities, see Notes 13 and 14 of the
Notes to the Consolidated Financial Statements, respectively.
Dispositions. Cash proceeds from dispositions during the years ended December 31, 2012, 2011 and 2010 were $605 million, $449 million
and $0, respectively. See Note 3 of the Notes to the Consolidated Financial Statements for information regarding certain of these dispositions.
Liquidity and Capital Uses
In addition to the general description of liquidity and capital uses in “— Summary of Primary Sources and Uses of Liquidity and Capital” and “—
Contractual Obligations,” the following additional information is provided regarding our primary uses of liquidity and capital:
Convertible Preferred Stock Repurchases. In March 2011, MetLife, Inc. repurchased for $2.9 billion and canceled all of the convertible
preferred stock issued in November 2010 in connection with the ALICO Acquisition. See Note 16 of the Notes to the Consolidated Financial
Statements.
Common Stock Repurchases. At December 31, 2012, MetLife, Inc. had $1.3 billion remaining under its common stock repurchase program
authorizations. See “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities” in the 2012
Form 10-K for further information relating to such authorizations. During the years ended December 31, 2012, 2011 and 2010, we did not
repurchase any shares of common stock under the repurchase program.
Under the aforementioned authorizations, MetLife, Inc. may purchase its common stock from the MetLife Policyholder Trust, in the open market
(including pursuant to the terms of a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934) and
in privately negotiated transactions. Any future common stock repurchases will be dependent upon several factors, including our capital position,
liquidity, financial strength and credit ratings, general market conditions, the market price of MetLife, Inc.’s common stock compared to
management’s assessment of the stock’s underlying value and applicable regulatory approvals, as well as other legal and accounting factors. See
“Business — U.S. Regulation — Potential Regulation as a Non-Bank SIFI,” and “Risk Factors — Capital-Related Risks — We Have Been, and May
Continue to be, Prevented from Repurchasing Our Stock and Paying Dividends at the Level We Wish as a Result of Regulatory Restrictions and
Restrictions Under the Terms of Certain of Our Securities” in the 2012 Form 10-K and Note 16 of the Notes to the Consolidated Financial
Statements.
Dividends. During the years ended December 31, 2012, 2011 and 2010, MetLife, Inc. paid dividends on its common stock of $811 million,
$787 million and $784 million, respectively, which was calculated based upon $0.74 per common share. During each of the years ended
December 31, 2012, 2011 and 2010, MetLife, Inc. paid dividends on its preferred stock of $122 million. See Note 16 of the Notes to the
Consolidated Financial Statements for information regarding the calculation and timing of these dividends.
The declaration and payment of dividends is subject to the discretion of our Board of Directors, and will depend on MetLife, Inc.’s financial
condition, results of operations, cash requirements, future prospects, regulatory restrictions on the payment of dividends by MetLife, Inc.’s other
insurance subsidiaries and other factors deemed relevant by the board. In January 2013, MetLife, Inc. transitioned to paying common stock
dividends quarterly. On January 4, 2013, MetLife, Inc. announced a first quarter 2013 common stock dividend of $0.185 per share. The dividends
will be payable on March 13, 2013 to shareholders of record as of February 6, 2013.
Preferred stock dividends are paid quarterly in accordance with the terms of MetLife, Inc.’s Floating Rate Non-Cumulative Preferred Stock, Series
A, and 6.50% Non-Cumulative Preferred Stock, Series B. The payment of dividends and other distributions by MetLife, Inc. to its security holders
may be subject to the Federal Reserve, if, in the future, MetLife, Inc. is designated as a non-bank SIFI. See “Business — U.S. Regulation —
Potential Regulation as a Non-Bank SIFI” in the 2012 Form 10-K. The payment of dividends is also subject to restrictions under the terms of our
preferred stock and junior subordinated debentures in situations where we may be experiencing financial stress. See “Risk Factors — Capital-
58 MetLife, Inc.