MetLife 2013 Annual Report Download - page 204

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
18. Employee Benefit Plans (continued)
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Other Postretirement Benefits
Fixed Maturity
Securities:
Corporate Municipals Other (1) Derivative Assets
(In millions)
Year Ended December 31, 2012:
Balance at January 1, .................................................................. $ 4 $ 1 $ 5 $ 1
Realized gains (losses) ................................................................. — — (2) 2
Unrealized gains (losses) ................................................................ — — 2 (2)
Purchases, sales, issuances and settlements, net ............................................ — — (2) (1)
Transfers into and/or out of Level 3 ....................................................... — — — —
Balance at December 31, ............................................................... $ 4 $ 1 $ 3 $—
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Pension Benefits
Fixed Maturity
Securities: Equity Securities:
Corporate Foreign Bonds Other (1)
Common
Stock -
Domestic Other Investments Derivative Assets
(In millions)
Year Ended December 31, 2011:
Balance at January 1, ................................................ $49 $ 4 $2 $240 $471 $—
Realized gains (losses) ............................................... — — (1) (59) 85 2
Unrealized gains (losses) ............................................. (4) (1) 1 118 45 4
Purchases, sales, issuances and settlements, net .......................... (13) 2 (1) (93) (70) (2)
Transfers into and/or out of Level 3 ..................................... — — 1 — — —
Balance at December 31, ............................................. $32 $ 5 $2 $206 $531 $ 4
Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
Other Postretirement Benefits
Fixed Maturity
Securities:
Corporate Municipals Other (1) Derivative Assets
(In millions)
Year Ended December 31, 2011:
Balance at January 1, .................................................................. $ 4 $ 1 $ 6 $—
Realized gains (losses) ................................................................. — — (1) —
Unrealized gains (losses) ................................................................ — — 1 1
Purchases, sales, issuances and settlements, net ............................................ — — (1) —
Transfers into and/or out of Level 3 ....................................................... — — — —
Balance at December 31, ............................................................... $ 4 $ 1 $ 5 $ 1
(1) Other includes ABS and collateralized mortgage obligations.
Non-U.S. Plans
Pension benefits are provided utilizing either a traditional formula or cash balance formula, similar to the U.S. plans. The investment objectives are
also similar, subject to local regulations. Generally, these international pension plans invest directly in high quality equity and fixed maturity securities.
The assets of the non-U.S. pension plans are comprised of short-term investments, equity and fixed maturity securities, real estate and hedge fund
investments.
The assets of the non-U.S. pension plans, other than those held in participant directed investment accounts, are managed in accordance with
investment policies consistent with the longer-term nature of related benefit obligations and within prudent risk parameters and consistent with the
policies, goals and derivative instrument risk management guidelines described above for the U.S. plans.
196 MetLife, Inc.