MetLife 2013 Annual Report Download - page 217

MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)
21. Contingencies, Commitments and Guarantees (continued)
On September 1, 2011, the Department of Financial Services filed a liquidation plan for Executive Life Insurance Company of New York (“ELNY”),
which had been under rehabilitation by the Liquidation Bureau since 1991. The plan involves the satisfaction of insurers’ financial obligations under a
number of state life and health insurance guaranty associations and also provides additional industry support for certain ELNY policyholders. The
Company recorded a net charge (benefit) of ($31) million, $38 million and $40 million, net of income tax, during the years ended December 31, 2013,
2012 and 2011, respectively, related to ELNY.
Commitments
Leases
The Company, as lessee, has entered into various lease and sublease agreements for office space, information technology and other equipment.
Future minimum gross rental payments relating to these lease arrangements are as follows:
Amount
(In millions)
2014 ......................................................................................................... $ 320
2015 ......................................................................................................... 259
2016 ......................................................................................................... 212
2017 ......................................................................................................... 161
2018 ......................................................................................................... 141
Thereafter ..................................................................................................... 794
Total ........................................................................................................ $1,887
Total minimum rentals to be received in the future under non-cancelable subleases are $139 million as of December 31, 2013.
Commitments to Fund Partnership Investments
The Company makes commitments to fund partnership investments in the normal course of business. The amounts of these unfunded
commitments were $4.4 billion and $3.4 billion at December 31, 2013 and 2012, respectively. The Company anticipates that these amounts will be
invested in partnerships over the next five years.
Mortgage Loan Commitments
The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $3.4 billion and
$3.0 billion at December 31, 2013 and 2012, respectively.
Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments
The Company commits to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these
unfunded commitments were $925 million and $1.2 billion at December 31, 2013 and 2012, respectively.
Guarantees
In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may
be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has
provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees
that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal
course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain
other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations
and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities
and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.4 billion, while in
other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not
believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management
believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.
In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for
liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with
respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due
under these indemnities in the future.
The Company has also minimum fund yield requirements on certain international pension funds in accordance with local laws. Since these
guarantees are not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum
potential amount that could become due under these guarantees in the future.
The Company’s recorded liabilities were $5 million at both December 31, 2013 and 2012, for indemnities, guarantees and commitments.
MetLife, Inc. 209