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Equity
 9 Months Ended
Sep. 30, 2017
Equity [Abstract]  
Equity [Text Block]
10. Equity
Preferred Stock
Preferred stock authorized, issued and outstanding was as follows at both September 30, 2017 and December 31, 2016:
Series
 
Shares
Authorized
 
Shares
Issued
 
Shares
Outstanding
Floating Rate Non-Cumulative Preferred Stock, Series A
 
27,600,000

 
24,000,000

 
24,000,000

5.25% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series C
 
1,500,000

 
1,500,000

 
1,500,000

Series A Junior Participating Preferred Stock
 
10,000,000

 
—

 
—

Not designated
 
160,900,000

 
—

 
—

Total
 
200,000,000

 
25,500,000

 
25,500,000

Common Stock
During the nine months ended September 30, 2017 and 2016, MetLife, Inc. repurchased 44,737,625 shares and 1,445,864 shares through open market purchases for $2.3 billion and $70 million, respectively.
At September 30, 2017, MetLife, Inc. had $383 million remaining under the common stock repurchase authorization. Common stock repurchases are dependent upon several factors, including the Company’s 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 Note 16 for information on subsequent common stock repurchases and authorizations.
Stock-Based Compensation Plans
Performance Shares and Performance Units
Final Performance Shares are paid in shares of MetLife, Inc. common stock. Final Performance Units are payable in cash equal to the closing price of MetLife, Inc. common stock on a date following the last day of the three-year performance period. The performance factor for the January 1, 2014 – December 31, 2016 performance period was 44.4%, which was determined within a possible range from 0% to 175%. This factor has been applied to the 1,066,076 Performance Shares and 165,587 Performance Units associated with that performance period that vested on December 31, 2016. As a result, in the first quarter of 2017, MetLife, Inc. issued 473,338 shares of its common stock (less withholding for taxes and other items, as applicable), excluding shares that payees choose to defer, and MetLife, Inc. or its affiliates paid the cash value of 73,521 Performance Units (less withholding for taxes and other items, as applicable).
Dividend Restrictions
The declaration and payment of dividends is subject to the discretion of MetLife, Inc.’s Board of Directors, and will depend on its financial condition, results of operations, cash requirements, future prospects and other factors deemed relevant by the Board. The payment of dividends on MetLife, Inc.’s common stock, and MetLife, Inc.’s ability to repurchase its common stock, may also be subject to restrictions under potential regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the Federal Reserve Bank of New York (collectively, with the Federal Reserve Board, the “Federal Reserve”) if MetLife, Inc. were re-designated by the Financial Stability Oversight Council (“FSOC”) as a non-bank systemically important financial institution (“non-bank SIFI”).
MetLife, Inc.’s preferred stock and junior subordinated debentures contain provisions that would automatically suspend the payment of preferred stock dividends and interest on junior subordinated debentures if MetLife, Inc. fails to meet certain risk based capital ratio, net income and stockholders’ equity tests at specified times, except to the extent of the net proceeds from the issuance of certain securities during specified periods. If preferred stock dividends or interest on junior subordinated debentures are not paid, certain provisions in those instruments (sometimes referred to as “dividend stoppers”) may restrict MetLife, Inc. from repurchasing its common or preferred stock or paying dividends on its common or preferred stock and interest on its junior subordinated debentures. If MetLife, Inc. has not paid the full dividends on its preferred stock for the latest completed dividend period, MetLife, Inc. may not repurchase or pay dividends on its common stock during a dividend period. Under the junior subordinated debentures, if MetLife, Inc. has not paid in full the accrued interest on its junior subordinated debentures through the most recent interest payment date, it may not repurchase or pay dividends on its common stock or other capital stock (including the preferred stock), subject to certain exceptions. After obtaining the approval of the holders of a majority of MetLife, Inc.’s outstanding common stock on October 19, 2017, MetLife, Inc. amended the stockholders’ equity test applicable to the preferred stock to reflect the Separation of Brighthouse, so that prospectively the test will reflect the decrease in MetLife’s shareholders’ equity as a result of the Separation. On August 28, 2017, with the consent of holders of each series of junior subordinated debentures (or securities exchangeable for junior subordinated debentures), MetLife amended the stockholders’ equity test in the junior subordinated debentures to the same effect.
The junior subordinated debentures further provide that MetLife may, at its option and provided that certain conditions are met, defer payment of interest without giving rise to an event of default for periods of up to 10 years. In that case, after five years MetLife, Inc. would be obligated to use commercially reasonable efforts to sell equity securities to raise proceeds to pay the interest. MetLife, Inc. would not be subject to limitations on the number of deferral periods that MetLife, Inc. could begin, so long as all accrued and unpaid interest is paid with respect to prior deferral periods. If MetLife, Inc. were to defer payments of interest, the “dividend stopper” provisions in the junior subordinated debentures would thus prevent MetLife, Inc. from repurchasing or paying dividends on its common stock or other capital stock (including the preferred stock) during the period of deferral, subject to exceptions.
Accumulated Other Comprehensive Income (Loss)
Information regarding changes in the balances of each component of AOCI attributable to MetLife, Inc., was as follows:
 
 
Three Months
Ended
September 30, 2017
 
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 
Total
 
 
(In millions)
Balance, beginning of period
 
$
13,469

 
$
1,569

 
$
(4,679
)
 
$
(1,923
)
 
$
8,436

OCI before reclassifications
 
803

 
(166
)
 
193

 
2

 
832

Deferred income tax benefit (expense)
 
(270
)
 
56

 
(6
)
 
2

 
(218
)
AOCI before reclassifications, net of income tax
 
14,002

 
1,459

 
(4,492
)
 
(1,919
)
 
9,050

Amounts reclassified from AOCI
 
(360
)
 
(307
)
 
—

 
40

 
(627
)
Deferred income tax benefit (expense)
 
126

 
107

 
—

 
(17
)
 
216

Amounts reclassified from AOCI, net of income tax
 
(234
)
 
(200
)
 
—

 
23

 
(411
)
Disposal of subsidiary (2)
 
(2,286
)
 
(305
)
 
51

 
28

 
(2,512
)
Deferred income tax benefit (expense)
 
800

 
107

 
(19
)
 
(10
)
 
878

Disposal of subsidiary, net of income tax
 
(1,486
)
 
(198
)
 
32

 
18

 
(1,634
)
Balance, end of period
 
$
12,282

 
$
1,061

 
$
(4,460
)
 
$
(1,878
)
 
$
7,005

 
 
 
Three Months
Ended
September 30, 2016
 
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 
Total
 
 
(In millions)
Balance, beginning of period
 
$
18,204

 
$
2,431

 
$
(4,020
)
 
$
(1,983
)
 
$
14,632

OCI before reclassifications
 
(1,066
)
 
(24
)
 
49

 
(259
)
 
(1,300
)
Deferred income tax benefit (expense)
 
281

 
8

 
30

 
85

 
404

AOCI before reclassifications, net of income tax
 
17,419

 
2,415

 
(3,941
)
 
(2,157
)
 
13,736

Amounts reclassified from AOCI
 
(173
)
 
(94
)
 
—

 
46

 
(221
)
Deferred income tax benefit (expense)
 
60

 
30

 
—

 
(10
)
 
80

Amounts reclassified from AOCI, net of income tax
 
(113
)
 
(64
)
 
—

 
36

 
(141
)
Disposal of subsidiary (2)
 
—

 
—

 
—

 
—

 
—

Deferred income tax benefit (expense)
 
—

 
—

 
—

 
—

 
—

Disposal of subsidiary, net of income tax
 
—

 
—

 
—

 
—

 
—

Balance, end of period
 
$
17,306

 
$
2,351

 
$
(3,941
)
 
$
(2,121
)
 
$
13,595

 
 
Nine Months
Ended
September 30, 2017
 
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 
Total
 
 
(In millions)
Balance, beginning of period
 
$
10,766

 
$
1,865

 
$
(5,312
)
 
$
(1,972
)
 
$
5,347

OCI before reclassifications
 
4,826

 
37

 
710

 
(17
)
 
5,556

Deferred income tax benefit (expense)
 
(1,686
)
 
(14
)
 
110

 
7

 
(1,583
)
AOCI before reclassifications, net of income tax
 
13,906

 
1,888

 
(4,492
)
 
(1,982
)
 
9,320

Amounts reclassified from AOCI
 
(211
)
 
(965
)
 
—

 
125

 
(1,051
)
Deferred income tax benefit (expense)
 
73

 
336

 
—

 
(39
)
 
370

Amounts reclassified from AOCI, net of income tax
 
(138
)
 
(629
)
 
—

 
86

 
(681
)
Disposal of subsidiary (2)
 
(2,286
)
 
(305
)
 
51

 
28

 
(2,512
)
Deferred income tax benefit (expense)
 
800

 
107

 
(19
)
 
(10
)
 
878

Disposal of subsidiary, net of income tax
 
(1,486
)
 
(198
)
 
32

 
18

 
(1,634
)
Balance, end of period
 
$
12,282

 
$
1,061

 
$
(4,460
)
 
$
(1,878
)
 
$
7,005

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months
Ended
September 30, 2016
 
 
Unrealized
Investment Gains
(Losses), Net of
Related Offsets (1)
 
Unrealized
Gains (Losses)
on Derivatives
 
Foreign
Currency
Translation
Adjustments
 
Defined
Benefit
Plans
Adjustment
 
Total
 
 
(In millions)
Balance, beginning of period
 
$
10,315

 
$
1,458

 
$
(4,950
)
 
$
(2,052
)
 
$
4,771

OCI before reclassifications
 
10,872

 
1,472

 
809

 
(248
)
 
12,905

Deferred income tax benefit (expense)
 
(3,656
)
 
(460
)
 
200

 
81

 
(3,835
)
AOCI before reclassifications, net of income tax
 
17,531

 
2,470

 
(3,941
)
 
(2,219
)
 
13,841

Amounts reclassified from AOCI
 
(339
)
 
(174
)
 
—

 
145

 
(368
)
Deferred income tax benefit (expense)
 
114

 
55

 
—

 
(47
)
 
122

Amounts reclassified from AOCI, net of income tax
 
(225
)
 
(119
)
 
—

 
98

 
(246
)
Disposal of subsidiary (2)
 
—

 
—

 
—

 
—

 
—

Deferred income tax benefit (expense)
 
—

 
—

 
—

 
—

 
—

Disposal of subsidiary, net of income tax
 
—

 
—

 
—

 
—

 
—

Balance, end of period
 
$
17,306

 
$
2,351

 
$
(3,941
)
 
$
(2,121
)
 
$
13,595

__________________
(1)
See Note 6 for information on offsets to investments related to future policy benefits, DAC, VOBA and DSI, and the policyholder dividend obligation.
(2)
See Note 3.
Information regarding amounts reclassified out of each component of AOCI was as follows:
AOCI Components
 
Amounts Reclassified from AOCI
 
Consolidated Statements of
Operations and
Comprehensive Income (Loss)
Locations
 
 
Three Months
Ended
September 30,
 
Nine Months
Ended
September 30,
 
 
 
 
2017
 
2016
 
2017
 
2016
 
 
 
 
(In millions)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
 
 
 
Net unrealized investment gains (losses)
 
$
303

 
$
113

 
$
386

 
$
317

 
Net investment gains (losses)
Net unrealized investment gains (losses)
 
(1
)
 
4

 
—

 
23

 
Net investment income
Net unrealized investment gains (losses)
 
55

 
(1
)
 
(89
)
 
21

 
Net derivative gains (losses)
Net unrealized investment gains (losses)
 
3

 
57

 
(86
)
 
(22
)
 
Discontinued operations
Net unrealized investment gains (losses), before income tax
 
360

 
173

 
211

 
339

 
 
Income tax (expense) benefit
 
(126
)
 
(60
)
 
(73
)
 
(114
)
 
 
Net unrealized investment gains (losses), net of income tax
 
234

 
113

 
138

 
225

 
 
Unrealized gains (losses) on derivatives - cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
9

 
28

 
23

 
44

 
Net derivative gains (losses)
Interest rate swaps
 
5

 
3

 
12

 
9

 
Net investment income
Interest rate swaps
 
—

 
1

 
2

 
14

 
Discontinued operations
Interest rate forwards
 
(1
)
 
—

 
(5
)
 
—

 
Net derivative gains (losses)
Interest rate forwards
 
—

 
—

 
2

 
2

 
Net investment income
Interest rate forwards
 
—

 
—

 
1

 
1

 
Other expenses
Interest rate forwards
 
—

 
2

 
3

 
4

 
Discontinued operations
Foreign currency swaps
 
294

 
54

 
915

 
90

 
Net derivative gains (losses)
Foreign currency swaps
 
—

 
—

 
(1
)
 
(1
)
 
Net investment income
Foreign currency swaps
 
—

 
—

 
1

 
1

 
Other expenses
Foreign currency swaps
 
—

 
5

 
11

 
6

 
Discontinued operations
Credit forwards
 
—

 
—

 
1

 
3

 
Net derivative gains (losses)
Credit forwards
 
—

 
1

 
—

 
1

 
Net investment income
Gains (losses) on cash flow hedges, before income tax
 
307

 
94

 
965

 
174

 
 
Income tax (expense) benefit
 
(107
)
 
(30
)
 
(336
)
 
(55
)
 
 
Gains (losses) on cash flow hedges, net of income tax
 
200

 
64

 
629

 
119

 
 
Defined benefit plans adjustment: (1)
 
 
 
 
 
 
 
 
 
 
Amortization of net actuarial gains (losses)
 
(46
)
 
(47
)
 
(143
)
 
(150
)
 
 
Amortization of prior service (costs) credit
 
6

 
1

 
18

 
5

 
 
Amortization of defined benefit plan items, before income tax
 
(40
)
 
(46
)
 
(125
)
 
(145
)
 
 
Income tax (expense) benefit
 
17

 
10

 
39

 
47

 
 
Amortization of defined benefit plan items, net of income tax
 
(23
)
 
(36
)
 
(86
)
 
(98
)
 
 
Total reclassifications, net of income tax
 
$
411

 
$
141

 
$
681

 
$
246

 
 
__________________
(1)
These AOCI components are included in the computation of net periodic benefit costs. See Note 12.