
6.	Goodwill

MetLife, Inc. has announced that it is exploring the sale of MetLife Bank’s depository and forward mortgage origination businesses. As a result of these announcements, in September 2011, the Company performed a goodwill impairment test on MetLife Bank, which is a separate reporting unit within Banking, Corporate & Other. A comparison of the fair value of the reporting unit, using a market multiple approach, to its carrying value indicated a potential for goodwill impairment. A further comparison of the implied fair value of the reporting unit’s goodwill with its carrying amount indicated that the entire amount of goodwill associated with MetLife Bank was impaired. Consequently, the Company recorded a $65 million impairment of goodwill that is reflected as a net investment loss in the third quarter of 2011. The implied fair value of the reporting unit’s goodwill was determined by valuing the reporting unit’s balance sheet principally using the valuation methodologies described in Note 5 under “— Recurring Fair Value Measurements” and “— Fair Value of Financial Instruments.” The excess of the fair value of the reporting unit over the amounts assigned to its assets and liabilities is the implied fair value of goodwill.

In addition, the Company performed its annual goodwill impairment tests of its other reporting units during the third quarter of 2011 based upon data at June 30, 2011. Such tests indicated that this goodwill was not impaired. Management continues to evaluate current market conditions that may affect the estimated fair value of these reporting units to assess whether any goodwill impairment exists. Deteriorating or adverse market conditions for certain reporting units may have a significant impact on the estimated fair value of these reporting units and could result in future impairments of goodwill.

At September 30, 2011, the Company’s accumulated goodwill impairment loss was $65 million. During the nine months ended September 30, 2011, the effect of foreign currency translation and other was a $290 million increase to the gross amount of goodwill.