Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Equity

11. Equity

Preferred Stock

Preferred stock authorized, issued and outstanding was as follows at both June 30, 2019 and December 31, 2018:

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
5.875% Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series D	500,000	500,000	500,000
5.625% Non-Cumulative Preferred Stock, Series E	32,200	32,200	32,200
Series A Junior Participating Preferred Stock	10,000,000	—	—
Not designated	160,367,800	—	—
Total	200,000,000	26,032,200	26,032,200

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s preferred stock were as follows for the six months ended June 30, 2019 and 2018:

Declaration Date	Record Date	Payment Date	Preferred Stock Dividend
			Series A				Series C				Series D				Series E
			Per  Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate		Per Share		Aggregate
			(In millions, except per share data)
May 15, 2019	May 31, 2019	June 17, 2019	$	0.261	$	6	$	26.250	$	39	$	—	$	—	$	351.563	$	12
March 5, 2019	February 28, 2019	March 15, 2019	0.250		6		—		—		—		—		—		—
February 15, 2019	February 28, 2019	March 15, 2019	—		—		—		—		29.375		15		351.563		11
Total			$	0.511	$	12	$	26.250	$	39	$	29.375	$	15	$	703.126	$	23
May 15, 2018	May 31, 2018	June 15, 2018	$	0.256	$	7	$	26.250	$	39	$	—	$	—	$	—	$	—
March 5, 2018	February 28, 2018	March 15, 2018	0.250		6		—		—		—		—		—		—
Total			$	0.506	$	13	$	26.250	$	39	$	—	$	—	$	—	$	—

Common Stock

For the six months ended June 30, 2019 and 2018, MetLife, Inc. repurchased 26,954,935 shares and 45,540,491 shares of its common stock, respectively, through open market purchases for $1.3 billion and $2.2 billion, respectively.

MetLife, Inc. announced that its Board of Directors authorized common stock repurchases as follows:

			Authorization Remaining at
Announcement Date	Authorization Amount		June 30, 2019
	(In millions)
November 1, 2018	$	2,000	$	20
May 22, 2018	$	1,500	$	—
November 1, 2017	$	2,000	$	—

Under these 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 (“Exchange Act”)), and in privately negotiated transactions. Common stock repurchases are subject to the discretion of MetLife, Inc.’s Board of Directors and will depend upon 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, applicable regulatory approvals, and other legal and accounting factors.

See Note 17 for information on a subsequent common stock repurchase authorization.

The declaration, record and payment dates, as well as per share and aggregate dividend amounts, for MetLife, Inc.’s common stock were as follows for the six months ended June 30, 2019 and 2018:

Declaration Date	Record Date	Payment Date	Common Stock Dividend
			Per Share		Aggregate
			(In millions, except per share data)
April 23, 2019	May 7, 2019	June 13, 2019	$	0.440	$	419
January 7, 2019	February 5, 2019	March 13, 2019	$	0.420	405
					$	824
April 24, 2018	May 7, 2018	June 13, 2018	$	0.420	$	428
January 5, 2018	February 5, 2018	March 13, 2018	$	0.400	416
					$	844

See Note 17 for information on a common stock dividend declared subsequent to June 30, 2019.

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, 2016 – December 31, 2018 performance period was 87.7%, which was determined within a possible range from 0% to 175%. This factor has been applied to the 1,594,846 Performance Shares and 212,464 Performance Units associated with that performance period that vested on December 31, 2018. As a result, in the first quarter of 2019, MetLife, Inc. issued 1,398,680 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 186,331 Performance Units (less withholding for taxes and other items, as applicable).

Dividend Restrictions

Insurance Operations

For the six months ended June 30, 2019, American Life Insurance Company paid a dividend of $600 million to MetLife, Inc., for which regulatory approval was obtained as required.

See Note 15 of the Notes to Consolidated Financial Statements included in the 2018 Annual Report for additional information on dividend restrictions.

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 June 30, 2019
	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	$	12,248		$	1,614		$	(4,947	)	$	(2,004	)	$	6,911
OCI before reclassifications	5,478			658			174			(3		)	6,307
Deferred income tax benefit (expense)	(1,289		)	(153		)	7			—			(1,435		)
AOCI before reclassifications, net of income tax	16,437			2,119			(4,766		)	(2,007		)	11,783
Amounts reclassified from AOCI	(127		)	(92		)	—			30			(189		)
Deferred income tax benefit (expense)	30			14			—			(7		)	37
Amounts reclassified from AOCI, net of income tax	(97		)	(78		)	—			23			(152		)
Balance, end of period	$	16,340		$	2,041		$	(4,766	)	$	(1,984	)	$	11,631
	Three Months Ended June 30, 2018
	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	$	10,864		$	683		$	(3,707	)	$	(2,206	)	$	5,634
OCI before reclassifications	(3,096		)	141			(969		)	3			(3,921		)
Deferred income tax benefit (expense)	706			41			6			(1		)	752
AOCI before reclassifications, net of income tax	8,474			865			(4,670		)	(2,204		)	2,465
Amounts reclassified from AOCI	83			470			—			31			584
Deferred income tax benefit (expense)	(19		)	(170		)	—			(6		)	(195		)
Amounts reclassified from AOCI, net of income tax	64			300			—			25			389
Balance, end of period	$	8,538		$	1,165		$	(4,670	)	$	(2,179	)	$	2,854

	Six Months Ended June 30, 2019
	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	$	7,042		$	1,613		$	(4,905	)	$	(2,028	)	$	1,722
OCI before reclassifications	12,199			647			138			(2		)	12,982
Deferred income tax benefit (expense)	(2,805		)	(147		)	1			—			(2,951		)
AOCI before reclassifications, net of income tax	16,436			2,113			(4,766		)	(2,030		)	11,753
Amounts reclassified from AOCI	(129		)	(116		)	—			59			(186		)
Deferred income tax benefit (expense)	30			26			—			(13		)	43
Amounts reclassified from AOCI, net of income tax	(99		)	(90		)	—			46			(143		)
Cumulative effects of changes in accounting principles	4			22			—			—			26
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	(1		)	(4		)	—			—			(5		)
Cumulative effects of changes in accounting principles, net of income tax (2)	3			18			—			—			21
Balance, end of period	$	16,340		$	2,041		$	(4,766	)	$	(1,984	)	$	11,631
	Six Months Ended June 30, 2018
	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	$	12,757		$	905		$	(4,390	)	$	(1,845	)	$	7,427
OCI before reclassifications	(6,907		)	(211		)	(417		)	(1		)	(7,536		)
Deferred income tax benefit (expense)	1,541			99			9			—			1,649
AOCI before reclassifications, net of income tax	7,391			793			(4,798		)	(1,846		)	1,540
Amounts reclassified from AOCI	128			305			—			62			495
Deferred income tax benefit (expense)	(29		)	(143		)	—			(13		)	(185		)
Amounts reclassified from AOCI, net of income tax	99			162			—			49			310
Cumulative effects of changes in accounting principles	(425		)	—			—			—			(425		)
Deferred income tax benefit (expense), cumulative effects of changes in accounting principles	1,473			210			36			(382		)	1,337
Cumulative effects of changes in accounting principles, net of income tax (3)	1,048			210			36			(382		)	912
Sale of subsidiary (4)	—			—			92			—			92
Balance, end of period	$	8,538		$	1,165		$	(4,670	)	$	(2,179	)	$	2,854

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(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 1 for further information on adoption of new accounting pronouncements.

(3) See Note 1 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report for further information on adoption of new accounting pronouncements.

(4)

See Note 3 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report.

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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(In millions)
Net unrealized investment gains (losses):
Net unrealized investment gains (losses)	$	140		$	(36	)	$	116		$	(137	)	Net investment gains (losses)
Net unrealized investment gains (losses)	(7		)	(3		)	(3		)	—			Net investment income
Net unrealized investment gains (losses)	(6		)	(44		)	16			9			Net derivative gains (losses)
Net unrealized investment gains (losses), before income tax	127			(83		)	129			(128		)
Income tax (expense) benefit	(30		)	19			(30		)	29
Net unrealized investment gains (losses), net of income tax	97			(64		)	99			(99		)
Unrealized gains (losses) on derivatives - cash flow hedges:
Interest rate derivatives	6			6			11			10			Net investment income
Interest rate derivatives	4			—			(2		)	—			Net investment gains (losses)
Interest rate derivatives	—			(1		)	—			20			Net derivative gains (losses)
Interest rate derivatives	—			1			1			1			Other expenses
Foreign currency exchange rate derivatives	(1		)	(1		)	(3		)	(1		)	Net investment income
Foreign currency exchange rate derivatives	83			—			108			—			Net investment gains (losses)
Foreign currency exchange rate derivatives	—			(475		)	—			(336		)	Net derivative gains (losses)
Foreign currency exchange rate derivatives	1			—			1			1			Other expenses
Credit derivatives	(1		)	—			—			—			Net investment gains (losses)
Gains (losses) on cash flow hedges, before income tax	92			(470		)	116			(305		)
Income tax (expense) benefit	(14		)	170			(26		)	143
Gains (losses) on cash flow hedges, net of income tax	78			(300		)	90			(162		)
Defined benefit plans adjustment: (1)
Amortization of net actuarial gains (losses)	(36		)	(35		)	(72		)	(71		)
Amortization of prior service (costs) credit	6			4			13			9
Amortization of defined benefit plan items, before income tax	(30		)	(31		)	(59		)	(62		)
Income tax (expense) benefit	7			6			13			13
Amortization of defined benefit plan items, net of income tax	(23		)	(25		)	(46		)	(49		)
Total reclassifications, net of income tax	$	152		$	(389	)	$	143		$	(310	)

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(1)

These AOCI components are included in the computation of net periodic benefit costs. See Note 13.