Long-term and Short-term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-term and Short-term Debt

13. Long-term and Short-term Debt

Long-term and short-term debt outstanding, excluding debt relating to consolidated securitization entities, was as follows:

									December 31,
	Interest Rates (1)								2021						2020
	Range				Weighted Average	Maturity			Face Value		Unamortized Discount and Issuance Costs		Carrying Value		Face Value		Unamortized Discount and Issuance Costs		Carrying Value
									(In millions)
Senior notes	0.50	%	-	6.50%	4.44%	2023	-	2046	$	12,891	$	(77)	$	12,814	$	13,548	$	(85)	$	13,463
Surplus notes	7.63	%	-	7.88%	7.79%	2024	-	2025	507		(2)		505		507		(3)		504
Other notes	0.08	%	-	3.75%	2.48%	2022	-	2058	536		(3)		533		527		(2)		525
Financing lease obligations									81		—		81		106		—		106
Total long-term debt									14,015		(82)		13,933		14,688		(90)		14,598
Total short-term debt									341		—		341		393		—		393
Total									$	14,356	$	(82)	$	14,274	$	15,081	$	(90)	$	14,991

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(1)Range of interest rates and weighted average interest rates are for the year ended December 31, 2021.

The aggregate maturities of long-term debt at December 31, 2021 for the next five years and thereafter are $109 million in 2022, $1.0 billion in 2023, $1.8 billion in 2024, $1.2 billion in 2025, $566 million in 2026 and $9.2 billion thereafter.

Financing lease obligations are collateralized and rank highest in priority, followed by unsecured senior notes and other notes, followed by subordinated debt which consists of junior subordinated debt securities (see Note 15). Payments of interest and principal on the Company’s surplus notes, which are subordinate to all other obligations of the operating company issuing the notes and are senior to obligations of MetLife, Inc., may be made only with the prior approval of the insurance department of the state of domicile of the notes issuer. The Company’s collateral financing arrangement (see Note 14) is supported by surplus notes of a subsidiary and, accordingly, has priority consistent with surplus notes.

Certain of the Company’s debt instruments and committed facilities, as well as its $3.0 billion unsecured revolving credit facility (the “Credit Facility”), contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all applicable financial covenants at December 31, 2021.

Senior Notes

In July 2021, MetLife, Inc. redeemed for cash and canceled $500 million aggregate principal amount of its outstanding 3.048% senior notes due December 2022. The Company recorded a premium of $17 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2021.

In March 2020, MetLife, Inc. issued $1.0 billion of senior notes due March 2030 which bear interest at a fixed rate of 4.550%, the interest on which is payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $6 million of related costs which will be amortized over the term of the senior notes.

In June 2019, MetLife, Inc. redeemed for cash and canceled its £400 million ($509 million at repayment) aggregate principal amount 5.250% senior notes due June 2020 and the remaining $368 million aggregate principal amount of its 4.750% senior notes due February 2021. The Company recorded a premium of $40 million paid in excess of the debt principal and accrued and unpaid interest to other expenses for the year ended December 31, 2019.

In May 2019, MetLife, Inc. issued the following fixed rate senior notes (“Senior Notes”), interest on which is payable semi-annually beginning in November 2019:

•¥25.2 billion ($230 million at issuance) due May 2026 which bear interest annually at 0.495%;

•¥64.9 billion ($591 million at issuance) due May 2029 which bear interest annually at 0.769%;

•¥10.7 billion ($98 million at issuance) due May 2031 which bear interest annually at 0.898%;

•¥26.5 billion ($241 million at issuance) due May 2034 which bear interest annually at 1.189%; and

•¥24.4 billion ($222 million at issuance) due May 2039 which bear interest annually at 1.385%.

In connection with the issuances, MetLife, Inc. incurred $9 million of related costs which are amortized over the applicable term of each series of the Senior Notes. MetLife, Inc. may redeem each series of the Senior Notes at its option, in whole, but not in part, at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest thereon, if certain events occur affecting the U.S. tax treatment of the Senior Notes

Other Notes

At December 31, 2021, MetLife Private Equity Holdings, LLC (“MPEH”), a wholly-owned indirect investment subsidiary of MLIC, was party to a credit agreement providing for $350 million of term loans and $75 million of a revolving loan (the “Credit Agreement”), which matures in September 2026. In March 2020, MPEH borrowed $75 million on a revolving loan under the Credit Agreement and repaid this loan in July 2020. Simultaneously, in July 2020, MPEH borrowed $50 million on the term loan under the Credit Agreement. MPEH has pledged invested assets to secure the loans; however, these loans are non-recourse to MLIC and MetLife, Inc.

Short-term Debt

Short-term debt with maturities of one year or less was as follows:

	December 31,
	2021		2020
	(Dollars in millions)
Commercial paper	$	100	$	100
Short-term borrowings (1)	241		293
Total short-term debt	$	341	$	393
Average daily balance	$	300	$	326
Average days outstanding	155 days		69 days

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(1)Includes $241 million and $293 million at December 31, 2021 and 2020, respectively, of short-term debt related to repurchase agreements, secured by assets of subsidiaries.

For the years ended December 31, 2021, 2020 and 2019, the weighted average interest rate on short-term debt was 1.41%, 2.01% and 2.88%, respectively.

Interest Expense

Interest expense included in other expenses was $647 million, $632 million and $656 million for the years ended December 31, 2021, 2020 and 2019, respectively. Such amounts do not include interest expense on long-term debt related to the collateral financing arrangement or junior subordinated debt securities. See Notes 14 and 15.

Credit and Committed Facilities

At December 31, 2021, the Company maintained the Credit Facility, as well as certain committed facilities aggregating $3.2 billion (the “Committed Facilities”). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

Credit Facility

The Company’s Credit Facility is used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. Total fees associated with the Credit Facility were $10 million, $14 million and $12 million for the years ended December 31, 2021, 2020 and 2019, respectively, and were included in other expenses. Information on the Credit Facility at December 31, 2021 was as follows:

Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife, Inc. and MetLife Funding, Inc.	February 2026	(1)	$	3,000	$	459	$	—	$	2,541

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(1)In February 2021, the Credit Facility was amended and restated to, among other things, extend the maturity date. The Company incurred costs of $6 million related to the Credit Facility, which were capitalized and included in other assets. These costs are being amortized over the remaining term of the Credit Facility. All borrowings under the amended and restated Credit Facility must be repaid by February 26, 2026, except that letters of credit outstanding upon termination may remain outstanding until February 26, 2027.

Committed Facilities

Letters of credit issued under the Committed Facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees associated with the Committed Facilities, included in other expenses, were $12 million for each of the years ended December 31, 2021, 2020 and 2019. Information on the Committed Facilities at December 31, 2021 was as follows:

Account Party/Borrower(s)	Expiration		Maximum Capacity		Letters of Credit Issued		Drawdowns		Unused Commitments
			(In millions)
MetLife Reinsurance Company of Vermont and MetLife, Inc.	November 2026	(1), (2)	$	350	$	350	$	—	$	—
MetLife Reinsurance Company of Vermont and MetLife, Inc.	December 2037	(1), (3)	2,896		2,492		—		404
Total			$	3,246	$	2,842	$	—	$	404

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(1)MetLife, Inc. is a guarantor under the applicable facility.

(2)The issuance of additional letters of credit is at the discretion of the counterparty.

(3)Capacity at December 31, 2021 of $2.8 billion increases periodically to a maximum of $2.9 billion in 2024, decreases periodically commencing in 2025 to $2.0 billion in 2037, and decreases to $0 at expiration in December 2037. Unused commitment of $404 million is based on maximum capacity. At December 31, 2021, Brighthouse Financial, Inc. and its subsidiaries (“Brighthouse”), a former subsidiary of MetLife, Inc., is a beneficiary of $2.5 billion of letters of credit issued under this facility and, in consideration, Brighthouse reimburses MetLife, Inc. for a portion of the letter of credit fees.

In addition to the Committed Facilities, see also “— Other Notes” for information about the Credit Agreement.