Long-term and Short-term Debt

12 Months Ended

Dec. 31, 2012

Long-term and Short-term Debt [Abstract]

Long-term and Short-term Debt

12.  Long-term and Short-term Debt

Long-term and short-term debt outstanding was as follows:

	Interest Rates (1)
	Range	Weighted    Average		Maturity	December 31,
					2012		2011
					(In millions)
Senior notes	0.79% - 7.72%		4.83 %	2013 - 2045	$	15,669	$	15,666
Advances agreements	0.23% - 4.86%		2.33 %	2012		—		4,179
Surplus notes	7.63% - 7.88%		7.84 %	2015 - 2025		700		700
Other notes	0.22% - 8.00%		4.47 %	2016 - 2030		133		42
Capital lease obligations						33		37
Total long-term debt (2)						16,535		20,624
Total short-term debt						100		686
Total					$	16,635	$	21,310

(1) Range of interest rates and weighted average interest rates are for the year ended December 31, 2012.

(2) Excludes $2.5 billion and $3.1 billion of long-term debt relating to CSEs at December 31, 2012 and 2011, respectively. See Note 8.

The aggregate maturities of long-term debt at December 31, 2012 for the next five years and thereafter are $753 million in 2013, $1.3 billion in 2014, $1.2 billion in 2015, $1.2 billion in 2016, $504 million in 2017 and $11.5 billion thereafter.

Advances agreements and capital lease obligations are collateralized and rank highest in priority, followed by unsecured senior debt which consists of senior notes and other notes, followed by subordinated debt which consists of junior subordinated debt securities (see Note 14). Payments of interest and principal on the Company’s surplus notes, which are subordinate to all other obligations at the operating company level and are senior to obligations at MetLife, Inc., may be made only with the prior approval of the insurance department of the state of domicile. Collateral financing arrangements (see Note 13) are supported by either surplus notes of subsidiaries or financing arrangements with MetLife, Inc. and, accordingly, have priority consistent with other such obligations.

Certain of the Company’s debt instruments, credit facilities and committed facilities contain various administrative, reporting, legal and financial covenants. The Company believes it was in compliance with all such covenants at December 31, 2012.

Senior Notes — Senior Debt Securities Underlying Common Equity Units

In connection with the financing of the ALICO Acquisition, in November 2010, MetLife, Inc. issued to AM Holdings $3.0 billion (estimated fair value of $3.0 billion) of three series of Debt Securities, which constitute a part of the common equity units more fully described in Note 15.

In October 2012, MetLife, Inc. closed the successful remarketing of the Series C Debt Securities underlying the common equity units. The Series C Debt Securities were remarketed as 1.756% Series C senior debt securities Tranche 1 and 3.048% Series C senior debt securities Tranche 2, due December 2017 and December 2022, respectively. MetLife, Inc. did not receive any proceeds from the remarketing.

The Series D Debt Securities and Series E Debt Securities initially bear interest at 1.92% and 2.46%, respectively (an average rate of 2.19%), initially mature in June 2024 and June 2045, respectively, and are subject to remarketing. The interest rates will be reset in connection with the successful remarketings of the Debt Securities. Prior to the first scheduled attempted remarketing of the Series E Debt Securities, such Debt Securities will be divided into two tranches equal in principal amount with maturity dates of June 2018 and June 2045.

Senior Notes — Other Issuances

In August 2012, MetLife, Inc. issued $750 million of senior notes due in August 2042. The senior notes bear interest at a fixed rate of 4.125%, payable semi-annually. In connection with the issuance, MetLife, Inc. incurred $7 million of related costs which have been capitalized and included in other assets. These costs are being amortized over the term of the senior notes.

In August 2010, in anticipation of the ALICO Acquisition, MetLife, Inc. issued senior notes as follows:

• $1.0 billion senior notes due February 6, 2014, which bear interest at a fixed rate of 2.375%, payable semiannually;

• $1.0 billion senior notes due February 8, 2021, which bear interest at a fixed rate of 4.75%, payable semiannually;

• $750 million senior notes due February 6, 2041, which bear interest at a fixed rate of 5.875%, payable semiannually; and

• $250 million floating rate senior notes due August 6, 2013, which bear interest at a rate equal to three-month LIBOR, reset quarterly, plus 1.25%, payable quarterly.

In connection with these senior note issuances, MetLife, Inc. incurred $15 million of issuance costs which have been capitalized and included in other assets. These costs are being amortized over the terms of the senior notes.

Advances from the Federal Home Loan Bank of New York

MetLife Bank has been a member of the FHLB of NY and, in connection with such membership, entered into advances agreements with the FHLB of NY under which MetLife Bank received cash advances, which were reflected in long-term debt or short-term debt according to the tenor of the advances. In January 2012, MetLife Bank discontinued taking advances from the FHLB of NY. In April 2012, MetLife Bank transferred cash to MLIC related to $3.8 billion of outstanding advances which had been included in long-term debt, and MLIC assumed the associated obligations under terms similar to those of the transferred advances by issuing funding agreements for which the liability is included in PABs. During the year ended December 31, 2012, MetLife Bank did not receive advances. During the years ended December 31, 2011 and 2010, MetLife Bank received advances totaling $1.3 billion and $2.1 billion, respectively. During the years ended December 31, 2012, 2011 and 2010, MetLife Bank made repayments totaling $374 million, $750 million, and $349 million, respectively, related to long-term borrowings under the advances agreements. The amount of MetLife Bank’s liability for advances was $4.8 billion at December 31, 2011, which was included in long-term debt and short-term debt depending upon the original tenor of the advance. There was no long-term debt or short-term debt liability for advances at December 31, 2012.

Short-term Debt

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

	December 31,
	2012		2011
	(In millions)
Commercial paper	$	100	$	101
MetLife Bank, N.A. - Advances agreements with the FHLB of NY		—		585
Total short-term debt	$	100	$	686
Average daily balance	$	119	$	447
Average days outstanding		40 days		19 days

During the years ended December 31, 2012, 2011 and 2010, the weighted average interest rate on short-term debt was 0.17%, 0.33% and 0.35%, respectively.

Interest Expense

Interest expense related to long-term and short-term debt included in other expenses was $871 million, $975 million and $815 million for the years ended December 31, 2012, 2011 and 2010, respectively. Such amounts do not include interest expense on collateral financing arrangements, junior subordinated debt securities, common equity units or long-term debt related to CSEs. See Notes 8, 13, 14 and 15.

Credit and Committed Facilities

The Company maintains unsecured credit facilities and committed facilities, which aggregated $4.0 billion and $12.4 billion, respectively, at December 31, 2012. When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.

Credit Facilities

The unsecured credit facilities are used for general corporate purposes, to support the borrowers’ commercial paper programs and for the issuance of letters of credit. Total fees expensed associated with these credit facilities were $30 million, $35 million and $17 million for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in other expenses. Information on these credit facilities at December 31, 2012 was as follows:

Borrower(s)	Expiration	Capacity		Letter of Credit Issuances		Drawdowns		Unused    Commitments
		(In millions)
MetLife, Inc. and MetLife Funding, Inc.	September 2017 (1)	$	1,000	$	365	$	—	$	635
MetLife, Inc. and MetLife Funding, Inc.	August 2016		3,000		2,203		—		797
Total		$	4,000	$	2,568	$	—	$	1,432

(1) In September 2012, MetLife, Inc. and MetLife Funding, Inc. entered into a $1.0 billion five-year credit agreement which amended and restated the three-year agreement dated October 2010. All borrowings under the 2012 five-year credit agreement must be repaid by September 2017, except that letters of credit outstanding on that date may remain outstanding until no later than September 2018. MetLife, Inc. incurred costs of $4 million related to the amended and restated credit facility, which have been capitalized and included in other assets. These costs will be amortized over the remaining term of the amended and restated credit facility.

Committed Facilities

The committed facilities are used for collateral for certain of the Company’s affiliated reinsurance liabilities. Total fees expensed associated with these committed facilities were $96 million, $93 million and $92 million for the years ended December 31, 2012, 2011 and 2010, respectively, and are included in other expenses. Information on these committed facilities at December 31, 2012 was as follows:

Account Party/Borrower(s)	Expiration	Capacity		Letter of Credit   Issuances		Drawdowns		Unused  Commitments
		(In millions)
MetLife, Inc.	August 2013	$	300	$	300	$	—	$	—
Exeter Reassurance Company, Ltd.,
MetLife, Inc. & Missouri
Reinsurance, Inc.	June 2016		500		490		—		10
MetLife Reinsurance Company of
Vermont & MetLife, Inc.	December 2020 (1)		350		350		—		—
Exeter Reassurance Company, Ltd.	December 2027 (1)		650		555		—		95
MetLife Reinsurance Company of
South Carolina & MetLife, Inc.	June 2037 (2)		3,500		—		2,797		703
MetLife Reinsurance Company of
Vermont & MetLife, Inc.	December 2037 (1)		2,896		1,825		—		1,071
MetLife Reinsurance Company of
Vermont & MetLife, Inc.	September 2038 (1)		4,250		2,018		—		2,232
Total		$	12,446	$	5,538	$	2,797	$	4,111

(1) MetLife, Inc. is guarantor under this agreement.

(2) The drawdown on this facility is associated with a collateral financing arrangement described more fully in Note 13.

As a result of the offerings of certain senior notes (see “— Senior Notes — Other Issuances”) and common stock (see Note 16), the commitment letter for a $5.0 billion senior credit facility, which MetLife, Inc. signed to partially finance the ALICO Acquisition, was terminated. During March 2010, MetLife, Inc. paid $28 million in fees related to this senior credit facility, all of which were included in other expenses during the year ended December 31, 2010.