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    METLIFE FOUNDATION REPORT OF CONTRIBUTIONS 2012 Building a secure future for individuals and communities worldwide


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    MetLife Foundation was established in 1976 to continue MetLife’s long tradition of corporate < Contributions > contributions and community involvement. Our 36-year commitment to building a secure future for individuals and communities worldwide is reflected in our focus on empowering older adults, preparing young people and building livable communities. Employee Related Programs 8% Empowering Older Adults: Older adults are integral to building a secure future for individuals and communities worldwide. Through education and mentoring programs, caregiving, the pursuit of “encore” careers and volunteer work, they are making significant contributions to the development of our youth, civic institutions and economic vitality. Building Livable Preparing Young People: The promise of a brighter future rests with our young people and MetLife Foundation Communities 32% is committed to helping them navigate through opportunities and obstacles toward a path to success. Classroom education and student achievement are effective vehicles to address many of the obstacles young Preparing Young People people will encounter, yet to be successful we must move beyond the classroom to after-school and summer 42% programs, including mentoring and arts education. Our children are also confronted with basic health challenges, Empowering Older Adults which we can help address by embracing healthy lifestyles built on sound nutrition and exercise while avoiding 18% the temptations and pressures that lead to drug use. Building Livable Communities: Communities are the building blocks of society, a reflection of the attitudes, beliefs and priorities of our families and neighbors. Unfortunately, in communities across the country, many go hungry, struggle to find affordable housing or are marginalized and unable to enjoy all their community offers. 2012 Total Support: $41,107,662 MetLife Foundation believes that livable communities must meet basic needs of the less fortunate and provide all of its citizens with cultural, social and economic opportunities. 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹1›


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    < Report of Contributions > BUILDING LIVABLE COMMUNITIES Feeding America Tampa Bay 60,000 Northern Illinois Food Bank 35,000 Basic Needs Fifth Avenue Committee 50,000 Opportunity Finance Network 75,000 American Red Cross - Food Bank for New York City 150,000 PFLAG 35,000 contributions Hurricane Sandy Relief $ 500,000 Food Bank of Central New York 35,000 Rebuilding Together 5,000 – BUILDING LIVABLE COMMUNITIES ‹2› AmeriCares Foundation* 100,000 Food Bank of Iowa 25,000 Regional Plan Association 25,000 Asian Americans for Equality 150,000 Foodshare, Inc 50,000 Rhode Island Community Asian Community Development Foundation Center 7,500 Food Bank Association 50,000 – EMPOWERING OLDER ADULTS ‹3› Corporation 20,000 Riverfront Recapture 10,000 Greater Boston Food Bank 75,000 Atlanta Community Food Bank 35,000 Greater Southwest Development Rosie’s Place 10,000 – PREPARING YOUNG PEOPLE ‹4› Beyond Shelter 45,000 Corporation 50,000 San Francisco Food Bank 25,000 Bickerdike Redevelopment HomeFront 50,000 Somerset County Business – EMPLOYEE-RELATED PROGRAMS ‹5› Corporation 50,000 Housing and Community Partnership 10,000 BoardSource 50,000 Development Network of New Jersey 50,000 Special Olympics Rhode Island 5,000 – METLIFE FOUNDATION Boston Foundation 40,000 Human Rights Campaign Foundation 25,000 St. Louis Area Food Bank 50,000 AUDITED FINANCIAL STATEMENT ‹ 6 -12 › Chicago Community Loan Fund 50,000 Independent Sector 15,000 The Foodbank, Inc. 25,000 Chinatown Community International Medical Corps* 250,000 Trust for Public Land 600,000 Development Center 40,000 KaBOOM! 440,000 United Way Worldwide* 210,000 Citizens Committee for KaBOOM! - International* 200,000 Women’s Housing and Economic New York City 50,000 Lawyers Alliance for New York 10,000 Development Corporation 50,000 Citizens Crime Commission of Living Cities 75,000 Basic Needs Total $7,423,500 New York City 25,000 Local Initiatives Support City Parks Alliance 10,000 Corporation 760,000 Access to the Arts Codman Square Neighborhood Low Income Investment Fund 250,000 Alvin Ailey Dance Foundation $ 90,000 Development Corporation 45,000 American Folk Art Museum 15,000 LTSC Community Development Common Ground 35,000 Corporation 45,000 American Symphony Community Hope 15,000 Madison Park Development Orchestra League 160,000 Community Food Bank of Corporation 25,000 Americas Society 75,000 Eastern Oklahoma 35,000 Massachusettss Association of Arts Midwest 20,000 Community FoodBank of Community Development Asian American Arts Alliance 25,000 New Jersey 150,000 Corporations 10,000 Association of Performing Arts Community Foundation of Mayors Fund to Advance Presenters 175,000 New Jersey 250,000 New York City 250,000 Ballet Hispanico of New York 125,000 Community Loan Fund of National Urban Fellows 25,000 New Jersey 35,000 Baltimore Children’s Museum 30,000 National Urban League 500,000 Corporation for Supportive Housing 200,000 Blue Star Families 250,000 Neighborhood Housing Services Delaware Greenways 1,000 of New York City 50,000 Boston Symphony Orchestra 50,000 Dorchester Bay Economic New York City Partnership Bronx Museum of the Arts 75,000 Development Corporation 35,000 Foundation 70,000 Brooklyn Academy of Music 75,000 East Bay Asian Local Development New York University 50,000 Brooklyn Arts Council 30,000 Corporation 45,000 New York State United Teachers Carnegie Hall 50,000 Enterprise Community Partners 310,000 Disaster Relief Fund 5,000 Chamber Music Society of ‹2› Feeding America 150,000 North Texas Food Bank 75,000 Lincoln Center 35,000


  • Page 4

    Chicago Public Media Cityfolk Clubbed Thumb Dance USA Dancing Wheels Exploratorium 25,000 15,000 15,000 150,000 35,000 150,000 New York Public Radio Orpheus Chamber Orchestra Orpheus Chamber Orchestra - Japan Tour* Pacific Asia Museum Pacific Symphony Orchestra 50,000 150,000 200,000 15,000 35,000 EMPOWERING OLDER ADULTS Alzheimer’s Disease Alliance for Aging Research Alzheimer’s Association Alzheimer’s Association, NYC Chapter $ 50,000 450,000 35,000 2012 ‹2› BUILDING LIVABLE COMMUNITIES – Grantmakers in the Arts 20,000 Pan Asian Repertory Theatre 25,000 Alzheimer’s Disease International* 277,000 Paper Mill Playhouse 25,000 ‹3› EMPOWERING OLDER ADULTS – Greater Hartford Arts Council 35,000 Alzheimer’s Disease Research Hartford Symphony Orchestra 35,000 Paul Taylor Dance Foundation 125,000 Foundation 200,000 High Line 100,000 Pilobolus 75,000 Awards for Medical Reaserch 910,000 ‹4› PREPARING YOUNG PEOPLE – High Museum of Art 50,000 Ping Chong Company 40,000 Dana Alliance for Brain Initiatives 100,000 Highbridge Voices 7,500 Providence Children’s Musem 25,000 Fisher Center for Alzheimer’s ‹5› EMPLOYEE-RELATED PROGRAMS – Holocaust Memorial Foundation Public Theater 35,000 Research Foundation 110,000 of Illinois 15,000 Queens Museum of Art 30,000 National Council of La Raza 150,000 ‹ 6 -12 › METLIFE FOUNDATION – HT Chen & Dancers 30,000 Repertorio Espanol 100,000 National League for Nursing 125,000 AUDITED FINANCIAL STATEMENT International Museum of Women 150,000 Shakespeare Theatre of New Jersey 15,000 New York Academy of Sciences 125,000 Japan Society 60,000 Smithsonian Institution Traveling University of Pennsylvania 75,000 Jewish Museum 30,000 Exhibition Service 125,000 Alzheimer’s Disease Total $2,607,000 Joyce Theater 65,000 St. Louis Symphony Orchestra 20,000 Lincoln Center for the Performing Arts 50,000 St. Luke’s Chamber Ensemble 25,000 Healthy Aging Los Angeles Philharmonic 35,000 State Theatre Regional Alliance for Aging Research $ 150,000 Lower East Side Tenement Museum 25,000 Arts Center at New Brunswick 15,000 American Federation for Manhattan Theatre Club 30,000 Studio Museum in Harlem 30,000 Aging Research 220,000 Mark Morris Dance Company 125,000 Taproot Foundation 150,000 American Society on Aging 330,000 Metropolitan Museum of Art 130,000 Theatre Communications Group 300,000 Brooklyn Arts Council 15,000 Miami Art Museum 35,000 Theatre Development Fund 25,000 City Futures 45,000 Morris Museum 15,000 Trey McIntyre Project 30,000 Civic Ventures 250,000 Munson Williams Proctor Institute 10,000 Victory Gardens Theater 10,000 Common Ground 150,000 Museum of Chinese in the Americas 30,000 Volunteer Lawyers for the Arts 20,000 Council for Adult and Experiential Wing Luke Museum 40,000 Learning 250,000 Museum of Modern Art 250,000 Access to the Arts Total $5,732,500 Dance Exchange 175,000 Museum of Science - Miami 150,000 EnGage 100,000 National Association of Latino Building Livable Communities Arts and Cultures 50,000 Experience Matters Consortium 12,000 Total $ 13,156,000 Generations United 275,000 National Performance Network 50,000 New England Foundation for the Arts 300,000 Gerontological Society of America 100,000 New Music USA 125,000 Grantmakers in Aging 5,000 New York City Ballet 25,000 Grantmakers in Health 8,500 New York City Center 175,000 HelpAge* 215,000 New York Public Library 120,000 Jumpstart for Young Children 250,000 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹3›


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    < Report of Contributions > National Alliance for Caregiving 250,000 Communities in Schools 750,000 American Heart Association 250,000 National Association of Cornerstone OnDemand Foundation 70,000 Arts Council of the Morris Area 12,000 Area Agencies on Aging 250,000 Developmental Studies Center 500,000 ArtsConnection 50,000 contributions National Center for Creative Aging 200,000 Donorschoose.org 10,000 Association of Children’s Museums 235,000 National Council on the Aging 225,000 Editorial Projects in Education 250,000 Baltimore Symphony Orchestra 30,000 – BUILDING LIVABLE COMMUNITIES ‹2› National Family Caregivers 50,000 Education Pioneers 200,000 BELL Foundation 70,000 National Guild for Community Farm Foundation 5,000 Big Brothers Big Sisters of America 500,000 – EMPOWERING OLDER ADULTS ‹3› Arts Education 175,000 First Star 25,000 Boys & Girls Club of Trenton & NCB Capital Impact 250,000 Grantmakers for Education 10,000 Mercer County 7,500 – PREPARING YOUNG PEOPLE ‹4› New York Academy of Medicine 150,000 Hispanic Scholarship Fund 30,000 Boys & Girls Clubs of America 120,000 Pacific Science Center 50,000 Institute for Educational Leadership 250,000 Boys & Girls Clubs of Hartford 50,000 – EMPLOYEE-RELATED PROGRAMS ‹5› Partners for Livable Communities 250,000 Institute for Knowledge Brooklyn Children’s Museum 35,000 ReServe Elder Service 65,000 Management in Education 50,000 Camp Courant 10,000 – METLIFE FOUNDATION Rubin Museum of Art 50,000 Learning Forward 350,000 CASA of Morris & Sussex Counties 5,000 AUDITED FINANCIAL STATEMENT ‹ 6 -12 › SAGE 50,000 MDRC 100,000 Chicago Children’s Museum 35,000 Society for the Arts in Healthcare 75,000 National Association of Children’s Health Fund 250,000 Society of the Third Street Music Elementary School Principals 250,000 Children’s Museum of Pittsburgh 50,000 Settlement 20,000 National Association of Citizen Schools 250,000 The Resource Foundation* 165,000 Secondary School Prinicpals 415,000 City Year 250,000 University of Pennsylvania 75,000 National FFA Foundation 21,250 Communities in Schools 250,000 Healthy Aging Total $ 4,900,500 New Leaders 250,000 Education through Music 25,000 New Teacher Center 350,000 Educational Alliance 35,000 Empowering Older Adults One to World 10,000 Total $7,507,500 Egypt Cancer Network* 25,000 School Leaders Network 250,000 EMCArts 550,000 STRIVE 250,000 Girl Scouts of the USA 600,000 PREPARING YOUNG PEOPLE United Negro College Fund 50,000 Girls, Inc. 80,000 Student Achievement University of Texas Foundation 250,000 Harlem RBI 10,000 ACCESS $ 250,000 What Kids Can Do 100,000 INROADS 200,000 ACHIEVE 150,000 Student Achievement Johns Hopkins - Actuarial Foundation 10,000 Total $ 7,826,250 School of Public Health 250,000 Alliance for Excellent Education 350,000 Junior Achievement Worldwide* 325,000 Youth Development American Council on Education 1,000,000 Junior Achievement (Various) 130,500 Aaron Davis Hall $ 40,000 American Indian College Fund 15,000 Madison Area YMCA 5,000 Advertising Council 25,000 Asia Society 250,000 Midland Adult Services 10,000 Afterschool Alliance 300,000 Association of American Midori Foundation 60,000 Colleges and Universities 250,000 All Stars Project 75,000 Morristown Neighborhood House 25,000 Center for Teaching Quality 250,000 American Academy of Family Physicians Foundation 250,000 Museum of Science, Boston 75,000 Center on School, Family and National 4-H Council 225,000 Community Partnerships 150,000 American Academy of Pediatrics 250,000 American Dietetic Association 225,000 National Conference for College Summit 355,000 Community & Justice 10,000 ‹4›


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    National Guild for Community Arts Education New York Academy of Medicine New York Blood Center New York Botanical Garden New York Philharmonic 275,000 75,000 125,000 350,000 325,000 EMPLOYEE-RELATED PROGRAMS Employee Children’s Scholarship Programs Employee Volunteer Programs Local United Ways Matching Gifts $ 369,360 680,700 1,130,000 875,352 2012 ‹2› BUILDING LIVABLE COMMUNITIES – Nonprofit Finance Fund 150,000 Employee-Related Programs Outreach Development Total $ 3,055,412 ‹3› EMPOWERING OLDER ADULTS – Corporation 25,000 Partnership for a ‹4› PREPARING YOUNG PEOPLE – Drug-Free America 350,000 MetLife Foundation Partnership for Total $ 41,107,662 ‹5› EMPLOYEE-RELATED PROGRAMS – After School Education 55,000 * - International Grants Police Athletic League 75,000 Reach Out and Read 200,000 ‹ 6 -12 › METLIFE FOUNDATION – Reading Excellence and AUDITED FINANCIAL STATEMENT Discovery Foundation 7,500 Resources for Children with Special Needs 40,000 Sesame Workshop* 650,000 Sphinx Organization 50,000 St. Louis Art Museum 10,000 Staten Island Institute of Arts and Science 20,000 Studio in a School Organization 50,000 Tampa Bay Performing Arts Center 25,000 University of Scranton 10,000 Urban Gateways: Center for Arts Education 50,000 Washington Drama Society 25,000 Wellness in the Schools 15,000 Women in Need 25,000 World Savvy 50,000 YMCA of Metropolitan Chicago 15,000 Young Audiences 100,000 Zero to Three 150,000 Youth Development Total $ 9,562,500 Preparing Young People Total $ 17,388,750 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹5›


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    INDEPENDENT AUDITORS’ REPORT To the Board of Directors of MetLife Foundation: We have audited the accompanying financial statements of MetLife Foundation (the “Foundation”), which comprise the statements of financial position as of December 31, 2012 and 2011, and the related statements of activities and changes in net assets and cash flows for the years then ended, and the related notes to the financial statements. < MetLife Foundation Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted Audited Financial Statement > in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility financials Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards – BUILDING LIVABLE COMMUNITIES ‹2› generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. – EMPOWERING OLDER ADULTS ‹3› An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Foundation’s preparation and fair presentation of the financial statements – PREPARING YOUNG PEOPLE ‹4› in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and – EMPLOYEE-RELATED PROGRAMS ‹5› the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. – METLIFE FOUNDATION Opinion AUDITED FINANCIAL STATEMENT ‹ 6 -12 › In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of December 31, 2012 and 2011, and the changes in net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. February 19, 2013 METLIFE FOUNDATION STATEMENTS OF FINANCIAL POSITION—DECEMBER 31, 2012 and 2011 ASSETS NOTES 2012 2011 Investments: Investments, at fair value: Equity investments $ 132,287,923 $ 113,713,585 Short-term investments 28,192,568 19,398,277 Program-related investments 1 3,512,691 4,477,506 Total investments 163,993,182 137,589,368 Cash and cash equivalents 1 2,321,933 2,330,600 Federal excise tax recoverable – 61,432 Due and accrued investment income 3,859 8,910 TOTAL ASSETS $166,318,974 $139,990,310 LIABILITIES AND NET ASSETS Cash overdraft 1 $ 925,589 $ 422,170 Accrued expenses payable 447,500 1,500 Federal excise tax payable 164,547 – Amounts payable for investments acquired 7,999,203 – Total liabilities 9,536,839 423,670 Net assets—unrestricted 156,782,135 139,566,640 ‹6› TOTAL LIABILITIES AND NET ASSETS $166,318,974 $139,990,310 See notes to financial statements


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    METLIFE FOUNDATION STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 REVENUE Investment income: Dividends and interest Change in fair value of investments Contributions from MetLife NOTES 1 3 $ 2012 3,351,804 8,196,133 47,500,000 $ 2011 3,184,832 2,694,844 50,000,000 2012 ‹2› BUILDING LIVABLE COMMUNITIES – Total revenue 59,047,937 55,879,676 GRANTS AND EXPENSES ‹3› EMPOWERING OLDER ADULTS – Grants: Paid 41,107,662 41,938,306 ‹4› PREPARING YOUNG PEOPLE – Change in accrual for unconditional grants – (1,021,888) Total grants 41,107,662 40,916,418 ‹5› EMPLOYEE-RELATED PROGRAMS – General expenses 4 498,800 52,800 Federal excise tax 5 225,980 58,472 ‹ 6 -12 › METLIFE FOUNDATION – Total grants and expenses 41,832,442 41,027,690 AUDITED FINANCIAL STATEMENT CHANGE IN NET ASSETS 17,215,495 14,851,986 Net Assets—beginning of year 139,566,640 124,714,654 NET ASSETS — end of year $156,782,135 $139,566,640 See notes to financial statements METLIFE FOUNDATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011 CASH FLOWS FROM OPERATING ACTIVITIES: 2012 2011 Change in net assets $ 17,215,495 $ 14,851,986 Adjustments to reconcile change in net assets to net cash provided by operating activities: Change in fair value of investments (8,196,133) (2,694,844) Accretion of discount/amortization of premiums on investments (15,089) 14,429 Change in due and accrued investment income 5,051 528,137 Change in federal excise tax payable/recoverable 225,979 (71,528) Change in cash overdraft 503,419 (436,877) Change in accrued expenses 446,000 – Change in unconditional grants payable – (1,021,888) Net cash provided by operating activities 10,184,722 11,169,415 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 40,618,668 140,729,629 Purchase of investments (50,812,057) (152,683,702) Net cash used in investing activities (10,193,389) (11,954,073) NET CHANGE IN CASH AND CASH EQUIVALENTS: (8,667) (784,658) Cash and cash equivalents - beginning of year 2,330,600 3,115,258 CASH AND CASH EQUIVALENTS — end of year $ 2,321,933 $ 2,330,600 Supplemental disclosures of cash flow information — $ – $ 130,000 Federal excise taxes paid See notes to financial statements 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹7›


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    < MetLife Foundation Audited Financial Statement > METLIFE FOUNDATION NOTES TO possible losses is established when the Estimates—The preparation of the financial FINANCIAL STATEMENTS FOR THE YEARS Foundation does not expect repayment in statements in conformity with GAAP requires ENDED DECEMBER 31, 2012 AND 2011 full on any program-related loan and when management to make estimates and such uncollectible amount can be reasonably assumptions that affect the reported amounts financials The MetLife Foundation (the “Foundation”) was formed for the purpose of supporting estimated. As of December 31, 2012 and of assets and liabilities and the disclosure – BUILDING LIVABLE COMMUNITIES ‹ 2 › December 31, 2011, this allowance was zero. of contingent assets and liabilities at the various philanthropic organizations and activities. In addition, the income generated by the date of the financial statements and the – EMPOWERING OLDER ADULTS ‹ 3 › program-related loans is generally dependent reported amounts of revenues and expenses 1. ACCOUNTING POLICIES upon the financial ability of the borrowers during the reporting period. Actual results – PREPARING YOUNG PEOPLE ‹ 4 › Summary of Significant Accounting to keep current on their obligations. For could differ from these estimates. Since the Policies disclosure purposes, a reasonable estimate of obligation to make payment of conditional fair value was not made since the difference multi-year grants and program-related loans – EMPLOYEE-RELATED PROGRAMS ‹ 5 › The Foundation’s financial statements have between fair value and the outstanding is dependent upon each grantee/borrower’s been prepared in accordance with accounting indebtedness or cost would not be satisfaction of the applicable conditions, – METLIFE FOUNDATION principles generally accepted in the United significant. Maturities of the loan investments the amount of conditional multi-year grants States of America (“GAAP”) which recognize range from 2021 through 2022. and program-related loans reported as AUDITED FINANCIAL STATEMENT ‹ 6 -12 › income when earned and expenses when commitments is based upon the expected or incurred. Cash Equivalents and Cash Overdraft— Cash equivalents are highly liquid estimated fulfillment of such conditions. Investments at Fair Value—During 2011, investments purchased with an original or 2. FAIR VALUE in order to further diversify its investments remaining maturity of three months or less portfolio and generate incremental value over The Foundation has elected to measure its at the date of purchase and are carried at equity investments, short-term investments the long-term, the Foundation implemented fair value. The Foundation generally invests a new investment policy which resulted in the and cash equivalents at fair value with funds required for cash disbursements in related holdings gains and losses reported in transition of all bonds and equity securities cash equivalents and transfers such funds to to Exchange Traded Funds (ETFs). ETF’s are investment income. its operating bank account when checks are reported within equity investments. Short- presented for payment. The cash overdrafts When developing estimated fair values, the term investments include investments with at December 31, 2012 and December 31, Foundation considers three broad valuation remaining maturities of one year or less, 2011 represent grant disbursements that techniques: (i) the market approach, (ii) but greater than three months, at the time cleared the operating bank account in 2013 the income approach, and (iii) the cost of acquisition. Related holdings gains and and 2012, respectively. approach. The Foundation determines the losses are reported in investment income. The most appropriate valuation technique to Foundation is not exposed to any significant Contributions—All contributions received use, given what is being measured and concentration of credit risk in its investment to date by the Foundation have been the availability of sufficient inputs, giving portfolio. unrestricted and, therefore, all of its priority to observable inputs. The Foundation net assets are similarly unrestricted. All categorizes its assets and liabilities measured Program-Related Investments—Such contributions received during 2012 and 2011 investments are authorized by the Board at estimated fair value into a three-level have been from MetLife, Inc. and subsidiaries hierarchy, based on the significant input with of Directors and represent loans to or (“MetLife”). equity investments in qualified charitable the lowest level in its valuation. The input organizations or investments for appropriate Grants—Such transactions are authorized levels are as follows: charitable purposes as set forth in the by the Board of Directors. Conditional grants Internal Revenue Code and regulations authorized for payment in future years are thereunder, and are carried at outstanding subject to further review and approval by the indebtedness or cost. An allowance for Foundation. ‹8›


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    Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Foundation defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Foundation’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. 2012 ‹2› BUILDING LIVABLE COMMUNITIES – Recurring Fair Value Measurements Level 2 Quoted prices in markets that are and increases the use of judgment in ‹3› EMPOWERING OLDER ADULTS – determining the estimated fair value of The estimated fair values and their not active or inputs that are observable corresponding placement in the fair value either directly or indirectly. These inputs certain securities. ‹4› PREPARING YOUNG PEOPLE – hierarchy are summarized as follows: can include quoted prices for similar assets or liabilities other than quoted prices in ‹5› EMPLOYEE-RELATED PROGRAMS – Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally ‹ 6 -12 › METLIFE FOUNDATION – from or corroborated by observable market AUDITED FINANCIAL STATEMENT data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Total Estimated Level 1 Level 2 Level 3 Fair Value December 31, 2012: Equity investments $ 132,272,923 – $ 15,000 $ 132,287,923 Short-term investments 27,192,568 – 1,000,000 28,192,568 Cash equivalents – 2,099,780 – 2,099,780 Total $ 159,465,491 $ 2,099,780 $ 1,015,000 $ 162,580,271 December 31, 2011: Equity investments $ 113,698,585 – $ 15,000 $ 113,713,585 Short-term investments 7,999,054 7,399,670 3,999,553 19,398,277 Cash equivalents – – 2,198,718 2,198,718 Total $ 121,697,639 $ 7,399,670 $ 6,213,271 $ 135,310,580 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹9›


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    The following describes the valuation methodologies used to measure assets at fair value. The description includes the valuation techniques and key inputs for each category of assets that are classified within Level 2 and Level 3 of the fair value hierarchy. believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. Level 2 Valuation Techniques and Key Inputs: This level includes short-term or inputs that cannot be derived principally from, or corroborated by, observable market data; and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain valuations are based on 2012 ‹2› BUILDING LIVABLE COMMUNITIES – investments and cash equivalents priced Equity Investments, Short-term principally by independent pricing services independent non-binding broker quotations. ‹3› EMPOWERING OLDER ADULTS – Investments and Cash Equivalents using observable inputs. These securities Equity investments These investments When available, the estimated fair value are principally valued using the market are principally valued using the market ‹4› PREPARING YOUNG PEOPLE – of these investments is based on quoted approach. Valuation is based primarily approach. Valuations are based primarily prices in active markets that are readily on quoted prices in markets that are not on quoted prices in active markets that ‹5› EMPLOYEE-RELATED PROGRAMS – and regularly obtainable. Generally, these active or using matrix pricing or other are readily and regularly obtainable and are the most liquid of the Foundation’s similar techniques using standard market are classified in Level 1. Certain of these securities holdings and valuation of these observable inputs such as benchmark U.S. securities, including privately held securities, ‹ 6 -12 › METLIFE FOUNDATION – securities does not involve management’s Treasury yield curve, the spread off the are valued based on the market approach AUDITED FINANCIAL STATEMENT judgment. U.S. Treasury yield curve for the identical matrix pricing and the inputs include security and comparable securities that quoted prices for identical securities that When quoted prices in active markets are actively traded. are less liquid and based on lower levels of are not available, the determination of trading activity than securities classified in estimated fair value is based on market Level 3 Valuation Techniques and Key Inputs: In general, the investments Level 2 and independent non-binding standard valuation methodologies, broker quotations. giving priority to observable inputs. The classified within Level 3 use many of the significant inputs to the market standard same valuation techniques and inputs Transfers between Levels valuation methodologies for certain types as described in the Level 2 Valuation During the year ended December 31, of securities with reasonable levels of price Techniques and Key Inputs. However, 2012 and 2011, there were no transfers transparency are inputs that are observable if key inputs are unobservable, or if the between levels. in the market or can be derived principally investments are less liquid and there is very from, or corroborated by, observable limited trading activity, the investments are market data. When observable inputs generally classified as Level 3. The use of are not available, the market standard independent non-binding broker quotations valuation methodologies rely on inputs to value investments generally indicates that are significant to the estimated fair there is a lack of liquidity or a lack of value that are not observable in the market transparency in the process to develop the or cannot be derived principally from, or valuation estimates, generally causing these corroborated by, observable market data. investments to be classified in Level 3. These unobservable inputs can be based Short-term investments These in large part on management’s judgment investments are principally valued using or estimation and cannot be supported by the market approach. Valuations are based reference to market activity. Even though primarily on matrix pricing or other similar these inputs are unobservable, management techniques that utilize unobservable inputs 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹ 10 ›


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    Assets and Liabilities Measured at Fair the fair value measurement for the more Value Using Significant Unobservable significant asset and liability classes Inputs (Level 3) measured at fair value on a recurring basis using significant unobservable inputs 2012 The following table presents certain quantitative information about the (Level 3) at December 31, 2012. significant unobservable inputs used in Valuation Significant Techniques Unobservable Inputs Range Short-term investments • Consensus pricing • Offered quotes (1) 100–100 (1) For this unobservable input, range is presented in accordance with the market convention ‹2› BUILDING LIVABLE COMMUNITIES – for fixed maturity securities of dollars per hundred dollars of par. ‹3› EMPOWERING OLDER ADULTS – ‹4› PREPARING YOUNG PEOPLE – The following tables summarize the change no unrealized or realized gains (losses) of all assets measured at estimated fair on Level 3 assets during the years ended ‹5› EMPLOYEE-RELATED PROGRAMS – value on a recurring basis using significant December 31, 2012 and 2011. unobservable inputs (Level 3). There were ‹ 6 -12 › METLIFE FOUNDATION – AUDITED FINANCIAL STATEMENT Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 December 31, 2012: Equity investments $ 15,000 $ – $ – $ – $ 15,000 Short-term investments 3,999,553 447 1,000,000 (4,000,000) 1,000,000 Cash equivalents 2,198,718 514 – (2,199,232) – December 31, 2011: Equity investments $ 15,178 $ – $ – $ (178) $ 15,000 Short-term investments – 451 3,999,102 – 3,999,553 Cash equivalents – 810 2,197,908 – 2,198,718 (1) Amortization of premium/discount is included within investment income. Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. 2012 METLIFE FOUNDATION REPORT OF CONTRIBUTIONS ‹ 11 ›


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    < MetLife Foundation Audited Financial Statement > 3. CONTRIBUTIONS 6. COMMITMENTS 7. SUBSEQUENT EVENTS In 2012 and 2011, MetLife contributed As of December 31, 2012, the Board The Foundation has evaluated all subsequent cash of $47,500,000 and $50,000,000, of Directors had authorized grants and transactions and events after the statement financials respectively, to the Foundation. program-related investments for future years of financial position date and through – BUILDING LIVABLE COMMUNITIES ‹ 2 › 4. RELATED PARTY TRANSACTIONS as follows: February 19, 2013, which is the date these financial statements were available to be The Foundation is supported by MetLife. issued. There are no transactions or events – EMPOWERING OLDER ADULTS ‹ 3 › MetLife also provides the Foundation with CONDITIONAL GRANTS requiring disclosure. management and administrative services. – PREPARING YOUNG PEOPLE ‹ 4 › However, the Statements of Activities and 2013 $250,000 Changes in Net Assets do not include such costs since they are not significant. 2014 250,000 – EMPLOYEE-RELATED PROGRAMS ‹ 5 › 5. FEDERAL TAXES $500,000 – METLIFE FOUNDATION The Foundation is exempt from Federal AUDITED FINANCIAL STATEMENT ‹ 6 -12 › income taxes; however, as a private PROGRAM-RELATED INVESTMENTS foundation, it is subject to Federal excise taxes on its net taxable investment income 2013 $500,000 and realized capital gains. The rate for current excise taxes was 2% and 1% in 2014 500,000 2012 and 2011, respectively. The rate for $1,000,000 deferred excise taxes was 2% in 2012 and 2011. However, the cost of investments recorded at fair value exceeded the fair value As of December 31, 2012, none of the of such securities by $601,545 at December conditional grants required further 31, 2011. Therefore, no deferred taxes were review and approval by the Foundation recorded at December 31, 2011. There were prior to payment. no uncertain tax positions taken by the Foundation as of December 31, 2012. ‹ 12 ›


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    Metropolitan Life Insurance Company 200 Park Avenue New York, NY 10166 www.metlife.com 1301-0101 © 2013 METLIFE, INC. PEANUTS © 2013 Peanuts Worldwide


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