Note 2 – Earnings Per Share The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):
## Table 0 ##
We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented.
Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs), performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method.
There were no significant anti-dilutive equity awards for the years ended December 31, 2018, 2017 and 2016.
Note 3 – Acquisition and Divestitures Consolidation of AWE Management Limited On August 24, 2016, we increased our ownership interest in the AWE joint venture, which operates the United Kingdom’s nuclear deterrent program, from 33% to 51%.
Consequently, we began consolidating AWE and our operating results include 100% of AWE’s sales and 51% of its operating profit.
Prior to increasing our ownership interest, we accounted for our investment in AWE using the equity method of accounting.
Under the equity method, we recognized only 33% of AWE’s earnings or losses and no sales.
Accordingly, prior to August 24, 2016, the date we obtained control, we recorded 33% of AWE’s net earnings in our operating results and subsequent to August 24, 2016, we recognized 100% of AWE’s sales and 51% of its operating profit.
We accounted for this transaction as a “step acquisition” (as defined by U. S.  GAAP), which requires us to consolidate and record the assets and liabilities of AWE at fair value.
Accordingly, we recorded intangible assets of $243 million related to customer relationships, $32 million of net liabilities, and noncontrolling interests of $107 million.
The intangible assets are being amortized over a period of eight years in accordance with the underlying pattern of economic benefit reflected by the future net cash flows.
In 2016, we recognized a non-cash net gain of $104 million associated with obtaining a controlling interest in AWE, which consisted of a $127 million pretax gain recognized in the operating results of our Space business segment and $23 million of tax-related items at our corporate office.
The gain represented the fair value of our 51% interest in AWE, less the carrying value of our previously held investment in AWE and deferred taxes.
The gain was recorded in other income, net on our consolidated statements of earnings.
The fair value of AWE (including the intangible assets), our controlling interest, and the noncontrolling interests were determined using the income approach.
Divestiture of the Information Systems & Global Solutions Business On August 16, 2016, we divested our former IS&GS business, which merged with Leidos, in a Reverse Morris Trust transaction (the “Transaction”).
The Transaction was completed in a multi-step process pursuant to which we initially contributed the IS&GS business to Abacus Innovations Corporation (Abacus), a wholly owned subsidiary of Lockheed Martin created to facilitate the Transaction, and the common stock of Abacus was distributed to participating Lockheed Martin stockholders through an exchange offer.
Under the terms of the exchange offer, Lockheed Martin stockholders had the option to exchange shares of Lockheed Martin common stock for shares of Abacus common stock.
At the conclusion of the exchange offer, all shares of Abacus common stock were exchanged for 9,369,694 shares of Lockheed Martin common stock held by Lockheed Martin stockholders that elected to participate in the exchange.
The shares of Lockheed Martin common stock that were exchanged and accepted were retired, reducing the number of shares of our common stock outstanding by approximately 3%.
Following the exchange offer, Abacus merged with a subsidiary of Leidos, with Abacus continuing as the surviving corporation and a wholly-owned subsidiary of Leidos.
As part of the merger, each share of Abacus common stock was automatically converted into one share of Leidos common stock.
We did not receive any shares of Leidos common stock as part of the Transaction and do not hold any shares of Leidos or Abacus common stock following the Transaction.
Based on an opinion of outside tax counsel, subject to customary qualifications and based on factual representations, the exchange offer and merger will qualify as tax-free transactions to Lockheed Martin and its stockholders, except to the extent that cash was paid to Lockheed Martin stockholders in lieu of fractional shares.
In connection with the Transaction, Abacus borrowed an aggregate principal amount of approximately $1.84 billion under term loan facilities with third party financial institutions, the proceeds of which were used to make a one-time special cash payment of $1.80 billion to Lockheed Martin and to pay associated borrowing fees and expenses.
The entire special cash payment was used to repay debt, pay dividends and repurchase stock during the third and fourth quarters of 2016.
The obligations under the Abacus term loan facilities were guaranteed by Leidos as part of the Transaction.
In response to the economic crisis and unusual financial market events that occurred in 2008 and continued into 2009, we decided to utilize excess debt capacity.
The Holding Company completed three debt issuances in 2009.
The Holding Company issued $397 million of floating rate senior notes in March 2009, $1.3 billion of senior notes in May 2009, and $500 million of junior subordinated debt securities in July 2009.
In February 2009, in connection with the initial settlement of the stock purchase contracts issued as part of the common equity units sold in June 2005, the Holding Company issued common stock for $1.0 billion.
The proceeds from these equity and debt issuances were used for general corporate purposes and have resulted in increased investments and cash and cash equivalents held within Banking, Corporate & Other.
Operating earnings available to common shareholders improved by $114 million, of which $254 million was due to MetLife Bank and its acquisitions of a residential mortgage origination and servicing business and a reverse mortgage business, both during 2008.
Excluding the impact of MetLife Bank, our operating earnings available to common shareholders decreased $140 million, primarily due to lower net investment income, partially offset by the impact of a lower effective tax rate.
The lower effective tax rate provided an increased benefit of $139 million from the prior year.
This benefit was the result of a partial settlement of certain prior year tax audit issues and increased utilization of tax preferenced investments, which provide tax credits and deductions.
Excluding a $68 million increase from MetLife Bank, net investment income decreased $283 million, which was primarily due a decrease of $287 million due to lower yields, partially offset by an increase of $4 million due to an increase in average invested assets.
Consistent with the consolidated results of operations discussion above, yields were adversely impacted by the severe downturn in the global financial markets, which primarily impacted fixed maturity securities and real estate joint ventures.
The increased average invested asset base was due to cash flows from debt issuances during 2009.
Our investments primarily include structured finance securities, investment grade corporate fixed maturity securities, U. S.  Treasury, agency and government guaranteed fixed maturity securities and mortgage loans.
In addition, our investment portfolio includes the excess capital not allocated to the segments.
Accordingly, it includes a higher allocation to certain other invested asset classes to provide additional diversification and opportunity for long-term yield enhancement including leveraged leases, other limited partnership interests, real estate, real estate joint ventures and equity securities.
After excluding the impact of a $394 million increase from MetLife Bank, other expenses increased by $20 million.
Deferred compensation costs, which are tied to equity market performance, were higher due to a significant market rebound.
We also had an increase in costs associated with the implementation of our Operational Excellence initiative.
These increases were partially offset by lower postemployment related costs and corporate-related expenses, specifically legal costs.
Legal costs were lower largely due to the prior year commutation of asbestos policies.
In addition, interest expense declined slightly as a result of rate reductions on variable rate collateral financing arrangements offset by debt issuances in 2009 and 2008.
Consolidated Results of Operations Year Ended December 31, 2008 compared with the Year Ended December 31, 2007
## Table 1 ##
policy issuance expenses and certain advertising costs.
VOBA represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date.
For certain acquired blocks of business, the estimated fair value of the in-force contract obligations exceeded the book value of assumed in-force insurance policy liabilities, resulting in negative VOBA, which is presented separately from VOBA as an additional insurance liability included in other policy-related balances.
The estimated fair value of the acquired liabilities is based on actuarially determined projections, by each block of business, of future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors.
Actual experience on the purchased business may vary from these projections.
The recovery of DAC and VOBA is dependent upon the future profitability of the related business.
The Company will adopt new guidance regarding the accounting for DAC beginning in the first quarter of 2012 and will apply it retrospectively to all prior periods presented in its consolidated financial statements for all insurance contracts.
See Note 1 of the Notes to the Consolidated Financial Statements.
Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period which can result in significant fluctuations in amortization of DAC and VOBA.
The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected.
The Company monitors these events and only changes the assumption when its long-term expectation changes.
The effect of an increase/(decrease) by 100 basis points in the assumed future rate of return is reasonably likely to result in a decrease/(increase) in the DAC and VOBA amortization of approximately $161 million with an offset to the Company’s unearned revenue liability of approximately $26 million for this factor.
The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits.
These include investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, and expenses to administer business.
Assumptions used in the calculation of estimated gross margins and profits which may have significantly changed are updated annually.
If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings.
The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease.
The Company’s most significant assumption updates resulting in a change to expected future gross margins and profits and the amortization of DAC and VOBA are due to revisions to expected future investment returns, expenses, in-force or persistency assumptions and policyholder dividends on participating traditional life contracts, variable and universal life contracts and annuity contracts.
The Company expects these assumptions to be the ones most reasonably likely to cause significant changes in the future.
Changes in these assumptions can be offsetting and the Company is unable to predict their movement or offsetting impact over time.
At December 31, 2011, 2010 and 2009, DAC and VOBA for the Company was $28.0 billion, $27.1 billion and $19.1 billion, respectively.
Amortization of DAC and VOBA associated with the variable and universal life and the annuity contracts was significantly impacted by movements in equity markets.
The following chart illustrates the effect on DAC and VOBA of changing each of the respective assumptions, as well as updating estimated gross margins or profits with actual gross margins or profits during the years ended December 31, 2011, 2010 and 2009.
Increases (decreases) in DAC and VOBA balances, as presented below, resulted in a corresponding decrease (increase) in amortization.
## Table 2 ##
The following represents significant items contributing to the changes to DAC and VOBA amortization in 2011: ‰ The decrease in equity markets during the year lowered separate account balances which led to a reduction in actual and expected future gross profits on variable universal life contracts and variable deferred annuity contracts resulting in an increase of $145 million in DAC and VOBA amortization.
‰ Changes in net investment gains (losses) resulted in the following changes in DAC and VOBA amortization: – Actual gross profits decreased as a result of an increase in liabilities associated with guarantee obligations on variable annuities, resulting in a decrease of DAC and VOBA amortization of $531 million, excluding the impact from the Company’s nonperformance risk and risk margins, which are described below.
This decrease in actual gross profits was more than offset by freestanding derivative gains associated with the hedging of such guarantee obligations, which resulted in an increase in DAC and VOBA amortization of $847 million.
– The widening of the Company’s nonperformance risk adjustment decreased the valuation of guarantee liabilities, increased actual gross profits and increased DAC and VOBA amortization by $260 million.
This was partially offset by higher risk margins which increased the guarantee liability valuations, decreased actual gross profits and decreased DAC and VOBA amortization by $72 million.
– The remainder of the impact of net investment gains (losses), which increased DAC amortization by $72 million, was primarily attributable to current period investment activities.
The following represents significant items contributing to the changes to DAC and VOBA amortization in 2010: ‰ Changes in net investment gains (losses) resulted in the following changes in DAC and VOBA amortization: – Actual gross profits increased as a result of a decrease in liabilities associated with guarantee obligations on variable annuities, resulting in an increase of DAC and VOBA amortization of $197 million, excluding the impact from the Company’s nonperformance risk and risk margins, which are described below.
This increase in actual gross profits was partially offset by freestanding derivative losses associated with the hedging of such guarantee obligations, which resulted in a decrease in DAC and VOBA amortization of $88 million.
MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2012 is currently anticipated to be 7.00% for U. S.  pension benefits and 6.22% for U. S.  other postretirement benefits.
The weighted average expected rate of return on plan assets for use in that plan’s valuation in 2012 is currently anticipated to be 2.05% for non-U.
S.  pension benefits and 6.54% for non-U.
S.  other postretirement benefits.
The assumed healthcare costs trend rates used in measuring the APBO and net periodic benefit costs were as follows:
## Table 3 ##
Assumed healthcare costs trend rates may have a significant effect on the amounts reported for healthcare plans.
A 1% change in assumed healthcare costs trend rates would have the following effects:

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2018	2017	2016
Weighted average common shares outstanding for basic computations	284.5	287.8	299.3
Weighted average dilutive effect of equity awards	2.3	2.8	3.8
Weighted average common shares outstanding for diluted computations	286.8	290.6	303.1

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Years Ended December 31,
2008	2007	Change	% Change
(In millions)
Revenues
Premiums	$25,914	$22,970	$2,944	12.8%
Universal life and investment-type product policy fees	5,381	5,238	143	2.7%
Net investment income	16,291	18,057	-1,766	-9.8%
Other revenues	1,586	1,465	121	8.3%
Net investment gains (losses)	1,812	-578	2,390	413.5%
Total revenues	50,984	47,152	3,832	8.1%
Expenses
Policyholder benefits and claims and policyholder dividends	29,188	25,506	3,682	14.4%
Interest credited to policyholder account balances	4,788	5,461	-673	-12.3%
Interest credited to bank deposits	166	200	-34	-17.0%
Capitalization of DAC	-3,092	-3,064	-28	-0.9%
Amortization of DAC and VOBA	3,489	2,250	1,239	55.1%
Interest expense	1,051	897	154	17.2%
Other expenses	10,333	10,122	211	2.1%
Total expenses	45,923	41,372	4,551	11.0%
Income before provision for income tax	5,061	5,780	-719	-12.4%
Provision for income tax expense (benefit)	1,580	1,675	-95	-5.7%
Income (loss) from continuing operations, net of income tax	3,481	4,105	-624	-15.2%
Income (loss) from discontinued operations, net of income tax	-203	360	-563	-156.4%
Net income (loss)	3,278	4,465	-1,187	-26.6%
Less: Net income (loss) attributable to noncontrolling interests	69	148	-79	-53.4%
Net income (loss) attributable to MetLife, Inc.	3,209	4,317	-1,108	-25.7%
Less: Preferred stock dividends	125	137	-12	-8.8%
Net income (loss) available to MetLife, Inc.’s common shareholders	$3,084	$4,180	$-1,096	-26.2%

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Years Ended December 31,
2011	2010	2009
(In millions)
Investment return	$-64	$-84	$22
Separate account balances	-145	23	-85
Net investment gain (loss)	-576	-124	712
Guaranteed Minimum Income Benefits	-15	84	187
Expense	-7	96	61
In-force/Persistency	-2	9	-118
Policyholder dividends and other	60	-203	154
Total	$-749	$-199	$933

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December 31,
2011	2010
Pre-and Post-Medicare eligible claims	7.3% in 2012, gradually decreasing each year until 2083 reaching the ultimate rate of 4.3%.	7.8% in 2011, gradually decreasing each year until 2083 reaching the ultimate rate of 4.4%.

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Question: In what year is Net investment gains (losses) positive?
Answer: 2008