MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Primary Risks Managed by Derivatives and Non-Derivative Hedging Instruments Net Derivative Gains (Losses) Primary Underlying Risk Exposure December 31, 2012 2011 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps ............... Interest rate ................... $ 5,397 $ 1,921 $ 90 $ 4,580 $ 1,884 $ 92 Foreign currency swaps ........... Foreign currency exchange rate . . . 3,187 332 85 3,220 500 98 Foreign currency forwards ......... Foreign currency exchange rate . . . — — — 1,830 2 10 Subtotal .................................................... 8,584 2,253 175 9,630 2,386 200 Cash flow hedges: Interest rate swaps ............... Interest rate ................... 3,642 705 — 3,230 947 — Interest rate forwards ............. Interest rate ................... 675 139 — 965 210 — Foreign currency swaps ........... Foreign currency exchange rate . . . 9,038 219 355 6,370 352 306 Credit forwards .................. Credit ....................... — — — 20 4 — Subtotal .................................................... 13,355 1,063 355 10,585 1,513 306 Foreign operations hedges: Foreign currency forwards ......... Foreign currency exchange rate . . . 2,552 43 61 1,689 53 12 Currency options ................ Foreign currency exchange rate . . . 4,375 43 3 — — — Subtotal .................................................... 6,927 86 64 1,689 53 12 Total qualifying hedges ....................................... 28,866 3,402 594 21,904 3,952 518 Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps ................. Interest rate ................... 83,250 5,201 2,043 71,923 5,410 2,107 Interest rate floors .................. Interest rate ................... 56,246 1,174 837 23,866 1,246 165 Interest rate caps .................. Interest rate ................... 49,465 74 — 49,665 102 — Interest rate futures ................. Interest rate ................... 11,684 1 38 14,965 25 19 Interest rate options ................ Interest rate ................... 16,328 640 60 16,988 896 6 Interest rate forwards ............... Interest rate ................... — — — 13,068 76 91 Synthetic GICs .................... Interest rate ................... 4,162 — — 4,454 — — Foreign currency swaps ............. Foreign currency exchange rate . . . 8,208 199 736 6,871 320 656 Foreign currency forwards ........... Foreign currency exchange rate . . . 9,202 26 288 6,630 145 38 Currency futures ................... Foreign currency exchange rate . . . 1,408 4 — 633 — — Currency options .................. Foreign currency exchange rate . . . 129 1 — 1,321 6 — Credit default swaps ............... Credit ....................... 12,553 90 39 13,136 326 113 Equity futures ..................... Equity market ................. 7,008 14 132 7,053 26 10 Equity options ..................... Equity market ................. 22,920 2,825 356 17,099 3,263 179 Variance swaps ................... Equity market ................. 19,830 122 310 18,801 397 75 Total rate of return swaps ............ Equity market ................. 3,092 4 103 1,644 10 34 Total non-designated or non-qualifying derivatives ...................... 305,485 10,375 4,942 268,117 12,248 3,493 Total ....................................................... $334,351 $13,777 $5,536 $290,021 $16,200 $4,011 Years Ended December 31, 2012 2011 2010 (In millions) Derivatives and hedging gains (losses) (1) .............................................................. $(3,158) $ 6,108 $ 122 Embedded derivatives .............................................................................. 1,239 (1,284) (387) Total net derivative gains (losses) ................................................................... $(1,919) $ 4,824 $(265) (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. The components of net derivative gains (losses) were as follows: The estimated fair value of all derivatives in an asset position is reported within other invested assets in the consolidated balance sheets and the estimated fair value of all derivatives in a liability position is reported within other liabilities in the consolidated balance sheets. 133 MetLife, Inc. The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: