Fannie Mae 2004 Annual Report Download - page 176

• the pledging of collateral under derivative instruments;
• administrative expenses;
• the payment of federal income taxes;
• losses incurred in connection with our Fannie Mae MBS guaranty obligations; and
• the payment of dividends on our common and preferred stock.
Debt Funding
Because our primary source of cash is proceeds from the issuance of our debt, we depend on our continuing
ability to issue debt securities in the capital markets to meet our cash requirements. We issue a variety of non-
callable and callable debt securities in the domestic and international capital markets in a wide range of
maturities to meet our large and continuous funding needs. Our Capital Markets group is responsible for the
issuance of debt securities to meet our funding needs. Table 39 below provides a summary of our debt activity
for the years ended December 31, 2004, 2003 and 2002. Table 40 below shows our outstanding short-term
borrowings for the years ended December 31, 2004, 2003 and 2002.
Table 39: Debt Activity
2004 2003 2002
(Restated) (Restated)
For the Year Ended December 31,
(Dollars in millions)
Issued during the year:
(1)
Short-term:
(2)
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,055,759 $2,234,000 $1,631,471
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 1.50% 1.07% 1.65%
Long-term:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 252,658 $ 348,112 $ 238,808
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 2.90% 2.58% 3.89%
Total issued:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,308,417 $2,582,112 $1,870,279
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 1.66% 1.28% 1.93%
Redeemed during the year:
(1)(4)
Short-term:
(2)
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,081,726 $2,191,992 $1,615,947
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 1.34% 1.12% 1.82%
Long-term:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 238,686 $ 279,168 $ 176,450
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.26% 3.66% 5.03%
Total redeemed:
Amount:
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,320,412 $2,471,160 $1,792,397
Weighted average interest rate:. . . . . . . . . . . . . . . . . . . . . . . . . . . 1.54% 1.41% 2.13%
(1)
Excludes the activity of debt from consolidations.
(2)
Includes the activity of Federal funds purchased and securities sold under agreements to repurchase.
(3)
Represents the face amount at issuance or redemption and does not include the effect of currency adjustments, debt
basis adjustments or amortization of discounts, premiums and other deferred price adjustments.
(4)
Represents all payments on debt, including regularly scheduled principal payments, payments at maturity, payments as
the result of a call and payments for any other repurchases.
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