Fannie Mae 2004 Annual Report Download - page 256

FANNIE MAE
Consolidated Statements of Cash Flows
(Dollars in millions)
2004 2003 2002
For the Year Ended December 31,
(Restated) (Restated)
Cash flows provided by operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,967 $ 8,081 $ 3,914
Reconciliation of net income to net cash provided by operating activities:
Amortization of mortgage loans and security cost basis adjustments . . . . . . . . . . . . . 1,249 1,852 (107)
Amortization of debt deferred price adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . 4,908 4,517 5,661
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 365 284
Valuation losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 433 1,433 261
Debt extinguishment losses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 2,692 814
Debt foreign currency transaction losses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 707 492
Loss from partnership investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 702 637 509
Current and deferred federal income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,435) (1,083) (2,186)
Extraordinary (gains) losses, net of tax effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 (195) —
Cumulative effect of change in accounting principle, net of tax effect. . . . . . . . . . . . — (34) —
Derivatives fair value adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,395) (5,811) (7,973)
Purchases of loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,198) (72,519) (50,708)
Proceeds from repayments of loans held for sale. . . . . . . . . . . . . . . . . . . . . . . . . . 2,493 9,703 4,781
Proceeds from sales of loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 8 44
Net decrease in trading securities, excluding non-cash transfers . . . . . . . . . . . . . . . . 58,396 106,679 86,768
Net change in:
Guaranty assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,033) (5,018) (17)
Guaranty obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,926 7,745 2
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (339) (1,536) 1,092
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,556 58,223 43,631
Cash flows used in investing activities:
Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (234,081) (503,313) (347,101)
Proceeds from maturities of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . 196,606 339,878 279,631
Proceeds from sales of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . 18,503 129,487 40,061
Purchases of loans held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55,996) (92,668) (51,674)
Proceeds from repayments of loans held for investment . . . . . . . . . . . . . . . . . . . . . 100,727 164,822 101,322
Advances to lenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (53,865) (180,338) (141,869)
Net proceeds from disposition of foreclosed properties. . . . . . . . . . . . . . . . . . . . . . 4,284 3,355 2,472
Contributions to partnership investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,934) (1,675) (1,755)
Proceeds from partnership investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 60 44
Net change in federal funds sold and securities purchased under agreements to
resell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,756 (12,355) 5,281
Net cash used in investing activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,792) (152,747) (113,588)
Cash flows (used in) provided by financing activities:
Proceeds from issuance of short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,925,159 1,944,544 1,530,204
Payments to redeem short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,965,693) (1,904,640) (1,522,576)
Proceeds from issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253,880 349,356 240,657
Payments to redeem long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (240,031) (285,872) (178,933)
Repurchase of common and redemption of preferred stock . . . . . . . . . . . . . . . . . . . (523) (1,390) (1,792)
Proceeds from issuance of common and preferred stock . . . . . . . . . . . . . . . . . . . . . 5,162 1,488 1,119
Payment of cash dividends on common and preferred stock . . . . . . . . . . . . . . . . . . (2,185) (1,796) (1,410)
Net change in federal funds purchased and securities sold under agreements to
repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,273) (5,497) 3,369
Net cash (used in) provided by financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . (25,504) 96,193 70,638
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . (740) 1,669 681
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,395 1,726 1,045
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,655 $ 3,395 $ 1,726
Cash paid during the period for:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 29,777 $ 30,322 $ 33,302
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,470 3,516 3,032
Non-cash transfers:
Net transfers between investments in securities to mortgage loans . . . . . . . . . . . . . . $ 17,750 $ 71,560 $ 68,815
Transfers from advances to lenders to investments in securities . . . . . . . . . . . . . . . . 53,705 195,964 130,651
Mortgage loans acquired by assuming debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,372 9,274 1
Transfers of loans held for sale to loans held for investment . . . . . . . . . . . . . . . . . . 15,543 51,855 32,764
Transfers from mortgage loans to acquired property, net. . . . . . . . . . . . . . . . . . . . . 4,307 3,580 2,407
Issuance of common stock from treasury stock for stock option and benefit plans . . . . 306 149 127
See Notes to Consolidated Financial Statements.
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