Fannie Mae 2004 Annual Report Download - page 335

Single-Family
Credit Guaranty HCD
Capital
Markets Total
For the Year Ended December 31, 2003
(Restated)
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . $ 495 $ (99) $ 19,081 $19,477
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . 4,222 303 (1,244) 3,281
Investment gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . 76 — (1,307) (1,231)
Derivatives fair value losses, net . . . . . . . . . . . . . . . . . . . . . — — (6,289) (6,289)
Debt extinguishment losses, net . . . . . . . . . . . . . . . . . . . . . . — — (2,692) (2,692)
Losses from partnership investments . . . . . . . . . . . . . . . . . . — (637) — (637)
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . 277 209 (146) 340
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . 4,575 (125) (11,678) (7,228)
Provision for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . 331 34 — 365
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 925 238 435 1,598
Income (loss) before federal income taxes, extraordinary
gains (losses) and cumulative effect of change in
accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . 3,814 (496) 6,968 10,286
Provision (benefit) for federal income taxes . . . . . . . . . . . . . 1,333 (782) 1,883 2,434
Income before extraordinary gains (losses) and cumulative
effect of change in accounting principle . . . . . . . . . . . . 2,481 286 5,085 7,852
Extraordinary gain, net of tax effect. . . . . . . . . . . . . . . . . . . — — 195 195
Cumulative effect of change in accounting principle, net of
tax effect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 34 34
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,481 $ 286 $ 5,314 $ 8,081
(1)
Includes cost of capital charge.
(2)
Includes intercompany guaranty fee revenue (expense) of $1.0 billion allocated to Single-Family Credit Guaranty and
HCD from Capital Markets for absorbing the credit risk on mortgage loans and Fannie Mae MBS held in our portfolio.
F-84
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)