Fannie Mae 2006 Annual Report Download - page 105

Table 21: Non-GAAP Supplemental Consolidated Fair Value Balance Sheets
(1)
GAAP
Carrying
Value
Fair Value
Adjustment
(2)
Estimated
Fair Value
GAAP
Carrying
Value
Fair Value
Adjustment
(2)
Estimated
Fair Value
As of December 31, 2006 As of December 31, 2005
(Dollars in millions)
Assets:
Cash and cash equivalents . . . . . . . . . . . . . $ 3,972 $ — $ 3,972
(3)
$ 3,575 $ — $ 3,575
(3)
Federal funds sold and securities purchased
under agreements to resell . . . . . . . . . . . 12,681 — 12,681
(3)
8,900 — 8,900
(3)
Trading securities . . . . . . . . . . . . . . . . . . . 11,514 — 11,514
(3)
15,110 — 15,110
(3)
Available-for-sale securities . . . . . . . . . . . . 378,598 — 378,598
(3)
390,964 — 390,964
(3)
Mortgage loans:
Mortgage loans held for sale . . . . . . . . . 4,868 (88) 4,780
(3)(4)
5,064 17 5,081
(3)(4)
Mortgage loans held for investment, net
of allowance for loan losses . . . . . . . . 378,687 (2,821) 375,866
(4)
362,479 (1,463) 361,016
(4)
Guaranty assets of mortgage loans held
in portfolio . . . . . . . . . . . . . . . . . . . . — 3,669 3,669
(4)(5)
— 3,609 3,609
(4)(5)
Guaranty obligations of mortgage loans
held in portfolio . . . . . . . . . . . . . . . . — (2,831) (2,831)
(4)(5)
— (2,477) (2,477)
(4)(5)
Total mortgage loans . . . . . . . . . . . . . 383,555 (2,071) 381,484
(3)(4)
367,543 (314) 367,229
(3)(4)
Advances to lenders
(6)
. . . . . . . . . . . . . . . . 6,163 (152) 6,011
(3)
4,086 — 4,086
(3)
Derivative assets at fair value. . . . . . . . . . . 4,931 — 4,931
(3)
5,803 — 5,803
(3)
Guaranty assets and buy-ups . . . . . . . . . . . 8,523 3,737 12,260
(3)(5)
7,629 3,077 10,706
(3)(5)
Total financial assets . . . . . . . . . . . . . . . 809,937 1,514 811,451
(3)
803,610 2,763 806,373
(3)
Master servicing assets and credit
enhancements . . . . . . . . . . . . . . . . . . . . 1,624 1,063 2,687
(5)(7)
1,471 861 2,332
(5)(7)
Other assets . . . . . . . . . . . . . . . . . . . . . . . 32,375 (948) 31,427
(7)
29,087 (1,722) 27,365
(7)
Total assets . . . . . . . . . . . . . . . . . . . . . $843,936 $ 1,629 $845,565 $834,168 $ 1,902 $836,070
Liabilities:
Federal funds purchased and securities sold
under agreements to repurchase . . . . . . . $ 700 $ — $ 700
(3)
$ 705 $ — $ 705
(3)
Short-term debt . . . . . . . . . . . . . . . . . . . . 165,810 (63) 165,747
(3)
173,186 (209) 172,977
(3)
Long-term debt . . . . . . . . . . . . . . . . . . . . 601,236 5,358 606,594
(3)
590,824 5,978 596,802
(3)
Derivative liabilities at fair value . . . . . . . . 1,184 — 1,184
(3)
1,429 — 1,429
(3)
Guaranty obligations . . . . . . . . . . . . . . . . . 11,145 (2,960) 8,185
(3)
10,016 (4,848) 5,168
(3)
Total financial liabilities . . . . . . . . . . . . 780,075 2,335 782,410
(3)
776,160 921 777,081
(3)
Other liabilities . . . . . . . . . . . . . . . . . . . . 22,219 (2,101) 20,118
(8)
18,585 (1,916) 16,669
(8)
Total liabilities . . . . . . . . . . . . . . . . . . . 802,294 234 802,528 794,745 (995) 793,750
Minority interests in consolidated
subsidiaries . . . . . . . . . . . . . . . . . . . . 136 — 136 121 — 121
Stockholders’ Equity:
Preferred . . . . . . . . . . . . . . . . . . . . . . . . . 9,108 (90) 9,018
(9)
9,108 (330) 8,778
(9)
Common . . . . . . . . . . . . . . . . . . . . . . . . . 32,398 1,485 33,883
(10)
30,194 3,227 33,421
(10)
Total stockholders’ equity/non-GAAP
fair value of net assets ........... $ 41,506 $ 1,395 $ 42,901 $ 39,302 $ 2,897 $ 42,199
Total liabilities and stockholders’
equity/non-GAAP fair value of net
assets . . . . . . . . . . . . . . . . . . . . . . . . $843,936 $ 1,629 $845,565 $834,168 $ 1,902 $836,070
Explanation and Reconciliation of Non-GAAP Measures to GAAP Measures
(1)
Certain prior year amounts have been reclassified to conform with the current year presentation.
(2)
Each of the amounts listed as a “fair value adjustment” represents the difference between the carrying value included
in our GAAP consolidated balance sheets and our best judgment of the estimated fair value of the listed asset or
liability.
(3)
We determined the estimated fair value of these financial instruments in accordance with the fair value guidelines
outlined in SFAS No. 107, Disclosures about Fair Value of Financial Instruments (“SFAS 107”), as described in
“Notes to Consolidated Financial Statements—Note 19, Fair Value of Financial Instruments.” In Note 19, we also
disclose the carrying value and estimated fair value of our total financial assets and total financial liabilities as well
as discuss the methodologies and assumptions we use in estimating the fair value of our financial instruments.
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