Fannie Mae 2006 Annual Report Download - page 284

The following table displays our deferred tax assets and deferred tax liabilities as of December 31, 2006 and
2005.
2006 2005
As of December 31,
(Dollars in millions)
Deferred tax assets:
Debt and derivative instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,773 $5,221
Net guaranty assets and obligations and related items . . . . . . . . . . . . . . . . . . . . . . . . . . 1,012 854
Partnership and equity investments and related credits . . . . . . . . . . . . . . . . . . . . . . . . . . 1,006 67
Mortgage and mortgage-related assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 804 201
Allowance for loan losses and basis in acquired property, net . . . . . . . . . . . . . . . . . . . . . 556 623
Employee compensation and benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 178
Cash fees and other upfront payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 252
Other,net......................................................... — 288
Total deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,584 7,684
Deferred tax liabilities:
Other,net......................................................... 79 —
Total deferred tax liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 —
Net deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,505 $7,684
For the periods presented, we determined that, based on available evidence, a valuation allowance against our
deferred tax assets was not necessary. As of December 31, 2006, we had tax credit carryforwards of
$1.1 billion that expire starting in 2025.
We are subject to examination by the Internal Revenue Service (“IRS”). The IRS is currently examining our
2005 tax return. The IRS Appeals Division is currently considering issues related to tax years 1999-2001 and
will soon be considering issues related to tax years 2002-2004. We and the IRS have resolved all issues raised
by the IRS for the years prior to 1999.
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FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)