Fannie Mae 2010 Annual Report Download - page 354

Supplemental Retirement Savings Plan
The Supplemental Retirement Savings Plan is an unfunded, nonqualified defined contribution plan. This plan
supplements our Retirement Savings Plan to provide benefits to employees who are not grandfathered under
our defined benefit pension plan and whose annual eligible earnings exceed the IRS annual limit on eligible
compensation for 401(k) plans.
We credit to the plan 8% of a participant’s eligible compensation that exceeds the IRS annual limit. Eligible
compensation consists of base salary plus eligible incentive compensation earned, if any, up to a combined
maximum of two times base salary. The 8% credit consists of (1) a 6% credit that vests immediately, and (2) a
2% credit that vests after three years of service.
For the years ended December 31, 2010, 2009 and 2008, we recognized expense related to this plan of less
than $1 million in each year.
Employee Stock Ownership Plan
During 2010, our Employee Stock Ownership Plan (“ESOP”) was terminated and amended to provide that all
distributions are to be made in cash. In addition, all Fannie Mae Common Stock in the ESOP was sold as part
of the plan termination. The assets of the ESOP will be distributed to participants following receipt of an IRS
determination letter regarding the tax qualification status of the ESOP.
15. Segment Reporting
Our three reportable segments are: Single-Family, Multifamily, and Capital Markets. In October 2010, we
began referring to our “HCD” business segment as our “Multifamily” business segment to better reflect the
segment’s focus on multifamily rental housing finance, especially affordable rentals, which is an increasingly
important part of our company’s mission. We use these three segments to generate revenue and manage
business risk, and each segment is based on the type of business activities it performs.
Segment Reporting for 2010
Our prospective adoption of the new accounting standards had a significant impact on the presentation and
comparability of our consolidated financial statements due to the consolidation of the substantial majority of
our single-class securitization trusts and the elimination of previously recorded deferred revenue from our
guaranty arrangements. We continue to manage Fannie Mae based on the same three business segments.
However, effective in 2010, we changed the presentation of segment financial information that is currently
evaluated by management.
Under the current segment reporting, the sum of the results for our three business segments does not equal our
consolidated statements of operations, as we separate the activity related to our consolidated trusts from the
results generated by our three segments. In addition, we include an eliminations/adjustments category to
reconcile our business segment results and the activity related to our consolidated trusts to our consolidated
statements of operations.
While some line items in our segment results were not impacted by either the change from the new accounting
standards or changes to our segment presentation, others were impacted significantly, which reduces the
comparability of our segment results with prior years. We have neither restated prior year results nor presented
current year results under the old presentation as we determined that it was impracticable to do so; therefore,
our segment results reported in the current period are not comparable with prior years.
F-96
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)