Freddie Mac 2009 Annual Report Download - page 188

our purchase agreements for goods or services include clauses that would allow us to cancel the agreement prior to the
expiration of the contract within a specified notice period; however, this table includes these obligations without regard to
such termination clauses (unless we have provided the counterparty with actual notice of our intention to terminate the
agreement).
In Table 80, the amounts of future interest payments on debt securities outstanding at December 31, 2009 are based on
the contractual terms of our debt securities at that date. These amounts were determined using the key assumptions that:
(a) variable-rate debt continues to accrue interest at the contractual rates in effect at December 31, 2009 until maturity; and
(b) callable debt continues to accrue interest until its contractual maturity. The amounts of future interest payments on debt
securities presented do not reflect certain factors that will change the amounts of interest payments on our debt securities
after December 31, 2009, such as: (a) changes in interest rates; (b) the call or retirement of any debt securities; and (c) the
issuance of new debt securities. Accordingly, the amounts presented in the table do not represent a forecast of our future
cash interest payments or interest expense.
Table 80 excludes the following items:
• any future cash payments associated with the liquidation preference of the senior preferred stock, as well as the
quarterly commitment fee and the dividends on the senior preferred stock because the timing and amount of any such
future cash payments are uncertain. Beginning on March 31, 2011, we are required to pay a quarterly commitment fee
to Treasury, which will accrue beginning on January 1, 2011. We are required to pay this fee, unless waived by
Treasury, each quarter for as long as the Purchase Agreement is in effect. The amount of this fee must be determined
on or before December 31, 2010. See “BUSINESS — Conservatorship and Related Developments” for additional
information regarding the Purchase Agreement;
• future payments related to our guarantee obligation, because the amount and timing of such payments are generally
contingent upon the occurrence of future events and are therefore uncertain;
• future contributions to our Pension Plan, as we have not yet determined whether a contribution is required for 2010.
See “NOTE 16: EMPLOYEE BENEFITS” to our consolidated financial statements for additional information about
contributions to our Pension Plan;
• future cash settlements on derivative agreements not yet accrued, because the amount and timing of such payments
are dependent upon changes in the underlying financial instruments in response to items such as changes in interest
rates and foreign exchange rates and are therefore uncertain;
• future dividends on the preferred stock we issued, because dividends on these securities are non-cumulative. The
classes of preferred stock issued by our two consolidated REIT subsidiaries pay dividends that are cumulative.
However, dividends on the REIT preferred stock are excluded because the timing of these payments is dependent
upon approval by Treasury and FHFA and declaration by the boards of directors of the REITs; and
• the guarantee arrangements pertaining to multifamily housing revenue bonds, where we provided commitments to
advance funds, commonly referred to as “liquidity guarantees,” because the amount and timing of such payments are
generally contingent upon the occurrence of future events and are therefore uncertain.
185 Freddie Mac