Freddie Mac 2009 Annual Report Download - page 213

FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
Shares Amount Shares Amount Shares Amount
2009 2008 2007
Year Ended December 31,
(in millions)
Senior preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 $ 14,800 — $ — — $ —
Senior preferred stock issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1 1,000 — —
Increase in liquidation preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 36,900 — 13,800 — —
Senior preferred stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 51,700 1 14,800 — —
Preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 14,109 464 14,109 132 6,109
Preferred stock issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 344 8,600
Preferred stock redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (12) (600)
Preferred stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 14,109 464 14,109 464 14,109
Common stock, par value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726 — 726 152 726 152
Adjustment to par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (152) — —
Common stock, end of year .............................................. 726 — 726 — 726 152
Additional paid-in capital
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 871 962
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 74 81
Income tax benefit from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 (16) —
Preferred stock issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (116)
Common stock issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (90) (66) (42)
REIT preferred stock repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 4 (14)
Adjustment to common stock par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 152 —
Common stock warrant issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2,304 —
Commitment from the U.S. Department of the Treasury . . . . . . . . . . . . . . . . . . . . . . . . . . — (3,304) —
Transfer from retained earnings (accumulated deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 — —
Additional paid-in capital, end of year ...................................... 57 19 871
Retained earnings (accumulated deficit)
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,191) 26,909 31,372
Cumulative effect of change in accounting principle, net of taxes . . . . . . . . . . . . . . . . . . . . — 1,023 181
Balance, beginning of year, as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,191) 27,932 31,553
Cumulative effect of change in accounting principle, net of taxes . . . . . . . . . . . . . . . . . . . . 14,996 — —
Net loss attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,553) (50,119) (3,094)
Senior preferred stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,105) (172) —
Preferred stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (503) (398)
Common stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (323) (1,140)
Dividends equivalent payments on expired stock options . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (6) (12)
Transfer to additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (63) — —
Retained earnings (accumulated deficit), end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,921) (23,191) 26,909
AOCI, net of taxes
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,357) (11,143) (8,451)
Cumulative effect of change in accounting principle, net of taxes . . . . . . . . . . . . . . . . . . . . — (850) —
Balance, beginning of year, as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32,357) (11,993) (8,451)
Cumulative effect of change in accounting principle, net of taxes . . . . . . . . . . . . . . . . . . . . (9,931) — —
Changes in unrealized gains (losses) related to available-for-sale securities, net of
reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,825 (20,616) (3,708)
Changes in unrealized gains (losses) related to cash flow hedge relationships, net of
reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773 377 973
Changes in defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 (125) 43
AOCI, net of taxes, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,648) (32,357) (11,143)
Treasury stock, at cost
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 (4,111) 80 (4,174) 65 (3,230)
Common stock issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) 92 (1) 63 (1) 56
Common stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 16 (1,000)
Treasury stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 (4,019) 79 (4,111) 80 (4,174)
Noncontrolling interest
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 181 516
Net income (loss) attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . (1) 3 (8)
REIT preferred stock repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (82) (302)
Dividends and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (5) (25)
Noncontrolling interest, end of year ........................................ 94 97 181
Total equity (deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,372 $(30,634) $ 26,905
Comprehensive income (loss)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(21,554) $(50,116) $ (3,102)
Changes in other comprehensive income, net of taxes, net of reclassification adjustments . . . . . 18,640 (20,364) (2,692)
Comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,914) (70,480) (5,794)
Less: Comprehensive (income) loss attributable to noncontrolling interest . . . . . . . . . . . . . . . 1 (3) 8
Total comprehensive income (loss) attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . $ (2,913) $(70,483) $ (5,786)
The accompanying notes are an integral part of these financial statements.
210 Freddie Mac