Freddie Mac 2009 Annual Report Download - page 214

FREDDIE MAC
CONSOLIDATED STATEMENTS OF CASH FLOWS
2009 2008 2007
Year Ended December 31,
(in millions)
Cash flows from operating activities
Net loss ......................................................................... $ (21,554) $ (50,116) $ (3,102)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Derivative (gains) losses . ............................................................ (2,046) 13,650 2,231
Asset related amortization — premiums, discounts and basis adjustments ............................... 163 (493) (10)
Debt related amortization — premiums and discounts on certain debt securities and basis adjustments ............. 3,959 8,765 10,894
Net discounts paid on retirements of debt ................................................... (4,303) (8,844) (8,405)
Losses (gains) on debt retirement ........................................................ 568 (209) (345)
Provision for credit losses ............................................................ 29,530 16,432 2,854
Low-income housing tax credit partnerships ................................................. 4,155 453 469
Losses on loans purchased ............................................................ 4,754 1,634 1,865
Losses (gains) on investment activity . . ................................................... 5,356 16,108 (294)
Foreign-currency losses, net ........................................................... — — 2,348
Losses (gains) on debt recorded at fair value ................................................. 404 (406) —
Deferred income tax (benefit) expense . ................................................... (670) 5,507 (3,943)
Purchases of held-for-sale mortgages . . ................................................... (101,976) (38,070) (21,678)
Sales of held-for-sale mortgages ........................................................ 88,094 24,578 19,525
Repayments of held-for-sale mortgages . ................................................... 3,050 896 138
Change in:
Due to Participation Certificates and Structured Securities Trust . .................................. 250 (623) 946
Trading securities ................................................................ — — (1,922)
Accounts and other receivables, net . . ................................................... (1,343) (1,668) (909)
Amounts due to Participation Certificate investors, net ......................................... — — (10,744)
Accrued interest payable ........................................................... (1,324) (786) (263)
Income taxes payable . ............................................................ 312 (1,185) 130
Guarantee asset, at fair value ......................................................... (5,597) 4,744 (2,203)
Guarantee obligation . . ............................................................ (183) (1,470) 4,245
Other, net . . .................................................................... (311) 944 503
Net cash provided by (used for) operating activities ............................................ 1,288 (10,159) (7,670)
Cash flows from investing activities
Purchases of trading securities ......................................................... (250,411) (200,613) —
Proceeds from sales of trading securities ................................................... 153,093 94,764 —
Proceeds from maturities of trading securities ................................................ 69,025 18,382 —
Purchases of available-for-sale securities ................................................... (15,346) (174,968) (319,213)
Proceeds from sales of available-for-sale securities . . . .......................................... 22,259 35,872 109,973
Proceeds from maturities of available-for-sale securities .......................................... 86,702 193,573 219,047
Purchases of held-for-investment mortgages ................................................. (23,606) (25,099) (25,059)
Repayments of held-for-investment mortgages ................................................ 6,862 6,516 9,571
Decrease (increase) in restricted cash . . ................................................... 426 (857) (96)
Net (payments) proceeds from mortgage insurance and acquisitions and dispositions of real estate owned ........... (4,690) (2,573) 1,798
Net decrease (increase) in federal funds sold and securities purchased under agreements to resell ................ 3,150 (3,588) 16,466
Derivative premiums and terminations and swap collateral, net . . . .................................. 99 (12,829) (2,484)
Investments in low-income housing tax credit partnerships ........................................ — — (158)
Net cash provided by (used for) investing activities ............................................. 47,563 (71,420) 9,845
Cash flows from financing activities
Proceeds from issuance of short-term debt .................................................. 996,886 1,194,456 1,016,933
Repayments of short-term debt ......................................................... (1,088,026) (1,061,595) (986,489)
Proceeds from issuance of long-term debt .................................................. 336,973 241,222 183,161
Repayments of long-term debt ......................................................... (307,780) (267,732) (222,541)
Increase in liquidation preference of senior preferred stock ........................................ 36,900 13,800 —
Proceeds from issuance of preferred stock .................................................. — — 8,484
Redemption of preferred stock ......................................................... — — (600)
Repurchases of common stock ......................................................... — — (1,000)
Payment of cash dividends on senior preferred stock, preferred stock and common stock ..................... (4,105) (998) (1,539)
Excess tax benefits associated with stock-based awards .......................................... 1 3 5
Payments of low-income housing tax credit partnerships notes payable ................................. (343) (742) (1,068)
Other, net . . .................................................................... — (83) (306)
Net cash (used for) provided by financing activities ............................................ (29,494) 118,331 (4,960)
Net increase (decrease) in cash and cash equivalents . . .......................................... 19,357 36,752 (2,785)
Cash and cash equivalents at beginning of period .............................................. 45,326 8,574 11,359
Cash and cash equivalents at end of period ................................................. $ 64,683 $ 45,326 $ 8,574
Supplemental cash flow information
Cash paid (received) for:
Debt interest . . .................................................................... $ 25,169 $ 35,664 $ 37,473
Swap collateral interest . . . ............................................................ 6 149 445
Derivative interest carry, net ............................................................ 2,268 804 (1,070)
Income taxes . . .................................................................... (472) 1,230 927
Non-cash investing and financing activities:
Held-for-sale mortgages securitized and retained as available-for-sale securities ............................. 1,088 — 169
Investments in low-income housing tax credit partnerships financed by notes payable ......................... — — 286
Transfers from held-for-sale mortgages to held-for-investment mortgages ................................. 10,336 — 41
Transfers from held-for-investment mortgages to held-for-sale mortgages ................................. 435 — —
Transfers from Participation Certificates recognized on our consolidated balance sheets to held-for-investment mortgages . . . — — 2,229
Transfers from available-for-sale securities to trading securities ....................................... — 87,281 —
Issuance of senior preferred stock and warrant to purchase common stock to U.S. Department of the Treasury . . . ....... — 3,304 —
The accompanying notes are an integral part of these financial statements.
211 Freddie Mac