Freddie Mac 2009 Annual Report Download - page 299

Net
Interest
Income
Management
and
Guarantee
Income
LIHTC
Partnerships
Other
Non-Interest
Income
(Loss)
Administrative
Expenses
Provision
for
Credit Losses
REO
Operations
Expense
Other
Non-Interest
Expense
LIHTC
Partnerships
Tax Credit
Income
Tax
(Expense)
Benefit
Net
Income
(Loss)
Less: Net
(Income)
Loss —
Noncontrolling
Interests
Net
Income
(Loss) —
Freddie
Mac
Non-Interest Income (Loss) Non-Interest Expense Income Tax Provision
Year Ended December 31, 2007
(in millions)
Investments ............................. $3,300 $ — $ — $ 40 $ (515) $ — $ — $ (31) $ — $ (978) $ 1,816 $— $ 1,816
Single-family Guarantee ..................... 703 2,889 — 117 (806) (3,014) (205) (78) — 138 (256) — (256)
Multifamily ............................. 752 59 (469) 24 (189) (38) (1) (25) 534 (40) 607 3 610
All Other .............................. (1) — — 11 (164) — — (12) — 58 (108) 5 (103)
Total Segment Earnings (loss), net of taxes ........ 4,754 2,948 (469) 192 (1,674) (3,052) (206) (146) 534 (822) 2,059 8 2,067
Reconciliation to GAAP net income (loss):
Derivative- and debt-related adjustments ......... (1,066) — — (4,601) — — — — — — (5,667) — (5,667)
Credit guarantee-related adjustments ............ 36 (342) — 915 — 56 — (3,933) — — (3,268) — (3,268) Investment sales, debt retirements and fair value-
related adjustments ..................... 266 — — 721 — — — — — — 987 — 987
Fully taxable-equivalent adjustments ............ (388) — — — — — — — — — (388) — (388)
Reclassifications
(1)
....................... (503) 29 — 332 — 142 — — — — — — —
Tax-related adjustments .................... — — — — — — — — — 3,175 3,175 — 3,175
Total reconciling items, net of taxes ........... (1,655) (313) — (2,633) — 198 — (3,933) — 3,175 (5,161) — (5,161)
Total per consolidated statement of operations ....... $3,099 $2,635 $(469) $(2,441) $(1,674) $(2,854) $(206) $(4,079) $534 $2,353 $(3,102) $ 8 $(3,094)
(1) Includes the reclassification of: (a) the accrual of periodic cash settlements of all derivatives not in qualifying hedge accounting relationships from other non-interest income (loss) to net interest
income within the Investments segment; (b) implied management and guarantee fees from net interest income to other non-interest income (loss) within our Single-family Guarantee and Multifamily segments; (c) net buy-up and buy-down fees from management and guarantee income to net interest income within the Investments segment; (d) interest income foregone on impaired loans from net interest income to provision for credit losses within our Single-family Guarantee segment; and (e) certain hedged interest benefit (cost) amounts related to trust management income from other non- interest income (loss) to net interest income within our Investments segment.
(2) 2009 and 2008 include a non-cash charge related to the establishment of a partial valuation allowance against our deferred tax assets, net of approximately $7.9 billion and $22 billion that is not
included in Segment Earnings, respectively.
296 Freddie Mac