Freddie Mac 2010 Annual Report Download - page 179

FREDDIE MAC
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT)
Shares Amount Shares Amount Shares Amount
2010 2009 2008
Year Ended December 31,
(in millions)
Senior preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 $ 51,700 1 $ 14,800 — $ —
Senior preferred stock issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 1 1,000
Increase in liquidation preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 12,500 — 36,900 — 13,800
Senior preferred stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 64,200 1 51,700 1 14,800
Preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 14,109 464 14,109 464 14,109
Preferred stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464 14,109 464 14,109 464 14,109
Common stock, par value
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 726 — 726 — 726 152
Adjustment to par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — (152)
Common stock, end of year .............................................. 726 — 726 — 726 —
Additional paid-in capital
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 19 871
Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 58 74
Income tax benefit from stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 (16)
Common stock issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67) (90) (66)
Noncontrolling interest purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31) — 4
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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 63 —
Additional paid-in capital, end of year ....................................... 7 57 19
Retained earnings (accumulated deficit)
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,921) (23,191) 26,909
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,011) — 1,023
Balance, beginning of year, as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (42,932) (23,191) 27,932
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 14,996 —
Net loss attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,025) (21,553) (50,119)
Senior preferred stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,749) (4,105) (172)
Preferred stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (503)
Common stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (323)
Dividends equivalent payments on expired stock options . . . . . . . . . . . . . . . . . . . . . . . . . . (4) (5) (6)
Transfer to additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23) (63) —
Retained earnings (accumulated deficit), end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62,733) (33,921) (23,191)
AOCI, net of taxes
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (23,648) (32,357) (11,143)
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,690) — (850)
Balance, beginning of year, as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,338) (32,357) (11,993)
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (9,931) —
Changes in unrealized gains (losses) related to available-for-sale securities, net of
reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,621 17,825 (20,616)
Changes in unrealized gains (losses) related to cash flow hedge relationships, net of
reclassification adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 673 773 377
Changes in defined benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 42 (125)
AOCI, net of taxes, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,031) (23,648) (32,357)
Treasury stock, at cost
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 (4,019) 79 (4,111) 80 (4,174)
Common stock issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 66 (2) 92 (1) 63
Treasury stock, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 (3,953) 77 (4,019) 79 (4,111)
Noncontrolling interest
Balance, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 97 181
Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) — —
Balance, beginning of year, as adjusted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 97 181
Net income (loss) attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (1) 3
Noncontrolling interest purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (89) — (82)
Dividends and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (2) (5)
Noncontrolling interest, end of year ........................................ — 94 97
Total equity (deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (401) $ 4,372 $(30,634)
Comprehensive income (loss)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(14,026) $(21,554) $(50,116)
Changes in other comprehensive income (loss), net of taxes, net of reclassification
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,307 18,640 (20,364)
Comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 (2,914) (70,480)
Less: Comprehensive (income) loss attributable to noncontrolling interest . . . . . . . . . . . . . . . 1 1 (3)
Total comprehensive income (loss) attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . $ 282 $ (2,913) $(70,483)
The accompanying notes are an integral part of these consolidated financial statements.
176 Freddie Mac