Freddie Mac 2010 Annual Report Download - page 180

FREDDIE MAC
CONSOLIDATED STATEMENTS OF CASH FLOWS
2010 2009 2008
Year Ended December 31,
(in millions)
Cash flows from operating activities
Net loss ................................................................... $ (14,026) $ (21,554) $ (50,116)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Derivative losses (gains) . . .................................................... 3,591 (2,046) 13,650
Asset related amortization — premiums, discounts, and basis adjustments ...................... 326 163 (493)
Debt related amortization — premiums and discounts on certain debt securities and basis adjustments . . . . 1,127 3,959 8,765
Net discounts paid on retirements of other debt . . ..................................... (1,959) (4,303) (8,844)
Net premiums received from issuance of debt securities of consolidated trusts. . . ................. 3,888 — —
Losses (gains) on extinguishment of debt securities of consolidated trusts and other debt ............ 383 568 (209)
Provision for credit losses . .................................................... 17,218 29,530 16,432
Losses on investment activity ................................................... 5,542 5,356 16,108
(Gains) losses on debt recorded at fair value ......................................... (580) 404 (406)
Deferred income tax expense (benefit) . . . .......................................... (670) (670) 5,507
Purchases of held-for-sale mortgages .............................................. (10,188) (101,976) (38,070)
Sales of mortgages acquired as held-for-sale ......................................... 5,627 88,094 24,578
Repayments of mortgages acquired as held-for-sale ..................................... 21 3,050 896
Change in:
Accrued interest receivable ................................................... 832 (1,193) (554)
Accrued interest payable . .................................................... (1,700) (1,324) (786)
Income taxes payable . . . .................................................... 662 312 (1,185)
Other, net . . .............................................................. (233) 2,918 4,568
Net cash provided by (used for) operating activities ..................................... 9,861 1,288 (10,159)
Cash flows from investing activities
Purchases of trading securities................................................... (54,550) (250,411) (200,613)
Proceeds from sales of trading securities . . .......................................... 17,771 153,093 94,764
Proceeds from maturities of trading securities ......................................... 40,389 69,025 18,382
Purchases of available-for-sale securities . . .......................................... (6,542) (15,346) (174,968)
Proceeds from sales of available-for-sale securities ..................................... 2,645 22,259 35,872
Proceeds from maturities of available-for-sale securities . . ................................ 44,398 86,702 193,573
Purchases of held-for-investment mortgages .......................................... (68,180) (23,606) (25,099)
Repayments of mortgages acquired as held-for-investment ................................ 425,298 6,862 6,516
Decrease (increase) in restricted cash .............................................. 7,399 426 (857)
Net proceeds from (payments of) mortgage insurance and acquisitions and dispositions of real estate
owned................................................................. 13,093 (4,690) (2,573)
Net (increase) decrease in federal funds sold and securities purchased under agreements to resell ....... (32,023) 3,150 (3,588)
Derivative premiums and terminations and swap collateral, net . . ........................... (3,075) 99 (12,829)
Purchase of noncontrolling interest . ............................................... (23) — —
Net cash provided by (used for) investing activities ..................................... 386,600 47,563 (71,420)
Cash flows from financing activities
Proceeds from issuance of debt securities of consolidated trusts held by third parties . . . ............ 96,253 — —
Repayments of debt securities of consolidated trusts held by third parties . ...................... (461,084) — —
Proceeds from issuance of other debt .............................................. 1,115,097 1,333,859 1,435,678
Repayments of other debt. . .................................................... (1,180,935) (1,395,806) (1,329,327)
Increase in liquidation preference of senior preferred stock ................................ 12,500 36,900 13,800
Repurchase of REIT preferred stock ............................................... (100) — —
Payment of cash dividends on senior preferred stock, preferred stock, and common stock ............ (5,749) (4,105) (998)
Excess tax benefits associated with stock-based awards . . ................................ 1 1 3
Payments of low-income housing tax credit partnerships notes payable . . ...................... (115) (343) (742)
Other, net . . .............................................................. — — (83)
Net cash (used for) provided by financing activities ..................................... (424,132) (29,494) 118,331
Net (decrease) increase in cash and cash equivalents .................................... (27,671) 19,357 36,752
Cash and cash equivalents at beginning of year. . . ..................................... 64,683 45,326 8,574
Cash and cash equivalents at end of year ........................................... $ 37,012 $ 64,683 $ 45,326
Supplemental cash flow information
Cash paid (received) for:
Debt interest . . .............................................................. $ 95,468 $ 25,169 $ 35,664
Net derivative interest carry and swap collateral interest . . . ................................ 4,305 2,274 953
Income taxes . .............................................................. (848) (472) 1,230
Non-cash investing and financing activities:
Held-for-sale mortgages securitized and retained as trading and available-for-sale securities ............ 372 1,088 —
Underlying mortgage loans related to guarantor swap transactions . . ........................... 324,004 — —
Debt securities of consolidated trusts held by third parties established for guarantor swap transactions . . . . . 324,004 — —
Transfers from held-for-investment mortgages to held-for-sale mortgages . . ...................... 196 435 —
Transfers from held-for-sale mortgages to held-for-investment mortgages . . ...................... — 10,336 —
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 consolidated financial statements.
177 Freddie Mac