Freddie Mac 2010 Annual Report Download - page 195

Impacts on Consolidated Balance Sheets
The effects of these changes are summarized in Table 2.1 below. Table 2.1 also illustrates the impact on our
consolidated balance sheets of our adoption of these changes in accounting principles.
Table 2.1 — Impact of the Change in Accounting for Transfers of Financial Assets and Consolidation of Variable
Interest Entities on Our Consolidated Balance Sheet
December 31,
2009
(1)
Consolidation
of VIEs
Reclassifications and
Eliminations
January 1,
2010
(in millions)
Assets
Cash and cash equivalents ...................................... $ 64,683 $ — $ (1) $ 64,682
Restricted cash and cash equivalents
(2)
.............................. 527 14,982 — 15,509
Federal funds sold and securities purchased under agreements to resell
(3)
....... 7,000 7,500 — 14,500
Investments in securities:
(4)
Available-for-sale, at fair value.................................. 384,684 — (128,452) 256,232
Trading, at fair value ........................................ 222,250 — (158,089) 64,161
Total investments in securities .................................. 606,934 — (286,541) 320,393
Mortgage loans:
Held-for-investment, at amortized cost:
By consolidated trusts, net of allowance for loan losses
(5)(6)
............. — 1,812,871 (32,192) 1,780,679
Unsecuritized, net of allowance for loan losses
(7)
.................... 111,565 — 11,632 123,197
Total held-for-investment mortgage loans, net ................... 111,565 1,812,871 (20,560) 1,903,876
Held-for-sale, at lower-of-cost-or-fair-value
(7)
........................ 16,305 — (13,506) 2,799
Total mortgage loans, net ..................................... 127,870 1,812,871 (34,066) 1,906,675
Accrued interest receivable
(8)
.................................... 3,376 8,891 (2,723) 9,544
Derivative assets, net .......................................... 215 — — 215
Real estate owned, net ......................................... 4,692 147 — 4,839
Deferred tax assets, net ........................................ 11,101 — 1,445 12,546
Other assets:
Guarantee asset, at fair value
(9)
................................. 10,444 — (10,024) 420
Other
(10)
................................................. 4,942 7,549 (3,789) 8,702
Total other assets ........................................... 15,386 7,549 (13,813) 9,122
Total assets ............................................... $841,784 $1,851,940 $(335,699) $2,358,025
Liabilities and equity (deficit)
Liabilities
Accrued interest payable
(11)
..................................... $ 5,047 $ 8,630 $ (1,446) $ 12,231
Debt, net:
Debt securities of consolidated trusts held by third parties
(12)
............. — 1,843,195 (276,789) 1,566,406
Other debt ............................................... 780,604 — — 780,604
Total debt, net ............................................. 780,604 1,843,195 (276,789) 2,347,010
Derivative liabilities, net ........................................ 589 — — 589
Other Liabilities:
Guarantee obligation
(9)
....................................... 12,465 — (11,823) 642
Reserve for guarantee losses on Participation Certificates
(6)
............... 32,416 — (32,192) 224
Other ................................................... 6,291 115 (1,746) 4,660
Total other liabilities ........................................ 51,172 115 (45,761) 5,526
Total liabilities ............................................ 837,412 1,851,940 (323,996) 2,365,356
Commitments and contingencies
Equity (deficit)
Freddie Mac stockholders’ equity (deficit)
Senior preferred stock, at redemption value ......................... 51,700 — — 51,700
Preferred stock, at redemption value . . ............................ 14,109 — — 14,109
Common stock, $0.00 par value ................................. — — — —
Additional paid-in capital ..................................... 57 — — 57
Retained earnings (accumulated deficit)
(13)
.......................... (33,921) — (9,011) (42,932)
AOCI, net of taxes, related to:
Available-for-sale securities
(14)
.............................. (20,616) — (2,683) (23,299)
Cash flow hedge relationships . . . ............................ (2,905) — (7) (2,912)
Defined benefit plans ..................................... (127) — — (127)
Total AOCI, net of taxes ................................. (23,648) — (2,690) (26,338)
Treasury stock, at cost ....................................... (4,019) — — (4,019)
Total Freddie Mac stockholders’ equity (deficit) ................. 4,278 — (11,701) (7,423)
Noncontrolling interest ......................................... 94 — (2) 92
Total equity (deficit) ......................................... 4,372 — (11,703) (7,331)
Total liabilities and equity (deficit) ............................... $841,784 $1,851,940 $(335,699) $2,358,025
(1) Certain December 31, 2009 amounts presented in our consolidated balance sheet within this Form 10-K reflect reclassifications in connection with the
adoption of amendments to the accounting standards for transfers of financial assets and consolidation of VIEs effective January 1, 2010.
(2) We recognize the cash held by trusts for our single-family PCs and certain Other Guarantee Transactions as restricted cash and cash equivalents on our
consolidated balance sheets. This adjustment represents amounts that may only be used to settle the obligations of our consolidated trusts.
192 Freddie Mac