Freddie Mac 2010 Annual Report Download - page 257

Net Interest
Income
Provision for
Credit Losses
Management
and Guarantee
Income
(1)
Security
Impairments
Derivative
Gains
(Losses)
Other
Non-Interest
Income (Loss)
Administrative
Expenses
REO Operations
Expense
Other
Non-Interest
Expense
LIHTC
Partnerships
Tax Credit
Income Tax
Benefit
(Expense)
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, 2009
(in millions)
Investments . . . . . . . . . . . . $ 8,090 $ — $ — $ (9,870) $ 4,695 $ 4,682 $ (515) $ — $ (33) $ — $ (572) $ 6,477 $ (1) $ 6,476 Single-family Guarantee . . . . . 307 (29,102) 3,448 — — 721 (915) (287) (4,888) — 3,573 (27,143) — (27,143) Multifamily . . . . . . . . . . . . 856 (574) 90 (137) (27) (462) (221) (20) (18) 594 (594) (513) 2 (511) All Other . . . . . . . . . . . . . — — — — — (3,653) — — (109) — (478) (4,240) — (4,240)
Total Segment Earnings
(loss), net of taxes . . . . . 9,253 (29,676) 3,538 (10,007) 4,668 1,288 (1,651) (307) (5,048) 594 1,929 (25,419) 1 (25,418)
Reconciliation to consolidated
statements of operations: Credit guarantee-related
adjustments
(2)
. . . . . . . . 21 6 (945) — — 7,055 — — (189) — — 5,948 — 5,948
Reclassifications
(3)
. . . . . . . 7,799 140 440 (1,190) (6,568) (1,011) — — — — 390 — — —
Tax-related adjustments . . . . — — — — — — — — — — (2,083) (2,083) — (2,083)
Total reconciling items . . . 7,820 146 (505) (1,190) (6,568) 6,044 — — (189) — (1,693) 3,865 — 3,865
Total per consolidated
statements of operations . . . . $17,073 $(29,530) $3,033 $(11,197) $(1,900) $ 7,332 $(1,651) $(307) $(5,237) $594 $ 236 $(21,554) $ 1 $(21,553)
Net Interest
Income
Provision for
Credit Losses
Management
and Guarantee
Income
(1)
Security
Impairments
Derivative
Gains
(Losses)
Other
Non-Interest
Income (Loss)
Administrative
Expenses
REO Operations
Expense
Other
Non-Interest
Expense
LIHTC
Partnerships
Tax Credit
Income Tax
Benefit
(Expense)
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, 2008
(in millions)
Investments . . . . . . . . . . . . $2,815 $ — $ — $(17,129) $(12,845) $ 2,793 $ (486) $ — $(1,117) $ — $(2,047) $(28,016) $ (5) $(28,021) Single-family Guarantee . . . . . 280 (16,325) 3,615 — — 880 (826) (1,097) (1,730) — (5,146) (20,349) — (20,349) Multifamily . . . . . . . . . . . . 772 (229) 76 — (3) (517) (193) — (21) 589 (532) (58) 2 (56) All Other . . . . . . . . . . . . . — — — — — — — — — — 174 174 — 174
Total Segment Earnings
(loss), net of taxes . . . . . 3,867 (16,554) 3,691 (17,129) (12,848) 3,156 (1,505) (1,097) (2,868) 589 (7,551) (48,249) (3) (48,252)
Reconciliation to consolidated
statements of operations: Credit guarantee-related
adjustments
(2)
. . . . . . . . 3 21 (614) — (11) (1,989) — — (283) — — (2,873) — (2,873)
Reclassifications
(3)
. . . . . . . 2,926 101 293 (553) (2,095) (1,076) — — — — 404 — — —
Tax-related adjustments . . . . — — — — — — — — — — 1,006 1,006 — 1,006
Total reconciling items . . . 2,929 122 (321) (553) (2,106) (3,065) — — (283) — 1,410 (1,867) — (1,867)
Total per consolidated
statements of operations . . . . $6,796 $(16,432) $3,370 $(17,682) $(14,954) $ 91 $(1,505) $(1,097) $(3,151) $589 $(6,141) $(50,116) $ (3) $(50,119)
(1) Management and guarantee income total per consolidated statements of operations is included in other income on our GAAP consolidated statements of operations. (2) Consists primarily of amortization and valuation adjustments pertaining to the guarantee asset and guarantee obligation which are excluded from Segment Earnings and cash compensation
exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into earnings. These reconciling items exist in periods prior to 2010 as the amendment to the accounting standards for transfers of financial assets and consolidation of VIEs was applied prospectively on January 1, 2010.
(3) See “Segment Earnings — Investment Activity-Related Reclassifications” and “— Credit Guarantee Activity-Related Reclassifications” for information regarding these reclassifications.
254 Freddie Mac