Freddie Mac 2010 Annual Report Download - page 287

weighted average common shares outstanding — basic. For a discussion of our significant accounting policies regarding our
calculation of earnings per common share, see “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES —
Earnings Per Common Share.”
Table 22.1 — Loss Per Common Share — Basic and Diluted
2010 2009 2008
Year Ended December 31,
(dollars in millions,
except per share amounts)
Net loss attributable to Freddie Mac . . . . .......................................... $ (14,025) $ (21,553) $ (50,119)
Preferred stock dividends
(1)
.................................................... (5,749) (4,105) (675)
Amount allocated to participating security option holders . . . . . ........................... — — (1)
Net loss attributable to common stockholders ........................................ $ (19,774) $ (25,658) $ (50,795)
Weighted average common shares outstanding — basic (in thousands)
(2)
...................... 3,249,369 3,253,836 1,468,062
Dilutive potential common shares (in thousands) .................................... — — —
Weighted average common shares outstanding — diluted (in thousands) . . . . . . ................ 3,249,369 3,253,836 1,468,062
Antidilutive potential common shares excluded from the computation of dilutive potential common
shares (in thousands) ....................................................... 5,290 7,541 10,611
Basic loss per common share . . ................................................. $ (6.09) $ (7.89) $ (34.60)
Diluted loss per common share . ................................................. $ (6.09) $ (7.89) $ (34.60)
(1) Consistent with the covenants of the Purchase Agreement, we paid dividends on our senior preferred stock, but did not declare dividends on any other
series of preferred stock outstanding subsequent to entering conservatorship.
(2) Includes the weighted average number of shares during 2010 and 2009 respectively that are associated with the warrant for our common stock issued to
Treasury as part of the Purchase Agreement. This warrant is included in shares outstanding — basic, since it is unconditionally exercisable by the holder
at a minimal cost of $0.00001 per share.
NOTE 23: SELECTED FINANCIAL STATEMENT LINE ITEMS
As discussed in “NOTE 2: CHANGE IN ACCOUNTING PRINCIPLES,” we adopted amendments to the accounting
standards for transfers of financial assets and consolidation of VIEs effective January 1, 2010. As a result of this change in
accounting principles, certain line items on our consolidated statements of operations, consolidated balance sheets, and
consolidated statements of cash flows are no longer material to our 2010 consolidated results of operations, financial
position, and cash flows.
As this change in accounting principles was applied prospectively, the results of operations for the year ended
December 31, 2010 reflect the consolidation of our single-family PC trusts and certain Other Guarantee Transactions while
the results of operations for the years ended December 31, 2009 and 2008 reflect the accounting policies in effect at that
time, i.e., these securitization entities were accounted for off-balance sheet. Table 23.1 highlights the significant line items
that are no longer disclosed separately on our consolidated statements of operations.
Table 23.1 — Line Items No Longer Disclosed Separately on our Consolidated Statements of Operations
2010 2009 2008
For The Year Ended
December 31,
(in millions)
Other income:
Management and guarantee income . . . . . . ............................................... $ 143 $3,033 $ 3,370
Gains (losses) on guarantee asset . . . . . . . ............................................... (61) 3,299 (7,091)
Income on guarantee obligation . . . . . . . . ............................................... 135 3,479 4,826
Gains (losses) on sale of mortgage loans . . ............................................... 267 745 117
Lower-of-cost-or-fair-value adjustments on held-for-sale mortgage loans . . .......................... — (679) (30)
Gains (losses) on mortgage loans recorded at fair value . ...................................... (249) (190) (14)
Recoveries on loans impaired upon purchase .............................................. 806 379 495
Low-income housing tax credit partnerships ............................................... — (4,155) (453)
Trust management income (expense) . . . . . ............................................... — (761) (70)
All other ....................................................................... 819 222 195
Total other income per consolidated statements of operations .................................. $1,860 $ 5,372 $ 1,345
Other expenses:
Losses on loans purchased . .......................................................... $ 25 $4,754 $ 1,634
Securities administrator loss on investment activity
(1)
......................................... — — 1,082
All other ....................................................................... 688 483 435
Total other expenses per consolidated statements of operations ................................. $ 713 $5,237 $ 3,151
(1) Represents losses we recognized in 2008 on investments made by us in Lehman on behalf of our securitization trusts. See “NOTE 19:
CONCENTRATION OF CREDIT AND OTHER RISKS” for additional information.
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