Freddie Mac 2014 Annual Report Download - page 148

143 Freddie Mac
FREDDIE MAC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31,
2014 2013 2012
(in millions, except share-related amounts)
Interest income
Mortgage loans:
Held by consolidated trusts $ 57,036 $ 57,189 $ 65,089
Unsecuritized 6,569 7,694 8,960
Total mortgage loans 63,605 64,883 74,049
Investments in securities 5,843 7,768 10,583
Other 32 51 86
Total interest income 69,480 72,702 84,718
Interest expense
Debt securities of consolidated trusts (48,003) (47,350) (56,109)
Other debt:
Short-term debt (145) (178) (176)
Long-term debt (6,768) (8,251) (10,217)
Total interest expense (54,916) (55,779) (66,502)
Expense related to derivatives (301) (455) (605)
Net interest income 14,263 16,468 17,611
(Provision) benefit for credit losses (58) 2,465 (1,890)
Net interest income after (provision) benefit for credit losses 14,205 18,933 15,721
Non-interest income (loss)
Gains (losses) on extinguishment of debt securities of consolidated trusts (451) 314 (58)
Gains (losses) on retirement of other debt 29 132 (77)
Derivative gains (losses) (8,291) 2,632 (2,448)
Impairment of available-for-sale securities:
Total other-than-temporary impairment of available-for-sale securities (860) (763) (1,236)
Portion of other-than-temporary impairment recognized in AOCI (78) (747) (932)
Net impairment of available-for-sale securities recognized in earnings (938) (1,510) (2,168)
Other gains (losses) on investment securities recognized in earnings 1,494 301 (1,522)
Other income (loss) 8,044 6,650 2,190
Non-interest income (loss) (113) 8,519 (4,083)
Non-interest expense
Salaries and employee benefits (914) (833) (810)
Professional services (527) (543) (361)
Occupancy expense (58) (54) (57)
Other administrative expense (382) (375) (333)
Total administrative expense (1,881) (1,805) (1,561)
Real estate owned operations (expense) income (196) 140 (59)
Temporary Payroll Tax Cut Continuation Act of 2011 expense (775) (533) (108)
Other (expense) income (238) 109 (465)
Non-interest expense (3,090) (2,089) (2,193)
Income before income tax (expense) benefit 11,002 25,363 9,445
Income tax (expense) benefit (3,312) 23,305 1,537
Net income 7,690 48,668 10,982
Other comprehensive income (loss), net of taxes and reclassification adjustments:
Changes in unrealized gains (losses) related to available-for-sale securities 1,584 2,406 4,769
Changes in unrealized gains (losses) related to cash flow hedge relationships 197 316 414
Changes in defined benefit plans (45) 210 (126)
Total other comprehensive income (loss), net of taxes and reclassification adjustments 1,736 2,932 5,057
Comprehensive income $ 9,426 $ 51,600 $ 16,039
Net income $ 7,690 $ 48,668 $ 10,982
Undistributed net worth sweep and senior preferred stock dividends (10,026) (52,199) (13,056)
Net income (loss) attributable to common stockholders $ (2,336) $ (3,531) $ (2,074)
Net income (loss) per common share — basic and diluted $ (0.72) $ (1.09) $ (0.64)
Weighted average common shares outstanding (in millions) — basic and diluted 3,236 3,238 3,240
The accompanying notes are an integral part of these consolidated financial statements.
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