Freddie Mac 2014 Annual Report Download - page 151

146 Freddie Mac
FREDDIE MAC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
2014 2013 2012
(in millions)
Cash flows from operating activities
Net income $ 7,690 $ 48,668 $ 10,982
Adjustments to reconcile net income to net cash provided by operating activities:
Derivative losses (gains) 5,652 (6,097) (1,350)
Asset related amortization — premiums, discounts, and basis adjustments 3,518 4,627 4,624
Debt related amortization — premiums and discounts on certain debt securities and basis adjustments (5,368) (6,779) (5,782)
Losses (gains) on extinguishment of debt securities of consolidated trusts and other debt 422 (446) 135
Provision (benefit) for credit losses 58 (2,465) 1,890
(Gains) losses on investment activity (1,287) 1,545 2,680
Deferred income tax expense (benefit) 2,284 (23,422) 3
Purchases of held-for-sale mortgage loans (24,593) (23,103) (25,340)
Sales of mortgage loans acquired as held-for-sale 21,995 28,123 21,764
Repayments of mortgage loans acquired as held-for-sale 67 167 59
Payments to servicers for pre-foreclosure expense and servicer incentive fees (932) (1,302) (1,269)
Change in:
Accrued interest receivable 116 725 1,187
Accrued interest payable (440) (849) (1,094)
Income taxes receivable 268 117 (1,523)
Other, net (565) (2,957) (1,722)
Net cash provided by operating activities 8,885 16,552 5,244
Cash flows from investing activities
Purchases of trading securities (42,477) (53,753) (33,880)
Proceeds from sales of trading securities 18,513 57,380 17,641
Proceeds from maturities of trading securities 17,118 12,542 31,106
Purchases of available-for-sale securities (25,290) (9,681) (3,252)
Proceeds from sales of available-for-sale securities 32,062 24,675 1,729
Proceeds from maturities of available-for-sale securities 20,734 33,630 38,517
Purchases of held-for-investment mortgage loans (75,298) (79,028) (79,492)
Proceeds from sales of mortgage loans acquired as held-for-investment 454 196 5
Repayments of mortgage loans acquired as held-for-investment 241,552 410,455 522,242
Decrease in restricted cash 3,730 2,327 13,471
Net proceeds from dispositions of real estate owned and other recoveries 7,712 11,274 11,265
Net decrease (increase) in federal funds sold and securities purchased under agreements to resell 10,480 (24,820) (25,519)
Derivative premiums and terminations and swap collateral, net (3,888) 6,062 569
Other investing activities, net (134) — —
Net cash provided by investing activities 205,268 391,259 494,402
Cash flows from financing activities
Proceeds from issuance of debt securities of consolidated trusts held by third parties 124,887 113,841 95,601
Repayments of debt securities of consolidated trusts held by third parties (262,920) (430,118) (494,275)
Proceeds from issuance of other debt 451,854 701,342 718,731
Repayments of other debt (508,710) (742,510) (832,552)
Increase in liquidation preference of senior preferred stock — — 165
Payment of cash dividends on senior preferred stock (19,610) (47,591) (7,233)
Other financing activities, net (7) (7) (12)
Net cash used in financing activities (214,506) (405,043) (519,575)
Net (decrease) increase in cash and cash equivalents (353) 2,768 (19,929)
Cash and cash equivalents at beginning of year 11,281 8,513 28,442
Cash and cash equivalents at end of year $ 10,928 $ 11,281 $ 8,513
Supplemental cash flow information
Cash paid (received) for:
Debt interest $ 62,257 $ 65,614 75,328
Net cash settlement on interest rate swaps 2,537 3,701 4,044
Income taxes 760 — (18)
Non-cash investing and financing activities (Notes 3, 4, 6 and 7)
The accompanying notes are an integral part of these consolidated financial statements.
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