Freddie Mac 2014 Annual Report Download - page 188

183 Freddie Mac
Table 7.5 — Other-Than-Temporary Impairments Related to Credit Losses on Available-For-Sale Securities
Year Ended
December 31,
2014 2013
(in millions)
Credit-related other-than-temporary impairments on available-for-sale securities recognized in earnings:
Beginning balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were
recognized in earnings $ 14,463 $ 16,745
Additions:
Amounts related to credit losses for which an other-than-temporary impairment was not previously recognized — 46
Amounts related to credit losses for which an other-than-temporary impairment was previously recognized 121 896
Reductions:
Amounts related to securities which were sold, written off, or matured (1,188) (1,193)
Amounts for which we intend to sell the security or it is more likely than not that we will be required to sell the security before
recovery of its amortized cost basis (6,113) (1,536)
Amounts related to amortization resulting from significant increases in cash flows expected to be collected and/or due to the
passage of time that are recognized over the remaining life of the security (485) (495)
Ending balance — remaining credit losses on available-for-sale securities where other-than-temporary impairments were recognized
in earnings(1) $ 6,798 $ 14,463
(1) Excludes other-than-temporary impairments on securities that we intend to sell or it is more likely than not that we will be required to sell before
recovery of the unrealized losses.
Realized Gains and Losses on Sales of Available-For-Sale Securities
The table below illustrates the gross realized gains and gross realized losses from the sale of available-for-sale securities.
Table 7.6 — Gross Realized Gains and Gross Realized Losses on Sales of Available-For-Sale Securities
Year Ended December 31,
2014 2013 2012
(in millions)
Gross realized gains $ 1,897 $ 1,950 $ 152
Gross realized losses (185) (51) —
Net realized gains (losses) $ 1,712 $ 1,899 $ 152
Maturities of Available-For-Sale Securities
The table below summarizes the remaining contractual maturities of available-for-sale securities.
Table 7.7 — Contractual Maturities of Available-For-Sale Securities
As of December 31, 2014
After One Year Through
Five Years After Five Years Through Ten Years
Total
Amortized
Cost Total Fair Value
One Year or Less After Ten Years
Amortized
Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value
(dollars in millions)
Available-for-sale
securities:
Freddie Mac $ 37,710 $ 39,099 $ — $ — $ 300 $ 309 $ 526 $ 559 $ 36,884 $ 38,231
Fannie Mae 10,860 11,313 1 1 61 64 108 120 10,690 11,128
Ginnie Mae 183 199 — — 4 4 22 26 157 169
CMBS 20,988 21,822 — — 316 330 8 8 20,664 21,484
Subprime 20,210 20,589 — — — — — — 20,210 20,589
Option ARM 5,460 5,649 — — — — — — 5,460 5,649
Alt-A and other 4,500 5,043 1 1 31 31 2 2 4,466 5,009
Obligations of states and
political subdivisions 2,166 2,198 — — 40 43 48 49 2,078 2,106
Manufactured housing 556 638 — — — — 9 11 547 627
Total available-for-sale
securities $102,633 $ 106,550 $ 2 $ 2 $ 752 $ 781 $ 723 $ 775 $101,156 $ 104,992
Weighted Average Yield(1) 2.65% 7.63% 5.04% 5.10% 2.61%
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