Freddie Mac 2014 Annual Report Download - page 96

91 Freddie Mac
Table 38 — Issuances and Extinguishments of Debt Securities of Consolidated Trusts
Year Ended December 31,
2014 2013
(in millions)
Beginning balance of debt securities of consolidated trusts held by third parties $ 1,399,456 $ 1,387,259
Issuances of debt securities of consolidated trusts 257,293 425,619
Debt securities of consolidated trusts retained by us at issuance(1) (47,792) (38,390)
Net issuances of debt securities of consolidated trusts 209,501 387,229
Reissuances of debt securities of consolidated trusts previously held by us(2) 92,053 55,704
Total issuances to third parties of debt securities of consolidated trusts 301,554 442,933
Extinguishments, net(3) (260,685) (430,736)
Ending balance of debt securities of consolidated trusts held by third parties $ 1,440,325 $ 1,399,456
(1) Represents mortgage loans that we had purchased for cash, subsequently securitized, and retained in our mortgage-related investments portfolio.
(2) Represents sales of PCs and certain Other Guarantee Transactions previously held by us.
(3) Includes: (a) purchases of PCs and certain Other Guarantee Transactions from third parties; and (b) principal repayments related to PCs and certain
Other Guarantee Transactions issued by our consolidated trusts.
Total issuances to third parties of debt securities of consolidated trusts and extinguishments, net decreased during 2014
compared to 2013 primarily due to a decrease in refinance activity resulting from higher average mortgage interest rates in
2014 compared to 2013.
Other Liabilities
Other liabilities consist of servicer liabilities, the guarantee obligation, the reserve for guarantee losses on non-
consolidated trusts and other mortgage-related financial guarantees, accounts payable and accrued expenses, and other
miscellaneous liabilities. Other liabilities decreased to $5.1 billion as of December 31, 2014 from $5.5 billion as of
December 31, 2013 primarily due to a decrease in our liability to servicers for advanced interest due to a decline in the
seriously delinquent loan population. See “NOTE 19: SELECTED FINANCIAL STATEMENT LINE ITEMS” for additional
information.
Total Equity
The table below presents the changes in total equity and certain capital-related disclosures.
Table 39 — Changes in Total Equity
Three Months Ended Year
Ended
12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 12/31/2014
(in millions)
Beginning balance $ 5,186 $ 4,290 $ 6,899 $ 12,835 $ 33,436 $ 12,835
Net income 227 2,081 1,362 4,020 8,613 7,690
Other comprehensive income (loss), net of taxes:
Changes in unrealized gains (losses) related to available-for-sale
securities 22 656 479 427 970 1,584
Changes in unrealized gains (losses) related to cash flow hedge
relationships 46 50 49 52 66 197
Changes in defined benefit plans (44) (1) — — 186 (45)
Comprehensive income 251 2,786 1,890 4,499 9,835 9,426
Capital draw funded by Treasury — — — — — —
Senior preferred stock dividends declared (2,786) (1,890) (4,499) (10,435) (30,436) (19,610)
Total equity/Net worth $ 2,651 $ 5,186 $ 4,290 $ 6,899 $ 12,835 $ 2,651
Aggregate draws under the Purchase Agreement (as of period end)(1) $ 71,336 $ 71,336 $ 71,336 $ 71,336 $ 71,336 $ 71,336
Aggregate senior preferred stock dividends paid to Treasury in cash
(as of period end) $ 90,955 $ 88,169 $ 86,279 $ 81,780 $ 71,345 $ 90,955
(1) Does not include the initial $1.0 billion liquidation preference of senior preferred stock that we issued to Treasury in September 2008 as an initial
commitment fee and for which no cash was received. Under the Purchase Agreement, the payment of dividends does not reduce the outstanding
liquidation preference.
At December 31, 2014, our assets exceeded our liabilities under GAAP; therefore no draw is being requested from
Treasury under the Purchase Agreement for the fourth quarter of 2014. We paid cash dividends to Treasury of $19.6 billion
during 2014. Based on our Net Worth Amount at December 31, 2014 and the 2015 Capital Reserve Amount of $1.8 billion, our
dividend obligation to Treasury in March 2015 will be $851 million.
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