Freddie Mac 2015 Annual Report Download - page 158

Management's Discussion and Analysis Liquidity and Capital Resources | Liquidity Profile
Freddie Mac 2015 Form 10-K 156
available funding remaining under the Purchase Agreement is $140.5 billion. This amount will be reduced
by any future draws.
At December 31, 2015, our assets exceeded our liabilities under GAAP; therefore no draw is being
requested from Treasury under the Purchase Agreement. Based on our Net Worth Amount at
December 31, 2015 and the 2016 Capital Reserve Amount of $1.2 billion, our dividend obligation to
Treasury in March 2016 will be $1.7 billion. Under the Purchase Agreement, the payment of dividends
does not reduce the outstanding liquidation preference of the senior preferred stock. As a result of the net
worth sweep dividend on the senior preferred stock, our future profits will effectively be distributed to
Treasury, and we cannot retain capital from the earnings generated by our business operations (other
than a limited amount that will decrease to zero in 2018) or return capital to stockholders other than
Treasury. See “Conservatorship and Related Matters” and “Regulation and Supervision” for more
information.
The table below presents activity related to our equity capital during the last five quarters.
Three Months Ended Year Ended
(in millions) 12/31/2015 9/30/2015 6/30/2015 3/31/2015 12/31/2014 12/31/2015
Beginning balance $ 1,299 $ 5,713 $2,546 $2,651 $5,186 $2,651
Comprehensive income 1,641 (501)3,913 746 251 5,799
Capital draw from Treasury — — — — — —
Senior preferred stock
dividends declared — (3,913) (746)(851) (2,786) (5,510)
Total equity / net worth $ 2,940 $ 1,299 $5,713 $2,546 $2,651 $2,940
Aggregate draws under
Purchase Agreement $ 71,336 $ 71,336 $ 71,336 $71,336 $71,336 $71,336
Aggregate cash dividends
paid to Treasury $ 96,465 $ 96,465 $ 92,552 $91,806 $90,955 $96,465