Freddie Mac 2015 Annual Report Download - page 212

Financial Statements Consolidated Statements of Cash Flows
Freddie Mac 2015 Form 10-K 210
FREDDIE MAC
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
(in millions) 2015 2014 2013
Cash flows from operating activities
Net income $ 6,376 $ 7,690 $ 48,668
Adjustments to reconcile net income to net cash provided by operating activities:
Derivative losses (gains) 456 5,652 (6,097)
Asset related amortization — premiums, discounts, and basis adjustments 5,321 3,518 4,627
Debt related amortization — premiums and discounts on certain debt securities
and basis adjustments (8,295) (5,368) (6,779)
Losses (gains) on extinguishment of debt 240 422 (446)
(Benefit) provision for credit losses (2,665) 58 (2,465)
Losses (gains) on investment activity 1,878 (1,287) 1,545
Deferred income tax expense (benefit) 1,655 2,284 (23,422)
Purchases of mortgage loans acquired as held-for-sale (41,728) (24,593) (23,103)
Sales of mortgage loans acquired as held-for-sale 36,034 21,995 28,123
Repayments of mortgage loans acquired as held-for-sale 150 67 167
Payments to servicers for pre-foreclosure expense and servicer incentive fees (867) (932) (1,302)
Change in:
Accrued interest receivable (40) 116 725
Accrued interest payable (43) (440) (849)
Income taxes receivable 1,022 268 117
Other, net (428) (565) (2,957)
Net cash (used in) provided by operating activities (934) 8,885 16,552
Cash flows from investing activities
Purchases of trading securities (40,614) (42,477) (53,753)
Proceeds from sales of trading securities 14,847 18,513 57,380
Proceeds from maturities of trading securities 16,377 17,118 12,542
Purchases of available-for-sale securities (6,818) (25,290) (9,681)
Proceeds from sales of available-for-sale securities 18,900 32,062 24,675
Proceeds from maturities of available-for-sale securities 20,807 20,734 33,630
Purchases of held-for-investment mortgage loans (122,082) (75,298) (79,028)
Proceeds from sales of mortgage loans held-for-investment 2,727 454 196
Repayments of mortgage loans held-for-investment 302,364 241,552 410,455
(Increase) decrease in restricted cash (5,998) 3,730 2,327
Net proceeds from dispositions of real estate owned and other recoveries 3,650 7,712 11,274
Net (increase) decrease in securities purchased under agreements to resell (11,741) 10,480 (24,820)
Derivative premiums and terminations and swap collateral, net (749) (3,888) 6,062
Changes in other assets (12,724) (134) —
Net cash provided by investing activities 178,946 205,268 391,259
Cash flows from financing activities
Proceeds from issuance of debt securities of consolidated trusts held by third parties 174,561 124,887 113,841
Repayments and redemptions of debt securities of consolidated trusts held by third
parties (316,306) (262,920) (430,118)
Proceeds from issuance of other debt 610,091 451,854 701,342
Repayments of other debt (646,176) (508,710) (742,510)
Payment of cash dividends on senior preferred stock (5,510) (19,610) (47,591)
Changes in other liabilities (5) (7) (7)
Net cash used in financing activities (183,345) (214,506) (405,043)
Net (decrease) increase in cash and cash equivalents (5,333) (353) 2,768
Cash and cash equivalents at beginning of year 10,928 11,281 8,513
Cash and cash equivalents at end of year $ 5,595 $ 10,928 $ 11,281
Supplemental cash flow information
Cash paid for:
Debt interest $ 61,120 $ 62,257 $ 65,614
Income taxes 1,095 760 —
Non-cash investing and financing activities (Notes 4, 5 and 6)
The accompanying notes are an integral part of these consolidated financial statements.