Freddie Mac 2015 Annual Report Download - page 30

Management's Discussion and Analysis Consolidated Balance Sheets Analysis
Freddie Mac 2015 Form 10-K 28
CONSOLIDATED BALANCE SHEETS ANALYSIS
The table below compares our summarized consolidated balance sheets.
December 31,
(dollars in millions) 2015 2014 $ Change % Change
Assets:
Cash and cash equivalents $ 5,595 $10,928 $ (5,333) (49)%
Restricted cash and cash equivalents 14,533 8,535 5,998 70
Securities purchased under agreements
to resell 63,644 51,903 11,741 23
Investments in securities 114,215 136,987 (22,772) (17)
Mortgage loans, net 1,754,193 1,700,580 53,613 3
Accrued interest receivable 6,074 6,034 40 1
Derivative assets, net 395 822 (427)(52)
Real estate owned, net 1,725 2,558 (833)(33)
Deferred tax assets, net 18,205 19,498 (1,293) (7)
Other assets 7,471 7,694 (223) (3)
Total assets $ 1,986,050 $ 1,945,539 $40,511 2 %
Liabilities and Equity:
Liabilities:
Accrued interest payable $ 6,183 $6,325 $(142) (2)%
Debt, net 1,970,427 1,929,542 40,885 2
Derivative liabilities, net 1,254 1,963 (709)(36)
Other liabilities 5,246 5,058 188 4
Total liabilities 1,983,110 1,942,888 40,222 2
Total equity 2,940 2,651 289 11
Total liabilities and equity $ 1,986,050 $ 1,945,539 $40,511 2 %
Key Drivers:
• Cash and cash equivalents, restricted cash and cash equivalents, and securities purchased
under agreements to resell affect one another, so the changes in the balances should be viewed
together. For example, cash and cash equivalents and restricted cash and cash equivalents can be
invested in securities purchased under agreements to resell or other investments in securities (i.e.,
non-mortgage-related securities). The drivers of the increase in the combined balance are higher
near-term cash needs for upcoming maturities and anticipated calls of other debt, and an increase in
principal and interest payments received from servicers for unsecuritized mortgage loans owned by
us.
• Investments in securities continued to decline as we continued to reduce the less liquid assets in
our mortgage-related investments portfolio, partially offset by increases in Treasury securities for
upcoming maturities and anticipated calls of other debt.
• Mortgage loans, net increased, driven by an increase in acquisitions of purchase money loans,
which resulted from higher volumes of home sales and home price appreciation.
• Real estate owned, net continued to decline as we continued to sell our existing inventory and the
pace of new REO acquisitions slowed as our population of seriously delinquent loans declined.
• Deferred tax assets, net declined primarily due to the reduction of deferred differences related to the
allowance for loan losses and credit-related items.