Fannie Mae 2004 Annual Report Download - page 181

Contractual Obligations
Table 42 summarizes our expectation as to the effect of our minimum debt payments and other material
noncancelable contractual obligations as of December 31, 2004 on our liquidity and cash flows in future
periods. Our current contractual obligations as of the date of this report are different than the contractual
obligations as of December 31, 2004 presented in the table below, primarily with respect to our debt
obligations. As of December 31, 2004, we had total debt outstanding of $953.1 billion, as compared to total
debt outstanding of $753.2 billion as of September 30, 2006.
Table 42: Contractual Obligations
Total
Less than
1 Year
1to3
Years
3to5
Years
More than
5 Years
(Dollars in millions)
Payments Due by Period as of December 31, 2004
Long-term debt obligations
(1)
. . . . . . . . . . . . . . . $624,324 $145,955 $207,392 $111,722 $159,255
Contractual interest on long-term debt
obligations
(2)
. . . . . . . . . . . . . . . . . . . . . . . . 137,514 23,638 36,040 23,466 54,370
Operating lease obligations
(3)
............... 229 32 67 40 90
Purchase obligations:
Mortgage commitments
(4)
. . . . . . . . . . . . . . . 24,826 24,824 2 — —
Other purchase obligations
(5)
............. 33 16 16 1 —
Other long-term liabilities reflected in the
consolidated balance sheet:
(6)
Government penalty
(7)
.................. 400 — 400 — —
Other
(8)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,820 3,793 901 126 —
Total contractual obligations . . . . . . . . . . . . . . . $792,146 $198,258 $244,818 $135,355 $213,715
(1)
Represents the carrying amount of our long-term debt assuming payments are made in full at maturity. Amounts
exclude approximately $8.5 billion in long-term debt obligations attributable to consolidated VIEs. Amounts include
net premium and deferred price adjustments of $11.2 billion.
(2)
Excludes contractual interest on long-term debt obligations attributable to consolidated VIEs.
(3)
Includes certain premises and equipment leases.
(4)
Includes on- and off-balance sheet commitments to purchase loans and mortgage-related securities.
(5)
Includes only unconditional purchase obligations that are subject to a cancellation penalty for certain telecom services,
software and computer services, and agreements. Excludes arrangements that may be cancelled without penalty.
(6)
Excludes risk management derivative transactions that may require cash settlement in future periods and our obligations
to stand ready to perform under our guaranties relating to Fannie Mae MBS and other financial guaranties, because the
amount and timing of payments under these arrangements are generally contingent upon the occurrence of future
events.
(7)
Represents a $400 million civil penalty to the U.S. government pursuant to May 23, 2006 settlements with the SEC
and OFHEO. This penalty is included in the consolidated balance sheet under “Other Liabilities.”
(8)
Includes future cash payments due under our contractual obligations to fund LIHTC partnerships that are unconditional
and legally binding, as well as cash received as collateral from derivative counterparties, both of which are included in
the consolidated balance sheets under “Other liabilities.”
Cash Flows
Cash Flows for the Year Ended December 31, 2004
During the year ended December 31, 2004, cash and cash equivalents decreased by $740 million, or 22%, to
$2.7 billion as of December 31, 2004 as compared to the prior year.
• We generated net cash of $41.6 billion in operating activities in 2004, primarily due to a net decrease in
trading securities and net income. Our cash generated by operating activities was partially offset by
purchases of HFS loans.
176