Fannie Mae 2004 Annual Report Download - page 274

“Cash and cash equivalents” related to collateral received from derivatives counterparties; and the impact of cost basis
transfers between error categories.
(h)
Reflects the reversal of previously recorded unrealized gains and losses on the hedged items associated with fair value
hedges; the recognition of revised amortization of debt basis adjustments; and the recognition of short-term and long-
term debt upon consolidation of MBS trusts in which we own less than 100% of the related securities.
(i)
Reflects the valuation adjustment related to the guaranty obligations; the reclassification of buy-downs and risk-based
pricing adjustments from “Other liabilities;” and the derecognition of guaranty arrangements upon consolidation.
(j)
Reflects the reclassification of interest rate swap accruals to “Derivative liabilities at fair value;” the reversal of short-
term debt associated with failed dollar roll repurchase transactions; the reclassification of buy-downs and risk-based
pricing adjustments to “Guaranty obligations;” and the recognition of liabilities to derivative counterparties associated
with restricted cash.
(k)
Reflects the recognition of derivative fair value adjustments to the consolidated statements of income and other income
or expense related adjustments.
(l)
Reflects the reversal of previously recorded derivatives fair value adjustments and the recognition of unrealized gains
(losses) on AFS securities and buy-ups.
The following table displays the cumulative impact of the restatement on the condensed consolidated balance
sheet through and as of December 31, 2002.
As
Previously
Reported
(a)
Debt and
Derivatives Commitments
Investments
in Securities
MBS Trust
Consolidation
and Sale
Accounting
Financial
Guaranties
and Master
Servicing
Amortization
of Cost Basis
Adjustments
Other
Adjustments
Total
Restatement
Adjustments
As
Restated
Restatement Adjustments for:
(Dollars in millions)
Assets:
Investments in securities . . . . . . $650,616 $ — $ 230 $ 33,278 $(128,809) $ — $ 558 $(20,788) $(115,531)
(b)
$535,085
Mortgage loans . . . . . . . . . . . 206,905 — 683 (20,576) 136,097 — (291) 1,552 117,465
(c)
324,370
Derivative assets at fair value . . . 3,666 (297) 1,554 — — — — — 1,257
(d)
4,923
Deferred tax assets . . . . . . . . . 8,053 (2,885) (2,035) (2,969) (309) (23) (111) 279 (8,053)
(e)
—
Other assets . . . . . . . . . . . . . 18,275 (501) 3,737 (4,539) 674 (864) 108 23,471 22,086
(f)
40,361
Total assets . . . . . . . . . . . . $887,515 $ (3,683) $ 4,169 $ 5,194 $ 7,653 $(887) $ 264 $ 4,514 $ 17,224 $904,739
Liabilities and Stockholders’ Equity
Liabilities:
Debt . . . . . . . . . . . . . . . . . $841,899 $ (8,237) $ — $ — $ 7,516 $ — $ — $ 115 $ (606)
(g)
$841,293
Derivative liabilities at fair
value . . . . . . . . . . . . . . . 5,697 1,036 169 — — — — — 1,205
(d)
6,902
Other liabilities . . . . . . . . . . . 23,631 (1,840) 220 (324) (438) (890) 58 4,228 1,014
(h)
24,645
Total liabilities . . . . . . . . . . 871,227 (9,041) 389 (324) 7,078 (890) 58 4,343 1,613 872,840
Stockholders’ Equity:
Retained earnings. . . . . . . . . . 29,385 (10,909) 3,771 (891) 39 (18) 188 73 (7,747)
(i)
21,638
Accumulated other
comprehensive (loss) income . . (11,792) 16,267 9 6,409 536 21 18 — 23,260
(j)
11,468
Other stockholders’ equity . . . . . (1,305) — — — — — — 98 98 (1,207)
Total stockholders’ equity . . . . 16,288 5,358 3,780 5,518 575 3 206 171 15,611 31,899
Total liabilities and stockholders’
equity . . . . . . . . . . . . . . . . $887,515 $ (3,683) $ 4,169 $ 5,194 $ 7,653 $(887) $ 264 $ 4,514 $ 17,224 $904,739
(a)
Certain previously reported balances have been reclassified to conform to the current condensed consolidated balance
sheet presentation, as described in “Note 2, Summary of Significant Accounting Policies.”
(b)
Reflects the impact of MBS trust consolidation and sale accounting; the derecognition of HTM securities at amortized
cost and recognition of AFS and trading securities at fair value, including commitments accounted for under
EITF 96-11; the recognition of revised securities commitment basis adjustments; the recognition of revised amortization
on securities cost basis adjustments; and the derecognition of securities related to failed dollar roll repurchase transac-
tions that did not meet the criteria for secured borrowing accounting.
F-23
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)