Fannie Mae 2004 Annual Report Download - page 276

(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.
(c)
Reflects impact of MBS trust consolidation and sale accounting; the reclassification of “Mortgage loans” to “Advances
to lenders;” the recognition of mortgage loan commitment basis adjustments; the recognition of the LOCOM adjust-
ment for loans classified as HFS; and the recognition of revised amortization on mortgage loan cost basis adjustments.
(d)
Reflects the reclassification of interest rate swap accruals from accrued interest and recognition of derivative fair value
adjustments.
(e)
Reflects the impact of restatement adjustments on deferred taxes and the correction of tax-credit related errors
associated with partnership investments.
(f)
Reflects the reclassification of interest rate swap accruals to “Derivative assets at fair value;” the reclassification of
“Advances to lenders” from “Mortgage loans;” the impairment of buy-ups; the recognition of “Restricted cash” and
“Cash and cash equivalents” related to collateral received from derivatives counterparties; and the impact of cost basis
transfers between error categories.
(g)
Reflects the reversal of previously recorded unrealized gains and losses on 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.
(h)
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 correction of amortization of buy-downs and
risk-based pricing adjustments; and the recognition of liabilities to derivative counterparties associated with restricted
cash.
(i)
Reflects the recognition of derivative fair value adjustments to the consolidated statements of income and other income
or expense related adjustments.
(j)
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 consolidated stockholders’ equity in
the condensed consolidated balance sheet through and as of December 31, 2001.
Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Other
Stockholders’
Equity
Total
Stockholders’
Equity
(Dollars in millions)
December 31, 2001 balance, as previously reported . . . . . . . $ 26,175 $ (7,065) $(992) $18,118
Restatement adjustments for:
Debt and derivatives . . . . . . . . . . . . . . . . . . . . . . . . (10,622)
(a)
11,363
(b)
— 741
Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413 1 — 414
Investments in securities . . . . . . . . . . . . . . . . . . . . . (660) 6,880
(c)
— 6,220
MBS trust consolidation and sale accounting . . . . . . . 119 81 — 200
Financial guaranties and master servicing . . . . . . . . . (206) 268 — 62
Amortization of cost basis adjustments . . . . . . . . . . . 154 — — 154
Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . 296 — 92 388
Pre-tax total impact of restatement adjustments . . . . . . . . (10,506) 18,593 92 8,179
Tax impact (benefit) of restatement adjustments . . . . . . (3,465) 6,506 — 3,041
Total impact of restatement adjustments . . . . . . . . . . . . . (7,041) 12,087 92 5,138
December 31, 2001 balance, as restated . . . . . . . . . . . . . . . $ 19,134 $ 5,022 $(900) $23,256
(a)
Reflects the recognition of derivative fair value gains (losses) and revised amortization of debt cost basis adjustments.
F-25
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)