Fannie Mae 2004 Annual Report Download - page 277

(b)
Reflects the reversal of previously recorded derivative fair value losses.
(c)
Reflects the recognition of net unrealized gains on AFS securities.
Statement of Income Impact
The following table displays the impact of the restatement on the December 31, 2003 condensed consolidated
statement of income.
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, except per share data)
Net interest income .......... $13,569 $ 8,098 $ — $ (162) $ 251 $ (948) $(1,355) $ 24 $ 5,908 $19,477
Guaranty fee income . . . ...... 2,411 — — (1) (247) 1,126 — (8) 870 3,281
Investment losses, net . . . ...... (123) (53) (280) (241) (230) — (1) (303) (1,108) (1,231)
Derivatives fair value losses, net . . (2,180) (2,567) (1,543) — — — — 1 (4,109) (6,289)
Debt extinguishment losses, net . . . (2,261) (430) — — — — — (1) (431) (2,692)
Loss from partnership
investments . . . .......... (336) — — — — — — (301) (301) (637)
Fee and other income . . . ...... 1,076 (692) (3) 72 — 14 — (127) (736) 340
Expenses . ............... 1,743 — — — — 17 (8) 211 220 1,963
Income before federal income
taxes, extraordinary gains
(losses), and cumulative effect of
change in accounting principle . . 10,413 4,356 (1,826) (332) (226) 175 (1,348) (926) (127) 10,286
Provision (benefit) for federal
income taxes . . .......... 2,693 1,525 (639) (116) (77) 56 (472) (536) (259) 2,434
Income before extraordinary gains
(losses) and cumulative effect of
change in accounting principle . . 7,720 2,831 (1,187) (216) (149) 119 (876) (390) 132 7,852
Extraordinary gains (losses), net of
tax effect ............... — — — — 195 — — — 195 195
Cumulative effect of change in
accounting principle, net of tax
effect . . ............... 185 — (185) — 34 — — — (151) 34
Net income ............... 7,905 2,831 (1,372) (216) 80 119 (876) (390) 176 8,081
Preferred stock dividends and
issuance costs at redemption . . . (150) — — — — — — — — (150)
Net income available to common
stockholders . . . .......... $7,755 $ 2,831 $(1,372) $ (216) $ 80 $ 119 $ (876) $ (390) $ 176 $ 7,931
Basic earnings per share . ...... $ 7.93 $ 2.90 $ (1.40) $(0.22) $0.08 $ 0.13 $ (0.90) $(0.40) $ 0.19 $ 8.12
Diluted earnings per share ...... $ 7.91 $ 2.89 $ (1.40) $(0.22) $0.08 $ 0.12 $ (0.89) $(0.41) $ 0.17 $ 8.08
(a)
Certain amounts have been reclassified to conform to the current condensed income statements presentation, as
described in “Note 2, Summary of Significant Accounting Policies.”
F-26
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)