Fannie Mae 2004 Annual Report Download - page 278

The following table displays the impact of the restatement on the December 31, 2002 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 . . . ...... $10,566 $ 8,317 $ — $ (81) $ 165 $(768) $ 144 $ 83 $ 7,860 $ 18,426
Guaranty fee income . . . ...... 1,816 — — (1) (198) 908 — (9) 700 2,516
Investment gains (losses), net . . . . 24 (13) 189 (638) (26) — 2 (39) (525) (501)
Derivatives fair value losses, net . . (4,545) (13,572) 5,198 — — — — — (8,374) (12,919)
Debt extinguishment losses, net . . (710) (104) — — — — — — (104) (814)
Loss from partnership
investments . . ........... (306) — — — — — — (203) (203) (509)
Fee and other income . . ...... 637 (505) — 5 — 38 (19) (67) (548) 89
Expenses ................ 1,434 — — — — — (8) 108 100 1,534
Income before federal income
taxes . ................ 6,048 (5,877) 5,387 (715) (59) 178 135 (343) (1,294) 4,754
Provision (benefit) for federal
income taxes . ........... 1,429 (2,057) 1,886 (251) (21) 63 47 (256) (589) 840
Net income . . . ........... 4,619 (3,820) 3,501 (464) (38) 115 88 (87) (705) 3,914
Preferred stock dividends and
issuance costs at redemption . . . (111) — — — — — — — — (111)
Net income available to common
stockholders . ........... $4,508 $ (3,820) $3,501 $ (464) $ (38) $ 115 $ 88 $ (87) $ (705) $ 3,803
Basic earnings per share. ...... $ 4.54 $ (3.85) $ 3.53 $(0.47) $(0.04) $0.12 $0.09 $(0.09) $ (0.71) $ 3.83
Diluted earnings per share . . . . . $ 4.52 $ (3.83) $ 3.51 $(0.47) $(0.04) $0.12 $0.09 $(0.09) $ (0.71) $ 3.81
(a)
Certain amounts have been reclassified to conform to the current condensed income statements presentation, as
described below in “Note 2, Summary of Significant Accounting Policies.”
See the “Summary of Restatement Adjustments” section above for further details on the impact of the
restatement errors on the consolidated statements of income.
Statement of Cash Flows Impact
The following table displays the impact of the restatement on the December 31, 2003 and 2002 consolidated
statements of cash flows.
As
Previously
Reported
Total
Restatement
Adjustments
As
Restated
As
Previously
Reported
Total
Restatement
Adjustments
As
Restated
For the Year Ended December 31, 2003 For the Year Ended December 31, 2002
(Dollars in millions)
Net cash provided by operating activities . . $ 19,519 $ 38,704 $ 58,223 $ 12,848 $ 30,783 $ 43,631
Net cash used in investing activities . . . . . (115,801) (36,946) (152,747) (71,426) (42,162) (113,588)
Net cash provided by financing activities . . 95,987 206 96,193 58,770 11,868 70,638
Net increase (decrease) in cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . $ (295) $ 1,964 $ 1,669 $ 192 $ 489 $ 681
Cash and cash equivalents at beginning of
the period . . . . . . . . . . . . . . . . . . . . . . 1,710 16 1,726 1,518 (473) 1,045
Cash and cash equivalents at end of the
period. . . . . . . . . . . . . . . . . . . . . . . . . $ 1,415 $ 1,980 $ 3,395 $ 1,710 $ 16 $ 1,726
The restatement adjustments resulted in a net increase in “Cash and cash equivalents” of $2.0 billion and
$489 million during the years ended December 31, 2003 and 2002, respectively. The restatement adjustment to
increase cash and cash equivalents was the result of recognizing cash collateral associated with certain
derivatives contracts, which was partially offset by classifying cash due to certain MBS trusts as restricted
cash.
F-27
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)