Fannie Mae 2005 Annual Report Download - page 160

Contractual Obligations
Table 36 summarizes our expectation as to the effect of our minimum debt payments and other material
noncancelable contractual obligations as of December 31, 2005 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, 2005 presented in the table below, primarily with respect to our debt
obligations. As of December 31, 2005, we had total debt outstanding of $764.7 billion, as compared to an
estimated total debt outstanding of $774.4 billion as of December 31, 2006.
Table 36: Contractual Obligations
Total
Less than
1 Year
1to3
Years
3to5
Years
More than
5 Years
Payments Due by Period as of December 31, 2005
(Dollars in millions)
Long-term debt obligations
(1)
. . . . . . . . . . . . . . . $584,017 $129,138 $197,438 $105,754 $151,687
Contractual interest on long-term debt
obligations
(2)
. . . . . . . . . . . . . . . . . . . . . . . . 135,478 24,005 35,596 22,541 53,336
Operating lease obligations
(3)
............... 203 35 59 37 72
Purchase obligations:
Mortgage commitments
(4)
. . . . . . . . . . . . . . . 23,673 23,636 37 — —
Other purchase obligations
(5)
............. 95 51 44 — —
Other long-term liabilities reflected in the
consolidated balance sheet:
(6)
Government penalty
(7)
.................. 400 400 — — —
Other
(8)
............................ 5,118 4,073 1,045 — —
Total contractual obligations . . . . . . . . . . . . . . . $748,984 $181,338 $234,219 $128,332 $205,095
(1)
Represents the carrying amount of our long-term debt assuming payments are made in full at maturity. Amounts
exclude approximately $6.8 billion in long-term debt from consolidations. Amounts include unamortized net premium
and cost basis adjustments of approximately $10.7 billion.
(2)
Excludes contractual interest on long-term debt from consolidations.
(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 obliga-
tions 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. For a description of the amount of our on- and off-balance sheet Fannie Mae MBS and other financial
guaranties as of December 31, 2005, see “Off-Balance Sheet Arrangements and Variable Interest Entities.”
(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 and other partnerships that are
unconditional and legally binding, as well as cash received as collateral from derivative counterparties, which are
included in the consolidated balance sheets under “Partnership liabilities” and “Other liabilities,” respectively. Amounts
also include our obligation to fund partnerships that have been consolidated.
Cash Flows
Cash Flows for the Year Ended December 31, 2005
During the year ended December 31, 2005, cash and cash equivalents increased by $165 million, or 6%, to
$2.8 billion as of December 31, 2005 as compared to the prior year.
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