Fannie Mae 2006 Annual Report Download - page 269

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We record gains or losses in “Investment losses, net” in the consolidated statements of income from both the
sale of trading securities and from changes in fair value from holding trading securities in our investments
portfolio. The following table displays the realized gains and losses from the sale of trading securities as well
as the net change in gains and losses from holding trading securities for the years ended December 31, 2006,
2005 and 2004.
2006 2005 2004
For the Year Ended
December 31,
(Dollars in millions)
Realized gains (losses) from the sale of trading securities . . . . . . . . . . . . . . . . . . . . . . . $— $ (27) $ 4
Net change in gains (losses) from holding trading securities . . . . . . . . . . . . . . . . . . . . . 8 (415) 24
Available-for-Sale Securities
AFS securities are initially measured at fair value and subsequent unrealized gains and losses are recorded as
a component of AOCI, net of deferred taxes, in “Stockholders’ equity.” The following table displays the gross
realized gains, losses and proceeds on sales of AFS securities, exclusive of resecuritizations, for the years
ended December 31, 2006, 2005 and 2004.
2006 2005 2004
For the Year Ended
December 31,
(Dollars in millions)
Gross realized gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 316 $ 343 $ 332
Gross realized losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 91 157
Total proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,966 63,012 6,256
The following tables display the amortized cost, estimated fair values corresponding to unrealized gains and
losses, and additional information regarding unrealized losses by major security type for AFS securities held
as of December 31, 2006 and 2005.
Total
Amortized
Cost
(1)
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Total
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Less Than 12
Consecutive Months
12 Consecutive
Months or Longer
As of December 31, 2006
(Dollars in millions)
Fannie Mae single-class MBS . . . . . . . . $111,521 $1,136 $(1,733) $110,924 $ (35) $ 2,747 $(1,698) $ 62,250
Non-Fannie Mae structured mortgage-
related securities . . . . . . . . . . . . . . . . 97,458 238 (396) 97,300 (49) 15,507 (347) 21,452
Fannie Mae structured MBS. . . . . . . . . . 75,333 514 (1,163) 74,684 (8) 2,987 (1,155) 52,135
Non-Fannie Mae single-class mortgage-
related securities . . . . . . . . . . . . . . . . 27,239 187 (280) 27,146 (1) 400 (279) 16,403
Mortgage revenue bonds . . . . . . . . . . . . 16,956 371 (106) 17,221 (12) 604 (94) 3,266
Other mortgage-related securities
(2)
. . . . . 3,504 246 — 3,750 — — — —
Asset-backed securities . . . . . . . . . . . . . 18,906 12 (4) 18,914 (2) 3,190 (2) 1,753
Corporate debt securities . . . . . . . . . . . . 17,573 22 (1) 17,594 (1) 2,358 — —
Commercial paper. . . . . . . . . . . . . . . . . 10,010 — — 10,010 — — — —
Other non-mortgage-related securities . . . 986 69 — 1,055 — — — —
Total . . . . . . . . . . . . . . . . . . . . . . . . $379,486 $2,795 $(3,683) $378,598 $(108) $27,793 $(3,575) $157,259
F-38
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)