Fannie Mae 2006 Annual Report Download - page 320

and that we were unjustly enriched. In particular, plaintiffs contend that, starting in 1969, we misused these
escrow funds and are therefore liable for any economic benefit we received from the use of these funds.
Plaintiffs seek a return of any profits, with accrued interest, earned by us related to the escrow accounts at
issue, as well as attorneys’ fees and costs.
Our motions to dismiss and motion for summary judgment were denied on March 10, 2005. We filed a partial
motion for reconsideration of our motion for summary judgment, which was denied on February 24, 2006.
Plaintiffs have filed an amended complaint and a motion for class certification, which was fully briefed and
remains pending.
Lease Commitments and Purchase Obligations
Certain premises and equipment are leased under agreements that expire at various dates through 2029, none
of which are capital leases. Some of these leases provide for payment by the lessee of property taxes,
insurance premiums, cost of maintenance and other costs. Rental expenses for operating leases were
$42 million, $41 million and $38 million for the years ended December 31, 2006, 2005 and 2004, respectively.
The following table displays the future minimum rental commitments as of December 31, 2006 for all non-
cancelable operating leases.
As of
December 31, 2006
(Dollars in millions)
2007.............................................................. $ 36
2008.............................................................. 26
2009.............................................................. 21
2010.............................................................. 20
2011.............................................................. 20
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Total............................................................ $181
As of December 31, 2006, we had various miscellaneous purchase commitments for services in the aggregate
amount of $85 million.
21. Selected Quarterly Financial Information (Unaudited)
The condensed consolidated financial statements for the quarterly periods in 2006 and 2005 are unaudited and
in the opinion of management include all adjustments, consisting of normal recurring adjustments, necessary
for a fair presentation of our financial position and statements of income. The operating results for the interim
periods are not necessarily indicative of the operating results to be expected for a full year or for other interim
periods.
F-89
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)