Fannie Mae 2006 Annual Report Download - page 325

Single-Family HCD
Capital
Markets Total
For the Quarter Ended September 30, 2006
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . . . $ 257 $ (81) $ 1,352 $ 1,528
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . . . 1,242 99 (278) 1,063
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . . (101) (2) — (103)
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 — 529 550
Derivatives fair value losses, net . . . . . . . . . . . . . . . . . . . . . . . . — — (3,381) (3,381)
Debt extinguishment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . — — 72 72
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . — (197) — (197)
Fee and other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 71 117 255
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (391) (144) (226) (761)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (142) (3) — (145)
Other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (141) (14) 2 (153)
Income (loss) before federal income taxes and extraordinary
gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812 (271) (1,813) (1,272)
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . . 283 (360) (562) (639)
Income (loss) before extraordinary gains . . . . . . . . . . . . . . . . . . 529 89 (1,251) (633)
Extraordinary gains, net of tax effect . . . . . . . . . . . . . . . . . . . . . — — 4 4
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 529 $ 89 $(1,247) $ (629)
(1)
Includes cost of capital charge.
(2)
Includes intercompany guaranty fee income (expense) allocated to Single-Family and HCD from Capital Markets for
absorbing the credit risk on mortgage loans held in our portfolio.
Single-Family HCD
Capital
Markets Total
For the Quarter Ended December 31, 2006
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . $ 161 $ (94) $1,278 $1,345
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . . . . 1,379 163 (278) 1,264
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . . . (256) (2) — (258)
Investment gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 — 51 75
Derivatives fair value losses, net. . . . . . . . . . . . . . . . . . . . . . . . . — — (668) (668)
Debt extinguishment gains, net. . . . . . . . . . . . . . . . . . . . . . . . . . — — 43 43
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . . . — (286) — (286)
Fee and other income (expense) . . . . . . . . . . . . . . . . . . . . . . . . . 170 141 (77) 234
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (453) (173) (201) (827)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (221) — — (221)
Other expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (178) (133) (1) (312)
Income (loss) before federal income taxes and extraordinary
gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626 (384) 147 389
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . . . 218 (398) (34) (214)
Income before extraordinary gains . . . . . . . . . . . . . . . . . . . . . . . 408 14 181 603
Extraordinary gains, net of tax effect . . . . . . . . . . . . . . . . . . . . . — — 1 1
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 408 $ 14 $ 182 $ 604
(1)
Includes cost of capital charge.
(2)
Includes intercompany guaranty fee income (expense) allocated to Single-Family and HCD from Capital Markets for
absorbing the credit risk on mortgage loans held in our portfolio.
F-94
FANNIE MAE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)