Fannie Mae 2008 Annual Report Download - page 373

Single-Family HCD
Capital
Markets Total
For the Year Ended December 31, 2006
(Dollars in millions)
Net interest income (expense)
(1)
. . . . . . . . . . . . . . . . . . . . . . . $ 926 $ (331) $ 6,157 $ 6,752
Guaranty fee income (expense)
(2)
. . . . . . . . . . . . . . . . . . . . . . 4,785 562 (1,097) 4,250
Losses on certain guaranty contracts . . . . . . . . . . . . . . . . . . . . (431) (8) — (439)
Trust management income . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 2 — 111
Investment gains (losses), net
(3)
. . . . . . . . . . . . . . . . . . . . . . . 97 — (788) (691)
Fair value losses, net
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (1,744) (1,744)
Debt extinguishment gains, net . . . . . . . . . . . . . . . . . . . . . . . . — — 201 201
Losses from partnership investments . . . . . . . . . . . . . . . . . . . . — (865) — (865)
Fee and other income
(3)
............................. 259 277 372 908
Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,566) (596) (914) (3,076)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . (577) (12) — (589)
Other expenses
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (469) (134) (2) (605)
Income (loss) before federal income taxes and extraordinary
gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,133 (1,105) 2,185 4,213
Provision (benefit) for federal income taxes . . . . . . . . . . . . . . . 1,089 (1,443) 520 166
Income before extraordinary gains . . . . . . . . . . . . . . . . . . . . . 2,044 338 1,665 4,047
Extraordinary gains, net of tax effect. . . . . . . . . . . . . . . . . . . . — — 12 12
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,044 $ 338 $ 1,677 $ 4,059
(1)
Includes cost of capital charge.
(2)
The charge to Capital Markets represent an intercompany guaranty fee expense allocated to Capital Markets from
Single-Family and HCD for absorbing the credit risk on mortgage loans held in our portfolio.
(3)
Certain prior period amounts have been reclassified to conform to the current period presentation in our consolidated
statements of operations.
The following table displays total assets by segment as of December 31, 2008 and 2007.
2008 2007
As of December 31,
(Dollars in millions)
Single-Family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,115 $ 23,356
HCD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,994 15,094
Capital Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877,295 840,939
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $912,404 $879,389
We operate our business solely in the United States, and accordingly, we do not generate any revenue from or
have assets in geographic locations other than the United States.
17. Stockholders’ Equity (Deficit)
Common Stock
Shares of common stock outstanding, net of shares held as treasury stock, totaled 1.1 billion and 974 million
as of December 31, 2008 and 2007, respectively. On May 14, 2008, we received gross proceeds of $2.6 billion
F-95
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)