Fannie Mae 2008 Annual Report Download - page 389

The following table displays the carrying value and estimated fair value of our financial instruments as of
December 31, 2008 and 2007.
Carrying
Value
Estimated
Fair Value
Carrying
Value
(1)
Estimated
Fair Value
(1)
2008 2007
As of December 31,
(Dollars in millions)
Financial assets:
Cash and cash equivalents
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,462 $ 18,462 $ 4,502 $ 4,502
Federal funds sold and securities purchased under agreements to
resell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,418 57,420 49,041 49,041
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,806 90,806 63,956 63,956
Available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266,488 266,488 293,557 293,557
Mortgage loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,270 13,458 7,008 7,083
Mortgage loans held for investment, net of allowance for loan
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412,142 406,233 396,516 395,822
Advances to lenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,766 5,412 12,377 12,049
Derivative assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869 869 885 885
Guaranty assets and buy-ups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,688 9,024 10,610 14,258
Total financial assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $872,909 $ 868,172 $838,452 $841,153
Financial liabilities:
Federal funds purchased and securities sold under agreements to
repurchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77 $ 77 $ 869 $ 869
Short-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,991 332,290 234,160 234,368
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 539,402 574,281 562,139 580,333
Derivative liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,715 2,715 2,217 2,217
Guaranty obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,147 90,875 15,393 20,549
Total financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $885,332 $1,000,238 $814,778 $838,336
(1)
Pursuant to our adoption of FSP FIN 39-1, we have reduced “Derivative assets at fair value” and “Derivative liabilities
at fair value” in our consolidated balance sheet as of December 31, 2007.
(2)
Includes restricted cash of $529 million and $561 million as of December 31, 2008 and 2007, respectively.
Notes to Fair Value of Financial Instruments
Cash and Cash Equivalents—The carrying value of cash and cash equivalents is a reasonable estimate of their
approximate fair value.
Federal Funds Sold and Securities Purchased Under Agreements to Resell—The carrying value of our federal
funds sold and securities purchased under agreements to resell approximates the fair value of these instruments
due to their short-term nature, exclusive of dollar roll repurchase transactions. The fair value of our dollar roll
repurchase transactions reflects prices for similar securities in the market.
Trading Securities and Available-for-Sale Securities—Our investments in securities are recognized at fair value
in our consolidated financial statements. Fair values of securities are primarily based on observable market
prices or prices obtained from third parties. Details of these estimated fair values by type are displayed in
“Note 6, Investments in Securities.”
F-111
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)