Fannie Mae 2009 Annual Report Download - page 263

FANNIE MAE
(In conservatorship)
Consolidated Statements of Cash Flows
(Dollars in millions)
2009 2008 2007
For the Year Ended December 31,
Cash flows (used in) provided by operating activities:
Net loss . ............................................................... $ (72,022) $ (58,728) $ (2,071)
Reconciliation of net loss to net cash provided by operating activities:
Amortization of investment cost basis adjustments . . . .................................. (687) (400) (391)
Amortization of debt cost basis adjustments . . ....................................... 3,255 8,589 9,775
Provision for credit losses .................................................... 72,626 27,951 4,564
Valuation losses .......................................................... 4,530 13,964 612
Debt extinguishment losses, net ................................................ 325 222 47
Debt foreign currency transaction (gains) losses, net . . .................................. 173 (230) 190
Losses on certain guaranty contracts . ............................................ — — 1,424
Losses from partnership investments . ............................................ 6,735 1,554 1,005
Current and deferred federal income taxes . . . ....................................... (1,919) 12,904 (3,465)
Extraordinary losses, net of tax effect . ............................................ — 409 15
Derivatives fair value adjustments . . . ............................................ (1,105) (1,239) 4,289
Purchases of loans held for sale ................................................ (109,684) (56,768) (34,047)
Proceeds from repayments of loans held for sale ...................................... 2,413 617 594
Net decrease in trading securities, excluding non-cash transfers ............................. 11,976 72,689 62,699
Net change in:
Guaranty assets . . . ..................................................... (1,072) 2,089 (5)
Guaranty obligations ..................................................... (903) (5,312) (630)
Other, net . . .......................................................... (550) (2,458) (1,656)
Net cash (used in) provided by operating activities ...................................... (85,909) 15,853 42,949
Cash flows provided by (used in) investing activities:
Purchases of trading securities held for investment . . . .................................. (48,659) (7,635) —
Proceeds from maturities of trading securities held for investment . . . ......................... 12,918 9,530 —
Proceeds from sales of trading securities held for investment . . ............................. 39,261 2,823 —
Purchases of available-for-sale securities ........................................... (165,103) (147,337) (126,200)
Proceeds from maturities of available-for-sale securities .................................. 48,096 33,369 123,462
Proceeds from sales of available-for-sale securities . . . .................................. 306,598 146,630 76,055
Purchases of loans held for investment ............................................ (52,148) (63,097) (76,549)
Proceeds from repayments of loans held for investment .................................. 57,142 49,328 56,617
Advances to lenders . . ..................................................... (79,163) (81,483) (79,186)
Proceeds from disposition of acquired property ....................................... 22,667 10,905 5,714
Reimbursements to servicers for loan advances ....................................... (27,503) (15,282) (4,585)
Contributions to partnership investments ........................................... (688) (1,507) (3,059)
Proceeds from partnership investments ............................................ 87 1,042 1,043
Net change in federal funds sold and securities purchased under agreements to resell . ............... 4,230 (9,793) (38,926)
Net cash provided by (used in) investing activities ...................................... 117,735 (72,507) (65,614)
Cash flows (used in) provided by financing activities:
Proceeds from issuance of short-term debt . . . ....................................... 1,641,119 1,913,685 1,743,852
Payments to redeem short-term debt . ............................................ (1,773,977) (1,824,511) (1,687,570)
Proceeds from issuance of long-term debt . . . ....................................... 289,864 243,557 193,238
Payments to redeem long-term debt . . ............................................ (257,329) (267,225) (232,978)
Repurchase of common and preferred stock . . ....................................... — — (1,105)
Proceeds from issuance of common and preferred stock .................................. — 7,211 8,846
Payments of cash dividends on senior preferred stock to Treasury . . . ......................... (2,470) (31) —
Payments of cash dividends on common and preferred stock . . ............................. — (1,774) (2,483)
Proceeds from senior preferred stock purchase agreement with Treasury ........................ 59,900 — —
Net change in federal funds purchased and securities sold under agreements to repurchase . . . .......... (54) (266) 1,561
Excess tax benefits from stock-based compensation . . .................................. — — 6
Net cash (used in) provided by financing activities ...................................... (42,947) 70,646 23,367
Net (decrease) increase in cash and cash equivalents ................................... (11,121) 13,992 702
Cash and cash equivalents at beginning of period ....................................... 17,933 3,941 3,239
Cash and cash equivalents at end of period ........................................... $ 6,812 $ 17,933 $ 3,941
Cash paid during the period for:
Interest . ............................................................... $ 26,344 $ 35,959 $ 40,645
Income taxes . . . .......................................................... 876 845 1,888
Non-cash activities:
Securitization-related transfers from mortgage loans held for sale to investments in securities . . . .......... $ 119,151 $ 40,079 $ 27,707
Net transfers of loans held for investment to loans held for sale . ............................. 7,334 (13,523) (4,271)
Net consolidation transfers from investments in securities to mortgage loans held for sale ............... 9,335 (1,429) (260)
Net transfers from available-for-sale securities to mortgage loans held for sale . . .................... 1,918 2,904 514
Transfers from advances to lenders to investments in securities (including transfers to trading securities
of $10,012, $40,660 and $70,156 for 2009, 2008, and 2007, respectively) . . . .................... 77,191 83,534 71,801
Net consolidation-related transfers from investments in securities to mortgage loans held for investment ...... 3,929 (7,983) (7,365)
Net mortgage loans acquired by assuming debt . ....................................... — 167 2,756
Net transfers from mortgage loans to acquired property . .................................. 5,707 4,272 3,025
Transfers to trading securities from the effect of adopting the FASB guidance on the fair value option for
financial instruments . . ..................................................... — 56,217 —
Issuance of senior preferred stock and warrant to purchase common stock to Treasury . . ............... — 4,518 —
See Notes to Consolidated Financial Statements
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