Fannie Mae 2009 Annual Report Download - page 326

displays the activity in acquired property and the related valuation allowance for the years ended
December 31, 2009, 2008 and 2007.
Acquired
Property
Valuation
Allowance
(1)
Acquired
Property, Net
(Dollars in millions)
Balance, January 1, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,257 $ (116) $ 2,141
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,131 (18) 5,113
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,535) 291 (3,244)
Write-downs, net of recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (408) (408)
Balance, December 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,853 (251) 3,602
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,853 (75) 10,778
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,666) 664 (6,002)
Write-downs, net of recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (1,460) (1,460)
Balance, December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,040 (1,122) 6,918
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,165 (79) 14,086
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,489) 1,379 (11,110)
Write-downs, net of recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (752) (752)
Balance, December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,716 $ (574) $ 9,142
(1)
Reflects activities in the valuation allowance for acquired properties held primarily by our single-family segment.
We classify as held for use those properties that we do not intend to sell or that are not ready for immediate
sale in their current condition and are reflected in “Other assets” in our consolidated balance sheets. The
following table displays the carrying amount of acquired properties held for use for the years ended
December 31, 2009, 2008 and 2007.
2009 2008 2007
For the Year Ended
December 31,
(Dollars in millions)
Beginning balance, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11 $107 $ 224
Transfers in from held for sale, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 1 4
Transfers to held for sale, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11) (93) (113)
Depreciation and asset write-downs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (4) (8)
Ending balance, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 44 $ 11 $ 107
9. Short-term Borrowings and Long-term Debt
We obtain the funds to finance our mortgage purchases and other business activities primarily by selling debt
securities in the domestic and international capital markets. We issue a variety of debt securities to fulfill our
ongoing funding needs.
F-68
FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)