Fannie Mae 2011 Annual Report Download - page 115

nationwide, and at what pace, or the impact on housing prices if the program had not been put in place. As a
result, the amounts we discuss above are not intended to measure how much the program is costing us in
comparison to what it would have cost us if we did not have the program at all. See “Risk Factors” for a
discussion of how efforts we may undertake in support of the housing market may affect us.
BUSINESS SEGMENT RESULTS
We provide a more complete description of our business segments in “Business–Business Segments.” Results of
our three business segments are intended to reflect each segment as if it were a stand-alone business. We are
working on reorganizing our company by function rather than by business in order to improve our operational
efficiencies and effectiveness. In future periods, we may change some of our management reporting and how we
report our business segment results. We describe the management reporting and allocation process used to
generate our segment results in “Note 14, Segment Reporting.” In this section, we discuss changes to our
presentation for reporting results for our three business segments, Single-Family, Multifamily and Capital
Markets, which have been revised due to our prospective adoption of the revised accounting guidance in 2010 on
the consolidation of VIE’s and transfers of financial assets. We then display our segment results for 2011, 2010
and 2009, in the tables below and provide a comparative discussion of these results. This section should be read
together with our comparative discussion of our consolidated results of operations in “Consolidated Results of
Operations.” See “Note 14, Segment Reporting” for a reconciliation of our segment results to our consolidated
results.
Current Segment Reporting Presentation
Our prospective adoption of the consolidation accounting guidance in 2010 had a significant impact on the
presentation and comparability of our consolidated financial statements because we consolidated the substantial
majority of our single-class securitization trusts and eliminated previously recorded deferred revenue from our
guaranty arrangements. We continue to manage Fannie Mae based on the same three business segments;
however, effective in 2010 we changed the presentation of segment financial information that is currently
evaluated by management.
While some line items in our segment results were not impacted by either the change from the consolidation
accounting guidance or changes to our segment presentation, others were impacted materially, which reduces the
comparability of our 2011 and 2010 segment results with 2009. We have not restated results prior to 2010 nor
have we presented 2011 and 2010 results under the old presentation because we determined that it was
impracticable to do so; therefore, our segment results reported in 2011 and 2010 are not comparable with years
prior to 2010. See “Note 1, Summary of Significant Accounting Policies” for additional information regarding
the impact upon adoption.
Under our current segment reporting structure, the sum of the results for our three business segments does not
equal our consolidated results of operations as we separate the activity related to our consolidated trusts from the
results generated by our three segments. In addition, because we apply accounting methods that differ from our
consolidated results for segment reporting purposes, we include an eliminations/adjustments category to
reconcile our business segment results and the activity related to our consolidated trusts to our consolidated
statements of operations and comprehensive loss.
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