Fannie Mae 2011 Annual Report Download - page 117

Segment Results
Table 19 displays our segment results under our current segment reporting presentation for 2011.
Table 19: Business Segment Results
For the Year Ended December 31, 2011
Business Segments Other Activity/Reconciling Items
Single-
Family Multifamily
Capital
Markets
Consolidated
Trusts(1)
Eliminations/
Adjustments(2)
Total
Results
(Dollars in millions)
Net interest (loss) income .................... $ (2,411) $ (38) $13,920 $ 5,765 $ 2,045(3) $ 19,281
Provision for loan losses ..................... (25,623) (291) — — — (25,914)
Net interest (loss) income after provision for loan
losses .................................. (28,034) (329) 13,920 5,765 2,045 (6,633)
Guaranty fee income (expense) ............... 7,507 884 (1,497) (4,486)(4) (2,181)(4) 227(4)
Investment (losses) gains, net ................. (2) 18 3,711 (315) (2,906)(5) 506
Net other-than-temporary impairments ......... — — (306) (2) — (308)
Fair value losses, net ........................ (7) — (6,596) (226) 208(6) (6,621)
Debt extinguishment (losses) gains, net ......... — — (254) 22 — (232)
Gains from partnership investments ............ — 81 — — — 81
(7)
Fee and other income (expense) ............... 579 218 478 (329) (10) 936
Administrative expenses ..................... (1,638) (264) (468) — — (2,370)
(Provision) benefit for guaranty losses .......... (830) 26 — — — (804)
Foreclosed property expense ................. (765) (15) — — — (780)
Other (expense) income ..................... (857) 25 (34) — (81) (947)
(Loss) income before federal income taxes ...... (24,047) 644 8,954 429 (2,925) (16,945)
Benefit (provision) for federal income taxes ..... 106 (61) 45 — — 90
Net (loss) income attributable to Fannie Mae . . $(23,941) $ 583 $ 8,999 $ 429 $(2,925) $(16,855)
(1) Represents activity related to the assets and liabilities of consolidated trusts in our consolidated balance sheets.
(2) Represents the elimination of intercompany transactions occurring between the three business segments and our
consolidated trusts, as well as other adjustments to reconcile to our consolidated results.
(3) Represents the amortization expense of cost basis adjustments on securities that we own in our portfolio that on a GAAP
basis are eliminated.
(4) Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The
adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization
of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee
income is included in fee and other income in our consolidated statements of operations and comprehensive loss.
(5) Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale
securities that are issued by consolidated trusts and retained in the Capital Markets portfolio. The adjustment also
includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio
securitization transactions that do not qualify for sale accounting under GAAP.
(6) Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are retained
in the Capital Markets portfolio.
(7) Gains from partnership investments are included in other expenses in our consolidated statements of operations and
comprehensive loss.
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