Fannie Mae 2011 Annual Report Download - page 327

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
All employees, with the exception of those who participated in the Executive Pension Plan, receive a 2%
contribution regardless of employee contributions to this plan. Participants are fully vested in this 2%
contribution after three years of service.
For the years ended December 31, 2011, 2010 and 2009, the maximum employee contribution as established by
the IRS was $16,500, with additional “catch- up” contributions permitted for participants aged 50 and older of
$5,500.
There was no option to invest directly in our common stock for the years ended December 31, 2011, 2010 and
2009. We recorded expense for this plan of $55 million, $47 million and $42 million for the years ended
December 31, 2011, 2010 and 2009, respectively.
Supplemental Retirement Savings Plan
The Supplemental Retirement Savings Plan is an unfunded, nonqualified defined contribution plan. This plan
supplements our Retirement Savings Plan to provide benefits to employees who are not grandfathered under our
defined benefit pension plan and whose annual eligible earnings exceed the IRS annual limit on eligible
compensation for 401(k) plans.
We credit to the plan 8% of a participant’s eligible compensation that exceeds the IRS annual limit of $245,000
in 2011. Eligible compensation consists of base salary plus eligible incentive compensation earned, if any, up to a
combined maximum of two times base salary. The 8% credit consists of (1) a 6% credit that vests immediately,
and (2) a 2% credit that vests after three years of service.
For the year ended December 31, 2011, we recognized expense related to this plan of $1 million; for the years
ended December 31, 2010 and 2009, we recognized expense related to this plan of less than $1 million in each
year.
14. Segment Reporting
Our three reportable segments are: Single-Family, Multifamily, and Capital Markets. We use these three
segments to generate revenue and manage business risk, and each segment is based on the type of business
activities it performs. 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.
Segment Reporting for 2011 and 2010
Our prospective adoption in 2010 of revised accounting guidance on the consolidation of VIE’s and transfers of
financial assets had a significant impact on the presentation and comparability of our consolidated financial
statements due to the consolidation of the substantial majority of our single-class securitization trusts and the
elimination of 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.
Under the current segment reporting, the sum of the results for our three business segments does not equal our
consolidated statements of operations and comprehensive loss, as we separate the activity related to our
consolidated trusts from the results generated by our three segments. In addition, 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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