Fannie Mae 2014 Annual Report Download - page 307

FANNIE MAE
(In conservatorship)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
F-92
performance reviews of the counterparties that provide products and services for this process. In addition, valuation results
and trend analyses are reviewed regularly by management responsible for valuing and disposing of real estate.
Fair Value of Financial Instruments
The following table displays the carrying value and estimated fair value of our financial instruments as of December 31, 2014
and 2013. The fair value of financial instruments we disclose includes commitments to purchase multifamily and single-
family mortgage loans that we do not record in our consolidated balance sheets. The fair values of these commitments are
included as “Mortgage loans held for investment, net of allowance for loan losses.” The disclosure excludes certain financial
instruments, such as plan obligations for pension and postretirement health care benefits, employee stock option and stock
purchase plans, and also excludes all non-financial instruments. As a result, the fair value of our financial assets and liabilities
does not represent the underlying fair value of our total consolidated assets and liabilities.
As of December 31, 2014
Carrying
Value
Quoted
Price in
Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Netting Adjustment Estimated Fair Value
(Dollars in millions)
Financial assets:
Cash and cash equivalents and restricted
cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 54,565 $ 37,965 $ 16,600 $ — $ — $ 54,565
Federal funds sold and securities
purchased under agreements to resell or
similar arrangements . . . . . . . . . . . . . . . 30,950 — 30,950 — — 30,950
Trading securities. . . . . . . . . . . . . . . . . . . . 31,504 19,466 9,008 3,030 — 31,504
Available-for-sale securities. . . . . . . . . . . . 30,654 — 15,574 15,080 — 30,654
Mortgage loans held for sale . . . . . . . . . . . 331 — 169 169 — 338
Mortgage loans held for investment, net
of allowance for loan losses:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . 239,243 — 29,896 217,064 — 246,960
Of consolidated trusts . . . . . . . . . . . . . 2,779,920 — 2,657,863 183,263 — 2,841,126
Mortgage loans held for investment . . . . . 3,019,163 — 2,687,759 400,327 — 3,088,086
Advances to lenders. . . . . . . . . . . . . . . . . . 5,559 — 5,079 470 — 5,549
Derivative assets at fair value . . . . . . . . . . 1,485 — 6,489 182 (5,186) 1,485
Guaranty assets and buy-ups . . . . . . . . . . . 210 — — 616 — 616
Total financial assets . . . . . . . . . . . . . . . . . $ 3,174,421 $ 57,431 $2,771,628 $ 419,874 $ (5,186) $ 3,243,747
Financial liabilities:
Federal funds purchased and securities
sold under agreements to repurchase . . . $ 50 $ — $ 50 $ — $ — $ 50
Short-term debt:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . 105,012 — 105,022 — — 105,022
Of consolidated trusts . . . . . . . . . . . . . 1,560 — — 1,560 — 1,560
Long-term debt:
Of Fannie Mae . . . . . . . . . . . . . . . . . . . 355,431 — 367,703 982 — 368,685
Of consolidated trusts. . . . . . . . . . . . . . 2,760,152 — 2,815,843 19,334 — 2,835,177
Derivative liabilities at fair value. . . . . . . . 614 — 10,671 137 (10,194) 614
Guaranty obligations . . . . . . . . . . . . . . . . . 382 — — 1,579 — 1,579
Total financial liabilities . . . . . . . . . . . . . . $ 3,223,201 $ — $3,299,289 $ 23,592 $ (10,194) $ 3,312,687