Freddie Mac 2004 Annual Report Download - page 194

Table 5.5 presents the changes in AOCI, net of taxes, related to available-for-sale securities. The Net
unrealized holding (losses) gains, net of tax (beneÑt) expense line represents the net fair value adjustments
recorded on available-for-sale securities throughout the year after the eÅects of the company's statutory tax
rate of 35 percent. The Net reclassiÑcation adjustment for realized (gains) losses included in net income, net
of tax (expense) represents the amount of those fair value adjustments, after the eÅects of the company's
statutory tax rate of 35 percent, that have been recognized in earnings due to a sale of an available-for-sale
security or the recognition of an impairment loss. See ""NOTE 1: SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES'' for further information regarding the component of AOCI related to available-
for-sale securities.
Table 5.5 Ì AOCI, Net of Taxes, Related to Available-For-Sale Securities
Year Ended December 31,
2004 2003 2002
(dollars in millions)
Beginning balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 6,349 $12,217 $ 4,200
Net unrealized holding (losses) gains, net of tax (beneÑt) expense of
$(920), $(3,107) and $4,583, respectivelyÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,709) (5,770) 8,512
Net reclassiÑcation adjustment for realized (gains) losses included in
net income, net of tax (expense) of $(162), $(53) and $(267),
respectively(1)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (301) (98) (495)
Ending balance ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4,339 $ 6,349 $12,217
(1) Includes impairment losses on available-for-sale securities, where the decline in fair value is considered to be other than temporary,
of $72 million, $438 million and $422 million, net of tax for the years ended December 31, 2004, 2003 and 2002, respectively.
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