Freddie Mac 2008 Annual Report Download - page 187

FREDDIE MAC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
Shares Amount Shares Amount Shares Amount
2008 2007 2006
Year Ended December 31,
(in millions)
Senior preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . .......................... — $ — — $ — — $ —
Senior preferred stock issuance . . . . . . . . .......................... 1 1,000 — — — —
Increase in liquidation preference . . . . . . .......................... — 13,800 — — — —
Senior preferred stock, end of year ................................. 1 14,800 — — — —
Preferred stock, at redemption value
Balance, beginning of year . . . . . . . . . . . .......................... 464 14,109 132 6,109 92 4,609
Preferred stock issuances . . . . . . . . . . . . .......................... — — 344 8,600 40 1,500
Preferred stock redemptions . . . . . . . . . . .......................... — — (12) (600) — —
Preferred stock, end of year ...................................... 464 14,109 464 14,109 132 6,109
Common stock, par value
Balance, beginning of year . . . . . . . . . . . .......................... 726 152 726 152 726 152
Adjustment to par value ....................................... — (152) — — — —
Common stock, end of year ...................................... 726 — 726 152 726 152
Additional paid-in capital
Balance, beginning of year . . . . . . . . . . . .......................... 871 962 924
Stock-based compensation . . . . . . . . . . . .......................... 74 81 60
Income tax benefit from stock-based compensation .................... (16) — 9
Preferred stock issuance costs . . . . . . . . . .......................... — (116) (15)
Common stock issuances . . . . . . . . . . . . .......................... (66) (42) (15)
Real Estate Investment Trust, or REIT, preferred stock repurchase .......... 4 (14) (1)
Adjustment to common stock par value . . .......................... 152 — —
Common stock warrant issuance . . . . . . . .......................... 2,304 — —
Commitment from the U.S. Department of the Treasury . ................ (3,304) — —
Additional paid-in capital, end of year .............................. 19 871 962
Retained earnings (accumulated deficit)
Balance, beginning of year . . . . . . . . . . . .......................... 26,909 31,372 30,638
Cumulative effect of change in accounting principle, net of taxes . .......... 1,023 181 (13)
Balance, beginning of year, as adjusted . . .......................... 27,932 31,553 30,625
Net income (loss) . .......................................... (50,119) (3,094) 2,327
Senior preferred stock dividends declared . .......................... (172) — —
Preferred stock dividends declared . . . . . . .......................... (503) (398) (270)
Common stock dividends declared . . . . . . .......................... (329) (1,152) (1,310)
Retained earnings (accumulated deficit), end of year ..................... (23,191) 26,909 31,372
AOCI, net of taxes
Balance, beginning of year . . . . . . . . . . . .......................... (11,143) (8,451) (9,352)
Cumulative effect of change in accounting principle, net of taxes . .......... (850) — —
Balance, beginning of year, as adjusted . . .......................... (11,993) (8,451) (9,352)
Changes in unrealized gains (losses) related to available-for-sale securities, net
of reclassification adjustments . . . . . . . .......................... (20,616) (3,708) (267)
Changes in unrealized gains (losses) related to cash flow hedge relationships,
net of reclassification adjustments . . . . .......................... 377 973 1,254
Changes in defined benefit plans . . . . . . . .......................... (125) 43 (2)
Change in other comprehensive income (loss), net of taxes, net of
reclassification adjustments . . . . . . . . . .......................... (20,364) (2,692) 985
Adjustment to initially apply Statement of Financial Accounting Standard
No. 158, net of tax......................................... — — (84)
AOCI, net of taxes, end of year ................................... (32,357) (11,143) (8,451)
Treasury stock, at cost
Balance, beginning of year . . . . . . . . . . . .......................... 80 (4,174) 65 (3,230) 33 (1,280)
Common stock issuances . . . . . . . . . . . . .......................... (1) 63 (1) 56 (1) 50
Common stock repurchases . . . . . . . . . . .......................... — — 16 (1,000) 33 (2,000)
Treasury stock, end of year ...................................... 79 (4,111) 80 (4,174) 65 (3,230)
Total stockholders’ equity (deficit) ................................. $(30,731) $26,724 $26,914
Comprehensive income (loss)
Net income (loss) . .......................................... $(50,119) $ (3,094) $ 2,327
Changes in other comprehensive income (loss), net of taxes, net of
reclassification adjustments . . . . . . . . . .......................... (20,364) (2,692) 985
Total comprehensive income (loss) ................................. $(70,483) $ (5,786) $ 3,312
The accompanying notes are an integral part of these financial statements.
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