Freddie Mac 2008 Annual Report Download - page 213

Consolidated VIEs
Table 4.1 represents the carrying amounts and classification of the consolidated assets and liabilities of VIEs on our
consolidated balance sheets.
Table 4.1 — Assets and Liabilities of Consolidated VIEs
Consolidated Balance Sheets Line Item 2008 2007
December 31,
(in millions)
Cash and cash equivalents . . ..................................................................... $ 12 $ 41
Accounts and other receivables, net . . ............................................................... 137 153
Total assets of consolidated VIEs . . ............................................................... $149 $194
Other liabilities . . . ............................................................................ $ 34 $ 43
Total liabilities of consolidated VIEs............................................................... $ 34 $ 43
VIEs Not Consolidated
LIHTC Partnerships
At both December 31, 2008 and 2007, we had unconsolidated investments in 189 LIHTC partnerships, in which we had
a significant variable interest. The size of these partnerships at December 31, 2008 and 2007, as measured in total assets,
was $10.5 billion and $10.3 billion, respectively. These partnerships are accounted for using the equity method, as described
in “NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.” Our equity investments in these partnerships
were $3.3 billion and $3.7 billion as of December 31, 2008 and 2007 and are included in low-income housing tax credit
partnerships equity investments on our consolidated balance sheets. As a limited partner, our maximum exposure to loss
equals the undiscounted book value of our equity investment. At December 31, 2008 and 2007, our maximum exposure to
loss on unconsolidated LIHTC partnerships, in which we had a significant variable interest, was $3.3 billion and $3.7 billion,
respectively. Our investments in unconsolidated LIHTC partnerships are funded through non-recourse non-interest bearing
notes payable recorded within other liabilities on our consolidated balance sheets. We had $347 million and $825 million of
these notes payable outstanding at December 31, 2008 and 2007.
Table 4.2 — Significant Variable Interests in LIHTC Partnerships
2008 2007
December 31,
(in millions)
Maximum exposure to loss . ................................................................... $3,336 $3,693
Non-recourse non-interest bearing notes payable, net ................................................... 347 825
210 Freddie Mac