Freddie Mac 2009 Annual Report Download - page 211

FREDDIE MAC
CONSOLIDATED STATEMENTS OF OPERATIONS
2009 2008 2007
Year Ended December 31,
(in millions, except share-related amounts)
Interest income
Investments in securities . . ......................................................... $ 33,290 $ 35,067 $ 36,587
Mortgage loans . . .............................................................. 6,815 5,369 4,449
Other:
Cash and cash equivalents ........................................................ 193 618 594
Federal funds sold and securities purchased under agreements to resell ........................... 48 423 1,280
Total other .................................................................. 241 1,041 1,874
Total interest income .......................................................... 40,346 41,477 42,910
Interest expense
Short-term debt . . .............................................................. (2,234) (6,800) (8,916)
Long-term debt . . .............................................................. (19,916) (26,532) (29,148)
Total interest expense on debt . .................................................... (22,150) (33,332) (38,064)
Due to Participation Certificate investors . ............................................... — — (418)
Total interest expense . . ......................................................... (22,150) (33,332) (38,482)
Expense related to derivatives . . . .................................................... (1,123) (1,349) (1,329)
Net interest income................................................................ 17,073 6,796 3,099
Non-interest income (loss)
Management and guarantee income (includes interest on guarantee asset of $923, $1,121 and $549, respectively). . . 3,033 3,370 2,635
Gains (losses) on guarantee asset . .................................................... 3,299 (7,091) (1,484)
Income on guarantee obligation . . .................................................... 3,479 4,826 1,905
Derivative gains (losses) . . ......................................................... (1,900) (14,954) (1,904)
Gains (losses) on investments:
Impairment-related:
Total other-than-temporary impairment of available-for-sale securities .......................... (23,125) (17,682) (365)
Portion of other-than-temporary impairment recognized in AOCI . . ........................... 11,928 — —
Net impairment of available-for-sale securities recognized in earnings . . ...................... (11,197) (17,682) (365)
Other gains (losses) on investments . . . ............................................... 5,841 1,574 659
Total gains (losses) on investments .................................................... (5,356) (16,108) 294
Gains (losses) on debt recorded at fair value.............................................. (404) 406 —
Gains (losses) on debt retirement . .................................................... (568) 209 345
Recoveries on loans impaired upon purchase . . . .......................................... 379 495 505
Foreign-currency gains (losses), net ................................................... — — (2,348)
Low-income housing tax credit partnerships .............................................. (4,155) (453) (469)
Trust management income (expense)................................................... (761) (70) 18
Other income .................................................................. 222 195 228
Non-interest income (loss) ........................................................... (2,732) (29,175) (275)
Non-interest expense
Salaries and employee benefits . . .................................................... (912) (828) (828)
Professional services ............................................................. (310) (262) (392)
Occupancy expense .............................................................. (68) (67) (64)
Other administrative expenses . . . .................................................... (361) (348) (390)
Total administrative expenses . . .................................................... (1,651) (1,505) (1,674)
Provision for credit losses . ......................................................... (29,530) (16,432) (2,854)
Real estate owned operations expense . . . ............................................... (307) (1,097) (206)
Losses on certain credit guarantees .................................................... — (17) (1,988)
Losses on loans purchased ......................................................... (4,754) (1,634) (1,865)
Securities administrator loss on investment activity ......................................... — (1,082) —
Other expenses . . . .............................................................. (483) (418) (226)
Non-interest expense ............................................................... (36,725) (22,185) (8,813)
Loss before income tax benefit (expense) . . ............................................... (22,384) (44,564) (5,989)
Income tax benefit (expense) ......................................................... 830 (5,552) 2,887
Net loss ....................................................................... (21,554) (50,116) (3,102)
Less: Net (income) loss attributable to noncontrolling interest .................................. 1 (3) 8
Net loss attributable to Freddie Mac .................................................... $ (21,553) $ (50,119) $ (3,094)
Preferred stock dividends and issuance costs on redeemed preferred stock .......................... (4,105) (675) (404)
Amount allocated to participating security option holders ..................................... — (1) (5)
Net loss attributable to common stockholders ............................................... $ (25,658) $ (50,795) $ (3,503)
Loss per common share:
Basic ....................................................................... $ (7.89) $ (34.60) $ (5.37)
Diluted . . . ................................................................... $ (7.89) $ (34.60) $ (5.37)
Weighted average common shares outstanding (in thousands):
Basic ....................................................................... 3,253,836 1,468,062 651,881
Diluted . . . ................................................................... 3,253,836 1,468,062 651,881
Dividends per common share ......................................................... $ — $ 0.50 $ 1.75
The accompanying notes are an integral part of these financial statements.
208 Freddie Mac