Freddie Mac 2011 Annual Report Download - page 210

FREDDIE MAC
CONSOLIDATED STATEMENTS OF CASH FLOWS
2011 2010 2009
Year Ended December 31,
(in millions)
Cash flows from operating activities
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (5,266) $ (14,026) $ (21,554)
Adjustments to reconcile net loss to net cash provided by operating activities:
Derivative losses (gains) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,721 3,591 (2,046)
Asset related amortization — premiums, discounts, and basis adjustments. . . . . . . . . . . . . . . 2,063 326 163
Debt related amortization — premiums and discounts on certain debt securities and basis
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,629) 1,127 3,959
Net discounts paid on retirements of other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (713) (1,959) (4,303)
Net premiums received from issuance of debt securities of consolidated trusts. . . . . . . . . . . . 4,091 3,888 —
Losses on extinguishment of debt securities of consolidated trusts and other debt . . . . . . . . . 175 383 568
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,702 17,218 29,530
Losses on investment activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,368 5,542 5,356
(Gains) losses on debt recorded at fair value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (91) (580) 404
Deferred income tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (117) (670) (670)
Purchases of held-for-sale mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,550) (10,330) (101,976)
Sales of mortgage loans acquired as held-for-sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,027 6,728 88,094
Repayments of mortgage loans acquired as held-for-sale . . . . . . . . . . . . . . . . . . . . . . . . . . 54 21 3,050
Change in:
Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 651 832 (1,193)
Accrued interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,080) (1,700) (1,324)
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (281) 662 312
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,805) (233) 2,918
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,320 10,820 1,288
Cash flows from investing activities
Purchases of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (47,977) (55,509) (250,411)
Proceeds from sales of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,734 17,771 153,093
Proceeds from maturities of trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,545 40,389 69,025
Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,171) (6,542) (15,346)
Proceeds from sales of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,643 2,645 22,259
Proceeds from maturities of available-for-sale securities. . . . . . . . . . . . . . . . . . . . . . . . . . . 34,316 44,398 86,702
Purchases of held-for-investment mortgage loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44,129) (68,180) (23,606)
Repayments of mortgage loans acquired as held-for-investment . . . . . . . . . . . . . . . . . . . . . 369,981 425,298 6,862
(Increase) decrease in restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,952) 7,399 426
Net proceeds from (payments of) mortgage insurance and acquisitions and dispositions of real
estate owned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,665 13,093 (4,690)
Net decrease (increase) in federal funds sold and securities purchased under agreements to
resell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,480 (32,023) 3,150
Derivative premiums and terminations and swap collateral, net . . . . . . . . . . . . . . . . . . . . . . (4,447) (3,075) 99
Purchase of noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (23) —
Net cash provided by investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373,688 385,641 47,563
Cash flows from financing activities
Proceeds from issuance of debt securities of consolidated trusts held by third parties . . . . . . . 96,042 96,253 —
Repayments of debt securities of consolidated trusts held by third parties . . . . . . . . . . . . . . . (436,320) (461,084) —
Proceeds from issuance of other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,024,323 1,115,097 1,333,859
Repayments of other debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,078,050) (1,180,935) (1,395,806)
Increase in liquidation preference of senior preferred stock . . . . . . . . . . . . . . . . . . . . . . . . 7,971 12,500 36,900
Repurchase of REIT preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (100) —
Payment of cash dividends on senior preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,495) (5,749) (4,105)
Excess tax benefits associated with stock-based awards . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1
Payments of low-income housing tax credit partnerships notes payable . . . . . . . . . . . . . . . . (50) (115) (343)
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (392,578) (424,132) (29,494)
Net (decrease) increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,570) (27,671) 19,357
Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,012 64,683 45,326
Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,442 $ 37,012 $ 64,683
Supplemental cash flow information
Cash paid (received) for:
Debt interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 84,370 $ 95,468 $ 25,169
Net derivative interest carry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,791 4,305 2,274
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) (848) (472)
Non-cash investing and financing activities:
Held-for-sale mortgage loans securitized and retained as trading and available-for-sale
securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,088
Underlying mortgage loans related to guarantor swap transactions . . . . . . . . . . . . . . . . . . . . . 280,621 324,004 —
Debt securities of consolidated trusts held by third parties established for guarantor swap
transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,621 324,004 —
Transfers from held-for-investment mortgage loans to held-for-sale mortgage loans . . . . . . . . . . — 196 435
Transfers from held-for-sale mortgage loans to held-for-investment mortgage loans . . . . . . . . . . — — 10,336
The accompanying notes are an integral part of these consolidated financial statements.
205 Freddie Mac