Freddie Mac 2011 Annual Report Download - page 234

Our consolidation determination took into consideration the specific facts and circumstances of our involvement with
each of these entities. As a result, we have concluded that we are the primary beneficiary of certain Other Guarantee
Transactions with underlying assets totaling $12.9 billion and $15.8 billion at December 31, 2011 and 2010, respectively.
For those Other Guarantee Transactions that we do consolidate, the investors in these securities have recourse only to the
assets of those VIEs.
Consolidated VIEs
The table below represents the carrying amounts and classification of the assets and liabilities of consolidated VIEs
on our consolidated balance sheets.
Table 3.1 — Assets and Liabilities of Consolidated VIEs
Consolidated Balance Sheets Line Item December 31, 2011 December 31, 2010
(in millions)
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2 $ 1
Restricted cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,675 7,514
Federal funds sold and securities purchased under agreements to resell . . . . . . . . . . . . . . . . . . . . . . . . — 29,350
Mortgage loans held-for-investment by consolidated trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,564,131 1,646,172
Accrued interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,242 6,895
Real estate owned, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 118
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,083 6,001
Total assets of consolidated VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,604,193 $1,696,051
Accrued interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,943 $ 6,502
Debt securities of consolidated trusts held by third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,471,437 1,528,648
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 172
Total liabilities of consolidated VIEs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,477,383 $1,535,322
VIEs for which We are not the Primary Beneficiary
The table below represents the carrying amounts and classification of the assets and liabilities recorded on our
consolidated balance sheets related to our variable interests in non-consolidated VIEs, as well as our maximum exposure
to loss as a result of our involvement with these VIEs. Our involvement with VIEs for which we are not the primary
beneficiary generally takes one of two forms: (a) purchasing an investment in these entities; or (b) providing a guarantee
to these entities. Our maximum exposure to loss for those VIEs in which we have purchased an investment is calculated
as the maximum potential charge that we would recognize in earnings if that investment were to become worthless. This
amount does not include other-than-temporary impairments or other write-downs that we previously recognized through
earnings. Our maximum exposure to loss for those VIEs for which we have provided a guarantee represents the
contractual amounts that could be lost under the guarantees if counterparties or borrowers defaulted, without consideration
of possible recoveries under credit enhancement arrangements. We do not believe the maximum exposure to loss disclosed
in the table below is representative of the actual loss we are likely to incur, based on our historical loss experience and
after consideration of proceeds from related collateral liquidation, including possible recoveries under credit enhancement
arrangements.
229 Freddie Mac