Freddie Mac 2011 Annual Report Download - page 284

Investments
Single-family
Guarantee Multifamily All Other
Total Segment
Earnings (Loss),
Net of Taxes Reclassifications
(1)
Credit
Guarantee-
related
Adjustments
(4)
Tax-related
Adjustments
Total
Reconciling
Items
Total per
Consolidated
Statements of
Income and
Comprehensive
Income
Reconciliation to Consolidated Statements of
Income and Comprehensive Income
Year Ended December 31, 2009
(in millions)
Net interest income . . . . . . . . . . . $ 8,090 $ 307 $ 856 $ — $ 9,253 $ 7,799 $ 21 $ — $ 7,820 $ 17,073
Provision for credit losses . . . . . . . — (29,102) (574) — (29,676) 140 6 — 146 (29,530)
Non-interest income (loss):
Management and guarantee
income
(3)
. . . . . . . . . . . . . — 3,448 90 — 3,538 440 (945) — (505) 3,033
Net impairment of available-for-sale
securities recognized in
earnings . . . . . . . . . . . . . . (9,870) — (137) — (10,007) (1,190) — — (1,190) (11,197)
Derivative gains (losses) . . . . . . . 4,695 — (27) — 4,668 (6,568) — — (6,568) (1,900)
Gains (losses) on trading
securities . . . . . . . . . . . . . . 4,885 — (3) — 4,882 — — — — 4,882
Gains (losses) on sale of mortgage
loans . . . . . . . . . . . . . . . . 617 — 156 — 773 — (28) — (28) 745
Gains (losses) on mortgage loans
recorded at fair value . . . . . . . (46) — (144) — (190) — — — — (190)
Other non-interest income (loss) . . (774) 721 (471) (3,653) (4,177) (1,011) 7,083 — 6,072 1,895
Non-interest expense:
Administrative expenses . . . . . . . (515) (949) (221) — (1,685) — — — — (1,685)
REO operations expense. . . . . . . — (287) (20) — (307) — — — — (307)
Other non-interest expense . . . . . (33) (4,854) (18) (109) (5,014) — (189) — (189) (5,203)
Income tax (expense) benefit . . . . . (572) 3,573 — (478) 2,523 390 — (2,083) (1,693) 830
Net income (loss) . . . . . . . . . . . . 6,477 (27,143) (513) (4,240) (25,419) — 5,948 (2,083) 3,865 (21,554)
Less: net (income) loss —
noncontrolling interests . . . . . . (1) — 2 — 1 — — — — 1
Net income (loss) attributable to
Freddie Mac . . . . . . . . . . . . . 6,476 (27,143) (511) (4,240) (25,418) — 5,948 (2,083) 3,865 (21,553)
Total other comprehensive income, net
of taxes . . . . . . . . . . . . . . . . 11,329 19 7,292 — 18,640 — — — — 18,640
Total comprehensive income (loss)
attributable to Freddie Mac . . . . . $17,805 $(27,124) $6,781 $(4,240) $ (6,778) $ — $5,948 $(2,083) $ 3,865 $ (2,913)
(1) See “Segment Earnings — Investment Activity-Related Reclassifications” and “— Credit Guarantee Activity-Related Reclassifications” for
information regarding these reclassifications.
(2) See “Segment Earnings — Segment Adjustments” for additional information regarding these adjustments.
(3) Management and guarantee income total per consolidated statements of income and comprehensive income is included in other income on our
GAAP consolidated statements of income and comprehensive income.
(4) Consists primarily of amortization and valuation adjustments pertaining to the guarantee asset and guarantee obligation which are excluded from
Segment Earnings and cash compensation exchanged at the time of securitization, excluding buy-up and buy-down fees, which is amortized into
earnings. These reconciling items exist in periods prior to 2010 as the amendment to the accounting guidance for transfers of financial assets and
consolidation of VIEs was applied prospectively on January 1, 2010.
279 Freddie Mac