Freddie Mac 2011 Annual Report Download - page 320

QUARTERLY SELECTED FINANCIAL DATA
(UNAUDITED)
1Q 2Q 3Q 4Q Full-Year
2011
(in millions, except share-related amounts)
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,540 $ 4,561 $ 4,613 $ 4,683 $ 18,397
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,989) (2,529) (3,606) (2,578) (10,702)
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,252) (3,857) (4,798) (971) (10,878)
Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (697) (546) (687) (553) (2,483)
Income tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 232 56 38 400
Net income (loss) attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 676 $(2,139) $(4,422) $ 619 $ (5,266)
Net loss attributable to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (929) $(3,756) $(6,040) $(1,039) $(11,764)
Net loss per common share:
(1)
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.29) $ (1.16) $ (1.86) $ (0.32) $ (3.63)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.29) $ (1.16) $ (1.86) $ (0.32) $ (3.63)
1Q 2Q
(2)
3Q 4Q Full-Year
2010
(in millions, except share-related amounts)
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,125 $ 4,136 $ 4,279 $ 4,316 $ 16,856
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,396) (5,029) (3,727) (3,066) (17,218)
Non-interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,854) (3,627) (2,646) (461) (11,588)
Non-interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (667) (479) (828) (958) (2,932)
Income tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 286 411 56 856
Net (income) loss attributable to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . 1 — — — 1
Net loss attributable to Freddie Mac . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(6,688) $(4,713) $(2,511) $ (113) $(14,025)
Net loss attributable to common stockholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(7,980) $(6,009) $(4,069) $(1,716) $(19,774)
Net loss per common share:
(1)
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2.45) $ (1.85) $ (1.25) $ (0.53) $ (6.09)
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (2.45) $ (1.85) $ (1.25) $ (0.53) $ (6.09)
(1) Earnings (loss) per common share is computed independently for each of the quarters presented. Due to the use of weighted average common shares
outstanding when calculating earnings (loss) per share, the sum of the four quarters may not equal the full-year amount. Earnings (loss) per common
share amounts may not recalculate using the amounts shown in this table due to rounding.
(2) For a discussion of an error identified during the three months ended June 30, 2010, see “MD&A — CONSOLIDATED RESULTS OF
OPERATIONS — Provision for Credit Losses.”
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that the
information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified by the SEC’s rules and forms and that such information is
accumulated and communicated to management of the company, including the company’s Chief Executive Officer and
Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing our
disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and
operated, can provide only reasonable assurance of achieving the desired control objectives, and we must apply judgment
in implementing possible controls and procedures.
Management, including the company’s Chief Executive Officer and Chief Financial Officer, conducted an evaluation
of the effectiveness of our disclosure controls and procedures as of December 31, 2011. As a result of management’s
evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures
were not effective as of December 31, 2011, at a reasonable level of assurance due to the two material weaknesses in our
internal control over financial reporting discussed below. For additional information related to these material weaknesses,
see “Management’s Report on Internal Control Over Financial Reporting.”
Our disclosure controls and procedures did not adequately ensure the accumulation and communication to
management of information known to FHFA that is needed to meet our disclosure obligations under the federal securities
laws. We have not been able to update our disclosure controls and procedures to provide reasonable assurance that
315 Freddie Mac