Freddie Mac 2012 Annual Report Download - page 210

FREDDIE MAC
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Year Ended December 31,
2012 2011 2010
(in millions, except share-related amounts)
Interest income
Mortgage loans:
Held by consolidated trusts .......................................................... $ 65,089 $ 77,158 $ 86,698
Unsecuritized ................................................................... 8,960 9,124 8,727
Total mortgage loans ............................................................ 74,049 86,282 95,425
Investments in securities ............................................................. 10,583 12,791 14,375
Other ........................................................................... 86 67 156
Total interest income .............................................................. 84,718 99,140 109,956
Interest expense
Debt securities of consolidated trusts ..................................................... (56,109) (67,119) (75,216)
Other debt ........................................................................ (10,393) (12,869) (16,915)
Total interest expense .............................................................. (66,502) (79,988) (92,131)
Expense related to derivatives ......................................................... (605) (755) (969)
Net interest income ................................................................... 17,611 18,397 16,856
Provision for credit losses .............................................................. (1,890) (10,702) (17,218)
Net interest income (loss) after provision for credit losses ....................................... 15,721 7,695 (362)
Non-interest income (loss)
Gains (losses) on extinguishment of debt securities of consolidated trusts .......................... (58) (219) (164)
Gains (losses) on retirement of other debt ................................................. (77) 44 (219)
Gains (losses) on debt recorded at fair value ............................................... 16 91 580
Derivative gains (losses) ............................................................. (2,448) (9,752) (8,085)
Impairment of available-for-sale securities:
Total other-than-temporary impairment of available-for-sale securities .......................... (1,236) (2,101) (1,778)
Portion of other-than-temporary impairment recognized in AOCI .............................. (932) (200) (2,530)
Net impairment of available-for-sale securities recognized in earnings ......................... (2,168) (2,301) (4,308)
Other gains (losses) on investment securities recognized in earnings .............................. (1,522) (896) (1,252)
Other income ..................................................................... 2,174 2,155 1,860
Non-interest income (loss) .............................................................. (4,083) (10,878) (11,588)
Non-interest expense
Salaries and employee benefits ......................................................... (810) (832) (895)
Professional services ................................................................ (361) (270) (297)
Occupancy expense ................................................................. (57) (62) (64)
Other administrative expenses ......................................................... (333) (342) (341)
Total administrative expenses ........................................................ (1,561) (1,506) (1,597)
Real estate owned operations expense .................................................... (59) (585) (673)
Other expenses .................................................................... (573) (392) (662)
Non-interest expense .................................................................. (2,193) (2,483) (2,932)
Income (loss) before income tax benefit .................................................... 9,445 (5,666) (14,882)
Income tax benefit .................................................................... 1,537 400 856
Net income (loss) .................................................................... 10,982 (5,266) (14,026)
Other comprehensive income (loss), net of taxes and reclassification adjustments:
Changes in unrealized gains (losses) related to available-for-sale securities ......................... 4,769 3,465 13,621
Changes in unrealized gains (losses) related to cash flow hedge relationships ........................ 414 509 673
Changes in defined benefit plans ........................................................ (126) 62 13
Total other comprehensive income (loss), net of taxes and reclassification adjustments ............... 5,057 4,036 14,307
Comprehensive income (loss) ........................................................... 16,039 (1,230) 281
Less: Comprehensive loss attributable to noncontrolling interest ................................. — — 1
Total comprehensive income (loss) attributable to Freddie Mac ................................... $ 16,039 $ (1,230) $ 282
Net income (loss) .................................................................... $ 10,982 $ (5,266) $ (14,026)
Less: Net loss attributable to noncontrolling interest .......................................... — — 1
Net income (loss) attributable to Freddie Mac ................................................ 10,982 (5,266) (14,025)
Preferred stock dividends ............................................................. (7,229) (6,498) (5,749)
Preferred stock dividends — undistributed net worth sweep .................................... (5,827) — —
Net loss attributable to common stockholders ................................................ $ (2,074) $ (11,764) $ (19,774)
Net loss per common share — basic and diluted .............................................. $ (0.64) $ (3.63) $ (6.09)
Weighted average common shares outstanding (in thousands) — basic and diluted ..................... 3,240,028 3,244,896 3,249,369
The accompanying notes are an integral part of these consolidated financial statements.
205 Freddie Mac