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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 05/06/2011
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Table of Contents

FANNIE MAE
(In conservatorship)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(UNAUDITED)
 
                                                 
    For the Three Months Ended March 31, 2010  
    Business Segments     Other Activity/Reconciling Items  
    Single-
          Capital
    Consolidated
    Eliminations/
    Total
 
    Family     Multifamily     Markets     Trusts(1)     Adjustments(2)     Results  
    (Dollars in millions)  
 
Net interest income (expense)
  $ (1,945 )   $ 4     $ 3,057     $ 1,239     $ 434 (3)   $ 2,789  
Benefit (provision) for loan losses
    (11,945 )     6                         (11,939 )
                                                 
Net interest income (expense) after provision for loan losses
    (13,890 )     10       3,057       1,239       434       (9,150 )
Guaranty fee income (expense)
    1,768       194       (279 )     (1,197 )(4)     (432 )(4)     54 (4)
Investment gains (losses), net
    2             792       (155 )     (473 )(5)     166  
Net other-than-temporary impairments
                (236 )                 (236 )
Fair value losses, net
                (1,186 )     (35 )     (484 )(6)     (1,705 )
Debt extinguishment losses, net
                (55 )     (69 )           (124 )
Losses from partnership investments
          (58 )                       (58 )(7)
Fee and other income (expense)
    47       35       104       (7 )           179  
Administrative expenses
    (390 )     (99 )     (116 )                 (605 )
Benefit (provision) for guaranty losses
    (11 )     47                         36  
Foreclosed property income (expense)
    30       (11 )                       19  
Other income (expenses)
    (172 )     (6 )     27             (21 )     (172 )
                                                 
Income (loss) before federal income taxes
    (12,616 )     112       2,108       (224 )     (976 )     (11,596 )
Benefit (provision) for federal income taxes
    51       (13 )     29                   67  
                                                 
Net income (loss)
    (12,565 )     99       2,137       (224 )     (976 )     (11,529 )
Less: Net income attributable to noncontrolling interests
                            (1 )(8)     (1 )
                                                 
Net income (loss) attributable to Fannie Mae
  $ (12,565 )   $ 99     $ 2,137     $ (224 )   $ (977 )   $ (11,530 )
                                                 
 
 
(1) Represents activity related to the assets and liabilities of consolidated trusts in our condensed consolidated balance sheets.
 
(2) Represents the elimination of intercompany transactions occurring between the three business segments and our consolidated trusts, as well as other adjustments to reconcile to our condensed consolidated results.
 
(3) Represents the amortization expense of cost basis adjustments on securities that we own in our portfolio that on a GAAP basis are eliminated.
 
(4) Represents the guaranty fees paid from consolidated trusts to the Single-Family and Multifamily segments. The adjustment to guaranty fee income in the Eliminations/Adjustments column represents the elimination of the amortization of deferred cash fees related to consolidated trusts that were re-established for segment reporting. Total guaranty fee income is included in fee and other income in our condensed consolidated statements of operations and comprehensive loss.
 
(5) Primarily represents the removal of realized gains and losses on sales of Fannie Mae MBS classified as available-for-sale securities that are issued by consolidated trusts and retained in the Capital Markets portfolio. The adjustment also includes the removal of securitization gains (losses) recognized in the Capital Markets segment relating to portfolio securitization transactions that do not qualify for sale accounting under GAAP.
 
(6) Represents the removal of fair value adjustments on consolidated Fannie Mae MBS classified as trading that are retained in the Capital Markets portfolio.
 
(7) Losses from partnership investments are included in other expenses in our condensed consolidated statements of operations and comprehensive loss.
 
(8) Represents the adjustment from equity method accounting to consolidation accounting for partnership investments that are consolidated in our condensed consolidated balance sheets.

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