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SEC Filings

10-Q
FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE filed this Form 10-Q on 08/05/2011
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Table of Contents

FANNIE MAE
(In conservatorship)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(UNAUDITED)
 
Under our segment reporting, the sum of the results for our three business segments does not equal our condensed consolidated statements of operations and comprehensive loss, as we separate the activity related to our consolidated trusts from the results generated by our three segments. Our segment financial results include directly attributable revenues and expenses. Additionally, we allocate to each of our segments: (1) capital using FHFA minimum capital requirements adjusted for over- or under-capitalization; (2) indirect administrative costs; and (3) a provision or benefit for federal income taxes. In addition, we allocate intracompany guaranty fee income as a charge from the Single-Family and Multifamily segments to Capital Markets for managing the credit risk on mortgage loans held by the Capital Markets group. We also include an eliminations/adjustments category to reconcile our business segment results and the activity related to our consolidated trusts to net loss in our condensed consolidated statements of operations and comprehensive loss.
 
The following tables display our segment results for the three and six months ended June 30, 2011 and 2010.
 
                                                 
    For the Three Months Ended June 30, 2011  
          Other Activity/
       
    Business Segments     Reconciling Items        
    Single-
          Capital
    Consolidated
    Eliminations/
    Total
 
    Family     Multifamily     Markets     Trusts(1)     Adjustments(2)     Results  
    (Dollars in millions)  
 
Net interest income (expense)
  $ (680 )   $ (11 )   $ 3,867     $ 1,314     $ 482 (3)   $ 4,972  
Provision for loan losses
    (5,677 )     (125 )                       (5,802 )
                                                 
Net interest income (expense) after provision for loan losses
    (6,357 )     (136 )     3,867       1,314       482       (830 )
Guaranty fee income (expense)
    1,880       216       (391 )     (1,116 )(4)     (539 )(4)     50 (4)
Investment gains (losses), net
    (6 )     1       918       (143 )     (599 )(5)     171  
Net other-than-temporary impairments
                (55 )     (1 )           (56 )
Fair value losses, net
    (3 )           (1,507 )     (72 )     (52 )(6)     (1,634 )
Debt extinguishment gains (losses), net
                (55 )     12             (43 )
Gains from partnership investments
          34                   1       35 (7)
Fee and other income (expenses)
    114       57       109       (63 )     (2 )     215  
Administrative expenses
    (400 )     (64 )     (105 )                 (569 )
Benefit (provision) for guaranty losses
    (737 )     2                         (735 )
Foreclosed property income (expense)
    481       (3 )                       478  
Other income (expenses)
    (77 )     36       (9 )           (17 )     (67 )
                                                 
Income (loss) before federal income taxes
    (5,105 )     143       2,772       (69 )     (726 )     (2,985 )
Benefit (provision) for federal income taxes
    109       (56 )     40                   93  
                                                 
Net income (loss)
    (4,996 )     87       2,812       (69 )     (726 )     (2,892 )
Net income attributable to noncontrolling interest
                            (1 )(8)     (1 )
                                                 
Net income (loss) attributable to Fannie Mae
  $ (4,996 )   $ 87     $ 2,812     $ (69 )   $ (727 )   $ (2,893 )
                                                 
 


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