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Drill Down on USA Inc. Periodic Large One-Time Charges

1
Entitlement Spending
Medicaid (-$273B Net Loss*)
Medicare (-$272B Net Loss*1)
Unemployment Benefits (-$115B Net Loss*)
Social Security (-$75B Net Loss*1)

2
Rising Debt Level & Interest Payments
Debt Level ($9T Outstanding)
Effective Interest Rates (2.2%)
Debt Composition

3
Periodic Large One-Time Charges
TARP ($26B Net Profit*2)
Fannie Mae / Freddie Mac (-$41B Net Loss*)
ARRA (-$137B Net Loss*)

Note: *denotes F2010 net income / net loss of respective programs, data per White House OMB. 1) Medicare and Social Security net loss excludes Trust Fund interest income. 2) TARP net loss includes proceeds from sale of warrants. TARP is Troubled Asset Relief Program; ARRA is American Recovery & Reinvestment Act programs.
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 177

One-Time Charges: Unusually High in F2009 & F2010 with Financial + Economic Crisis

Net One-Time Charges to USA Inc. ($B) | F2008 | F2009 | F2010 | F2011 YTD* | Net Sum of 4 Years
---|---|---|---|---|---
Government-Sponsored Enterprises (GSEs) | $14 | $97 | $41 | -- | $152
Fannie Mae | -- | 60 | 23 | -- | 83
Freddie Mac | $14 | 37 | 18 | -- | 69
Troubled Asset Relief Program (TARP)* | -- | $261 | -$26 | -$23 | $213
Banks | -- | 134 | -85 | -28 | 21
Automakers | -- | 78 | -6 | -14 | 58
AIG | -- | 49 | -- | 20 | 69
Individual Homeowners | -- | 0 | 39 | -1 | 38
Other Financial Institutions | -- | -- | 22 | -- | 22
Consumers & Small Businesses | -- | -- | 4 | -- | 4
American Recovery and Reinvestment Act (ARRA)** | -- | $40 | $137 | -- | $177
Education | -- | 21 | 50 | -- | 71
Nutrition Assistance | -- | 5 | 11 | -- | 16
Transportation | -- | 4 | 15 | -- | 19
Tax Credits | -- | 2 | 33 | -- | 35
Energy | -- | 1 | 5 | -- | 6
Other | -- | 7 | 23 | -- | 30
Net Total One-Time Charges ($B) | $14 | $398 | $152 | -$23 | $542

Note: Federal fiscal year ends in September. *TARP one-time charges include repayments & dividends; F2011 TARP data as of 2/11, per US Treasury; F2011 YTD GSE & ARRA data not available. **ARRA one-time charges exclude funds used by entitlement programs such as Social Security / Medicare / Medicaid / Unemployment. Source: Congressional Budget Office, Dept of Treasury.
KP
CB www.kpcb.com
USA Inc. | Income Statement Drilldown 178

HOUSE_OVERSIGHT_020930