Fannie Mae and Freddie Mac continued to post record-breaking earnings during the second quarter of 2002, and both GSEs continued to play down the value of reporting financial results under generally accepted accounting principles, or GAAP. Fannie and Freddie have substituted “operating net income” or “operating earnings” for GAAP reporting of net income in an effort to minimize the impact of reporting unrealized gains and losses attributable to derivatives and hedging activities under FAS