EX-12.2 11 w77413exv12w2.htm EX-12.2 exv12w2
Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK
DIVIDENDS AND ISSUANCE COST AT REDEMPTION
(Dollars in millions)
                                         
    For the Year Ended December 31,  
    2009     2008     2007     2006     2005  
Earnings:
                                        
Income (Loss) before extraordinary gains (losses)(1)
   $ (72,022 )   $ (58,319 )   $ (2,056 )   $ 4,057     $ 6,292  
 
                                        
Add:
                                        
Total interest expense
     24,845       34,341       40,185       36,875       33,339  
Provision (benefit) for federal income taxes
     (985 )     13,749       (3,091 )     166       1,277  
Losses from partnership investments(2)
     6,735       1,554       1,005       865       849  
Capitalized interest
     4       20       30       22       11  
 
                              
Earnings (loss), as adjusted
   $ (41,423 )   $ (8,655 )   $ 36,073     $ 41,985     $ 41,768  
 
                              
 
                                        
Fixed charges:
                                        
Total interest expense
     24,845       34,341       40,185       36,875       33,339  
Capitalized interest
     4       20       30       22       11  
Preferred stock dividends and issuance costs at redemption(3)
     2,509       1,546       320       532       585  
 
                              
 
                                        
Total fixed charges including preferred stock dividends and issuance costs at redemption
   $ 27,358     $ 35,907     $ 40,535     $ 37,429     $ 33,935  
 
                              
 
                                        
Ratio of earnings (loss) to combined fixed charges and preferred stock dividends and issuance costs at redemption
     —       —       0.89:1       1.12:1       1.23:1  
 
                              
 
                                        
Deficiency
   $ 68,781     $ 44,562       4,462                  
 
                                  
 
(1)   Reflects the adoption of the FASB standard requiring noncontrolling interest to be classified as a separate component of equity.
 
(2)   Includes amortized capitalized interest related to our partnership investments of $11 million, $13 million, $11 million, $10 million and $9 million for the years ended December 31, 2009, 2008, 2007, 2006, and 2005, respectively.
 
(3)   Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.