EX-12.1 4 w81665exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
 
FANNIE MAE
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
 
                                         
    For the Year Ended December 31,  
    2010 (3)     2009     2008     2007     2006  
 
Earnings:
                                       
Income (loss) before extraordinary gain (losses)(1)
  $ (14,018 )   $ (72,022 )   $ (58,319 )   $ (2,056 )   $ 4,057  
Add:
                                       
Total interest expense
    137,861       24,845       34,341       40,185       36,875  
Provision (benefit) for federal income taxes
    (82 )     (985 )     13,749       (3,091 )     166  
Losses from partnership investments(2)
    74       6,735       1,554       1,005       865  
Capitalized interest
    —       4       20       30       22  
                                         
Earnings (loss), as adjusted
  $ 123,835     $ (41,423 )   $ (8,655 )   $ 36,073     $ 41,985  
                                         
Fixed charges:
                                       
Total interest expense
    137,861       24,845       34,341       40,185       36,875  
Capitalized interest
    —       4       20       30       22  
                                         
Total fixed charges
    137,861       24,849       34,361       40,215       36,897  
                                         
Ratio of earnings to fixed charges
    0.90:1       —       —       0.90:1       1.14:1  
                                         
Deficiency
  $ 14,026     $ 66,272     $ 43,016     $ 4,142          
                                         
 
 
(1) Reflects the adoption of accounting standard requiring noncontrolling interest to be classified as a separate component of equity.
 
(2) Includes amortized capitalized interest related to our partnership investments of $1 million, $11 million, $13 million, $11 million and $10 million for the years ended December 31, 2010, 2009, 2008, 2007, and 2006, respectively.
 
(3) In 2010, we adopted new accounting standards related to the “Transfers of Financial Assets and Consolidation of Variable Interest Entities” that had a significant impact on the presentation and comparability of our consolidated financial statements due to the consolidation of the substantial majority of our single-class securitization trusts and the elimination of previously recorded deferred revenue from our guaranty arrangements. While some line items in our consolidated statements of operations and balance sheet were not impacted, others were impacted significantly, which reduces the comparability of our results for 2010 with the results in prior years.