EX-12.2 3 w36762exv12w2.htm EX-12.2 exv12w2
 

Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Dollars in millions)
                                         
    For the Year Ended December 31,  
    2006     2005     2004     2003     2002  
Earnings:
                                        
Income before extraordinary gains (losses) and cumulative effect of change in accounting principle, net of taxes
   $ 4,047     $ 6,294     $ 4,975     $ 7,852     $ 3,914  
 
                                        
Add:
                                        
Total interest expense
     36,875       33,339       29,737       29,587       32,498  
Provision for federal income taxes
     166       1,277       1,024       2,434       840  
Losses from partnership investments (1)
     865       849       702       637       509  
Capitalized interest
     22       11       16       19       17  
Minority interest in earnings (losses) of consolidated subsidiaries
     (10 )     2       8       —       —  
 
                              
Earnings, as adjusted
   $ 41,965     $ 41,772     $ 36,462     $ 40,529     $ 37,778  
 
                              
 
                                        
Fixed charges:
                                        
Total interest expense
   $ 36,875     $ 33,339     $ 29,737     $ 29,587     $ 32,498  
Capitalized interest
     22       11       16       19       17  
Preferred stock dividends and issuance costs at redemption (2)
     532       585       199       197       135  
 
                              
 
                                        
Total fixed charges including preferred stock dividends and issuance costs at redemption
   $ 37,429     $ 33,935     $ 29,952     $ 29,803     $ 32,650  
 
                              
 
                                        
Ratio of earnings to combined fixed charges and preferred stock dividends and issuance costs at redemption
     1.12:1       1.23:1       1.22:1       1.36:1       1.16:1  
 
                              
 
(1)   Includes amortized capitalized interest related to our partnership investments of $10 million, $9 million , $5 million, $5 million and $4 million for the years ended December 31, 2006, 2005, 2004, 2003 and 2002 respectively.
 
(2)   Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.