EX-12.2 15 w72716exv12w2.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,      
    2008     2007     2006     2005     2004  
 
Earnings:
                                        
Income (Loss) before extraordinary gains (losses)
   $ (58,298 )   $ (2,035 )   $ 4,047     $ 6,294     $ 4,975  
 
                                        
Add:
                                        
Total interest expense
     34,341       40,185       36,875       33,339       29,737  
Provision (benefit) for federal income taxes
     13,749       (3,091 )     166       1,277       1,024  
Losses from partnership investments (1)
     1,554       1,005       865       849       702  
Capitalized interest
     20       30       22       11       16  
Minority interest in earnings (losses) of consolidated subsidiaries
     (21 )     (21 )     10       (2 )     (8 )
 
                              
Earnings (loss), as adjusted
   $ (8,655 )   $ 36,073     $ 41,985     $ 41,768     $ 36,446  
 
                              
 
                                        
Fixed charges:
                                        
Total interest expense
   $ 34,341     $ 40,185     $ 36,875     $ 33,339     $ 29,737  
Capitalized interest
     20       30       22       11       16  
Preferred stock dividends and issuance costs at redemption (2)
     1,546       320       532       585       199  
 
                              
 
                                        
Total fixed charges including preferred stock dividends and issuance costs at redemption
   $ 35,907     $ 40,535     $ 37,429     $ 33,935     $ 29,952  
 
                              
 
                                        
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       1.22:1  
 
                              
 
                                        
Deficiency
   $ 44,562     $ 4,462                          
 
(1)   Includes amortized capitalized interest related to our partnership investments of $13 million, $11 million, $10 million, $9 million and $5 million for the years ended December 2008, 2007, 2006, 2005, and 2004, respectively.
 
(2)   Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.