EX-12.2 8 d282546dex122.htm EX-12.2 Ex-12.2

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  
     2011     2010(3)     2009     2008     2007  

Earnings:

           

Income (Loss) before extraordinary gains (losses)(1)

    $ (16,855 )    $ (14,018 )    $ (72,022 )    $ (58,319 )    $ (2,056 ) 

Add:

           

Total interest expense

      123,662        137,861        24,845        34,341        40,185   

Provision (benefit) for federal income taxes

      (90 )      (82 )      (985 )      13,749        (3,091 ) 

Losses (gains) from partnership investments(2)

      (81 )      74        6,735        1,554        1,005   

Capitalized interest

      1        —        4        20        30   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (loss), as adjusted

    $ 106,637      $ 123,835      $ (41,423 )    $ (8,655 )    $ 36,073   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

           

Total interest expense

      123,662        137,861        24,845        34,341        40,185   

Capitalized interest

      1        —        4        20        30   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

      123,663        137,861        24,849        34,361        40,215   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings (loss) to fixed charges

      0.86:1        0.90:1        —        —        0.90:1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Deficiency

    $ 17,026      $ 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, and $11 million for the years ended December 31, 2010, 2009, 2008, and 2007, respectively.

(3) 

Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.

(4) 

In 2010, we adopted 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 2011 and 2010 with the results in prior years.