Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | 2010(1) | 2009 | |||||||||||||||||
Earnings: | |||||||||||||||||||||
Income (loss) before extraordinary gains (losses)(2) | $ | 83,892 | $ | 17,220 | $ | (16,855 | ) | $ | (14,018 | ) | $ | (72,022 | ) | ||||||||
Add: | |||||||||||||||||||||
Total interest expense | 95,145 | 107,689 | 123,662 | 137,861 | 24,845 | ||||||||||||||||
Benefit for federal income taxes(3) | (45,415 | ) | — | (90 | ) | (82 | ) | (985 | ) | ||||||||||||
(Gains) losses from partnership investments(4) | (518 | ) | (120 | ) | (81 | ) | 74 | 6,735 | |||||||||||||
Capitalized interest | 1 | 1 | 1 | — | 4 | ||||||||||||||||
Earnings (loss), as adjusted | $ | 133,195 | $ | 124,790 | $ | 106,637 | $ | 123,835 | $ | (41,423 | ) | ||||||||||
Fixed charges: | |||||||||||||||||||||
Total interest expense | 95,145 | 107,689 | 123,662 | 137,861 | 24,845 | ||||||||||||||||
Capitalized interest | 1 | 1 | 1 | — | 4 | ||||||||||||||||
Preferred stock dividends(5) | 37,864 | 11,603 | 9,665 | 7,749 | 2,509 | ||||||||||||||||
Total fixed charges | $ | 133,010 | $ | 119,293 | $ | 133,328 | $ | 145,610 | $ | 27,358 | |||||||||||
Ratio of earnings to fixed charges | 1.00:1 | 1.05:1 | 0.80:1 | 0.85:1 | — | ||||||||||||||||
(Surplus) deficiency | (185 | ) | (5,497 | ) | 26,691 | 21,775 | 68,781 |
__________
(1) | 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 2013, 2012, 2011 and 2010 with the results in prior years. |
(2) | Reflects the adoption of accounting standard requiring noncontrolling interest to be classified as a separate component of equity. |
(3) | In 2013, we released the substantial majority of the valuation allowance for our net deferred tax assets that resulted in the recognition of a benefit for federal income taxes of $45.4 billion in our consolidated statement of operations and comprehensive income for the year ended December 31, 2013. |
(4) | Includes amortized capitalized interest related to our partnership investments of $1 million and $11 million for the years ended December 31, 2010, and 2009, respectively. |
(5) | Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods. The dividend requirement is calculated by taking the amount of dividend divided by 1 minus our effective income tax rate. Our effective tax rate of (117.8)% was different from the federal statutory rate of 35% for the year ended December 31, 2013 primarily due to the release of the substantial majority of our valuation allowance for our net deferred tax assets. |