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)
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, | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (Loss) before extraordinary gains (losses)(1) | $ | (72,022 | ) | $ | (58,319 | ) | $ | (2,056 | ) | $ | 4,057 | $ | 6,292 | |||||||
Add: | ||||||||||||||||||||
Total interest expense | 24,845 | 34,341 | 40,185 | 36,875 | 33,339 | |||||||||||||||
Provision (benefit) for federal income taxes | (985 | ) | 13,749 | (3,091 | ) | 166 | 1,277 | |||||||||||||
Losses from partnership investments(2) | 6,735 | 1,554 | 1,005 | 865 | 849 | |||||||||||||||
Capitalized interest | 4 | 20 | 30 | 22 | 11 | |||||||||||||||
Earnings (loss), as adjusted | $ | (41,423 | ) | $ | (8,655 | ) | $ | 36,073 | $ | 41,985 | $ | 41,768 | ||||||||
Fixed charges: | ||||||||||||||||||||
Total interest expense | 24,845 | 34,341 | 40,185 | 36,875 | 33,339 | |||||||||||||||
Capitalized interest | 4 | 20 | 30 | 22 | 11 | |||||||||||||||
Preferred stock dividends and issuance costs at redemption(3) | 2,509 | 1,546 | 320 | 532 | 585 | |||||||||||||||
Total fixed charges including preferred stock dividends and issuance costs at redemption | $ | 27,358 | $ | 35,907 | $ | 40,535 | $ | 37,429 | $ | 33,935 | ||||||||||
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 | |||||||||||||||
Deficiency | $ | 68,781 | $ | 44,562 | 4,462 | |||||||||||||||
(1) | Reflects the adoption of the FASB standard requiring noncontrolling interest to be classified as a separate component of equity. | |
(2) | Includes amortized capitalized interest related to our partnership investments of $11 million, $13 million, $11 million, $10 million and $9 million for the years ended December 31, 2009, 2008, 2007, 2006, and 2005, respectively. | |
(3) | Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods. |