Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Dollars in millions)
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Dollars in millions)
For the Year Ended December 31, | |||||||||||
2004 | 2003 | 2002 | |||||||||
(Restated) | (Restated) | ||||||||||
Earnings: | |||||||||||
Income before extraordinary gains (losses) and cumulative effect of change in accounting principle, net of taxes | $ | 4,975 | $ | 7,852 | $ | 3,914 | |||||
Add: | |||||||||||
Total interest expense | 29,737 | 29,587 | 32,498 | ||||||||
Provision for federal income taxes | 1,024 | 2,434 | 840 | ||||||||
Loss from partnership investments (1) | 702 | 637 | 509 | ||||||||
Capitalized interest | 16 | 19 | 17 | ||||||||
Minority interest in earnings of consolidated subsidiaries | 8 | — | — | ||||||||
Earnings, as adjusted | $ | 36,462 | $ | 40,529 | $ | 37,778 | |||||
Fixed charges: | |||||||||||
Total interest expense | $ | 29,737 | $ | 29,587 | $ | 32,498 | |||||
Capitalized interest | 16 | 19 | 17 | ||||||||
Preferred stock dividends and issuance costs at redemption(2) | 199 | 197 | 135 | ||||||||
Fixed charges including preferred stock dividends and issuance costs at redemption | $ | 29,952 | $ | 29,803 | $ | 32,650 | |||||
Ratio of earnings to combined fixed charges and preferred dividends and issuance costs at redemption | 1.22:1 | 1.36:1 | 1.16:1 | ||||||||
(1) | Includes amortized capitalized interest related to low income housing tax credit partnerships of $5 million, $5 million and $4 million for the years ended December 31, 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. |