Federal National Mortgage Association 10K 2007 Annual report | FNMA Filing

Content analysis

Positive
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Uncertain
Constraining
Legalese
Litigous
Readability	H.S. sophomore Avg

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	For the Year Ended December 31,
	2007			2006		2005			2004			2003

Earnings:
Income (Loss) before extraordinary gains (losses) and cumulative effect of change in accounting principle, net of taxes	$	(2,035	)	$	4,047	$	6,294		$	4,975		$	7,852

Add:
Total interest expense		40,185			36,875		33,339			29,737			29,587
Provision (Benefit) for federal income taxes		(3,091	)		166		1,277			1,024			2,434
Losses from partnership investments(1)		1,005			865		849			702			637
Capitalized interest		30			22		11			16			19
Minority interests		(21	)		10		(2	)		(8	)		—

Earnings, as adjusted	$	36,073		$	41,985	$	41,768		$	36,446		$	40,529


Fixed charges:
Total interest expense	$	40,185		$	36,875	$	33,339		$	29,737		$	29,587
Capitalized interest		30			22		11			16			19
Preferred stock dividends and issuance costs at redemption(2)		320			532		585			199			197

Total fixed charges including preferred stock dividends and issuance costs at redemption	$	40,535		$	37,429	$	33,935		$	29,952		$	29,803


Ratio of earnings 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			1.36:1


(1)		Includes amortized capitalized interest related to our partnership investments of $11 million, $10 million, $9 million, $5 million, and $5 million for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively.

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

Federal National Mortgage Association (FNMA) 10-K2007 FY Annual report

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