Exhibit 12.1
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
For 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 | |||||||||||||||
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Earnings (loss), as adjusted | $ | 106,637 | $ | 123,835 | $ | (41,423 | ) | $ | (8,655 | ) | $ | 36,073 | ||||||||
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Fixed charges: | ||||||||||||||||||||
Total interest expense | 123,662 | 137,861 | 24,845 | 34,341 | 40,185 | |||||||||||||||
Capitalized interest | 1 | — | 4 | 20 | 30 | |||||||||||||||
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Total fixed charges | 123,663 | 137,861 | 24,849 | 34,361 | 40,215 | |||||||||||||||
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Ratio of earnings (loss) to fixed charges | 0.86:1 | 0.90:1 | — | — | 0.90:1 | |||||||||||||||
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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) | 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. |