EX-12.1 4 fmcc-2013xex121.htm EX-12.1 FMCC-2013-EX 12.1


Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
Year Ended December 31,
  
2013
 
2012
 
2011
 
2010
 
2009
 
(dollars in millions)
Net income (loss) before income tax benefit (expense) and cumulative effect of changes in accounting principles
$
25,363

 
$
9,445

 
$
(5,666
)
 
$
(14,882
)
 
$
(22,384
)
Add:
 
 
 
 
 
 
 
 
 
Low-income housing tax credit partnerships
—

 
—

 
—

 
—

 
4,155

Total interest expense
55,779

 
66,502

 
79,988

 
92,131

 
22,150

Interest factor in rental expenses
4

 
4

 
4

 
5

 
7

Earnings (loss), as adjusted
$
81,146

 
$
75,951

 
$
74,326

 
$
77,254

 
$
3,928

Fixed charges:
 
 
 
 
 
 
 
 
 
Total interest expense
$
55,779

 
$
66,502

 
$
79,988

 
$
92,131

 
$
22,150

Interest factor in rental expenses
4

 
4

 
4

 
5

 
7

Total fixed charges
$
55,783

 
$
66,506

 
$
79,992

 
$
92,136

 
$
22,157

Senior preferred stock and preferred stock dividends(1)
52,199

 
7,229

 
6,498

 
5,749

 
4,105

Total fixed charges including preferred stock dividends
$
107,982

 
$
73,735

 
$
86,490

 
$
97,885

 
$
26,262

Ratio of earnings to fixed charges(2)
1.45

 
1.14

 
—

 
—

 
—

Ratio of earnings to combined fixed charges and preferred stock dividends(3)
—

 
1.03

 
—

 
—

 
—

 
(1)
Senior preferred stock and preferred stock dividends represent pre-tax earnings required to cover any senior preferred stock and preferred stock dividend requirements computed using our effective tax rate, whenever there is an income tax provision, for the relevant periods.
(2)
Ratio of earnings to fixed charges is computed by dividing earnings (loss), as adjusted by total fixed charges. For the ratio to equal 1.00, earnings (loss), as adjusted must increase by $5.7 billion, $14.9 billion, and $18.2 billion for the years ended December 31, 2011, 2010, and 2009, respectively.
(3)
Ratio of earnings to combined fixed charges and preferred stock dividends is computed by dividing earnings (loss), as adjusted by total fixed charges including preferred stock dividends. For the ratio to equal 1.00, earnings (loss), as adjusted must increase by $26.8 billion, $12.2 billion, $20.6 billion, and $22.3 billion for the years ended December 31, 2013, 2011, 2010, and 2009, respectively.