The following table displays the computation of basic and diluted (loss) earnings per share of common stock for the three and six months ended June 30, 2013 and 2012.



	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2013				2012				2013				2012
		(Dollars and shares in millions, except per share amounts)
Net income		$	10,095			$	5,119			$	68,780			$	7,837
Less: Net income attributable to noncontrolling interest		(11		)		(5		)		(11		)		(4		)
Net income attributable to Fannie Mae		10,084				5,114				68,769				7,833
Dividends distributed or available for distribution to senior preferred stockholder⁽¹⁾		(10,243		)		(2,929		)		(69,611		)		(5,746		)
Net (loss) income attributable to common stockholders		$	(159	)		$	2,185			$	(842	)		$	2,087
Weighted-average common shares outstanding—Basic⁽²⁾		5,762				5,762				5,762				5,762
Convertible preferred stock		—				131				—				131
Weighted-average common shares outstanding—Diluted⁽²⁾		5,762				5,893				5,762				5,893
(Loss) earnings per share:
Basic		$	(0.03	)		$	0.38			$	(0.15	)		$	0.36
Diluted		$	(0.03	)		$	0.37			$	(0.15	)		$	0.35

__________

⁽¹⁾

Represents our required dividend payments to Treasury under the terms of the senior preferred stock purchase agreement. For the three months ended June 30, 2013, the dividend is calculated based on our net worth as of June 30, 2013 less the applicable capital reserve amount of $3.0 billion and for the six months ended June 30, 2013, we add dividends paid related to 2013 to this amount. For the three and six months ended June 30, 2012, an annual dividend rate of 10% on the aggregate liquidation preference was used to calculate the dividend.


⁽²⁾	Includes 4.6 billion of weighted-average shares of common stock that would be issued upon the full exercise of the warrant issued to Treasury from the date the warrant was issued through June 30, 2013.