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Earnings (Loss) Per Share
 9 Months Ended
Sep. 30, 2013
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
Earnings (Loss) Per Share
The following table displays the computation of basic and diluted earnings (loss) per share of common stock for the three and nine months ended September 30, 2013 and 2012.
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
 
 
(Dollars and shares in millions, except per share amounts)
 
Net income
 
$
8,744

 
 
 
$
1,813

 
 
 
 
$
77,524

 
 
 
$
9,650

 
Less: Net (income) loss attributable to noncontrolling interest
 
(7
)
 
 
 
8

 
 
 
 
(18
)
 
 
 
4

 
Net income attributable to Fannie Mae
 
8,737

 
 
 
1,821

 
 
 
 
77,506

 
 
 
9,654

 
Dividends distributed or available for distribution to senior preferred stockholder(1)
 
(8,617
)
 
 
 
(2,929
)
 
 
 
 
(78,228
)
 
 
 
(8,675
)
 
Net income (loss) attributable to common stockholders
 
$
120

 
 
 
$
(1,108
)
 
 
 
 
$
(722
)
 
 
 
$
979

 
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)
 
5,893

 
 
 
5,762

 
 
 
 
5,762

 
 
 
5,893

 
Earnings (loss) per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.02

 
 
 
$
(0.19
)
 
 
 
 
$
(0.13
)
 
 
 
$
0.17

 
Diluted
 
$
0.02

 
 
 
$
(0.19
)
 
 
 
 
$
(0.13
)
 
 
 
$
0.17

 
__________
(1) 
Represents our required dividend payments to Treasury under the terms of the senior preferred stock purchase agreement. For the three months ended September 30, 2013, the dividend is calculated based on our net worth as of September 30, 2013 less the applicable capital reserve amount of $3.0 billion and for the nine months ended September 30, 2013, we add dividends paid related to 2013 to this amount. For the three and nine months ended September 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 September 30, 2013.
In 2012, the terms of the senior preferred stock purchase agreement were amended to ultimately require the payment of our entire net worth to Treasury. On September 30, 2013 we paid Treasury a senior preferred stock dividend of $10.2 billion for the third quarter of 2013. By December 31, 2013, we will pay Treasury a senior preferred stock dividend for the fourth quarter of 2013 of $8.6 billion, which equals the excess of our net worth as of September 30, 2013 over a $3.0 billion capital reserve amount applicable in 2013 under the terms of our senior preferred stock purchase agreement.