EX-12.1 4 fanniemae201310kex121.htm EXHIBIT Fanniemae2013 10K EX 12.1



Exhibit 12.1
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in millions)



 
 
For the Year Ended December 31,
 
 
 
2013
 
2012
 
2011
 
2010(1)
 
2009
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before extraordinary gains (losses)(2)
 
$
83,982

 
$
17,220

 
$
(16,855
)
 
$
(14,018
)
 
$
(72,022
)
 
Add:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
95,145

 
107,689

 
123,662

 
137,861

 
24,845

 
Benefit for federal income taxes(3)
 
(45,415
)
 
—

 
(90
)
 
(82
)
 
(985
)
 
(Gains) losses from partnership investments(4)
 
(518
)
 
(120
)
 
(81
)
 
74

 
6,735

 
Capitalized interest
 
1

 
1

 
1

 
—

 
4

 
Earnings (loss), as adjusted
 
$
133,195

 
$
124,790

 
$
106,637

 
$
123,835

 
$
(41,423
)
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
95,145

 
107,689

 
123,662

 
137,861

 
24,845

 
Capitalized interest
 
1

 
1

 
1

 
—

 
4

 
Total fixed charges
 
$
95,146

 
$
107,690

 
$
123,663

 
$
137,861

 
$
24,849

 
Ratio of earnings to fixed charges
 
1.40:1

 
1.16:1

 
0.86:1

 
0.90:1

 
—

 
(Surplus) deficiency
 
(38,049
)
 
(17,100
)
 
17,026

 
14,026

 
66,272

 
__________
(1) 
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 2013, 2012, 2011 and 2010 with the results in prior years.
(2) 
Reflects the adoption of accounting standard requiring noncontrolling interest to be classified as a separate component of equity.
(3) 
In 2013, we released the substantial majority of the valuation allowance for our net deferred tax assets that resulted in the recognition of a benefit for federal income taxes of $45.4 billion in our consolidated statement of operations and comprehensive income for the year ended December 31, 2013.
(4) 
Includes amortized capitalized interest related to our partnership investments of $1 million and $11 million for the years ended December 31, 2010 and 2009, respectively.