XML 80 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
(Loss) Earnings Per Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
(Loss) Earnings Per Share
The calculation of income available to common stockholders and earnings per share is based on the underlying premise that all income after payment of dividends on preferred shares is available to and will be distributed to common stockholders. However, as a result of our conservatorship status and the terms of the senior preferred stock, no amounts are available to distribute as dividends to common or preferred stockholders (other than to Treasury as holder of the senior preferred stock).
The following table displays the computation of basic and diluted (loss) earnings per share of common stock for the three and nine months ended September 30, 2014 and 2013.
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(Dollars and shares in millions, except per share amounts)
Net income
 
$
3,905

 
 
 
$
8,744

 
 
 
 
$
12,897

 
 
 
$
77,524

 
Less: Net income attributable to noncontrolling interest
 
—

 
 
 
(7
)
 
 
 
 
(1
)
 
 
 
(18
)
 
Net income attributable to Fannie Mae
 
3,905

 
 
 
8,737

 
 
 
 
12,896

 
 
 
77,506

 
Dividends distributed or available for distribution to senior preferred stockholder(1)
 
(3,999
)
 
 
 
(8,617
)
 
 
 
 
(13,403
)
 
 
 
(78,228
)
 
Net (loss) income attributable to common stockholders
 
$
(94
)
 
 
 
$
120

 
 
 
 
$
(507
)
 
 
 
$
(722
)
 
Weighted-average common shares outstanding—Basic(2)
 
5,762

 
 
 
5,762

 
 
 
 
5,762

 
 
 
5,762

 
Convertible preferred stock
 
—

 
 
 
131

 
 
 
 
—

 
 
 
—

 
Weighted-average common shares outstanding—Diluted(2)
 
5,762

 
 
 
5,893

 
 
 
 
5,762

 
 
 
5,762

 
(Loss) earnings per share: basic and diluted
 
$
(0.02
)
 
 
 
$
0.02

 
 
 
 
$
(0.09
)
 
 
 
$
(0.13
)
 
__________
(1) 
Represents our dividend payments to Treasury under the terms of the senior preferred stock. Dividends distributed or available for distribution for the three months ended September 30, 2014 (relating to the dividend period for the three months ended December 31, 2014) were calculated based on our net worth as of September 30, 2014 less the applicable capital reserve amount of $2.4 billion and for the nine months ended September 30, 2014 we added dividends paid on June 30 and September 30, 2014. Dividends distributed or available for distribution for the three months ended September 30, 2013 (relating to the dividend period for the three months ended December 31, 2013) were 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 added dividends paid on June 28 and September 30, 2013.
(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, 2014.