EX-12.2 3 fanniemae201410kex122.htm EXHIBIT 12.2 FannieMae2014 10K EX 12.2



Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS AND ISSUANCE COST AT REDEMPTION
(Dollars in millions)



 
 
For the Year Ended December 31,
 
 
 
2014
 
2013
 
2012
 
2011
 
2010
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)(1)
 
$
14,209

 
$
83,982

 
$
17,220

 
$
(16,855
)
 
$
(14,018
)
 
Add:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
94,437

 
95,145

 
107,689

 
123,662

 
137,861

 
Provision (benefit) for federal income taxes(2)
 
6,941

 
(45,415
)
 
—

 
(90
)
 
(82
)
 
(Gains) losses from partnership investments
 
(268
)
 
(518
)
 
(120
)
 
(81
)
 
74

 
Capitalized interest
 
3

 
1

 
1

 
1

 
—

 
Earnings, as adjusted
 
$
115,322

 
$
133,195

 
$
124,790

 
$
106,637

 
$
123,835

 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
94,437

 
95,145

 
107,689

 
123,662

 
137,861

 
Capitalized interest
 
3

 
1

 
1

 
1

 
—

 
Senior preferred stock dividends(3)
 
30,654

 
37,864

 
11,603

 
9,665

 
7,749

 
Total fixed charges
 
$
125,094

 
$
133,010

 
$
119,293

 
$
133,328

 
$
145,610

 
Ratio of earnings to fixed charges
 
0.92:1

 
1.00:1

 
1.05:1

 
0.80:1

 
0.85:1

 
Deficiency (surplus)
 
9,772

 
(185
)
 
(5,497
)
 
26,691

 
21,775

 
__________
(1) 
Reflects the adoption of accounting standard requiring noncontrolling interest to be classified as a separate component of equity.
(2) 
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.
(3) 
Represents pre-tax earnings required to pay dividends on outstanding senior preferred stock using our effective income tax rate for the relevant periods. The dividend requirement is calculated by taking the amount of dividend divided by 1 minus our effective income tax rate. For the year ended December 31, 2013, our effective tax rate of (117.8)% was different from the federal statutory rate of 35% primarily due to the release of the substantial majority of our valuation allowance for our net deferred tax assets.