EX-12.2 4 fanniemae201610kex122.htm EXHIBIT 12.2 Exhibit



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,
 
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
12,313

 
$
10,955

 
$
14,209

 
$
83,982

 
$
17,220

 
Add:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
84,726

 
88,033

 
94,437

 
95,145

 
107,689

 
Provision (benefit) for federal income taxes(1)
 
6,020

 
5,253

 
6,941

 
(45,415
)
 
—

 
Gains from partnership investments
 
(17
)
 
(244
)
 
(268
)
 
(518
)
 
(120
)
 
Capitalized interest
 
4

 
6

 
3

 
1

 
1

 
Earnings, as adjusted
 
$
103,046

 
$
104,003

 
$
115,322

 
$
133,195

 
$
124,790

 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
84,726

 
88,033

 
94,437

 
95,145

 
107,689

 
Capitalized interest
 
4

 
6

 
3

 
1

 
1

 
Senior preferred stock dividends(2)
 
14,328

 
15,206

 
30,654

 
37,864

 
11,603

 
Total fixed charges
 
$
99,058

 
$
103,245

 
$
125,094

 
$
133,010

 
$
119,293

 
Ratio of earnings to fixed charges
 
1.04:1

 
1.01:1

 
0.92:1

 
1.00:1

 
1.05:1

 
Deficiency (surplus)
 
(3,988
)
 
(758
)
 
9,772

 
(185
)
 
(5,497
)
 
__________
(1) 
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.
(2) 
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.