EX-12.1 3 fanniemae201710kex121.htm EXHIBIT 12.1 Exhibit



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



 
 
For the Year Ended December 31,
 
 
 
2017
 
2016
 
2015
 
2014
 
2013
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
2,463

 
$
12,313

 
$
10,955

 
$
14,209

 
$
83,982

 
Add:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
89,123

 
84,726

 
88,033

 
94,437

 
95,145

 
Provision (benefit) for federal income taxes(1)
 
15,984

 
6,020

 
5,253

 
6,941

 
(45,415
)
 
Gains from partnership investments
 
63

 
(17
)
 
(244
)
 
(268
)
 
(518
)
 
Capitalized interest
 
2

 
4

 
6

 
3

 
1

 
Earnings, as adjusted
 
$
107,635

 
$
103,046

 
$
104,003

 
$
115,322

 
$
133,195

 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
Total interest expense
 
89,123

 
84,726

 
88,033

 
94,437

 
95,145

 
Capitalized interest
 
2

 
4

 
6

 
3

 
1

 
Total fixed charges
 
$
89,125

 
$
84,730

 
$
88,039

 
$
94,440

 
$
95,146

 
Ratio of earnings to fixed charges
 
1.21:1

 
1.22:1

 
1.18:1

 
1.22:1

 
1.40:1

 
Surplus
 
(18,510
)
 
(18,316
)
 
(15,964
)
 
(20,882
)
 
(38,049
)
 
__________
(1) 
In 2017, we remeasured our deferred tax assets using the lower corporate tax rate enacted by the Tax Cuts and Jobs Act that resulted in an additional $9.9 billion provision for federal income taxes in our consolidated statement of operations and comprehensive income for the year ended December 31, 2017. 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.