EX-12.2 5 w33365exv12w2.htm EXHIBIT 12.2 exv12w2
 

Exhibit 12.2
FANNIE MAE
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(Dollars in millions)
                                 
    For the Year Ended December 31,  
    2005     2004     2003     2002  
Earnings:
                                
Income before extraordinary gains (losses) and cumulative effect of change in accounting principle, net of taxes
   $ 6,294     $ 4,975     $ 7,852     $ 3,914  
 
                                
Add:
                                
Total interest expense
     33,339       29,737       29,587       32,498  
Provision for federal income taxes
     1,277       1,024       2,434       840  
Loss from partnership investments (1)
     849       702       637       509  
Capitalized interest
     11       16       19       17  
Minority interest in earnings of consolidated subsidiaries
     2       8       —       —  
 
                        
Earnings, as adjusted
   $ 41,772     $ 36,462     $ 40,529     $ 37,778  
 
                        
 
                                
Fixed charges:
                                
Total interest expense
   $ 33,339     $ 29,737     $ 29,587     $ 32,498  
Capitalized interest
     11       16       19       17  
Preferred stock dividends and issuance costs at redemption (2)
     585       199       197       135  
 
                        
 
                                
Fixed charges including preferred stock dividends and issuance costs at redemption
   $ 33,935     $ 29,952     $ 29,803     $ 32,650  
 
                        
 
                                
Ratio of earnings to combined fixed charges and preferred dividends and issuance costs at redemption
     1.23:1       1.22:1       1.36:1       1.16:1  
 
                        
 
(1)   Includes amortized capitalized interest related to our partnership investments of $9 million, $5 million, $5 million and $4 million for the years ended December 31, 2005, 2004, 2003 and 2002, respectively.
 
(2)   Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.