EX-12.2 15 w48295exv12w2.htm EX-12.2 exv12w2
 

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,  
    2007     2006     2005     2004     2003  
 
                                        
Earnings:
                                        
Income (Loss) before extraordinary gains (losses) and cumulative effect of change in accounting principle, net of taxes
   $ (2,035 )   $ 4,047     $ 6,294     $ 4,975     $ 7,852  
 
                                        
Add:
                                        
Total interest expense
     40,185       36,875       33,339       29,737       29,587  
Provision (Benefit) for federal income taxes
     (3,091 )     166       1,277       1,024       2,434  
Losses from partnership investments (1)
     1,005       865       849       702       637  
Capitalized interest
     30       22       11       16       19  
Minority interests
     (21 )     10       (2 )     (8 )     —  
 
                              
Earnings, as adjusted
   $ 36,073     $ 41,985     $ 41,768     $ 36,446     $ 40,529  
 
                              
 
                                        
Fixed charges:
                                        
Total interest expense
   $ 40,185     $ 36,875     $ 33,339     $ 29,737     $ 29,587  
Capitalized interest
     30       22       11       16       19  
Preferred stock dividends and issuance costs at redemption (2)
     320       532       585       199       197  
 
                              
Total fixed charges including preferred stock dividends and issuance costs at redemption
   $ 40,535     $ 37,429     $ 33,935     $ 29,952     $ 29,803  
 
                              
 
                                        
Ratio of earnings to combined fixed charges and preferred stock dividends and issuance costs at redemption
     0.89:1       1.12:1       1.23:1       1.22:1       1.36:1  
 
                              
 
(1)   Includes amortized capitalized interest related to our partnership investments of $11 million, $10 million, $9 million, $5 million, and $5 million for the years ended December 31, 2007, 2006, 2005, 2004 and 2003, respectively.
 
(2)   Represents pre-tax earnings required to pay dividends on outstanding preferred stock using our effective income tax rate for the relevant periods.