Exhibit 12.1
SLM Corporation
Ratio of Earnings to Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)
Nine months ended September 30, | |||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007 | 2008 | |||||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries | $ | 2,312,940 | $ | 2,556,985 | $ | 2,117,463 | $ | 1,995,274 | $ | (481,796 | ) | $ | 1,239,829 | $ | (6,437 | ) | |||||||||
Add: Fixed charges | 1,022,802 | 1,440,394 | 3,063,149 | 5,128,460 | 7,091,177 | 5,113,041 | 4,379,231 | ||||||||||||||||||
Less: Other adjustments | (896 | ) | (1,697 | ) | — | — | — | — | — | ||||||||||||||||
Total earnings from continuing operations before fixed charges | $ | 3,334,846 | $ | 3,995,682 | $ | 5,180,612 | $ | 7,123,734 | $ | 6,609,381 | $ | 6,352,870 | $ | 4,372,794 | |||||||||||
Fixed charges | |||||||||||||||||||||||||
Interest expense | $ | 1,021,906 | $ | 1,433,696 | $ | 3,058,718 | $ | 5,122,855 | $ | 7,085,772 | $ | 5,109,130 | $ | 4,375,896 | |||||||||||
Rental expense, net of income | — | 5,001 | 4,431 | 5,605 | 5,405 | 3,911 | 3,335 | ||||||||||||||||||
Capitalized interest | 896 | 1,697 | — | — | — | — | — | ||||||||||||||||||
Total fixed charges | 1,022,802 | 1,440,394 | 3,063,149 | 5,128,460 | 7,091,177 | 5,113,041 | 4,379,231 | ||||||||||||||||||
Preferred stock dividend requirements | 17,694 | 17,694 | 33,697 | 54,718 | 57,146 | 42,343 | 129,062 | ||||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 1,040,496 | $ | 1,458,088 | $ | 3,096,846 | $ | 5,183,178 | $ | 7,148,323 | $ | 5,155,384 | $ | 4,508,293 | |||||||||||
Ratio of earnings to fixed charges(1)(2) | 3.26 | 2.77 | 1.69 | 1.39 | 0.93 | 1.24 | 1.00 | ||||||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends(1)(2) | 3.21 | 2.74 | 1.67 | 1.37 | 0.92 | 1.23 | 0.97 | ||||||||||||||||||
(1) | For purposes of computing these ratios, earnings represent income before income tax expense plus fixed charges. Fixed charges represent interest expensed and capitalized plus one-third (the proportion deemed representative of the interest factor) of rents, net of income from subleases. |
(2) | Due to pre-tax losses of $482 million and $6 million for the year ended December 31, 2007 and the nine months ended September 30, 2008, respectively, the ratio coverage was less than 1:1. |