Exhibit 12.1
SLM CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
Years Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | (122,669 | ) | $ | 87,848 | $ | 341,871 | $ | 416,528 | $ | 333,752 | $ | 79,421 | |||||||||||
Add: Fixed charges | 146,256 | 107,896 | 84,708 | 91,182 | 98,404 | 31,286 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earnings | $ | 23,587 | $ | 195,744 | $ | 426,579 | $ | 507,710 | $ | 432,156 | $ | 110,707 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Interest expense | $ | 143,927 | $ | 105,385 | $ | 82,911 | $ | 89,085 | $ | 95,815 | $ | 30,402 | ||||||||||||
Rental expense, net of income | 2,329 | 2,511 | 1,797 | 2,097 | 2,589 | 884 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges | 146,256 | 107,896 | 84,708 | 91,182 | 98,404 | 31,286 | ||||||||||||||||||
Preferred stock dividends | — | — | — | — | 12,933 | 4,823 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges and preferred stock dividends | $ | 146,256 | $ | 107,896 | $ | 84,708 | $ | 91,182 | $ | 111,337 | $ | 36,109 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to fixed charges(1)(2) | — | 1.81 | 5.04 | 5.57 | 4.39 | 3.54 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends(1)(2) | — | 1.81 | 5.04 | 5.57 | 3.88 | 3.07 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | For purposes of computing these ratios, earnings represent income (loss) 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 a pre-tax loss from operations of $122,669 for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate $122,669 of additional earnings in the year ended December 31, 2010 for the ratio coverage to equal 1:1. |