Exhibit 12.1
NAVIENT CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in millions)
|
| Years Ended December 31, |
|
| Three Months Ended Mar 31, |
| ||||||||||||||||||||||
|
| 2014 |
|
| 2015 |
|
| 2016 |
|
| 2017 |
|
| 2018 |
|
| 2018 |
|
| 2019 |
| |||||||
Income before income taxes |
| $ | 1,818 |
|
| $ | 1,580 |
|
| $ | 1,108 |
|
| $ | 764 |
|
| $ | 528 |
|
| $ | 162 |
|
| $ | 164 |
|
Add: Fixed charges |
|
| 2,066 |
|
|
| 2,077 |
|
|
| 2,445 |
|
|
| 2,975 |
|
|
| 3,672 |
|
|
| 844 |
|
|
| 950 |
|
Total earnings |
| $ | 3,884 |
|
| $ | 3,657 |
|
| $ | 3,553 |
|
| $ | 3,739 |
|
| $ | 4,200 |
|
| $ | 1,006 |
|
| $ | 1,114 |
|
Interest expense |
| $ | 2,063 |
|
| $ | 2,074 |
|
| $ | 2,441 |
|
| $ | 2,971 |
|
| $ | 3,668 |
|
| $ | 843 |
|
| $ | 949 |
|
Rental expense, net of income |
|
| 3 |
|
|
| 3 |
|
|
| 4 |
|
|
| 4 |
|
|
| 4 |
|
|
| 1 |
|
|
| 1 |
|
Total fixed charges |
|
| 2,066 |
|
|
| 2,077 |
|
|
| 2,445 |
|
|
| 2,975 |
|
|
| 3,672 |
|
|
| 844 |
|
|
| 950 |
|
Preferred stock dividends |
|
| 10 |
|
|
| - |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total fixed charges and preferred stock dividends |
| $ | 2,076 |
|
| $ | 2,077 |
|
| $ | 2,445 |
|
| $ | 2,975 |
|
| $ | 3,672 |
|
| $ | 844 |
|
| $ | 950 |
|
Ratio of earnings to fixed charges(1) |
|
| 1.88 |
|
|
| 1.76 |
|
|
| 1.45 |
|
|
| 1.26 |
|
|
| 1.14 |
|
|
| 1.19 |
|
|
| 1.17 |
|
Ratio of earnings to fixed charges and preferred stock dividends(1) |
|
| 1.87 |
|
|
| 1.76 |
|
|
| 1.45 |
|
|
| 1.26 |
|
|
| 1.14 |
|
|
| 1.19 |
|
|
| 1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For purposes of computing these ratios, earnings represent income (loss) from continuing operations 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. |
| |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|