EX-12.1 9 slm20150630ex121.htm EXHIBIT 12.1
Exhibit 12.1
SLM CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)

|  | Years Ended December 31, |  | Six Months Ended June 30,
' |  | 2010 |  | 2011 |  | 2012 |  | 2013 |  | 2014 |  | 2014 |  | 2015
Income (loss) before income tax expense (benefit) |  | $ | (122,669 | ) |  | $ | 87,848 |  |  | $ | 341,871 |  |  | $ | 416,528 |  |  | $ | 333,752 |  |  | $ | 151,741 |  |  | $ | 230,595 |
Add: Fixed charges |  | 146,256 |  |  | 107,896 |  |  | 84,708 |  |  | 91,182 |  |  | 98,404 |  |  | 44,053 |  |  | 62,356 |
Total earnings |  | $ | 23,587 |  |  | $ | 195,744 |  |  | $ | 426,579 |  |  | $ | 507,710 |  |  | $ | 432,156 |  |  | $ | 195,794 |  |  | $ | 292,951 |
Interest expense |  | $ | 143,927 |  |  | $ | 105,385 |  |  | $ | 82,911 |  |  | $ | 89,085 |  |  | $ | 95,815 |  |  | $ | 43,665 |  |  | $ | 60,619 |
Rental expense, net of income |  | 2,329 |  |  | 2,511 |  |  | 1,797 |  |  | 2,097 |  |  | 2,589 |  |  | 388 |  |  | 1,737 |
Total fixed charges |  | 146,256 |  |  | 107,896 |  |  | $ | 84,708 |  |  | 91,182 |  |  | 98,404 |  |  | 44,053 |  |  | 62,356 |
Preferred stock dividends |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,933 |  |  | 3,228 |  |  | 9,693 |
Total fixed charges and preferred stock dividends |  | $ | 146,256 |  |  | $ | 107,896 |  |  | $ | 84,708 |  |  | $ | 91,182 |  |  | $ | 111,337 |  |  | $ | 47,281 |  |  | $ | 72,049 |
Ratio of earnings to fixed charges(1) (2) |  | — |  |  | 1.81 |  |  | 5.04 |  |  | 5.57 |  |  | 4.39 |  |  | 4.44 |  |  | 4.70 |
Ratio of earnings to fixed charges and preferred stock dividends(1) (2) |  | — |  |  | 1.81 |  |  | 5.04 |  |  | 5.57 |  |  | 3.88 |  |  | 4.14 |  |  | 4.07 |

(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 million of additional earnings in the year ended December 31, 2010 for the ratio coverage to equal 1:1.