EX-12.1 4 d945189dex121.htm EX-12.1 EX-12.1

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.