EX-12.1 7 d321115dex121.htm EX-12.1

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, |
|  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |  |  | 2016 |  |  | 2017 |
Income (loss) from continuing operations before income taxes |  | $ | 1,437 |  |  | $ | 2,087 |  |  | $ | 1,818 |  |  | $ | 1,580 |  |  | $ | 1,108 |  |  | $ | 284 |  |  | $ | 141 |
Add: Fixed charges |  |  | 2,565 |  |  |  | 2,213 |  |  |  | 2,066 |  |  |  | 2,077 |  |  |  | 2,445 |  |  |  | 566 |  |  |  | 676 |
Total earnings |  | $ | 4,002 |  |  | $ | 4,300 |  |  | $ | 3,884 |  |  | $ | 3,657 |  |  | $ | 3,553 |  |  | $ | 850 |  |  | $ | 817 |
Interest expense |  | $ | 2,561 |  |  | $ | 2,210 |  |  | $ | 2,063 |  |  | $ | 2,074 |  |  | $ | 2,441 |  |  | $ | 565 |  |  | $ | 675 |
Rental expense, net of income |  |  | 4 |  |  |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | 4 |  |  |  | 1 |  |  |  | 1 |
Total fixed charges |  |  | 2,565 |  |  |  | 2,213 |  |  |  | 2,066 |  |  |  | 2,077 |  |  |  | 2,445 |  |  |  | 566 |  |  |  | 676 |
Preferred stock dividends |  |  | 31 |  |  |  | 31 |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total fixed charges and preferred stock dividends |  | $ | 2,596 |  |  | $ | 2,244 |  |  | $ | 2,076 |  |  | $ | 2,077 |  |  | $ | 2,445 |  |  | $ | 566 |  |  | $ | 676 |
Ratio of earnings to fixed charges(1) |  |  | 1.56 |  |  |  | 1.94 |  |  |  | 1.88 |  |  |  | 1.76 |  |  |  | 1.45 |  |  |  | 1.50 |  |  |  | 1.21 |
Ratio of earnings to fixed charges and preferred stock dividends(1) |  |  | 1.54 |  |  |  | 1.92 |  |  |  | 1.87 |  |  |  | 1.76 |  |  |  | 1.45 |  |  |  | 1.50 |  |  |  | 1.21 |

(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.