EX-12.1 21 dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

SLM Corporation

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(Dollars in thousands)

 

           Nine months ended September 30,  
     2003     2004     2005    2006    2007     2007    2008  

Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries

    $ 2,312,940     $ 2,556,985     $ 2,117,463    $ 1,995,274    $ (481,796 )   $ 1,239,829    $ (6,437 )

Add: Fixed charges

      1,022,802       1,440,394       3,063,149      5,128,460      7,091,177       5,113,041      4,379,231  

Less: Other adjustments

      (896 )     (1,697 )     —        —        —         —        —    
                                                     

Total earnings from continuing operations before fixed charges

    $ 3,334,846     $ 3,995,682     $ 5,180,612    $ 7,123,734    $ 6,609,381     $ 6,352,870    $ 4,372,794  
                                                     

Fixed charges

                  

Interest expense

    $ 1,021,906     $ 1,433,696     $ 3,058,718    $ 5,122,855    $ 7,085,772     $ 5,109,130    $ 4,375,896  

Rental expense, net of income

      —         5,001       4,431      5,605      5,405       3,911      3,335  

Capitalized interest

      896       1,697       —        —        —         —        —    
                                                     

Total fixed charges

      1,022,802       1,440,394       3,063,149      5,128,460      7,091,177       5,113,041      4,379,231  

Preferred stock dividend requirements

      17,694       17,694       33,697      54,718      57,146       42,343      129,062  
                                                     

Total fixed charges and preferred stock dividends

    $ 1,040,496     $ 1,458,088     $ 3,096,846    $ 5,183,178    $ 7,148,323     $ 5,155,384    $ 4,508,293  
                                                     

Ratio of earnings to fixed charges(1)(2)

      3.26       2.77       1.69      1.39      0.93       1.24      1.00  
                                                     

Ratio of earnings to fixed charges and preferred stock dividends(1)(2)

      3.21       2.74       1.67      1.37      0.92       1.23      0.97  
                                                     

 

(1)

For purposes of computing these ratios, earnings represent income 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 pre-tax losses of $482 million and $6 million for the year ended December 31, 2007 and the nine months ended September 30, 2008, respectively, the ratio coverage was less than 1:1.