EX-12.1 2 d620753dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

SLM CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in millions)

 

     Years Ended  
     2008     2009      2010      2011      2012  

Income (loss) from continuing operations before income taxes

    $ (60 )    $ 789       $ 1,229       $ 925       $ 1,437   

Add: Fixed charges

      5,909        3,038         2,279         2,404         2,565   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total earnings

    $ 5,849      $ 3,827       $ 3,508       $ 3,329       $ 4,002   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense

    $ 5,905      $ 3,036       $ 2,275       $ 2,401       $ 2,561   

Rental expense, net of income

      4        2         4         3         4   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges

      5,909        3,038         2,279         2,404         2,565   

Preferred stock dividends

      111        171         121         28         31   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed charges and preferred stock dividends

    $ 6,020      $ 3,209       $ 2,400       $ 2,432       $ 2,596   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

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

      —          1.26         1.54         1.38         1.56   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges and preferred stock dividends(1)(3)

      —          1.19         1.46         1.37         1.54   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.
(2) Due to a pre-tax loss from continuing operations of $60 million for the year ended December 31, 2008, the ratio coverage was less than 1:1. We would have needed to generate $60 million of additional earnings in the year ended December 31, 2008 for the ratio coverage to equal 1:1.
(3) Due to a pre-tax loss from continuing operations of $60 million for the year ended December 31, 2008, the ratio coverage was less than 1:1. We would have needed to generate $171 million of additional earnings in the year ended December 31, 2008 for the ratio coverage to equal 1:1.