EX-12.1 2 navi-ex121_21.htm EX-12.1 navi-ex121_21.htm

Exhibit 12.1

NAVIENT CORPORATION

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

(Dollars in millions)

 

 

 

Years Ended December 31,

 

 

Nine Months Ended Sep 30,

 

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2018

 

 

2019

 

Income before income taxes

 

$

1,818

 

 

$

1,580

 

 

$

1,108

 

 

$

764

 

 

$

528

 

 

$

421

 

 

$

544

 

Add:  Fixed charges

 

 

2,066

 

 

 

2,077

 

 

 

2,445

 

 

 

2,975

 

 

 

3,672

 

 

 

2,710

 

 

 

2,716

 

Total earnings

 

$

3,884

 

 

$

3,657

 

 

$

3,553

 

 

$

3,739

 

 

$

4,200

 

 

$

3,131

 

 

$

3,260

 

Interest expense

 

$

2,063

 

 

$

2,074

 

 

$

2,441

 

 

$

2,971

 

 

$

3,668

 

 

$

2,707

 

 

$

2,714

 

Rental expense, net of income

 

 

3

 

 

 

3

 

 

 

4

 

 

 

4

 

 

 

4

 

 

 

3

 

 

 

2

 

Total fixed charges

 

 

2,066

 

 

 

2,077

 

 

 

2,445

 

 

 

2,975

 

 

 

3,672

 

 

 

2,710

 

 

 

2,716

 

Preferred stock dividends

 

 

10

 

 

 

-

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total fixed charges and preferred stock

    dividends

 

$

2,076

 

 

$

2,077

 

 

$

2,445

 

 

$

2,975

 

 

$

3,672

 

 

$

2,710

 

 

$

2,716

 

Ratio of earnings to fixed charges(1)

 

 

1.88

 

 

 

1.76

 

 

 

1.45

 

 

 

1.26

 

 

 

1.14

 

 

 

1.16

 

 

 

1.20

 

Ratio of earnings to fixed charges and preferred

   stock dividends(1)

 

 

1.87

 

 

 

1.76

 

 

 

1.45

 

 

 

1.26

 

 

 

1.14

 

 

 

1.16

 

 

 

1.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.