Exhibit 12.1
SLM Corporation
Formerly USA Education, Inc.
Ratio of Earnings to Fixed Charges and Preferred Dividends
(Dollars in thousands)
| | | | | | | Three Months ended March 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 1997 | 1998 | 1999 | 2000 | 2001 | 2001 | 2002 | ||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries | $ | 759,748 | $ | 750,131 | $ | 751,652 | $ | 711,591 | $ | 617,388 | $ | 53,314 | $ | 654,511 | ||||||||||
Add: | Fixed charges | 2,544,584 | 1,948,995 | 2,140,588 | 2,879,548 | 2,163,461 | 705,377 | 321,023 | ||||||||||||||||
Less: | Other adjustments | — | — | — | — | — | — | — | ||||||||||||||||
Less: | Preferred dividends (N/A) | (18,428 | ) | (23,998 | ) | (25,803 | ) | (42,677 | ) | (39,346 | ) | (10,512 | ) | (4,423 | ) | |||||||||
Total earnings | $ | 3,285,904 | $ | 2,675,128 | $ | 2,866,437 | $ | 3,548,462 | $ | 2,741,503 | $ | 748,179 | $ | 971,111 | ||||||||||
Fixed charges | ||||||||||||||||||||||||
Interest expense | $ | 2,526,156 | $ | 1,924,997 | $ | 2,114,785 | $ | 2,836,871 | $ | 2,124,115 | $ | 694,865 | $ | 316,600 | ||||||||||
Preferred dividends (N/A) | 18,428 | 23,998 | 25,803 | 42,677 | 39,346 | 10,512 | 4,423 | |||||||||||||||||
Other adjustments | — | — | — | — | — | — | — | |||||||||||||||||
Total fixed charges | $ | 2,544,584 | $ | 1,948,995 | $ | 2,140,588 | $ | 2,879,548 | $ | 2,163,461 | $ | 705,377 | $ | 321,023 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 1.29 | 1.37 | 1.34 | 1.23 | 1.27 | 1.06 | 3.03 | |||||||||||||||||
Ratio of earnings to fixed charges | 1.29 | 1.38 | 1.34 | 1.24 | 1.27 | 1.06 | 3.05 | |||||||||||||||||
For purposes of the "earnings" computation, "other adjustments" includes the capitalized interest cost. | ||||||||||||||||||||||||
For purposes of the "fixed charges" computation, other adjustments includes the capitalized interest cost. | ||||||||||||||||||||||||
Preference Security Dividend | ||||||||||||||||||||||||
Amount of Dividend | $ | 11,978 | $ | 15,999 | $ | 15,334 | $ | $16,218 | $ | 14,074 | $ | 3,958 | $ | — | ||||||||||
Amount of Dividend | $ | 1,438 | $ | 11,522 | $ | 11,501 | $ | 2,875 | $ | 2,875 | ||||||||||||||
I-Tax Rate | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | |||||||||||||||||
Pre-tax earnings required to pay dividend | 18,428 | 23,998 | 25,803 | 42,677 | 39,346 | 10,512 | 4,423 |