Exhibit 12.1
SLM Corporation
Ratio of Earnings to Fixed Charges and Preferred Dividends
(Dollars in thousands)
Three Months ended | |||||||||||||||||||||||||||||||
Mar 31, | |||||||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2002 | 2003 | |||||||||||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries | $ | 750,131 | $ | 751,652 | $ | 711,591 | $ | 617,388 | $ | 1,223,399 | $ | 654,511 | $ | 643,241 | |||||||||||||||||
Add: Fixed charges | 1,948,995 | 2,140,588 | 2,879,548 | 2,163,461 | 1,220,314 | 321,023 | 248,512 | ||||||||||||||||||||||||
Less: Other adjustments | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Less: Preferred dividends | (23,998 | ) | (25,803 | ) | (42,677 | ) | (39,346 | ) | (17,694 | ) | (4,423 | ) | (4,423 | ) | |||||||||||||||||
Total earnings | $ | 2,675,128 | $ | 2,866,437 | $ | 3,548,462 | $ | 2,741,503 | $ | 2,426,019 | $ | 971,111 | $ | 887,330 | |||||||||||||||||
Fixed charges | |||||||||||||||||||||||||||||||
Interest expense | $ | 1,924,997 | $ | 2,114,785 | $ | 2,836,871 | $ | 2,124,115 | $ | 1,202,620 | $ | 316,600 | $ | 244,089 | |||||||||||||||||
Preferred dividends | 23,998 | 25,803 | 42,677 | 39,346 | 17,694 | 4,423 | 4,423 | ||||||||||||||||||||||||
Other adjustments | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total fixed charges | $ | 1,948,995 | $ | 2,140,588 | $ | 2,879,548 | $ | 2,163,461 | $ | 1,220,314 | $ | 321,023 | $ | 248,512 | |||||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 1.37 | 1.34 | 1.23 | 1.27 | 1.99 | 3.03 | 3.57 | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.38 | 1.34 | 1.24 | 1.27 | 2.00 | 3.05 | 3.62 | ||||||||||||||||||||||||
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 | $ | 15,599 | $ | 15,334 | $ | 16,218 | $ | 14,074 | $ | — | $ | — | $ | — | |||||||||||||||||
Amount of Dividend | $ | 1,438 | $ | 11,522 | $ | 11,501 | $ | 11,501 | $ | 2,875 | $ | 2,875 | |||||||||||||||||||
1-Tax Rate | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | ||||||||||||||||||||||||
Pre-tax earnings required to pay dividend | 23,998 | 25,803 | 42,677 | 39,346 | 17,694 | 4,423 | 4,423 | ||||||||||||||||||||||||