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Exhibit 12.1
SLM Corporation
Ratio of Earnings to Fixed Charges and Preferred Dividends
(Dollars in thousands)
| | Years Ended December 31, | Nine months ended September 30, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2000 | 2001 | 2002 | 2003 | 2004 | 2004 | 2005 | |||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries | $ | 711,591 | $ | 617,388 | $ | 1,223,399 | $ | 2,312,940 | $ | 2,556,985 | $ | 1,802,170 | $ | 1,469,567 | |||||||||||
Add: | Fixed charges | 2,882,953 | 2,171,417 | 1,227,195 | 1,040,496 | 1,458,088 | 983,294 | 2,081,556 | |||||||||||||||||
Less: | Other adjustments | (3,405 | ) | — | — | (896 | ) | (6,698 | ) | (5,567 | ) | (3,323 | ) | ||||||||||||
Less: | Preferred dividends | (42,677 | ) | (39,346 | ) | (17,694 | ) | (17,694 | ) | (17,694 | ) | (13,269 | ) | (21,648 | ) | ||||||||||
Total earnings | $ | 3,548,462 | $ | 2,749,459 | $ | 2,432,900 | $ | 3,334,846 | $ | 3,990,681 | $ | 2,766,628 | $ | 3,526,152 | |||||||||||
Fixed charges | |||||||||||||||||||||||||
Interest expense | $ | 2,836,871 | $ | 2,132,071 | $ | 1,209,501 | $ | 1,021,906 | $ | 1,433,696 | $ | 964,458 | $ | 2,056,585 | |||||||||||
Preferred dividends | 42,677 | 39,346 | 17,694 | 17,694 | 17,694 | 13,269 | 21,648 | ||||||||||||||||||
Rental expense (33%), net of income | 3,405 | — | — | — | 5,001 | 3,870 | 3,323 | ||||||||||||||||||
Capitalized interest | — | — | — | 896 | 1,697 | 1,697 | — | ||||||||||||||||||
Total fixed charges | $ | 2,882,953 | $ | 2,171,417 | $ | 1,227,195 | $ | 1,040,496 | $ | 1,458,088 | $ | 983,294 | $ | 2,081,556 | |||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 1.23 | 1.27 | 1.98 | 3.21 | 2.74 | 2.81 | 1.69 | ||||||||||||||||||
For purposes of the "earnings" computation, "other adjustments" includes the capitalized interest cost and rental expense. | |||||||||||||||||||||||||
For purposes of the "fixed charges" computation, "other adjustments" includes the capitalized interest cost and rental expense. | |||||||||||||||||||||||||
Preference Security Dividend | |||||||||||||||||||||||||
Amount of Dividend (GSE) | $ | 16,218 | $ | 14,074 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Amount of Dividend (SLM Corp) | $ | 11,522 | $ | 11,501 | $ | 11,501 | $ | 11,501 | $ | 11,501 | $ | 8,625 | $ | 14,071 | |||||||||||
1- Tax Rate | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | 0.65 | ||||||||||||||||||
Pre-tax earnings required to pay dividend | 42,677 | 39,346 | 17,694 | 17,694 | 17,694 | 13,269 | 21,648 |
SLM Corporation Ratio of Earnings to Fixed Charges and Preferred Dividends (Dollars in thousands)