Exhibit 12.1
SLM CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
Years Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||
' | 2011 | 2012 | 2013 | 2014 | 2015 | 2015 | 2016 | |||||||||||||||||||||
Income before income tax expense | $ | 87,848 | $ | 341,869 | $ | 416,527 | $ | 333,752 | $ | 439,064 | $ | 79,421 | $ | 104,790 | ||||||||||||||
Add: Fixed charges | 107,896 | 84,709 | 91,182 | 98,404 | 132,048 | 31,286 | 40,475 | |||||||||||||||||||||
Total earnings | $ | 195,744 | $ | 426,578 | $ | 507,709 | $ | 432,156 | $ | 571,112 | $ | 110,707 | $ | 145,265 | ||||||||||||||
Interest expense | $ | 105,385 | $ | 82,912 | $ | 89,085 | $ | 95,815 | $ | 128,619 | $ | 30,402 | $ | 39,592 | ||||||||||||||
Rental expense, net of income | 2,511 | 1,797 | 2,097 | 2,589 | 3,429 | 884 | 883 | |||||||||||||||||||||
Total fixed charges | 107,896 | 84,709 | $ | 91,182 | 98,404 | 132,048 | 31,286 | 40,475 | ||||||||||||||||||||
Preferred stock dividends | — | — | — | 12,933 | 19,595 | 4,823 | 5,139 | |||||||||||||||||||||
Total fixed charges and preferred stock dividends | $ | 107,896 | $ | 84,709 | $ | 91,182 | $ | 111,337 | $ | 151,643 | $ | 36,109 | $ | 45,614 | ||||||||||||||
Ratio of earnings to fixed charges(1) | 1.81 | 5.04 | 5.57 | 4.39 | 4.33 | 3.54 | 3.59 | |||||||||||||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends(1) | 1.81 | 5.04 | 5.57 | 3.88 | 3.77 | 3.07 | 3.18 | |||||||||||||||||||||
(1) | For purposes of computing these ratios, earnings represent income (loss) 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. |