Exhibit 12.1
Arlington Asset Investment Corp.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| Nine Months Ended | Years Ended December 31, | |||||||||||||||||||||||
| September 30, 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 18,351 | $ | 140,981 | $ | (303,203 | ) | $ | (660,724 | ) | $ | (74,863 | ) | $ | (239,773 | ) | ||||||||
Distributed income of equity investees | 222 | 326 | 7,355 | 1,933 | 13,821 | 19,172 | ||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 828 | 3,645 | 72,751 | 472,100 | 557,257 | 511,125 | ||||||||||||||||||
Rentals | 39 | 77 | 251 | 2,316 | 3,071 | 1,992 | ||||||||||||||||||
Total fixed charges | $ | 867 | $ | 3,722 | $ | 73,002 | $ | 474,416 | $ | 560,328 | $ | 513,117 | ||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exlude income or loss from equity investees plus fixed charges and distributed income of equity investees | $ | 19,440 | $ | 145,029 | $ | (222,846 | ) | $ | (184,375 | ) | $ | 499,286 | $ | 292,516 | ||||||||||
Ratio of earnings to fixed charges | 22.4 | 39.0 | (A | ) | (A | ) | (A | ) | (A | ) | ||||||||||||||
| (A) | Due to the company’s losses in 2008, 2007, 2006, and 2005, the ratio coverage in these years was less than 1:1. The company would have had to generate additional earnings of $295,848, $658,791, $61,042, and $220,601, respectively, to achieve coverage of 1:1 in those years. |
