Exhibit 12.01
Arlington Asset Investment Corp.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| Year Ended December 31, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 27,087 | $ | 140,981 | $ | (303,203 | ) | $ | (660,724 | ) | $ | (74,863 | ) | |||||||
Distributed income of equity investees | 222 | 326 | 7,355 | 1,933 | 13,821 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 1,155 | 3,645 | 72,751 | 472,100 | 557,257 | |||||||||||||||
Rentals | 54 | 77 | 251 | 2,316 | 3,071 | |||||||||||||||
Total fixed charges | $ | 1,209 | $ | 3,722 | $ | 73,002 | $ | 474,416 | $ | 560,328 | ||||||||||
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 | $ | 28,518 | $ | 145,029 | $ | (222,846 | ) | $ | (184,375 | ) | $ | 499,286 | ||||||||
Ratio of earnings to fixed charges | 23.6 | 39.0 | (A | ) | (A | ) | (A | ) | ||||||||||||
| (A) | Due to the Company’s losses in 2008, 2007 and 2006, 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 and $61,042, respectively, to achieve coverage of 1:1 in those years. |