Exhibit 12
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION
Computation of Ratio of Earnings to Fixed Charges
Nine Months Ended | ||||||||||||||||||||||||
February 28, | Year Ended May 31, | |||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012(1) | 2011 | 2010 | 2009(1) | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Net income (loss) | $ | 211,799 | $ | 358,087 | $ | (148,797 | ) | $ | 151,215 | $ | 110,547 | $ | (73,770 | ) | ||||||||||
Add: Fixed charges | 496,464 | 692,025 | 761,849 | 841,288 | 912,227 | 935,194 | ||||||||||||||||||
Less: Interest capitalized(2) | - | - | (71 | ) | (208 | ) | (116 | ) | (173 | ) | ||||||||||||||
Income available for fixed charges | $ | 708,263 | $ | 1,050,112 | $ | 612,981 | $ | 992,295 | $ | 1,022,658 | $ | 861,251 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on all borrowings(3) | $ | 496,464 | $ | 692,025 | $ | 761,778 | $ | 841,080 | $ | 912,111 | $ | 935,021 | ||||||||||||
Interest capitalized(2) | - | 71 | 208 | 116 | 173 | |||||||||||||||||||
Total fixed charges | $ | 496,464 | $ | 692,025 | $ | 761,849 | $ | 841,288 | $ | 912,227 | $ | 935,194 | ||||||||||||
Ratio of earnings to fixed charges | 1.43 | 1.52 | - | 1.18 | 1.12 | - |
(1)Earnings available to cover fixed charges were insufficient by $149 million and $74 million in 2012 and 2009, respectively.
(2)Interest capitalized consists of interest paid in connection with financing the construction of our new headquarters building during the construction period.
(3)Interest expense includes the amortization of discounts and issuance costs.