Attached files
| file | filename |
|---|---|
| 10-K/A - FORM 10-K/A - SLM Corp | w82805e10vkza.htm |
| EX-31.2 - EX-31.2 - SLM Corp | w82805exv31w2.htm |
| EX-31.1 - EX-31.1 - SLM Corp | w82805exv31w1.htm |
| EX-32.2 - EX-32.2 - SLM Corp | w82805exv32w2.htm |
| EX-32.1 - EX-32.1 - SLM Corp | w82805exv32w1.htm |
Exhibit 12.1
SLM CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
| 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||
Income (loss) from continuing operations before income
taxes |
$ | 1,901,944 | $ | (553,888 | ) | $ | (34,213 | ) | $ | 807,878 | $ | 1,090,299 | ||||||||
Add: Fixed charges |
5,128,460 | 7,091,177 | 5,909,338 | 3,037,524 | 2,279,139 | |||||||||||||||
Total earnings |
$ | 7,030,404 | $ | 6,537,289 | $ | 5,875,125 | $ | 3,845,402 | $ | 3,369,438 | ||||||||||
Interest expense |
$ | 5,122,855 | $ | 7,085,772 | $ | 5,905,418 | $ | 3,035,639 | $ | 2,274,771 | ||||||||||
Rental expense, net of income |
5,605 | 5,405 | 3,920 | 1,885 | 4,368 | |||||||||||||||
Total fixed charges |
5,128,460 | 7,091,177 | 5,909,338 | 3,037,524 | 2,279,139 | |||||||||||||||
Preferred stock dividends |
60,207 | 36,497 | 110,556 | 172,799 | 130,635 | |||||||||||||||
Total fixed charges and preferred stock dividends |
$ | 5,188,667 | $ | 7,127,674 | $ | 6,019,894 | $ | 3,210,323 | $ | 2,409,774 | ||||||||||
Ratio of earnings to fixed charges(1)(2) |
1.37 | — | — | 1.27 | 1.48 | |||||||||||||||
Ratio of earnings to fixed charges
and preferred stock dividends(1)(3) |
1.35 | — | — | 1.20 | 1.40 | |||||||||||||||
| (1) | For purposes of computing these ratios, earnings represent income (loss) from continuing operations 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. | |
| (2) | Due to pre-tax losses from continuing operations of $554 million and $34 million for the years ended December 31, 2007 and 2008, respectively, the ratio coverage was less than 1:1. We would have needed to generate $554 million and $34 million of additional earnings in the years ended December 31, 2007 and 2008, respectively, for the ratio coverage to equal 1:1. | |
| (3) | Due to pre-tax losses from continuing operations of $554 million and $34 million for the years ended December 31, 2007 and 2008, respectively, the ratio coverage was less than 1:1. We would have needed to generate $590 million and $145 million of additional earnings in the years ended December 31, 2007 and 2008, respectively, for the ratio coverage to equal 1:1. |