EX-12.1 2 navi-ex121_190.htm EX-12.1 navi-ex121_190.htm

Exhibit 12.1

NAVIENT CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in millions)

 

 

 

Years Ended December 31,

 

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

Income before income taxes

 

$

1,818

 

 

$

1,580

 

 

$

1,108

 

 

$

764

 

 

$

528

 

Add:  Fixed charges

 

 

2,066

 

 

 

2,077

 

 

 

2,445

 

 

 

2,975

 

 

 

3,672

 

Total earnings

 

$

3,884

 

 

$

3,657

 

 

$

3,553

 

 

$

3,739

 

 

$

4,200

 

Interest expense

 

$

2,063

 

 

$

2,074

 

 

$

2,441

 

 

$

2,971

 

 

$

3,668

 

Rental expense, net of income

 

 

3

 

 

 

3

 

 

 

4

 

 

 

4

 

 

 

4

 

Total fixed charges

 

 

2,066

 

 

 

2,077

 

 

 

2,445

 

 

 

2,975

 

 

 

3,672

 

Preferred stock dividends

 

 

10

 

 

 

-

 

 

 

—

 

 

 

—

 

 

 

—

 

Total fixed charges and preferred stock

    dividends

 

$

2,076

 

 

$

2,077

 

 

$

2,445

 

 

$

2,975

 

 

$

3,672

 

Ratio of earnings to fixed charges(1)

 

 

1.88

 

 

 

1.76

 

 

 

1.45

 

 

 

1.26

 

 

 

1.14

 

Ratio of earnings to fixed charges and preferred

   stock dividends(1)

 

 

1.87

 

 

 

1.76

 

 

 

1.45

 

 

 

1.26

 

 

 

1.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.