EX-12 7 nruexhibit12.htm RATIO OF EARNINGS TO FIXED CHARGES NRU Exhibit 12


Exhibit 12
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORPORATION

Computation of Ratio of Earnings to Fixed Charges

For the years ended May 31, 2014, 2013, 2012, 2011 and 2010


(Dollars in thousands)
 
2014
 
 
2013
 
 
2012
 
 
2011
 
 
2010
 
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
192,926

 
 
$
358,087

 
 
$
(148,797
)
 
 
$
151,215

 
 
$
110,547

 
Add: Fixed charges
 
654,655

 
 
692,025

 
 
761,849

 
 
841,288

 
 
912,227

 
Less: Interest capitalized (2)
 
—

 
 
—

 
 
(71
)
 
 
(208
)
 
 
(116
)
 
Income available for fixed charges
 
$
847,581

 
 
$
1,050,112

 
 
$
612,981

 
 
$
992,295

 
 
$
1,022,658

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest on all borrowings (3)
 
$
654,655

 
 
$
692,025

 
 
$
761,778

 
 
$
841,080

 
 
$
912,111

 
Interest capitalized
 
—

 
 
—

 
 
71

 
 
208

 
 
116

 
Total fixed charges
 
$
654,655

 
 
$
692,025

 
 
$
761,849

 
 
$
841,288

 
 
$
912,227

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1)
 
1.29

 
 
1.52

 
 
—

 
 
1.18

 
 
1.12

 
(1) Earnings available to cover fixed charges were insufficient by $149 million in fiscal year 2012.
(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.