Sallie Mae 2005 Annual Report Download - page 110

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In the above table, Treasury receipts and variable rate asset-backed securities, although generally
liquid assets, extend the weighted average remaining term to maturity of cash and investments to .7 years.
Long-term debt issuances likely to be called by us or putable by the investor have been categorized
according to their call or put dates rather than their maturity dates. In recent years the shift in the
composition of our FFELP student loan portfolio from Stafford loans to Consolidation Loans has
lengthened the Managed weighted average life of the student loan portfolio from 8.2 years at
December 31, 2004, to 9.0 years at December 31, 2005.
COMMON STOCK
The following table summarizes our common share repurchases, issuances and equity forward activity
for the years ended December 31, 2005 and 2004.
Years ended
December 31,
(Shares in millions) 2005 2004
Common shares repurchased:
Open market....................................... — .5
Equity forwards .................................... 17.3 32.7
Benefit plans(1) ..................................... 1.5 1.5
Total sharesrepurchased ............................ 18.8 34.7
Average purchase price per share(2) ................... $ 49.94 $ 38.03
Common shares issued ................................ 8.3 10.7
Equity forward contracts:
Outstanding at beginning of period.................... 42.8 43.5
New contracts...................................... 17.2 32.0
Exercises .......................................... (17.3) (32.7)
Outstanding at end of period......................... 42.7 42.8
Authority remaining at end of period to repurchase or enter
into equity forwards................................. 18.7 35.8
(1) Includes shares withheld from stock option exercises and vesting of performance stock to satisfy
minimum statutory tax withholding obligations and shares tendered by employees to satisfy option
exercise costs.
(2) The average purchase price per share for 2005 and 2004 is calculated based on the average strike price
of all equity forward contracts including those that were net settled in the cashless transactions
discussed above. The average cash purchase price per share for 2005 and 2004 is $38.97 and $22.38,
respectively, when a zero cash cost is reflected for those shares acquired in the cashless transactions.
During December 2005, September 2004 and November 2004, we amended substantially all of our
outstanding equity forward purchase contracts. The strike prices on these contracts were adjusted to the
then current market share prices of the common stock and the total number of shares under contract was
reduced from 46.5 million, 53.4 million and 49.0 million shares to 42.4 million, 46.7 million and 42.2 million
shares, respectively. As a result of these amendments, we received a total of 4.1 million and 13.4 million
shares that settled in 2005 and 2004, respectively, free and clear in cashless transactions. This reduction of
shares covered by the equity forward contracts is shown on a net basis in the “exercises” row of the table
above.