Sallie Mae 2005 Annual Report Download - page 115

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contracts used in the Company’s share repurchase program. A hypothetical decrease in the Company’s
stock price per share of $5.00 and $10.00 would decrease “unrealized gains (losses) on derivative and
hedging activities” by $213 million and $426 million, respectively. In addition to the net income impact,
other assets would decrease by the aforementioned amounts. Stock price decreases can also result in the
counterparty exercising its right to demand early settlement on a portion of or the total contract depending
on trigger prices set in each contract. With the $5.00 and $10.00 decrease in unit stock price above, none of
these triggers would be met and no counterparty would have the right to early settlement.
Item 8. Financial Statements and Supplementary Data
Reference is made to the financial statements listed under the heading “(a)1.A. Financial Statements”
of Item 15 hereof, which financial statements are incorporated by reference in response to this Item 8.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Nothing to report.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of
December 31, 2005. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer
concluded that, as of December 31, 2005, our disclosure controls and procedures were effective to ensure
that information required to be disclosed by us in the reports that we file or submit under the Exchange
Act is (a) recorded, processed, summarized and reported within the time periods specified in the SEC’s
rules and forms and (b) accumulated and communicated to our management, including our Chief
Executive Officer and Chief Financial Officer as appropriate to allow timely decisions regarding required
disclosure.
Changes in Internal Control Over Financial Reporting
No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) under the Securities Exchange Act of 1934, as amended) occurred during the fiscal quarter
ended December 31, 2005 that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.
Item 9B. Other Information
Nothing to report.