Sallie Mae 2006 Annual Report Download - page 156

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8. Long-Term Borrowings (Continued)
Ending
Balance
Weighted
Average
Interest
Rate
Average
Balance
December 31, 2005 Year Ended
December 31,
2005
Floating rate notes:
U.S. dollar denominated:
Interest bearing, due 2007-2047 ................. $56,340,243 4.41% $49,708,841
Non U.S. dollar denominated:
Australian dollar — denominated, due 2009-2010 .... 389,035 5.98 210,264
Euro — denominated, due 2007-2041 ............. 6,165,689 2.42 4,727,401
Singapore dollar — denominated, due 2009 ........ 30,000 3.45 30,000
Sterling-denominated, due 2007-2039 ............. 774,833 4.78 725,025
Total floating rate notes .......................... 63,699,800 4.23 55,401,531
Fixed rate notes:
U.S. dollar denominated:
Interest bearing, due 2007-2043 ................. 13,396,025 4.87 13,211,202
Non U.S. dollar denominated:
Australian dollar-denominated, due 2009-2012 ...... 566,402 6.34 402,749
Canadian dollar-denominated, due 2009-2010 ....... 552,612 4.11 251,804
Euro-denominated, due 2007-2039 ............... 5,293,439 4.08 4,714,596
Hong Kong dollar-denominated, due 2010-2015 ..... 139,267 4.67 82,710
Japanese yen-denominated, due 2009-2035 ......... 728,350 1.78 575,460
Singapore dollar-denominated, due 2014 .......... 60,837 3.90 58,822
Sterling-denominated, due 2007-2039 ............. 3,326,647 5.21 2,986,037
Swiss franc-denominated, due 2009 .............. 153,888 2.75 161,411
New Zealand dollar-denominated, due 2010 ........ 201,823 6.85 111,776
Total fixed rate notes ............................ 24,419,290 4.67 22,556,567
Total long-term borrowings ........................ $88,119,090 4.35% $77,958,098
At December 31, 2006 and 2005, the Company had $55.1 billion and $47.2 billion, respectively, of long-
term debt outstanding (cost basis), which is on-balance sheet secured securitization trust debt (including asset-
backed commercial paper). The Company also had $2.9 billion and $3.4 billion of long-term debt outstanding
as of December 31, 2006 and 2005, respectively, related to additional secured, limited obligation or non-
recourse borrowings related to several indenture trusts. The face value of on-balance sheet student loans that
secured this debt was $56 billion and $52 billion as of December 31, 2006 and 2005, respectively.
To match the interest rate and currency characteristics of its long-term borrowings with the interest rate
and currency characteristics of its assets, the Company enters into interest rate and foreign currency swaps
with independent parties. Under these agreements, the Company makes periodic payments, generally indexed
to the related asset rates, or rates which are highly correlated to the asset rates, in exchange for periodic
payments which generally match the Company’s interest and foreign currency obligations on fixed or variable
rate borrowings (see Note 10, “Derivative Financial Instruments”). Payments and receipts on the Company’s
F-37
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)