Sallie Mae 2007 Annual Report Download - page 177

12. Stockholders’ Equity (Continued)
The following table summarizes the Company’s common share repurchase, issuance and equity forward
activity for the years ended December 31, 2007, 2006 and 2005.
(Shares in millions) 2007 2006 2005
Years Ended December 31,
Common shares repurchased:
Open market .......................................... 1.8 2.2 —
Equity forward contracts ................................. 4.2 5.4 17.3
Equity forward contracts agreed to be settled
(1)
................ 44.0 — —
Benefit plans
(2)
........................................ 3.3 1.6 1.5
Total shares repurchased ................................. 53.3 9.2 18.8
Average purchase price per share
(3)
......................... $44.59 $52.41 $49.94
Common shares issued .................................... 109.2 6.7 8.3
Equity forward contracts:
Outstanding at beginning of period ......................... 48.2 42.7 42.8
New contracts ......................................... — 10.9 17.2
Settlements ........................................... (4.2) (5.4) (17.3)
Agreed to be settled
(1)
................................... (44.0) — —
Outstanding at end of period .............................. — 48.2 42.7
Authority remaining at end of period to repurchase or enter into equity
forwards ............................................. 38.8 15.7 18.7
(1)
On December 31, 2007, the Company and Citibank agreed to physically settle the contract as detailed above. Consequently, the
common shares outstanding and shareholders’ equity on the Company’s year-end balance sheet reflect the physical settlement of
the equity forward contract. As of December 31, 2007, the 44 million shares under this equity forward contract are reflected in
treasury stock.
(2)
Shares withheld from stock option exercises and vesting of performance stock for employees’ tax withholding obligations and
shares tendered by employees to satisfy option exercise costs.
(3)
For equity forward contracts, the average purchase price per share for 2005 is calculated based on the average strike price of all
equity forward contracts including those whose strike prices were amended and were net settled in cashless transactions. There
were no such cashless transactions in 2006 or 2007.
The closing price of the Company’s common stock on December 31, 2007 was $20.14.
F-56
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)