Sallie Mae 2008 Annual Report Download - page 108

When compared with the GAAP presentation, the Managed basis presentation includes all of our off-
balance sheet assets and funding, and also includes basis swaps that primarily convert quarterly three-month
LIBOR to other indices that are more correlated to our asset indices.
Weighted Average Life
The following table reflects the weighted average life for our Managed earning assets and liabilities at
December 31, 2008 and 2007.
(Averages in Years)
On-Balance
Sheet Managed
On-Balance
Sheet Managed
December 31,
2008
December 31,
2007
Earning assets
Student loans ............................. 7.8 7.9 9.0 8.9
Other loans ............................... 5.7 5.7 5.0 5.0
Cash and investments ....................... .2 .1 .2 .2
Total earning assets ......................... 7.4 7.5 8.0 8.0
Borrowings
Short-term borrowings....................... .3 .3 .2 .2
Long-term borrowings....................... 6.8 6.7 6.6 6.4
Total borrowings ........................... 5.0 5.3 5.0 5.2
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.
Foreign Currency Exchange Rate Exposure
Foreign currency exchange rate exposure is primarily the result of foreign denominated liabilities issued
by the Company. Cross-currency interest rate swaps are used to lock-in the exchange rate for the term of the
liability. In addition, the Company has foreign exchange rate exposure as a result of international operations;
however, the exposure is minimal at this time.
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