Sallie Mae 2008 Annual Report Download - page 156

5. Investments (Continued)
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
December 31, 2007
Investments
Available-for-sale
U.S. Treasury and other U.S. government
agency obligations:
U.S. Treasury backed securities ........ $ 772,905 $66,400 $ — $ 839,305
U.S. Treasury securities and other U.S.
government agency obligations ....... 45,173 — (31) 45,142
Other securities:
Certificates of Deposit ............... 600,000 — — 600,000
Asset-backed securities............... 35,994 — (146) 35,848
Commercial paper and asset-backed
commercial paper . . ............... 1,349,367 — — 1,349,367
Other ............................ 1,574 104 — 1,678
Total investment securities
available-for-sale ................... $2,805,013 $66,504
(1)
$(177) $2,871,340
Restricted Investments
Available-for-sale
Guaranteed investment contracts.......... $ 76,734 — — $ 76,734
Other.............................. 27,321 — — 27,321
Total restricted investments
available-for-sale ................... $ 104,055 $ — $ — $ 104,055
Held-to-maturity
Guaranteed investment contracts.......... $ 5,500 $ — $ — $ 5,500
Other securities ...................... 215 — — 215
Total restricted investments
held-to-maturity .................... $ 5,715 $ — $ — $ 5,715
(1)
Includes unrealized gains totaling $10 million for the investments designated as the hedged items in a SFAS No. 133 fair value hedge.
These gains have been recorded in the “gains (losses) on derivative hedging activities, net” line in the consolidated statements of
income along with the gain (loss) related to the derivatives hedging such investments.
In addition to the restricted investments detailed above, at December 31, 2008 and 2007, the Company
had restricted cash of $3.5 billion and $4.5 billion, respectively.
As of December 31, 2008 and 2007, $2 million and $41 million of the net unrealized gain (after tax)
related to available-for-sale investments was included in accumulated other comprehensive income. As of
December 31, 2008 and 2007, $26 million (none of which is in restricted cash and investments on the balance
sheet) and $196 million (none of which is in restricted cash and investments on the balance sheet),
respectively, of available-for-sale investment securities were pledged as collateral.
F-36
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)