Sallie Mae 2008 Annual Report Download - page 166

7. Borrowings (Continued)
amount. As of December 31, 2008, the stated maturities (for putable debt, the stated maturity date is the put
date) and maturities if accelerated to the call dates for long-term borrowings are shown in the following table:
Unsecured
Borrowings
Term Bank
Deposits
Secured
Borrowings Total
Unsecured
Borrowings
Term Bank
Deposits
Secured
Borrowings Total
Stated Maturity
(1)
Maturity to Call Date
(1)
December 31, 2008
Year of Maturity
2009 . . . ............. $ — $ — $6,721,874 $ 6,721,874 $ 1,322,460 $ — $ 8,111,522 $ 9,433,982
2010 . . . ............. 7,091,836 624,248 7,130,332 14,846,416 7,205,102 624,248 7,066,784 14,896,134
2011 . . . ............. 7,091,335 103,023 7,259,977 14,454,335 7,244,961 103,023 7,259,977 14,607,961
2012 . . . ............. 2,329,048 82,599 6,765,332 9,176,979 2,374,496 82,599 6,765,332 9,222,427
2013 . . . ............. 2,995,195 298,777 6,496,422 9,790,394 2,968,748 298,777 6,496,422 9,763,947
2014 . . . ............. 5,360,369 — 6,287,831 11,648,200 5,457,677 — 6,287,831 11,745,508
2015-2047 ............ 6,313,716 — 41,910,911 48,224,627 4,608,055 — 40,584,811 45,192,866
31,181,499 1,108,647 82,572,679 114,862,825 31,181,499 1,108,647 82,572,679 114,862,825
SFAS No. 133 (gains) losses
on derivative hedging
activities ............ 2,489,764 — 872,205 3,361,969 2,489,764 — 872,205 3,361,969
Total . . . ............. $33,671,263 $1,108,647 $83,444,884 $118,224,794 $33,671,263 $1,108,647 $83,444,884 $118,224,794
(1)
The Company views its on-balance sheet securitization trust debt as long-term based on the contractual maturity dates and projects the
expected principal paydowns based on the Company’s current estimates regarding loan prepayment speeds. The projected principal
paydowns of $6.7 billion shown in year 2009 relate to the on-balance sheet securitization trust debt.
Secured Borrowings
FIN No. 46(R), “Consolidation of Variable Interest Entities,” requires VIEs to be consolidated by their
primary beneficiaries. A VIE exists when either the total equity investment at risk is not sufficient to permit
the entity to finance its activities by itself, or the equity investors lack one of three characteristics associated
with owning a controlling financial interest. Those characteristics are the direct or indirect ability to make
decisions about an entity’s activities that have a significant impact on the success of the entity, the obligation
to absorb the expected losses of an entity, and the rights to receive the expected residual returns of the entity.
The Company currently consolidates a number of financing entities that are VIEs as a result of being the
entities’ primary beneficiary and as a result these financing VIEs are accounted for as secured borrowings.
The process of identifying the primary beneficiary involves identifying all other parties that hold variable
interests in the entity and determining which of the parties, including the Company, has the responsibility to
absorb the majority of the entity’s expected losses or the rights to its expected residual returns. The Company
F-46
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)