Sallie Mae 2009 Annual Report Download - page 177

7. Borrowings (Continued)
At December 31, 2009, the Company had outstanding long-term borrowings with call features totaling
$3.3 billion and $100 million of outstanding long-term borrowings that are putable by the investor to the
Company prior to the stated maturity date. Generally, these instruments are callable and putable at the par
amount. As of December 31, 2009, the stated maturities (for putable debt, the stated maturity date is the put
date) and maturities if accelerated to the call dates are shown in the following table:
Unsecured
Borrowings
Unsecured
Term Bank
Deposits
Secured
Borrowings Total
Unsecured
Borrowings
Unsecured
Term Bank
Deposits
Secured
Borrowings Total
Stated Maturity
(1)
Maturity to Call Date
(1)
December 31, 2009
Year of
Maturity
2010 . . ...... $ — $ — $ 6,882,823 $ 6,882,823 $ 1,434,248 $ 246,496 $ 16,784,947 $ 18,465,691
2011 . . ...... 6,372,950 1,425,425 12,923,080 20,721,455 6,526,521 1,446,423 9,121,664 17,094,608
2012 . . ...... 2,195,766 1,696,413 10,783,347 14,675,526 2,241,214 1,531,966 7,783,347 11,556,527
2013 . . ...... 2,812,148 775,155 9,149,050 12,736,353 2,785,701 758,760 7,149,050 10,693,511
2014 . . ...... 5,124,268 838,999 6,052,836 12,016,103 5,221,591 811,135 6,052,836 12,085,562
2015 . . ...... 710,055 — 5,889,838 6,599,893 798,924 — 5,889,838 6,688,762
2016-2047 . . . . 5,581,984 58,788 47,852,746 53,493,518 3,788,972 — 46,752,038 50,541,010
22,797,171 4,794,780 99,533,720 127,125,671 22,797,171 4,794,780 99,533,720 127,125,671
ASC 815 (gains)
losses on
derivative
hedging
activities . . . . 1,947,250 (5,557) 1,478,908 3,420,601 1,947,250 (5,557) 1,478,908 3,420,601
Total . . ...... $24,744,421 $4,789,223 $101,012,628 $130,546,272 $24,744,421 $4,789,223 $101,012,628 $130,546,272
(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 in year 2010 include $6.9 billion related to the on-balance sheet securitization trust debt.
Secured Borrowings
Variable Interest Entities (“VIEs”) are required 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. 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 is the
F-50
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)