Sallie Mae 2011 Annual Report Download - page 152

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Borrowings
Borrowings consist of secured borrowings issued through our securitization program, borrowings through
secured facilities and participation programs, unsecured notes issued by us, term and other deposits at the Bank,
and other interest-bearing liabilities related primarily to obligations to return cash collateral held. To match the
interest rate and currency characteristics of our borrowings with the interest rate and currency characteristics of
our assets, we enter into interest rate and foreign currency swaps with independent parties. Under these
agreements, we make periodic payments, generally indexed to the related asset rates or rates which are highly
correlated to the asset rates, in exchange for periodic payments which generally match our interest obligations on
fixed or variable rate notes (see “Note 7 — Derivative Financial Instruments”). Payments and receipts on our
interest rate and currency swaps are not reflected in the following tables.
The following table summarizes our borrowings.
December 31, 2011 December 31, 2010
(Dollars in millions)
Short
Term
Long
Term Total
Short
Term
Long
Term Total
Unsecured borrowings:
Senior unsecured debt .................. $ 1,801 $ 15,199 $ 17,000 $ 4,361 $ 15,742 $ 20,103
Brokered deposits ..................... 1,733 1,956 3,689 1,387 3,160 4,547
Retail and other deposits ................ 2,123 — 2,123 1,370 — 1,370
Other(1) .............................. 1,329 — 1,329 887 — 887
Total unsecured borrowings ........... 6,986 17,155 24,141 8,005 18,902 26,907
Secured borrowings:
FFELP Loans securitizations ............ — 107,905 107,905 — 113,671 113,671
Private Education Loans securitizations .... — 19,297 19,297 — 21,409 21,409
ED Conduit Program Facility ............ 21,313 — 21,313 24,484 — 24,484
FFELP ABCP Facility .................. — 4,445 4,445 — 5,853 5,853
Private Education Loans ABCP Facility .... — 1,992 1,992 — — —
Acquisition financing(2) ................. — 916 916 — 1,064 1,064
FHLB-DM Facility .................... 1,210 — 1,210 900 — 900
Total secured borrowings ............. 22,523 134,555 157,078 25,384 141,997 167,381
Total before hedge accounting
adjustments ........................ 29,509 151,710 181,219 33,389 160,899 194,288
Hedge accounting adjustments ........... 64 2,683 2,747 227 2,644 2,871
Total ............................... $29,573 $154,393 $183,966 $33,616 $163,543 $197,159
(1) “Other” primarily consists of the obligation to return cash collateral held related to derivative exposures.
(2) Relates to the acquisition of $25 billion of student loans at the end of 2010.
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