Sallie Mae 2011 Annual Report Download - page 169

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Derivative Financial Instruments (Continued)
counterparties (including accrued interest and net of premiums receivable) of $306 million and have posted $302
million of collateral to these counterparties. If the credit contingent feature was triggered for these two
counterparties and the counterparties exercised their right to terminate, we would be required to deliver
additional assets totaling $4 million to settle the contracts. Trust related derivatives do not contain credit
contingent features related to our or the trusts’ credit ratings.
8. Other Assets
The following table provides the detail of our other assets.
December 31, 2011 December 31, 2010
(Dollars in millions)
Ending
Balance
%of
Balance
Ending
Balance
%of
Balance
Accrued interest receivable ........................... $2,484 29% $2,927 33%
Derivatives at fair value .............................. 2,202 25 2,437 27
Income tax asset, net current and deferred ............... 1,427 17 1,283 14
Accounts receivable — general ........................ 1,392 16 730 8
Benefit and insurance-related investments ............... 466 5 462 5
Fixed assets, net .................................... 214 3 291 4
Other loans, net .................................... 193 2 271 3
Other ............................................ 280 3 569 6
Total ........................................... $8,658 100% $8,970 100%
The “Derivatives at fair value” line in the above table represents the fair value of our derivatives in a gain
position by counterparty, exclusive of accrued interest and collateral. At December 31, 2011 and 2010, these
balances included $2.5 billion and $2.7 billion, respectively, of cross-currency interest rate swaps and interest
rate swaps designated as fair value hedges that were offset by an increase in interest-bearing liabilities related to
the hedged debt. As of December 31, 2011 and 2010, the cumulative mark-to-market adjustment to the hedged
debt was $(2.7) billion and $(2.9) billion, respectively.
9. Stockholders’ Equity
Preferred Stock
At December 31, 2011, we had outstanding 3.3 million shares of 6.97 percent Cumulative Redeemable
Preferred Stock, Series A (the “Series A Preferred Stock”) and 4.0 million shares of Floating-Rate
Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”). Neither series has a maturity date
but can be redeemed at our option. Redemption would include any accrued and unpaid dividends up to the
redemption date. The shares have no preemptive or conversion rights and are not convertible into or
exchangeable for any of our other securities or property. Dividends on both series are not mandatory and are paid
quarterly, when, as, and if declared by the Board of Directors. Holders of Series A Preferred Stock are entitled to
receive cumulative, quarterly cash dividends at the annual rate of $3.485 per share. Holders of Series B Preferred
Stock are entitled to receive quarterly dividends based on 3-month LIBOR plus 170 basis points per annum in
arrears. Upon liquidation or dissolution of the Company, holders of the Series A and Series B Preferred Stock are
entitled to receive $50 and $100 per share, respectively, plus an amount equal to accrued and unpaid dividends
for the then current quarterly dividend period, if any, pro rata, and before any distribution of assets are made to
holders of our common stock.
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