Sallie Mae 2011 Annual Report Download - page 93

of common shares they would most likely receive if the preferred stock they held mandatorily converted to
common shares in the fourth quarter of 2010) plus (2) a discounted amount of the preferred stock dividends the
holders of the preferred stock would have received if they held the preferred stock through the mandatory
conversion date. The accounting treatment for this conversion resulted in additional dividends recorded as part of
preferred stock dividends for the year of approximately $53 million.
On December 15, 2010, the mandatory conversion date, the remaining 810,370 shares of our Series C
Preferred Stock were converted into 41 million shares of common stock.
Dividend and Share Repurchase Program
On June 17, 2011, September 16, 2011, and December 16, 2011, we paid a quarterly dividend of $.10 per
share on our common stock, the first dividends paid since early 2007. In April 2011, we authorized the
repurchase of up to $300 million of outstanding common stock in open market transactions and terminated all
previous authorizations. During the second and third quarters of 2011, we repurchased 19.1 million shares for an
aggregate purchase price of $300 million. With this action, we fully utilized this share repurchase authorization.
On January 26, 2012, we increased the quarterly dividend on our common stock to $.125 per share. The next
such quarterly dividend will be paid on March 16, 2012. We also authorized the repurchase of up to $500 million
of outstanding common stock in open market transactions.
91