Sallie Mae 2012 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, 2012 December 31, 2011
(Dollars in millions)
Short
Term
Long
Term Total
Short
Term
Long
Term Total
Unsecured borrowings:
Senior unsecured debt .................. $ 2,319 $ 15,446 $ 17,765 $ 1,801 $ 15,199 $ 17,000
Brokered deposits ..................... 979 3,088 4,067 1,733 1,956 3,689
Retail and other deposits ................ 3,247 — 3,247 2,123 — 2,123
Other(1) .............................. 1,609 — 1,609 1,329 — 1,329
Total unsecured borrowings ........... 8,154 18,534 26,688 6,986 17,155 24,141
Secured borrowings:
FFELP Loan securitizations ............. — 105,525 105,525 — 107,905 107,905
Private Education Loan securitizations ..... — 19,656 19,656 — 19,297 19,297
ED Conduit Program Facility ............ 9,551 — 9,551 21,313 — 21,313
FFELP ABCP Facility .................. — 4,154 4,154 — 4,445 4,445
Private Education Loan ABCP Facility .... — 1,070 1,070 — 1,992 1,992
Acquisition financing(2) ................. — 673 673 — 916 916
FHLB-DM Facility .................... 2,100 — 2,100 1,210 — 1,210
Total secured borrowings ............. 11,651 131,078 142,729 22,523 134,555 157,078
Total before hedge accounting
adjustments ........................ 19,805 149,612 169,417 29,509 151,710 181,219
Hedge accounting adjustments ........... 51 2,789 2,840 64 2,683 2,747
Total ............................... $19,856 $152,401 $172,257 $29,573 $154,393 $183,966
(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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