Sallie Mae 2012 Annual Report Download - page 168

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
9. Stockholders’ Equity (Continued)
Common Stock
Our shareholders have authorized the issuance of 1.125 billion shares of common stock (par value of $.20).
At December 31, 2012, 453 million shares were issued and outstanding and 40 million shares were unissued but
encumbered for outstanding stock options, restricted stock units and dividend equivalent units for employee
compensation and remaining authority for stock-based compensation plans. The stock-based compensation plans
are described in “Note 11—Stock-Based Compensation Plans and Arrangements.”
In March 2011, we retired 70 million shares of common stock held in treasury. This retirement decreased
the balance in treasury stock by $1.9 billion, with corresponding decreases of $14 million in common stock and
$1.9 billion in additional paid-in capital. There was no impact to total equity from this transaction.
Dividend and Share Repurchase Program
In 2012, we increased the quarterly dividend on our common stock to $.125 per share, up from $.10 per
share in the prior year. In 2012, we authorized the repurchase of up to $900 million of outstanding common stock
in open market transactions and we repurchased 58.0 million shares for an aggregate purchase price of $900
million. In 2011, we repurchased 19.1 million shares of common stock at an aggregate price of $300 million
under our April 2011 share repurchase program that authorized up to $300 million of share repurchases.
The following table summarizes our common share repurchases and issuances.
Years Ended December 31,
2012 2011 2010
Common stock repurchased(1) ..................... 58,038,239 19,054,115 —
Average purchase price per share(2) ................ $ 15.52 $ 15.77 $ —
Shares repurchased related to employee stock-based
compensation plans(3) ......................... 4,547,785 3,024,662 1,097,647
Average purchase price per share .................. $ 15.86 $ 15.71 $ 13.44
Common shares issued(4) ......................... 6,432,643 3,886,217 1,803,683
(1) Common shares purchased under our share repurchase program, of which none remained available as of December 31, 2012.
(2) Average purchase price per share includes purchase commission costs.
(3) Comprises shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations
and shares tendered by employees to satisfy option exercise costs.
(4) Common shares issued under our various compensation and benefit plans.
The closing price of our common stock on December 31, 2012 was $17.13.
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