Sallie Mae 2012 Annual Report Download - page 96

Common Stock
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.
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 27 million shares were unissued but
encumbered for outstanding stock options 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.
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 January 26, 2012, we increased the quarterly dividend on our common stock to $.125 per share, up from
$.10 per share in the prior quarter. We paid our quarterly dividend on March 16, 2012, June 15, 2012,
September 21, 2012 and December 21, 2012. In 2012, we authorized the repurchase of up to $900 million of
outstanding common stock in open market transactions. During 2012, 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.
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