Sallie Mae 2013 Annual Report Download - page 193

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Derivative Financial Instruments (Continued)
counterparties and the counterparties exercised their right to terminate, we would not be required to deliver
additional assets 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, 2013 December 31, 2012
(Dollars in millions)
Ending
Balance
%of
Balance
Ending
Balance
%of
Balance
Accrued interest receivable, net ..................... $2,161 30% $2,147 26%
Derivatives at fair value ........................... 1,624 22 2,241 27
Income tax asset, net current and deferred ............. 1,299 18 1,478 18
Accounts receivable .............................. 881 12 1,111 13
Benefit and insurance-related investments ............. 477 7 474 6
Fixed assets, net ................................. 237 3 215 3
Other loans, net .................................. 101 1 137 2
Other .......................................... 507 7 470 5
Total ........................................ $7,287 100% $8,273 100%
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, 2013 and 2012, these
balances included $1.6 billion and $2.4 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, 2013 and 2012, the cumulative mark-to-market adjustment to the hedged
debt was $(2.1) billion and $(2.8) billion, respectively.
9. Stockholders’ Equity
Preferred Stock
At December 31, 2013, 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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