Sallie Mae 2005 Annual Report Download - page 154

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)
F-32
6. Goodwill and Acquired Intangible Assets (Continued)
of two subsidiaries that are no longer in use and to write-off the value of a favorable lease agreement
associated with a facility that closed in 2005.
A summary of changes in the Company’s goodwill by reportable segment is as follows:
(Dollars in millions)
January 1,
2005 Acquisitions
December 31,
2005
Lending ................................... $ 440 $ (30) $ 410
Debt Management Operations ............... 206 93 299
Corporate and Other........................ 57 7 64
Total...................................... $ 703 $ 70 $ 773
(Dollars in millions)
January 1,
2004 Acquisitions
December 31,
2004
Lending ................................... $ 195 $ 245 $ 440
Debt Management Operations ............... 88 118 206
Corporate and Other........................ 56 1 57
Total...................................... $ 339 $ 364 $ 703
In 2005, the Company acquired one debt management company and closed on the second step of the
acquisitions of a majority owned debt management company and a majority owned student lending
business as described in detail in Note 11, “Acquisitions.” In 2004, the Company acquired two student
lending and a majority stake in a debt management company. Accordingly, during 2005 and 2004, the
Company recorded goodwill of $98 million and $334 million, respectively, associated with these
acquisitions. During 2005 and 2004, the Company also finalized the purchase price allocations associated
with its 2004 and 2003 acquisitions, respectively, and adjusted goodwill for certain earn-out payments and
allocations associated with these prior acquisitions.