Sallie Mae 2005 Annual Report Download - page 192

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)
F-70
18. Segment Reporting (Continued)
Year ended December 31, 2004
(Dollars in millions) Lending DMO
Corporate
and Other
Segment
Totals Adjustments
Total
GAAP
Interest income:
FFELP Stafford and Other Student Loans. . . $ 1,715 $ — $ — $ 1,715 $ (990 ) $ 725
Consolidation Loans ...................... 1,473 — — 1,473 (108 ) 1,365
Private Education Loans .................. 613 — — 613 (277 ) 336
Other loans.............................. 74 — — 74 — 74
Cash and investments..................... 267 — — 267 (34 ) 233
Total interestincome....................... 4,142 — — 4,142 (1,409 ) 2,733
Total interestexpense....................... 2,320 — — 2,320 (886 ) 1,434
Net interest income......................... 1,822 — — 1,822 (523 ) 1,299
Less: provisionsfor losses ................... 114 — — 114 (3 ) 111
Net interest income after provisions for losses . 1,708 — — 1,708 (520 ) 1,188
Fee income................................ — 300 120 420 — 420
Collections revenue ........................ — 39 — 39 — 39
Other income.............................. 131 — 130 261 1,765 2,026
Loss on GSEdebt and extinguishment........ 221 — — 221 — 221
Operating expenses......................... 409 159 291 859 36 895
Income tax expense (benefit)(1) ............... 430 65 (15) 480 162 642
Minority interest in net earnings of subsidiaries — 1 — 1 — 1
Net income (loss) .......................... $ 779 $114 $(26) $ 867 $ 1,047 $1,914
Year Ended December 31, 2003
(Dollars in millions) Lending DMO
Corporate
and Other
Segment
Totals Adjustments
Total
GAAP
Interest income:
FFELP Stafford and Other Student Loans . . $ 1,494 $ — $ — $ 1,494 $ (839 ) $ 655
Consolidation Loans...................... 1,172 — — 1,172 (14 ) 1,158
Private Education Loans.................. 427 — — 427 (120 ) 307
Other loans.............................. 77 — — 77 — 77
Cash and investments..................... 163 — — 163 (12 ) 151
Total interestincome....................... 3,333 — — 3,333 (985 ) 2,348
Total interestexpense....................... 1,681 — — 1,681 (659 ) 1,022
Net interest income......................... 1,652 — — 1,652 (326 ) 1,326
Less: provisionsfor losses ................... 130 — — 130 17 147
Net interest income after provisions for losses . 1,522 — — 1,522 (343 ) 1,179
Fee income................................ — 259 128 387 — 387
Other income.............................. 121 — 123 244 1,168 1,412
Operating expenses......................... 414 123 231 768 27 795
Income tax expense(1) ....................... 407 45 7 459 320 779
Cumulative effect of accounting change ....... — — — — 130 130
Netincome................................ $ 822 $ 91 $ 13 $ 926 $ 608 $1,534
(1) Income taxes are based on a percentage of net income before tax for the individual reportable segment.