Sallie Mae 2006 Annual Report Download - page 194

18. Segment Reporting (Continued)
Lending DMO
Corporate
and Other
Total “Core
Earnings” Adjustments
(2)
Total
GAAP
Year Ended December 31, 2005
(Dollars in millions)
Interest income:
FFELP Stafford and Other Student Loans . . $2,298 $ — $ — $2,298 $(1,283) $1,015
FFELP Consolidation Loans . . . ......... 3,014 — — 3,014 (514) 2,500
Private Education Loans ............... 1,160 — — 1,160 (526) 634
Other loans......................... 85 — — 85 — 85
Cash and investments ................. 396 — 5 401 (125) 276
Total interest income ................... 6,953 — 5 6,958 (2,448) 4,510
Total interest expense ................... 4,798 19 6 4,823 (1,764) 3,059
Net interest income .................... 2,155 (19) (1) 2,135 (684) 1,451
Less: provisions for losses ............... 138 — — 138 65 203
Net interest income after provisions for
losses ............................. 2,017 (19) (1) 1,997 (749) 1,248
Fee income .......................... — 360 115 475 — 475
Collections revenue .................... — 167 — 167 — 167
Other income ......................... 111 — 125 236 1,129 1,365
Total other income ..................... 111 527 240 878 1,129 2,007
Operating expenses..................... 547 288 235 1,070 68 1,138
Income before income taxes and minority
interest in net earnings of subsidiaries ..... 1,581 220 4 1,805 312 2,117
Income tax expense
(1)
................... 586 81 1 668 61 729
Minority interest in net earnings of
subsidiaries......................... 2 4 — 6 — 6
Net income .......................... $ 993 $135 $ 3 $1,131 $ 251 $1,382
(1)
Income taxes are based on a percentage of net income before tax for the individual reportable segment.
(2)
“Core Earnings” adjustments to GAAP:
Net Impact of
Securitization
Accounting
Net Impact of
Derivative
Accounting
Net Impact of
Floor Income
Net Impact
of Acquired
Intangibles
(A)
Total
Year Ended December 31, 2005
(Dollars in millions)
Net interest income . . . ....................... $(867) $387 $(204) $ — $ (684)
Less: provisions for losses ...................... 65 — — — 65
Net interest income after provisions for losses . ........ (932) 387 (204) — (749)
Fee income . . . ............................ — — — — —
Collections revenue . . . ....................... — — — —
Other income . . ............................ 879 250 — — 1,129
Total other income ........................... 879 250 — — 1,129
Operating expenses . . . ....................... 7 — — 61 68
Total pre-tax “Core Earnings” adjustments to GAAP . . . . . $ (60) $637 $(204) $(61) 312
Income tax expense . . . ....................... 61
Minority interest in net earnings of subsidiaries ........ —
Total “Core Earnings” adjustments to GAAP . . . ....... $ 251
(A)
Represents goodwill and intangible impairment and the amortization of acquired intangibles.
F-75
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)