Sallie Mae 2006 Annual Report Download - page 195

18. Segment Reporting (Continued)
Lending DMO
Corporate
and Other
Total ‘‘Core
Earnings” Adjustments
(2)
Total
GAAP
Year Ended December 31, 2004
(Dollars in millions)
Interest income:
FFELP Stafford and Other Student Loans . . $1,715 $ — $ — $1,715 $ (990) $ 725
FFELP Consolidation Loans ............ 1,473 — — 1,473 (108) 1,365
Private Education Loans ............... 613 — — 613 (277) 336
Other loans ........................ 74 — — 74 — 74
Cash and investments ................. 264 — 3 267 (34) 233
Total interest income ................... 4,139 — 3 4,142 (1,409) 2,733
Total interest expense ................... 2,301 13 6 2,320 (886) 1,434
Net interest income .................... 1,838 (13) (3) 1,822 (523) 1,299
Less: provisions for losses ............... 114 — — 114 (3) 111
Net interest income after provisions for
losses ............................. 1,724 (13) (3) 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
Total other income ..................... 131 339 250 720 1,765 2,485
Loss on GSE debt extinguishment ......... 221 — — 221 — 221
Operating expenses .................... 487 161 211 859 36 895
Income before income taxes and minority
interest in net earnings of subsidiaries ..... 1,147 165 36 1,348 1,209 2,557
Income tax expense
(1)
................... 430 65 (15) 480 162 642
Minority interest in net earnings of
subsidiaries ........................ — 1 — 1 — 1
Net income . . ........................ $ 717 $ 99 $ 51 $ 867 $1,047 $1,914
(1)
Income taxes are based on a percentage of net income (loss) 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, 2004
(Dollars in millions)
Net interest income . . . ....................... $(1,080) $ 713 $(156) $ — $ (523)
Less: provisions for losses ...................... (3) — — — (3)
Net interest income after provisions for losses . ........ (1,077) 713 (156) — (520)
Fee income . . . ............................ — — — — —
Collections revenue . . . ....................... — — — — —
Other income . . ............................ 925 840 — — 1,765
Total other income ........................... 925 840 — — 1,765
Loss on GSE debt extinguishment ................. — — — — —
Operating expenses . . . ....................... — — — 36 36
Total pre-tax “Core Earnings” adjustments to GAAP . . . . . $ (152) $1,553 $(156) $(36) 1,209
Income tax expense . . . ....................... 162
Minority interest in net earnings of subsidiaries ........ —
Total “Core Earnings” adjustments to GAAP . . . ....... $1,047
(A)
Represents goodwill and intangible impairment and the amortization of acquired intangibles.
F-76
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)