Sallie Mae 2007 Annual Report Download - page 129

SLM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
2007 2006 2005
Years Ended December 31,
Operating activities
Net income (loss) .................................................... $ (896,394) $ 1,156,956 $ 1,382,284
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Gains on student loan securitizations ...................................... (367,300) (902,417) (552,546)
Losses on loans and securities, net ....................................... 95,492 49,357 63,955
Stock-based compensation cost .......................................... 74,621 81,163 19,592
Unrealized (gains)/losses on derivative and hedging activities, excluding equity forwards ..... (214,963) (128,529) (514,362)
Unrealized (gains)/losses on derivative and hedging activities — equity forwards ........... 1,558,025 359,193 (120,433)
Provisions for loan losses ............................................. 1,015,308 286,962 203,006
Minority interest, net ................................................ (779) (2,461) (7,835)
Mortgage loans originated ............................................. (546,773) (1,291,782) (1,746,986)
Proceeds from sales of mortgage loans ..................................... 615,274 1,364,448 1,692,923
(Increase) in purchased paper-mortgages, net ................................. (618,117) (214,916) (88,638)
(Increase) decrease in restricted cash — other ................................. (84,537) 71,312 18,640
(Increase) in accrued interest receivable .................................... (1,046,124) (970,580) (788,819)
Increase in accrued interest payable ....................................... 214,401 277,617 260,505
Adjustment for non-cash (income)/loss related to Retained Interest ................... 279,246 157,715 258,351
Decrease in other assets, goodwill and acquired intangible assets, net .................. 761,787 730,221 307,543
(Decrease) increase in other liabilities ..................................... (890,464) (215,838) 371,650
Total adjustments .................................................. 845,097 (348,535) (623,454)
Net cash (used in) provided by operating activities ............................. (51,297) 808,421 758,830
Investing activities
Student loans acquired ............................................... (39,303,005) (36,364,686) (29,463,704)
Loans purchased from securitized trusts (primarily loan consolidations) ................ (4,326,221) (7,394,655) (9,491,668)
Reduction of student loans:
Installment payments, claims and other ................................... 11,290,499 10,569,365 8,503,141
Proceeds from securitization of student loans treated as sales ..................... 1,976,599 19,521,365 13,520,208
Proceeds from sales of student loans ..................................... 1,013,295 101,212 167,410
Other loans — originated ............................................. (3,396,501) (2,082,670) (565,070)
Other loans — repaid ................................................ 3,420,187 1,834,471 523,473
Other investing activities, net ........................................... (358,209) (210,969) (192,684)
Purchases of available-for-sale securities .................................... (90,087,504) (85,189,100) (66,259,431)
Proceeds from sales of available-for-sale securities ............................. 73,217 25,941 624,960
Proceeds from maturities of available-for-sale securities .......................... 89,353,103 85,015,345 66,700,950
Purchases of held-to-maturity and other securities .............................. (330,450) (1,066,290) (903,328)
Proceeds from maturities of held-to-maturity securities and other securities .............. 435,468 1,278,897 904,179
(Increase) in restricted cash — on-balance sheet trusts ........................... (1,293,846) (304,749) (990,961)
Return of investment from Retained Interest ................................. 276,996 140,435 256,712
Purchase of subsidiaries, net of cash acquired ................................. — (339,836) (237,919)
Net cash used in investing activities ....................................... (31,256,372) (14,465,924) (16,903,732)
Financing activities
Short-term borrowings issued ........................................... 7,773,453 16,803,116 59,820,213
Short-term borrowings repaid ........................................... (8,581,112) (16,618,913) (59,907,574)
Long-term borrowings issued ........................................... 1,567,602 11,739,249 10,250,879
Long-term borrowings repaid ........................................... (3,188,249) (4,744,432) (1,835,538)
Borrowings collateralized by loans in trust — issued ............................ 23,943,837 12,984,937 12,913,991
Borrowings collateralized by loans in trust — repaid ............................ (6,429,648) (5,578,268) (6,673,974)
Asset-backed commercial paper conduits — net activity .......................... 21,073,857 (6,173) 1,314,645
Other financing activities, net ........................................... (39,597) (41,837) (119,050)
Excess tax benefit from the exercise of stock-based awards ........................ 30,316 32,985 —
Common stock issued ............................................... 2,125,111 192,520 249,944
Net settlements on equity forward contracts .................................. (614,217) (66,925) (52,965)
Common stock repurchased ............................................ (2,222,394) (482,855) (732,342)
Common dividends paid .............................................. (102,658) (398,414) (355,368)
Preferred stock issued ............................................... 968,674 — 396,745
Preferred dividends paid .............................................. (36,497) (34,920) (21,536)
Net cash provided by financing activities ................................... 36,268,478 13,780,070 15,248,070
Net increase (decrease) in cash and cash equivalents .............................. 4,960,809 122,567 (896,832)
Cash and cash equivalents at beginning of year ................................. 2,621,222 2,498,655 3,395,487
Cash and cash equivalents at end of year ................................... $ 7,582,031 $ 2,621,222 $ 2,498,655
Cash disbursements made for:
Interest ......................................................... $ 6,897,773 $ 4,512,737 $ 2,587,582
Income taxes ..................................................... $ 1,097,340 $ 770,004 $ 476,923
See accompanying notes to consolidated financial statements.
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