Sallie Mae 2007 Annual Report Download - page 200

20. Segment Reporting (Continued)
on a contingency fee or other pay-for-performance basis to 14 FFELP guarantors and for campus based
programs.
In addition to collecting on its own purchased receivables and mortgage loans, the APG operating
segment provides receivable management and collection services for large federal agencies, credit card clients
and other holders of consumer debt.
Corporate and Other
The Company’s Corporate and Other business segment includes the aggregate activity of its smaller
operating segments primarily its Guarantor Servicing, Loan Servicing, and Upromise operating segments.
Corporate and Other also includes several smaller products and services, as well as corporate overhead.
In the Guarantor Servicing operating segment, the Company provides a full complement of administrative
services to FFELP guarantors including guarantee issuance, account maintenance, and guarantee fulfillment. In
the Loan Servicing operating segment, the Company provides a full complement of activities required to
service student loans on behalf of lenders who are unrelated to the Company. Such servicing activities
generally commence once a loan has been fully disbursed and include sending out payment coupons to
borrowers, processing borrower payments, originating and disbursing FFELP Consolidation Loans on behalf of
the lender, and other administrative activities required by ED.
Upromise markets and administers an affinity marketing program and also provides administration
services for 529 college-savings plans. The Company’s other products and services include comprehensive
financing and loan delivery solutions that it provides to college financial aid offices and students to streamline
the financial aid process. Corporate overhead includes all of the typical headquarter functions such as
executive management, accounting and finance, human resources and marketing.
Measure of Profitability
The tables below include the condensed operating results for each of the Company’s reportable segments.
Management, including the chief operating decision makers, evaluates the Company on certain performance
measures that the Company refers to as “Core Earnings” performance measures for each operating segment.
While “Core Earnings” results are not a substitute for reported results under GAAP, the Company relies on
“Core Earnings” performance measures to manage each operating segment because it believes these measures
provide additional information regarding the operational and performance indicators that are most closely
assessed by management.
“Core Earnings” performance measures are the primary financial performance measures used by manage-
ment to develop the Company’s financial plans, track results, and establish corporate performance targets and
incentive compensation. Management believes this information provides additional insight into the financial
performance of the core business activities of its operating segments. Accordingly, the tables presented below
reflect “Core Earnings” operating measures reviewed and utilized by management to manage the business.
Reconciliation of the “Core Earnings” segment totals to the Company’s consolidated operating results in
accordance with GAAP is also included in the tables below.
F-79
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)