Sallie Mae 2007 Annual Report Download - page 203

20. Segment Reporting (Continued)
Lending APG
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
Otherloans............................. 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 (loss) . . . . . . . . . . . . . . . . . . . . . 2,155 (19) (1) 2,135 (684) 1,451
Less: provisions for loan losses . . . . . . . . . . . . . . . . . 138 — — 138 65 203
Net interest income (loss) after provisions for loan
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,017 (19) (1) 1,997 (749) 1,248
Contingency fee revenue . . . . . . . . . . . . . . . . . . . . . — 360 — 360 — 360
Guarantor servicing fees. . . . . . . . . . . . . . . . . . . . . . — — 115 115 — 115
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 Total
Year Ended December 31, 2005
(Dollars in millions)
Net interest income (loss) . . . .................... $(867) $387 $(204) $ — $ (684)
Less: provisions for loan losses ................... 65 — — — 65
Net interest income (loss) after provisions for loan losses . . (932) 387 (204) — (749)
Contingency fee revenue ........................ — — — — —
Guarantor servicing fees ........................ — — — — —
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
F-82
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts, unless otherwise stated)