Sallie Mae 2007 Annual Report Download - page 45

Condensed Balance Sheets
2007 2006 $ %
December 31, 2007 vs. 2006
Increase
(Decrease)
Assets
FFELP Stafford and Other Student Loans, net ................ $ 35,726 $ 24,841 $10,885 44%
FFELP Consolidation Loans, net .......................... 73,609 61,324 12,285 20
Private Education Loans, net ............................. 14,818 9,755 5,063 52
Other loans, net ....................................... 1,174 1,309 (135) (10)
Cash and investments................................... 10,546 5,185 5,361 103
Restricted cash and investments ........................... 4,600 3,423 1,177 34
Retained Interest in off-balance sheet securitized loans .......... 3,044 3,341 (297) (9)
Goodwill and acquired intangible assets, net .................. 1,301 1,372 (71) (5)
Other assets.......................................... 10,747 5,586 5,161 92
Total assets .......................................... $155,565 $116,136 $39,429 34%
Liabilities and Stockholders’ Equity
Short-term borrowings .................................. $ 35,947 $ 3,528 $32,419 919%
Long-term borrowings .................................. 111,098 104,559 6,539 6
Other liabilities ....................................... 3,285 3,680 (395) (11)
Total liabilities ....................................... 150,330 111,767 38,563 35
Minority interest in subsidiaries ........................... 11 9 2 22
Stockholders’ equity before treasury stock ................... 7,055 5,401 1,654 31
Common stock held in treasury ........................... 1,831 1,041 790 76
Total stockholders’ equity ............................... 5,224 4,360 864 20
Total liabilities and stockholders’ equity ..................... $155,565 $116,136 $39,429 34%
RESULTS OF OPERATIONS
We present the results of operations first on a consolidated basis followed by a presentation of the net
interest margin with accompanying analysis presented in accordance with GAAP. As discussed in detail above
in the “OVERVIEW” section, we have two primary business segments, Lending and APG, plus a Corporate
and Other business segment. Since these business segments operate in distinct business environments, the
discussion following the results of our operations is primarily presented on a segment basis. See “BUSINESS
SEGMENTS” for further discussion on the components of each segment. Securitization gains and the ongoing
servicing and securitization income are included in “LIQUIDITY AND CAPITAL RESOURCES — Securitiza-
tion Activities.” The discussion of derivative market value gains and losses is under “BUSINESS
SEGMENTS — Limitations of ‘Core Earnings’ — Pre-tax Differences between ‘Core Earnings’ and GAAP by
Business Segment — Derivative Accounting.” The discussion of goodwill and acquired intangible amortization
and impairment is discussed under “BUSINESS SEGMENTS — Limitations of ‘Core Earnings’ — Pre-tax
Differences between ‘Core Earnings’ and GAAP by Business Segment — Acquired intangibles.”
CONSOLIDATED EARNINGS SUMMARY
The main drivers of our net income are the growth in our Managed student loan portfolio, which drives
net interest income and securitization transactions, the spread we earn on student loans, unrealized gains and
losses on derivatives that do not receive hedge accounting treatment, the timing and size of securitization
gains, growth in our fee-based business and expense control.
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