Sallie Mae 2007 Annual Report Download - page 54

Lending APG
Corporate
and Other
Year Ended
December 31, 2006
Interest income:
FFELP Stafford and Other Student Loans.................... $ 2,771 $ — $ —
FFELP Consolidation Loans ............................. 4,690 — —
Private Education Loans ................................ 2,092 — —
Other loans .......................................... 98 — —
Cash and investments .................................. 705 — 7
Total interest income ..................................... 10,356 — 7
Total interest expense .................................... 7,877 23 12
Net interest income (loss) ................................. 2,479 (23) (5)
Less: provisions for loan losses ............................. 303 — —
Net interest income (loss) after provisions for loan losses .......... 2,176 (23) (5)
Contingency fee revenue .................................. — 397 —
Guarantor servicing fees .................................. — — 132
Collections revenue ...................................... — 239 —
Other income .......................................... 177 — 155
Total other income ...................................... 177 636 287
Operating expenses
(1)
.................................... 645 358 250
Income before income taxes and minority interest in net earnings of
subsidiaries .......................................... 1,708 255 32
Income tax expense
(2)
.................................... 632 94 12
Minority interest in net earnings of subsidiaries ................. — 4 —
“Core Earnings” net income ............................... $ 1,076 $157 $ 20
(1)
Operating expenses for the Lending, APG, and Corporate and Other reportable segments include $34 million, $12 million, and
$17 million, respectively, of stock option compensation expense.
(2)
Income taxes are based on a percentage of net income before tax for the individual reportable segment.
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