Sallie Mae 2008 Annual Report Download - page 161

6. Goodwill and Acquired Intangible Assets (Continued)
Acquired Intangible Assets
Acquired intangible assets include the following:
(Dollars in millions)
Average
Amortization
Period Gross
Accumulated
Amortization Net
As of December 31, 2008
Intangible assets subject to amortization:
Customer, services, and lending relationships ...... 13years $332 $(173) $159
Software and technology ..................... 7years 93 (85) 8
Non-compete agreements ..................... 2years 11 (10) 1
Total ...................................... 436 (268) 168
Intangible assets not subject to amortization:
Trade name and trademark .................... Indefinite 91 — 91
Total acquired intangible assets .................. $527 $(268) $259
(Dollars in millions)
Average
Amortization
Period Gross
Accumulated
Amortization Net
As of December 31, 2007
Intangible assets subject to amortization:
Customer, services, and lending relationships ...... 13years $366 $(160) $206
Software and technology ..................... 7years 95 (77) 18
Non-compete agreements ..................... 2years 12 (10) 2
Total ...................................... 473 (247) 226
Intangible assets not subject to amortization:
Trade name and trademark .................... Indefinite 110 — 110
Total acquired intangible assets .................. $583 $(247) $336
The Company recorded amortization of acquired intangible assets totaling $54 million, $67 million, and
$65 million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company will continue
to amortize its intangible assets with definite useful lives over their remaining estimated useful lives. The
Company estimates amortization expense associated with these intangible assets will be $39 million, $33 mil-
lion, $26 million, $19 million and $18 million for the years ended December 31, 2009, 2010, 2011, 2012 and
2013, respectively.
As discussed in Note 2, “Significant Accounting Policies,” the Company tests its indefinite life intangible
assets annually as of September 30 or during the course of the year if an event occurs or circumstances change
which indicate potential impairment of these assets. The Company also assesses whether an event or
circumstance has occurred which may indicate impairment of its definite life (amortizing) intangible assets
quarterly.
The Company recorded impairment of certain acquired intangible assets of $36 million, $26 million and
$24 million, respectively, for the years ended December 31, 2008, 2007 and 2006. In 2008, as discussed in
Note 20, “Segment Reporting,” the Company decided to wind down its purchased paper businesses. As a
result, in the third quarter of 2008, the Company recorded an aggregate amount of $36 million of impairment
of acquired intangible assets, of which $28 million related to the impairment of two trade names and
F-41
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)