Sallie Mae 2009 Annual Report Download - page 170

6. Goodwill and Acquired Intangible Assets (Continued)
down over time. As a result, as these revenue streams wind down, goodwill impairment may be triggered for
the Lending and APG reporting units and will definitely be triggered for the Guarantor Servicing reporting
unit due to the passage of time and depletion of projected cash flows stemming from FFELP-related contracts.
As of September 30, 2008, annual impairment testing indicated no impairment for any reporting units. As
of September 30, 2007, annual impairment testing indicated no impairment for any reporting units with the
exception of the mortgage and consumer lending reporting unit, due largely to the wind down of one of the
Company’s mortgage operations. As a result, the Company recognized goodwill impairment of approximately
$20 million in the fourth quarter of 2007.
Goodwill by Reportable Segments
A summary of changes in the Company’s goodwill by reportable segment is as follows:
December 31,
2008
Acquisitions/
Other
December 31,
2009
(Dollars in millions)
Lending ..................................... $388 $— $388
Asset Performance Group ........................ 401 — 401
Corporate and Other ............................ 202 — 202
Total ....................................... $991 $— $991
December 31,
2007
Acquisitions/
Other
December 31,
2008
(Dollars in millions)
Lending ..................................... $388 $— $388
Asset Performance Group ........................ 377 24 401
Corporate and Other ............................ 200 2 202
Total ....................................... $965 $26 $991
From September 2004 through January 2008, the Company acquired a 100 percent controlling interest in
AFS Holdings, LLC (“AFS”) through a series of transactions commencing with the Company’s September
2004 acquisition of a 64 percent controlling interest and annual exercise of options to purchase successive
12 percent interests in the Company from December 2005 through January 2008. AFS was a full-service
accounts receivable management company that purchased charged off debt and performed third-party
receivables servicing across a number of consumer asset classes. As a result of this series of transactions, the
Company’s APG reportable segment and reporting unit recognized excess purchase price over the fair value of
net assets acquired, or goodwill, of $226 million. The total purchase price associated with the Company’s
acquisition of AFS was approximately $324 million, including cash consideration and certain acquisition
costs.
F-43
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)