Sallie Mae 2009 Annual Report Download - page 231

20. Segment Reporting (Continued)
Lending APG
Corporate
and Other
Total “Core
Earnings” Adjustments
(2)
Total
GAAP
Year Ended December 31, 2007
(Dollars in millions)
Interest income:
FFELP Stafford and Other Student Loans . . . . . . . . . . . $ 2,848 $ — $ — $ 2,848 $ (787) $2,061
FFELP Consolidation Loans . . . . . . . . . . . . . . . . . . . . 5,522 — — 5,522 (1,179) 4,343
Private Education Loans . . . . . . . . . . . . . . . . . . . . . . . 2,835 — — 2,835 (1,379) 1,456
Other loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 — — 106 — 106
Cash and investments . . . . . . . . . . . . . . . . . . . . . . . . . 868 — 21 889 (181) 708
Total interest income . . . . . . . . . . . . . . . . . . . . . . . . . 12,179 — 21 12,200 (3,526) 8,674
Total interest expense . . . . . . . . . . . . . . . . . . . . . . . . . 9,597 27 21 9,645 (2,559) 7,086
Net interest income (loss) . . . . . . . . . . . . . . . . . . . . . . 2,582 (27) — 2,555 (967) 1,588
Less: provisions for loan losses . . . . . . . . . . . . . . . . . . 1,394 — 1 1,395 (380) 1,015
Net interest income (loss) after provisions for loan losses . . . 1,188 (27) (1) 1,160 (587) 573
Contingency fee revenue . . . . . . . . . . . . . . . . . . . . . — 336 — 336 — 336
Collections revenue . . . . . . . . . . . . . . . . . . . . . . . . . — 217 — 217 3 220
Guarantor servicing fees . . . . . . . . . . . . . . . . . . . . . — — 156 156 — 156
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 — 218 412 (679) (267)
Total other income . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 553 374 1,121 (676) 445
Restructuring expenses . . . . . . . . . . . . . . . . . . . . . . 19 2 2 23 — 23
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . 690 361 339 1,390 97 1,487
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 709 363 341 1,413 97 1,510
Income (loss) from continuing operations, before income
tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . 673 163 32 868 (1,360) (492)
Income tax expense (benefit)
(1)
................... 249 60 12 321 87 408
Net income (loss) from continuing operations . . . . . . . . . 424 103 20 547 (1,447) (900)
Income from discontinued operations, net of taxes. . . . . . — 15 — 15 (9) 6
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424 118 20 562 (1,456) (894)
Less: net income attributable to noncontrolling interest . . — 2 — 2 — 2
Net income (loss) attributable to SLM Corporation . . . . . $ 424 $116 $ 20 $ 560 $(1,456) $ (896)
Economic Floor Income (net of tax) not included in
“Core Earnings” . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8 $ — $ — $ 8
(1)
Income taxes are based on a percentage of net income before tax for the individual reportable segment.
(2)
“Core Earnings” adjustments to GAAP:
(Dollars in millions)
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, 2007
Net interest income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(816) $ 18 $(169) $ — $ (967)
Less: provisions for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (380) — — — (380)
Net interest income (loss) after provisions for loan losses . . . . . . . . . . . . . . . . . . . . . . . . . (436) 18 (169) — (587)
Contingency fee revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — —
Collections revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 — — — 3
Guarantor servicing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — —
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680 (1,359) — — (679)
Total other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 683 (1,359) — — (676)
Restructuring expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — —
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 97 97
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — 97 97
Income (loss) from continuing operations, before income tax expense . . . . . . . . . . . . . . . . . . 247 (1,341) (169) (97) (1,360)
Loss from discontinued operations, net of taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — (9) (9)
Total “Core Earnings” adjustments to GAAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 247 $(1,341) $(169) $(106) (1,369)
Income tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Less: net income attributable to noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . —
Net loss attributable to SLM Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1,456)
F-104
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)