Sallie Mae 2009 Annual Report Download - page 233

21. Discontinued Operations
In the fourth quarter of 2009, the Company sold all of the assets in its Purchased Paper — Mortgage/
Properties business for $280 million, resulting in an after-tax loss of $95 million. The Purchased Paper —
Mortgage/Properties business is considered a “Component” of the Company’s APG reporting unit in
accordance with ASC 360 as the business comprises operations and cash flows that can be clearly
distinguished operationally and for financial reporting purposes, from the rest of the Company. In accordance
with ASC 205, this Component is presented as discontinued operations as (1) the operations and cash flows of
the Component have been eliminated from the ongoing operations of the Company as of December 31, 2009,
and (2) the Company will have no continuing involvement in the operations of this Component subsequent to
the sale.
The following table summarizes the discontinued assets and liabilities of Purchased Paper — Mortgage/
Properties business at December 31, 2009 and 2008, respectively.
2009 2008
At December 31,
Assets:
Cash and equivalents ............................... $ 351 $ 11,635
Other assets ...................................... 34,072 788,163
Assets of discontinued operations ...................... $ 34,423 $799,798
Liabilities:
Liabilities of discontinued operations ................... $ 29,796 $753,638
At December 31, 2009, other assets of the Company’s discontinued operations consist of a receivable
from SLM Corporation associated with the 2009 net operating loss generated by its discontinued operations,
which has been utilized by SLM Corporation and its subsidiaries in its 2009 consolidated U.S. federal income
tax return. At December 31, 2009, liabilities of the Company’s discontinued operations consist primarily of
estimated reserves associated with certain recourse and buy-back provisions associated with the asset sale, as
well as restructuring liabilities related to severance and contract termination costs.
The following table summarizes the discontinued operations for the years ended December 31, 2009,
2008 and 2007, respectively.
2009 2008 2007
Years Ended December 31,
Operations:
Income (loss) from discontinued operations before income
taxes .......................................... $(217,083) $(234,024) $10,284
Income tax expense (benefit) .......................... (59,393) (90,805) 4,008
Income (loss) from discontinued operations, net of taxes ..... $(157,690) $(143,219) $ 6,276
Disposal:
Loss on disposal before income taxes ................... $(118,761) $ — $ —
Income tax benefit ................................. (23,053) — —
Loss on disposal, net of taxes ......................... $ (95,708) $ — $ —
F-106
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)