Sallie Mae 2009 Annual Report Download - page 44

provided to management. Changes in management structure or allocation methodologies and procedures may
result in changes in reported segment financial information.
“Core Earnings” are the primary financial performance measures used by management to develop the
Company’s financial plans, track results, and establish corporate performance targets and incentive compensa-
tion. While “Core Earnings” are not a substitute for reported results under GAAP, the Company relies on
“Core Earnings” in operating its business because “Core Earnings” permit management to make meaningful
period-to-period comparisons of the operational and performance indicators that are most closely assessed by
management. Management believes this information provides additional insight into the financial performance
of the core business activities of our operating segments. Accordingly, the tables presented below reflect “Core
Earnings” which are reviewed and utilized by management to manage the business for each of the Company’s
reportable segments. A further discussion regarding “Core Earnings” is included under “Limitations of ‘Core
Earnings’” and “Pre-tax Differences between ‘Core Earnings’ and GAAP by Business Segment.”
The “LENDING BUSINESS SEGMENT” section includes all discussion of income and related expenses
associated with the net interest margin, the student loan spread and its components, the provisions for loan
losses, and other fees earned on our Managed portfolio of student loans. The “APG BUSINESS SEGMENT”
section reflects the fees earned and expenses incurred in providing accounts receivable management and
collection services. Our “CORPORATE AND OTHER BUSINESS SEGMENT” section includes our remain-
ing fee businesses and other corporate expenses that do not pertain directly to the primary operating segments
identified above.
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