Sallie Mae 2010 Annual Report Download - page 150

6. Goodwill and Acquired Intangible Assets (Continued)
We recorded amortization of acquired intangible assets from continuing operations totaling $39 million,
$38 million, and $48 million for the years ended December 31, 2010, 2009 and 2008, respectively. We
recorded amortization of acquired intangible assets from discontinued operations totaling $0, $1 million, and
$6 million for the years ended December 31, 2010, 2009 and 2008, respectively. We will continue to amortize
our intangible assets with definite useful lives over their remaining estimated useful lives. We estimate
amortization expense associated with these intangible assets will be $23 million, $16 million, $11 million,
$9 million and $6 million for the years ended December 31, 2011, 2012, 2013, 2014 and 2015, respectively.
As discussed in Note 2, “Significant Accounting Policies,” we test our indefinite life intangible assets
annually as of October 1 or during the course of the year if an event occurs or circumstances change which
indicate potential impairment of these assets. We also assess whether an event or circumstance has occurred
which may indicate impairment of its definite life (amortizing) intangible assets quarterly.
We recorded impairment of certain acquired intangible assets from continuing operations of $56 million,
$36 million and $1 million, respectively, for the years ended December 31, 2010, 2009 and 2008. We recorded
impairment of certain acquired intangible assets from discontinued operations of $0, $1 million and
$36 million, respectively, for the years ended December 31, 2010, 2009 and 2008.
In the third quarter of 2010, we recognized intangible impairments of $53 million related to Upromise
and $3 million related to the Consumer Lending businesses, (see previous discussion of interim goodwill
impairment testing).
In the fourth quarter of 2009, we recognized intangible impairments of $34 million related to our
exclusive right to market under the USAF Guarantee. This intangible was impaired as a result of the
legislative uncertainty surrounding the role of Guarantors in the future. This impairment charge was recorded
to operating expense in the Business Services reportable segment. We also recognized intangible impairments
of $3 million related to certain tradenames and relationships in the FFELP Loans reporting segment.
In 2008, we decided to wind down our Purchased Paper businesses. As a result, in the third quarter of
2008, we recorded an aggregate amount of $36 million of impairment of acquired intangible assets in
discontinued operations, of which $28 million related to the impairment of two trade names and $8 million
related to certain banking customer relationships associated with discontinued operations.
7. Borrowings
Borrowings consist of secured borrowings issued through our securitization program, borrowings through
secured facilities and participation programs, unsecured notes issued by us, term and other deposits at the
Bank, and other interest-bearing liabilities related primarily to obligations to return cash collateral held. To
match the interest rate and currency characteristics of our borrowings with the interest rate and currency
characteristics of our assets, we enter into interest rate and foreign currency swaps with independent parties.
Under these agreements, we make periodic payments, generally indexed to the related asset rates or rates
which are highly correlated to the asset rates, in exchange for periodic payments which generally match our
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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)