Sallie Mae 2011 Annual Report Download - page 117

SLM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended December 31,
2011 2010 2009
Operating activities
Net income attributable to SLM Corporation .................................................................. $ 633 $ 530 $ 324
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Income) loss from discontinued operations, net of tax ........................................................ (33) 67 220
(Gains) losses on loans and investments, net ................................................................ 35 (6) 1
(Gains) on debt repurchases ............................................................................. (38) (317) (536)
Goodwill and acquired intangible assets impairment and amortization expense ..................................... 24 699 76
Stock-based compensation cost .......................................................................... 56 40 51
Unrealized (gains)/losses on derivative and hedging activities .................................................. 145 (478) 324
Provisions for loan losses ............................................................................... 1,295 1,419 1,119
Student loans originated for sale, net ...................................................................... — (9,648) (19,100)
Decrease (increase) in restricted cash — other ............................................................... 15 (2) 40
Decrease (increase) in accrued interest receivable ............................................................ 463 (4) 894
Increase (decrease) in accrued interest payable .............................................................. 75 (77) (517)
Adjustment for non-cash loss related to Retained Interest ...................................................... — — 330
Decrease in other assets ................................................................................ 423 1,206 375
(Decrease) in other liabilities ............................................................................ (12) (121) (30)
Cash provided by (used in) operating activities — continuing operations ............................................ 3,081 (6,692) (16,429)
Cash provided by operating activities — discontinued operations .................................................. — — 515
Total net cash provided by (used in) operating activities ......................................................... 3,081 (6,692) (15,914)
Investing activities
Student loans acquired ................................................................................. (3,888) (4,611) (5,973)
Loans purchased from securitized trusts — — (6)
Reduction of student loans:
Installment payments, claims and other .................................................................. 12,290 9,812 7,319
Proceeds from sales of student loans .................................................................... 753 588 788
Other investing activities, net ............................................................................ (210) (96) (419)
Purchases of available-for-sale securities ................................................................... (142) (38,303) (128,478)
Proceeds from maturities of available-for-sale securities ....................................................... 193 39,465 128,052
Purchases of held-to-maturity and other securities ............................................................ (277) (142) (1)
Proceeds from maturities of held-to-maturity securities and other securities ........................................ 265 136 79
Decrease (increase) in restricted cash — variable interest entities ................................................ 376 426 (1,180)
Cash provided by investing activities — continuing operations .................................................. 9,360 7,275 181
Cash provided by investing activities — discontinued operations ................................................ 114 139 130
Total net cash provided by investing activities ................................................................. 9,474 7,414 311
Financing activities
Borrowings collateralized by loans in trust — issued .......................................................... 4,553 5,917 12,998
Borrowings collateralized by loans in trust — repaid .......................................................... (13,408) (10,636) (5,690)
Asset-backed commercial paper conduits, net ............................................................... 887 (2,060) (16,138)
ED Participation Program, net ........................................................................... — 11,252 19,302
ED Conduit Program facility, net ......................................................................... (3,172) 664 14,314
Other short-term borrowings issued ....................................................................... 239 — 298
Other short-term borrowings repaid ....................................................................... (38) (168) (1,435)
Other long-term borrowings issued........................................................................ 2,354 1,464 4,333
Other long-term borrowings repaid ........................................................................ (6,498) (9,955) (9,504)
Other financing activities, net ............................................................................ 696 (21) (955)
Retail and other deposits, net ............................................................................ 754 1,166 204
Other ............................................................................................... 1 — (8)
Common stock repurchased ............................................................................. (300) — —
Common stock dividends paid ........................................................................... (154) — —
Preferred dividends paid ................................................................................ (18) (72) (116)
Net cash (used in) provided by financing activities ........................................................... (14,104) (2,449) 17,603
Net (decrease) increase in cash and cash equivalents ............................................................ (1,549) (1,727) 2,000
Cash and cash equivalents at beginning of year ................................................................ 4,343 6,070 4,070
Cash and cash equivalents at end of year ................................................................... $ 2,794 $ 4,343 $ 6,070
Cash disbursements made (refunds received) for:
Interest .............................................................................................. $ 2,413 $ 2,372 $ 3,657
Income taxes paid ..................................................................................... $ 559 $ 200 $ 328
Income taxes (received) ................................................................................ $ (37) $ (628) $ (30)
Noncash activity:
Investing activity — Student loans and other assets acquired ................................................... $ 783 $25,638 $ —
Operating activity — Other assets acquired and other liabilities assumed, net ...................................... $ 19 $ 376 $ —
Financing activity — Borrowings assumed in acquisition of student loans and other assets ............................ $ 802 $26,014 $ —
See accompanying notes to consolidated financial statements.
F-8