Sallie Mae 2011 Annual Report Download - page 151

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Goodwill and Acquired Intangible Assets (Continued)
Acquired Intangible Assets
Acquired intangible assets include the following:
As of December 31, 2011 As of December 31, 2010
(Dollars in millions)
Cost
Basis(1)
Accumulated
Impairment and
Amortization(1) Net
Cost
Basis(1)
Accumulated
Impairment and
Amortization(1) Net
Intangible assets subject to amortization:
Customer, services and lending
relationships ......................... $303 $(253) $ 50 $298 $(231) $67
Software and technology .................. 93 (93) — 93 (91) 2
Total intangible assets subject to amortization . . . 396 (346) 50 391 (322) 69
Intangible assets not subject to amortization:
Trade names and trademarks ............... 54 (31) 23 54 (31) 23
Total acquired intangible assets .............. $450 $(377) $ 73 $445 $(353) $92
(1) Accumulated impairment and amortization includes impairment amounts only if a portion of the acquired intangible asset has been
deemed partially impaired. When an acquired intangible asset is considered fully impaired, and no longer in use, the cost basis and any
accumulated amortization related to the asset is written off.
We recorded amortization of acquired intangible assets from continuing operations totaling $24 million, $39
million, and $38 million for the years ended December 31, 2011, 2010 and 2009, respectively. We recorded
amortization of acquired intangible assets from discontinued operations totaling $0, $0 and $1 million for the
years ended December 31, 2011, 2010 and 2009, 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 $17 million, $12 million, $10 million, $7 million and $3 million
for the years ended December 31, 2012, 2013, 2014, 2015 and 2016, 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. As of October 1, 2011, the fair value of the indefinite life intangible
assets exceeds their carrying value. Accordingly, we recorded no impairment. We also assess whether an event or
circumstance has occurred which may indicate impairment of its definite life (amortizing) intangible assets
quarterly. During 2011, no such events or circumstances occurred that indicated our definite life intangible assets
may be impaired.
In the third quarter of 2010, we recorded impairment of certain acquired intangible assets from continuing
operations of $53 million related to the Upromise reporting unit and $3 million related to the Consumer Lending
reportable segment.
In the fourth quarter of 2009, we recorded impairment of certain acquired intangible assets from continuing
operations of $34 million related to the Guarantor Services reporting unit and $3 million related to the FFELP
Loans reportable segment.
F-42