Sallie Mae 2011 Annual Report Download - page 177

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. Restructuring Activities (Continued)
• In response to the College Cost Reduction and Access Act of 2007 (“CCRAA”) and challenges in the
capital markets, we initiated a restructuring plan in the fourth quarter of 2007. This plan focused on
conforming our lending activities to the economic environment, exiting certain customer relationships
and product lines, winding down or otherwise disposing of our debt Purchased Paper businesses, and
significantly reducing our operating expenses. This restructuring plan was essentially completed in the
fourth quarter of 2009. Under this plan, there were no restructuring expenses for the year ended
December 31, 2011. There were $7 million and $22 million of restructuring expenses for the years
ended December 31, 2010 and 2009, respectively.
The following table summarizes the restructuring expenses incurred to date.
(Dollars in millions)
Years Ended
December 31,
Cumulative Expense
as of December 31,
2011 2010 2009 2011
Severance costs .............................................. $ 6 $81 $ 8 $169
Lease and other contract termination costs ......................... — 1 1 11
Exit and other costs ........................................... 3 3 1 19
Total restructuring expenses from continuing operations(1) ............ 9 85 10 199
Total restructuring expenses from discontinued operations ............ — 6 12 29
Total ....................................................... $ 9 $91 $22 $228
(1) Aggregate restructuring expenses from continuing operations incurred across our reportable segments are disclosed in “Note 16—
Segment Reporting.”
Since the fourth quarter of 2007 through December 31, 2011, cumulative severance costs were incurred in
conjunction with aggregate completed and planned position eliminations of approximately 5,500 positions.
Position eliminations were across all of our reportable segments, ranging from senior executives to servicing
center personnel. Lease and other contract termination costs and exit and other costs incurred during 2011, 2010
and 2009 related primarily to terminated or abandoned facility leases and consulting costs incurred in
conjunction with various cost reduction and exit strategies.
The following table summarizes the restructuring liability balance, which is included in other liabilities in
the accompanying consolidated balance sheet.
(Dollars in millions)
Severance
Costs
Lease and
Other
Contract
Termination
Costs
Exit and
Other Costs Total
Balance at December 31, 2009 .................. $ 9 $ 4 $— $13
Net accruals from continuing operations ......... 81 1 3 85
Net accruals from discontinued operations ....... 3 3 — 6
Cash paid ................................. (45) (4) (2) (51)
Balance at December 31, 2010 .................. 48 4 1 53
Net accruals from continuing operations ......... 6 — 3 9
Net accruals from discontinued operations ....... — — — —
Cash paid ................................. (44) (3) (4) (51)
Balance at December 31, 2011 .................. $10 $ 1 $— $11
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