Sallie Mae 2012 Annual Report Download - page 121

SLM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
Years Ended December 31,
2012 2011 2010
Operating activities
Net income ........................................................................... $ 937 $ 632 $ 530
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Income) loss from discontinued operations, net of tax ....................................... (1) (33) 67
(Gains) losses on loans and investments, net ............................................... — 35 (6)
(Gains) on debt repurchases ............................................................ (145) (38) (317)
Goodwill and acquired intangible assets impairment and amortization expense .................... 28 24 699
Stock-based compensation expense ...................................................... 47 56 40
Unrealized (gains) losses on derivative and hedging activities ................................. (117) 145 (478)
Provisions for loan losses .............................................................. 1,080 1,295 1,419
Student loans originated for sale, net ..................................................... — — (9,648)
Decrease (increase) in restricted cash — other .............................................. 3 15 (2)
Decrease (increase) in accrued interest receivable ........................................... 361 463 (4)
(Decrease) increase in accrued interest payable ............................................. (41) 75 (77)
Decrease in other assets ............................................................... 439 424 1,206
Increase (decrease) in other liabilities ..................................................... 45 (12) (121)
Total adjustments .................................................................. 1,699 2,449 (7,222)
Total net cash provided by (used in) operating activities ........................................ 2,636 3,081 (6,692)
Investing activities
Student loans acquired and originated .................................................... (6,663) (3,888) (4,611)
Reduction of student loans:
Installment payments, claims and other ................................................. 17,198 12,290 9,812
Proceeds from sales of student loans ................................................... 531 753 588
Other investing activities, net ........................................................... 41 (210) (96)
Purchases of available-for-sale securities .................................................. (63) (142) (38,303)
Proceeds from sales and maturities of available-for-sale securities .............................. 71 193 39,465
Purchases of held-to-maturity and other securities ........................................... (245) (277) (142)
Proceeds from maturities of held-to-maturity securities and other securities ....................... 206 265 136
Decrease in restricted cash — variable interest entities ....................................... 769 376 426
Cash provided by investing activities — continuing operations ................................. 11,845 9,360 7,275
Cash provided by investing activities — discontinued operations ............................... — 114 139
Total net cash provided by investing activities ................................................ 11,845 9,474 7,414
Financing activities
Borrowings collateralized by loans in trust — issued ......................................... 13,727 4,553 5,917
Borrowings collateralized by loans in trust — repaid ......................................... (15,953) (13,408) (10,636)
Asset-backed commercial paper conduits, net .............................................. (323) 887 (2,060)
ED Participation Program, net .......................................................... — — 11,252
ED Conduit Program Facility, net ........................................................ (12,187) (3,172) 664
Other short-term borrowings issued ...................................................... 23 239 —
Other short-term borrowings repaid ...................................................... (307) (38) (168)
Other long-term borrowings issued....................................................... 4,713 2,354 1,464
Other long-term borrowings repaid ....................................................... (3,307) (6,498) (9,955)
Other financing activities, net ........................................................... 272 698 (21)
Retail and other deposits, net ........................................................... 1,124 753 1,166
Common stock repurchased ............................................................ (900) (300) —
Common stock dividends paid .......................................................... (237) (154) —
Preferred stock dividends paid .......................................................... (20) (18) (72)
Net cash (used in) financing activities .................................................... (13,375) (14,104) (2,449)
Net increase (decrease) in cash and cash equivalents ........................................... 1,106 (1,549) (1,727)
Cash and cash equivalents at beginning of year ............................................... 2,794 4,343 6,070
Cash and cash equivalents at end of year .................................................. $ 3,900 $ 2,794 $ 4,343
Cash disbursements made (refunds received) for:
Interest ............................................................................. $ 2,527 $ 2,413 $ 2,372
Income taxes paid .................................................................... $ 569 $ 559 $ 200
Income taxes received ................................................................. $ (12) $ (37) $ (628)
Noncash activity:
Investing activity — Student loans and other assets acquired .................................. $ 402 $ 783 $25,638
Operating activity — Other assets acquired and other liabilities assumed, net ..................... $ 23 $ 19 $ 376
Financing activity — Borrowings assumed in acquisition of student loans and other assets ........... $ 425 $ 802 $26,014
See accompanying notes to consolidated financial statements.
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