Sallie Mae 2012 Annual Report Download - page 184

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
F-74
15. Income Taxes
Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing
operations follow:
Years Ended December 31,
2012 2011 2010
Statutory rate ................................................ 35.0% 35.0% 35.0%
State tax, net of federal benefit ................................... 0.1 .8 1.2
Non-deductible goodwill ....................................... — — 9.2
Other, net ................................................... (0.5) (.5) (.2)
Effective tax rate ............................................. 34.6% 35.3% 45.2%
The effective tax rates for discontinued operations for the years ended December 31, 2012, 2011 and 2010
are 36.6 percent, 38.0 percent, and 26.7 percent, respectively. The effective tax rate varies from the statutory U.S.
federal rate of 35 percent primarily due to the establishment of valuation allowances against capital loss
carryforwards for the year ended December 31, 2010, and due to the impact of state taxes, net of federal benefit,
for the years ended December 31, 2012, 2011 and 2010.
Income tax expense consists of:
December 31,
(Dollars in millions) 2012 2011 2010
Continuing operations current provision/(benefit):
Federal ..................................................... $476 $ 437 $252
State ....................................................... 27 38 37
Foreign ..................................................... — — —
Total continuing operations current provision/(benefit) ................. 503 475 289
Continuing operations deferred provision/(benefit):
Federal ..................................................... 20 (121) 214
State ....................................................... (26) (26) (10)
Foreign ..................................................... — — —
Total continuing operations deferred provision/(benefit) ................ (6) (147) 204
Continuing operations provision for income tax expense/(benefit) ........ 497 328 493
Discontinued operations current provision/(benefit):
Federal ..................................................... $ (1) $ (50) $ 30
State ....................................................... — (5) 7
Foreign ..................................................... — — —
Total discontinued operations current provision/(benefit) ............... (1) (55) 37
Discontinued operations deferred provision/(benefit):
Federal ..................................................... 1 68 (56)
State ....................................................... — 7 (5)
Foreign ..................................................... — — —
Total discontinued operations deferred provision/(benefit) .............. 1 75 (61)
Discontinued operations provision for income tax expense/(benefit) ....... — 20 (24)
Provision for income tax expense/(benefit) ........................... $497 $ 348 $469