Sallie Mae 2013 Annual Report Download - page 207

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. Commitments, Contingencies and Guarantees (Continued)
Based on current knowledge, reserves have been established for certain litigation or regulatory matters
where the loss is both probable and estimable. Based on current knowledge, management does not believe that
loss contingencies, if any, arising from pending investigations, litigation or regulatory matters will have a
material adverse effect on our consolidated financial position, liquidity, results of operations or cash flows.
14. 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,
2013 2012 2011
Statutory rate ................................................ 35.0% 35.0% 35.0%
State tax, net of federal benefit .................................. 2.0 0.1 .8
Other, net .................................................. .1 (0.5) (.5)
Effective tax rate ............................................. 37.1% 34.6% 35.3%
The effective tax rates for discontinued operations for the years ended December 31, 2013, 2012 and 2011
are 16.2 percent, 40.7 percent, and 37.7 percent, respectively. The effective tax rate varies from the statutory U.S.
federal rate of 35 percent primarily due to the release of valuation allowances against capital loss carryforwards
for 2013, and due to the impact of state taxes, net of federal benefit, for 2013, 2012 and 2011.
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