Sallie Mae 2013 Annual Report Download - page 77

Net Floor premiums received on Floor Income Contracts that have not been amortized into “Core Earnings”
as of the respective year-ends are presented in the table below. These net premiums will be recognized in “Core
Earnings” in future periods and are presented net of tax. As of December 31, 2013, the remaining amortization
term of the net floor premiums was approximately 2.5 years for existing contracts. Historically, we have sold
Floor Income Contracts on a periodic basis and depending upon market conditions and pricing, we may enter into
additional Floor Income Contracts in the future. The balance of unamortized Floor Income Contracts will
increase as we sell new contracts and decline due to the amortization of existing contracts.
December 31,
(Dollars in millions) 2013 2012 2011
Unamortized net Floor premiums (net of tax) ........ $(354) $(551) $(772)
2) Goodwill and Acquired Intangible Assets: Our “Core Earnings” exclude goodwill and intangible asset
impairment and the amortization of acquired intangible assets. The following table summarizes the goodwill and
acquired intangible asset adjustments.
Years Ended December 31,
(Dollars in millions) 2013 2012 2011
“Core Earnings” goodwill and acquired intangible asset adjustments(1):
Goodwill and intangible impairment of acquired intangible assets .......... $— $ (9) $—
Amortization of acquired intangible assets ............................ (13) (18) (21)
Total “Core Earnings” goodwill and acquired intangible asset
adjustments(1) ................................................. $(13) $(27) $ (21)
(1) Negative amounts are subtracted from “Core Earnings” to arrive at GAAP net income and positive amounts are added to “Core
Earnings” to arrive at GAAP net income.
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