Sallie Mae 2013 Annual Report Download - page 93

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GAAP Basis
December 31, 2010 December 31, 2009
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
GAAP Basis:
Beginning balance ........................... $161 $ 1,443 $ 1,604 $138 $1,308 $1,446
Less:
Charge-offs(1) ............................. (87) (1,291) (1,378) (79) (876) (955)
Student loan sales .......................... (8) — (8) (4) — (4)
Plus:
Provision for loan losses ..................... 98 1,298 1,396 106 967 1,073
Reclassification of interest reserve(2) ........... — 48 48 — 44 44
Consolidation of securitization trusts(3) ......... 25 524 549 — — —
Ending balance .............................. $189 $ 2,022 $ 2,211 $161 $1,443 $1,604
Off-Balance Sheet
December 31, 2010 December 31, 2009
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
Off-Balance Sheet:
Beginning balance ........................... $ 25 $524 $549 $ 27 $505 $532
Less:
Charge-offs(1) ............................. — — — (15) (423) (438)
Student loan sales .......................... — — — — — —
Plus:
Provision for loan losses ..................... — — — 13 432 445
Reclassification of interest reserve(2) ........... — — — — 10 10
Consolidation of securitization trusts(3) ......... (25) (524) (549) — — —
Ending balance .............................. $— $— $— $ 25 $524 $549
“Core Earnings” Basis
December 31, 2010 December 31, 2009
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
“Core Earnings” Basis:
Balance at beginning of period ................. $186 $1,967 $ 2,153 $ 165 $ 1,813 $ 1,978
Less:
Charge-offs(1) ............................. (87) (1,291) (1,378) (94) (1,299) (1,393)
Student loan sales .......................... (8) — (8) (4) — (4)
Plus:
Provision for loan losses .................... 98 1,298 1,396 119 1,399 1,518
Reclassification of interest reserve(2) ........... — 48 48 — 54 54
Total “Core Earnings” basis ................ $189 $2,022 $ 2,211 $ 186 $ 1,967 $ 2,153
Percent of total .............................. 9% 91% 100% 9% 91% 100%
Troubled debt restructuring(3) ................... $— $ 439 $ 439 $— $ 223 $ 223
(1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the
receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans
which represents the difference between what was expected to be collected and any shortfalls in what was actually collected in the period.
See the section titled “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the
period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(3) Represents the recorded investment of loans identified as troubled debt restructuring.
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