Sallie Mae 2009 Annual Report Download - page 171

6. Goodwill and Acquired Intangible Assets (Continued)
Acquired Intangible Assets
Acquired intangible assets include the following:
Average
Amortization
Period Gross
Accumulated
Amortization Net
As of December 31, 2009
(Dollars in millions)
Intangible assets subject to amortization:
Customer, services, and lending relationships ...... 12years $332 $(208) $124
Software and technology ..................... 7years 98 (89) 9
Non-compete agreements ..................... 11 (11) —
Total ...................................... 441 (308) 133
Intangible assets not subject to amortization:
Trade name and trademark .................... Indefinite 54 — 54
Total acquired intangible assets .................. $495 $(308) $187
Average
Amortization
Period Gross
Accumulated
Amortization Net
As of December 31, 2008
(Dollars in millions)
Intangible assets subject to amortization:
Customer, services, and lending relationships ...... 13years $332 $(173) $159
Software and technology ..................... 7years 93 (85) 8
Non-compete agreements ..................... 2years 11 (10) 1
Total ...................................... 436 (268) 168
Intangible assets not subject to amortization:
Trade name and trademark .................... Indefinite 91 — 91
Total acquired intangible assets .................. $527 $(268) $259
The Company recorded amortization of acquired intangible assets from continuing operations totaling
$39 million, $53 million, and $63 million for the years ended December 31, 2009, 2008 and 2007,
respectively. The Company recorded amortization of acquired intangible assets from discontinued operations
totaling $0, $1 million, and $4 million for the years ended December 31, 2009, 2008 and 2007, respectively.
The Company will continue to amortize its intangible assets with definite useful lives over their remaining
estimated useful lives. The Company estimates amortization expense associated with these intangible assets
will be $33 million, $27 million, $20 million, $18 million and $13 million for the years ended December 31,
2010, 2011, 2012, 2013 and 2014, respectively.
As discussed in Note 2, “Significant Accounting Policies,” the Company tests its indefinite life intangible
assets annually as of September 30 or during the course of the year if an event occurs or circumstances change
which indicate potential impairment of these assets. The Company also assesses quarterly whether an event or
circumstance has occurred which may indicate impairment of its definite life (amortizing) intangible assets.
F-44
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)