Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Asset Information for Company's Consumer Lending Business Segment

The following table includes asset information for our Consumer Lending segment.

	December 31,
(Dollars in millions)	2012		2011
Private Education Loans, net	$	36,934	$	36,290
Cash and investments(1)		2,731		3,113
Other		3,275		3,595
Total assets	$	42,940	$	42,998

⁽¹⁾  Includes restricted cash and investments.

Asset Information for Company's FFELP Loans Business Segment

The following table includes asset information for our FFELP Loans segment.

	December 31,
(Dollars in millions)	2012		2011
FFELP Loans, net	$	125,612	$	138,130
Cash and investments(1)		5,766		6,067
Other		4,286		4,415
Total assets	$	135,664	$	148,612

⁽¹⁾  Includes restricted cash and investments.

Segment Results and Reconciliations to GAAP

Segment Results and Reconciliations to GAAP

	Year Ended December 31, 2012
(Dollars in millions)	Consumer Lending			Business Services			FFELP Loans		Other			Eliminations(1)			Total “Core Earnings”			Adjustments									Total GAAP
																		Reclassifications			Additions/ (Subtractions)			Total Adjustments(2)
Interest income:
Student loans	$	2,481		$	—		$	2,744	$	—		$	—		$	5,225		$	858		$	(351	)	$	507		$	5,732
Other loans		—			—			—		16			—			16			—			—			—			16
Cash and investments		7			7			11		2			(6	)		21			—			—			—			21
Total interest income		2,488			7			2,755		18			(6	)		5,262			858			(351	)		507			5,769
Total interest expense		822			—			1,591		37			(6	)		2,444			115			2	(4)		117			2,561
Net interest income (loss)		1,666			7			1,164		(19	)		—			2,818			743			(353	)		390			3,208
Less: provisions for loan losses		1,008			—			72		—			—			1,080			—			—			—			1,080
Net interest income (loss) after provisions for loan losses		658			7			1,092		(19	)		—			1,738			743			(353	)		390			2,128
Servicing revenue		46			813			90		—			(670	)		279			—			—			—			279
Contingency revenue		—			356			—		—			—			356			—			—			—			356
Gains on debt repurchases		—			—			—		145			—			145			—			—			—			145
Other income (loss)		—			33			—		15			—			48			(743	)		159	(5)		(584	)		(536	)
Total other income (loss)		46			1,202			90		160			(670	)		828			(743	)		159			(584	)		244
Expenses:
Direct operating expenses		265			364			702		12			(670	)		673			—			—			—			673
Overhead expenses		—			—			—		224			—			224			—			—			—			224
Operating expenses		265			364			702		236			(670	)		897			—			—			—			897
Goodwill and acquired intangible assets impairment and amortization		—			—			—		—			—			—			—			27			27			27
Restructuring expenses		3			3			—		5			—			11			—			—			—			11
Total expenses		268			367			702		241			(670	)		908			—			27			27			935
Income (loss) from continuing operations, before income tax expense (benefit)		436			842			480		(100	)		—			1,658			—			(221	)		(221	)		1,437
Income tax expense (benefit)(3)		157			303			173		(36	)		—			597			—			(99	)		(99	)		498
Net income (loss) from continuing operations		279			539			307		(64	)		—			1,061			—			(122	)		(122	)		939
Income (loss) from discontinued operations, net of tax expense (benefit)		(2	)		—			—		1			—			(1	)		—			(1	)		(1	)		(2	)
Net income (loss)		277			539			307		(63	)		—			1,060			—			(123	)		(123	)		937
Less: net loss attributable to noncontrolling interest		—			(2	)		—		—			—			(2	)		—			—			—			(2	)
Net income (loss) attributable to SLM Corporation	$	277		$	541		$	307	$	(63	)	$	—		$	1,062		$	—		$	(123	)	$	(123	)	$	939

⁽¹⁾  The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.

⁽²⁾  “Core Earnings” adjustments to GAAP:

	Year Ended December 31, 2012
(Dollars in millions)	Net Impact of Derivative Accounting			Net Impact of Goodwill and Acquired Intangibles			Total
Net interest income after provisions for loan losses	$	390		$	—		$	390
Total other loss		(584	)		—			(584	)
Goodwill and acquired intangible assets impairment and amortization		—			27			27
Total “Core Earnings” adjustments to GAAP	$	(194	)	$	(27	)		(221	)
Income tax benefit								(99	)
Loss from discontinued operations, net of tax benefit								(1	)
Net loss							$	(123	)

⁽³⁾  Income taxes are based on a percentage of net income before tax for the individual reportable segment.

⁽⁴⁾  Represents a portion of the $42 million of “other derivative accounting adjustments.”

⁽⁵⁾  Represents the $115 million of “unrealized gains on derivative and hedging activities, net” as well as the remaining portion of the $42 million of “other derivative accounting adjustments.”

	Year Ended December 31, 2011
(Dollars in millions)	Consumer Lending			Business Services			FFELP Loans		Other			Eliminations(1)			Total “Core Earnings”			Adjustments									Total GAAP
																		Reclassifications			Additions/ (Subtractions)			Total Adjustments(2)
Interest income:
Student loans	$	2,429		$	—		$	2,914	$	—		$	—		$	5,343		$	902		$	(355	)	$	547		$	5,890
Other loans		—			—			—		21			—			21			—			—			—			21
Cash and investments		9			8			5		5			(8	)		19			—			—			—			19
Total interest income		2,438			8			2,919		26			(8	)		5,383			902			(355	)		547			5,930
Total interest expense		801			—			1,472		54			(8	)		2,319			71			11	(4)		82			2,401
Net interest income (loss)		1,637			8			1,447		(28	)		—			3,064			831			(366	)		465			3,529
Less: provisions for loan losses		1,179			—			86		30			—			1,295			—			—			—			1,295
Net interest income (loss) after provisions for loan losses		458			8			1,361		(58	)		—			1,769			831			(366	)		465			2,234
Servicing revenue		64			872			86		—			(739	)		283			—			—			—			283
Contingency revenue		—			333			—		—			—			333			—			—			—			333
Gains on debt repurchases		—			—			—		64			—			64			(26	)		—			(26	)		38
Other income (loss)		(9	)		69			—		(6	)		—			54			(805	)		(174	)(5)		(979	)		(925	)
Total other income (loss)		55			1,274			86		58			(739	)		734			(831	)		(174	)		(1,005	)		(271	)
Expenses:
Direct operating expenses		291			393			772		19			(739	)		736			—			—			—			736
Overhead expenses		—			—			—		269			—			269			—			—			—			269
Operating expenses		291			393			772		288			(739	)		1,005			—			—			—			1,005
Goodwill and acquired intangible assets impairment and amortization		—			—			—		—			—			—			—			21			21			21
Restructuring expenses		3			5			1		3			—			12			—			—			—			12
Total expenses		294			398			773		291			(739	)		1,017			—			21			21			1,038
Income (loss) from continuing operations, before income tax expense (benefit)		219			884			674		(291	)		—			1,486			—			(561	)		(561	)		925
Income tax expense (benefit)(3)		81			325			248		(107	)		—			547			—			(219	)		(219	)		328
Net income (loss) from continuing operations		138			559			426		(184	)		—			939			—			(342	)		(342	)		597
Income (loss) from discontinued operations, net of tax expense (benefit)		(2	)		5			—		34			—			37			—			(2	)		(2	)		35
Net income (loss)		136			564			426		(150	)		—			976			—			(344	)		(344	)		632
Less: loss attributable to noncontrolling interest		—			(1	)		—		—			—			(1	)		—			—			—			(1	)
Net income (loss) attributable to SLM Corporation	$	136		$	565		$	426	$	(150	)	$	—		$	977		$	—		$	(344	)	$	(344	)	$	633

⁽¹⁾  The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.

⁽²⁾  “Core Earnings” adjustments to GAAP:

	Year Ended December 31, 2011
(Dollars in millions)	Net Impact of Derivative Accounting			Net Impact of Goodwill and Acquired Intangibles			Total
Net interest income after provisions for loan losses	$	465		$	—		$	465
Total other loss		(1,005	)		—			(1,005	)
Goodwill and acquired intangible assets impairment and amortization		—			21			21
Total “Core Earnings” adjustments to GAAP	$	(540	)	$	(21	)		(561	)
Income tax benefit								(219	)
Loss from discontinued operations, net of tax benefit								(2	)
Net loss							$	(344	)

⁽³⁾  Income taxes are based on a percentage of net income before tax for the individual reportable segment.

⁽⁴⁾  Represents a portion of the $(32) million of “other derivative accounting adjustments.”

⁽⁵⁾  Represents the $(153) million of “unrealized gains on derivative and hedging activities, net” as well as the remaining portion of the $(32) million of “other derivative accounting adjustments.”

	Year Ended December 31, 2010
(Dollars in millions)	Consumer Lending			Business Services		FFELP Loans		Other			Eliminations(1)			Total “Core Earnings”			Adjustments									Total GAAP
																	Reclassifications			Additions/ (Subtractions)			Total Adjustments(2)
Interest income:
Student loans	$	2,353		$	—	$	2,766	$	—		$	—		$	5,119		$	888		$	(309	)	$	579		$	5,698
Other loans		—			—		—		30			—			30			—			—			—			30
Cash and investments		15			12		8		3			(12	)		26			—			—			—			26
Total interest income		2,368			12		2,774		33			(12	)		5,175			888			(309	)		579			5,754
Total interest expense		753			—		1,408		44			(12	)		2,193			69			13	(4)		82			2,275
Net interest income (loss)		1,615			12		1,366		(11	)		—			2,982			819			(322	)		497			3,479
Less: provisions for loan losses		1,298			—		98		23			—			1,419			—			—			—			1,419
Net interest income (loss) after provisions for loan losses		317			12		1,268		(34	)		—			1,563			819			(322	)		497			2,060
Servicing revenue		73			818		68		—			(648	)		311			—			—			—			311
Contingency revenue		—			330		—		—			—			330			—			—			—			330
Gains on debt repurchases		—			—		—		317			—			317						—			—			317
Other income (loss)		—			50		312		22			—			384			(819	)		404	(5)		(415	)		(31	)
Total other income (loss)		73			1,198		380		339			(648	)		1,342			(819	)		404			(415	)		927
Expenses:
Direct operating expenses		352			411		699		12			(648	)		826			—			—			—			826
Overhead expenses		—			—		—		304			—			304			—			—			—			304
Operating expenses		352			411		699		316			(648	)		1,130			—			—			—			1,130
Goodwill and acquired intangible assets impairment and amortization		—			—		—		—			—			—			—			543			543			543
Restructuring expenses		12			6		55		12			—			85			—			—			—			85
Total expenses		364			417		754		328			(648	)		1,215			—			543			543			1,758
Income (loss) from continuing operations, before income tax expense (benefit)		26			793		894		(23	)		—			1,690			—			(461	)		(461	)		1,229
Income tax expense (benefit)(3)		9			286		322		(11	)		—			606			—			(106	)		(106	)		500
Net income (loss) from continuing operations		17			507		572		(12	)		—			1,084			—			(355	)		(355	)		729
Income (loss) from discontinued operations, net of tax expense (benefit)		(3	)		12		—		(65	)		—			(56	)		—			(143	)		(143	)		(199	)
Net income (loss)	$	14		$	519	$	572	$	(77	)	$	—		$	1,028		$	—		$	(498	)	$	(498	)	$	530

⁽¹⁾  The eliminations in servicing revenue and direct operating expense represent the elimination of intercompany servicing revenue where the Business Services segment performs the loan servicing function for the FFELP Loans segment.

⁽²⁾  “Core Earnings” adjustments to GAAP:

	Year Ended December 31, 2010
(Dollars in millions)	Net Impact of Derivative Accounting			Net Impact of Goodwill and Acquired Intangibles			Total
Net interest income after provisions for loan losses	$	497		$	—		$	497
Total other loss		(415	)		—			(415	)
Goodwill and acquired intangible assets impairment and amortization		—			543			543
Total “Core Earnings” adjustments to GAAP	$	82		$	(543	)		(461	)
Income tax benefit								(106	)
Loss from discontinued operations, net of tax benefit								(143	)
Net loss							$	(498	)

⁽³⁾  Income taxes are based on a percentage of net income before tax for the individual reportable segment.

⁽⁴⁾  Represents a portion of the $(63) million of “other derivative accounting adjustments.”

⁽⁵⁾  Represents the $454 million of “unrealized gains on derivative and hedging activities, net” as well as the remaining portion of the $(63) million of “other derivative accounting adjustments.”

Core Earnings Adjustments to GAAP

The following table reflects aggregate adjustments associated with these areas.

	Years Ended December 31,
(Dollars in millions)	2012			2011			2010
“Core Earnings” adjustments to GAAP:
Net impact of derivative accounting(1)	$	(194	)	$	(540	)	$	82
Net impact of goodwill and acquired intangible assets(2)		(27	)		(21	)		(543	)
Net tax effect(3)		99			219			106
Net effect from discontinued operations		(1	)		(2	)		(143	)
Total “Core Earnings” adjustments to GAAP	$	(123	)	$	(344	)	$	(498	)

⁽¹⁾ Derivative accounting: “Core Earnings” exclude periodic unrealized gains and losses that are caused by the mark-to-market valuations on derivatives that do not qualify for hedge accounting treatment under GAAP as well as the periodic unrealized gains and losses that are a result of ineffectiveness recognized related to effective hedges under GAAP. These unrealized gains and losses occur in our Consumer Lending, FFELP Loans and Other business segments. Under GAAP, for our derivatives that are held to maturity, the cumulative net unrealized gain or loss over the life of the contract will equal $0 except for Floor Income Contracts where the cumulative unrealized gain will equal the amount for which we sold the contract. In our “Core Earnings” presentation, we recognize the economic effect of these hedges, which generally results in any net settlement cash paid or received being recognized ratably as an interest expense or revenue over the hedged item’s life.

⁽²⁾ Goodwill and acquired intangible assets: Our “Core Earnings” exclude goodwill and intangible asset impairment and amortization of acquired intangible assets.

⁽³⁾ Net Tax Effect: Such tax effect is based upon our “Core Earnings” effective tax rate for the year.