Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 31, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Entity Registrant Name | NELNET INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1,092,135,927 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,258,602 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q4 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 31,729,166 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,476,932 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Student loans receivable, net | $ 28,324,552 | $ 28,005,195 |
Cash and cash equivalents: | ||
Cash and cash equivalents - not held at a related party | 11,379 | 37,781 |
Cash and cash equivalents - held at a related party | 52,150 | 92,700 |
Total cash and cash equivalents | 63,529 | 130,481 |
Investments and notes receivable | 303,681 | 235,709 |
Restricted cash and investments | 832,624 | 850,440 |
Restricted cash - due to customers | 144,771 | 118,488 |
Accrued interest receivable | 383,825 | 351,588 |
Accounts receivable (net of allowance for doubtful accounts of $2,003 and $1,656, respectively) | 51,345 | 50,552 |
Goodwill | 146,000 | 126,200 |
Intangible assets, net | 51,062 | 42,582 |
Property and equipment, net | 80,482 | 45,894 |
Other assets | 75,344 | 76,622 |
Fair value of derivative instruments | 28,690 | 64,392 |
Fair value of derivative instrument, net | 28,690 | 64,392 |
Total assets | 30,485,905 | 30,098,143 |
Liabilities: | ||
Bonds and notes payable | 28,172,682 | 28,027,350 |
Accrued interest payable | 31,507 | 25,904 |
Other liabilities | 169,906 | 167,881 |
Due to customers | 144,771 | 118,488 |
Fair value of derivative instruments | 74,881 | 32,842 |
Total liabilities | 28,593,747 | 28,372,465 |
Nelnet, Inc. shareholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock: | ||
Additional paid-in capital | 0 | 17,290 |
Retained earnings | 1,881,708 | 1,702,560 |
Accumulated other comprehensive earnings | 2,284 | 5,135 |
Total Nelnet, Inc. shareholders' equity | 1,884,432 | 1,725,448 |
Noncontrolling interest | 7,726 | 230 |
Total equity | 1,892,158 | 1,725,678 |
Commitments and contingencies | ||
Total liabilities and equity | 30,485,905 | 30,098,143 |
Common Class A [Member] | ||
Common stock: | ||
Common stock | 325 | 348 |
Common Class B [Member] | ||
Common stock: | ||
Common stock | 115 | 115 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets: | ||
Student loans receivable, net | 28,499,180 | 28,181,244 |
Cash and cash equivalents: | ||
Restricted cash and investments | 814,294 | 846,199 |
Other assets | 384,230 | 351,934 |
Fair value of derivative instrument, net | (64,080) | (20,455) |
Liabilities: | ||
Bonds and notes payable | 28,405,133 | 28,391,530 |
Other liabilities | 353,607 | 280,233 |
Commitments and contingencies | ||
Net assets of consolidated variable interest entities | $ 874,884 | $ 687,159 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses | $ 50,498 | $ 48,900 |
Allowance for doubtful accounts (in Dollars) | $ 2,003 | $ 1,656 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common Class A [Member] | ||
Par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 600,000,000 | 600,000,000 |
Shares issued | 32,476,528 | 34,756,384 |
Shares outstanding | 32,476,528 | 34,756,384 |
Common Class B [Member] | ||
Par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 60,000,000 | 60,000,000 |
Shares issued | 11,476,932 | 11,486,932 |
Shares outstanding | 11,476,932 | 11,486,932 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Loan interest | $ 726,258 | $ 703,007 | $ 638,142 |
Investment interest | 7,851 | 6,793 | 6,668 |
Total interest income | 734,109 | 709,800 | 644,810 |
Interest expense: | |||
Interest on bonds and notes payable | 302,210 | 273,237 | 230,935 |
Net interest income | 431,899 | 436,563 | 413,875 |
Less provision for loan losses | 10,150 | 9,500 | 18,500 |
Net interest income after provision for loan losses | 421,749 | 427,063 | 395,375 |
Other income (expense): | |||
Loan and guaranty servicing revenue | 239,858 | 240,414 | 243,428 |
Tuition payment processing, school information, and campus commerce revenue | 120,365 | 98,156 | 80,682 |
Enrollment services revenue | 70,705 | 82,883 | 98,078 |
Other income, net | 27,630 | 54,002 | 46,298 |
Gain on sale of loans and debt repurchases, net | 5,153 | 3,651 | 11,699 |
Derivative market value and foreign currency adjustments and derivative settlements, net | 4,401 | 15,860 | 18,957 |
Total other income | 468,112 | 494,966 | 499,142 |
Operating expenses: | |||
Salaries and benefits | 247,914 | 228,079 | 196,169 |
Cost to provide enrollment services | 45,535 | 53,307 | 64,961 |
Loan servicing fees | 30,213 | 27,009 | 23,881 |
Depreciation and amortization | 26,343 | 21,134 | 18,311 |
Other | 119,212 | 122,981 | 125,661 |
Total operating expenses | 469,217 | 452,510 | 428,983 |
Income before income taxes | 420,644 | 469,519 | 465,534 |
Income tax expense | 152,380 | 160,238 | 161,193 |
Net income | 268,264 | 309,281 | 304,341 |
Net income attributable to noncontrolling interest | 285 | 1,671 | 1,669 |
Net income attributable to Nelnet, Inc. | $ 267,979 | $ 307,610 | $ 302,672 |
Earnings per common share: | |||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ 5.89 | $ 6.62 | $ 6.50 |
Weighted average common shares outstanding - basic and diluted | 45,529,340 | 46,469,615 | 46,570,314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 83,518 | $ 48,977 | $ 70,963 | $ 64,806 | $ 73,919 | $ 85,376 | $ 75,687 | $ 74,299 | $ 268,264 | $ 309,281 | $ 304,341 |
Available-for-sale securities: | |||||||||||
Unrealized holding (losses) gains arising during period, net | (1,570) | 9,006 | 9,134 | ||||||||
Less reclassification adjustment for gains recognized in net income, net of losses | (2,955) | (8,506) | (5,938) | ||||||||
Income tax effect | 1,674 | (184) | (1,190) | ||||||||
Total other comprehensive (loss) income | (2,851) | 316 | 2,006 | ||||||||
Comprehensive income | 265,413 | 309,597 | 306,347 | ||||||||
Comprehensive income attributable to noncontrolling interest | $ 168 | $ 22 | $ 54 | $ 41 | $ 308 | $ 157 | $ 693 | $ 513 | 285 | 1,671 | 1,669 |
Comprehensive income attributable to Nelnet, Inc. | $ 265,128 | $ 307,926 | $ 304,678 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive earnings [Member] | Noncontrolling interest [Member] | Common Class A [Member]Common Stock [Member] | Common Class B [Member]Common Stock [Member] |
Balance (in Shares) at Dec. 31, 2012 | 0 | 35,116,913 | 11,495,377 | |||||
Balance at Dec. 31, 2012 | $ 1,165,213 | $ 0 | $ 32,540 | $ 1,129,389 | $ 2,813 | $ 5 | $ 351 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interest | 5 | 5 | ||||||
Net income attributable to Nelnet, Inc. | 302,672 | 302,672 | ||||||
Net income attributable to noncontrolling interest | 1,669 | 1,669 | ||||||
Net income | 304,341 | |||||||
Other comprehensive income | 2,006 | 2,006 | ||||||
Distribution to noncontrolling interest | (1,351) | (1,351) | ||||||
Cash dividend on Class A and Class B common stock | (18,569) | (18,569) | ||||||
Issuance of common stock, net of forfeitures (in Shares) | 157,684 | 0 | ||||||
Issuance of common stock, net of forfeitures | 2,379 | 2,377 | $ 2 | $ 0 | ||||
Compensation expense for stock based awards | 3,102 | 3,102 | ||||||
Repurchase of common stock (in Shares) | (393,259) | 0 | ||||||
Repurchase of common stock | (13,136) | (13,132) | $ (4) | $ 0 | ||||
Balance (in Shares) at Dec. 31, 2013 | 0 | 34,881,338 | 11,495,377 | |||||
Balance at Dec. 31, 2013 | 1,443,990 | $ 0 | 24,887 | 1,413,492 | 4,819 | 328 | $ 349 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interest | 201 | 201 | ||||||
Net income attributable to Nelnet, Inc. | 307,610 | 307,610 | ||||||
Net income attributable to noncontrolling interest | 1,671 | 1,671 | ||||||
Net income | 309,281 | |||||||
Other comprehensive income | 316 | 316 | ||||||
Distribution to noncontrolling interest | (1,970) | (1,970) | ||||||
Cash dividend on Class A and Class B common stock | (18,542) | (18,542) | ||||||
Issuance of common stock, net of forfeitures (in Shares) | 248,290 | 0 | ||||||
Issuance of common stock, net of forfeitures | 3,554 | 3,551 | $ 3 | $ 0 | ||||
Compensation expense for stock based awards | 4,561 | 4,561 | ||||||
Repurchase of common stock (in Shares) | (381,689) | 0 | ||||||
Repurchase of common stock | $ (15,713) | (15,709) | $ (4) | $ 0 | ||||
Conversion of Stock, Shares Converted | 0 | 8,445 | (8,445) | |||||
Conversion of Stock, Amount Converted | $ 0 | $ 0 | ||||||
Balance (in Shares) at Dec. 31, 2014 | 0 | 34,756,384 | 11,486,932 | |||||
Balance at Dec. 31, 2014 | $ 1,725,678 | $ 0 | 17,290 | 1,702,560 | 5,135 | 230 | $ 348 | $ 115 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interest | 7,443 | 7,443 | ||||||
Net income attributable to Nelnet, Inc. | 267,979 | 267,979 | ||||||
Net income attributable to noncontrolling interest | 285 | 285 | ||||||
Net income | 268,264 | |||||||
Other comprehensive income | (2,851) | (2,851) | ||||||
Distribution to noncontrolling interest | (232) | (232) | ||||||
Cash dividend on Class A and Class B common stock | (19,025) | (19,025) | ||||||
Issuance of common stock, net of forfeitures (in Shares) | 159,303 | 0 | ||||||
Issuance of common stock, net of forfeitures | 3,862 | 3,860 | $ 2 | $ 0 | ||||
Compensation expense for stock based awards | 5,188 | 5,188 | ||||||
Repurchase of common stock (in Shares) | (2,449,159) | 0 | ||||||
Repurchase of common stock | $ (96,169) | (26,338) | (69,806) | $ (25) | $ 0 | |||
Conversion of Stock, Shares Converted | 0 | 10,000 | (10,000) | |||||
Conversion of Stock, Amount Converted | $ 0 | $ 0 | ||||||
Balance (in Shares) at Dec. 31, 2015 | 0 | 32,476,528 | 11,476,932 | |||||
Balance at Dec. 31, 2015 | $ 1,892,158 | $ 0 | $ 0 | $ 1,881,708 | $ 2,284 | $ 7,726 | $ 325 | $ 115 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividend on Class A and Class B common stock - per share | $ 0.42 | $ 0.40 | $ 0.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income attributable to Nelnet, Inc. | $ 267,979 | $ 307,610 | $ 302,672 |
Net income attributable to noncontrolling interest | 285 | 1,671 | 1,669 |
Net income | 268,264 | 309,281 | 304,341 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | |||
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs | 123,736 | 107,969 | 79,484 |
Student loan discount accretion | (43,766) | (43,479) | (36,258) |
Provision for loan losses | 10,150 | 9,500 | 18,500 |
Derivative market value adjustment | 15,150 | 20,310 | (83,878) |
Foreign currency transaction adjustment | (43,801) | (58,013) | 35,285 |
Payment to enter into derivative instruments | (2,936) | (9,087) | 0 |
Proceeds to terminate and/or amend derivative instruments, net of payments | 65,527 | 1,765 | 65,890 |
(Gain) loss on sale of loans, net | (351) | 2,964 | (33) |
Gain from debt repurchases | (4,802) | (6,615) | (11,666) |
Gain from sale of available-for-sale securities, net | (2,955) | (8,506) | (5,938) |
(Purchases) proceeds related to trading securities, net | (3,120) | 3,128 | 0 |
Deferred income tax expense | 7,049 | 19,659 | 2,539 |
Non-cash compensation expense | 5,347 | 4,699 | 3,329 |
Other | 3,875 | 7,127 | 112 |
(Increase) decrease in accrued interest receivable | (3,819) | 5,205 | 8,341 |
Decrease in accounts receivable | 1,061 | 6,690 | 7,566 |
Decrease (increase) in other assets | 375 | 2,372 | (4,783) |
Increase (decrease) in accrued interest payable | 5,117 | 3,009 | (433) |
(Decrease) increase in other liabilities | (8,736) | (20,529) | 4,782 |
Net cash provided by operating activities | 391,365 | 357,449 | 387,180 |
Cash flows from investing activities, net of acquisitions: | |||
Purchases of student loans and student loan residual interests | (2,189,450) | (3,753,936) | (2,392,676) |
Net proceeds from student loan repayments, claims, capitalized interest, and other | 3,668,302 | 3,700,005 | 2,852,177 |
Proceeds from sale of student loans | 3,996 | 50,190 | 43,292 |
Purchases of available-for-sale securities | (100,476) | (192,998) | (219,894) |
Proceeds from sales of available-for-sale securities | 95,758 | 241,793 | 103,250 |
Purchases of investments and issuance of notes receivable | (93,948) | (45,925) | (20,302) |
Proceeds from investments and notes receivable | 29,799 | 15,819 | 0 |
Purchases of property and equipment, net | (16,761) | (26,488) | (17,010) |
Decrease (increase) in restricted cash and investments, net | 67,108 | (51,135) | 147,743 |
Business and asset acquisitions, net of cash acquired | (46,966) | (46,833) | 0 |
Net cash provided by (used in) investing activities | 1,417,362 | (109,508) | 496,580 |
Cash flows from financing activities, net of borrowings assumed: | |||
Payments on bonds and notes payable | (4,368,180) | (3,632,741) | (5,153,057) |
Proceeds from issuance of bonds and notes payable | 2,614,595 | 3,502,316 | 4,312,720 |
Payments of debt issuance costs | (11,162) | (14,934) | (13,697) |
Dividends paid | (19,025) | (18,542) | (18,569) |
Repurchases of common stock | (96,169) | (15,713) | (13,136) |
Proceeds from issuance of common stock | 801 | 656 | 561 |
Issuance of noncontrolling interest | 3,693 | 201 | 5 |
Distribution to noncontrolling interest | (232) | (1,970) | (1,351) |
Net cash (used in) financing activities | (1,875,679) | (180,727) | (886,524) |
Net (decrease) increase in cash and cash equivalents | (66,952) | 67,214 | (2,764) |
Cash and cash equivalents, beginning of year | 130,481 | 63,267 | 66,031 |
Cash and cash equivalents, end of year | 63,529 | 130,481 | 63,267 |
Cash disbursements made for: | |||
Interest | 228,248 | 210,700 | 190,998 |
Income taxes, net of refunds | 147,235 | 155,828 | 154,840 |
Noncash investing and financing activities: | |||
Student loans and other assets acquired | 2,025,453 | 2,571,997 | 1,715,260 |
Sale of education lending subsidiary, including student loans and other assets | 0 | 246,376 | 0 |
Note receivable obtained in connection with sale of education lending subsidiary | 0 | 20,737 | 0 |
Borrowings and other liabilities transferred in sale of education lending subsidiary | 0 | 225,139 | 0 |
Borrowings and other liabilities assumed in acquisition of student loans | 1,885,453 | 2,444,874 | 1,676,761 |
Issuance of minority interest | $ 3,750 | $ 0 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Product Information [Line Items] | |
Description of Business [Text Block] | Description of Business Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is a diverse company with a focus on delivering education-related products and services and student loan asset management. The largest operating businesses engage in student loan servicing, tuition payment processing and school information systems, and telecommunications. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including, but not limited to, investments in real estate and start-up ventures. Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States. The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the Federal Family Education Loan Program (“FFELP” or “FFEL Program”) of the U.S. Department of Education (the “Department”). Effective July 1, 2010, the Health Care and Education Reconciliation Act of 2010 (the "Reconciliation Act of 2010”) prohibits new loan originations under the FFEL Program and requires that all new federal student loan originations be made through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. As a result of this law, the Company no longer originates new FFELP loans. However, the Company believes there may be continued opportunities to purchase FFELP loan portfolios from current FFELP loan holders as the program winds down. To reduce its reliance on interest income on student loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as business acquisitions. On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of Allo Communications LLC (“Allo”). The remaining 7.5 percent of the ownership interests of Allo is owned by Allo management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ), of the total ownership interests based on the financial performance of Allo. Allo provides pure fiber optic service to homes and businesses for internet, television, and telephone services. The acquisition of Allo provides additional diversification of the Company's revenues and cash flows outside of education. In addition, the acquisition leverages the Company's existing infrastructure, customer service capabilities and call centers, and financial strength and liquidity for continued growth. For financial reporting purposes, the Company will disclose the operating results of Allo as a separate reportable operating segment. The Allo assets acquired and liabilities assumed were recorded by the Company at their respective estimated fair values at the date of acquisition. As such, Allo’s assets and liabilities as of December 31, 2015 are included in the Company’s consolidated balance sheet. However, Allo had no impact on the consolidated statement of income for 2015. Beginning January 1, 2016, the Company will reflect the operations of Allo in the consolidated statements of income. Revenue from telecommunications services will be recognized when the services are provided to customers. The Company has four reportable operating segments. The Company's reportable operating segments include: • Student Loan and Guaranty Servicing • Tuition Payment Processing and Campus Commerce • Asset Generation and Management • Telecommunications A description of each reportable operating segment is included below. See note 14 for additional information on the Company's segment reporting. Student Loan and Guaranty Servicing The following are the primary products and services the Company offers as part of its Student Loan and Guaranty Servicing operating segment: • Servicing federally-owned student loans for the Department • Servicing FFELP loans • Marketing, originating, and servicing private education loans • Servicing and outsourcing services for FFELP guaranty agencies, including FFELP guaranty collection services • Providing student loan servicing software and other information technology products and services • Providing outsourced services including call center, processing, and marketing services The Student Loan and Guaranty Servicing operating segment provides for the servicing of the Company's student loan portfolio and the portfolios of third parties. The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing. These activities are performed internally for the Company's portfolio in addition to generating external fee revenue when performed for third-party clients. The Company is one of four private sector companies awarded a student loan servicing contract by the Department to provide additional servicing capacity for loans owned by the Department. This operating segment also provides servicing activities for guaranty agencies, which serve as intermediaries between the Department and FFELP lenders, and are responsible for paying the claims made on defaulted loans. The services provided by the Company include providing software and data center services, borrower and loan updates, default aversion tracking services, claim processing services, and post-default collection services. This operating segment also provides student loan servicing software, which is used internally by the Company and licensed to third-party student loan holders and servicers. These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans. In addition, this segment provides business process outsourcing specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, and interacting with customers through multi-channels. Tuition Payment Processing and Campus Commerce The Company's Tuition Payment Processing and Campus Commerce operating segment provides products and services to help students and families manage the payment of education costs. In addition, this operating segment provides school information system software for private and faith-based schools that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management. This segment also provides innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. In the K-12 market, the Company offers actively managed tuition payment plans and billing services, school information system software, and assistance with financial needs assessment and donor management. In the higher education market, the Company primarily offers actively managed tuition payment plans and campus commerce technologies and payment processing. Asset Generation and Management The Company's Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's student loan assets. Nearly all student loan assets included in this segment are loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“Consolidation”). The Company generates a substantial portion of its earnings from the spread, referred to as the Company's student loan spread, between the yield it receives on its student loan portfolio and the associated costs to finance such portfolio. The student loan assets are held in a series of education lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the student loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment. Telecommunications As discussed previously, on December 31, 2015, the Company acquired 92.5 percent of the membership interests of Allo. Allo derives its revenue primarily from the sale of advanced telecommunication services to residential and business customers in Nebraska, including internet, television, and telephone services. Internet and television services include revenue from residential and business customers for subscriptions to Allo's video and data products. Allo data services can provide high-speed internet access at various symmetrical speeds of up to 1 gigabit per second. Local calling services include fiber telephone service and other basic services. Long-distance services include traditional domestic and international long distance which enables customers to make calls that terminate outside their local calling area. Corporate and Other Activities Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items: • The operating results of Whitetail Rock Capital Management, LLC ("WRCM"), the Company's SEC-registered investment advisory subsidiary • The operating results of the Enrollment Services business • Income earned on certain investment activities • Interest expense incurred on unsecured debt transactions • Other product and service offerings that are not considered reportable operating segments Corporate and Other Activities also include certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies and Practices Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries, including its education lending subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. The Company's education lending subsidiaries (or Variable Interest Entities ("VIEs")) are engaged in the securitization of education finance assets. These education lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's education lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each education lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company has determined it is the primary beneficiary of its education lending subsidiaries (VIEs). The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company is generally the administrator and master servicer of the securitized assets held in its education lending subsidiaries and owns the residual interest of the securitization trusts. As a result, for accounting purposes, the transfers of student loans to the eligible lender trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet. Reclassifications Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include: • Reclassifying certain investments and notes receivable, which were previously included in "other assets" to "investments and notes receivable." • Reclassifying third-party loan servicing fees, which were previously included in "other" operating expenses to "loan servicing fees." The reclassifications had no effect on consolidated net income or consolidated assets and liabilities. Noncontrolling Interest Noncontrolling interest reflects the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities: • Whitetail Rock Capital Management, LLC (“WRCM”) - WRCM is the Company’s SEC-registered investment advisory subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012. • Allo Communications LLC - On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of Allo. The remaining 7.5 percent of the ownership interests of Allo is owned by Allo management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ) of the total ownership interests based on the financial performance of Allo. • 401 Building, LLC (“401 Building”) - 401 Building is an entity established on October 19, 2015 for the sole purpose of acquiring, developing, and operating a commercial building. The Company owns 50 percent of 401 Building. • TDP Phase Three, LLC (“TDP”) - TDP is an entity established on October 20, 2015 for the sole purpose of developing and operating a commercial building. The Company owns 25 percent of TDP. The Company plans to be a tenant in the buildings being developed by 401 Building and TDP once development is complete. Because the Company, as lessee, is involved in the asset construction, 401 Building and TDP is included in the Company's consolidated financial statements. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. Student Loans Receivable Student loans consist of federally insured student loans and private education loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2015 and 2014. Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. The borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance period. Interest rates on loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Student loans receivable also includes private education loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFELP. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Allowance for Loan Losses The allowance for loan losses represents management's estimate of probable losses on student loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its private education loan portfolio. These evaluation processes are subject to numerous judgments and uncertainties. The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, current economic conditions, and other relevant factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company's loss exposure on the outstanding balance of the Company's federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured. In determining the appropriate allowance for loan losses on the private education loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places a private education loan on nonaccrual status when the collection of principal and interest is 90 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses. Management has determined that each of the federally insured loan portfolio and the private education loan portfolio meets the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 3 for each of these portfolios. The Company does not disaggregate its portfolio segment student loan portfolios into classes of financing receivables. The Company collectively evaluates loans for impairment and as of December 31, 2015 and 2014 , the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification. For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. Cash and Cash Equivalents and Statement of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all investments with maturities when purchased of three months or less to be cash equivalents. Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. Net purchased accrued interest was $71.4 million , $55.0 million , and $29.0 million in 2015 , 2014 , and 2013 , respectively. Investments The Company's available-for-sale investment portfolio consists of student loan asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income. Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income. Securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity and are accounted for at amortized cost unless the security is determined to have an other-than-temporary impairment. In that case, it is accounted for in the same manner as described above for available-for-sale investments. When an investment is sold, the cost basis is determined through specific identification of the security sold. The Company accounts for investments in which it does not have significant influence or a controlling financial interest using the cost method of accounting. Cost method investments are recorded at cost. Cost method investments are evaluated for other-than-temporary impairment in the same manner as described above for available-for-sale investments. The Company accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized. Restricted Cash and Investments Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties. Cash balances that the Company's indentured trusts deposit in guaranteed investment contracts that are held for the related asset-backed note holders are classified as restricted investments. The Company has classified these investments as held-to-maturity and accounts for them at amortized cost, which approximates fair value. Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Tuition Payment Processing and Campus Commerce operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection. Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings. Goodwill The Company reviews goodwill for impairment annually (in the fourth quarter) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a two-step impairment test on goodwill. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates. See note 9 for information regarding the Company's annual goodwill impairment review. Intangible Assets Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method. The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Equipment held under capital leases are stated at the lower of the fair value of the asset or the net present value of the minimum lease payments at the inception of the lease. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Equipment held under capital leases and leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset. Impairment of Long‑Lived Assets The Company reviews its long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company uses estimates to determine the fair value of long-lived assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimating fair value if such methods are determined to be more appropriate. Assumptions and estimates about future values and remaining useful lives of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results. Other Assets Other assets are recorded at cost or amortized cost and consist primarily of debt issuance costs and prepaid expenses. Debt issuance costs are amortized using the effective interest method. Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include: • Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable. • Level 3: Instruments whose primary value drivers are unobservable . Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Revenue Recognition Loan interest income - Loan interest is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, the Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the SAP index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan. The Company recognizes student loan income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments (“borrower benefits”) and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loan, which includes an estimate of prepayment rates. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income. Student loan and guaranty servicing revenue – Student loan and guaranty servicing revenue consists of the following items: • Loan and guaranty servicing fees – Loan servicing fees are determined according to individual agreements with customers and are calculated based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Guaranty servicing fees are generally calculated based on the number of loans serviced, volume of loans serviced, or amounts collected. Revenue is recognized over the period in which services are provided to customers, and when ultimate collection is assured. • Guaranty collections revenue – Guaranty collections revenue is earned when collected. Collection costs paid to third parties associated with this revenue is expensed upon successful collection. • Software services revenue – Software services revenue is determined from individual agreements with customers and includes license and maintenance fees associated with student loan software products. Computer and software consulting and remote hosting revenues are recognized over the period in which services are provided to customers. Tuition payment processing, school information, and campus commerce revenue - Tuition payment processing, school information, and campus commerce revenue includes actively managed tuition payment solutions, remote hosted school information systems software, and online payment processing. Fees for these services are recognized over the period in which services are provided to customers. Cash received in advance of the delivery of services is included in deferred revenue. Enrollment Services Revenue – Enrollment services revenue primarily consists of the following items: • Inquiry Generation and Management - This revenue is derived primarily from fees which are earned through the delivery of qualified inquiries or clicks. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified inquiry or click is delivered to the customer, provided that no significant obligations remain. From time to time, the Company may agree to credit certain inquiries or clicks if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been immaterial and within management’s expectations. For a portion of this revenue, the Company has agreements with providers of online media or traffic (“inquiry generation vendors”) used in the generation of inquiries or clicks. The Company receives a fee from its customers and pays a fee to the inquiry generation vendors either on a cost per inquiry, cost per click, or cost per number of impressions basis. The Company is the primary obligor in the transaction. As a result, the fees paid by the Company’s customers are recognized as revenue and the fees paid to its inquiry generation vendors are included in “cost to provide enrollment services” in the Company’s consolidated statements of income. • Content Solutions - Several content solutions services, including services to connect students to colleges and universities, are sold b |
Student Loans Receivable and Al
Student Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Student Loans Receivable and Allowance for Loan Losses | Student Loans Receivable and Allowance for Loan Losses Student loans receivable consisted of the following: As of December 31, 2015 2014 Federally insured loans Stafford and other $ 6,202,064 6,030,825 Consolidation 22,086,043 22,165,605 Total 28,288,107 28,196,430 Private education loans 267,642 27,478 28,555,749 28,223,908 Loan discount, net of unamortized loan premiums and deferred origination costs (a) (180,699 ) (169,813 ) Allowance for loan losses – federally insured loans (35,490 ) (39,170 ) Allowance for loan losses – private education loans (15,008 ) (9,730 ) $ 28,324,552 28,005,195 (a) At December 31, 2015 and 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.0 million and $28.8 million , respectively, of non-accretable discount associated with purchased loan portfolios of $10.8 billion and $8.5 billion , respectively. Acquisition of Student Loan Residual Interests On October 31, 2013, the Company acquired the ownership interest in a federally insured student loan securitization trust giving the Company rights to the residual interest in $1.6 billion of securitized federally insured consolidation loans. The trust includes loans funded to term with $1.6 billion (par value) of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction." On April 25, 2014, the Company acquired the ownership interest in three FFELP student loan securitization trusts giving the Company rights to the residual interest in a total of $2.6 billion of securitized federally insured loans and related assets. These trusts include loans funded to term with $2.6 billion (par value) of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction." On May 26, 2015, the Company acquired the ownership interest in a federally insured student loan securitization trust, giving the Company rights to the residual interest in $504.2 million of securitized federally insured loans. The trust includes loans funded to term with $448.9 million (par value) of bonds and notes payable. On August 3, 2015, the Company acquired the ownership interest in two federally insured student loan securitization trusts, giving the Company rights to the residual interest in $1.5 billion of securitized federally insured loans. The two trusts include loans funded to term with $1.5 billion (par value) of bonds and notes payable. The Company has consolidated the previously disclosed trusts on its consolidated balance sheet because management has determined the Company is the primary beneficiary of the trusts. Upon acquisition, the Company recorded all assets and liabilities of the trusts at fair value, resulting in the Company recognizing a student loan fair value discount of $52.9 million , $68.7 million , and $40.9 million , during the years 2013, 2014, and 2015, respectively. Additionally, a bonds and notes payable net fair value discount of $91.8 million , $163.7 million , and $84.5 million , was recorded by the Company in 2013, 2014, and 2015, respectively. These discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities. All other assets acquired and liabilities assumed (restricted cash, accrued interest receivable/payable, and other assets/liabilities) were recorded at cost, which approximates fair value. Private Education Loans During 2015, the Company entered into an agreement with CommonBond, Inc. ("CommonBond"), a student lending company that provides private education loans to graduate students, under which the Company committed to purchase private education loans for a period of 18 months , with the total purchase obligation limited to $200.0 million . As of December 31, 2015 , the Company had purchased $160.1 million in private education loans from CommonBond pursuant to this agreement. Activity in the Allowance for Loan Losses The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below. Year ended December 31, 2015 2014 2013 Balance at beginning of period $ 48,900 55,122 51,902 Provision for loan losses: Federally insured loans 8,000 11,000 20,000 Private education loans 2,150 (1,500 ) (1,500 ) Total provision for loan losses 10,150 9,500 18,500 Charge-offs: Federally insured loans (11,730 ) (15,260 ) (15,588 ) Private education loans (2,414 ) (2,332 ) (3,683 ) Total charge-offs (14,144 ) (17,592 ) (19,271 ) Recoveries - private education loans 1,050 1,315 1,577 Purchase (sale) of federally insured loans, net 50 (10 ) (1,093 ) Sale of private education loans, net (140 ) (1,620 ) — Transfer from repurchase obligation related to private education loans repurchased, net 4,632 2,185 3,507 Balance at end of period $ 50,498 48,900 55,122 Allocation of the allowance for loan losses: Federally insured loans $ 35,490 39,170 43,440 Private education loans 15,008 9,730 11,682 Total allowance for loan losses $ 50,498 48,900 55,122 Repurchase Obligation The Company has sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the sale agreements in the event such loans become 60 or 90 days delinquent. As of December 31, 2015 and 2014, the balance of loans subject to these repurchase obligations was $46.8 million and $155.3 million , respectively. The Company repurchased $98.6 million of private education loans during 2015 as a result of terminating such agreements. The Company's estimate related to its obligation to repurchase these loans is included in "other liabilities" in the Company's consolidated balance sheets and was $2.7 million and $11.8 million , as of December 31, 2015 and 2014, respectively. Student Loan Status and Delinquencies Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The table below shows the Company’s loan delinquency amounts. As of December 31, 2015 2014 2013 Federally insured loans: Loans in-school/grace/deferment (a) $ 2,292,941 $ 2,805,228 $ 2,872,505 Loans in forbearance (b) 2,979,357 3,288,412 3,370,025 Loans in repayment status: Loans current 19,447,541 84.4 % 18,460,279 83.5 % 16,337,922 82.4 % Loans delinquent 31-60 days (c) 1,028,396 4.5 1,043,119 4.8 967,318 4.9 Loans delinquent 61-90 days (c) 566,953 2.5 588,777 2.7 550,333 2.9 Loans delinquent 91-120 days (c) 415,747 1.8 404,905 1.8 390,791 2.0 Loans delinquent 121-270 days (c) 1,166,940 5.1 1,204,405 5.4 1,117,936 5.6 Loans delinquent 271 days or greater (c)(d) 390,232 1.7 401,305 1.8 443,373 2.2 Total loans in repayment 23,015,809 100.0 % 22,102,790 100.0 % 19,807,673 100.0 % Total federally insured loans $ 28,288,107 $ 28,196,430 $ 26,050,203 Private education loans: Loans in-school/grace/deferment (a) $ 30,795 $ 905 $ 2,700 Loans in forbearance (b) 350 — 366 Loans in repayment status: Loans current 228,464 96.7 % 18,390 69.2 % 59,001 86.7 % Loans delinquent 31-60 days (c) 1,771 0.7 1,078 4.1 1,672 2.5 Loans delinquent 61-90 days (c) 1,283 0.5 1,035 3.9 1,718 2.5 Loans delinquent 91 days or greater (c) 4,979 2.1 6,070 22.8 5,646 8.3 Total loans in repayment 236,497 100.0 % 26,573 100.0 % 68,037 100.0 % Total private education loans $ 267,642 $ 27,478 $ 71,103 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
Bonds and Notes Payable
Bonds and Notes Payable | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Bonds and Notes Payable | Bonds and Notes Payable The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of December 31, 2015 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in asset-backed securitizations: Bonds and notes based on indices $ 25,155,336 0.05% - 6.90% 8/26/19 - 8/26/52 Bonds and notes based on auction 1,160,365 0.88% - 2.17% 3/22/32 - 11/26/46 Total variable-rate bonds and notes 26,315,701 FFELP warehouse facilities 1,855,907 0.27% - 0.56% 4/29/18 - 12/14/18 Private education loan warehouse facility 181,184 0.57% 12/26/16 Unsecured line of credit 100,000 1.79% - 1.92% 10/30/20 Unsecured debt - Junior Subordinated Hybrid Securities 57,184 3.99% 9/15/61 Other borrowings 93,355 1.93% - 3.38% 10/31/16 - 12/15/45 28,603,331 Discount on bonds and notes payable (430,649 ) Total $ 28,172,682 As of December 31, 2014 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in asset-backed securitizations: Bonds and notes based on indices $ 25,713,431 0.19% - 6.90% 5/25/18 - 8/26/52 Bonds and notes based on auction 1,311,669 0.47% - 2.17% 3/22/32 - 11/26/46 Total variable-rate bonds and notes 27,025,100 FFELP warehouse facilities 1,241,665 0.16% - 0.26% 1/17/16 - 6/11/17 Unsecured line of credit — — 6/30/19 Unsecured debt - Junior Subordinated Hybrid Securities 71,688 3.63% 9/15/61 Other borrowings 81,969 1.67% - 5.10% 11/11/15 - 12/31/18 28,420,422 Discount on bonds and notes payable (393,072 ) Total $ 28,027,350 Secured Financing Transactions The Company has historically relied upon secured financing vehicles as its most significant source of funding for student loans. The net cash flow the Company receives from the securitized student loans generally represents the excess amounts, if any, generated by the underlying student loans over the amounts required to be paid to the bondholders, after deducting servicing fees and any other expenses relating to the securitizations. The Company’s rights to cash flow from securitized student loans are subordinate to bondholder interests, and the securitized student loans may fail to generate any cash flow beyond what is due to bondholders. The Company’s secured financing vehicles during the periods presented include loan warehouse facilities and asset-backed securitizations. The majority of the bonds and notes payable are primarily secured by the student loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective bond resolutions or financing agreements. FFELP warehouse facilities The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements. As of December 31, 2015 , the Company had three FFELP warehouse facilities as summarized below. NHELP-III NFSLW-I NHELP-II Total Maximum financing amount $ 750,000 875,000 500,000 2,125,000 Amount outstanding 738,034 686,764 431,109 1,855,907 Amount available $ 11,966 188,236 68,891 269,093 Expiration of liquidity provisions April 29, 2016 July 8, 2016 December 16, 2016 Final maturity date April 29, 2018 July 9, 2018 December 14, 2018 Maximum advance rates 92.2 - 95.0% 92.0 - 98.0% 85.0 - 95.0% Minimum advance rates 92.2 - 95.0% 84.0 - 90.0% 85.0 - 95.0% Advanced as equity support $ 45,301 32,757 36,089 114,147 Each FFELP warehouse facility is supported by 364-day liquidity provisions, which are subject to the respective expiration date shown in the previous table. In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date. The NFSLW-I warehouse facility provides for formula-based advance rates, depending on FFELP loan type, up to a maximum of the principal and interest of loans financed as shown in the table above. The advance rates for collateral may increase or decrease based on market conditions, but they are subject to minimums as disclosed above. The NHELP-III and NHELP-II warehouse facilities have static advance rates that require initial equity for loan funding, but do not require increased equity based on market movements. The FFELP warehouse facilities contain financial covenants relating to levels of the Company’s consolidated net worth, ratio of recourse indebtedness to adjusted EBITDA, and unencumbered cash. Any noncompliance with these covenants could result in a requirement for the immediate repayment of any outstanding borrowings under the facilities. Asset-backed securitizations The following tables summarize the asset-backed securitization transactions completed in 2015 and 2014 . Securitizations completed during the year ended December 31, 2015 2015-1 2015-2 2015-3 Total Class A-1 notes Class A-2 notes 2015-2 total Class A-1 notes Class A-2 notes Class A-3 notes 2015-3 total Date securities issued 2/27/15 3/26/15 3/26/15 3/26/15 5/21/15 5/21/15 5/21/15 5/21/15 Total original principal amount $ 566,346 122,500 584,500 722,000 82,500 270,000 41,400 401,400 $ 1,689,746 Class A senior notes: Total original principal amount $ 553,232 122,500 584,500 707,000 82,500 270,000 41,400 393,900 1,654,132 Bond discount — — — — — (380 ) (1,095 ) (1,475 ) (1,475 ) Issue price $ 553,232 122,500 584,500 707,000 82,500 269,620 40,305 392,425 1,652,657 Cost of funds (1-month LIBOR plus:) 0.59 % 0.27 % 0.60 % 0.30 % 0.60 % 0.90 % Final maturity date 4/25/41 3/25/20 9/25/42 1/27/25 2/26/46 6/25/49 Class B subordinated notes: Total original principal amount $ 13,114 15,000 7,500 35,614 Bond discount (1,157 ) (1,793 ) (968 ) (3,918 ) Issue price $ 11,957 13,207 6,532 31,696 Cost of funds (1-month LIBOR plus:) 1.50 % 1.50 % 1.50 % Final maturity date 6/25/46 5/25/49 6/27/50 Securitizations completed during the year ended December 31, 2014 2014-1 2014-2 2014-3 2014-4 2014-5 2014-6 Total Class A-1 notes Class A-2 notes Class A-3 notes 2014-2 total Class A-1 notes Class A-2 notes 2014-4 total Date securities issued 2/6/14 3/12/14 3/12/14 3/12/14 3/12/14 4/30/14 5/23/14 5/23/14 5/23/14 6/18/14 7/31/14 Total original principal amount $ 458,500 191,000 222,000 84,000 509,000 719,800 267,500 107,500 384,500 603,000 565,000 $ 3,239,800 Class A senior notes: Total original principal amount $ 445,000 191,000 222,000 84,000 497,000 700,700 267,500 107,500 375,000 587,000 565,000 3,169,700 Bond discount — — — (535 ) (535 ) — — — — — (3,124 ) (3,659 ) Issue price $ 445,000 191,000 222,000 83,465 496,465 700,700 267,500 107,500 375,000 587,000 561,876 3,166,041 Cost of funds (1-month LIBOR plus:) 0.57 % 0.28 % 0.60 % 0.85 % 0.58 % 0.54 % 0.95 % 0.55 % 0.65 % Final maturity date 9/25/41 6/25/21 3/25/30 7/27/37 6/25/41 11/27/34 11/25/43 7/25/41 11/25/47 Class B subordinated notes: Total original principal amount $ 13,500 12,000 19,100 9,500 16,000 70,100 Bond discount (1,132 ) (1,046 ) (1,467 ) (1,138 ) (1,232 ) (6,015 ) Issue price $ 12,368 10,954 17,633 8,362 14,768 64,085 Cost of funds (1-month LIBOR plus:) 1.50 % 1.50 % 1.50 % 1.50 % 1.50 % Final maturity date 10/25/47 6/25/41 10/25/50 9/25/51 5/25/49 Auction Rate Securities The interest rates on certain of the Company's asset-backed securities are set and periodically reset via a "dutch auction" ("Auction Rate Securities"). As of December 31, 2015 , the Company is currently the sponsor on $1.2 billion of Auction Rate Securities. Since February 2008, problems in the auction rate securities market as a whole have led to failures of the auctions pursuant to which the Company's Auction Rate Securities' interest rates are set. As a result, the Auction Rate Securities generally pay interest to the holder at a maximum rate as defined by the indenture. While these rates will vary, they will generally be based on a spread to LIBOR or Treasury Securities, or the Net Loan Rate as defined in the indenture. Based on the relative levels of these indices as of December 31, 2015 , the rates expected to be paid by the Company range from 91-day T-Bill plus 125 basis points, on the low end, to LIBOR plus 250 basis points, on the high end. These maximum rates are subject to increase if the credit ratings on the bonds are downgraded. Private Education Loan Warehouse Facility On June 26, 2015, the Company entered into a $275.0 million private education loan warehouse facility. As of December 31, 2015 , there was $181.2 million outstanding on the facility and $93.8 million was available for future use. The facility has a static advance rate that requires initial equity for loan funding, but does not require increased equity based on market movements. The maximum advance rate on the entire facility is 88 percent and minimum advance rates, depending on loan characteristics and program type, range from 64 percent to 99 percent . As of December 31, 2015 , $25.2 million was advanced on the facility as equity support. The facility is supported by liquidity provisions, which have a defined expiration date of June 24, 2016 . In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date of December 26, 2016 . Unsecured Line of Credit The Company has a $350.0 million unsecured line of credit that has a maturity date of October 30, 2020 . As of December 31, 2015 , the unsecured line of credit had $100.0 million outstanding and $250.0 million was available for future use. The line of credit agreement contains certain financial covenants that, if not met, lead to an event of default under the agreement. The covenants include maintaining: • A minimum consolidated net worth • A minimum adjusted EBITDA to corporate debt interest (over the last four rolling quarters) • A limitation on recourse indebtedness • A limitation on the amount of unsecuritized private education loans in the Company’s portfolio • A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business As of December 31, 2015 , the Company was in compliance with all of these requirements. Many of these covenants are duplicated in the Company's other lending facilities, including its warehouse facilities. The Company's operating line of credit does not have any covenants related to unsecured debt ratings. However, changes in the Company's ratings (as well as the amounts the Company borrows) have modest implications on the pricing level at which the Company obtains funds A default on the Company's warehouse facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit becoming immediately due and payable. Junior Subordinated Hybrid Securities On September 27, 2006, the Company issued $200.0 million aggregate principal amount of Junior Subordinated Hybrid Securities ("Hybrid Securities"). The Hybrid Securities are unsecured obligations of the Company. The interest rate on the Hybrid Securities through September 29, 2036 ("the scheduled maturity date") is equal to three-month LIBOR plus 3.375% , payable quarterly, which was 3.99% at December 31, 2015 . The principal amount of the Hybrid Securities will become due on the scheduled maturity date only to the extent that prior to such date the Company has received proceeds from the sale of certain qualifying capital securities (as defined in the Hybrid Securities' indenture). If any amount is not paid on the scheduled maturity date, it will remain outstanding and bear interest at a floating rate as defined in the indenture, payable monthly. On September 15, 2061, the Company must pay any remaining principal and interest on the Hybrid Securities in full whether or not the Company has sold qualifying capital securities. At the Company's option, the Hybrid Securities are redeemable in whole or in part at their principal amount plus accrued and unpaid interest, provided in the case of a redemption in part that the principal amount outstanding after such redemption is at least $50.0 million . As of December 31, 2015 , the outstanding balance on the Hybrid Securities was $57.2 million . Other Borrowings The Company has a $75.0 million line of credit, which is collateralized by asset-backed security investments, with a maturity date of October 31, 2016 . The line of credit has covenants and cross default provisions similar to those under the Company's unsecured line of credit. As of December 31, 2015 , $75.0 million was outstanding on this line of credit. The Company also has two notes payable, which were each issued by TDP on December 30, 2015 in connection with the development of a commercial building. As of December 31, 2015, one note has $12.0 million outstanding with a maturity date of March 31, 2023 ; the other note has $6.4 million outstanding with a maturity date of December 15, 2045 . Both of these notes have a fixed interest rate of 3.38%. Debt Covenants Certain bond resolutions contain, among other requirements, covenants relating to restrictions on additional indebtedness, limits as to direct and indirect administrative expenses, and maintaining certain financial ratios. Management believes the Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2015 . Maturity Schedule Bonds and notes outstanding as of December 31, 2015 are due in varying amounts as shown below. 2016 $ 256,184 2017 — 2018 1,855,907 2019 173,755 2020 194,648 2021 and thereafter 26,122,837 $ 28,603,331 Generally, the Company's secured financing instruments bearing interest at variable rates can be redeemed on any interest payment date at par plus accrued interest. Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain education lending subsidiaries. Debt Repurchases The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases, net" on the Company’s consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Par value Purchase price Gain Year ended December 31, 2015 2014 2013 Unsecured debt - Hybrid Securities $ 14,504 11,374 3,130 24,769 19,761 5,008 2,775 2,080 695 Asset-backed securities 32,026 30,354 1,672 29,243 27,636 1,607 87,696 76,725 10,971 $ 46,530 41,728 4,802 54,012 47,397 6,615 90,471 78,805 11,666 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Interest Rate Risk The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company has adopted a policy of periodically reviewing the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses derivative instruments as part of its overall risk management strategy. Derivative instruments used as part of the Company's interest rate risk management strategy currently include basis swaps and interest rate swaps. Basis Swaps Interest earned on the majority of the Company's FFELP student loan assets is indexed to the one-month LIBOR rate. Meanwhile, the Company funds a majority of its assets with three-month LIBOR indexed floating rate securities. The different interest rate characteristics of the Company's loan assets and liabilities funding these assets results in basis risk. The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily. As of December 31, 2015 , the Company had $26.0 billion , $1.4 billion , and $0.8 billion of FFELP loans indexed to the one-month LIBOR rate, three-month commercial paper rate , and the three-month treasury bill rate , respectively, the indices for which reset daily, and $15.8 billion of debt indexed to three-month LIBOR , the indices for which reset quarterly, and $10.1 billion of debt indexed to one-month LIBOR , the indices for which reset monthly. The Company has used derivative instruments to hedge its basis risk and repricing risk. The Company has entered into basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the 1:3 Basis Swaps). The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2015 2014 Maturity Notional amount Notional amount 2016 $ 7,500,000 — 2021 — 250,000 2022 — 1,900,000 2023 — 3,650,000 2024 — 250,000 2026 — 800,000 2028 — 100,000 2036 — 700,000 2039 — 150,000 $ 7,500,000 7,800,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2015 and 2014 , was one-month LIBOR plus 10.0 basis points and 3.5 basis points, respectively. Interest rate swaps – floor income hedges FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of the borrower rate, which is fixed over a period of time, or a floating rate based on the Special Allowance Payments ("SAP") formula set by the Department. The SAP rate is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income. Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. All FFELP loans first originated on or after April 1, 2006 effectively earn at the SAP rate, since lenders are required to rebate fixed rate floor income and variable rate floor income for these loans to the Department. Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced. As of December 31, 2015 and 2014, the Company had $11.1 billion and $12.7 billion , respectively, of student loan assets that were earning fixed rate floor income, of which the weighted average estimated variable conversion rate for these loans, which is the estimated short-term interest rate at which loans would convert to a variable rate, was 2.15% and 1.84% , respectively. The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 2015 As of December 31, 2014 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2015 $ — — % $ 1,100,000 0.89 % 2016 1,000,000 0.76 750,000 0.85 2017 2,100,000 0.84 1,250,000 0.86 2018 1,600,000 1.08 — — 2019 500,000 1.12 — — 2025 100,000 2.32 — — $ 5,300,000 0.95 % $ 3,100,000 0.87 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. On August 20, 2014, the Company paid $9.1 million for an interest rate swaption to economically hedge loans earning fixed rate floor income. The interest rate swap option gives the Company the right, but not the obligation, to enter into a $250 million notional interest rate swap in which the Company would pay a fixed amount of 3.30% and receive discrete one-month LIBOR . If the interest rate swap option is exercised, the swap would become effective in 2019 and mature in 2024. Interest rate swaps – unsecured debt hedges As of December 31, 2015 and 2014 , the Company had $57.2 million and $71.7 million , respectively, of unsecured Hybrid Securities outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375% , payable quarterly. As of December 31, 2015 and 2014 , the Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a portion of the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28% (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. Interest Rate Caps In June 2015, in conjunction with the entry into the $275.0 million private education loan warehouse facility, the Company paid $2.9 million for two interest rate cap contracts with a total notional amount of $275.0 million . The first interest rate cap has a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50% , and the second interest rate cap has a notional amount of $150.0 million and a one-month LIBOR strike rate of 4.99% . In the event that the one-month LIBOR rate rises above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts have a maturity date of July 15, 2020. Foreign Currency Exchange Risk In 2006, the Company issued €352.7 million of student loan asset-backed Euro Notes (the "Euro Notes") with an interest rate based on a spread to the EURIBOR index. As a result of the Euro Notes, the Company is exposed to market risk related to fluctuations in foreign currency exchange rates between the U.S. dollar and Euro. The principal and accrued interest on these notes are re-measured at each reporting period and recorded in the Company’s consolidated balance sheet in U.S. dollars based on the foreign currency exchange rate on that date. Changes in the principal and accrued interest amounts as a result of foreign currency exchange rate fluctuations are included in the Company’s consolidated statements of income. The Company entered into a cross-currency interest rate swap in connection with the issuance of the Euro Notes. Under the terms of the cross-currency interest rate swap, the Company receives from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and pays a spread to the LIBOR index based on a notional amount of $450.0 million . In addition, under the terms of this agreement, all principal payments on the Euro Notes will effectively be paid at the exchange rate in effect between the U.S. dollar and Euro as of the issuance of the notes. The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments. Year ended December 31, 2015 2014 2013 (b) Re-measurement of Euro Notes $ 43,801 58,013 (35,285 ) Change in fair value of cross currency interest rate swaps (45,195 ) (57,289 ) 26,354 Total impact to consolidated statements of income - (expense) income (a) $ (1,394 ) 724 (8,931 ) (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income. (b) The 2013 operating results include the re-measurement of an additional €420.5 million of student loan asset-backed Euro notes and the change in fair value of a related cross-currency interest rate swap entered into in connection with the issuance of such notes. In November 2013, the principal amount outstanding on the notes was changed to U.S. dollars and the cross-currency interest swap was terminated. The re-measurement of the Euro-denominated bonds generally correlates with the change in fair value of the corresponding cross-currency interest rate swap. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swap if the two underlying indices (and related forward curve) do not move in parallel. Consolidated Financial Statement Impact Related to Derivatives The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheets. Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 1:3 basis swaps $ 724 53,549 410 — Interest rate swaps - floor income hedges 21,408 5,165 1,175 5,034 Interest rate swap option - floor income hedge 3,257 5,678 — — Interest rate swaps - hybrid debt hedges — — 7,646 7,353 Interest rate caps 1,570 — — — Cross-currency interest rate swap — — 65,650 20,455 Other 1,731 — — — Total $ 28,690 64,392 74,881 32,842 During the years ended December 31, 2015 and 2014, the Company terminated certain derivatives for net proceeds of $65.5 million and $1.8 million , respectively. Offsetting of Derivative Assets/Liabilities The Company records derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain of the Company's derivative instruments are subject to right of offset provisions with counterparties. The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged: Gross amounts not offset in the consolidated balance sheets Derivative assets Gross amounts of recognized assets presented in the consolidated balance sheets Derivatives subject to enforceable master netting arrangement Cash collateral pledged (received) Net asset (liability) Balance as of December 31, 2015 $ 28,690 (851 ) 1,632 29,471 Balance as of December 31, 2014 64,392 (12,387 ) — 52,005 Gross amounts not offset in the consolidated balance sheets Derivative liabilities Gross amounts of recognized liabilities presented in the consolidated balance sheets Derivatives subject to enforceable master netting arrangement Cash collateral pledged (received) Net asset (liability) Balance as of December 31, 2015 $ (74,881 ) 851 13,168 (60,862 ) Balance as of December 31, 2014 (32,842 ) 12,387 (1,454 ) (21,909 ) The following table summarizes the effect of derivative instruments in the consolidated statements of income. Year ended December 31, 2015 2014 2013 Settlements: 1:3 basis swaps $ 1,058 3,389 3,301 Interest rate swaps - floor income hedges (23,041 ) (24,380 ) (31,022 ) Interest rate swaps - hybrid debt hedges (1,012 ) (1,025 ) (1,670 ) Cross-currency interest rate swaps (1,255 ) 173 (245 ) Total settlements - (expense) income (24,250 ) (21,843 ) (29,636 ) Change in fair value: 1:3 basis swaps 12,292 36,824 7,467 Interest rate swaps - floor income hedges 20,103 8,797 36,719 Interest rate swap option - floor income hedge (2,420 ) (3,409 ) — Interest rate swaps - hybrid debt hedges (295 ) (5,233 ) 12,997 Interest rate caps (1,365 ) — — Cross-currency interest rate swaps (45,195 ) (57,289 ) 26,354 Other 1,730 — 341 Total change in fair value - (expense) income (15,150 ) (20,310 ) 83,878 Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) 43,801 58,013 (35,285 ) Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense) $ 4,401 15,860 18,957 Derivative Instruments - Credit and Market Risk By using derivative instruments, the Company is exposed to credit and market risk. The Company manages credit and market risks associated with interest rates by establishing and monitoring limits as to the types and degree of risk that may be undertaken and by entering into transactions with high-quality counterparties that are reviewed periodically by the Company's risk committee. As of December 31, 2015 , all of the Company's derivative counterparties had investment grade credit ratings. The Company also has a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association, Inc. Master Agreement. Credit Risk When the fair value of a derivative contract is positive (an asset in the Company's consolidated balance sheet), this generally indicates that the counterparty would owe the Company if the derivative was settled. If the counterparty fails to perform, credit risk with such counterparty is equal to the extent of the fair value gain in the derivative less any collateral held by the Company. If the Company was unable to collect from a counterparty, it would have a loss equal to the amount the derivative is recorded in the consolidated balance sheet. The Company considers counterparties' credit risk when determining the fair value of derivative positions on its exposure net of collateral. However, the Company does not use the collateral to offset fair value amounts recognized for derivative instruments in the financial statements. Market Risk When the fair value of a derivative instrument is negative (a liability in the Company's consolidated balance sheet), the Company would owe the counterparty if the derivative was settled and, therefore, has no immediate credit risk. If the negative fair value of derivatives with a counterparty exceeds a specified threshold, the Company may have to make a collateral deposit with the counterparty. The threshold at which the Company may be required to post collateral is dependent upon the Company's unsecured credit rating. The Company believes any downgrades from its current unsecured credit rating (Standard & Poor's: BBB- (stable outlook) and Moody's: Ba1 (stable outlook)), would not result in additional collateral requirements of a material nature. In addition, no counterparty has the right to terminate its contracts in the event of downgrades from the current rating. However, some derivative contracts have mutual optional termination provisions that can be exercised during 2022. As of December 31, 2015 , the fair value of derivatives with early termination provisions was a negative $2.8 million (a liability on the Company's balance sheet). Interest rate movements have an impact on the amount of collateral the Company is required to deposit with its derivative instrument counterparties. With the Company's current derivative portfolio, the Company does not currently anticipate near term movement in interest rates having a material impact on its liquidity or capital resources, nor expects future movements in interest rates to have a material impact on its ability to meet potential collateral deposits with its counterparties. Due to the existing low interest rate environment, the Company's exposure to downward movements in interest rates on its interest rate swaps is limited. In addition, the historical high correlation between one-month and three-month LIBOR limits the Company's exposure to interest rate movements on the 1:3 Basis Swaps. The Company's cross-currency interest rate swap was entered into as a result of an asset-backed security financing and was entered into at the securitization trust level with the counterparty. Trust related derivatives do not contain credit contingent features related to the Company or the trust's credit ratings. As such, there are no collateral requirements and as a result the impact of changes to foreign currency rates has no impact on the amount of collateral the Company would be required to deposit with the counterparty on this derivative. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Investments and Notes Receivable A summary of the Company's investments and notes receivable follows: As of December 31, 2015 As of December 31, 2014 Amortized cost Gross unrealized gains Gross unrealized losses (a) Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Investments (at fair value): Available-for-sale investments: Student loan asset-backed and other debt securities (b) $ 139,970 3,402 (1,362 ) 142,010 131,589 6,204 (236 ) 137,557 Equity securities 846 1,686 (100 ) 2,432 1,553 2,216 (33 ) 3,736 Total available-for-sale investments $ 140,816 5,088 (1,462 ) 144,442 133,142 8,420 (269 ) 141,293 Trading investments: Student loan asset-backed securities 6,045 7,830 Equity securities 4,905 — Total trading investments 10,950 7,830 Total available-for-sale and trading investments 155,392 149,123 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds (c) 63,323 19,987 Real estate (d) 50,463 18,661 Notes receivable (e) 18,473 22,255 Tax liens and affordable housing 16,030 25,683 Total investments and notes receivable $ 303,681 235,709 (a) As of December 31, 2015 , the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. (b) As of December 31, 2015 , the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table: Year of Maturity: Amortized cost Fair value Within 1 year $ 6,323 6,283 1-5 years 125 125 6-10 years 279 279 After 10 years 133,243 135,323 Total $ 139,970 142,010 (c) As of December 31, 2015 and 2014, "Venture capital and funds" included $41.4 million and $0.8 million , respectively, of the Company's equity investment in Hudl. See note 19 for further information. (d) As of December 31, 2015, "Real estate" included $25.0 million of the Company's investment in TDP. This investment includes $3.5 million of land, construction in progress, and related assets and $21.5 million of restricted cash to be used for real estate development. TDP has notes payable of $18.4 million outstanding as of December 31, 2015. (e) As of December 31, 2015 and 2014, "Notes receivable" included $17.3 million and $20.7 million , respectively, of a note receivable obtained in connection with the sale of an education lending subsidiary. The following table summarizes the amount included in "other income, net" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading. Year ended December 31, 2015 2014 2013 Available-for-sale securities: Gross realized gains $ 3,402 8,581 6,270 Gross realized losses (447 ) (75 ) (332 ) Trading securities: Unrealized (losses) gains, net (715 ) (135 ) 221 Realized (losses) gains, net (2,097 ) (1,082 ) 5 $ 143 7,289 6,164 |
Business Combination Busniess C
Business Combination Busniess Combination (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combination Wilcomp Software, L.P. (d.b.a. RenWeb School Management Software) (“RenWeb”) On June 3, 2014 , the Company purchased 100 percent of the ownership interests of RenWeb. RenWeb provides school information systems for private and faith-based schools that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management. The combination of RenWeb’s school administration software and the Company’s tuition management and financial needs assessment services is expected to significantly increase the value of the Company’s offerings in this area, allowing the Company to deliver a comprehensive suite of solutions to schools. The initial consideration paid by the Company for RenWeb was $44.0 million . In addition to the initial purchase price, additional payments are to be paid by the Company to the former owners of RenWeb based on certain operating results and other performance measures of RenWeb as defined in the purchase agreement. The contingent payments, if any, are payable when earned, and the potential undiscounted amount of all future payments that the Company could be required to make under the contingent consideration arrangement was between $0 and $4.0 million . As of the acquisition date, the Company accrued $2.3 million as additional consideration, which represented the estimated fair value of the contingent consideration arrangement. In December 2014, the Company reduced the estimated fair value of the contingent consideration by $1.3 million . During 2015, the Company increased the estimated fair value of the contingent consideration by $0.9 million and paid $1.0 million of contingent consideration to the former owners. All remaining payments, if any, are to be paid no later than January 2017. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 326 Accounts receivable 961 Property and equipment 105 Other assets 22 Intangible assets 37,188 Excess cost over fair value of net assets acquired (goodwill) 9,082 Other liabilities (1,341 ) Net assets acquired $ 46,343 The $37.2 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 18 years . The intangible assets that made up this amount included customer relationships of $25.5 million ( 20 -year useful life), trade name of $6.4 million ( 20 -year useful life), computer software of $4.9 million ( 5 -year useful life), and non-competition agreements of $0.4 million ( 10 -year useful life). The $9.1 million of goodwill was assigned to the Tuition Payment Processing and Campus Commerce operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributable to anticipated synergies as discussed previously. The proforma impacts of the acquisition on the Company's historical results prior to the acquisition were not material. Allo On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of Allo for total cash consideration of $46.25 million . The remaining 7.5 percent of the ownership interests of Allo is owned by Allo management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ) of the total ownership interests based on the financial performance of Allo. Allo provides pure fiber optic service to homes and businesses for internet, television, and telephone services. The acquisition of Allo provides additional diversification of the Company's revenues and cash flows outside of education. In addition, the acquisition leverages the Company's existing infrastructure, customer service capabilities and call centers, and financial strength and liquidity for continued growth. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair values of the assets and liabilities related to Allo are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition. Cash and cash equivalents $ 334 Restricted cash and investments 850 Accounts receivable 1,854 Property and equipment 34,377 Other assets 405 Intangible assets 11,140 Excess cost over fair value of net assets acquired (goodwill) 19,800 Other liabilities (4,856 ) Bonds and notes payable (13,904 ) Net assets acquired 50,000 Minority interest (3,750 ) Total consideration paid by the Company $ 46,250 The $11.1 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 12 years. The intangible assets that made up this amount included customer relationships of $6.1 million ( 10 -year useful life) and a trade name of $5.0 million ( 15 -year useful life). The $19.8 million of goodwill was assigned to the Telecommunications operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributable to future customers to be generated through the continued expansion of Allo's services in rural markets. The proforma impacts of the acquisition on the Company's historical results prior to the acquisition were not material. |
Intangible Assets Intangible As
Intangible Assets Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets Disclosure [Text Block] | Intangible Assets Intangible assets consist of the following: Weighted average remaining useful life as of December 31, 2015 (months) As of December 31, 2015 As of December 31, 2014 Amortizable intangible assets: Customer relationships (net of accumulated amortization of $23,195 and $17,361, respectively) 199 $ 27,576 27,330 Computer software (net of accumulated amortization of $4,397 and $1,896, respectively) 34 11,601 6,969 Trade names (net of accumulated amortization of $795 and $272, respectively) 202 10,687 6,150 Content (net of accumulated amortization of $900 and $0, respectively) 12 900 1,800 Covenants not to compete (net of accumulated amortization of $56 and $21, respectively) 101 298 333 Total - amortizable intangible assets 158 $ 51,062 42,582 The Company recorded amortization expense on its intangible assets of $9.8 million , $6.5 million , and $3.3 million during the years ended December 31, 2015, 2014, and 2013 , respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2015 , the Company estimates it will record amortization expense as follows: 2016 $ 9,990 2017 7,002 2018 6,533 2019 3,886 2020 3,564 2021 and thereafter 20,087 $ 51,062 |
Goodwill Goodwill
Goodwill Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill Disclosure [Text Block] | Goodwill The change in the carrying amount of goodwill by reportable operating segment was as follows: Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Generation and Management (a) Tele- communications Corporate and Other Activities Total Balance as of December 31, 2013 $ 8,596 58,086 41,883 — 8,553 117,118 Goodwill acquired during the period — 9,082 — — — 9,082 Balance as of December 31, 2014 8,596 67,168 41,883 — 8,553 126,200 Goodwill acquired during the period — — — 19,800 — 19,800 Balance as of December 31, 2015 $ 8,596 67,168 41,883 19,800 8,553 146,000 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. The Company reviews goodwill for impairment annually. This annual review is completed by the Company as of November 30 of each year and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. For the 2013 , 2014 , and 2015 annual review of goodwill, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform the two-step impairment test and concluded there was no impairment of goodwill. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property and Equipment Property and equipment, including $1.3 million of telecommunications customer located property owned under capital leases as of December 31, 2015, consisted of the following: As of December 31, Useful life 2015 2014 Non-telecommunications: Computer equipment and software 1-5 years $ 89,093 85,294 Office furniture and equipment 3-7 years 12,638 12,265 Building and building improvements 5-39 years 12,239 11,336 Transportation equipment 4-10 years 3,868 3,877 Leasehold improvements 5-20 years 3,545 3,645 Land — 700 700 Construction in progress — 1,210 13,168 123,293 130,285 Accumulated depreciation - non-telecommunications 77,188 84,391 Non-telecommunications, net property and equipment 46,105 45,894 Telecommunications: Network plant and fiber 5-15 years 25,669 — Customer located property 5-10 years 6,912 — Central office 5-15 years 909 — Other 1-20 years 887 — 34,377 — Accumulated depreciation - telecommunications — — Telecommunications, net property and equipment 34,377 — Total property and equipment, net $ 80,482 45,894 Depreciation expense for the years ended December 31, 2015 , 2014 , and 2013 related to property and equipment was $16.5 million , $14.6 million , and $15.1 million , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Classes of Common Stock The Company's common stock is divided into two classes. The Class B common stock has ten votes per share and the Class A common stock has one vote per share on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights. Stock Repurchases The Company has a stock repurchase program that expires on May 24, 2018 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise. As of December 31, 2015 , 3.2 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2015 , 2014 , and 2013 are shown in the table below. Total shares repurchased Purchase price (in thousands) Average price of shares repurchased (per share) Year ended December 31, 2015 2,449,159 $ 96,169 $ 39.27 Year ended December 31, 2014 381,689 15,713 41.17 Year ended December 31, 2013 393,259 13,136 33.40 |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Year ended December 31, 2015 2014 2013 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 265,129 2,850 267,979 304,540 3,070 307,610 300,043 2,629 302,672 Denominator: Weighted-average common shares outstanding - basic and diluted 45,045,199 484,141 45,529,340 46,005,915 463,700 46,469,615 46,165,785 404,529 46,570,314 Earnings per share - basic and diluted $ 5.89 5.89 5.89 6.62 6.62 6.62 6.50 6.50 6.50 Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation. As of December 31, 2015 , a cumulative amount of 146,901 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Tax Disclosure | Income Taxes The Company is subject to income taxes in the United States, Canada, and Australia. Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. As required by the Income Taxes Topic of the FASB Accounting Standards Codification, the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. As of December 31, 2015 , the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $27.7 million , which is included in “other liabilities” on the consolidated balance sheet. Of this total, $18.0 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $6.6 million prior to December 31, 2016 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $6.6 million decrease, $4.3 million , if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2015 2014 Gross balance - beginning of year $ 21,336 19,141 Additions based on tax positions of prior years 4,749 1,421 Additions based on tax positions related to the current year 5,096 4,393 Settlements with taxing authorities — (833 ) Reductions for tax positions of prior years (1,327 ) (641 ) Reductions based on tax positions related to the current year — — Reductions due to lapse of applicable statutes of limitations (2,166 ) (2,145 ) Gross balance - end of year $ 27,688 21,336 All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate. The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of December 31, 2015 and 2014 , $3.2 million and $2.1 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The Company recognized interest expense of $1.2 million and $0.1 million related to uncertain tax positions for the years ended December 31, 2015 and 2014 , respectively. During 2013, the Company recognized a decrease to interest expense of $1.3 million . The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2015, 2014, and 2013. The impact of timing differences and tax attributes are considered when calculating interest and penalty accruals associated with the unrecognized tax benefits. The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and the Company or one of its subsidiaries files income tax returns in various state, local, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2011. The Company is no longer subject to U.S. state and local income tax examinations by tax authorities prior to 2007. As of December 31, 2015 , the Company has significant tax uncertainties that remain unsettled in the following jurisdictions: California 2010 through 2012 New York 2008 through 2011 Texas 2007 through 2009 The provision for income taxes consists of the following components: Year ended December 31, 2015 2014 2013 Current: Federal $ 140,778 138,269 153,756 State 4,530 2,545 4,776 Foreign 23 (235 ) 122 Total current provision 145,331 140,579 158,654 Deferred: Federal 3,572 16,598 1,676 State 3,875 3,464 868 Foreign (398 ) (403 ) (5 ) Total deferred provision 7,049 19,659 2,539 Provision for income tax expense $ 152,380 160,238 161,193 The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2015 2014 2013 Tax expense at federal rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State tax, net of federal income tax benefit 1.0 0.7 0.8 Provision for uncertain federal and state tax matters 0.9 0.4 (0.6) Tax credits (0.5) (0.4) (0.4) Other (0.1) (1.4) — Effective tax rate 36.3 % 34.3 % 34.8 % The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2015 2014 Deferred tax assets: Student loans $ 20,711 21,139 Intangible assets 10,482 12,682 Securitizations 6,684 7,626 Capital loss carry-back 4,169 3,974 Accrued expenses 3,034 2,872 Stock compensation 2,882 2,490 Deferred revenue 2,220 1,548 Other — 109 Total gross deferred tax assets 50,182 52,440 Less valuation allowance (222 ) (304 ) Net deferred tax assets 49,960 52,136 Deferred tax liabilities: Basis in certain derivative contracts 24,101 15,692 Debt repurchases 18,759 24,918 Loan origination services 15,695 19,258 Depreciation 5,514 4,122 Partnership basis 1,748 1,143 Unrealized gain on debt and equity securities 1,400 3,016 Other 47 — Total gross deferred tax liabilities 67,264 68,149 Net deferred tax (liability) asset $ (17,304 ) (16,013 ) The Company has performed an evaluation of the recoverability of deferred tax assets. In assessing the realizability of the Company's deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected taxable income, carry back opportunities, and tax planning strategies in making the assessment of the amount of the valuation allowance. With the exception of a portion of the Company's state net operating loss, it is management's opinion that it is more likely than not that the deferred tax assets will be realized and should not be reduced by a valuation allowance. The amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. Included on the balance sheet at December 31, 2015 and 2014 was a current income tax receivable of $12.0 million and $10.2 million , respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has four reportable operating segments. The Company's reportable operating segments include: • Student Loan and Guaranty Servicing • Tuition Payment Processing and Campus Commerce • Asset Generation and Management • Telecommunications The Company earns fee-based revenue through its Student Loan and Guaranty Servicing and Tuition Payment Processing operating segments. In addition, the Company earns interest income on its student loan portfolio in its Asset Generation and Management operating segment. On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of Allo. Allo provides pure fiber optic service to homes and businesses for internet, television, and telephone services. The acquisition of Allo provides additional diversification of the Company's revenues and cash flows outside of education. For financial reporting purposes, the Company will disclose the operating results of Allo as a separate reportable operating segment. The Allo assets acquired and liabilities assumed were recorded by the Company at their respective estimated fair values at the date of acquisition. As such, Allo’s assets and liabilities as of December 31, 2015 are included in the Company’s consolidated balance sheet. However, Allo had no impact on the consolidated statement of income during 2015. Beginning January 1, 2016, the Company will reflect the operations of Allo in the consolidated statements of income. The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1, "Description of Business," for a description of each operating segment, including the primary products and services offered. Effective January 1, 2015, internal reporting to executive management (the "chief operating decision maker") changed to reflect operational changes made within the organization. The operational and internal reporting changes included moving the majority of information technology infrastructure personnel and related functions to Corporate and Other Activities. The associated costs are allocated to the other operating segments based on those segments' actual use of information technology related products and services. Information technology infrastructure personnel and related functions were historically included within the Student Loan and Guaranty Servicing operating segment, and associated costs were allocated to the other operating segments based on those segments' actual use of the related products and services. Prior period segment operating results have been reclassified to reflect these changes; however, the reclassifications had no effect on any operating segment's net income. The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP. The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. Income taxes are allocated based on 38% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities. Corporate and Other Activities Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities includes the following items: • Income earned on certain investment activities • Interest expense incurred on unsecured debt transactions • Other product and service offerings that are not considered reportable operating segments including, but not limited to, WRCM, the SEC-registered investment advisory subsidiary, and the Enrollment Services business Corporate and Other Activities also includes certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, enterprise risk management, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services. Segment Results The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2015 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Telecommunications Corporate and Other Activities Eliminations Total Total interest income $ 49 3 728,199 — 7,686 (1,828 ) 734,109 Interest expense — — 297,625 — 6,413 (1,828 ) 302,210 Net interest income 49 3 430,574 — 1,273 — 431,899 Less provision for loan losses — — 10,150 — — — 10,150 Net interest income after provision for loan losses 49 3 420,424 — 1,273 — 421,749 Other income (expense): Loan and guaranty servicing revenue 239,858 — — — — — 239,858 Intersegment servicing revenue 50,354 — — — — (50,354 ) — Tuition payment processing, school information, and campus commerce revenue — 120,365 — — — — 120,365 Enrollment services revenue — — — — 70,705 — 70,705 Other income, net — (925 ) 15,939 — 12,616 — 27,630 Gain on sale of loans and debt repurchases, net — — 2,034 — 3,119 — 5,153 Derivative market value and foreign currency adjustments, net — — 27,216 — 1,435 — 28,651 Derivative settlements, net — — (23,238 ) — (1,012 ) — (24,250 ) Total other income (expense) 290,212 119,440 21,951 — 86,863 (50,354 ) 468,112 Operating expenses: Salaries and benefits 134,634 55,523 2,172 — 55,585 — 247,914 Cost to provide enrollment services — — — — 45,535 — 45,535 Loan servicing fees — — 30,213 — — — 30,213 Depreciation and amortization 1,931 8,992 — — 15,420 — 26,343 Other 57,799 15,161 5,083 — 41,169 — 119,212 Intersegment expenses, net 43,034 11,056 51,036 — (54,772 ) (50,354 ) — Total operating expenses 237,398 90,732 88,504 — 102,937 (50,354 ) 469,217 Income (loss) before income taxes and corporate overhead allocation 52,863 28,711 353,871 — (14,801 ) — 420,644 Corporate overhead allocation (9,628 ) (3,852 ) (4,816 ) — 18,296 — — Income before income taxes 43,235 24,859 349,055 — 3,495 — 420,644 Income tax (expense) benefit (16,430 ) (9,446 ) (132,641 ) — 6,137 — (152,380 ) Net income 26,805 15,413 216,414 — 9,632 — 268,264 Net income attributable to noncontrolling interest (20 ) — — — 305 — 285 Net income attributable to Nelnet, Inc. $ 26,825 15,413 216,414 — 9,327 — 267,979 Total assets $ 80,459 229,615 29,699,164 68,760 626,830 (218,923 ) 30,485,905 Year ended December 31, 2014 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Corporate and Other Activities Eliminations Total Total interest income $ 30 6 703,382 8,618 (2,236 ) 709,800 Interest expense — — 269,742 5,731 (2,236 ) 273,237 Net interest income 30 6 433,640 2,887 — 436,563 Less provision for loan losses — — 9,500 — — 9,500 Net interest income after provision for loan losses 30 6 424,140 2,887 — 427,063 Other income (expense): Loan and guaranty servicing revenue 240,414 — — — — 240,414 Intersegment servicing revenue 55,139 — — — (55,139 ) — Tuition payment processing, school information, and campus commerce revenue — 98,156 — — — 98,156 Enrollment services revenue — — — 82,883 — 82,883 Other income, net — 1,268 21,532 31,202 — 54,002 Gain on sale of loans and debt repurchases, net — — (1,357 ) 5,008 — 3,651 Derivative market value and foreign currency adjustments, net — — 42,935 (5,232 ) — 37,703 Derivative settlements, net — — (20,818 ) (1,025 ) — (21,843 ) Total other income (expense) 295,553 99,424 42,292 112,836 (55,139 ) 494,966 Operating expenses: Salaries and benefits 125,844 48,453 2,316 51,466 — 228,079 Cost to provide enrollment services — — — 53,307 — 53,307 Loan servicing fees — — 27,009 — — 27,009 Depreciation and amortization 1,734 8,169 — 11,231 — 21,134 Other 59,521 13,006 6,602 43,852 — 122,981 Intersegment expenses, net 36,646 5,864 55,808 (43,179 ) (55,139 ) — Total operating expenses 223,745 75,492 91,735 116,677 (55,139 ) 452,510 Income (loss) before income taxes and corporate overhead allocation 71,838 23,938 374,697 (954 ) — 469,519 Corporate overhead allocation (9,029 ) (3,010 ) (5,017 ) 17,056 — — Income before income taxes 62,809 20,928 369,680 16,102 — 469,519 Income tax (expense) benefit (23,867 ) (7,952 ) (140,477 ) 12,058 — (160,238 ) Net income 38,942 12,976 229,203 28,160 — 309,281 Net income attributable to noncontrolling interest — — — 1,671 — 1,671 Net income attributable to Nelnet, Inc. $ 38,942 12,976 229,203 26,489 — 307,610 Total assets $ 84,495 231,991 29,505,439 497,147 (220,929 ) 30,098,143 Year ended December 31, 2013 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Corporate and Other Activities Eliminations Total Total interest income $ 40 — 638,604 9,433 (3,267 ) 644,810 Interest expense — — 229,533 4,669 (3,267 ) 230,935 Net interest income 40 — 409,071 4,764 — 413,875 Less provision for loan losses — — 18,500 — — 18,500 Net interest income after provision for loan losses 40 — 390,571 4,764 — 395,375 Other income (expense): Loan and guaranty servicing revenue 243,428 — — — — 243,428 Intersegment servicing revenue 56,744 — — — (56,744 ) — Tuition payment processing, school information, and campus commerce revenue — 80,682 — — — 80,682 Enrollment services revenue — — — 98,078 — 98,078 Other income, net — — 15,223 32,218 (1,143 ) 46,298 Gain on sale of loans and debt repurchases — — 11,004 695 — 11,699 Derivative market value and foreign currency adjustments, net — — 35,256 13,337 — 48,593 Derivative settlements, net — — (27,966 ) (1,670 ) — (29,636 ) Total other income (expense) 300,172 80,682 33,517 142,658 (57,887 ) 499,142 Operating expenses: Salaries and benefits 106,825 37,575 2,292 49,477 — 196,169 Cost to provide enrollment services — — — 64,961 — 64,961 Loan servicing fees — — 23,881 — — 23,881 Depreciation and amortization 3,924 4,518 — 9,869 — 18,311 Other 67,494 9,147 7,064 43,099 (1,143 ) 125,661 Intersegment expenses, net 35,743 5,989 57,572 (42,560 ) (56,744 ) — Total operating expenses 213,986 57,229 90,809 124,846 (57,887 ) 428,983 Income before income taxes and corporate overhead allocation 86,226 23,453 333,279 22,576 — 465,534 Corporate overhead allocation (6,150 ) (1,957 ) (3,896 ) 12,003 — — Income before income taxes 80,076 21,496 329,383 34,579 — 465,534 Income tax (expense) benefit (30,430 ) (8,168 ) (125,165 ) 2,570 — (161,193 ) Net income 49,646 13,328 204,218 37,149 — 304,341 Net income attributable to noncontrolling interest — — — 1,669 — 1,669 Net income attributable to Nelnet, Inc. $ 49,646 13,328 204,218 35,480 — 302,672 Total assets $ 84,986 219,064 27,387,461 425,959 (346,621 ) 27,770,849 |
Major Customer Major Customer
Major Customer Major Customer | 12 Months Ended |
Dec. 31, 2015 | |
Major Customer [Abstract] | |
Concentration Risk Disclosure [Text Block] | Major Customer The Company earns loan servicing revenue from a servicing contract with the Department that currently expires on June 16, 2019. Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $133.2 million , $124.4 million , and $97.4 million for the years ended December 31, 2015, 2014, and 2013 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Leases The Company leases certain office space and equipment under operating leases and certain property and equipment related to its telecommunications business under capital leases. As operating leases expire, it is expected that they will be replaced with similar leases. Future minimum lease payments under these leases are shown below: Capital leases Operating leases 2016 $ 588 5,258 2017 333 4,192 2018 92 3,405 2019 7 2,512 2020 — 1,926 2021 and thereafter — 5,007 Total minimum lease payments 1,020 $ 22,300 Less amounts representing interest (67 ) Capital lease obligation (a) $ 953 (a) Capital leases are included in "other liabilities" on the Company's consolidated balance sheet. Total rental expense incurred by the Company for the years ended December 31, 2015 , 2014 , and 2013 was $8.1 million , $8.8 million , and $8.1 million , respectively. |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Benefit Plan [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Defined Contribution Benefit Plan The Company has a 401(k) savings plan that covers substantially all of its employees. Employees may contribute up to 100 percent of their pre‑tax salary, subject to IRS limitations. The Company matches up to 100 percent on the first 3 percent of contributions and 50 percent on the next 2 percent . The Company made contributions to the plan of $4.6 million , $4.2 million , and $3.8 million during the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Stock Based Compensation Plan
Stock Based Compensation Plan | 12 Months Ended |
Dec. 31, 2015 | |
Stock Based Compensation Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Based Compensation Plans Restricted Stock Plan The following table summarizes restricted stock activity: Year ended December 31, 2015 2014 2013 Non-vested shares at beginning of year 499,463 407,051 378,671 Granted 126,946 189,716 131,933 Vested (108,424 ) (77,219 ) (62,491 ) Canceled (46,388 ) (20,085 ) (41,062 ) Non-vested shares at end of year 471,597 499,463 407,051 As of December 31, 2015 , there was $8.7 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below. 2016 $ 3,477 2017 2,076 2018 1,256 2019 751 2020 440 2021 and thereafter 658 $ 8,658 For the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized compensation expense of $5.2 million , $4.6 million , and $3.1 million , respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income. Employee Share Purchase Plan The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized compensation expense of approximately $147,000 , $131,000 , and $148,000 , respectively, in connection with issuing 23,912 shares, 18,140 shares, and 18,004 shares, respectively, under this plan. Non-employee Directors Compensation Plan The Company has a compensation plan for non-employee directors pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of cash or Class A common stock. If a nonemployee director elects to receive Class A common stock, the number of shares of Class A common stock that are awarded is equal to the amount of the annual retainer fee otherwise payable in cash divided by 85 percent of the fair market value of a share of Class A common stock on the date the fee is payable. Non-employee directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors. For the years ended December 31, 2015 , 2014 , and 2013 , the Company recognized approximately $905,000 , $777,000 , and $673,000 , respectively, of expense related to this plan. The following table provides the number of shares awarded under this plan for the years ended December 31, 2015 , 2014 , and 2013 . Shares issued - not deferred Shares- deferred Total Year ended December 31, 2015 8,164 10,406 18,570 Year ended December 31, 2014 8,067 10,175 18,242 Year ended December 31, 2013 10,156 5,279 15,435 As of December 31, 2015 , a cumulative amount of 146,901 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Related Parties Transactions with Union Financial Services Union Financial Services, Inc. ("UFS") is owned 50 percent by Michael S. Dunlap, Executive Chairman and a member of the board of directors and a significant shareholder of the Company, and 50 percent by Stephen F. Butterfield, Vice Chairman and a member of the board of directors of the Company. During 2013, the Company purchased an aircraft for total consideration of $5.8 million and sold an interest in such aircraft to UFS for $2.0 million . After the completion of this transaction, the Company and UFS own 65 percent and 35 percent of the aircraft, respectively. Transactions with Union Bank and Trust Company Union Bank and Trust Company ("Union Bank") is controlled by Farmers & Merchants Investment Inc. (“F&M”), which owns a majority of Union Bank's common stock and a minority share of Union Bank's non-voting preferred stock. Mr. Dunlap, along with his spouse and children, owns or controls a significant portion of the stock of F&M, and Mr. Dunlap's sister, Angela L. Muhleisen, along with her husband and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Chairman of F&M. Ms. Muhleisen serves as Director and President of F&M and as a Director, Chairperson, President, and Chief Executive Officer of Union Bank. Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock. The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below. Loan Purchases and Sales During the year ended December 31, 2013, the Company purchased FFELP student loans from Union Bank of $478.2 million (par value). The FFELP loans purchased during 2013 were purchased at a discount of $11.4 million . During each of the years ended December 31, 2014 and 2013, the Company purchased private education loans from Union Bank of $0.2 million (par value). Additionally, on December 22, 2014, the Company entered into an agreement with Union Bank in which the Company will provide marketing, origination, and loan servicing services to Union Bank related to private education loans. The Company has committed to purchase, or arrange for a designee to purchase, all volume originated by Union Bank under this agreement. During 2015, the Company purchased $4.4 million (par value) of private education loans from Union Bank, pursuant to this agreement. As of December 31, 2015, the balance of private education loans held by Union Bank pursuant to this agreement was $17.6 million . No loans were originated under this agreement in 2014. During 2014, the Company sold $16.5 million (par value) of private education loans to Union Bank. No discount or premium was received. Loan Servicing The Company serviced $563.1 million , $581.4 million , and $598.9 million of FFELP and private education loans for Union Bank as of December 31, 2015 , 2014 , and 2013 , respectively Servicing revenue earned by the Company from servicing loans for Union Bank was $0.5 million , $0.4 million , and $1.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. In September 2013, the servicing agreement between the Company and Union Bank was amended to change the calculation of servicing fees paid by Union Bank, which led to a decrease in the servicing revenue earned by the Company from Union Bank. As of December 31, 2015 and 2014 , accounts receivable includes approximately $59,000 and $36,000 , respectively, due from Union Bank for loan servicing. Funding - Participation Agreement The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loans (the “FFELP Participation Agreement”). The Company uses this facility as a source to fund FFELP student loans. As of December 31, 2015 and 2014 , $471.6 million and $543.0 million , respectively, of loans were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days notice. This agreement provides beneficiaries of Union Bank's grantor trusts with access to investments in interests in student loans, while providing liquidity to the Company on a short-term basis. The Company can participate loans to Union Bank to the extent of availability under the grantor trusts, up to $750 million or an amount in excess of $750 million if mutually agreed to by both parties. Loans participated under this agreement have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets. Subparticipation Agreement On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable from an unrelated third party to Union Bank. As of December 31, 2014, the participated portion of the loan was $2.6 million , with an obligation to fund an additional $0.5 million . As part of this agreement, Union Bank paid the Company monthly servicing fees equal to 40 basis points on the participated portion of the outstanding principal balance of the loan. On May 22, 2015, the Company paid Union Bank $3.1 million to pay off the outstanding loan balance and terminated the subparticipation agreement. The outstanding balance of the subparticipation agreement was included in bonds and notes payable on the Company's consolidated balance sheets. Operating Cash Accounts The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the accompanying consolidated balance sheets. As of December 31, 2015 and 2014 , the Company had $88.4 million and $107.6 million , respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $36.3 million and $14.9 million as of December 31, 2015 and 2014 , respectively, represented cash collected for customers. Interest income earned by the Company on the amounts invested in the STFIT for the years ended December 31, 2015 , 2014 , and 2013 , was $0.2 million , $0.2 million , and $0.1 million , respectively. 529 Plan Administration Services The Company provides certain 529 Plan administration services to certain college savings plans (the “College Savings Plans”) through a contract with Union Bank, as the program manager. Union Bank is entitled to a fee as program manager pursuant to its program management agreement with the College Savings Plans. For the years ended December 31, 2015 , 2014 , and 2013 , the Company has received fees of $3.5 million , $3.4 million , and $2.8 million , respectively, from Union Bank related to the administration services provided to the College Savings Plans. Lease Arrangements Union Bank leases approximately 4,000 square feet in the Company's corporate headquarters building. Union Bank paid the Company approximately $73,000 , $76,000 , and $72,000 for commercial rent and storage income during 2015 , 2014 , and 2013 , respectively. The lease agreement expires on June 30, 2018. The Company had a lease agreement with Union Bank under which the Company leased office space. The Company paid Union Bank approximately $71,000 , and $159,000 during 2014 and 2013 , respectively. The lease agreement expired in May 2014. Other Fees Paid to Union Bank During the years ended December 31, 2015 , 2014 , and 2013 , the Company paid Union Bank approximately $47,000 , $57,000 , and $107,000 , respectively, in commissions; approximately $111,000 , $117,000 , and $140,000 , respectively, in cash management fees, and approximately $205,000 , $311,000 , and $52,000 , respectively, in connection with servicing opportunities for various asset classes. In addition, the Company pays Union Bank $36,000 each year for administrative services. Other Fees Received from Union Bank During the years ended December 31, 2015 , 2014 , and 2013 , Union Bank paid the Company approximately $201,000 , $178,000 , and $170,000 , respectively, under an employee sharing arrangement and approximately $19,000 , $14,000 , and $18,000 , respectively, for health and productivity services. 401(k) Plan Administration Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $469,000 , $450,000 , and $370,000 during the years ended December 31, 2015 , 2014 , and 2013 , respectively. Investment Services Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. On May 9, 2011, WRCM, an SEC-registered investment advisor and a subsidiary of the Company, entered into a management agreement with Union Bank, effective as of May 1, 2011, under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts. The agreement provides that Union Bank will pay to WRCM annual fees of 25 basis points on the outstanding balance of the investments in the trusts. As of December 31, 2015 , the outstanding balance of investments in the trusts was $685.0 million . In addition, Union Bank will pay additional fees to WRCM of up to 50 percent of the gains from the sale of securities from the trusts. For the years ended December 31, 2015 , 2014 , and 2013 , the Company earned $2.7 million , $13.4 million , and $12.9 million , respectively, of fees under this agreement. In January 2012 and October 2015, WRCM entered into management agreements with Union Bank under which it was designated to serve as investment advisor with respect to the assets within several trusts established by Mr. Dunlap and his spouse. Union Bank serves as trustee for the trusts. Per the terms of the agreements, Union Bank pays WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter. Mr. Dunlap and his spouse contributed a total of 3,375,000 and 3,000,000 shares of the Company's Class B common stock to the trusts upon the establishment of the trusts in 2011 and 2015, respectively. For the years ended December 31, 2015 , 2014 , and 2013 , the Company earned approximately $71,000 , $66,000 , and $61,000 , respectively, of fees under these agreements. As of December 31, 2015 and 2014 , accounts receivable included $1.1 million and $1.7 million , respectively, due from Union Bank related to fees earned by WRCM from the investment services described above. WRCM has established five private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto. Mr. Dunlap, UFS, Jeffrey R. Noordhoek (an executive officer of the Company), Ms. Muhleisen and her spouse, and WRCM have invested in certain of these funds. Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause. WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 percent of such amount to Union Bank as custodian. As of December 31, 2015 , the outstanding balance of investments in these five funds was $178.6 million . For the years ended December 31, 2015 , 2014 , and 2013 , the Company paid Union Bank $0.4 million , $0.3 million , and $0.3 million , respectively, as custodian. Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") On March 17, 2015, the Company made a $40.5 million equity investment in Hudl. David Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl. Prior to the 2015 investment, the Company and Michael Dunlap, the Company's Executive Chairman and a principal shareholder, made separate equity investments in Hudl. Subsequent to the Company's March 2015 investment, the Company and Mr. Dunlap hold combined direct and indirect equity ownership interests in Hudl of 18.7% and 2.8% , respectively. The Company's and Mr. Dunlap's direct and indirect equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's and Mr. Dunlap's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl under the cost method. The Company's investment in Hudl is included in "investments and notes receivable" in the Company's consolidated balance sheet. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2015 . As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments: (a) Student loan asset-backed securities $ — 147,925 147,925 — 145,000 145,000 Equity securities 7,337 — 7,337 3,736 — 3,736 Debt securities 130 — 130 387 — 387 Total investments 7,467 147,925 155,392 4,123 145,000 149,123 Fair value of derivative instruments (b) — 28,690 28,690 — 64,392 64,392 Total assets $ 7,467 176,615 184,082 4,123 209,392 213,515 Liabilities: Fair value of derivative instruments (b): $ — 74,881 74,881 — 32,842 32,842 Total liabilities $ — 74,881 74,881 — 32,842 32,842 (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2015 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,611,350 28,324,552 — — 28,611,350 Cash and cash equivalents 63,529 63,529 63,529 — — Investments (available-for-sale and trading) 155,392 155,392 7,467 147,925 — Notes receivable 18,067 18,473 — 18,067 — Restricted cash 823,450 823,450 823,450 — — Restricted cash – due to customers 144,771 144,771 144,771 — — Restricted investments 9,174 9,174 9,174 — — Accrued interest receivable 383,825 383,825 — 383,825 — Derivative instruments 28,690 28,690 — 28,690 — Financial liabilities: Bonds and notes payable 27,217,536 28,172,682 — 27,217,536 — Accrued interest payable 31,507 31,507 — 31,507 — Due to customers 144,771 144,771 144,771 — — Derivative instruments 74,881 74,881 — 74,881 — As of December 31, 2014 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,954,266 28,005,195 — — 28,954,266 Cash and cash equivalents 130,481 130,481 130,481 — — Investments (available-for-sale and trading) 149,123 149,123 4,123 145,000 — Notes receivable 22,255 22,255 — 22,255 — Restricted cash 800,164 800,164 800,164 — — Restricted cash – due to customers 118,488 118,488 118,488 — — Restricted investments 50,276 50,276 50,276 — — Accrued interest receivable 351,588 351,588 — 351,588 — Derivative instruments 64,392 64,392 — 64,392 — Financial liabilities: Bonds and notes payable 27,809,997 28,027,350 — 27,809,997 — Accrued interest payable 25,904 25,904 — 25,904 — Due to customers 118,488 118,488 118,488 — — Derivative instruments 32,842 32,842 — 32,842 — The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring basis are previously discussed. The remaining financial assets and liabilities were estimated using the following methods and assumptions: Student Loans Receivable If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Fair values for student loan receivables were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions to determine aggregate portfolio yield, net present value, and average life. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants. Notes Receivable Fair values for notes receivable were determined by using model-derived valuations with observable inputs, including current market rates. Cash and Cash Equivalents, Restricted Cash, Restricted Cash – Due to Customers, Restricted Investments, Accrued Interest Receivable/Payable and Due to Customers The carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments. Bonds and Notes Payable Bonds and notes payable are accounted for at cost in the financial statements except when denominated in a foreign currency. Foreign currency-denominated borrowings are re-measured at current spot rates in the financial statements. The fair value of bonds and notes payable was determined from quotes from broker-dealers or through standard bond pricing models using the stated terms of the borrowings, observable yield curves, market credit spreads, and weighted average life of underlying collateral. Fair value adjustments for unsecured corporate debt are made based on indicative quotes from observable trades. Limitations The fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect the estimates. |
Legal Proceedings (Notes)
Legal Proceedings (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Legal Proceedings [Abstract] | |
Legal Matters and Contingencies [Text Block] | Legal Proceedings The Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. In addition, from time to time the Company receives information and document requests from state or federal regulators concerning its business practices. The Company cooperates with these inquiries and responds to the requests. While the Company cannot predict the ultimate outcome of any regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations. On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of these claims, lawsuits, and proceedings will not have a material adverse effect on the Company's business, financial position, or results of operations. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Information (Unaudited) 2015 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 102,595 105,096 111,993 112,215 Less provision for loan losses 2,000 2,150 3,000 3,000 Net interest income after provision for loan losses 100,595 102,946 108,993 109,215 Loan and guaranty servicing revenue 57,811 63,833 61,520 56,694 Tuition payment processing, school information, and campus commerce revenue 34,680 27,686 30,439 27,561 Enrollment services revenue 17,863 17,161 19,500 16,181 Other income, net 6,918 7,504 6,523 6,684 Gain on sale of loans and debt repurchases, net 2,875 1,515 597 166 Derivative market value and foreign currency adjustments and derivative settlements, net (3,078 ) 6,502 (30,658 ) 31,635 Salaries and benefits (61,050 ) (58,787 ) (63,215 ) (64,862 ) Cost to provide enrollment services (11,702 ) (11,162 ) (12,534 ) (10,137 ) Loan servicing fees (7,616 ) (7,420 ) (7,793 ) (7,384 ) Depreciation and amortization (5,662 ) (6,501 ) (6,977 ) (7,203 ) Operating expenses - other (29,198 ) (31,958 ) (30,419 ) (27,637 ) Income tax expense (37,630 ) (40,356 ) (26,999 ) (47,395 ) Net income 64,806 70,963 48,977 83,518 Net income attributable to noncontrolling interest 41 54 22 168 Net income attributable to Nelnet, Inc. $ 64,765 70,909 48,955 83,350 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.40 1.54 1.09 1.86 2014 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 98,871 107,713 117,487 112,492 Less provision for loan losses 2,500 1,500 2,000 3,500 Net interest income after provision for loan losses 96,371 106,213 115,487 108,992 Loan and guaranty servicing revenue 64,757 66,460 52,659 56,538 Tuition payment processing, school information, and campus commerce revenue 25,235 21,834 26,399 24,688 Enrollment services revenue 22,011 20,145 22,936 17,791 Other income, net 18,131 15,315 7,650 12,906 Gain on sale of loans and debt repurchases, net 39 18 — 3,594 Derivative market value and foreign currency adjustments and derivative settlements, net (4,265 ) 1,570 24,203 (5,648 ) Salaries and benefits (52,484 ) (53,888 ) (61,098 ) (60,609 ) Cost to provide enrollment services (14,475 ) (13,311 ) (14,178 ) (11,343 ) Loan servicing fees (5,403 ) (7,317 ) (7,077 ) (7,212 ) Depreciation and amortization (4,783 ) (5,214 ) (5,493 ) (5,644 ) Operating expenses - other (30,224 ) (33,060 ) (29,599 ) (30,098 ) Income tax expense (40,611 ) (43,078 ) (46,513 ) (30,036 ) Net income 74,299 75,687 85,376 73,919 Net income attributable to noncontrolling interest 513 693 157 308 Net income attributable to Nelnet, Inc. $ 73,786 74,994 85,219 73,611 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.59 1.61 1.84 1.59 |
Condensed Parent Only Financial
Condensed Parent Only Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed parent-only financial statements [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Condensed Parent Company Financial Statements The following represents the condensed balance sheets as of December 31, 2015 and 2014 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2015 for Nelnet, Inc. The Company is limited in the amount of funds that can be transferred to it by its subsidiaries through intercompany loans, advances, or cash dividends. These limitations relate to the restrictions by trust indentures under the education lending subsidiaries debt financing arrangements. The amounts of cash and investments restricted in the respective reserve accounts of the education lending subsidiaries are shown on the consolidated balance sheets as restricted cash and investments. Balance Sheets (Parent Company Only) As of December 31, 2015 and 2014 2015 2014 Assets: Cash and cash equivalents $ 19,419 30,712 Investments and notes receivable 228,690 136,432 Investment in subsidiary debt 49,932 122,057 Restricted cash 14,802 127 Investment in subsidiaries 1,519,103 1,300,032 Other assets 326,765 283,831 Fair value of derivative instruments 27,120 64,392 Total assets $ 2,185,831 1,937,583 Liabilities: Notes payable $ 232,184 149,265 Other liabilities 56,234 50,253 Fair value of derivative instruments 9,231 12,387 Total liabilities 297,649 211,905 Equity: Nelnet, Inc. shareholders' equity: Common stock 440 463 Additional paid-in capital — 17,290 Retained earnings 1,881,708 1,702,560 Accumulated other comprehensive earnings 2,284 5,135 Total Nelnet, Inc. shareholders' equity 1,884,432 1,725,448 Noncontrolling interest 3,750 230 Total equity 1,888,182 1,725,678 Total liabilities and shareholders' equity $ 2,185,831 1,937,583 Statements of Income (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Investment interest $ 5,776 6,863 7,911 Interest on bonds and notes payable 6,242 5,492 4,433 Net interest (expense) income (466 ) 1,371 3,478 Other income (expense): Other income, net 4,012 8,943 7,112 Gain from debt repurchases 4,904 6,685 11,905 Equity in subsidiaries income 276,825 316,934 275,989 Derivative market value adjustments and derivative settlements, net 8,416 14,963 28,134 Total other income 294,157 347,525 323,140 Operating expenses 5,057 5,598 5,626 Income before income taxes 288,634 343,298 320,992 Income tax expense (20,655 ) (34,017 ) (16,651 ) Net income 267,979 309,281 304,341 Net income attributable to noncontrolling interest — 1,671 1,669 Net income attributable to Nelnet, Inc. $ 267,979 307,610 302,672 Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Net income $ 267,979 309,281 304,341 Other comprehensive income: Available-for-sale securities: Unrealized holding (losses) gains arising during period, net (1,570 ) 9,006 9,134 Less reclassification adjustment for gains recognized in net income, net of losses (2,955 ) (8,506 ) (5,938 ) Income tax effect 1,674 (184 ) (1,190 ) Total other comprehensive (loss) income (2,851 ) 316 2,006 Comprehensive income 265,128 309,597 306,347 Comprehensive income attributable to noncontrolling interest — 1,671 1,669 Comprehensive income attributable to Nelnet, Inc. $ 265,128 307,926 304,678 Statements of Cash Flows (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Net income attributable to Nelnet, Inc. $ 267,979 307,610 302,672 Net income attributable to noncontrolling interest — 1,671 1,669 Net income 267,979 309,281 304,341 Adjustments to reconcile net income to net cash (used by) provided by operating activities: Depreciation and amortization 327 303 284 Derivative market value adjustment (31,411 ) (36,979 ) (57,525 ) Proceeds (payments) to terminate and/or amend derivative instruments, net 65,527 1,765 (6,469 ) Payment to enter into derivative instruments — (9,087 ) — Equity in earnings of subsidiaries (276,825 ) (316,934 ) (275,989 ) Gain from sale of available-for-sale securities, net (2,955 ) (8,506 ) (5,938 ) Gain from debt repurchases (4,904 ) (6,685 ) (11,905 ) Other 7,460 5,396 3,835 (Increase) decrease in other assets (78,698 ) 4,057 209,896 Increase in other liabilities 9,825 12,512 16,205 Net cash (used by) provided by operating activities (43,675 ) (44,877 ) 176,735 Cash flows from investing activities (Increase) decrease in restricted cash (13,825 ) 3,636 59,495 Purchases of available-for-sale securities (98,332 ) (192,315 ) (217,415 ) Proceeds from sales of available-for-sale securities 94,722 240,371 116,337 Capital contributions to/from subsidiaries, net 120,291 (25,017 ) — Sales (purchases) of subsidiary debt, net 72,125 111,038 (66,272 ) Purchases of investments and issuances of notes receivable (55,206 ) (14,769 ) (11,758 ) Business acquisitions, net of cash acquired (45,916 ) — — Net cash provided by (used in) investing activities 73,859 122,944 (119,613 ) Cash flows from financing activities: Payments on notes payable (42,541 ) (63,084 ) (147,080 ) Proceeds from issuance of notes payable 116,460 27,577 135,000 Payments of debt issuance costs (773 ) (512 ) (644 ) Dividends paid (19,025 ) (18,542 ) (18,569 ) Repurchases of common stock (96,169 ) (15,713 ) (13,136 ) Proceeds from issuance of common stock 801 656 561 Issuance of noncontrolling interest — 201 5 Distribution to noncontrolling interest (230 ) (1,970 ) (1,351 ) Net cash used in financing activities (41,477 ) (71,387 ) (45,214 ) Net (decrease) increase in cash and cash equivalents (11,293 ) 6,680 11,908 Cash and cash equivalents, beginning of period 30,712 24,032 12,124 Cash and cash equivalents, end of period $ 19,419 30,712 24,032 Cash disbursements made for: Interest $ 5,914 5,189 4,150 Income taxes, net of refunds $ 147,130 155,715 59,565 Noncash investing and financing activities: Issuance of minority interest $ 3,750 — — |
Summary of Significant Accoun32
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries, including its education lending subsidiaries for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. The Company's education lending subsidiaries (or Variable Interest Entities ("VIEs")) are engaged in the securitization of education finance assets. These education lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's education lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each education lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company has determined it is the primary beneficiary of its education lending subsidiaries (VIEs). The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company is generally the administrator and master servicer of the securitized assets held in its education lending subsidiaries and owns the residual interest of the securitization trusts. As a result, for accounting purposes, the transfers of student loans to the eligible lender trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include: • Reclassifying certain investments and notes receivable, which were previously included in "other assets" to "investments and notes receivable." • Reclassifying third-party loan servicing fees, which were previously included in "other" operating expenses to "loan servicing fees." The reclassifications had no effect on consolidated net income or consolidated assets and liabilities. |
Noncontrolling Interest, Policy [Policy Text Block] | Noncontrolling Interest Noncontrolling interest reflects the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests i |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. |
Student Loans Receivable, Policy [Policy Text Block] | Student Loans Receivable Student loans consist of federally insured student loans and private education loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2015 and 2014. Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. The borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance period. Interest rates on loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Student loans receivable also includes private education loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFELP. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. |
Allowance for Loan Losses, Policy [Policy Text Block] | Allowance for Loan Losses The allowance for loan losses represents management's estimate of probable losses on student loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its private education loan portfolio. These evaluation processes are subject to numerous judgments and uncertainties. The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, current economic conditions, and other relevant factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company's loss exposure on the outstanding balance of the Company's federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured. In determining the appropriate allowance for loan losses on the private education loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places a private education loan on nonaccrual status when the collection of principal and interest is 90 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses. Management has determined that each of the federally insured loan portfolio and the private education loan portfolio meets the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 3 for each of these portfolios. The Company does not disaggregate its portfolio segment student loan portfolios into classes of financing receivables. The Company collectively evaluates loans for impairment and as of December 31, 2015 and 2014 , the Company did not have any impaired loans as defined in the Receivables Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification. For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents and Statement of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all investments with maturities when purchased of three months or less to be cash equivalents. Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. Net purchased accrued interest was $71.4 million , $55.0 million , and $29.0 million in 2015 , 2014 , and 2013 , respectively |
Investments, Policy [Policy Text Block] | Investments The Company's available-for-sale investment portfolio consists of student loan asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income. Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income. Securities that the Company has the intent and ability to hold to maturity are classified as held-to-maturity and are accounted for at amortized cost unless the security is determined to have an other-than-temporary impairment. In that case, it is accounted for in the same manner as described above for available-for-sale investments. When an investment is sold, the cost basis is determined through specific identification of the security sold |
Restricted Cash and Investments, Policy [Policy Text Block] | Restricted Cash and Investments Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties. Cash balances that the Company's indentured trusts deposit in guaranteed investment contracts that are held for the related asset-backed note holders are classified as restricted investments. The Company has classified these investments as held-to-maturity and accounts for them at amortized cost, which approximates fair value |
Restricted Cash - Due to Customers [Policy Text Block] | Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Tuition Payment Processing and Campus Commerce operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets. |
Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection. |
Business Combinations Policy [Policy Text Block] | Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill The Company reviews goodwill for impairment annually (in the fourth quarter) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a two-step quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a two-step impairment test on goodwill. In the first step, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company must perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. If the carrying value of a reporting unit's goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates. See note 9 for information regarding the Company's annual goodwill impairment review. Intangible Assets Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method. The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. |
Property and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Equipment held under capital leases are stated at the lower of the fair value of the asset or the net present value of the minimum lease payments at the inception of the lease. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Equipment held under capital leases and leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset |
Impairment of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long‑Lived Assets The Company reviews its long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company uses estimates to determine the fair value of long-lived assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimating fair value if such methods are determined to be more appropriate. Assumptions and estimates about future values and remaining useful lives of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results. |
Other Assets [Policy Text Block] | Other Assets Other assets are recorded at cost or amortized cost and consist primarily of debt issuance costs and prepaid expenses. Debt issuance costs are amortized using the effective interest method. |
Fair Value Measurements, Policy [Policy Text Block] | Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include: • Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable. • Level 3: Instruments whose primary value drivers are unobservable . Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Loan interest income - Loan interest is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, the Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the SAP index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan. The Company recognizes student loan income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments (“borrower benefits”) and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loan, which includes an estimate of prepayment rates. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income. Student loan and guaranty servicing revenue – Student loan and guaranty servicing revenue consists of the following items: • Loan and guaranty servicing fees – Loan servicing fees are determined according to individual agreements with customers and are calculated based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Guaranty servicing fees are generally calculated based on the number of loans serviced, volume of loans serviced, or amounts collected. Revenue is recognized over the period in which services are provided to customers, and when ultimate collection is assured. • Guaranty collections revenue – Guaranty collections revenue is earned when collected. Collection costs paid to third parties associated with this revenue is expensed upon successful collection. • Software services revenue – Software services revenue is determined from individual agreements with customers and includes license and maintenance fees associated with student loan software products. Computer and software consulting and remote hosting revenues are recognized over the period in which services are provided to customers. Tuition payment processing, school information, and campus commerce revenue - Tuition payment processing, school information, and campus commerce revenue includes actively managed tuition payment solutions, remote hosted school information systems software, and online payment processing. Fees for these services are recognized over the period in which services are provided to customers. Cash received in advance of the delivery of services is included in deferred revenue. Enrollment Services Revenue – Enrollment services revenue primarily consists of the following items: • Inquiry Generation and Management - This revenue is derived primarily from fees which are earned through the delivery of qualified inquiries or clicks. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is reasonably assured. Delivery is deemed to have occurred at the time a qualified inquiry or click is delivered to the customer, provided that no significant obligations remain. From time to time, the Company may agree to credit certain inquiries or clicks if they fail to meet the contractual or other guidelines of a particular client. The Company has established a sales reserve based on historical experience. To date, such credits have been immaterial and within management’s expectations. For a portion of this revenue, the Company has agreements with providers of online media or traffic (“inquiry generation vendors”) used in the generation of inquiries or clicks. The Company receives a fee from its customers and pays a fee to the inquiry generation vendors either on a cost per inquiry, cost per click, or cost per number of impressions basis. The Company is the primary obligor in the transaction. As a result, the fees paid by the Company’s customers are recognized as revenue and the fees paid to its inquiry generation vendors are included in “cost to provide enrollment services” in the Company’s consolidated statements of income. • Content Solutions - Several content solutions services, including services to connect students to colleges and universities, are sold based on subscriptions. Revenue from sales of subscription services is recognized ratably over the term of the contract as earned. Subscription revenue received or receivable in advance of the delivery of services is included in deferred revenue. Revenue from the sale of print products is generally earned and recognized, net of estimated returns, upon shipment or delivery. All other revenue is recognized over the period in which services are provided to customers. Other income - Other income includes realized and unrealized gains and losses on investments and borrower late fee income, which is earned by the education lending subsidiaries and is recognized when payments are collected from the borrower. Other income also includes investment advisory income. The Company provides investment advisory services through an SEC-registered investment advisor subsidiary under various arrangements and earns annual fees on the outstanding balance of investments and certain performance measures, which are recognized monthly as earned. |
Interest Expense, Policy [Policy Text Block] | Interest Expense Interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method |
Assets or Liabilities that Relate to Transferor's Continuing Involvement in Securitized or Asset-backed Financing Assets, Policy [Policy Text Block] | Transfer of Financial Assets and Extinguishments of Liabilities The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party. The Company recognizes the results of a transfer of loans and the extinguishment of debt based upon the settlement date of the transaction |
Derivative Accounting, Policy [Policy Text Block] | Derivative Accounting The Company records derivative instruments on the consolidated balance sheets as either an asset or liability measured at its fair value. The Company determines the fair value for its derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument or (ii) counterparty valuations. The Company does not offset fair value amounts recognized for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instruments that are recognized at fair value and executed with the same counterparty under a master netting arrangement. The factors that impact the fair value of the Company's derivatives include interest rates, time value, forward interest rate curve, and volatility factors, as well as foreign exchange rates. Pricing models and their underlying assumptions impact the amount and timing of unrealized gains and losses recognized, and the use of different pricing models or assumptions could produce different financial results. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in fair value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve and fluctuations in currency rates can significantly impact the valuation of the Company’s derivatives, and therefore impact the financial position and results of operations of the Company. Any proceeds received or payments made by the Company to terminate a derivative in advance of its expiration date, or to amend the terms of an existing derivative, are included in the Company's consolidated statements of income and are accounted for as a change in fair value of such derivative. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income |
Foreign Currency, Policy [Policy Text Block] | Foreign Currency During 2006, the Company issued Euro-denominated bonds, which are included in “bonds and notes payable” on the consolidated balance sheets. Transaction gains and losses resulting from exchange rate changes when re-measuring these bonds to U.S. dollars at the balance sheet date are included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income |
Income Taxes, Policy [Policy Text Block] | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Income tax expense includes deferred tax expense, which represents the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies (including both tax and interest) |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Compensation Expense for Stock Based Awards The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards |
Stock Repurchases [Policy Text Block] | Stock Repurchases In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company. |
Student Loans Receivable and 33
Student Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Student loans receivable consisted of the following: As of December 31, 2015 2014 Federally insured loans Stafford and other $ 6,202,064 6,030,825 Consolidation 22,086,043 22,165,605 Total 28,288,107 28,196,430 Private education loans 267,642 27,478 28,555,749 28,223,908 Loan discount, net of unamortized loan premiums and deferred origination costs (a) (180,699 ) (169,813 ) Allowance for loan losses – federally insured loans (35,490 ) (39,170 ) Allowance for loan losses – private education loans (15,008 ) (9,730 ) $ 28,324,552 28,005,195 (a) At December 31, 2015 and 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.0 million and $28.8 million , respectively, of non-accretable discount associated with purchased loan portfolios of $10.8 billion and $8.5 billion , respectively. |
Allowance for Credit Losses on Financing Receivables | The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below. Year ended December 31, 2015 2014 2013 Balance at beginning of period $ 48,900 55,122 51,902 Provision for loan losses: Federally insured loans 8,000 11,000 20,000 Private education loans 2,150 (1,500 ) (1,500 ) Total provision for loan losses 10,150 9,500 18,500 Charge-offs: Federally insured loans (11,730 ) (15,260 ) (15,588 ) Private education loans (2,414 ) (2,332 ) (3,683 ) Total charge-offs (14,144 ) (17,592 ) (19,271 ) Recoveries - private education loans 1,050 1,315 1,577 Purchase (sale) of federally insured loans, net 50 (10 ) (1,093 ) Sale of private education loans, net (140 ) (1,620 ) — Transfer from repurchase obligation related to private education loans repurchased, net 4,632 2,185 3,507 Balance at end of period $ 50,498 48,900 55,122 Allocation of the allowance for loan losses: Federally insured loans $ 35,490 39,170 43,440 Private education loans 15,008 9,730 11,682 Total allowance for loan losses $ 50,498 48,900 55,122 |
Financing Receivable Credit Quality Indicators | Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The table below shows the Company’s loan delinquency amounts. As of December 31, 2015 2014 2013 Federally insured loans: Loans in-school/grace/deferment (a) $ 2,292,941 $ 2,805,228 $ 2,872,505 Loans in forbearance (b) 2,979,357 3,288,412 3,370,025 Loans in repayment status: Loans current 19,447,541 84.4 % 18,460,279 83.5 % 16,337,922 82.4 % Loans delinquent 31-60 days (c) 1,028,396 4.5 1,043,119 4.8 967,318 4.9 Loans delinquent 61-90 days (c) 566,953 2.5 588,777 2.7 550,333 2.9 Loans delinquent 91-120 days (c) 415,747 1.8 404,905 1.8 390,791 2.0 Loans delinquent 121-270 days (c) 1,166,940 5.1 1,204,405 5.4 1,117,936 5.6 Loans delinquent 271 days or greater (c)(d) 390,232 1.7 401,305 1.8 443,373 2.2 Total loans in repayment 23,015,809 100.0 % 22,102,790 100.0 % 19,807,673 100.0 % Total federally insured loans $ 28,288,107 $ 28,196,430 $ 26,050,203 Private education loans: Loans in-school/grace/deferment (a) $ 30,795 $ 905 $ 2,700 Loans in forbearance (b) 350 — 366 Loans in repayment status: Loans current 228,464 96.7 % 18,390 69.2 % 59,001 86.7 % Loans delinquent 31-60 days (c) 1,771 0.7 1,078 4.1 1,672 2.5 Loans delinquent 61-90 days (c) 1,283 0.5 1,035 3.9 1,718 2.5 Loans delinquent 91 days or greater (c) 4,979 2.1 6,070 22.8 5,646 8.3 Total loans in repayment 236,497 100.0 % 26,573 100.0 % 68,037 100.0 % Total private education loans $ 267,642 $ 27,478 $ 71,103 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Bonds and Notes Payable [Abstract] | |
Schedule of Debt | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of December 31, 2015 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in asset-backed securitizations: Bonds and notes based on indices $ 25,155,336 0.05% - 6.90% 8/26/19 - 8/26/52 Bonds and notes based on auction 1,160,365 0.88% - 2.17% 3/22/32 - 11/26/46 Total variable-rate bonds and notes 26,315,701 FFELP warehouse facilities 1,855,907 0.27% - 0.56% 4/29/18 - 12/14/18 Private education loan warehouse facility 181,184 0.57% 12/26/16 Unsecured line of credit 100,000 1.79% - 1.92% 10/30/20 Unsecured debt - Junior Subordinated Hybrid Securities 57,184 3.99% 9/15/61 Other borrowings 93,355 1.93% - 3.38% 10/31/16 - 12/15/45 28,603,331 Discount on bonds and notes payable (430,649 ) Total $ 28,172,682 As of December 31, 2014 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in asset-backed securitizations: Bonds and notes based on indices $ 25,713,431 0.19% - 6.90% 5/25/18 - 8/26/52 Bonds and notes based on auction 1,311,669 0.47% - 2.17% 3/22/32 - 11/26/46 Total variable-rate bonds and notes 27,025,100 FFELP warehouse facilities 1,241,665 0.16% - 0.26% 1/17/16 - 6/11/17 Unsecured line of credit — — 6/30/19 Unsecured debt - Junior Subordinated Hybrid Securities 71,688 3.63% 9/15/61 Other borrowings 81,969 1.67% - 5.10% 11/11/15 - 12/31/18 28,420,422 Discount on bonds and notes payable (393,072 ) Total $ 28,027,350 |
Schedule of Line of Credit Facilities | As of December 31, 2015 , the Company had three FFELP warehouse facilities as summarized below. NHELP-III NFSLW-I NHELP-II Total Maximum financing amount $ 750,000 875,000 500,000 2,125,000 Amount outstanding 738,034 686,764 431,109 1,855,907 Amount available $ 11,966 188,236 68,891 269,093 Expiration of liquidity provisions April 29, 2016 July 8, 2016 December 16, 2016 Final maturity date April 29, 2018 July 9, 2018 December 14, 2018 Maximum advance rates 92.2 - 95.0% 92.0 - 98.0% 85.0 - 95.0% Minimum advance rates 92.2 - 95.0% 84.0 - 90.0% 85.0 - 95.0% Advanced as equity support $ 45,301 32,757 36,089 114,147 Each FFELP warehouse facility is supported by 364-day liquidity provisions, which are subject to the respective expiration date shown in the previous table. In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date. The NFSLW-I warehouse facility provides for formula-based advance rates, depending on FFELP loan type, up to a maximum of the principal and interest of loans financed as shown in the table above. The advance rates for collateral may increase or decrease based on market conditions, but they are subject to minimums as disclosed above. The NHELP-III and NHELP-II warehouse facilities have static advance rates that require initial equity for loan funding, but do not require increased equity based on market movements. The FFELP warehouse facilities contain financial covenants relating to levels of the Company’s consolidated net worth, ratio of recourse indebtedness to adjusted EBITDA, and unencumbered cash. Any noncompliance with these covenants could result in a requirement for the immediate repayment of any outstanding borrowings under the facilities. |
Schedule of Long-term Debt Instruments [Table Text Block] | The following tables summarize the asset-backed securitization transactions completed in 2015 and 2014 . Securitizations completed during the year ended December 31, 2015 2015-1 2015-2 2015-3 Total Class A-1 notes Class A-2 notes 2015-2 total Class A-1 notes Class A-2 notes Class A-3 notes 2015-3 total Date securities issued 2/27/15 3/26/15 3/26/15 3/26/15 5/21/15 5/21/15 5/21/15 5/21/15 Total original principal amount $ 566,346 122,500 584,500 722,000 82,500 270,000 41,400 401,400 $ 1,689,746 Class A senior notes: Total original principal amount $ 553,232 122,500 584,500 707,000 82,500 270,000 41,400 393,900 1,654,132 Bond discount — — — — — (380 ) (1,095 ) (1,475 ) (1,475 ) Issue price $ 553,232 122,500 584,500 707,000 82,500 269,620 40,305 392,425 1,652,657 Cost of funds (1-month LIBOR plus:) 0.59 % 0.27 % 0.60 % 0.30 % 0.60 % 0.90 % Final maturity date 4/25/41 3/25/20 9/25/42 1/27/25 2/26/46 6/25/49 Class B subordinated notes: Total original principal amount $ 13,114 15,000 7,500 35,614 Bond discount (1,157 ) (1,793 ) (968 ) (3,918 ) Issue price $ 11,957 13,207 6,532 31,696 Cost of funds (1-month LIBOR plus:) 1.50 % 1.50 % 1.50 % Final maturity date 6/25/46 5/25/49 6/27/50 Securitizations completed during the year ended December 31, 2014 2014-1 2014-2 2014-3 2014-4 2014-5 2014-6 Total Class A-1 notes Class A-2 notes Class A-3 notes 2014-2 total Class A-1 notes Class A-2 notes 2014-4 total Date securities issued 2/6/14 3/12/14 3/12/14 3/12/14 3/12/14 4/30/14 5/23/14 5/23/14 5/23/14 6/18/14 7/31/14 Total original principal amount $ 458,500 191,000 222,000 84,000 509,000 719,800 267,500 107,500 384,500 603,000 565,000 $ 3,239,800 Class A senior notes: Total original principal amount $ 445,000 191,000 222,000 84,000 497,000 700,700 267,500 107,500 375,000 587,000 565,000 3,169,700 Bond discount — — — (535 ) (535 ) — — — — — (3,124 ) (3,659 ) Issue price $ 445,000 191,000 222,000 83,465 496,465 700,700 267,500 107,500 375,000 587,000 561,876 3,166,041 Cost of funds (1-month LIBOR plus:) 0.57 % 0.28 % 0.60 % 0.85 % 0.58 % 0.54 % 0.95 % 0.55 % 0.65 % Final maturity date 9/25/41 6/25/21 3/25/30 7/27/37 6/25/41 11/27/34 11/25/43 7/25/41 11/25/47 Class B subordinated notes: Total original principal amount $ 13,500 12,000 19,100 9,500 16,000 70,100 Bond discount (1,132 ) (1,046 ) (1,467 ) (1,138 ) (1,232 ) (6,015 ) Issue price $ 12,368 10,954 17,633 8,362 14,768 64,085 Cost of funds (1-month LIBOR plus:) 1.50 % 1.50 % 1.50 % 1.50 % 1.50 % Final maturity date 10/25/47 6/25/41 10/25/50 9/25/51 5/25/49 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Bonds and notes outstanding as of December 31, 2015 are due in varying amounts as shown below. 2016 $ 256,184 2017 — 2018 1,855,907 2019 173,755 2020 194,648 2021 and thereafter 26,122,837 $ 28,603,331 |
Schedule of Extinguishment of Debt [Table Text Block] | The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases, net" on the Company’s consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Par value Purchase price Gain Year ended December 31, 2015 2014 2013 Unsecured debt - Hybrid Securities $ 14,504 11,374 3,130 24,769 19,761 5,008 2,775 2,080 695 Asset-backed securities 32,026 30,354 1,672 29,243 27,636 1,607 87,696 76,725 10,971 $ 46,530 41,728 4,802 54,012 47,397 6,615 90,471 78,805 11,666 |
Derivative Financial Instrume35
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Interest Rate Swaps - 1:3 Basis swaps | The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2015 2014 Maturity Notional amount Notional amount 2016 $ 7,500,000 — 2021 — 250,000 2022 — 1,900,000 2023 — 3,650,000 2024 — 250,000 2026 — 800,000 2028 — 100,000 2036 — 700,000 2039 — 150,000 $ 7,500,000 7,800,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2015 and 2014 , was one-month LIBOR plus 10.0 basis points and 3.5 basis points, respectively. |
Interest Rate Swaps - Floor Income Hedges | The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 2015 As of December 31, 2014 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2015 $ — — % $ 1,100,000 0.89 % 2016 1,000,000 0.76 750,000 0.85 2017 2,100,000 0.84 1,250,000 0.86 2018 1,600,000 1.08 — — 2019 500,000 1.12 — — 2025 100,000 2.32 — — $ 5,300,000 0.95 % $ 3,100,000 0.87 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Interest Rate Swaps - Unsecured Debt Hedges | the Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a portion of the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28% (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Impact of Foreign Exchange Contracts on the Statement of Income | The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments. Year ended December 31, 2015 2014 2013 (b) Re-measurement of Euro Notes $ 43,801 58,013 (35,285 ) Change in fair value of cross currency interest rate swaps (45,195 ) (57,289 ) 26,354 Total impact to consolidated statements of income - (expense) income (a) $ (1,394 ) 724 (8,931 ) (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheets. Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 1:3 basis swaps $ 724 53,549 410 — Interest rate swaps - floor income hedges 21,408 5,165 1,175 5,034 Interest rate swap option - floor income hedge 3,257 5,678 — — Interest rate swaps - hybrid debt hedges — — 7,646 7,353 Interest rate caps 1,570 — — — Cross-currency interest rate swap — — 65,650 20,455 Other 1,731 — — — Total $ 28,690 64,392 74,881 32,842 |
Schedule of Derivative Instruments [Table Text Block] | The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged: Gross amounts not offset in the consolidated balance sheets Derivative assets Gross amounts of recognized assets presented in the consolidated balance sheets Derivatives subject to enforceable master netting arrangement Cash collateral pledged (received) Net asset (liability) Balance as of December 31, 2015 $ 28,690 (851 ) 1,632 29,471 Balance as of December 31, 2014 64,392 (12,387 ) — 52,005 Gross amounts not offset in the consolidated balance sheets Derivative liabilities Gross amounts of recognized liabilities presented in the consolidated balance sheets Derivatives subject to enforceable master netting arrangement Cash collateral pledged (received) Net asset (liability) Balance as of December 31, 2015 $ (74,881 ) 851 13,168 (60,862 ) Balance as of December 31, 2014 (32,842 ) 12,387 (1,454 ) (21,909 ) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the effect of derivative instruments in the consolidated statements of income. Year ended December 31, 2015 2014 2013 Settlements: 1:3 basis swaps $ 1,058 3,389 3,301 Interest rate swaps - floor income hedges (23,041 ) (24,380 ) (31,022 ) Interest rate swaps - hybrid debt hedges (1,012 ) (1,025 ) (1,670 ) Cross-currency interest rate swaps (1,255 ) 173 (245 ) Total settlements - (expense) income (24,250 ) (21,843 ) (29,636 ) Change in fair value: 1:3 basis swaps 12,292 36,824 7,467 Interest rate swaps - floor income hedges 20,103 8,797 36,719 Interest rate swap option - floor income hedge (2,420 ) (3,409 ) — Interest rate swaps - hybrid debt hedges (295 ) (5,233 ) 12,997 Interest rate caps (1,365 ) — — Cross-currency interest rate swaps (45,195 ) (57,289 ) 26,354 Other 1,730 — 341 Total change in fair value - (expense) income (15,150 ) (20,310 ) 83,878 Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) 43,801 58,013 (35,285 ) Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense) $ 4,401 15,860 18,957 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Summary Investment Holdings | A summary of the Company's investments and notes receivable follows: As of December 31, 2015 As of December 31, 2014 Amortized cost Gross unrealized gains Gross unrealized losses (a) Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Investments (at fair value): Available-for-sale investments: Student loan asset-backed and other debt securities (b) $ 139,970 3,402 (1,362 ) 142,010 131,589 6,204 (236 ) 137,557 Equity securities 846 1,686 (100 ) 2,432 1,553 2,216 (33 ) 3,736 Total available-for-sale investments $ 140,816 5,088 (1,462 ) 144,442 133,142 8,420 (269 ) 141,293 Trading investments: Student loan asset-backed securities 6,045 7,830 Equity securities 4,905 — Total trading investments 10,950 7,830 Total available-for-sale and trading investments 155,392 149,123 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds (c) 63,323 19,987 Real estate (d) 50,463 18,661 Notes receivable (e) 18,473 22,255 Tax liens and affordable housing 16,030 25,683 Total investments and notes receivable $ 303,681 235,709 (a) As of December 31, 2015 , the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. (b) As of December 31, 2015 , the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table: Year of Maturity: Amortized cost Fair value Within 1 year $ 6,323 6,283 1-5 years 125 125 6-10 years 279 279 After 10 years 133,243 135,323 Total $ 139,970 142,010 (c) As of December 31, 2015 and 2014, "Venture capital and funds" included $41.4 million and $0.8 million , respectively, of the Company's equity investment in Hudl. See note 19 for further information. (d) As of December 31, 2015, "Real estate" included $25.0 million of the Company's investment in TDP. This investment includes $3.5 million of land, construction in progress, and related assets and $21.5 million of restricted cash to be used for real estate development. TDP has notes payable of $18.4 million outstanding as of December 31, 2015. (e) As of December 31, 2015 and 2014, "Notes receivable" included $17.3 million and $20.7 million , respectively, of a note receivable obtained in connection with the sale of an education lending subsidiary. |
Available-for-sale Securities [Table Text Block] | As of December 31, 2015 , the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table: Year of Maturity: Amortized cost Fair value Within 1 year $ 6,323 6,283 1-5 years 125 125 6-10 years 279 279 After 10 years 133,243 135,323 Total $ 139,970 142,010 |
Gain (Loss) on Investments | The following table summarizes the amount included in "other income, net" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading. Year ended December 31, 2015 2014 2013 Available-for-sale securities: Gross realized gains $ 3,402 8,581 6,270 Gross realized losses (447 ) (75 ) (332 ) Trading securities: Unrealized (losses) gains, net (715 ) (135 ) 221 Realized (losses) gains, net (2,097 ) (1,082 ) 5 $ 143 7,289 6,164 |
Business Combination Business C
Business Combination Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2015 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,611,350 28,324,552 — — 28,611,350 Cash and cash equivalents 63,529 63,529 63,529 — — Investments (available-for-sale and trading) 155,392 155,392 7,467 147,925 — Notes receivable 18,067 18,473 — 18,067 — Restricted cash 823,450 823,450 823,450 — — Restricted cash – due to customers 144,771 144,771 144,771 — — Restricted investments 9,174 9,174 9,174 — — Accrued interest receivable 383,825 383,825 — 383,825 — Derivative instruments 28,690 28,690 — 28,690 — Financial liabilities: Bonds and notes payable 27,217,536 28,172,682 — 27,217,536 — Accrued interest payable 31,507 31,507 — 31,507 — Due to customers 144,771 144,771 144,771 — — Derivative instruments 74,881 74,881 — 74,881 — As of December 31, 2014 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,954,266 28,005,195 — — 28,954,266 Cash and cash equivalents 130,481 130,481 130,481 — — Investments (available-for-sale and trading) 149,123 149,123 4,123 145,000 — Notes receivable 22,255 22,255 — 22,255 — Restricted cash 800,164 800,164 800,164 — — Restricted cash – due to customers 118,488 118,488 118,488 — — Restricted investments 50,276 50,276 50,276 — — Accrued interest receivable 351,588 351,588 — 351,588 — Derivative instruments 64,392 64,392 — 64,392 — Financial liabilities: Bonds and notes payable 27,809,997 28,027,350 — 27,809,997 — Accrued interest payable 25,904 25,904 — 25,904 — Due to customers 118,488 118,488 118,488 — — Derivative instruments 32,842 32,842 — 32,842 — |
RenWeb Acquisition [Member] | |
Business Acquisition [Line Items] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 326 Accounts receivable 961 Property and equipment 105 Other assets 22 Intangible assets 37,188 Excess cost over fair value of net assets acquired (goodwill) 9,082 Other liabilities (1,341 ) Net assets acquired $ 46,343 |
Telecommunications [Member] | |
Business Acquisition [Line Items] | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Cash and cash equivalents $ 334 Restricted cash and investments 850 Accounts receivable 1,854 Property and equipment 34,377 Other assets 405 Intangible assets 11,140 Excess cost over fair value of net assets acquired (goodwill) 19,800 Other liabilities (4,856 ) Bonds and notes payable (13,904 ) Net assets acquired 50,000 Minority interest (3,750 ) Total consideration paid by the Company $ 46,250 |
Intangible Assets Intangible 38
Intangible Assets Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets consist of the following: Weighted average remaining useful life as of December 31, 2015 (months) As of December 31, 2015 As of December 31, 2014 Amortizable intangible assets: Customer relationships (net of accumulated amortization of $23,195 and $17,361, respectively) 199 $ 27,576 27,330 Computer software (net of accumulated amortization of $4,397 and $1,896, respectively) 34 11,601 6,969 Trade names (net of accumulated amortization of $795 and $272, respectively) 202 10,687 6,150 Content (net of accumulated amortization of $900 and $0, respectively) 12 900 1,800 Covenants not to compete (net of accumulated amortization of $56 and $21, respectively) 101 298 333 Total - amortizable intangible assets 158 $ 51,062 42,582 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of December 31, 2015 , the Company estimates it will record amortization expense as follows: 2016 $ 9,990 2017 7,002 2018 6,533 2019 3,886 2020 3,564 2021 and thereafter 20,087 $ 51,062 |
Goodwill Goodwill (Tables)
Goodwill Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Schedule of Goodwill [Table Text Block] | The change in the carrying amount of goodwill by reportable operating segment was as follows: Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Generation and Management (a) Tele- communications Corporate and Other Activities Total Balance as of December 31, 2013 $ 8,596 58,086 41,883 — 8,553 117,118 Goodwill acquired during the period — 9,082 — — — 9,082 Balance as of December 31, 2014 8,596 67,168 41,883 — 8,553 126,200 Goodwill acquired during the period — — — 19,800 — 19,800 Balance as of December 31, 2015 $ 8,596 67,168 41,883 19,800 8,553 146,000 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. |
Property and Equipment Property
Property and Equipment Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, including $1.3 million of telecommunications customer located property owned under capital leases as of December 31, 2015, consisted of the following: As of December 31, Useful life 2015 2014 Non-telecommunications: Computer equipment and software 1-5 years $ 89,093 85,294 Office furniture and equipment 3-7 years 12,638 12,265 Building and building improvements 5-39 years 12,239 11,336 Transportation equipment 4-10 years 3,868 3,877 Leasehold improvements 5-20 years 3,545 3,645 Land — 700 700 Construction in progress — 1,210 13,168 123,293 130,285 Accumulated depreciation - non-telecommunications 77,188 84,391 Non-telecommunications, net property and equipment 46,105 45,894 Telecommunications: Network plant and fiber 5-15 years 25,669 — Customer located property 5-10 years 6,912 — Central office 5-15 years 909 — Other 1-20 years 887 — 34,377 — Accumulated depreciation - telecommunications — — Telecommunications, net property and equipment 34,377 — Total property and equipment, net $ 80,482 45,894 |
Shareholders' Equity Shareholde
Shareholders' Equity Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Stock Repurchases [Table Text Block] | Shares repurchased by the Company during 2015 , 2014 , and 2013 are shown in the table below. Total shares repurchased Purchase price (in thousands) Average price of shares repurchased (per share) Year ended December 31, 2015 2,449,159 $ 96,169 $ 39.27 Year ended December 31, 2014 381,689 15,713 41.17 Year ended December 31, 2013 393,259 13,136 33.40 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year ended December 31, 2015 2014 2013 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 265,129 2,850 267,979 304,540 3,070 307,610 300,043 2,629 302,672 Denominator: Weighted-average common shares outstanding - basic and diluted 45,045,199 484,141 45,529,340 46,005,915 463,700 46,469,615 46,165,785 404,529 46,570,314 Earnings per share - basic and diluted $ 5.89 5.89 5.89 6.62 6.62 6.62 6.50 6.50 6.50 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | As of December 31, 2015 , the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $27.7 million , which is included in “other liabilities” on the consolidated balance sheet. Of this total, $18.0 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $6.6 million prior to December 31, 2016 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $6.6 million decrease, $4.3 million , if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2015 2014 Gross balance - beginning of year $ 21,336 19,141 Additions based on tax positions of prior years 4,749 1,421 Additions based on tax positions related to the current year 5,096 4,393 Settlements with taxing authorities — (833 ) Reductions for tax positions of prior years (1,327 ) (641 ) Reductions based on tax positions related to the current year — — Reductions due to lapse of applicable statutes of limitations (2,166 ) (2,145 ) Gross balance - end of year $ 27,688 21,336 All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consists of the following components: Year ended December 31, 2015 2014 2013 Current: Federal $ 140,778 138,269 153,756 State 4,530 2,545 4,776 Foreign 23 (235 ) 122 Total current provision 145,331 140,579 158,654 Deferred: Federal 3,572 16,598 1,676 State 3,875 3,464 868 Foreign (398 ) (403 ) (5 ) Total deferred provision 7,049 19,659 2,539 Provision for income tax expense $ 152,380 160,238 161,193 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2015 2014 2013 Tax expense at federal rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: State tax, net of federal income tax benefit 1.0 0.7 0.8 Provision for uncertain federal and state tax matters 0.9 0.4 (0.6) Tax credits (0.5) (0.4) (0.4) Other (0.1) (1.4) — Effective tax rate 36.3 % 34.3 % 34.8 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2015 2014 Deferred tax assets: Student loans $ 20,711 21,139 Intangible assets 10,482 12,682 Securitizations 6,684 7,626 Capital loss carry-back 4,169 3,974 Accrued expenses 3,034 2,872 Stock compensation 2,882 2,490 Deferred revenue 2,220 1,548 Other — 109 Total gross deferred tax assets 50,182 52,440 Less valuation allowance (222 ) (304 ) Net deferred tax assets 49,960 52,136 Deferred tax liabilities: Basis in certain derivative contracts 24,101 15,692 Debt repurchases 18,759 24,918 Loan origination services 15,695 19,258 Depreciation 5,514 4,122 Partnership basis 1,748 1,143 Unrealized gain on debt and equity securities 1,400 3,016 Other 47 — Total gross deferred tax liabilities 67,264 68,149 Net deferred tax (liability) asset $ (17,304 ) (16,013 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2015 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Telecommunications Corporate and Other Activities Eliminations Total Total interest income $ 49 3 728,199 — 7,686 (1,828 ) 734,109 Interest expense — — 297,625 — 6,413 (1,828 ) 302,210 Net interest income 49 3 430,574 — 1,273 — 431,899 Less provision for loan losses — — 10,150 — — — 10,150 Net interest income after provision for loan losses 49 3 420,424 — 1,273 — 421,749 Other income (expense): Loan and guaranty servicing revenue 239,858 — — — — — 239,858 Intersegment servicing revenue 50,354 — — — — (50,354 ) — Tuition payment processing, school information, and campus commerce revenue — 120,365 — — — — 120,365 Enrollment services revenue — — — — 70,705 — 70,705 Other income, net — (925 ) 15,939 — 12,616 — 27,630 Gain on sale of loans and debt repurchases, net — — 2,034 — 3,119 — 5,153 Derivative market value and foreign currency adjustments, net — — 27,216 — 1,435 — 28,651 Derivative settlements, net — — (23,238 ) — (1,012 ) — (24,250 ) Total other income (expense) 290,212 119,440 21,951 — 86,863 (50,354 ) 468,112 Operating expenses: Salaries and benefits 134,634 55,523 2,172 — 55,585 — 247,914 Cost to provide enrollment services — — — — 45,535 — 45,535 Loan servicing fees — — 30,213 — — — 30,213 Depreciation and amortization 1,931 8,992 — — 15,420 — 26,343 Other 57,799 15,161 5,083 — 41,169 — 119,212 Intersegment expenses, net 43,034 11,056 51,036 — (54,772 ) (50,354 ) — Total operating expenses 237,398 90,732 88,504 — 102,937 (50,354 ) 469,217 Income (loss) before income taxes and corporate overhead allocation 52,863 28,711 353,871 — (14,801 ) — 420,644 Corporate overhead allocation (9,628 ) (3,852 ) (4,816 ) — 18,296 — — Income before income taxes 43,235 24,859 349,055 — 3,495 — 420,644 Income tax (expense) benefit (16,430 ) (9,446 ) (132,641 ) — 6,137 — (152,380 ) Net income 26,805 15,413 216,414 — 9,632 — 268,264 Net income attributable to noncontrolling interest (20 ) — — — 305 — 285 Net income attributable to Nelnet, Inc. $ 26,825 15,413 216,414 — 9,327 — 267,979 Total assets $ 80,459 229,615 29,699,164 68,760 626,830 (218,923 ) 30,485,905 Year ended December 31, 2014 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Corporate and Other Activities Eliminations Total Total interest income $ 30 6 703,382 8,618 (2,236 ) 709,800 Interest expense — — 269,742 5,731 (2,236 ) 273,237 Net interest income 30 6 433,640 2,887 — 436,563 Less provision for loan losses — — 9,500 — — 9,500 Net interest income after provision for loan losses 30 6 424,140 2,887 — 427,063 Other income (expense): Loan and guaranty servicing revenue 240,414 — — — — 240,414 Intersegment servicing revenue 55,139 — — — (55,139 ) — Tuition payment processing, school information, and campus commerce revenue — 98,156 — — — 98,156 Enrollment services revenue — — — 82,883 — 82,883 Other income, net — 1,268 21,532 31,202 — 54,002 Gain on sale of loans and debt repurchases, net — — (1,357 ) 5,008 — 3,651 Derivative market value and foreign currency adjustments, net — — 42,935 (5,232 ) — 37,703 Derivative settlements, net — — (20,818 ) (1,025 ) — (21,843 ) Total other income (expense) 295,553 99,424 42,292 112,836 (55,139 ) 494,966 Operating expenses: Salaries and benefits 125,844 48,453 2,316 51,466 — 228,079 Cost to provide enrollment services — — — 53,307 — 53,307 Loan servicing fees — — 27,009 — — 27,009 Depreciation and amortization 1,734 8,169 — 11,231 — 21,134 Other 59,521 13,006 6,602 43,852 — 122,981 Intersegment expenses, net 36,646 5,864 55,808 (43,179 ) (55,139 ) — Total operating expenses 223,745 75,492 91,735 116,677 (55,139 ) 452,510 Income (loss) before income taxes and corporate overhead allocation 71,838 23,938 374,697 (954 ) — 469,519 Corporate overhead allocation (9,029 ) (3,010 ) (5,017 ) 17,056 — — Income before income taxes 62,809 20,928 369,680 16,102 — 469,519 Income tax (expense) benefit (23,867 ) (7,952 ) (140,477 ) 12,058 — (160,238 ) Net income 38,942 12,976 229,203 28,160 — 309,281 Net income attributable to noncontrolling interest — — — 1,671 — 1,671 Net income attributable to Nelnet, Inc. $ 38,942 12,976 229,203 26,489 — 307,610 Total assets $ 84,495 231,991 29,505,439 497,147 (220,929 ) 30,098,143 Year ended December 31, 2013 Student Loan and Guaranty Servicing Tuition Payment Processing and Campus Commerce Asset Corporate and Other Activities Eliminations Total Total interest income $ 40 — 638,604 9,433 (3,267 ) 644,810 Interest expense — — 229,533 4,669 (3,267 ) 230,935 Net interest income 40 — 409,071 4,764 — 413,875 Less provision for loan losses — — 18,500 — — 18,500 Net interest income after provision for loan losses 40 — 390,571 4,764 — 395,375 Other income (expense): Loan and guaranty servicing revenue 243,428 — — — — 243,428 Intersegment servicing revenue 56,744 — — — (56,744 ) — Tuition payment processing, school information, and campus commerce revenue — 80,682 — — — 80,682 Enrollment services revenue — — — 98,078 — 98,078 Other income, net — — 15,223 32,218 (1,143 ) 46,298 Gain on sale of loans and debt repurchases — — 11,004 695 — 11,699 Derivative market value and foreign currency adjustments, net — — 35,256 13,337 — 48,593 Derivative settlements, net — — (27,966 ) (1,670 ) — (29,636 ) Total other income (expense) 300,172 80,682 33,517 142,658 (57,887 ) 499,142 Operating expenses: Salaries and benefits 106,825 37,575 2,292 49,477 — 196,169 Cost to provide enrollment services — — — 64,961 — 64,961 Loan servicing fees — — 23,881 — — 23,881 Depreciation and amortization 3,924 4,518 — 9,869 — 18,311 Other 67,494 9,147 7,064 43,099 (1,143 ) 125,661 Intersegment expenses, net 35,743 5,989 57,572 (42,560 ) (56,744 ) — Total operating expenses 213,986 57,229 90,809 124,846 (57,887 ) 428,983 Income before income taxes and corporate overhead allocation 86,226 23,453 333,279 22,576 — 465,534 Corporate overhead allocation (6,150 ) (1,957 ) (3,896 ) 12,003 — — Income before income taxes 80,076 21,496 329,383 34,579 — 465,534 Income tax (expense) benefit (30,430 ) (8,168 ) (125,165 ) 2,570 — (161,193 ) Net income 49,646 13,328 204,218 37,149 — 304,341 Net income attributable to noncontrolling interest — — — 1,669 — 1,669 Net income attributable to Nelnet, Inc. $ 49,646 13,328 204,218 35,480 — 302,672 Total assets $ 84,986 219,064 27,387,461 425,959 (346,621 ) 27,770,849 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for capital and operating leases [Table Text Block] | The Company leases certain office space and equipment under operating leases and certain property and equipment related to its telecommunications business under capital leases. As operating leases expire, it is expected that they will be replaced with similar leases. Future minimum lease payments under these leases are shown below: Capital leases Operating leases 2016 $ 588 5,258 2017 333 4,192 2018 92 3,405 2019 7 2,512 2020 — 1,926 2021 and thereafter — 5,007 Total minimum lease payments 1,020 $ 22,300 Less amounts representing interest (67 ) Capital lease obligation (a) $ 953 |
Stock Based Compensation Plan S
Stock Based Compensation Plan Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock Based Compensation Plans [Abstract] | |
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | The following table summarizes restricted stock activity: Year ended December 31, 2015 2014 2013 Non-vested shares at beginning of year 499,463 407,051 378,671 Granted 126,946 189,716 131,933 Vested (108,424 ) (77,219 ) (62,491 ) Canceled (46,388 ) (20,085 ) (41,062 ) Non-vested shares at end of year 471,597 499,463 407,051 |
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | As of December 31, 2015 , there was $8.7 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below. 2016 $ 3,477 2017 2,076 2018 1,256 2019 751 2020 440 2021 and thereafter 658 $ 8,658 |
Schedule of Share-based Compensation, Nonemployee Director Stock Award Plan, Activity [Table Text Block] | The following table provides the number of shares awarded under this plan for the years ended December 31, 2015 , 2014 , and 2013 . Shares issued - not deferred Shares- deferred Total Year ended December 31, 2015 8,164 10,406 18,570 Year ended December 31, 2014 8,067 10,175 18,242 Year ended December 31, 2013 10,156 5,279 15,435 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2015 . As of December 31, 2015 As of December 31, 2014 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments: (a) Student loan asset-backed securities $ — 147,925 147,925 — 145,000 145,000 Equity securities 7,337 — 7,337 3,736 — 3,736 Debt securities 130 — 130 387 — 387 Total investments 7,467 147,925 155,392 4,123 145,000 149,123 Fair value of derivative instruments (b) — 28,690 28,690 — 64,392 64,392 Total assets $ 7,467 176,615 184,082 4,123 209,392 213,515 Liabilities: Fair value of derivative instruments (b): $ — 74,881 74,881 — 32,842 32,842 Total liabilities $ — 74,881 74,881 — 32,842 32,842 (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2015 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,611,350 28,324,552 — — 28,611,350 Cash and cash equivalents 63,529 63,529 63,529 — — Investments (available-for-sale and trading) 155,392 155,392 7,467 147,925 — Notes receivable 18,067 18,473 — 18,067 — Restricted cash 823,450 823,450 823,450 — — Restricted cash – due to customers 144,771 144,771 144,771 — — Restricted investments 9,174 9,174 9,174 — — Accrued interest receivable 383,825 383,825 — 383,825 — Derivative instruments 28,690 28,690 — 28,690 — Financial liabilities: Bonds and notes payable 27,217,536 28,172,682 — 27,217,536 — Accrued interest payable 31,507 31,507 — 31,507 — Due to customers 144,771 144,771 144,771 — — Derivative instruments 74,881 74,881 — 74,881 — As of December 31, 2014 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 28,954,266 28,005,195 — — 28,954,266 Cash and cash equivalents 130,481 130,481 130,481 — — Investments (available-for-sale and trading) 149,123 149,123 4,123 145,000 — Notes receivable 22,255 22,255 — 22,255 — Restricted cash 800,164 800,164 800,164 — — Restricted cash – due to customers 118,488 118,488 118,488 — — Restricted investments 50,276 50,276 50,276 — — Accrued interest receivable 351,588 351,588 — 351,588 — Derivative instruments 64,392 64,392 — 64,392 — Financial liabilities: Bonds and notes payable 27,809,997 28,027,350 — 27,809,997 — Accrued interest payable 25,904 25,904 — 25,904 — Due to customers 118,488 118,488 118,488 — — Derivative instruments 32,842 32,842 — 32,842 — |
Quarterly Financial Informati48
Quarterly Financial Information Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarterly Financial Information (Unaudited) 2015 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 102,595 105,096 111,993 112,215 Less provision for loan losses 2,000 2,150 3,000 3,000 Net interest income after provision for loan losses 100,595 102,946 108,993 109,215 Loan and guaranty servicing revenue 57,811 63,833 61,520 56,694 Tuition payment processing, school information, and campus commerce revenue 34,680 27,686 30,439 27,561 Enrollment services revenue 17,863 17,161 19,500 16,181 Other income, net 6,918 7,504 6,523 6,684 Gain on sale of loans and debt repurchases, net 2,875 1,515 597 166 Derivative market value and foreign currency adjustments and derivative settlements, net (3,078 ) 6,502 (30,658 ) 31,635 Salaries and benefits (61,050 ) (58,787 ) (63,215 ) (64,862 ) Cost to provide enrollment services (11,702 ) (11,162 ) (12,534 ) (10,137 ) Loan servicing fees (7,616 ) (7,420 ) (7,793 ) (7,384 ) Depreciation and amortization (5,662 ) (6,501 ) (6,977 ) (7,203 ) Operating expenses - other (29,198 ) (31,958 ) (30,419 ) (27,637 ) Income tax expense (37,630 ) (40,356 ) (26,999 ) (47,395 ) Net income 64,806 70,963 48,977 83,518 Net income attributable to noncontrolling interest 41 54 22 168 Net income attributable to Nelnet, Inc. $ 64,765 70,909 48,955 83,350 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.40 1.54 1.09 1.86 2014 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 98,871 107,713 117,487 112,492 Less provision for loan losses 2,500 1,500 2,000 3,500 Net interest income after provision for loan losses 96,371 106,213 115,487 108,992 Loan and guaranty servicing revenue 64,757 66,460 52,659 56,538 Tuition payment processing, school information, and campus commerce revenue 25,235 21,834 26,399 24,688 Enrollment services revenue 22,011 20,145 22,936 17,791 Other income, net 18,131 15,315 7,650 12,906 Gain on sale of loans and debt repurchases, net 39 18 — 3,594 Derivative market value and foreign currency adjustments and derivative settlements, net (4,265 ) 1,570 24,203 (5,648 ) Salaries and benefits (52,484 ) (53,888 ) (61,098 ) (60,609 ) Cost to provide enrollment services (14,475 ) (13,311 ) (14,178 ) (11,343 ) Loan servicing fees (5,403 ) (7,317 ) (7,077 ) (7,212 ) Depreciation and amortization (4,783 ) (5,214 ) (5,493 ) (5,644 ) Operating expenses - other (30,224 ) (33,060 ) (29,599 ) (30,098 ) Income tax expense (40,611 ) (43,078 ) (46,513 ) (30,036 ) Net income 74,299 75,687 85,376 73,919 Net income attributable to noncontrolling interest 513 693 157 308 Net income attributable to Nelnet, Inc. $ 73,786 74,994 85,219 73,611 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.59 1.61 1.84 1.59 |
Condensed Parent Only Financi49
Condensed Parent Only Financial Statements Condensed Parent Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed parent-only financial statements [Abstract] | |
parent only balance sheet [Table Text Block] | Balance Sheets (Parent Company Only) As of December 31, 2015 and 2014 2015 2014 Assets: Cash and cash equivalents $ 19,419 30,712 Investments and notes receivable 228,690 136,432 Investment in subsidiary debt 49,932 122,057 Restricted cash 14,802 127 Investment in subsidiaries 1,519,103 1,300,032 Other assets 326,765 283,831 Fair value of derivative instruments 27,120 64,392 Total assets $ 2,185,831 1,937,583 Liabilities: Notes payable $ 232,184 149,265 Other liabilities 56,234 50,253 Fair value of derivative instruments 9,231 12,387 Total liabilities 297,649 211,905 Equity: Nelnet, Inc. shareholders' equity: Common stock 440 463 Additional paid-in capital — 17,290 Retained earnings 1,881,708 1,702,560 Accumulated other comprehensive earnings 2,284 5,135 Total Nelnet, Inc. shareholders' equity 1,884,432 1,725,448 Noncontrolling interest 3,750 230 Total equity 1,888,182 1,725,678 Total liabilities and shareholders' equity $ 2,185,831 1,937,583 |
parent only income statement [Table Text Block] | Statements of Income (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Investment interest $ 5,776 6,863 7,911 Interest on bonds and notes payable 6,242 5,492 4,433 Net interest (expense) income (466 ) 1,371 3,478 Other income (expense): Other income, net 4,012 8,943 7,112 Gain from debt repurchases 4,904 6,685 11,905 Equity in subsidiaries income 276,825 316,934 275,989 Derivative market value adjustments and derivative settlements, net 8,416 14,963 28,134 Total other income 294,157 347,525 323,140 Operating expenses 5,057 5,598 5,626 Income before income taxes 288,634 343,298 320,992 Income tax expense (20,655 ) (34,017 ) (16,651 ) Net income 267,979 309,281 304,341 Net income attributable to noncontrolling interest — 1,671 1,669 Net income attributable to Nelnet, Inc. $ 267,979 307,610 302,672 |
Parent Only Statement of Other Comprehensive Income [Table Text Block] | Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Net income $ 267,979 309,281 304,341 Other comprehensive income: Available-for-sale securities: Unrealized holding (losses) gains arising during period, net (1,570 ) 9,006 9,134 Less reclassification adjustment for gains recognized in net income, net of losses (2,955 ) (8,506 ) (5,938 ) Income tax effect 1,674 (184 ) (1,190 ) Total other comprehensive (loss) income (2,851 ) 316 2,006 Comprehensive income 265,128 309,597 306,347 Comprehensive income attributable to noncontrolling interest — 1,671 1,669 Comprehensive income attributable to Nelnet, Inc. $ 265,128 307,926 304,678 |
parent only statement of cash flows [Table Text Block] | Statements of Cash Flows (Parent Company Only) Years ended December 31, 2015, 2014, and 2013 2015 2014 2013 Net income attributable to Nelnet, Inc. $ 267,979 307,610 302,672 Net income attributable to noncontrolling interest — 1,671 1,669 Net income 267,979 309,281 304,341 Adjustments to reconcile net income to net cash (used by) provided by operating activities: Depreciation and amortization 327 303 284 Derivative market value adjustment (31,411 ) (36,979 ) (57,525 ) Proceeds (payments) to terminate and/or amend derivative instruments, net 65,527 1,765 (6,469 ) Payment to enter into derivative instruments — (9,087 ) — Equity in earnings of subsidiaries (276,825 ) (316,934 ) (275,989 ) Gain from sale of available-for-sale securities, net (2,955 ) (8,506 ) (5,938 ) Gain from debt repurchases (4,904 ) (6,685 ) (11,905 ) Other 7,460 5,396 3,835 (Increase) decrease in other assets (78,698 ) 4,057 209,896 Increase in other liabilities 9,825 12,512 16,205 Net cash (used by) provided by operating activities (43,675 ) (44,877 ) 176,735 Cash flows from investing activities (Increase) decrease in restricted cash (13,825 ) 3,636 59,495 Purchases of available-for-sale securities (98,332 ) (192,315 ) (217,415 ) Proceeds from sales of available-for-sale securities 94,722 240,371 116,337 Capital contributions to/from subsidiaries, net 120,291 (25,017 ) — Sales (purchases) of subsidiary debt, net 72,125 111,038 (66,272 ) Purchases of investments and issuances of notes receivable (55,206 ) (14,769 ) (11,758 ) Business acquisitions, net of cash acquired (45,916 ) — — Net cash provided by (used in) investing activities 73,859 122,944 (119,613 ) Cash flows from financing activities: Payments on notes payable (42,541 ) (63,084 ) (147,080 ) Proceeds from issuance of notes payable 116,460 27,577 135,000 Payments of debt issuance costs (773 ) (512 ) (644 ) Dividends paid (19,025 ) (18,542 ) (18,569 ) Repurchases of common stock (96,169 ) (15,713 ) (13,136 ) Proceeds from issuance of common stock 801 656 561 Issuance of noncontrolling interest — 201 5 Distribution to noncontrolling interest (230 ) (1,970 ) (1,351 ) Net cash used in financing activities (41,477 ) (71,387 ) (45,214 ) Net (decrease) increase in cash and cash equivalents (11,293 ) 6,680 11,908 Cash and cash equivalents, beginning of period 30,712 24,032 12,124 Cash and cash equivalents, end of period $ 19,419 30,712 24,032 Cash disbursements made for: Interest $ 5,914 5,189 4,150 Income taxes, net of refunds $ 147,130 155,715 59,565 Noncash investing and financing activities: Issuance of minority interest $ 3,750 — — |
Description of Business Telecom
Description of Business Telecommunications (Details) - Telecommunications [Member] | Dec. 31, 2015 |
Noncontrolling Interest [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 92.50% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.50% |
Noncontrolling Interest, Minimum earn up percentage by noncontrolling owners | 11.50% |
Noncontrolling Interest, Maximum earn up percentage by noncontrolling owners | 19.00% |
Summary of Significant Accoun51
Summary of Significant Accounting Policies and Practices Noncontrolling Interest (Details) | Dec. 31, 2015 |
Whitetail Rock [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% |
401 Building, LLC [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 50.00% |
TDP Phase Three, LLC [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 25.00% |
Telecommunications [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.50% |
Noncontrolling Interest, Minimum earn up percentage by noncontrolling owners | 11.50% |
Business Acquisition, Percentage of Voting Interests Acquired | 92.50% |
Noncontrolling Interest, Maximum earn up percentage by noncontrolling owners | 19.00% |
Summary of Significant Accoun52
Summary of Significant Accounting Policies and Practices Student Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
held for sale [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Student loans receivable, gross | $ 0 | $ 0 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies and Practices Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Impaired Financing Receivable, Recorded Investment | $ 0 | $ 0 |
Threshold Period Past Due For Financing Receivable to be Placed on Nonaccrual Status | 90 days | |
Threshold Period Past Due for Write-off of Financing Receivable | 120 days | |
Loans disbursed on or after July 1, 2006 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percent of Principal and Interest Federally Guaranteed | 97.00% | |
Loans disbursed between October 1, 1993 and July 1, 2006 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percent of Principal and Interest Federally Guaranteed | 98.00% |
Summary of Significant Accoun54
Summary of Significant Accounting Policies and Practices Cash and Cash Equivalents and Statement of Cash Flows (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of Significant Accounting Policies [Abstract] | |||
purchased accrued interest | $ 71.4 | $ 55 | $ 29 |
Student Loans Receivable and 55
Student Loans Receivable and Allowance for Loan Losses Student Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses | $ 50,498 | $ 48,900 | $ 55,122 | $ 51,902 | |
Student loans receivable, net | 28,324,552 | 28,005,195 | |||
Federally insured student loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses | 35,490 | 39,170 | 43,440 | ||
Private education loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses | 15,008 | 9,730 | $ 11,682 | ||
held for investment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 28,555,749 | 28,223,908 | |||
Loan discount, net of unamortized loan premiums and deferred origination costs | [1] | 180,699 | 169,813 | ||
Student loans receivable, net | 28,324,552 | 28,005,195 | |||
held for investment [Member] | Federally insured student loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 28,288,107 | 28,196,430 | |||
Allowance for loan losses | 35,490 | 39,170 | |||
held for investment [Member] | Private education loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 267,642 | 27,478 | |||
Allowance for loan losses | 15,008 | 9,730 | |||
held for investment [Member] | Stafford and other [Member] | Federally insured student loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 6,202,064 | 6,030,825 | |||
held for investment [Member] | Consolidation [Member] | Federally insured student loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 22,086,043 | 22,165,605 | |||
Non-Accretable Discount [Member] | held for investment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Student loans receivable, gross | 10,800,000 | 8,500,000 | |||
Loan discount, net of unamortized loan premiums and deferred origination costs | $ 33,000 | $ 28,800 | |||
[1] | At December 31, 2015 and 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.0 million and $28.8 million, respectively, of non-accretable discount associated with purchased loan portfolios of $10.8 billion and $8.5 billion, respectively. |
Student Loans Receivable and 56
Student Loans Receivable and Allowance for Loan Losses Significat Purchases and Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | $ 28,172,682 | $ 28,027,350 |
Variable-rate bonds and notes [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | 26,315,701 | $ 27,025,100 |
GCO Trust-II [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Significant Purchases | 1,600,000 | |
Student loan fair value discount | 52,900 | |
GCO Trust-II [Member] | Variable-rate bonds and notes [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | $ 1,600,000 | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | |
Debt Instrument, Unamortized Discount | $ 91,800 | |
Student Loan Securitization Trusts - 2014 Trusts [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Significant Purchases | 2,600,000 | |
Student loan fair value discount | 68,700 | |
Student Loan Securitization Trusts - 2014 Trusts [Member] | Variable-rate bonds and notes [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | $ 2,600,000 | |
Loans Receivable, Description of Variable Rate Basis | LIBOR | |
Debt Instrument, Unamortized Discount | $ 163,700 | |
Student Loan Securitization Trust - May Trust [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Significant Purchases | 504,200 | |
Student loan fair value discount | 40,900 | |
Student Loan Securitization Trust - May Trust [Member] | Variable-rate bonds and notes [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | 448,900 | |
Debt Instrument, Unamortized Discount | 84,500 | |
Student Loan Securitization Trust - August Trusts [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Significant Purchases | 1,500,000 | |
Student Loan Securitization Trust - August Trusts [Member] | Variable-rate bonds and notes [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Debt and Capital Lease Obligations | $ 1,500,000 | |
CommonBond Purchase Commitment [Member] | Private education loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term Purchase Commitment, Period | 18 months | |
Financing Receivable, Significant Purchases | $ 160,100 | |
Amended Purchase Commitment [Member] | CommonBond Purchase Commitment [Member] | Private education loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Commitments to Purchase or Sell | $ 200,000 |
Activity in the Allowance for L
Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | $ 48,900 | $ 55,122 | $ 48,900 | $ 55,122 | $ 51,902 | ||||||
Provision for loan losses | $ 3,000 | $ 3,000 | $ 2,150 | 2,000 | $ 3,500 | $ 2,000 | $ 1,500 | 2,500 | 10,150 | 9,500 | 18,500 |
Charge-offs | (14,144) | (17,592) | (19,271) | ||||||||
Allowance for loan losses - balance | 50,498 | 48,900 | 50,498 | 48,900 | 55,122 | ||||||
Federally insured loans [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | 39,170 | 43,440 | 39,170 | 43,440 | |||||||
Provision for loan losses | 8,000 | 11,000 | 20,000 | ||||||||
Charge-offs | (11,730) | (15,260) | (15,588) | ||||||||
Purchase (sale) of financing receivables, net | 50 | (10) | (1,093) | ||||||||
Allowance for loan losses - balance | 35,490 | 39,170 | 35,490 | 39,170 | 43,440 | ||||||
Private education loans [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | $ 9,730 | $ 11,682 | 9,730 | 11,682 | |||||||
Provision for loan losses | 2,150 | ||||||||||
Valuation Allowances and Reserves, Recoveries | 1,500 | 1,500 | |||||||||
Charge-offs | (2,414) | (2,332) | (3,683) | ||||||||
Recoveries - non-federally insured loans | 1,050 | 1,315 | 1,577 | ||||||||
Purchase (sale) of financing receivables, net | (140) | (1,620) | 0 | ||||||||
Transfer from repurchase obligation related to non-federally insured loans repurchased, net | 4,632 | 2,185 | 3,507 | ||||||||
Allowance for loan losses - balance | $ 15,008 | $ 9,730 | $ 15,008 | $ 9,730 | $ 11,682 |
Repurchase Obligations (Details
Repurchase Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Repurchase Obligation [Line Items] | ||
Student loans receivable, net | $ 28,324,552 | $ 28,005,195 |
Private education loans sold subject to repurchase agreement [Member] | ||
Repurchase Obligation [Line Items] | ||
Days delinquent to trigger repurchase range, minimum | 60 | |
Days delinquent to trigger repurchase range, maximum | 90 | |
Student loans receivable, net | $ 46,800 | 155,300 |
Repurchase obligation | 2,700 | $ 11,800 |
Financing Receivable, Significant Purchases | $ 98,600 |
Student Loan Status and Delinqu
Student Loan Status and Delinquency (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Federally insured loans, excluding rehabilitated loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans in-school/grace/deferment | [1] | $ 2,292,941 | $ 2,805,228 | $ 2,872,505 |
Loans in forbearance | [2] | 2,979,357 | 3,288,412 | 3,370,025 |
Loans in repayment status: | ||||
Loans current | $ 19,447,541 | $ 18,460,279 | $ 16,337,922 | |
Loans current, percentage | 84.40% | 83.50% | 82.40% | |
Total loans in repayment | $ 23,015,809 | $ 22,102,790 | $ 19,807,673 | |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% | |
Student loans receivable, gross | $ 28,288,107 | $ 28,196,430 | $ 26,050,203 | |
Private education loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Loans in-school/grace/deferment | [1] | 30,795 | 905 | 2,700 |
Loans in forbearance | [2] | 350 | 0 | 366 |
Loans in repayment status: | ||||
Loans current | $ 228,464 | $ 18,390 | $ 59,001 | |
Loans current, percentage | 96.70% | 69.20% | 86.70% | |
Total loans in repayment | $ 236,497 | $ 26,573 | $ 68,037 | |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% | |
Student loans receivable, gross | $ 267,642 | $ 27,478 | $ 71,103 | |
Financing Receivables, 31 to 60 Days Past Due [Member] [Member] | Federally insured loans, excluding rehabilitated loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 1,028,396 | $ 1,043,119 | $ 967,318 |
Financing Receivable, Percent Past Due | [3] | 4.50% | 4.80% | 4.90% |
Financing Receivables, 31 to 60 Days Past Due [Member] [Member] | Private education loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 1,771 | $ 1,078 | $ 1,672 |
Financing Receivable, Percent Past Due | [3] | 0.70% | 4.10% | 2.50% |
Financing Receivables, 61 to 90 Days Past Due [Member] | Federally insured loans, excluding rehabilitated loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 566,953 | $ 588,777 | $ 550,333 |
Financing Receivable, Percent Past Due | [3] | 2.50% | 2.70% | 2.90% |
Financing Receivables, 61 to 90 Days Past Due [Member] | Private education loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 1,283 | $ 1,035 | $ 1,718 |
Financing Receivable, Percent Past Due | [3] | 0.50% | 3.90% | 2.50% |
Financing receivables, 91-120 days past due [Member] | Federally insured loans, excluding rehabilitated loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 415,747 | $ 404,905 | $ 390,791 |
Financing Receivable, Percent Past Due | [3] | 1.80% | 1.80% | 2.00% |
Financing Receivables, Equal to Greater than 91 Days Past Due [Member] | Private education loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 4,979 | $ 6,070 | $ 5,646 |
Financing Receivable, Percent Past Due | [3] | 2.10% | 22.80% | 8.30% |
Financing receivables, 121-270 days past due [Member] | Federally insured loans, excluding rehabilitated loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3] | $ 1,166,940 | $ 1,204,405 | $ 1,117,936 |
Financing Receivable, Percent Past Due | [3] | 5.10% | 5.40% | 5.60% |
Financing receivables, 271 days or greater past due [Member] | Federally insured loans, excluding rehabilitated loans [Member] | ||||
Loans in repayment status: | ||||
Financing Receivable, Recorded Investment, Past Due | [3],[4] | $ 390,232 | $ 401,305 | $ 443,373 |
Financing Receivable, Percent Past Due | [3],[4] | 1.70% | 1.80% | 2.20% |
[1] | (a)Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students. | |||
[2] | (b)Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. | |||
[3] | (c)The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. | |||
[4] | (d)A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
Outstanding Debt Obligations (D
Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 28,172,682 | $ 28,027,350 |
Debt Instrument, Unamortized Discount (Premium), Net | (430,649) | (393,072) |
Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 26,315,701 | 27,025,100 |
Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 25,155,336 | $ 25,713,431 |
Interest rate range - minimum | 0.05% | 0.19% |
Interest rate range - maximum | 6.90% | 6.90% |
Final maturity, start | Aug. 26, 2019 | May 25, 2018 |
Final maturity, end | Aug. 26, 2052 | Aug. 26, 2052 |
Bonds and notes based on auction [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 1,160,365 | $ 1,311,669 |
Interest rate range - minimum | 0.88% | 0.47% |
Interest rate range - maximum | 2.17% | 2.17% |
Final maturity, start | Mar. 22, 2032 | Mar. 22, 2032 |
Final maturity, end | Nov. 26, 2046 | Nov. 26, 2046 |
FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 1,855,907 | $ 1,241,665 |
Interest rate range - minimum | 0.27% | 0.16% |
Interest rate range - maximum | 0.56% | 0.26% |
Final maturity, start | Apr. 29, 2018 | Jan. 17, 2016 |
Final maturity, end | Dec. 14, 2018 | Jun. 11, 2017 |
Private Loan Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 181,184 | |
Interest rate range - minimum | 0.57% | |
Interest rate range - maximum | 0.57% | |
Final maturity, start | Dec. 26, 2016 | |
Final maturity, end | Dec. 26, 2016 | |
Unsecured line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 100,000 | $ 0 |
Interest rate range - minimum | 1.79% | 0.00% |
Interest rate range - maximum | 1.92% | 0.00% |
Final maturity, start | Oct. 30, 2020 | Jun. 30, 2019 |
Final maturity, end | Oct. 30, 2020 | Jun. 30, 2019 |
Unsecured debt - Junior Subordinated Hybrid Securities [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 57,184 | $ 71,688 |
Interest rate range - minimum | 3.99% | 3.63% |
Interest rate range - maximum | 3.99% | 3.63% |
Final maturity, start | Sep. 15, 2061 | Sep. 15, 2061 |
Final maturity, end | Sep. 15, 2061 | Sep. 15, 2061 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 93,355 | $ 81,969 |
Interest rate range - minimum | 1.93% | 1.67% |
Interest rate range - maximum | 3.38% | 5.10% |
Final maturity, start | Oct. 31, 2016 | Nov. 11, 2015 |
Final maturity, end | Dec. 15, 2045 | Dec. 31, 2018 |
Bonds and notes payable, gross [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 28,603,331 | $ 28,420,422 |
Bonds and Notes Payable Outstan
Bonds and Notes Payable Outstanding Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||
Bonds and notes payable | $ 28,172,682 | $ 28,027,350 |
Secured line of credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | 75,000 | |
Amount outstanding | $ 75,000 | |
Final maturity date | Oct. 31, 2016 | |
TDP Note 1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | $ 12,000 | |
Final maturity date | Mar. 31, 2023 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.38% | |
TDP Note 2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | $ 6,400 | |
Final maturity date | Dec. 15, 2045 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.38% | |
Warehouse Agreement Borrowings [Member] | NHELP-II Warehouse [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | $ 500,000 | |
Amount outstanding | 431,109 | |
Amount available | $ 68,891 | |
Expiration of liquidity provisions | Dec. 16, 2016 | |
Debt Instrument, Maturity Date | Dec. 14, 2018 | |
Advanced as equity support | $ 36,089 | |
Minimum advance rates - range minimum | 85.00% | |
Minimum advance rates - range maximum | 95.00% | |
Maximum advance rates - range minimum | 85.00% | |
Maximum advance rates - range maximum | 95.00% | |
Warehouse Agreement Borrowings [Member] | NHELP-III Warehouse [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | $ 750,000 | |
Amount outstanding | 738,034 | |
Amount available | $ 11,966 | |
Expiration of liquidity provisions | Apr. 29, 2016 | |
Debt Instrument, Maturity Date | Apr. 29, 2018 | |
Advanced as equity support | $ 45,301 | |
Minimum advance rates - range minimum | 92.20% | |
Minimum advance rates - range maximum | 95.00% | |
Maximum advance rates - range minimum | 92.20% | |
Maximum advance rates - range maximum | 95.00% | |
Warehouse Agreement Borrowings [Member] | NFSLW-I Warehouse [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | $ 875,000 | |
Amount outstanding | 686,764 | |
Amount available | $ 188,236 | |
Expiration of liquidity provisions | Jul. 8, 2016 | |
Debt Instrument, Maturity Date | Jul. 9, 2018 | |
Advanced as equity support | $ 32,757 | |
Minimum advance rates - range minimum | 84.00% | |
Minimum advance rates - range maximum | 90.00% | |
Maximum advance rates - range minimum | 92.00% | |
Maximum advance rates - range maximum | 98.00% | |
Warehouse Agreement Borrowings [Member] | FFELP Warehouse Total [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | $ 2,125,000 | |
Amount outstanding | 1,855,907 | |
Amount available | 269,093 | |
Advanced as equity support | 114,147 | |
Unsecured Line of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | 350,000 | |
Amount outstanding | 100,000 | |
Amount available | $ 250,000 | |
Debt Instrument, Maturity Date | Oct. 30, 2020 | |
Private Loan Warehouse Total [Member] | Warehouse Agreement Borrowings [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum financing amount | $ 275,000 | |
Amount outstanding | 181,200 | |
Amount available | $ 93,800 | |
Expiration of liquidity provisions | Jun. 24, 2016 | |
Debt Instrument, Maturity Date | Dec. 26, 2016 | |
Advanced as equity support | $ 25,200 | |
Minimum advance rates - range minimum | 63.75% | |
Minimum advance rates - range maximum | 99.25% | |
Maximum advance rates - range maximum | 88.00% | |
Auction Rate Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Bonds and notes payable | $ 1,200,000 | |
Minimum [Member] | Auction Rate Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | 91-day T-Bill | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Maximum [Member] | Auction Rate Securities [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
Debt Instrument, Basis Spread on Variable Rate | 2.50% |
Bonds and Notes Payable Asset-b
Bonds and Notes Payable Asset-backed Securitizations (Details) - Asset-backed Securities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Total original principal amount | $ 1,689,746 | $ 3,239,800 |
2015-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Feb. 27, 2015 | |
Total original principal amount | $ 566,346 | |
2015-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 26, 2015 | |
Total original principal amount | $ 722,000 | |
2015-2 Securitization [Member] | 2015-2 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 26, 2015 | |
Total original principal amount | $ 122,500 | |
2015-2 Securitization [Member] | 2015-2 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 26, 2015 | |
Total original principal amount | $ 584,500 | |
2015-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 21, 2015 | |
Total original principal amount | $ 401,400 | |
2015-3 Securitization [Member] | 2015-3 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 21, 2015 | |
Total original principal amount | $ 82,500 | |
2015-3 Securitization [Member] | 2015-3 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 21, 2015 | |
Total original principal amount | $ 270,000 | |
2015-3 Securitization [Member] | 2015-3 Securitization Class A-3 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 21, 2015 | |
Total original principal amount | $ 41,400 | |
2014-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Feb. 6, 2014 | |
Total original principal amount | $ 458,500 | |
2014-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 12, 2014 | |
Total original principal amount | $ 509,000 | |
2014-2 Securitization [Member] | 2014-2 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 12, 2014 | |
Total original principal amount | $ 191,000 | |
2014-2 Securitization [Member] | 2014-2 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 12, 2014 | |
Total original principal amount | $ 222,000 | |
2014-2 Securitization [Member] | 2014-2 Securitization Class A-3 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Mar. 12, 2014 | |
Total original principal amount | $ 84,000 | |
2014-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Apr. 30, 2014 | |
Total original principal amount | $ 719,800 | |
2014-4 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 23, 2014 | |
Total original principal amount | $ 384,500 | |
2014-4 Securitization [Member] | 2014-4 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 23, 2014 | |
Total original principal amount | $ 267,500 | |
2014-4 Securitization [Member] | 2014-4 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | May 23, 2014 | |
Total original principal amount | $ 107,500 | |
2014-5 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jun. 18, 2014 | |
Total original principal amount | $ 603,000 | |
2014-6 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jul. 31, 2014 | |
Total original principal amount | $ 565,000 | |
Class A [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 1,654,132 | 3,169,700 |
Bond discount | (1,475) | (3,659) |
Issue price | 1,652,657 | 3,166,041 |
Class A [Member] | 2015-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 553,232 | |
Bond discount | 0 | |
Issue price | $ 553,232 | |
Cost of funds (1-month LIBOR plus:) | 0.59% | |
Final maturity date | Apr. 25, 2041 | |
Class A [Member] | 2015-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 707,000 | |
Bond discount | 0 | |
Issue price | 707,000 | |
Class A [Member] | 2015-2 Securitization [Member] | 2015-2 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 122,500 | |
Bond discount | 0 | |
Issue price | $ 122,500 | |
Cost of funds (1-month LIBOR plus:) | 0.27% | |
Final maturity date | Mar. 25, 2020 | |
Class A [Member] | 2015-2 Securitization [Member] | 2015-2 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 584,500 | |
Bond discount | 0 | |
Issue price | $ 584,500 | |
Cost of funds (1-month LIBOR plus:) | 0.60% | |
Final maturity date | Sep. 25, 2042 | |
Class A [Member] | 2015-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 393,900 | |
Bond discount | (1,475) | |
Issue price | 392,425 | |
Class A [Member] | 2015-3 Securitization [Member] | 2015-3 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 82,500 | |
Bond discount | 0 | |
Issue price | $ 82,500 | |
Cost of funds (1-month LIBOR plus:) | 0.30% | |
Final maturity date | Jan. 27, 2025 | |
Class A [Member] | 2015-3 Securitization [Member] | 2015-3 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 270,000 | |
Bond discount | (380) | |
Issue price | $ 269,620 | |
Cost of funds (1-month LIBOR plus:) | 0.60% | |
Final maturity date | Feb. 26, 2046 | |
Class A [Member] | 2015-3 Securitization [Member] | 2015-3 Securitization Class A-3 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 41,400 | |
Bond discount | (1,095) | |
Issue price | $ 40,305 | |
Cost of funds (1-month LIBOR plus:) | 0.90% | |
Final maturity date | Jun. 25, 2049 | |
Class A [Member] | 2014-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 445,000 | |
Bond discount | 0 | |
Issue price | $ 445,000 | |
Cost of funds (1-month LIBOR plus:) | 0.57% | |
Final maturity date | Sep. 25, 2041 | |
Class A [Member] | 2014-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 497,000 | |
Bond discount | (535) | |
Issue price | 496,465 | |
Class A [Member] | 2014-2 Securitization [Member] | 2014-2 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 191,000 | |
Bond discount | 0 | |
Issue price | $ 191,000 | |
Cost of funds (1-month LIBOR plus:) | 0.28% | |
Final maturity date | Jun. 25, 2021 | |
Class A [Member] | 2014-2 Securitization [Member] | 2014-2 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 222,000 | |
Bond discount | 0 | |
Issue price | $ 222,000 | |
Cost of funds (1-month LIBOR plus:) | 0.60% | |
Final maturity date | Mar. 25, 2030 | |
Class A [Member] | 2014-2 Securitization [Member] | 2014-2 Securitization Class A-3 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 84,000 | |
Bond discount | (535) | |
Issue price | $ 83,465 | |
Cost of funds (1-month LIBOR plus:) | 0.85% | |
Final maturity date | Jul. 27, 2037 | |
Class A [Member] | 2014-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 700,700 | |
Bond discount | 0 | |
Issue price | $ 700,700 | |
Cost of funds (1-month LIBOR plus:) | 0.58% | |
Final maturity date | Jun. 25, 2041 | |
Class A [Member] | 2014-4 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 375,000 | |
Bond discount | 0 | |
Issue price | 375,000 | |
Class A [Member] | 2014-4 Securitization [Member] | 2014-4 Securitization Class A-1 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 267,500 | |
Bond discount | 0 | |
Issue price | $ 267,500 | |
Cost of funds (1-month LIBOR plus:) | 0.54% | |
Final maturity date | Nov. 27, 2034 | |
Class A [Member] | 2014-4 Securitization [Member] | 2014-4 Securitization Class A-2 [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 107,500 | |
Bond discount | 0 | |
Issue price | $ 107,500 | |
Cost of funds (1-month LIBOR plus:) | 0.95% | |
Final maturity date | Nov. 25, 2043 | |
Class A [Member] | 2014-5 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 587,000 | |
Bond discount | 0 | |
Issue price | $ 587,000 | |
Cost of funds (1-month LIBOR plus:) | 0.55% | |
Final maturity date | Jul. 25, 2041 | |
Class A [Member] | 2014-6 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 565,000 | |
Bond discount | (3,124) | |
Issue price | $ 561,876 | |
Cost of funds (1-month LIBOR plus:) | 0.65% | |
Final maturity date | Nov. 25, 2047 | |
Class B [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 35,614 | $ 70,100 |
Bond discount | (3,918) | (6,015) |
Issue price | 31,696 | 64,085 |
Class B [Member] | 2015-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 13,114 | |
Bond discount | (1,157) | |
Issue price | $ 11,957 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Jun. 25, 2046 | |
Class B [Member] | 2015-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 15,000 | |
Bond discount | (1,793) | |
Issue price | $ 13,207 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | May 25, 2049 | |
Class B [Member] | 2015-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 7,500 | |
Bond discount | (968) | |
Issue price | $ 6,532 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Jun. 27, 2050 | |
Class B [Member] | 2014-1 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | 13,500 | |
Bond discount | (1,132) | |
Issue price | $ 12,368 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Oct. 25, 2047 | |
Class B [Member] | 2014-2 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 12,000 | |
Bond discount | (1,046) | |
Issue price | $ 10,954 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Jun. 25, 2041 | |
Class B [Member] | 2014-3 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 19,100 | |
Bond discount | (1,467) | |
Issue price | $ 17,633 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Oct. 25, 2050 | |
Class B [Member] | 2014-4 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 9,500 | |
Bond discount | (1,138) | |
Issue price | $ 8,362 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | Sep. 25, 2051 | |
Class B [Member] | 2014-5 Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Total original principal amount | $ 16,000 | |
Bond discount | (1,232) | |
Issue price | $ 14,768 | |
Cost of funds (1-month LIBOR plus:) | 1.50% | |
Final maturity date | May 25, 2049 |
Bonds and Notes Payable Junior
Bonds and Notes Payable Junior Subordinated Hybrid Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 28,172,682 | $ 28,027,350 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 200,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.99% | |
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR | |
Debt Instrument, Basis Spread on Variable Rate | 3.375% | |
Required minimum balance after optional redemption | $ 50,000 | |
Debt and Capital Lease Obligations | $ 57,184 | $ 71,688 |
Bonds and Notes Payable Maturit
Bonds and Notes Payable Maturity of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Notes payable | $ 28,172,682 | $ 28,027,350 |
Debt and Capital Lease Obligations, Gross [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 256,184 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 1,855,907 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 173,755 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 194,648 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 26,122,837 | |
Notes payable | $ 28,603,331 | $ 28,420,422 |
Bonds and Notes Payable Debt Re
Bonds and Notes Payable Debt Repurchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Extinguishment of Debt, Amount | $ 46,530 | $ 54,012 | $ 90,471 |
Debt Instrument, Repurchase price | 41,728 | 47,397 | 78,805 |
Gain (Loss) on Repurchase of Debt Instrument | 4,802 | 6,615 | 11,666 |
Asset-backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Extinguishment of Debt, Amount | 32,026 | 29,243 | 87,696 |
Debt Instrument, Repurchase price | 30,354 | 27,636 | 76,725 |
Gain (Loss) on Repurchase of Debt Instrument | 1,672 | 1,607 | 10,971 |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Extinguishment of Debt, Amount | 14,504 | 24,769 | 2,775 |
Debt Instrument, Repurchase price | 11,374 | 19,761 | 2,080 |
Gain (Loss) on Repurchase of Debt Instrument | $ 3,130 | $ 5,008 | $ 695 |
Derivative Financial Instrume66
Derivative Financial Instruments Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative [Line Items] | ||||
Increase (Decrease) in Financial Instruments Used in Operating Activities | $ 2,936 | $ 9,087 | $ 0 | |
Student loans receivable, net | 28,324,552 | 28,005,195 | ||
Bonds and notes payable | 28,172,682 | 28,027,350 | ||
Junior Subordinated Hybrid Securities [Member] | ||||
Derivative [Line Items] | ||||
Bonds and notes payable | $ 57,184 | 71,688 | ||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR | |||
1:3 basis swaps [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 7,500,000 | $ 7,800,000 | ||
Derivative, Type of Interest Rate Paid on Swap | one-month LIBOR | |||
Weighted average basis spread on variable rate | 0.10% | 0.035% | ||
1:3 basis swaps [Member] | One-month LIBOR, Daily reset [Member] | ||||
Derivative [Line Items] | ||||
Student loans receivable, net | $ 26,000,000 | |||
Derivative, Type of Interest Rate Paid on Swap | one-month LIBOR | |||
1:3 basis swaps [Member] | Three-month commercial paper rate [Member] | ||||
Derivative [Line Items] | ||||
Student loans receivable, net | $ 1,400,000 | |||
Derivative, Type of Interest Rate Paid on Swap | three-month commercial paper rate | |||
1:3 basis swaps [Member] | Three-month treasury bill, Daily reset [Member] | ||||
Derivative [Line Items] | ||||
Student loans receivable, net | $ 800,000 | |||
Derivative, Type of Interest Rate Paid on Swap | three-month treasury bill rate | |||
1:3 basis swaps [Member] | Three-month LIBOR, Quarterly reset [Member] | ||||
Derivative [Line Items] | ||||
Bonds and notes payable | $ 15,800,000 | |||
Derivative, Type of Interest Rate Paid on Swap | three-month LIBOR | |||
1:3 basis swaps [Member] | One-month LIBOR, Monthly reset [Member] | ||||
Derivative [Line Items] | ||||
Bonds and notes payable | $ 10,100,000 | |||
Derivative, Type of Interest Rate Paid on Swap | one-month LIBOR | |||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 7,500,000 | $ 0 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2021 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 250,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2022 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 1,900,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2023 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 3,650,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2024 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 250,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2026 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 800,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2028 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 100,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2036 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 700,000 | ||
1:3 basis swaps [Member] | One Month to Three Month Basis Swap Outstanding - Maturity 2039 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | 0 | 150,000 | ||
Interest Rate Swap [Member] | unsecured debt hedges [Member] | Junior Subordinated Hybrid Securities [Member] | Maturity 2036 [Member] | ||||
Derivative [Line Items] | ||||
Bonds and notes payable | $ 57,200 | 71,700 | ||
Unsecured debt scheduled interest rate change date | Sep. 29, 2036 | |||
Debt Instrument, Description of Variable Rate Basis | three-month LIBOR | |||
Derivative, Notional Amount | $ 25,000 | $ 25,000 | ||
Weighted average fixed rate paid by the Company | [1] | 4.28% | 4.28% | |
Weighted average basis spread on variable rate | 3.375% | |||
Derivative, Fixed Interest Rate | 7.66% | 7.66% | ||
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | ||||
Derivative [Line Items] | ||||
Student loans earning fixed rate floor income | $ 11,100,000 | $ 12,700,000 | ||
Weighted Average Variable Conversion Rate | 2.15% | 1.84% | ||
Derivative, Notional Amount | $ 5,300,000 | $ 3,100,000 | ||
Weighted average fixed rate paid by the Company | [2] | 0.95% | 0.87% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 0 | $ 1,100,000 | ||
Weighted average fixed rate paid by the Company | [2] | 0.00% | 0.89% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,000,000 | $ 750,000 | ||
Weighted average fixed rate paid by the Company | [2] | 0.76% | 0.85% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2017 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 2,100,000 | $ 1,250,000 | ||
Weighted average fixed rate paid by the Company | [2] | 0.84% | 0.86% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2018 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,600,000 | $ 0 | ||
Weighted average fixed rate paid by the Company | [2] | 1.08% | 0.00% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2019 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 500,000 | $ 0 | ||
Weighted average fixed rate paid by the Company | [2] | 1.12% | 0.00% | |
Interest Rate Swap [Member] | Interest rate swaps - floor income hedges [Member] | Fixed Rate Floor Income Interest Rate Swap - Maturity 2025 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 100,000 | $ 0 | ||
Weighted average fixed rate paid by the Company | [2] | 2.32% | 0.00% | |
Interest rate swap option - floor income hedge [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Financial Instruments Used in Operating Activities | $ 9,100 | |||
Derivative, Notional Amount | $ 250,000 | |||
Derivative, Swaption Interest Rate | 3.30% | |||
Derivative, Type of Interest Rate Received on Swap | one-month LIBOR | |||
Interest Rate Cap [Member] | ||||
Derivative [Line Items] | ||||
Increase (Decrease) in Financial Instruments Used in Operating Activities | $ 2,900 | |||
Derivative, Notional Amount | 275,000 | |||
Interest Rate Cap [Member] | Interest Rate Cap 1 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 125,000 | |||
Derivative, Description of Terms | one-month LIBOR | |||
Derivative, Cap Interest Rate | 2.50% | |||
Interest Rate Cap [Member] | Interest Rate Cap 2 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 150,000 | |||
Derivative, Description of Terms | one-month LIBOR | |||
Derivative, Cap Interest Rate | 4.99% | |||
Private Loan Warehouse Total [Member] | Interest Rate Cap [Member] | ||||
Derivative [Line Items] | ||||
Bonds and notes payable | $ 275,000 | |||
[1] | For all interest rate derivatives, the Company receives discrete three-month LIBOR. | |||
[2] | For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Derivative Financial Instrume67
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details) $ in Thousands, € in Millions | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€) | Nov. 30, 2013EUR (€) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Bonds and notes payable | $ 28,172,682 | $ 28,027,350 | |||||
Re-measurement of Euro Notes | 43,801 | 58,013 | $ (35,285) | ||||
Change in fair value of cross currency interest rate swaps | (15,150) | (20,310) | 83,878 | ||||
Total impact to consolidated statements of income - income (expense) | (15,150) | (20,310) | 83,878 | ||||
Cross-currency interest rate swaps [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Bonds and notes payable | € | € 352.7 | ||||||
Derivative, Notional Amount | 450,000 | € 352.7 | |||||
Re-measurement of Euro Notes | 43,801 | 58,013 | (35,285) | [1] | |||
Change in fair value of cross currency interest rate swaps | (45,195) | (57,289) | 26,354 | [1] | |||
Total impact to consolidated statements of income - income (expense) | [2] | $ (1,394) | $ 724 | $ (8,931) | [1] | ||
Cross-currency interest rate swap 1 [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Bonds and notes payable | € | € 420.5 | ||||||
[1] | The 2013 operating results include the re-measurement of an additional €420.5 million of student loan asset-backed Euro notes and the change in fair value of a related cross-currency interest rate swap entered into in connection with the issuance of such notes. In November 2013, the principal amount outstanding on the notes was changed to U.S. dollars and the cross-currency interest swap was terminated. | ||||||
[2] | The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income. |
Derivative Financial Instrume68
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | $ 2,800 | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 28,690 | $ 64,392 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 74,881 | 32,842 | |
Proceeds to terminate and/or amend derivative instruments, net of payments | 65,527 | 1,765 | $ 65,890 |
1:3 basis swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 724 | 53,549 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 410 | 0 | |
Interest rate swaps - floor income hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 21,408 | 5,165 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1,175 | 5,034 | |
Interest rate swap option - floor income hedge [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 3,257 | 5,678 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 0 | |
Interest rate swaps - hybrid debt hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 7,646 | 7,353 | |
Interest Rate Cap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1,570 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 0 | |
Cross-currency interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 65,650 | 20,455 | |
Other [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1,731 | 0 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 0 | $ 0 |
Derivative Financial Instrume69
Derivative Financial Instruments Gross/Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instrument, net | $ 28,690 | $ 64,392 |
Derivative Liabilities Not Designated As Hedging Instruments, Net | 60,862 | 21,909 |
Derivative Assets Not Designated As Hedging Instruments, Net | 29,471 | 52,005 |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 74,881 | 32,842 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 851 | 12,387 |
Derivative, Collateral, Obligation to Return Cash | 1,454 | |
Derivative, Collateral, Right to Reclaim Cash | 13,168 | |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (851) | (12,387) |
Derivative, Collateral, Right to Reclaim Cash | $ 1,632 | $ 0 |
Derivative Financial Instrume70
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements | $ (24,250) | $ (21,843) | $ (29,636) |
Change in fair value | (15,150) | (20,310) | 83,878 |
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) | 43,801 | 58,013 | (35,285) |
Derivative market value and foreign currency adjustments and derivative settlements - income (expense) | 4,401 | 15,860 | 18,957 |
1:3 basis swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements | 1,058 | 3,389 | 3,301 |
Change in fair value | 12,292 | 36,824 | 7,467 |
Interest rate swaps - floor income hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements | (23,041) | (24,380) | (31,022) |
Change in fair value | 20,103 | 8,797 | 36,719 |
Interest rate swap option - floor income hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (2,420) | (3,409) | 0 |
Interest rate swaps - hybrid debt hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements | (1,012) | (1,025) | (1,670) |
Change in fair value | (295) | (5,233) | 12,997 |
Interest Rate Cap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (1,365) | 0 | 0 |
Cross-currency interest rate swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements | (1,255) | 173 | (245) |
Change in fair value | (45,195) | (57,289) | 26,354 |
Other [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | $ 1,730 | $ 0 | $ 341 |
Investments and Restricted Inve
Investments and Restricted Investments Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Investment Holdings [Line Items] | ||||
Investments and notes receivable | $ 303,681 | $ 235,709 | ||
Investments [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments, Fair Value Disclosure | 155,392 | 149,123 | ||
Investments [Member] | Available-for-sale securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Amortized cost | 140,816 | 133,142 | ||
Gross Unrealized Gains | 5,088 | 8,420 | ||
Gross Unrealized Losses | (1,462) | [1] | (269) | |
Investments, Fair Value Disclosure | 144,442 | 141,293 | ||
Investments [Member] | Available-for-sale securities [Member] | Student Loan Asset-Backed and Other Debt Securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Amortized cost | [2] | 139,970 | 131,589 | |
Gross Unrealized Gains | [2] | 3,402 | 6,204 | |
Gross Unrealized Losses | [2] | (1,362) | [1] | (236) |
Investments, Fair Value Disclosure | [2] | 142,010 | 137,557 | |
Investments [Member] | Available-for-sale securities [Member] | Equity securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Amortized cost | 846 | 1,553 | ||
Gross Unrealized Gains | 1,686 | 2,216 | ||
Gross Unrealized Losses | (100) | [1] | (33) | |
Investments, Fair Value Disclosure | 2,432 | 3,736 | ||
Investments [Member] | Trading investments [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments, Fair Value Disclosure | 10,950 | 7,830 | ||
Investments [Member] | Trading investments [Member] | Student Loan Asset-Backed and Other Debt Securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments, Fair Value Disclosure | 6,045 | 7,830 | ||
Investments [Member] | Trading investments [Member] | Equity securities [Member] | ||||
Investment Holdings [Line Items] | ||||
Investments, Fair Value Disclosure | 4,905 | 0 | ||
Miscellaneous Investments [Member] | Venture Capital Funds [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | [3] | 63,323 | 19,987 | |
Miscellaneous Investments [Member] | Real Estate Investment [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | [4] | 50,463 | 18,661 | |
Miscellaneous Investments [Member] | Notes Receivable [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | [5] | 18,473 | 22,255 | |
Miscellaneous Investments [Member] | Tax liens and affordable housing investments [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | 16,030 | 25,683 | ||
Investment in Hudl [Member] | Miscellaneous Investments [Member] | Venture Capital Funds [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | 41,400 | 800 | ||
TDP Phase Three, LLC [Member] | Miscellaneous Investments [Member] | Real Estate Investment [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | 25,000 | |||
Land | 3,500 | |||
Restricted Cash and Cash Equivalents | 21,500 | |||
Notes Payable | 18,400 | |||
Connected with sale of education lending subsidiary [Member] | Miscellaneous Investments [Member] | Notes Receivable [Member] | ||||
Investment Holdings [Line Items] | ||||
Other Investments | $ 17,300 | $ 20,700 | ||
[1] | As of December 31, 2015, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. | |||
[2] | As of December 31, 2015, the stated maturities of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale are shown in the following table:Year of Maturity:Amortized cost Fair valueWithin 1 year$6,323 6,2831-5 years125 1256-10 years279 279After 10 years133,243 135,323Total$139,970 142,010 | |||
[3] | (c)As of December 31, 2015 and 2014, "Venture capital and funds" included $41.4 million and $0.8 million, respectively, of the Company's equity investment in Hudl. See note 19 for further information. | |||
[4] | (d)As of December 31, 2015, "Real estate" included $25.0 million of the Company's investment in TDP. This investment includes $3.5 million of land, construction in progress, and related assets and $21.5 million of restricted cash to be used for real estate development. TDP has notes payable of $18.4 million outstanding as of December 31, 2015. | |||
[5] | (e)As of December 31, 2015 and 2014, "Notes receivable" included $17.3 million and $20.7 million, respectively, of a note receivable obtained in connection with the sale of an education lending subsidiary. |
Investments Available for Sale
Investments Available for Sale Securities (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost, within 1 year | $ 6,323 |
Fair value, within 1 year | 6,283 |
Amortized cost, 1-5 years | 125 |
Fair value, 1-5 years | 125 |
Amortized cost, 6-10 years | 279 |
Fair value, 6-10 years | 279 |
Amortized cost, after 10 years | 133,243 |
Fair value, after 10 years | 135,323 |
Amortized cost | 139,970 |
Fair value | $ 142,010 |
Investments Realized and Unreal
Investments Realized and Unrealized Gains (losses) on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Investment gains (losses) included in other income | $ 143 | $ 7,289 | $ 6,164 |
Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Gross realized gains | 3,402 | 8,581 | 6,270 |
Gross realized losses | (447) | (75) | (332) |
Trading Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Unrealized gains (losses), net | (715) | (135) | 221 |
Realized gains (losses), net | $ (2,097) | $ (1,082) | $ 5 |
Business Combination Schedule o
Business Combination Schedule of Assets Acquired at Fair Value(Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 03, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 146,000 | $ 126,200 | $ 117,118 | |
RenWeb Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 326 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 961 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 105 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 22 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 37,188 | |||
Goodwill | 9,082 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1,341 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 46,343 | |||
Telecommunications [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 334 | |||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Restricted Cash And Equivalents | 850 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1,854 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 34,377 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 405 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 11,140 | |||
Goodwill | 19,800 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 4,856 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 13,904 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 50,000 | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | 3,750 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest | $ 46,250 |
Business Combination Acquisitio
Business Combination Acquisition Details (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 03, 2014 | |
RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Business Combination, Consideration Transferred | $ 44,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 4,000 | ||
Business Combination, Contingent Consideration, Liability | 2,300 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 37,188 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 9,100 | ||
Telecommunications [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Voting Interests Acquired | 92.50% | ||
Business Combination, Consideration Transferred | $ 46,250 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 11,140 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 19,800 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 7.50% | ||
Noncontrolling Interest, Minimum earn up percentage by noncontrolling owners | 11.50% | ||
Noncontrolling Interest, Maximum earn up percentage by noncontrolling owners | 19.00% | ||
Customer Relationships [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 25,500 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Customer Relationships [Member] | Telecommunications [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 6,100 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Trade Names [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 6,400 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | ||
Trade Names [Member] | Telecommunications [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 5,000 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Computer Software [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 4,900 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||
Noncompete Agreements [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 400 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Change in fair value [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 900 | $ (1,300) | |
amount paid [Member] | RenWeb Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ (1,000) |
Intangible Assets Intangible 76
Intangible Assets Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 158 months | |
Finite-Lived Intangible Assets, Net | $ 51,062,000 | $ 42,582,000 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 199 months | |
Finite-Lived Intangible Assets, Net | $ 27,576,000 | 27,330,000 |
Accumulated amortization | $ 23,195,000 | 17,361,000 |
Computer Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 34 months | |
Finite-Lived Intangible Assets, Net | $ 11,601,000 | 6,969,000 |
Accumulated amortization | $ 4,397,000 | 1,896,000 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 202 months | |
Finite-Lived Intangible Assets, Net | $ 10,687,000 | 6,150,000 |
Accumulated amortization | $ 795,000 | 272,000 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 101 months | |
Finite-Lived Intangible Assets, Net | $ 298,000 | 333,000 |
Accumulated amortization | $ 56,000 | 21,000 |
Media Content [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 12 months | |
Finite-Lived Intangible Assets, Net | $ 900,000 | 1,800,000 |
Accumulated amortization | $ 900,000 | $ 0 |
Intangible Assets Intangible 77
Intangible Assets Intangible Assets - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets [Abstract] | |||
Amortization of Intangible Assets | $ 9,800 | $ 6,500 | $ 3,300 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 9,990 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 7,002 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 6,533 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,886 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 3,564 | ||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 20,087 | ||
Finite-Lived Intangible Assets, Net | $ 51,062 | $ 42,582 |
Goodwill Goodwill (Details)
Goodwill Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | $ 126,200 | $ 117,118 | |
Goodwill, Acquired During Period | 19,800 | 9,082 | |
Goodwill, Ending Balance | 146,000 | 126,200 | |
Student Loan and Guaranty Servicing [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | 8,596 | 8,596 | |
Goodwill, Acquired During Period | 0 | 0 | |
Goodwill, Ending Balance | 8,596 | 8,596 | |
Tuition Payment Processing and Campus Commerce [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | 67,168 | 58,086 | |
Goodwill, Acquired During Period | 0 | 9,082 | |
Goodwill, Ending Balance | 67,168 | 67,168 | |
Asset Generation and Management [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | [1] | 41,883 | 41,883 |
Goodwill, Acquired During Period | [1] | 0 | 0 |
Goodwill, Ending Balance | [1] | 41,883 | 41,883 |
Telecommunications [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | 0 | 0 | |
Goodwill, Acquired During Period | 19,800 | 0 | |
Goodwill, Ending Balance | 19,800 | 0 | |
Corporate and Other Activities [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Begining Balance | 8,553 | 8,553 | |
Goodwill, Acquired During Period | 0 | 0 | |
Goodwill, Ending Balance | $ 8,553 | $ 8,553 | |
[1] | As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. |
Property and Equipment Proper79
Property and Equipment Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Net | $ 80,482 | $ 45,894 | |
Depreciation Expense | 16,500 | 14,600 | $ 15,100 |
non-telecommunications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 123,293 | 130,285 | |
Accumulated Depreciation | 77,188 | 84,391 | |
Property, Plant and Equipment, Net | 46,105 | 45,894 | |
non-telecommunications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 89,093 | 85,294 | |
non-telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 12,638 | 12,265 | |
non-telecommunications [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 12,239 | 11,336 | |
non-telecommunications [Member] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,868 | 3,877 | |
non-telecommunications [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 3,545 | 3,645 | |
non-telecommunications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 700 | 700 | |
non-telecommunications [Member] | Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,210 | 13,168 | |
Telecommunications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 34,377 | 0 | |
Accumulated Depreciation | 0 | 0 | |
Property, Plant and Equipment, Net | 34,377 | 0 | |
Telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 909 | 0 | |
Telecommunications [Member] | network plant and fiber [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 25,669 | 0 | |
Telecommunications [Member] | Assets Held under Capital Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 1,300 | ||
Telecommunications [Member] | Customer located property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 6,912 | 0 | |
Telecommunications [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 887 | $ 0 | |
Minimum [Member] | non-telecommunications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Minimum [Member] | non-telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum [Member] | non-telecommunications [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | non-telecommunications [Member] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 4 years | ||
Minimum [Member] | non-telecommunications [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | non-telecommunications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 0 years | ||
Minimum [Member] | non-telecommunications [Member] | Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 0 years | ||
Minimum [Member] | Telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Telecommunications [Member] | network plant and fiber [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Telecommunications [Member] | Customer located property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Telecommunications [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Maximum [Member] | non-telecommunications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Maximum [Member] | non-telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Maximum [Member] | non-telecommunications [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 39 years | ||
Maximum [Member] | non-telecommunications [Member] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | non-telecommunications [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | non-telecommunications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 0 years | ||
Maximum [Member] | non-telecommunications [Member] | Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 0 years | ||
Maximum [Member] | Telecommunications [Member] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Maximum [Member] | Telecommunications [Member] | network plant and fiber [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 15 years | ||
Maximum [Member] | Telecommunications [Member] | Customer located property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | Telecommunications [Member] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years |
Shareholders' Equity Classes of
Shareholders' Equity Classes of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Common Class B [Member] | |
Class of Stock [Line Items] | |
Common Stock, Voting Rights, Number of Votes Per Share | ten |
Common Class A [Member] | |
Class of Stock [Line Items] | |
Common Stock, Voting Rights, Number of Votes Per Share | one |
Shareholders' Equity Stock Repu
Shareholders' Equity Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | ||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 3,200,000 | ||
Stock Repurchased and Retired During Period, Shares | 2,449,159 | 381,689 | 393,259 |
Stock Repurchased and Retired During Period, Value | $ 96,169 | $ 15,713 | $ 13,136 |
Average price of shares repurchased (per share) | $ 39.27 | $ 41.17 | $ 33.40 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 83,350 | $ 48,955 | $ 70,909 | $ 64,765 | $ 73,611 | $ 85,219 | $ 74,994 | $ 73,786 | $ 267,979 | $ 307,610 | $ 302,672 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 45,529,340 | 46,469,615 | 46,570,314 | ||||||||
Earnings per share - basic and diluted | $ 1.86 | $ 1.09 | $ 1.54 | $ 1.40 | $ 1.59 | $ 1.84 | $ 1.61 | $ 1.59 | $ 5.89 | $ 6.62 | $ 6.50 |
Weighted Average Number Diluted Shares Outstanding Adjustment [Abstract] | |||||||||||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | ||||||||
Unvested restricted stock shareholders [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 2,850 | $ 3,070 | $ 2,629 | ||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 484,141 | 463,700 | 404,529 | ||||||||
Earnings per share - basic and diluted | $ 5.89 | $ 6.62 | $ 6.50 | ||||||||
Common shareholders [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net Income (Loss) Attributable to Parent | $ 265,129 | $ 304,540 | $ 300,043 | ||||||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 45,045,199 | 46,005,915 | 46,165,785 | ||||||||
Earnings per share - basic and diluted | $ 5.89 | $ 6.62 | $ 6.50 | ||||||||
Shares Issued - Deferred [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Non Employee Director Stock, Cumulative Deferred Shares | 146,901 | 146,901 |
Income Taxes Gross Unrecognized
Income Taxes Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Unrecognized Tax Benefits - Gross balance - Period Start | $ 21,336 | $ 19,141 |
Additions based on tax positions of prior years | 4,749 | 1,421 |
Additions based on tax positions related to the current year | 5,096 | 4,393 |
Settlements with taxing authorities | 0 | (833) |
Reductions for tax positions of prior years | (1,327) | (641) |
Reductions based on tax positions related to the current year | 0 | 0 |
Reductions due to lapse of applicable statute of limitations | (2,166) | (2,145) |
Unrecognized Tax Benefits - Gross balance - Period End | 27,688 | 21,336 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 18,000 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 6,600 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 3,200 | $ 2,100 |
Favorably affect the effective tax rate [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 4,300 |
Income Taxes Interest and Penal
Income Taxes Interest and Penalties Accrued on Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and Penalties Related to Uncertain Tax Provisions [Line Items] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 3.2 | $ 2.1 | |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 1.2 | $ 0.1 | $ (1.3) |
Income Taxes Income Tax Provisi
Income Taxes Income Tax Provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Income Tax Expense/Benefit [Line Items] | |||||||||||
Current Federal Tax Expense (Benefit) | $ 140,778 | $ 138,269 | $ 153,756 | ||||||||
Current State and Local Tax Expense (Benefit) | 4,530 | 2,545 | 4,776 | ||||||||
Current Foreign Tax Expense (Benefit) | 23 | (235) | 122 | ||||||||
Current Income Tax Expense (Benefit) | 145,331 | 140,579 | 158,654 | ||||||||
Deferred Federal Income Tax Expense (Benefit) | 3,572 | 16,598 | 1,676 | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | 3,875 | 3,464 | 868 | ||||||||
Deferred Foreign Income Tax Expense (Benefit) | (398) | (403) | (5) | ||||||||
Deferred Income Tax Expense (Benefit) | 7,049 | 19,659 | 2,539 | ||||||||
Income Tax Expense (Benefit) | $ 47,395 | $ 26,999 | $ 40,356 | $ 37,630 | $ 30,036 | $ 46,513 | $ 43,078 | $ 40,611 | $ 152,380 | $ 160,238 | $ 161,193 |
Income Taxes Effective Tax Rate
Income Taxes Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Tax expense at federal rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) resulting from: [Abstract] | |||
State tax, net of federal income tax benefit | 1.00% | 0.70% | 0.80% |
Provision of uncertain federal and state tax matters | 0.90% | 0.40% | (0.60%) |
Tax credits | (0.50%) | (0.40%) | (0.40%) |
Other | (0.10%) | (1.40%) | 0.00% |
Effective tax rate | 36.30% | 34.30% | 34.80% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Net [Abstract] | ||
Student loans | $ 20,711 | $ 21,139 |
Intangible assets | 10,482 | 12,682 |
Securitizations | 6,684 | 7,626 |
Capital loss carry-back | 4,169 | 3,974 |
Accrued expenses | 3,034 | 2,872 |
Stock compensation | 2,882 | 2,490 |
Deferred revenue | 2,220 | 1,548 |
Other | 0 | 109 |
Deferred Tax Assets, Gross | 50,182 | 52,440 |
Deferred Tax Assets, Valuation Allowance | (222) | (304) |
Deferred Tax Assets, Net of Valuation Allowance | 49,960 | 52,136 |
Deferred Tax Liabilities, Net [Abstract] | ||
Debt repurchases | 18,759 | 24,918 |
Loan origination services | 15,695 | 19,258 |
Basis in certain derivative contracts | 24,101 | 15,692 |
Depreciation | 5,514 | 4,122 |
Unrealized gain on debt and equity securities | 1,400 | 3,016 |
Deferred Tax Liabilities, Other | 47 | 0 |
Partnership Basis | 1,748 | 1,143 |
Deferred Tax Liabilities, Gross | 67,264 | 68,149 |
Net Deferred Tax Liability | $ (17,304) | $ (16,013) |
Income Taxes Income Taxes Payab
Income Taxes Income Taxes Payable / Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income Taxes Receivable | $ 12 | $ 10.2 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | $ 734,109 | $ 709,800 | $ 644,810 | ||||||||
Interest expense | 302,210 | 273,237 | 230,935 | ||||||||
Net interest income | $ 112,215 | $ 111,993 | $ 105,096 | $ 102,595 | $ 112,492 | $ 117,487 | $ 107,713 | $ 98,871 | 431,899 | 436,563 | 413,875 |
Less provision for loan losses | 3,000 | 3,000 | 2,150 | 2,000 | 3,500 | 2,000 | 1,500 | 2,500 | 10,150 | 9,500 | 18,500 |
Net interest income after provision for loan losses | 109,215 | 108,993 | 102,946 | 100,595 | 108,992 | 115,487 | 106,213 | 96,371 | 421,749 | 427,063 | 395,375 |
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 56,694 | 61,520 | 63,833 | 57,811 | 56,538 | 52,659 | 66,460 | 64,757 | 239,858 | 240,414 | 243,428 |
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 27,561 | 30,439 | 27,686 | 34,680 | 24,688 | 26,399 | 21,834 | 25,235 | 120,365 | 98,156 | 80,682 |
Enrollment services revenue | 16,181 | 19,500 | 17,161 | 17,863 | 17,791 | 22,936 | 20,145 | 22,011 | 70,705 | 82,883 | 98,078 |
Other income, net | 27,630 | 54,002 | 46,298 | ||||||||
Gain on sale of loans and debt repurchases, net | 166 | 597 | 1,515 | 2,875 | 3,594 | 0 | 18 | 39 | 5,153 | 3,651 | 11,699 |
Derivative market value and foreign currency adjustments, net | 28,651 | 37,703 | 48,593 | ||||||||
Derivative settlements, net | (24,250) | (21,843) | (29,636) | ||||||||
Total other income | 468,112 | 494,966 | 499,142 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 64,862 | 63,215 | 58,787 | 61,050 | 60,609 | 61,098 | 53,888 | 52,484 | 247,914 | 228,079 | 196,169 |
Cost to provide enrollment services | 45,535 | 53,307 | 64,961 | ||||||||
Loan servicing fees | 7,384 | 7,793 | 7,420 | 7,616 | 7,212 | 7,077 | 7,317 | 5,403 | 30,213 | 27,009 | 23,881 |
Depreciation and amortization | 7,203 | 6,977 | 6,501 | 5,662 | 5,644 | 5,493 | 5,214 | 4,783 | 26,343 | 21,134 | 18,311 |
Other | 27,637 | 30,419 | 31,958 | 29,198 | 30,098 | 29,599 | 33,060 | 30,224 | 119,212 | 122,981 | 125,661 |
Intersegment expenses, net | 0 | 0 | 0 | ||||||||
Total operating expenses | 469,217 | 452,510 | 428,983 | ||||||||
Income (loss) before income taxes and corporate overhead allocation | 420,644 | 469,519 | 465,534 | ||||||||
Corporate overhead allocation | 0 | 0 | 0 | ||||||||
Income before income taxes | 420,644 | 469,519 | 465,534 | ||||||||
Income tax expense | (47,395) | (26,999) | (40,356) | (37,630) | (30,036) | (46,513) | (43,078) | (40,611) | (152,380) | (160,238) | (161,193) |
Net income | 83,518 | 48,977 | 70,963 | 64,806 | 73,919 | 85,376 | 75,687 | 74,299 | 268,264 | 309,281 | 304,341 |
Net income attributable to noncontrolling interest | 168 | 22 | 54 | 41 | 308 | 157 | 693 | 513 | 285 | 1,671 | 1,669 |
Net Income (Loss) Attributable to Parent | 83,350 | $ 48,955 | $ 70,909 | $ 64,765 | 73,611 | $ 85,219 | $ 74,994 | $ 73,786 | 267,979 | 307,610 | 302,672 |
Total assets | 30,485,905 | 30,098,143 | 30,485,905 | 30,098,143 | 27,770,849 | ||||||
Student Loan and Guaranty Servicing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 49 | 30 | 40 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 49 | 30 | 40 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 49 | 30 | 40 | ||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 239,858 | 240,414 | 243,428 | ||||||||
Intersegment servicing revenue | 50,354 | 55,139 | 56,744 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Enrollment services revenue | 0 | 0 | 0 | ||||||||
Other income, net | 0 | 0 | 0 | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency adjustments, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Total other income | 290,212 | 295,553 | 300,172 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 134,634 | 125,844 | 106,825 | ||||||||
Cost to provide enrollment services | 0 | 0 | 0 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 1,931 | 1,734 | 3,924 | ||||||||
Other | 57,799 | 59,521 | 67,494 | ||||||||
Intersegment expenses, net | 43,034 | 36,646 | 35,743 | ||||||||
Total operating expenses | 237,398 | 223,745 | 213,986 | ||||||||
Income (loss) before income taxes and corporate overhead allocation | 52,863 | 71,838 | 86,226 | ||||||||
Corporate overhead allocation | (9,628) | (9,029) | (6,150) | ||||||||
Income before income taxes | 43,235 | 62,809 | 80,076 | ||||||||
Income tax expense | (16,430) | (23,867) | (30,430) | ||||||||
Net income | 26,805 | 38,942 | 49,646 | ||||||||
Net income attributable to noncontrolling interest | (20) | 0 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 26,825 | 38,942 | 49,646 | ||||||||
Total assets | 80,459 | 84,495 | 80,459 | 84,495 | 84,986 | ||||||
Tuition Payment Processing and Campus Commerce [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 3 | 6 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 3 | 6 | 0 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 3 | 6 | 0 | ||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 120,365 | 98,156 | 80,682 | ||||||||
Enrollment services revenue | 0 | 0 | 0 | ||||||||
Other income, net | (925) | 1,268 | 0 | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency adjustments, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Total other income | 119,440 | 99,424 | 80,682 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 55,523 | 48,453 | 37,575 | ||||||||
Cost to provide enrollment services | 0 | 0 | 0 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 8,992 | 8,169 | 4,518 | ||||||||
Other | 15,161 | 13,006 | 9,147 | ||||||||
Intersegment expenses, net | 11,056 | 5,864 | 5,989 | ||||||||
Total operating expenses | 90,732 | 75,492 | 57,229 | ||||||||
Income (loss) before income taxes and corporate overhead allocation | 28,711 | 23,938 | 23,453 | ||||||||
Corporate overhead allocation | (3,852) | (3,010) | (1,957) | ||||||||
Income before income taxes | 24,859 | 20,928 | 21,496 | ||||||||
Income tax expense | (9,446) | (7,952) | (8,168) | ||||||||
Net income | 15,413 | 12,976 | 13,328 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 15,413 | 12,976 | 13,328 | ||||||||
Total assets | 229,615 | 231,991 | 229,615 | 231,991 | 219,064 | ||||||
Asset Generation and Management [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 728,199 | 703,382 | 638,604 | ||||||||
Interest expense | 297,625 | 269,742 | 229,533 | ||||||||
Net interest income | 430,574 | 433,640 | 409,071 | ||||||||
Less provision for loan losses | 10,150 | 9,500 | 18,500 | ||||||||
Net interest income after provision for loan losses | 420,424 | 424,140 | 390,571 | ||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Enrollment services revenue | 0 | 0 | 0 | ||||||||
Other income, net | 15,939 | 21,532 | 15,223 | ||||||||
Gain on sale of loans and debt repurchases, net | 2,034 | (1,357) | 11,004 | ||||||||
Derivative market value and foreign currency adjustments, net | 27,216 | 42,935 | 35,256 | ||||||||
Derivative settlements, net | (23,238) | (20,818) | (27,966) | ||||||||
Total other income | 21,951 | 42,292 | 33,517 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 2,172 | 2,316 | 2,292 | ||||||||
Cost to provide enrollment services | 0 | 0 | 0 | ||||||||
Loan servicing fees | 30,213 | 27,009 | 23,881 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other | 5,083 | 6,602 | 7,064 | ||||||||
Intersegment expenses, net | 51,036 | 55,808 | 57,572 | ||||||||
Total operating expenses | 88,504 | 91,735 | 90,809 | ||||||||
Income (loss) before income taxes and corporate overhead allocation | 353,871 | 374,697 | 333,279 | ||||||||
Corporate overhead allocation | (4,816) | (5,017) | (3,896) | ||||||||
Income before income taxes | 349,055 | 369,680 | 329,383 | ||||||||
Income tax expense | (132,641) | (140,477) | (125,165) | ||||||||
Net income | 216,414 | 229,203 | 204,218 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 216,414 | 229,203 | 204,218 | ||||||||
Total assets | 29,699,164 | 29,505,439 | 29,699,164 | 29,505,439 | 27,387,461 | ||||||
Telecommunications [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 0 | ||||||||||
Interest expense | 0 | ||||||||||
Net interest income | 0 | ||||||||||
Less provision for loan losses | 0 | ||||||||||
Net interest income after provision for loan losses | 0 | ||||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 0 | ||||||||||
Intersegment servicing revenue | 0 | ||||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | ||||||||||
Enrollment services revenue | 0 | ||||||||||
Other income, net | 0 | ||||||||||
Gain on sale of loans and debt repurchases, net | 0 | ||||||||||
Derivative market value and foreign currency adjustments, net | 0 | ||||||||||
Derivative settlements, net | 0 | ||||||||||
Total other income | 0 | ||||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 0 | ||||||||||
Cost to provide enrollment services | 0 | ||||||||||
Loan servicing fees | 0 | ||||||||||
Depreciation and amortization | 0 | ||||||||||
Other | 0 | ||||||||||
Intersegment expenses, net | 0 | ||||||||||
Total operating expenses | 0 | ||||||||||
Income (loss) before income taxes and corporate overhead allocation | 0 | ||||||||||
Corporate overhead allocation | 0 | ||||||||||
Income before income taxes | 0 | ||||||||||
Income tax expense | 0 | ||||||||||
Net income | 0 | ||||||||||
Net income attributable to noncontrolling interest | 0 | ||||||||||
Net Income (Loss) Attributable to Parent | 0 | ||||||||||
Total assets | 68,760 | 68,760 | |||||||||
Corporate and Other Activities [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 7,686 | 8,618 | 9,433 | ||||||||
Interest expense | 6,413 | 5,731 | 4,669 | ||||||||
Net interest income | 1,273 | 2,887 | 4,764 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 1,273 | 2,887 | 4,764 | ||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Enrollment services revenue | 70,705 | 82,883 | 98,078 | ||||||||
Other income, net | 12,616 | 31,202 | 32,218 | ||||||||
Gain on sale of loans and debt repurchases, net | 3,119 | 5,008 | 695 | ||||||||
Derivative market value and foreign currency adjustments, net | 1,435 | (5,232) | 13,337 | ||||||||
Derivative settlements, net | (1,012) | (1,025) | (1,670) | ||||||||
Total other income | 86,863 | 112,836 | 142,658 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 55,585 | 51,466 | 49,477 | ||||||||
Cost to provide enrollment services | 45,535 | 53,307 | 64,961 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 15,420 | 11,231 | 9,869 | ||||||||
Other | 41,169 | 43,852 | 43,099 | ||||||||
Intersegment expenses, net | (54,772) | (43,179) | (42,560) | ||||||||
Total operating expenses | 102,937 | 116,677 | 124,846 | ||||||||
Income (loss) before income taxes and corporate overhead allocation | (14,801) | (954) | 22,576 | ||||||||
Corporate overhead allocation | 18,296 | (17,056) | 12,003 | ||||||||
Income before income taxes | 3,495 | 16,102 | 34,579 | ||||||||
Income tax expense | 6,137 | (12,058) | 2,570 | ||||||||
Net income | 9,632 | 28,160 | 37,149 | ||||||||
Net income attributable to noncontrolling interest | 305 | 1,671 | 1,669 | ||||||||
Net Income (Loss) Attributable to Parent | 9,327 | 26,489 | 35,480 | ||||||||
Total assets | 626,830 | 497,147 | 626,830 | 497,147 | 425,959 | ||||||
Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | (1,828) | (2,236) | (3,267) | ||||||||
Interest expense | (1,828) | (2,236) | (3,267) | ||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Loan and guaranty servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | (50,354) | (55,139) | (56,744) | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Enrollment services revenue | 0 | 0 | 0 | ||||||||
Other income, net | 0 | 0 | (1,143) | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency adjustments, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Total other income | (50,354) | (55,139) | (57,887) | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 0 | 0 | 0 | ||||||||
Cost to provide enrollment services | 0 | 0 | 0 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | (1,143) | ||||||||
Intersegment expenses, net | (50,354) | (55,139) | (56,744) | ||||||||
Total operating expenses | (50,354) | (55,139) | (57,887) | ||||||||
Income (loss) before income taxes and corporate overhead allocation | 0 | 0 | 0 | ||||||||
Corporate overhead allocation | 0 | 0 | 0 | ||||||||
Income before income taxes | 0 | 0 | 0 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income | 0 | 0 | 0 | ||||||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net Income (Loss) Attributable to Parent | 0 | 0 | 0 | ||||||||
Total assets | $ (218,923) | $ (220,929) | $ (218,923) | $ (220,929) | $ (346,621) |
Segment Reporting Business Acqu
Segment Reporting Business Acquisition (Details) | Dec. 31, 2015 |
Telecommunications [Member] | |
Business Acquisition [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 92.50% |
Major Customer Major Customer (
Major Customer Major Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||||||||||
Loan and guaranty servicing revenue | $ 56,694 | $ 61,520 | $ 63,833 | $ 57,811 | $ 56,538 | $ 52,659 | $ 66,460 | $ 64,757 | $ 239,858 | $ 240,414 | $ 243,428 |
Concentration Risk Dollar Value [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Loan and guaranty servicing revenue | $ 133,200 | $ 124,400 | $ 97,400 |
Leases Minimum Future Rentals (
Leases Minimum Future Rentals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital and Operating Leased Assets [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 8,100 | $ 8,800 | $ 8,100 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 5,258 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 4,192 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 3,405 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 2,512 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 1,926 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 5,007 | ||
Operating Leases, Future Minimum Payments Due | 22,300 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 588 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 333 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 92 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 7 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 0 | ||
Capital Leases, Future Minimum Payments Due Thereafter | 0 | ||
Capital Leases, Future Minimum Payments Due | 1,020 | ||
Capital Leases, Future Minimum Payments, Interest Included in Payments | (67) | ||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $ 953 |
Defined Contribution Benefit 93
Defined Contribution Benefit Plan Defined Contribution Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Benefit Plan [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 100.00% | ||
Defined Contribution Plan, Cost Recognized | $ 4.6 | $ 4.2 | $ 3.8 |
Employer Match on Employee Contributions up to Three Percent of Employee Salary [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 100.00% | ||
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent | 50.00% | ||
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 3.00% | ||
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contribution Per Employee, Percent | 2.00% |
Stock Based Compensation Plan E
Stock Based Compensation Plan Employee Stock Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Activity | |||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price | 15.00% | ||
Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | $ 8,658,000 | ||
Allocated Share-based Compensation Expense | $ 5,200,000 | $ 4,600,000 | $ 3,100,000 |
Non-vested Shares at Beginning of Year | 499,463 | 407,051 | 378,671 |
Granted | 126,946 | 189,716 | 131,933 |
Vested | (108,424) | (77,219) | (62,491) |
Canceled | (46,388) | (20,085) | (41,062) |
Non-vested Shares at End of Year | 471,597 | 499,463 | 407,051 |
Employee Share Purchase Plan [Member] | |||
Restricted Stock Activity | |||
Allocated Share-based Compensation Expense | $ 147,000 | $ 131,000 | $ 148,000 |
Employee Share-based Compensation, Shares Issued | 23,912 | 18,140 | 18,004 |
Year one [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | $ 3,477,000 | ||
Year two [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | 2,076,000 | ||
Year three [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | 1,256,000 | ||
Year four [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | 751,000 | ||
Year five [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | 440,000 | ||
Year six and thereafter [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Employee Share-based Compensation Expense | $ 658,000 |
Stock Based Compensation Plan N
Stock Based Compensation Plan Non-employee Directors Compensation Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Securities Issued | 18,570 | 18,242 | 15,435 |
Non-employee Director Stock at Lower Cost | 85.00% | ||
Share-based Goods and Nonemployee Services Transaction, Expense | $ 905,000 | $ 777,000 | $ 673,000 |
Shares Issued - Deferred [Member] | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Securities Issued | 10,406 | 10,175 | 5,279 |
Non Employee Director Stock, Cumulative Deferred Shares | 146,901 | ||
Shares Issued - Not Deferred [Member] | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Share-based Goods and Nonemployee Services Transaction, Securities Issued | 8,164 | 8,067 | 10,156 |
Related Party Transactions Tran
Related Party Transactions Transactions with Union Financial Services, Inc. (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2015 | |
Board of Directors Chairman [Member] | ||
Related Party Transaction [Line Items] | ||
Percent ownership of Union Financial Services Inc. | 50.00% | |
Director [Member] | ||
Related Party Transaction [Line Items] | ||
Percent ownership of Union Financial Services Inc. | 50.00% | |
Nelnet, Inc. [Member] | ||
Related Party Transaction [Line Items] | ||
Aircraft purchase price | $ 5.8 | |
Percent of aircraft owned | 65.00% | |
Union Financial Services Inc. [Member] | ||
Related Party Transaction [Line Items] | ||
Proceeds from sale of percentage of aircraft | $ 2 | |
Percent of aircraft owned | 35.00% |
Related Party Transactions Tr97
Related Party Transactions Transactions with Union Bank and Trust Company (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($)BasisPoints | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)ft² | Dec. 31, 2014USD ($)BasisPoints | Dec. 31, 2013USD ($) | |
Loan Servicing [Abstract] | |||||||||||
Student loans receivable, net | $ 28,324,552,000 | $ 28,005,195,000 | $ 28,324,552,000 | $ 28,005,195,000 | |||||||
Loan and guaranty servicing revenue | 56,694,000 | $ 61,520,000 | $ 63,833,000 | $ 57,811,000 | 56,538,000 | $ 52,659,000 | $ 66,460,000 | $ 64,757,000 | 239,858,000 | 240,414,000 | $ 243,428,000 |
Accounts Receivable, Net | 51,345,000 | 50,552,000 | 51,345,000 | 50,552,000 | |||||||
Operating Cash Accounts [Abstract] | |||||||||||
Cash and cash equivalents related party | 52,150,000 | 92,700,000 | 52,150,000 | 92,700,000 | |||||||
Restricted cash - due to customers | 144,771,000 | 118,488,000 | 144,771,000 | 118,488,000 | |||||||
Interest and Dividend Income, Operating | 734,109,000 | 709,800,000 | 644,810,000 | ||||||||
Union Bank and Trust Company [Member] | |||||||||||
Loan Servicing [Abstract] | |||||||||||
Student loans receivable, net | 563,100,000 | 581,400,000 | 563,100,000 | 581,400,000 | 598,900,000 | ||||||
Loan and guaranty servicing revenue | 500,000 | 400,000 | 1,300,000 | ||||||||
Accounts Receivable, Net | 59,000 | 36,000 | 59,000 | 36,000 | |||||||
Funding, Participation Agreement [Abstract] | |||||||||||
Amount of Participation, FFELP Student Loans | 471,600,000 | 543,000,000 | 471,600,000 | 543,000,000 | |||||||
Maximum Participation to Union Bank FFELP Loans | 750,000,000 | ||||||||||
Subparticipation Agreement [Abstract] | |||||||||||
Amount of Participation | $ 2,600,000 | $ 2,600,000 | |||||||||
basis points earned on outstanding balance | BasisPoints | 40 | 40 | |||||||||
Contractual Obligation | $ 500,000 | $ 500,000 | |||||||||
Amount paid to settle the subparticipation agreement | 3,100,000 | ||||||||||
Operating Cash Accounts [Abstract] | |||||||||||
Cash and cash equivalents related party | 88,400,000 | 107,600,000 | 88,400,000 | 107,600,000 | |||||||
Restricted cash - due to customers | 36,300,000 | 14,900,000 | 36,300,000 | 14,900,000 | |||||||
Interest and Dividend Income, Operating | $ 200,000 | 200,000 | 100,000 | ||||||||
Lease Arrangements [Abstract] | |||||||||||
Square Footage Leased to Union Bank and Trust Company | ft² | 4,000 | ||||||||||
Operating Leases, Income Statement, Lease Revenue | $ 73,000 | 76,000 | 72,000 | ||||||||
Operating Leases, Rent Expense | 71,000 | 159,000 | |||||||||
529 Plan Administration Fees [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 3,500,000 | 3,400,000 | 2,800,000 | ||||||||
General and Administrative Expense [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 36,000 | 36,000 | 36,000 | ||||||||
Selling Expense [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 47,000 | 57,000 | 107,000 | ||||||||
Cash Management [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 111,000 | 117,000 | 140,000 | ||||||||
Other services [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 205,000 | 311,000 | 52,000 | ||||||||
Employee Sharing Arrangement [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 201,000 | 178,000 | 170,000 | ||||||||
Health and Productivity Services [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 19,000 | 14,000 | 18,000 | ||||||||
401K Plan Administrative Fees [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 469,000 | 450,000 | 370,000 | ||||||||
Federally insured loans [Member] | Union Bank and Trust Company [Member] | |||||||||||
Loan Purchases and Sales [Abstract] | |||||||||||
Financing Receivable, Significant Purchases | 478,200,000 | ||||||||||
Student loan fair value discount | 11,400,000 | ||||||||||
Private education loans [Member] | Union Bank and Trust Company [Member] | |||||||||||
Loan Purchases and Sales [Abstract] | |||||||||||
Financing Receivable, Significant Purchases | 4,400,000 | 200,000 | $ 200,000 | ||||||||
Student loans receivable, gross | $ 17,600,000 | $ 17,600,000 | |||||||||
Financing Receivable, Significant Sales | 16,500,000 | ||||||||||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Other | $ 0 | $ 0 |
Related Party Transactions Inve
Related Party Transactions Investment Services (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)BasisPointsshares | Dec. 31, 2014USD ($)BasisPoints | Dec. 31, 2013USD ($) | Dec. 31, 2011shares | |
Union Bank and Trust Company [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | BasisPoints | 40 | |||
Union Bank and Whitetail Rock Capital Management management agreement dated May 9, 2011, effective as of May 1, 2011 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | 25 | |||
Amount invested in funds under Whitetail Rock Capital Management management agreement | $ 685,000,000 | |||
Percent of gains from the sale of securities Whitetail Rock Capital Management earns | 50.00% | |||
Fee revenue related to investment services | $ 2,700,000 | $ 13,400,000 | $ 12,900,000 | |
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | BasisPoints | 5 | |||
Fee revenue related to investment services | $ 71,000 | 66,000 | 61,000 | |
Receivables due from Union Bank and Trust | $ 1,100,000 | 1,700,000 | ||
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] | Board of Directors Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares contributed to the trusts | shares | 3,000,000 | 3,375,000 | ||
SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | 50 | |||
Amount invested in funds under Whitetail Rock Capital Management management agreement | $ 178,600,000 | |||
Percentage of basis points earned paid to Union Bank as custodian | 50.00% | |||
Fees paid to Union Bank as custodian | $ 400,000 | $ 300,000 | $ 300,000 |
Related Party Transactions Tr99
Related Party Transactions Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") (Details) - Agile Sports Technologies, Inc. [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Mar. 17, 2015 |
Related Party Transaction [Line Items] | ||
Cost Method Investments, Original Cost | $ 40.5 | |
Parent Company [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 18.70% | |
Board of Directors Chairman [Member] | ||
Related Party Transaction [Line Items] | ||
Equity Method Investment, Ownership Percentage | 2.80% |
Assets and Liabilities that are
Assets and Liabilities that are Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | $ 155,392 | $ 149,123 |
Fair value of derivative instruments | [2] | 28,690 | 64,392 |
Total assets | 184,082 | 213,515 | |
Liabilities [Abstract] | |||
Fair value of derivative instruments | [2] | 74,881 | 32,842 |
Total liabilities | 74,881 | 32,842 | |
Student loan asset-backed securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 147,925 | 145,000 |
Equity securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 7,337 | 3,736 |
Debt securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 130 | 387 |
Level 1 [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 7,467 | 4,123 |
Fair value of derivative instruments | [2] | 0 | 0 |
Total assets | 7,467 | 4,123 | |
Liabilities [Abstract] | |||
Fair value of derivative instruments | [2] | 0 | 0 |
Total liabilities | 0 | 0 | |
Level 1 [Member] | Student loan asset-backed securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Level 1 [Member] | Equity securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 7,337 | 3,736 |
Level 1 [Member] | Debt securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 130 | 387 |
Level 2 [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 147,925 | 145,000 |
Fair value of derivative instruments | [2] | 28,690 | 64,392 |
Total assets | 176,615 | 209,392 | |
Liabilities [Abstract] | |||
Fair value of derivative instruments | [2] | 74,881 | 32,842 |
Total liabilities | 74,881 | 32,842 | |
Level 2 [Member] | Student loan asset-backed securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 147,925 | 145,000 |
Level 2 [Member] | Equity securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | 0 | 0 |
Level 2 [Member] | Debt securities [Member] | |||
Assets [Abstract] | |||
Investments, Fair Value Disclosure | [1] | $ 0 | $ 0 |
[1] | Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. | ||
[2] | All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value [Member] | ||
Financial Assets [Abstract] | ||
Student loans receivable, net | $ 28,611,350,000 | $ 28,954,266,000 |
Cash and cash equivalents | 63,529,000 | 130,481,000 |
Investments (available-for-sale and trading) | 155,392,000 | 149,123,000 |
Notes Receivable | 18,067,000 | 22,255,000 |
Restricted cash | 823,450,000 | 800,164,000 |
Restricted cash - due to customers | 144,771,000 | 118,488,000 |
Restricted investments | 9,174,000 | 50,276,000 |
Accrued interest receivable | 383,825,000 | 351,588,000 |
Fair value of derivative instruments | 28,690,000 | 64,392,000 |
Financial Liabilities [Abstract] | ||
Bonds and notes payable | 27,217,536,000 | 27,809,997,000 |
Accrued interest payable | 31,507,000 | 25,904,000 |
Due to customers | 144,771,000 | 118,488,000 |
Fair value of derivative instruments | 74,881,000 | 32,842,000 |
Fair value [Member] | Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Student loans receivable, net | 0 | 0 |
Cash and cash equivalents | 63,529,000 | 130,481,000 |
Investments (available-for-sale and trading) | 7,467,000 | 4,123,000 |
Notes Receivable | 0 | 0 |
Restricted cash | 823,450,000 | 800,164,000 |
Restricted cash - due to customers | 144,771,000 | 118,488,000 |
Restricted investments | 9,174,000 | 50,276,000 |
Accrued interest receivable | 0 | 0 |
Fair value of derivative instruments | 0 | 0 |
Financial Liabilities [Abstract] | ||
Bonds and notes payable | 0 | 0 |
Accrued interest payable | 0 | 0 |
Due to customers | 144,771,000 | 118,488,000 |
Fair value of derivative instruments | 0 | 0 |
Fair value [Member] | Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Student loans receivable, net | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Investments (available-for-sale and trading) | 147,925,000 | 145,000,000 |
Notes Receivable | 18,067,000 | 22,255,000 |
Restricted cash | 0 | 0 |
Restricted cash - due to customers | 0 | 0 |
Restricted investments | 0 | 0 |
Accrued interest receivable | 383,825,000 | 351,588,000 |
Fair value of derivative instruments | 28,690,000 | 64,392,000 |
Financial Liabilities [Abstract] | ||
Bonds and notes payable | 27,217,536,000 | 27,809,997,000 |
Accrued interest payable | 31,507,000 | 25,904,000 |
Due to customers | 0 | 0 |
Fair value of derivative instruments | 74,881,000 | 32,842,000 |
Fair value [Member] | Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Student loans receivable, net | 28,611,350,000 | 28,954,266,000 |
Cash and cash equivalents | 0 | 0 |
Investments (available-for-sale and trading) | 0 | 0 |
Notes Receivable | 0 | 0 |
Restricted cash | 0 | 0 |
Restricted cash - due to customers | 0 | 0 |
Restricted investments | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Fair value of derivative instruments | 0 | 0 |
Financial Liabilities [Abstract] | ||
Bonds and notes payable | 0 | 0 |
Accrued interest payable | 0 | 0 |
Due to customers | 0 | 0 |
Fair value of derivative instruments | 0 | 0 |
Carrying value [Member] | ||
Financial Assets [Abstract] | ||
Student loans receivable, net | 28,324,552,000 | 28,005,195,000 |
Cash and cash equivalents | 63,529,000 | 130,481,000 |
Investments (available-for-sale and trading) | 155,392,000 | 149,123,000 |
Notes Receivable | 18,473,000 | 22,255,000 |
Restricted cash | 823,450,000 | 800,164,000 |
Restricted cash - due to customers | 144,771,000 | 118,488,000 |
Restricted investments | 9,174,000 | 50,276,000 |
Accrued interest receivable | 383,825,000 | 351,588,000 |
Fair value of derivative instruments | 28,690,000 | 64,392,000 |
Financial Liabilities [Abstract] | ||
Bonds and notes payable | 28,172,682,000 | 28,027,350,000 |
Accrued interest payable | 31,507,000 | 25,904,000 |
Due to customers | 144,771,000 | 118,488,000 |
Fair value of derivative instruments | $ 74,881,000 | $ 32,842,000 |
Quarterly Financial Informat102
Quarterly Financial Information Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net interest income | $ 112,215 | $ 111,993 | $ 105,096 | $ 102,595 | $ 112,492 | $ 117,487 | $ 107,713 | $ 98,871 | $ 431,899 | $ 436,563 | $ 413,875 |
Provision for loan losses | 3,000 | 3,000 | 2,150 | 2,000 | 3,500 | 2,000 | 1,500 | 2,500 | 10,150 | 9,500 | 18,500 |
Net interest income after provision for loan losses | 109,215 | 108,993 | 102,946 | 100,595 | 108,992 | 115,487 | 106,213 | 96,371 | 421,749 | 427,063 | 395,375 |
Loan and guaranty servicing revenue | 56,694 | 61,520 | 63,833 | 57,811 | 56,538 | 52,659 | 66,460 | 64,757 | 239,858 | 240,414 | 243,428 |
Tuition payment processing, school information, and campus commerce revenue | 27,561 | 30,439 | 27,686 | 34,680 | 24,688 | 26,399 | 21,834 | 25,235 | 120,365 | 98,156 | 80,682 |
Enrollment services revenue | 16,181 | 19,500 | 17,161 | 17,863 | 17,791 | 22,936 | 20,145 | 22,011 | 70,705 | 82,883 | 98,078 |
Other income, net | 6,684 | 6,523 | 7,504 | 6,918 | 12,906 | 7,650 | 15,315 | 18,131 | 27,630 | 54,002 | 46,298 |
Gain on sale of loans and debt repurchases, net | 166 | 597 | 1,515 | 2,875 | 3,594 | 0 | 18 | 39 | 5,153 | 3,651 | 11,699 |
Derivative market value and foreign currency adjustments and derivative settlements, net | 31,635 | (30,658) | 6,502 | (3,078) | (5,648) | 24,203 | 1,570 | (4,265) | 4,401 | 15,860 | 18,957 |
Salaries and benefits | (64,862) | (63,215) | (58,787) | (61,050) | (60,609) | (61,098) | (53,888) | (52,484) | (247,914) | (228,079) | (196,169) |
Cost to provide enrollment services | (10,137) | (12,534) | (11,162) | (11,702) | (11,343) | (14,178) | (13,311) | (14,475) | |||
Loan servicing fees | (7,384) | (7,793) | (7,420) | (7,616) | (7,212) | (7,077) | (7,317) | (5,403) | (30,213) | (27,009) | (23,881) |
Depreciation and amortization | (7,203) | (6,977) | (6,501) | (5,662) | (5,644) | (5,493) | (5,214) | (4,783) | (26,343) | (21,134) | (18,311) |
Operating expenses - other | (27,637) | (30,419) | (31,958) | (29,198) | (30,098) | (29,599) | (33,060) | (30,224) | (119,212) | (122,981) | (125,661) |
Income tax expense | (47,395) | (26,999) | (40,356) | (37,630) | (30,036) | (46,513) | (43,078) | (40,611) | (152,380) | (160,238) | (161,193) |
Net income | 83,518 | 48,977 | 70,963 | 64,806 | 73,919 | 85,376 | 75,687 | 74,299 | 268,264 | 309,281 | 304,341 |
Net income attributable to noncontrolling interest | 168 | 22 | 54 | 41 | 308 | 157 | 693 | 513 | 285 | 1,671 | 1,669 |
Net income attributable to Nelnet, Inc. | $ 83,350 | $ 48,955 | $ 70,909 | $ 64,765 | $ 73,611 | $ 85,219 | $ 74,994 | $ 73,786 | $ 267,979 | $ 307,610 | $ 302,672 |
Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ 1.86 | $ 1.09 | $ 1.54 | $ 1.40 | $ 1.59 | $ 1.84 | $ 1.61 | $ 1.59 | $ 5.89 | $ 6.62 | $ 6.50 |
Condensed Parent Only Financ103
Condensed Parent Only Financial Statements Condensed Parent Only Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash and cash equivalents | $ 63,529 | $ 130,481 | $ 63,267 | $ 66,031 |
Investments and notes receivable | 303,681 | 235,709 | ||
Restricted cash | 832,624 | 850,440 | ||
Other assets | 75,344 | 76,622 | ||
Fair value of derivative instruments | 28,690 | 64,392 | ||
Total assets | 30,485,905 | 30,098,143 | 27,770,849 | |
Liabilities: | ||||
Notes payable | 28,172,682 | 28,027,350 | ||
Other liabilities | 169,906 | 167,881 | ||
Fair value of derivative instruments | 74,881 | 32,842 | ||
Total liabilities | 28,593,747 | 28,372,465 | ||
Nelnet, Inc. shareholders' equity: | ||||
Additional paid-in capital | 0 | 17,290 | ||
Retained earnings | 1,881,708 | 1,702,560 | ||
Accumulated other comprehensive earnings | 2,284 | 5,135 | ||
Total Nelnet, Inc. shareholders' equity | 1,884,432 | 1,725,448 | ||
Noncontrolling interest | 7,726 | 230 | ||
Total equity | 1,892,158 | 1,725,678 | 1,443,990 | 1,165,213 |
Liabilities and Equity [Abstract] | ||||
Total liabilities and equity | 30,485,905 | 30,098,143 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 19,419 | 30,712 | $ 24,032 | $ 12,124 |
Investments and notes receivable | 228,690 | 136,432 | ||
Investment in subsidiary debt | 49,932 | 122,057 | ||
Restricted cash | 14,802 | 127 | ||
Investment in subsidiaries | 1,519,103 | 1,300,032 | ||
Other assets | 326,765 | 283,831 | ||
Fair value of derivative instruments | 27,120 | 64,392 | ||
Total assets | 2,185,831 | 1,937,583 | ||
Liabilities: | ||||
Notes payable | 232,184 | 149,265 | ||
Other liabilities | 56,234 | 50,253 | ||
Fair value of derivative instruments | 9,231 | 12,387 | ||
Total liabilities | 297,649 | 211,905 | ||
Nelnet, Inc. shareholders' equity: | ||||
Common stock | 440 | 463 | ||
Additional paid-in capital | 0 | 17,290 | ||
Retained earnings | 1,881,708 | 1,702,560 | ||
Accumulated other comprehensive earnings | 2,284 | 5,135 | ||
Total Nelnet, Inc. shareholders' equity | 1,884,432 | 1,725,448 | ||
Noncontrolling interest | 3,750 | 230 | ||
Total equity | 1,888,182 | 1,725,678 | ||
Liabilities and Equity [Abstract] | ||||
Total liabilities and equity | $ 2,185,831 | $ 1,937,583 |
Condensed Parent Only Financ104
Condensed Parent Only Financial Statements Condensed Parent Only Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment interest | $ 7,851 | $ 6,793 | $ 6,668 | ||||||||
Interest on bonds and notes payable | 302,210 | 273,237 | 230,935 | ||||||||
Net interest (expense) income | $ 112,215 | $ 111,993 | $ 105,096 | $ 102,595 | $ 112,492 | $ 117,487 | $ 107,713 | $ 98,871 | 431,899 | 436,563 | 413,875 |
Other income (expense): | |||||||||||
Other income, net | 6,684 | 6,523 | 7,504 | 6,918 | 12,906 | 7,650 | 15,315 | 18,131 | 27,630 | 54,002 | 46,298 |
Gain from debt repurchases | 166 | 597 | 1,515 | 2,875 | 3,594 | 0 | 18 | 39 | 5,153 | 3,651 | 11,699 |
Derivative market value adjustments and derivative settlements, net | 31,635 | (30,658) | 6,502 | (3,078) | (5,648) | 24,203 | 1,570 | (4,265) | 4,401 | 15,860 | 18,957 |
Total other income | 468,112 | 494,966 | 499,142 | ||||||||
Operating expenses | 469,217 | 452,510 | 428,983 | ||||||||
Income before income taxes | 420,644 | 469,519 | 465,534 | ||||||||
Income tax expense | (47,395) | (26,999) | (40,356) | (37,630) | (30,036) | (46,513) | (43,078) | (40,611) | (152,380) | (160,238) | (161,193) |
Net income | 83,518 | 48,977 | 70,963 | 64,806 | 73,919 | 85,376 | 75,687 | 74,299 | 268,264 | 309,281 | 304,341 |
Net income attributable to noncontrolling interest | 168 | 22 | 54 | 41 | 308 | 157 | 693 | 513 | 285 | 1,671 | 1,669 |
Net income attributable to Nelnet, Inc. | $ 83,350 | $ 48,955 | $ 70,909 | $ 64,765 | $ 73,611 | $ 85,219 | $ 74,994 | $ 73,786 | 267,979 | 307,610 | 302,672 |
Parent Company [Member] | |||||||||||
Investment interest | 5,776 | 6,863 | 7,911 | ||||||||
Interest on bonds and notes payable | 6,242 | 5,492 | 4,433 | ||||||||
Net interest (expense) income | (466) | 1,371 | 3,478 | ||||||||
Other income (expense): | |||||||||||
Other income, net | 4,012 | 8,943 | 7,112 | ||||||||
Gain from debt repurchases | 4,904 | 6,685 | 11,905 | ||||||||
Equity in subsidiaries income | 276,825 | 316,934 | 275,989 | ||||||||
Derivative market value adjustments and derivative settlements, net | 8,416 | 14,963 | 28,134 | ||||||||
Total other income | 294,157 | 347,525 | 323,140 | ||||||||
Operating expenses | 5,057 | 5,598 | 5,626 | ||||||||
Income before income taxes | 288,634 | 343,298 | 320,992 | ||||||||
Income tax expense | (20,655) | (34,017) | (16,651) | ||||||||
Net income | 267,979 | 309,281 | 304,341 | ||||||||
Net income attributable to noncontrolling interest | 0 | 1,671 | 1,669 | ||||||||
Net income attributable to Nelnet, Inc. | $ 267,979 | $ 307,610 | $ 302,672 |
Condensed Parent Only Financ105
Condensed Parent Only Financial Statements Parent Only Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 83,518 | $ 48,977 | $ 70,963 | $ 64,806 | $ 73,919 | $ 85,376 | $ 75,687 | $ 74,299 | $ 268,264 | $ 309,281 | $ 304,341 |
Unrealized holding (losses) gains arising during period, net | (1,570) | 9,006 | 9,134 | ||||||||
Less reclassification adjustment for gains recognized in net income, net of losses | (2,955) | (8,506) | (5,938) | ||||||||
Income tax effect | 1,674 | (184) | (1,190) | ||||||||
Total other comprehensive (loss) income | (2,851) | 316 | 2,006 | ||||||||
Comprehensive income | 265,413 | 309,597 | 306,347 | ||||||||
Net income attributable to noncontrolling interest | $ 168 | $ 22 | $ 54 | $ 41 | $ 308 | $ 157 | $ 693 | $ 513 | 285 | 1,671 | 1,669 |
Comprehensive income attributable to Nelnet, Inc. | 265,128 | 307,926 | 304,678 | ||||||||
Parent Company [Member] | |||||||||||
Net income | 267,979 | 309,281 | 304,341 | ||||||||
Unrealized holding (losses) gains arising during period, net | (1,570) | 9,006 | 9,134 | ||||||||
Less reclassification adjustment for gains recognized in net income, net of losses | (2,955) | (8,506) | (5,938) | ||||||||
Income tax effect | 1,674 | (184) | (1,190) | ||||||||
Total other comprehensive (loss) income | (2,851) | 316 | 2,006 | ||||||||
Comprehensive income | 265,128 | 309,597 | 306,347 | ||||||||
Net income attributable to noncontrolling interest | 0 | 1,671 | 1,669 | ||||||||
Comprehensive income attributable to Nelnet, Inc. | $ 265,128 | $ 307,926 | $ 304,678 |
Condensed Parent Only Financ106
Condensed Parent Only Financial Statements Condensed Parent Only Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income attributable to Nelnet, Inc. | $ 83,350 | $ 48,955 | $ 70,909 | $ 64,765 | $ 73,611 | $ 85,219 | $ 74,994 | $ 73,786 | $ 267,979 | $ 307,610 | $ 302,672 |
Net income attributable to noncontrolling interest | 168 | 22 | 54 | 41 | 308 | 157 | 693 | 513 | 285 | 1,671 | 1,669 |
Net income | 83,518 | $ 48,977 | $ 70,963 | 64,806 | 73,919 | $ 85,376 | $ 75,687 | 74,299 | 268,264 | 309,281 | 304,341 |
Adjustments to reconcile net income to net cash (used by) provided by operating activities: | |||||||||||
Depreciation and amortization | 123,736 | 107,969 | 79,484 | ||||||||
Proceeds (payments) to terminate and/or amend derivative instruments, net | 65,527 | 1,765 | 65,890 | ||||||||
Payment to enter into derivative instruments | (2,936) | (9,087) | 0 | ||||||||
Gain from sale of available-for-sale securities, net | (2,955) | (8,506) | (5,938) | ||||||||
(Increase) Decrease in other assets | 375 | 2,372 | (4,783) | ||||||||
Increase (decrease) in other liabilities | (8,736) | (20,529) | 4,782 | ||||||||
Net cash (used in) provided by operating activities | 391,365 | 357,449 | 387,180 | ||||||||
Cash flows from investing activities | |||||||||||
Decrease (increase) in restricted cash | 67,108 | (51,135) | 147,743 | ||||||||
Purchases of available-for-sale securities | (100,476) | (192,998) | (219,894) | ||||||||
Business and asset acquisitions, net of cash acquired, including contingency payments | (46,966) | (46,833) | 0 | ||||||||
Net cash provided by (used in) investing activities | 1,417,362 | (109,508) | 496,580 | ||||||||
Cash flows from financing activities: | |||||||||||
Payments on notes payable | (4,368,180) | (3,632,741) | (5,153,057) | ||||||||
Proceeds from issuance of notes payable | 2,614,595 | 3,502,316 | 4,312,720 | ||||||||
Payments of debt issuance costs | (11,162) | (14,934) | (13,697) | ||||||||
Dividends paid | (19,025) | (18,542) | (18,569) | ||||||||
Repurchases of common stock | (96,169) | (15,713) | (13,136) | ||||||||
Proceeds from issuance of common stock | 801 | 656 | 561 | ||||||||
Issuance of noncontrolling interest | 3,693 | 201 | 5 | ||||||||
Distribution to noncontrolling interest | (232) | (1,970) | (1,351) | ||||||||
Net cash used in financing activities | (1,875,679) | (180,727) | (886,524) | ||||||||
Net (decrease) increase in cash and cash equivalents | (66,952) | 67,214 | (2,764) | ||||||||
Cash and cash equivalents, beginning of year | 130,481 | 63,267 | 130,481 | 63,267 | 66,031 | ||||||
Cash and cash equivalents, end of year | 63,529 | 130,481 | 63,529 | 130,481 | 63,267 | ||||||
Cash disbursements made for: | |||||||||||
Interest | 228,248 | 210,700 | 190,998 | ||||||||
Income taxes, net of refunds | 147,235 | 155,828 | 154,840 | ||||||||
Noncash investing and financing activities: | |||||||||||
Issuance of minority interest | 3,750 | 0 | 0 | ||||||||
Parent Company [Member] | |||||||||||
Net income attributable to Nelnet, Inc. | 267,979 | 307,610 | 302,672 | ||||||||
Net income attributable to noncontrolling interest | 0 | 1,671 | 1,669 | ||||||||
Net income | 267,979 | 309,281 | 304,341 | ||||||||
Adjustments to reconcile net income to net cash (used by) provided by operating activities: | |||||||||||
Depreciation and amortization | 327 | 303 | 284 | ||||||||
Derivative market value adjustment | (31,411) | (36,979) | (57,525) | ||||||||
Proceeds (payments) to terminate and/or amend derivative instruments, net | 65,527 | 1,765 | (6,469) | ||||||||
Payment to enter into derivative instruments | 0 | (9,087) | 0 | ||||||||
Equity in earnings of subsidiaries | (276,825) | (316,934) | (275,989) | ||||||||
Gain from sale of available-for-sale securities, net | (2,955) | (8,506) | (5,938) | ||||||||
Gain from debt repurchases | (4,904) | (6,685) | (11,905) | ||||||||
Other non-cash items | 7,460 | 5,396 | 3,835 | ||||||||
(Increase) Decrease in other assets | (78,698) | 4,057 | 209,896 | ||||||||
Increase (decrease) in other liabilities | 9,825 | 12,512 | 16,205 | ||||||||
Net cash (used in) provided by operating activities | (43,675) | (44,877) | 176,735 | ||||||||
Cash flows from investing activities | |||||||||||
Decrease (increase) in restricted cash | (13,825) | 3,636 | 59,495 | ||||||||
Purchases of available-for-sale securities | (98,332) | (192,315) | (217,415) | ||||||||
Proceeds from sales of available-for-sale securities | 94,722 | 240,371 | 116,337 | ||||||||
Capital contributions to/from subsidiaries, net | 120,291 | (25,017) | 0 | ||||||||
Sales (purchases) of subsidiary debt, net | 72,125 | 111,038 | (66,272) | ||||||||
Purchases of other investments, net | (55,206) | (14,769) | (11,758) | ||||||||
Business and asset acquisitions, net of cash acquired, including contingency payments | (45,916) | 0 | 0 | ||||||||
Net cash provided by (used in) investing activities | 73,859 | 122,944 | (119,613) | ||||||||
Cash flows from financing activities: | |||||||||||
Payments on notes payable | (42,541) | (63,084) | (147,080) | ||||||||
Proceeds from issuance of notes payable | 116,460 | 27,577 | 135,000 | ||||||||
Payments of debt issuance costs | (773) | (512) | (644) | ||||||||
Dividends paid | (19,025) | (18,542) | (18,569) | ||||||||
Repurchases of common stock | (96,169) | (15,713) | (13,136) | ||||||||
Proceeds from issuance of common stock | 801 | 656 | 561 | ||||||||
Issuance of noncontrolling interest | 0 | 201 | 5 | ||||||||
Distribution to noncontrolling interest | (230) | (1,970) | (1,351) | ||||||||
Net cash used in financing activities | (41,477) | (71,387) | (45,214) | ||||||||
Net (decrease) increase in cash and cash equivalents | (11,293) | 6,680 | 11,908 | ||||||||
Cash and cash equivalents, beginning of year | $ 30,712 | $ 24,032 | 30,712 | 24,032 | 12,124 | ||||||
Cash and cash equivalents, end of year | $ 19,419 | $ 30,712 | 19,419 | 30,712 | 24,032 | ||||||
Cash disbursements made for: | |||||||||||
Interest | 5,914 | 5,189 | 4,150 | ||||||||
Income taxes, net of refunds | 147,130 | 155,715 | 59,565 | ||||||||
Noncash investing and financing activities: | |||||||||||
Issuance of minority interest | $ 3,750 | $ 0 | $ 0 |