Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | NELNET INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 1,258,602 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,370,343 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Student loans receivable (net of allowance for loan losses of $51,964 and $51,842, respectively) | $ 22,528,845 | $ 24,903,724 |
Cash and cash equivalents: | ||
Cash and cash equivalents - not held at a related party | 11,313 | 7,841 |
Cash and cash equivalents - held at a related party | 243,078 | 61,813 |
Total cash and cash equivalents | 254,391 | 69,654 |
Investments and other receivables | 276,536 | 254,144 |
Restricted cash | 725,463 | 980,961 |
Restricted cash – due to customers | 105,299 | 119,702 |
Accrued interest receivable | 396,827 | 391,264 |
Accounts receivable (net of allowance for doubtful accounts of $1,905 and $1,549, respectively) | 70,628 | 43,972 |
Goodwill | 147,312 | 147,312 |
Intangible assets, net | 40,742 | 47,813 |
Property and equipment, net | 208,441 | 123,786 |
Other assets | 13,230 | 10,245 |
Fair value of derivative instruments | 996 | 87,531 |
Total assets | 24,768,710 | 27,180,108 |
Liabilities: | ||
Bonds and notes payable | (22,240,279) | (24,668,490) |
Accrued interest payable | 47,824 | 45,677 |
Other liabilities | (214,763) | (197,488) |
Due to customers | 105,299 | 119,702 |
Fair value of derivative instruments | (30,105) | (77,826) |
Total liabilities | 22,638,270 | 25,109,183 |
Commitments and contingencies | ||
Nelnet, Inc. shareholders' equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 360 | 420 |
Retained earnings | 2,106,895 | 2,056,084 |
Accumulated other comprehensive earnings | 4,187 | 4,730 |
Total Nelnet, Inc. shareholders' equity | 2,111,851 | 2,061,655 |
Noncontrolling interests | 18,589 | 9,270 |
Total equity | 2,130,440 | 2,070,925 |
Total liabilities and equity | 24,768,710 | 27,180,108 |
Common Class A [Member] | ||
Nelnet, Inc. shareholders' equity: | ||
Common stock | 294 | 306 |
Common Class B [Member] | ||
Nelnet, Inc. shareholders' equity: | ||
Common stock | 115 | 115 |
Supplemental information - assets and liabilities of concolidated education lending variable interest entities: [Member] | ||
Assets: | ||
Student loans receivable (net of allowance for loan losses of $51,964 and $51,842, respectively) | 22,704,085 | 25,090,530 |
Cash and cash equivalents: | ||
Restricted cash | 687,666 | 970,306 |
Other assets | 397,093 | 390,504 |
Liabilities: | ||
Bonds and notes payable | (22,459,091) | (25,105,704) |
Other liabilities | (282,441) | (290,996) |
Fair value of derivative instruments | (22,773) | (66,453) |
Nelnet, Inc. shareholders' equity: | ||
Net assets of consolidated education lending variable interest entities | $ 1,024,539 | $ 988,187 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance for loan losses | $ 51,964 | $ 51,842 |
Allowance for doubtful accounts | $ 1,905 | $ 1,549 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common Class A [Member] | ||
Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares Authorized (in shares) | 600,000,000 | 600,000,000 |
Shares Issued (in shares) | 29,436,022 | 30,628,112 |
Shares Outstanding (in shares) | 29,436,022 | 30,628,112 |
Common Class B [Member] | ||
Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares Authorized (in shares) | 60,000,000 | 60,000,000 |
Shares Issued (in shares) | 11,476,932 | 11,476,932 |
Shares Outstanding (in shares) | 11,476,932 | 11,476,932 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Loan interest | $ 191,755 | $ 193,721 | $ 562,451 | $ 567,775 |
Investment interest | 5,129 | 2,460 | 11,335 | 6,674 |
Total interest income | 196,884 | 196,181 | 573,786 | 574,449 |
Interest expense: | ||||
Interest on bonds and notes payable | 121,650 | 96,386 | 341,787 | 280,847 |
Net interest income | 75,234 | 99,795 | 231,999 | 293,602 |
Less provision for loan losses | 6,000 | 6,000 | 9,000 | 10,500 |
Net interest income (loss) after provision for loan losses | 69,234 | 93,795 | 222,999 | 283,102 |
Other income: | ||||
Loan systems and servicing revenue | 55,950 | 54,350 | 167,079 | 161,082 |
Tuition payment processing, school information, and campus commerce revenue | 35,450 | 33,071 | 113,293 | 102,211 |
Communications revenue | 6,751 | 4,343 | 17,577 | 13,167 |
Enrollment services revenue | 0 | 0 | 0 | 4,326 |
Other income | 19,756 | 15,150 | 44,874 | 38,711 |
Gain from debt repurchases | 116 | 2,160 | 5,537 | 2,260 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | 7,173 | 36,001 | (25,568) | (33,391) |
Total other income | 125,196 | 145,075 | 322,792 | 288,366 |
Operating expenses: | ||||
Salaries and benefits | 74,193 | 63,743 | 220,684 | 187,907 |
Depreciation and amortization | 10,051 | 8,994 | 27,687 | 24,817 |
Loan servicing fees | 7,939 | 5,880 | 19,584 | 20,024 |
Cost to provide communications services | 2,632 | 1,784 | 6,789 | 5,169 |
Cost to provide enrollment services | 0 | 0 | 0 | 3,623 |
Other expenses | 30,518 | 26,391 | 84,593 | 84,174 |
Total operating expenses | 125,333 | 106,792 | 359,337 | 325,714 |
Income before income taxes | 69,097 | 132,078 | 186,454 | 245,754 |
Income tax expense | 25,562 | 47,715 | 70,349 | 87,184 |
Net income (loss) | 43,535 | 84,363 | 116,105 | 158,570 |
Net loss (income) attributable to noncontrolling interests | 2,768 | (69) | 8,960 | (165) |
Net income (loss) attributable to Nelnet, Inc. | $ 46,303 | $ 84,294 | $ 125,065 | $ 158,405 |
Earnings per common share: | ||||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) | $ 1.11 | $ 1.98 | $ 2.97 | $ 3.70 |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,553,316 | 42,642,213 | 42,054,532 | 42,788,133 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 43,535 | $ 84,363 | $ 116,105 | $ 158,570 |
Available-for-sale securities: | ||||
Unrealized holding gains (losses) arising during period, net | 405 | 3,431 | 383 | (4,217) |
Reclassification adjustment for gains recognized in net income, net of losses | (504) | (491) | (1,244) | (82) |
Income tax effect | 35 | (1,087) | 318 | 1,591 |
Total other comprehensive (loss) income | (64) | 1,853 | (543) | (2,708) |
Comprehensive income | 43,471 | 86,216 | 115,562 | 155,862 |
Comprehensive loss (income) attributable to noncontrolling interests | 2,768 | (69) | 8,960 | (165) |
Comprehensive income attributable to Nelnet, Inc. | $ 46,239 | $ 86,147 | $ 124,522 | $ 155,697 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member]Preferred Stock [Member] | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive earnings [Member] | Noncontrolling interests [Member] |
Balance (in shares) at Dec. 31, 2015 | 0 | 32,476,528 | 11,476,932 | |||||
Balance at Dec. 31, 2015 | $ 1,892,158 | $ 0 | $ 325 | $ 115 | $ 0 | $ 1,881,708 | $ 2,284 | $ 7,726 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 1,339 | 1,339 | ||||||
Net income | 158,570 | 158,405 | ||||||
Net (loss) income attributable to noncontrolling interests | (165) | 165 | ||||||
Other comprehensive income | (2,708) | (2,708) | ||||||
Distribution to noncontrolling interests | (219) | (219) | ||||||
Cash dividend on Class A and Class B common stock | (15,293) | (15,293) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 175,405 | |||||||
Issuance of common stock, net of forfeitures | 3,944 | $ 1 | 3,943 | |||||
Compensation expense for stock based awards | 3,448 | 3,448 | ||||||
Repurchase of common stock (in shares) | (1,812,592) | |||||||
Repurchase of common stock | (60,143) | $ (18) | (7,167) | (52,958) | ||||
Balance (in shares) at Sep. 30, 2016 | 0 | 30,839,341 | 11,476,932 | |||||
Balance at Sep. 30, 2016 | 1,981,096 | $ 0 | $ 308 | $ 115 | 224 | 1,971,862 | (424) | 9,011 |
Balance (in shares) at Jun. 30, 2016 | 0 | 31,024,230 | 11,476,932 | |||||
Balance at Jun. 30, 2016 | 1,906,216 | $ 0 | $ 310 | $ 115 | 4,601 | 1,894,551 | (2,277) | 8,916 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 26 | 26 | ||||||
Net income | 84,363 | 84,294 | ||||||
Net (loss) income attributable to noncontrolling interests | (69) | 69 | ||||||
Other comprehensive income | 1,853 | 1,853 | ||||||
Cash dividend on Class A and Class B common stock | (5,101) | (5,101) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 16,662 | |||||||
Issuance of common stock, net of forfeitures | 282 | 282 | ||||||
Compensation expense for stock based awards | 1,132 | 1,132 | ||||||
Repurchase of common stock (in shares) | (201,551) | |||||||
Repurchase of common stock | (7,675) | $ (2) | (5,791) | (1,882) | ||||
Balance (in shares) at Sep. 30, 2016 | 0 | 30,839,341 | 11,476,932 | |||||
Balance at Sep. 30, 2016 | 1,981,096 | $ 0 | $ 308 | $ 115 | 224 | 1,971,862 | (424) | 9,011 |
Balance (in shares) at Dec. 31, 2016 | 0 | 30,628,112 | 11,476,932 | |||||
Balance at Dec. 31, 2016 | 2,070,925 | $ 0 | $ 306 | $ 115 | 420 | 2,056,084 | 4,730 | 9,270 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 19,553 | 19,553 | ||||||
Net income | 116,105 | 125,065 | ||||||
Net (loss) income attributable to noncontrolling interests | 8,960 | (8,960) | ||||||
Other comprehensive income | (543) | (543) | ||||||
Distribution to noncontrolling interests | (1,274) | (1,274) | ||||||
Cash dividend on Class A and Class B common stock | (17,569) | (17,569) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 171,481 | |||||||
Issuance of common stock, net of forfeitures | 3,361 | $ 2 | 3,359 | |||||
Compensation expense for stock based awards | 3,213 | 3,213 | ||||||
Repurchase of common stock (in shares) | (1,363,571) | |||||||
Repurchase of common stock | (63,331) | $ (14) | (6,632) | (56,685) | ||||
Balance (in shares) at Sep. 30, 2017 | 0 | 29,436,022 | 11,476,932 | |||||
Balance at Sep. 30, 2017 | 2,130,440 | $ 0 | $ 294 | $ 115 | 360 | 2,106,895 | 4,187 | 18,589 |
Balance (in shares) at Jun. 30, 2017 | 0 | 30,373,691 | 11,476,932 | |||||
Balance at Jun. 30, 2017 | 2,130,409 | $ 0 | $ 304 | $ 115 | 366 | 2,110,158 | 4,251 | 15,215 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 6,901 | 6,901 | ||||||
Net income | 43,535 | 46,303 | ||||||
Net (loss) income attributable to noncontrolling interests | 2,768 | (2,768) | ||||||
Other comprehensive income | (64) | (64) | ||||||
Distribution to noncontrolling interests | (759) | (759) | ||||||
Cash dividend on Class A and Class B common stock | (5,766) | (5,766) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 10,125 | |||||||
Issuance of common stock, net of forfeitures | 278 | 278 | ||||||
Compensation expense for stock based awards | 1,042 | 1,042 | ||||||
Repurchase of common stock (in shares) | (947,794) | |||||||
Repurchase of common stock | (45,136) | $ (10) | (1,326) | (43,800) | ||||
Balance (in shares) at Sep. 30, 2017 | 0 | 29,436,022 | 11,476,932 | |||||
Balance at Sep. 30, 2017 | $ 2,130,440 | $ 0 | $ 294 | $ 115 | $ 360 | $ 2,106,895 | $ 4,187 | $ 18,589 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Common Class A [Member] | ||||
Dividends paid per common share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.36 |
Common Class B [Member] | ||||
Dividends paid per common share (in dollars per share) | $ 0.14 | $ 0.12 | $ 0.42 | $ 0.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) attributable to Nelnet, Inc. | $ 125,065 | $ 158,405 |
Net (loss) income attributable to noncontrolling interests | 8,960 | (165) |
Net income | 116,105 | 158,570 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs | 99,826 | 83,988 |
Student loan discount accretion | (32,820) | (30,439) |
Less provision for loan losses | 9,000 | 10,500 |
Derivative market value adjustment | (22,381) | 1,556 |
Unrealized foreign currency transaction adjustment | 45,635 | 13,543 |
Proceeds from termination of derivative instruments | 3,013 | 2,830 |
Payments to enter into derivative instruments | (929) | 0 |
Proceeds from clearinghouse to settle variation margin, net | 37,744 | 0 |
Gain from debt repurchases | (5,537) | (2,260) |
Gain from sales of available-for-sale securities, net of losses | (1,244) | (82) |
Proceeds related to trading securities, net | 23 | 1,192 |
Deferred income tax benefit | (15,012) | (7,633) |
Non-cash compensation expense | 3,370 | 3,563 |
Other | 4,288 | 1,681 |
(Increase) decrease in accrued interest receivable | (5,572) | 2,021 |
Increase in accounts receivable | (26,656) | (1,982) |
Increase in other assets | (1,213) | (1,141) |
Increase in accrued interest payable | 2,147 | 11,333 |
Increase in other liabilities | 20,548 | 11,587 |
Net cash provided by operating activities | 230,335 | 258,827 |
Cash flows from investing activities: | ||
Purchases of student loans | (137,158) | (234,270) |
Net proceeds from student loan repayments, claims, capitalized interest, and other | 2,515,850 | 2,908,738 |
Proceeds from sale of student loans | 0 | 44,760 |
Purchases of available-for-sale securities | (109,666) | (66,733) |
Proceeds from sales of available-for-sale securities | 141,206 | 100,423 |
Purchases of investments and loans receivable and issuance of notes receivable | (68,131) | (14,912) |
Proceeds from investments and other receivables | 10,521 | 12,169 |
Purchases of property and equipment | (106,656) | (46,821) |
Decrease (increase) in restricted cash, net | 276,654 | (39,400) |
Net cash provided by investing activities | 2,522,620 | 2,663,954 |
Cash flows from financing activities: | ||
Payments on bonds and notes payable | (3,679,592) | (2,998,017) |
Proceeds from issuance of bonds and notes payable | 1,178,027 | 154,619 |
Payments of debt issuance costs | (4,411) | (2,098) |
Dividends paid | (17,569) | (15,293) |
Repurchases of common stock | (63,331) | (60,143) |
Proceeds from issuance of common stock | 457 | 656 |
Issuance of noncontrolling interests | 19,475 | 1,339 |
Distribution to noncontrolling interests | (1,274) | (219) |
Net cash used in financing activities | (2,568,218) | (2,919,156) |
Net increase in cash and cash equivalents | 184,737 | 3,625 |
Cash and cash equivalents, beginning of period | 69,654 | 63,529 |
Cash and cash equivalents, end of period | 254,391 | 67,154 |
Cash disbursements made for: | ||
Interest | 287,265 | 219,672 |
Income taxes, net of refunds | $ 71,431 | $ 87,633 |
Basis of Financial Reporting
Basis of Financial Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Reporting | Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of September 30, 2017 and for the three and nine months ended September 30, 2017 and 2016 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2016 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results for the year ending December 31, 2017 . The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the " 2016 Annual Report"). Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. Variable Interest Entities The following entities are VIEs of which the Company has determined that it is the primary beneficiary. 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's education lending subsidiaries 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 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 securitization 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. The Company owns 91.5 percent of the economic rights of Allo Communications LLC ("Allo") and has a disproportional 80 percent of the voting rights related to all operating decisions for Allo's business. Allo management, as current minority members, has the opportunity to earn an additional 11.5 percent of the total ownership interests based on the financial performance of Allo. In addition to the Company’s equity investment, Nelnet, Inc. (the parent) issued a $200.0 million line of credit to Allo on December 30, 2015. On September 30, 2017, the line of credit was increased by $70.0 million to a total of $270.0 million . As of September 30, 2017 , the outstanding balance and accrued interest on the line of credit was $144.5 million and $4.6 million , respectively. Nelnet, Inc.’s maximum exposure to loss as a result of its involvement with Allo is equal to its equity investment and the outstanding balance and accrued interest on the line of credit. The amounts owed by Allo to Nelnet, Inc., including the interest costs incurred by Allo and interest earnings recognized by Nelnet, Inc., are not reflected in the Company’s consolidated balance sheet as they were eliminated in consolidation. All of Allo’s financial activities and related assets and liabilities, excluding the line of credit, are reflected in the Company’s consolidated financial statements. See note 10, "Segment Reporting," for disclosure of Allo's total assets and results of operations (included in the "Communications" operating segment), note 7, "Goodwill," for disclosure of Allo's goodwill, and note 8, “Property and Equipment,” for disclosure of Allo’s fixed assets. Allo's goodwill and property and equipment comprise the majority of its assets. The assets recognized as a result of consolidating Allo are the property of Allo and are not available for any other purpose, other than to Nelnet, Inc. as a secured lender under Allo's line of credit. Noncontrolling Interest Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes Educational Loan Services, Inc. ("Great Lakes") created a joint venture to respond to the initiative announced by the U.S. Department of Education (the "Department") in April 2016 for the procurement of a contract for federal student loan servicing to acquire a single servicing platform to manage all loans owned by the Department. The joint venture operates as a new legal entity called GreatNet Solutions, LLC (“GreatNet”). Nelnet Servicing and Great Lakes each own 50 percent of the ownership interests in GreatNet. See note 11 for additional information on the contract procurement process. During the first and third quarters of 2017, Nelnet Servicing and Great Lakes each contributed $12.6 million and $6.5 million , respectively, to GreatNet and during the first quarter of 2017 GreatNet began to incur certain operating costs. For financial reporting purposes, the balance sheet and operating results of GreatNet are included in the Company’s consolidated financial statements and presented in the Company’s Loan Systems and Servicing operating segment. The proportionate share of membership interest (equity) and net loss of GreatNet that is attributable to Great Lakes is reflected as noncontrolling interests in the consolidated financial statements. On October 18, 2017, the Company entered into an agreement to purchase 100 percent of the outstanding stock of Great Lakes. See note 14, "Subsequent Events" for additional information on this business acquisition agreement. For a description of other entities in which the Company reflects noncontrolling interests in its consolidated financial statements, see note 2 of the notes to consolidated financial statements included in the 2016 Annual Report. |
Student Loans Receivable and Al
Student Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
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 As of September 30, 2017 December 31, 2016 Federally insured loans: Stafford and other $ 4,534,588 5,186,047 Consolidation 17,952,696 19,643,937 Total 22,487,284 24,829,984 Private education loans 226,629 273,659 22,713,913 25,103,643 Loan discount, net of unamortized loan premiums and deferred origination costs (119,572 ) (129,507 ) Non-accretable discount (a) (13,532 ) (18,570 ) Allowance for loan losses – federally insured loans (39,398 ) (37,268 ) Allowance for loan losses – private education loans (12,566 ) (14,574 ) $ 22,528,845 24,903,724 (a) 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. The Company recognizes student loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest 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 loans, which includes an estimate of forecasted payments in excess of contractually required payments. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan. In the third quarter of 2016, the Company revised its policy to correct for an error in its method of applying the interest method used to amortize premiums and deferred origination costs and accrete discounts on its student loan portfolio. Previously, the Company amortized premiums and deferred origination costs and accreted discounts by including in its prepayment assumption forecasted payments in excess of contractually required payments as well as forecasted defaults. The Company has determined that only payments in excess of contractually required payments (excluding forecasted defaults) should be included in the prepayment assumption. Under the Company's revised policy, as of September 30, 2016, the constant prepayment rate used by the Company to amortize/accrete student loan premiums/discounts was decreased. The constant prepayment rates under the Company's revised policy are 5 percent for Stafford loans and 3 percent for Consolidation loans. The constant prepayment rates under the Company's prior policy in effect before this correction were 6 percent and 4 percent , respectively. During the third quarter of 2016, the Company recorded an adjustment to reflect the cumulative net impact on prior periods for the correction of this error that resulted in an $8.2 million reduction to the Company's net loan discount balance and a corresponding pre-tax increase to interest income. The Company concluded this error had an immaterial impact on 2016 results as well as the results for prior periods. 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. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 49,708 48,753 51,842 50,498 Provision for loan losses: Federally insured loans 7,000 7,000 11,000 11,000 Private education loans (1,000 ) (1,000 ) (2,000 ) (500 ) Total provision for loan losses 6,000 6,000 9,000 10,500 Charge-offs: Federally insured loans (3,464 ) (3,196 ) (8,870 ) (9,462 ) Private education loans (491 ) (320 ) (861 ) (1,235 ) Total charge-offs (3,955 ) (3,516 ) (9,731 ) (10,697 ) Recoveries - private education loans 161 243 603 769 Purchase of private education loans — 30 — 290 Transfer from repurchase obligation related to private education loans repurchased 50 60 250 210 Balance at end of period $ 51,964 51,570 51,964 $ 51,570 Allocation of the allowance for loan losses: Federally insured loans $ 39,398 37,028 39,398 37,028 Private education loans 12,566 14,542 12,566 14,542 Total allowance for loan losses $ 51,964 51,570 51,964 51,570 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 September 30, 2017 As of December 31, 2016 As of September 30, 2016 Federally insured loans: Loans in-school/grace/deferment $ 1,448,172 $ 1,606,468 $ 1,864,323 Loans in forbearance 2,406,346 2,295,367 2,403,504 Loans in repayment status: Loans current 16,534,795 88.7 % 18,125,768 86.6 % 18,445,728 86.8 % Loans delinquent 31-60 days 579,665 3.1 818,976 3.9 825,905 3.9 Loans delinquent 61-90 days 334,085 1.8 487,647 2.3 491,395 2.3 Loans delinquent 91-120 days 255,567 1.4 335,291 1.6 326,020 1.5 Loans delinquent 121-270 days 700,319 3.8 854,432 4.1 835,250 3.9 Loans delinquent 271 days or greater 228,335 1.2 306,035 1.5 350,808 1.6 Total loans in repayment 18,632,766 100.0 % 20,928,149 100.0 % 21,275,106 100.0 % Total federally insured loans $ 22,487,284 $ 24,829,984 $ 25,542,933 Private education loans: Loans in-school/grace/deferment $ 27,188 $ 35,146 $ 51,042 Loans in forbearance 2,904 3,448 1,770 Loans in repayment status: Loans current 190,153 96.8 % 228,612 97.2 % 217,108 97.1 % Loans delinquent 31-60 days 1,200 0.6 1,677 0.7 1,357 0.6 Loans delinquent 61-90 days 1,195 0.6 1,110 0.5 1,228 0.5 Loans delinquent 91 days or greater 3,989 2.0 3,666 1.6 3,927 1.8 Total loans in repayment 196,537 100.0 % 235,065 100.0 % 223,620 100.0 % Total private education loans $ 226,629 $ 273,659 $ 276,432 |
Bonds and Notes Payable
Bonds and Notes Payable | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 20,675,881 0.22% - 6.90% 8/25/21 - 9/25/65 Bonds and notes based on auction 781,276 1.97% - 2.61% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 21,457,157 FFELP warehouse facilities 745,107 1.23% - 1.37% 11/19/19 - 4/27/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 84,881 2.99% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 90,896 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 210,000 2.74% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,526 4.71% 9/15/61 Other borrowings 18,355 3.38% 3/31/23 / 12/15/45 22,626,922 Discount on bonds and notes payable and debt issuance costs (386,643 ) Total $ 22,240,279 As of December 31, 2016 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 22,130,063 0.24% - 6.90% 6/25/21 - 9/25/65 Bonds and notes based on auction 998,415 1.61% - 2.28% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 23,128,478 FFELP warehouse facilities 1,677,443 0.63% - 1.09% 9/7/18 - 12/13/19 Variable-rate bonds and notes issued in private education loan asset-backed securitization 112,582 2.60% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 113,378 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit — — 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 50,184 4.37% 9/15/61 Other borrowings 18,355 3.38% 3/31/23 / 12/15/45 25,100,420 Discount on bonds and notes payable and debt issuance costs (431,930 ) Total $ 24,668,490 Asset-Backed Securitizations The following table summarizes the asset-backed securitization transactions completed during the first nine months of 2017. NSLT 2017-1 NSLT 2017-2 Total Date securities issued 5/24/17 7/26/17 Total original principal amount $ 535,000 399,390 934,390 Bond discount — (2,002 ) (2,002 ) Issue price $ 535,000 397,388 932,388 Cost of funds 1-month LIBOR plus 0.78% 1-month LIBOR plus 0.77% Final maturity date 6/25/65 9/25/65 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 September 30, 2017 , the Company had three FFELP warehouse facilities as summarized below. NFSLW-I (a) NHELP-II NHELP-III (b) Total Maximum financing amount $ 500,000 500,000 200,000 1,200,000 Amount outstanding 307,425 288,969 148,713 745,107 Amount available $ 192,575 211,031 51,287 454,893 Expiration of liquidity provisions September 20, 2019 December 15, 2017 April 27, 2018 Final maturity date November 19, 2019 December 13, 2019 April 27, 2020 Maximum advance rates 92.0 - 98.0% 85.0 - 95.0% 92.2 - 95.0% Minimum advance rates 84.0 - 90.0% 85.0 - 95.0% 92.2 - 95.0% Advanced as equity support $ 4,747 20,531 3,163 28,441 (a) On May 25, 2017 and August 18, 2017, the Company decreased the maximum financing amount for this warehouse facility by $175.0 million and $200.0 million , respectively. As of September 30, 2017 , the maximum financing amount for this warehouse facility was $500.0 million , as reflected in this table. On September 22, 2017, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to September 20, 2019 and changed the final maturity date to November 19, 2019. (b) On April 3, 2017, the Company entered into a letter agreement for this warehouse facility to decrease the maximum financing amount from $750.0 million to $600.0 million . On April 28, 2017, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to April 27, 2018 and changed the final maturity date to April 27, 2020. On May 5, 2017, May 25, 2017, and June 2, 2017, the Company decreased the maximum financing amount for this warehouse facility by $200.0 million , $100.0 million , and $100.0 million , respectively. As of September 30, 2017, the maximum financing amount for this warehouse facility was $200.0 million , as reflected in this table. Unsecured Line of Credit The Company has a $350.0 million unsecured line of credit that has a maturity date of December 12, 2021 . As of September 30, 2017 , $210.0 million was outstanding on the line of credit and $140.0 million was available for future use. 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 from debt repurchases" on the Company's consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Three months ended September 30, 2017 September 30, 2016 Asset-backed securities $ 14,702 14,586 116 10,965 8,805 2,160 Nine months ended September 30, 2017 September 30, 2016 Unsecured debt - Hybrid Securities (a) $ 29,658 25,241 4,417 — — — Asset-backed securities 18,790 17,670 1,120 11,362 9,102 2,260 $ 48,448 42,911 5,537 11,362 9,102 2,260 (a) During the three months ended March 31, 2017, the Company initiated a cash tender offer to purchase any and all of its outstanding Hybrid Securities, including a related consent solicitation to effect certain amendments to the indenture governing the notes to eliminate a provision requiring a minimum principal amount of the notes to remain outstanding after a partial redemption. After the completion of this tender offer, the Company has $20.5 million of Hybrid Securities that remain outstanding. In addition, the amendments described above have been made to the indenture. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2016 Annual Report. A tabular presentation of such derivatives outstanding as of September 30, 2017 and December 31, 2016 is presented below. Basis Swaps The following table summarizes the Company’s outstanding 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"). As of September 30, As of December 31, 2017 2016 Maturity Notional amount Notional amount 2018 $ 4,000,000 $ — 2019 3,000,000 — 2024 250,000 — 2026 1,150,000 1,150,000 2027 375,000 — 2028 325,000 325,000 2029 100,000 — 2031 300,000 300,000 $ 9,500,000 $ 1,775,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of September 30, 2017 and December 31, 2016 was one-month LIBOR plus 13.4 basis points and 10.1 basis points, respectively. Interest Rate Swaps – Floor Income Hedges The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of September 30, 2017 As of December 31, 2016 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2017 $ — — % $ 750,000 0.99 % 2018 1,350,000 1.07 1,350,000 1.07 2019 3,250,000 0.97 3,250,000 0.97 2020 1,500,000 1.01 1,500,000 1.01 2025 100,000 2.32 100,000 2.32 $ 6,200,000 1.02 % $ 6,950,000 1.02 % (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 swap option 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 $250.0 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 Caps In June 2015, in conjunction with the entry into a $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 had a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50% , and the second interest rate cap had 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 rose above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts had a maturity date of July 15, 2020. The private education loan warehouse facility was terminated by the Company on December 21, 2016. During the first quarter of 2017, the Company received $913,000 to terminate the interest rate cap contracts that were held in the private education loan warehouse legal entity and paid $929,000 to enter into new interest rate cap contracts with identical terms at Nelnet, Inc. (the parent company). The Company currently intends to keep these derivatives outstanding to partially mitigate a rise in interest rates and its impact on earnings related to its student loan portfolio earning a fixed rate. Interest Rate Swaps – Unsecured Debt Hedges As of September 30, 2017 and December 31, 2016 , the Company had $20.5 million and $50.2 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. The Company had the following derivatives outstanding as of September 30, 2017 and December 31, 2016 that are used to effectively convert the variable interest rate on a designated notional amount with respect to 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. 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 was 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 have been 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 have been 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 has received from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and has paid a spread to the LIBOR index based on a notional amount of $450.0 million . The following table shows the unrealized 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 instrument. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Re-measurement of Euro Notes $ (13,683 ) (4,831 ) (45,635 ) (13,543 ) Change in fair value of cross-currency interest rate swap 16,257 5,501 44,831 26,194 Total impact to consolidated statements of income - income (expense) (a) $ 2,574 670 (804 ) 12,651 (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency transaction adjustments and derivative settlements, net" in the Company's consolidated statements of income. Management structured the cross-currency interest rate swap to economically hedge the Euro Notes to effectively convert the notes to U.S. dollars and pay a spread on these notes based on the LIBOR index. However, the cross-currency interest rate swap did not qualify for hedge accounting. The re-measurement of the Euro-denominated bonds generally correlated with the change in the fair value of the corresponding cross-currency interest rate swap. However, the Company experienced unrealized gains and losses between these financial instruments due to the principal and accrued interest on the Euro Notes being re-measured to U.S. dollars at each reporting date based on the foreign currency exchange rate on that date, while the cross-currency interest rate swap was measured at fair value at each reporting date with the change in fair value recognized in the current period earnings. On October 25, 2017, the Company completed a remarketing of the Euro Notes which reset the principal amount outstanding on the Euro Notes to $450.0 million U.S. dollars, with an interest rate based on the 3-month LIBOR index, and resulted in the termination of the cross-currency interest rate swap. See note 14, “Subsequent Events” for additional information on this remarketing. Consolidated Financial Statement Impact Related to Derivatives Effective June 10, 2013, all over-the-counter derivative contracts executed by the Company are cleared post-execution at the Chicago Mercantile Exchange (“CME”), a regulated clearinghouse. Clearing is a process by which a third-party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default. Prior to January 3, 2017, the Company accounted for variation margin payments to the CME as collateral against its derivative position. As such, these payments were treated as a separate unit of account from the derivative instrument and reported as a liability for cash collateral received and an asset (restricted cash) for cash collateral paid. Effective January 3, 2017, the CME amended its rulebooks to legally characterize variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. Based on these rulebook changes, for accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, effective January 3, 2017, the variation margin received or paid is no longer accounted for separately as a liability or asset ("collateralized-to-market"). Instead, these payments are considered in determining the fair value of the centrally cleared derivative portfolio ("settled-to-market"). The principal difference for accounting and presentation purposes is that prior to January 3, 2017, the Company recorded the fair value of collateralized-to-market derivative contracts on its balance sheet as "fair value of derivative instruments" with an equal amount of variation margin collateral accounted for separately as an asset or liability. Subsequent to January 3, 2017, the Company records settled-to-market derivative contracts on its balance sheet with a fair value of zero and no collateral posted due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in "Derivative market value and foreign currency transaction adjustments and derivative settlements, net." The new clearinghouse requirements did not alter or affect the accounting and presentation of the Company’s derivative instruments executed prior to June 10, 2013 and those derivatives that are not required to be cleared at a clearinghouse (non-centrally cleared derivatives). The Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain non-centrally cleared derivatives are subject to right of offset provisions with counterparties. For these derivatives, the Company does not offset fair value amounts executed with the same counterparty under a master netting arrangement. In addition, the Company does not offset fair value amounts recognized for derivative instruments with respect to the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable). Balance Sheet The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of September 30, December 31, September 30, December 31, 1:3 basis swaps $ — — — 2,624 Interest rate swaps - floor income hedges — 81,159 — 256 Interest rate swap option - floor income hedge 765 2,977 — — Interest rate caps 231 1,152 — — Interest rate swaps - hybrid debt hedges — — 7,332 7,341 Cross-currency interest rate swap — — 22,773 67,605 Other — 2,243 — — Total $ 996 87,531 30,105 77,826 During the second quarter of 2017, the Company received proceeds of $2.1 million from the termination of derivatives that were included in "other" in the preceding table. Offsetting of Derivative Assets/Liabilities 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 Net asset Balance as of September 30, 2017 $ 996 — — 996 Balance as of December 31, 2016 87,531 (2,880 ) 475 85,126 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 Net liability Balance as of $ (30,105 ) — 8,470 (21,635 ) Balance as of (77,826 ) 2,880 7,292 (67,654 ) Income Statement Impact The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Settlements: 1:3 basis swaps $ (2,172 ) 523 (1,836 ) 938 Interest rate swaps - floor income hedges 3,883 (5,157 ) 5,877 (15,241 ) Interest rate swaps - hybrid debt hedges (191 ) (233 ) (593 ) (696 ) Cross-currency interest rate swap (2,093 ) (1,394 ) (5,762 ) (3,293 ) Total settlements - (expense) income (573 ) (6,261 ) (2,314 ) (18,292 ) Change in fair value: 1:3 basis swaps 5,916 140 (5,499 ) 323 Interest rate swaps - floor income hedges (185 ) 42,073 (13,670 ) (17,913 ) Interest rate swap option - floor income hedge (500 ) (269 ) (2,212 ) (2,541 ) Interest rate caps (103 ) (68 ) (936 ) (1,283 ) Interest rate swaps - hybrid debt hedges 44 13 10 (4,000 ) Cross-currency interest rate swap 16,257 5,501 44,831 26,194 Other — (297 ) (143 ) (2,336 ) Total change in fair value - income (expense) 21,429 47,093 22,381 (1,556 ) Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income (13,683 ) (4,831 ) (45,635 ) (13,543 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 7,173 36,001 (25,568 ) (33,391 ) |
Investments and Other Receivabl
Investments and Other Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investments and Other Receivables | Investments and Other Receivables A summary of the Company's investments and other receivables follows: As of September 30, 2017 As of December 31, 2016 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) $ 68,010 4,768 (240 ) 72,538 98,260 6,280 (641 ) 103,899 Equity securities 756 2,140 (21 ) 2,875 720 1,930 (61 ) 2,589 Total available-for-sale investments $ 68,766 6,908 (261 ) 75,413 98,980 8,210 (702 ) 106,488 Trading investments - equity securities — 105 Total available-for-sale and trading investments 75,413 106,593 Other Investments and Other Receivables (not measured at fair value): Venture capital and funds 84,903 69,789 Notes and loans receivable 56,732 17,031 Real estate 49,567 48,379 Tax liens and affordable housing 9,921 12,352 Total investments and other receivables $ 276,536 254,144 (a) As of September 30, 2017 , the aggregate fair value of available-for-sale investments with unrealized losses was $2.7 million , of which $0.4 million had been in a continuous unrealized loss position for greater than 12 months. Because the Company currently has the intent and ability to retain these investments for an anticipated recovery in fair value, as of September 30, 2017 , 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 September 30, 2017 , the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years. |
Intangible Assets, net Intangib
Intangible Assets, net Intangible Assets, net | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets, net | Intangible Assets, net Intangible assets consist of the following: Weighted average remaining useful life as of September 30, 2017 (months) As of September 30, 2017 As of December 31, 2016 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $11,704 and $8,548, respectively) 162 $ 25,179 28,335 Trade names (net of accumulated amortization of $2,287 and $1,653, respectively) 180 9,285 9,919 Computer software (net of accumulated amortization of $8,929 and $5,675, respectively) 17 6,042 9,296 Covenants not to compete (net of accumulated amortization of $118 and $91, respectively) 80 236 263 Total - amortizable intangible assets, net 144 $ 40,742 47,813 The Company recorded amortization expense on its intangible assets of $2.3 million and $3.2 million during the three months ended September 30, 2017 and 2016 , respectively, and $7.1 million and $8.4 million during the nine months ended September 30, 2017 and 2016 , respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of September 30, 2017 , the Company estimates it will record amortization expense as follows: 2017 (October 1 - December 31) $ 2,315 2018 8,605 2019 5,147 2020 4,231 2021 3,480 2022 and thereafter 16,964 $ 40,742 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The carrying amount of goodwill as of December 31, 2016 and September 30, 2017 by reportable operating segment was as follows: Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management Corporate and Other Activities Total Goodwill balance $ 8,596 67,168 21,112 41,883 8,553 147,312 |
Property and Equipment Property
Property and Equipment Property and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of September 30, 2017 As of December 31, 2016 Useful life Non-communications: Computer equipment and software 1-5 years $ 108,430 97,317 Building and building improvements 5-39 years 25,283 13,363 Office furniture and equipment 3-7 years 14,357 12,344 Leasehold improvements 5-20 years 6,496 3,579 Transportation equipment 4-10 years 3,813 3,809 Land — 2,605 1,682 Construction in progress — 14,025 16,346 175,009 148,440 Accumulated depreciation - non-communications 104,430 91,285 Non-communications, net property and equipment 70,579 57,155 Communications: Network plant and fiber 5-15 years 83,870 40,844 Customer located property 5-10 years 10,987 5,138 Central office 5-15 years 8,476 6,448 Transportation equipment 4-10 years 5,011 2,966 Computer equipment and software 1-5 years 3,318 2,026 Other 1-39 years 2,285 1,268 Land — 70 70 Construction in progress — 35,709 12,537 149,726 71,297 Accumulated depreciation - communications 11,864 4,666 Communications, net property and equipment 137,862 66,631 Total property and equipment, net $ 208,441 123,786 The Company recorded depreciation expense on its property and equipment of $7.7 million and $5.8 million during the three months ended September 30, 2017 and 2016 , respectively, and $20.6 million and $16.4 million during the nine months ended September 30, 2017 and 2016 , respectively. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
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. Three months ended September 30, 2017 2016 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 45,850 453 46,303 83,419 875 84,294 Denominator: Weighted-average common shares outstanding - basic and diluted 41,146,424 406,892 41,553,316 42,199,580 442,633 42,642,213 Earnings per share - basic and diluted $ 1.11 1.11 1.11 1.98 1.98 1.98 Nine months ended September 30, 2017 2016 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 123,816 1,249 125,065 156,749 1,656 158,405 Denominator: Weighted-average common shares outstanding - basic and diluted 41,634,578 419,954 42,054,532 42,340,867 447,266 42,788,133 Earnings per share - basic and diluted $ 2.97 2.97 2.97 3.70 3.70 3.70 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting See note 14 of the notes to consolidated financial statements included in the 2016 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended September 30, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 147 5 1 194,968 3,903 (2,139 ) 196,884 Interest expense — — 1,551 121,074 1,165 (2,139 ) 121,650 Net interest income 147 5 (1,550 ) 73,894 2,738 — 75,234 Less provision for loan losses — — — 6,000 — — 6,000 Net interest income (loss) after provision for loan losses 147 5 (1,550 ) 67,894 2,738 — 69,234 Other income: Loan systems and servicing revenue 55,950 — — — — — 55,950 Intersegment servicing revenue 10,563 — — — — (10,563 ) — Tuition payment processing, school information, and campus commerce revenue — 35,450 — — — — 35,450 Communications revenue — — 6,751 — — — 6,751 Other income — — — 2,753 17,003 — 19,756 Gain from debt repurchases — — — 116 — — 116 Derivative settlements, net — — — (382 ) (191 ) — (573 ) Derivative market value and foreign currency transaction adjustments, net — — — 7,702 44 — 7,746 Total other income 66,513 35,450 6,751 10,189 16,856 (10,563 ) 125,196 Operating expenses: Salaries and benefits 38,435 17,432 4,099 392 13,834 — 74,193 Depreciation and amortization 549 2,316 3,145 — 4,040 — 10,051 Loan servicing fees — — — 7,939 — — 7,939 Cost to provide communications services — — 2,632 — — — 2,632 Other expenses 10,317 4,224 2,278 1,451 12,248 — 30,518 Intersegment expenses, net 7,774 2,219 470 10,659 (10,559 ) (10,563 ) — Total operating expenses 57,075 26,191 12,624 20,441 19,563 (10,563 ) 125,333 Income (loss) before income taxes 9,585 9,264 (7,423 ) 57,642 31 — 69,097 Income tax (expense) benefit (4,937 ) (3,520 ) 2,821 (21,904 ) 1,978 — (25,562 ) Net income (loss) 4,648 5,744 (4,602 ) 35,738 2,009 — 43,535 Net loss (income) attributable to noncontrolling interests 3,408 — — — (640 ) — 2,768 Net income (loss) attributable to Nelnet, Inc. $ 8,056 5,744 (4,602 ) 35,738 1,369 — 46,303 Total assets as of September 30, 2017 $ 98,555 208,290 179,206 23,724,413 863,700 (305,454 ) 24,768,710 Three months ended September 30, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 37 2 — 194,701 2,370 (930 ) 196,181 Interest expense — — 318 95,383 1,615 (930 ) 96,386 Net interest income 37 2 (318 ) 99,318 755 — 99,795 Less provision for loan losses — — — 6,000 — — 6,000 Net interest income (loss) after provision for loan losses 37 2 (318 ) 93,318 755 — 93,795 Other income: Loan systems and servicing revenue 54,350 — — — — — 54,350 Intersegment servicing revenue 11,021 — — — — (11,021 ) — Tuition payment processing, school information, and campus commerce revenue — 33,071 — — — — 33,071 Communications revenue — — 4,343 — — — 4,343 Enrollment services revenue — — — — — — — Other income — — — 4,265 10,886 — 15,150 Gain from debt repurchases — — — 2,160 — — 2,160 Derivative settlements, net — — — (6,028 ) (233 ) — (6,261 ) Derivative market value and foreign currency transaction adjustments, net — — — 42,546 (284 ) — 42,262 Total other income 65,371 33,071 4,343 42,943 10,369 (11,021 ) 145,075 Operating expenses: . Salaries and benefits 32,505 15,979 2,325 486 12,448 — 63,743 Depreciation and amortization 557 2,929 1,630 — 3,878 — 8,994 Loan servicing fees — — — 5,880 — — 5,880 Cost to provide communications services — — 1,784 — — — 1,784 Cost to provide enrollment services — — — — — — — Other expenses 8,784 4,149 1,545 1,769 10,143 — 26,391 Intersegment expenses, net 5,825 1,616 279 11,146 (7,845 ) (11,021 ) — Total operating expenses 47,671 24,673 7,563 19,281 18,624 (11,021 ) 106,792 Income (loss) before income taxes 17,737 8,400 (3,538 ) 116,980 (7,500 ) — 132,078 Income tax (expense) benefit (6,740 ) (3,192 ) 1,344 (44,571 ) 5,443 — (47,715 ) Net income (loss) 10,997 5,208 (2,194 ) 72,409 (2,057 ) — 84,363 Net loss (income) attributable to noncontrolling interests — — — — (69 ) — (69 ) Net income (loss) attributable to Nelnet, Inc. $ 10,997 5,208 (2,194 ) 72,409 (2,126 ) — 84,294 Total assets as of September 30, 2016 $ 79,418 190,682 90,361 26,888,950 687,347 (267,147 ) 27,669,611 Nine months ended September 30, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 361 10 2 568,661 10,026 (5,274 ) 573,786 Interest expense — — 3,367 340,898 2,794 (5,274 ) 341,787 Net interest income 361 10 (3,365 ) 227,763 7,232 — 231,999 Less provision for loan losses — — — 9,000 — — 9,000 Net interest income (loss) after provision for loan losses 361 10 (3,365 ) 218,763 7,232 — 222,999 Other income: Loan systems and servicing revenue 167,079 — — — — — 167,079 Intersegment servicing revenue 30,839 — — — — (30,839 ) — Tuition payment processing, school information, and campus commerce revenue — 113,293 — — — — 113,293 Communications revenue — — 17,577 — — — 17,577 Other income — — — 9,152 35,722 — 44,874 Gain from debt repurchases — — — 1,097 4,440 — 5,537 Derivative settlements, net — — — (1,721 ) (593 ) — (2,314 ) Derivative market value and foreign currency transaction adjustments, net — — — (23,121 ) (133 ) — (23,254 ) Total other income 197,918 113,293 17,577 (14,593 ) 39,436 (30,839 ) 322,792 Operating expenses: Salaries and benefits 116,932 50,986 10,489 1,156 41,121 — 220,684 Depreciation and amortization 1,644 7,053 7,880 — 11,109 — 27,687 Loan servicing fees — — — 19,584 — — 19,584 Cost to provide communications services — — 6,789 — — — 6,789 Other expenses 28,333 14,072 5,422 4,269 32,497 — 84,593 Intersegment expenses, net 23,496 6,430 1,472 31,114 (31,673 ) (30,839 ) — Total operating expenses 170,405 78,541 32,052 56,123 53,054 (30,839 ) 359,337 Income (loss) before income taxes 27,874 34,762 (17,840 ) 148,047 (6,386 ) — 186,454 Income tax (expense) benefit (14,410 ) (13,210 ) 6,779 (56,258 ) 6,749 — (70,349 ) Net income (loss) 13,464 21,552 (11,061 ) 91,789 363 — 116,105 Net loss (income) attributable to noncontrolling interests 10,050 — — — (1,090 ) — 8,960 Net income (loss) attributable to Nelnet, Inc. $ 23,514 21,552 (11,061 ) 91,789 (727 ) — 125,065 Total assets as of September 30, 2017 $ 98,555 208,290 179,206 23,724,413 863,700 (305,454 ) 24,768,710 Nine months ended September 30, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 80 7 1 570,390 6,527 (2,556 ) 574,449 Interest expense — — 671 278,029 4,702 (2,556 ) 280,847 Net interest income 80 7 (670 ) 292,361 1,825 — 293,602 Less provision for loan losses — — — 10,500 — — 10,500 Net interest income (loss) after provision for loan losses 80 7 (670 ) 281,861 1,825 — 283,102 Other income: Loan systems and servicing revenue 161,082 — — — — — 161,082 Intersegment servicing revenue 34,436 — — — — (34,436 ) — Tuition payment processing, school information, and campus commerce revenue — 102,211 — — — — 102,211 Communications revenue — — 13,167 — — — 13,167 Enrollment services revenue — — — — 4,326 — 4,326 Other income — — — 12,362 26,349 — 38,711 Gain from debt repurchases — — — 2,260 — — 2,260 Derivative settlements, net — — — (17,596 ) (696 ) — (18,292 ) Derivative market value and foreign currency transaction adjustments, net — — — (8,763 ) (6,336 ) — (15,099 ) Total other income 195,518 102,211 13,167 (11,737 ) 23,643 (34,436 ) 288,366 Operating expenses: Salaries and benefits 96,851 45,859 4,792 1,504 38,902 — 187,907 Depreciation and amortization 1,440 7,711 4,137 — 11,528 — 24,817 Loan servicing fees — — — 20,024 — — 20,024 Cost to provide communications services — — 5,169 — — — 5,169 Cost to provide enrollment services — — — — 3,623 — 3,623 Other expenses 31,635 13,122 3,110 4,766 31,540 — 84,174 Intersegment expenses, net 18,168 4,690 610 34,791 (23,823 ) (34,436 ) — Total operating expenses 148,094 71,382 17,818 61,085 61,770 (34,436 ) 325,714 Income (loss) before income taxes 47,504 30,836 (5,321 ) 209,039 (36,302 ) — 245,754 Income tax (expense) benefit (18,052 ) (11,718 ) 2,022 (79,434 ) 19,998 — (87,184 ) Net income (loss) 29,452 19,118 (3,299 ) 129,605 (16,304 ) — 158,570 Net loss (income) attributable to noncontrolling interests — — — — (165 ) — (165 ) Net income (loss) attributable to Nelnet, Inc. $ 29,452 19,118 (3,299 ) 129,605 (16,469 ) — 158,405 Total assets as of September 30, 2016 $ 79,418 190,682 90,361 26,888,950 687,347 (267,147 ) 27,669,611 |
Major Customer
Major Customer | 9 Months Ended |
Sep. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Major Customer | Major Customer The Company earns loan servicing revenue from a servicing contract with the Department that currently is set to expire on June 16, 2019. Revenue earned by the Company's Loan Systems and Servicing operating segment related to this contract was $38.6 million and $40.2 million for the three months ended September 30, 2017 and 2016 , respectively, and $117.4 million and $112.5 million for the nine months ended September 30, 2017 and 2016 , respectively. In April 2016, the Department announced a new contract procurement process for the Department to acquire a single servicing platform to manage all student loans owned by the Department. In May 2016, Nelnet Servicing, a subsidiary of the Company, and Great Lakes submitted a joint response to the procurement as part of a newly created joint venture to respond to the contract solicitation process and to provide services under a new contract in the event that the Department selects it for a contract award. The joint venture operates as a new legal entity called GreatNet. Nelnet Servicing and Great Lakes each own 50 percent of the ownership interests of GreatNet. In addition to Nelnet Servicing, Great Lakes is currently one of four large private sector companies (referred to as Title IV Additional Servicers, or "TIVAS") that has a student loan servicing contract with the Department to provide servicing for loans owned by the Department. On May 19, 2017, the Department announced it had amended the contract procurement process, which required another response by the participants, and on July 7, 2017, GreatNet submitted its response to the Department. On August 1, 2017, the Department announced it was canceling the current procurement process for a single servicing platform and that it intends to develop a new contract procurement proposal. The Department indicated that its new approach is expected to require separate contract acquisitions for database housing, system processing, and customer account servicing. On October 18, 2017, the Company entered into an agreement to purchase 100 percent of the outstanding stock of Great Lakes. See note 14, "Subsequent Events" for additional information on this business acquisition agreement. |
Related Parties Related Parties
Related Parties Related Parties | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties The Company has entered into certain contractual arrangements with related parties as described in note 19 of the notes to consolidated financial statements included in the 2016 Annual Report. The following provides an update for related party transactions that occurred during the first nine months of 2017. Transactions with Union Bank and Trust Company During the three and nine months ended September 30, 2017 , the Company purchased $2.4 million (par value) and $7.3 million (par value), respectively, of consumer loans from Union Bank and Trust Company. The Company's investment in consumer loans is included in "investments and other receivables" in the Company's consolidated balance sheet. Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") David Graff, who currently serves as an independent director on the Company's Board of Directors, is CEO, co-founder, and a director of Hudl. On July 7, 2017, the Company made an additional $10.4 million preferred stock investment in Hudl as part of a significantly larger equity financing by Hudl. Prior to this investment, the Company and Michael Dunlap, the Company's Executive Chairman and a principal shareholder, made separate equity investments in Hudl. The additional preferred stock investment made by the Company in July 2017 slightly increased the Company's direct and indirect equity ownership in Hudl. 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 other receivables" in the Company's consolidated balance sheet. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 . As of September 30, 2017 As of December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (available-for-sale and trading): Student loan and other asset-backed securities $ — 72,427 72,427 — 103,780 103,780 Equity securities 2,875 — 2,875 2,694 — 2,694 Debt securities 111 — 111 119 — 119 Total investments (available-for-sale and trading) 2,986 72,427 75,413 2,813 103,780 106,593 Derivative instruments — 996 996 — 87,531 87,531 Total assets $ 2,986 73,423 76,409 2,813 191,311 194,124 Liabilities: Derivative instruments $ — 30,105 30,105 — 77,826 77,826 Total liabilities $ — 30,105 30,105 — 77,826 77,826 The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of September 30, 2017 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 23,635,887 22,528,845 — — 23,635,887 Cash and cash equivalents 254,391 254,391 254,391 — — Investments (available-for-sale) 75,413 75,413 2,986 72,427 — Notes receivable 16,393 16,393 — 16,393 — Loans receivable 42,006 40,339 — — 42,006 Restricted cash 725,463 725,463 725,463 — — Restricted cash – due to customers 105,299 105,299 105,299 — — Accrued interest receivable 396,827 396,827 — 396,827 — Derivative instruments 996 996 — 996 — Financial liabilities: Bonds and notes payable 22,319,439 22,240,279 — 22,319,439 — Accrued interest payable 47,824 47,824 — 47,824 — Due to customers 105,299 105,299 105,299 — — Derivative instruments 30,105 30,105 — 30,105 — As of December 31, 2016 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 25,653,581 24,903,724 — — 25,653,581 Cash and cash equivalents 69,654 69,654 69,654 — — Investments (available-for-sale and trading) 106,593 106,593 2,813 103,780 — Notes receivable 17,031 17,031 — 17,031 — Restricted cash 980,961 980,961 980,961 — — Restricted cash – due to customers 119,702 119,702 119,702 — — Accrued interest receivable 391,264 391,264 — 391,264 — Derivative instruments 87,531 87,531 — 87,531 — Financial liabilities: Bonds and notes payable 24,220,996 24,668,490 — 24,220,996 — Accrued interest payable 45,677 45,677 — 45,677 — Due to customers 119,702 119,702 119,702 — — Derivative instruments 77,826 77,826 — 77,826 — The methodologies for estimating the fair value of financial assets and liabilities are described in note 20 of the notes to consolidated financial statements included in the 2016 Annual Report. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On October 18, 2017, the Company entered into an agreement to purchase 100 percent of the outstanding stock of Great Lakes for a purchase price of $150.0 million in cash. The transaction is scheduled to close on January 1, 2018, subject to customary closing conditions. On October 25, 2017, the Company completed a remarketing of its Euro Notes which reset the principal amount outstanding on the Euro Notes from €352.7 million to $450.0 million U.S. dollars and reset the interest rate from an interest rate based on a spread to the EURIBOR index to an interest rate based on the 3-month LIBOR index. As a result of the remarketing, the Company terminated its cross-currency interest rate swap associated with the Euro Notes. The pre-tax GAAP income statement impact of this remarketing and swap termination was a non-cash expense of $10.6 million that will be included in “Derivative market value and foreign currency transaction adjustments and derivative settlements, net” on the consolidated statements of income. |
Basis of Financial Reporting -
Basis of Financial Reporting - Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Reporting | Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of September 30, 2017 and for the three and nine months ended September 30, 2017 and 2016 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2016 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results for the year ending December 31, 2017 . The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the " 2016 Annual Report"). |
Consolidation | Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (“VIEs”) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The following entities are VIEs of which the Company has determined that it is the primary beneficiary. 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's education lending subsidiaries 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 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 securitization 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. The Company owns 91.5 percent of the economic rights of Allo Communications LLC ("Allo") and has a disproportional 80 percent of the voting rights related to all operating decisions for Allo's business. Allo management, as current minority members, has the opportunity to earn an additional 11.5 percent of the total ownership interests based on the financial performance of Allo. In addition to the Company’s equity investment, Nelnet, Inc. (the parent) issued a $200.0 million line of credit to Allo on December 30, 2015. On September 30, 2017, the line of credit was increased by $70.0 million to a total of $270.0 million . As of September 30, 2017 , the outstanding balance and accrued interest on the line of credit was $144.5 million and $4.6 million , respectively. Nelnet, Inc.’s maximum exposure to loss as a result of its involvement with Allo is equal to its equity investment and the outstanding balance and accrued interest on the line of credit. The amounts owed by Allo to Nelnet, Inc., including the interest costs incurred by Allo and interest earnings recognized by Nelnet, Inc., are not reflected in the Company’s consolidated balance sheet as they were eliminated in consolidation. All of Allo’s financial activities and related assets and liabilities, excluding the line of credit, are reflected in the Company’s consolidated financial statements. See note 10, "Segment Reporting," for disclosure of Allo's total assets and results of operations (included in the "Communications" operating segment), note 7, "Goodwill," for disclosure of Allo's goodwill, and note 8, “Property and Equipment,” for disclosure of Allo’s fixed assets. Allo's goodwill and property and equipment comprise the majority of its assets. The assets recognized as a result of consolidating Allo are the property of Allo and are not available for any other purpose, other than to Nelnet, Inc. as a secured lender under Allo's line of credit. |
Noncontrolling Interest Disclosure | Noncontrolling Interest Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes Educational Loan Services, Inc. ("Great Lakes") created a joint venture to respond to the initiative announced by the U.S. Department of Education (the "Department") in April 2016 for the procurement of a contract for federal student loan servicing to acquire a single servicing platform to manage all loans owned by the Department. The joint venture operates as a new legal entity called GreatNet Solutions, LLC (“GreatNet”). Nelnet Servicing and Great Lakes each own 50 percent of the ownership interests in GreatNet. See note 11 for additional information on the contract procurement process. During the first and third quarters of 2017, Nelnet Servicing and Great Lakes each contributed $12.6 million and $6.5 million , respectively, to GreatNet and during the first quarter of 2017 GreatNet began to incur certain operating costs. For financial reporting purposes, the balance sheet and operating results of GreatNet are included in the Company’s consolidated financial statements and presented in the Company’s Loan Systems and Servicing operating segment. The proportionate share of membership interest (equity) and net loss of GreatNet that is attributable to Great Lakes is reflected as noncontrolling interests in the consolidated financial statements. On October 18, 2017, the Company entered into an agreement to purchase 100 percent of the outstanding stock of Great Lakes. See note 14, "Subsequent Events" for additional information on this business acquisition agreement. For a description of other entities in which the Company reflects noncontrolling interests in its consolidated financial statements, see note 2 of the notes to consolidated financial statements included in the 2016 Annual Report. |
Student Loan Interest Income | The Company recognizes student loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest 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 loans, which includes an estimate of forecasted payments in excess of contractually required payments. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan. In the third quarter of 2016, the Company revised its policy to correct for an error in its method of applying the interest method used to amortize premiums and deferred origination costs and accrete discounts on its student loan portfolio. Previously, the Company amortized premiums and deferred origination costs and accreted discounts by including in its prepayment assumption forecasted payments in excess of contractually required payments as well as forecasted defaults. The Company has determined that only payments in excess of contractually required payments (excluding forecasted defaults) should be included in the prepayment assumption. Under the Company's revised policy, as of September 30, 2016, the constant prepayment rate used by the Company to amortize/accrete student loan premiums/discounts was decreased. The constant prepayment rates under the Company's revised policy are 5 percent for Stafford loans and 3 percent for Consolidation loans. The constant prepayment rates under the Company's prior policy in effect before this correction were 6 percent and 4 percent , respectively. |
Student Loans Receivable and 24
Student Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Student loans receivable consisted of the following: As of As of September 30, 2017 December 31, 2016 Federally insured loans: Stafford and other $ 4,534,588 5,186,047 Consolidation 17,952,696 19,643,937 Total 22,487,284 24,829,984 Private education loans 226,629 273,659 22,713,913 25,103,643 Loan discount, net of unamortized loan premiums and deferred origination costs (119,572 ) (129,507 ) Non-accretable discount (a) (13,532 ) (18,570 ) Allowance for loan losses – federally insured loans (39,398 ) (37,268 ) Allowance for loan losses – private education loans (12,566 ) (14,574 ) $ 22,528,845 24,903,724 (a) 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. |
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. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 49,708 48,753 51,842 50,498 Provision for loan losses: Federally insured loans 7,000 7,000 11,000 11,000 Private education loans (1,000 ) (1,000 ) (2,000 ) (500 ) Total provision for loan losses 6,000 6,000 9,000 10,500 Charge-offs: Federally insured loans (3,464 ) (3,196 ) (8,870 ) (9,462 ) Private education loans (491 ) (320 ) (861 ) (1,235 ) Total charge-offs (3,955 ) (3,516 ) (9,731 ) (10,697 ) Recoveries - private education loans 161 243 603 769 Purchase of private education loans — 30 — 290 Transfer from repurchase obligation related to private education loans repurchased 50 60 250 210 Balance at end of period $ 51,964 51,570 51,964 $ 51,570 Allocation of the allowance for loan losses: Federally insured loans $ 39,398 37,028 39,398 37,028 Private education loans 12,566 14,542 12,566 14,542 Total allowance for loan losses $ 51,964 51,570 51,964 51,570 |
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 September 30, 2017 As of December 31, 2016 As of September 30, 2016 Federally insured loans: Loans in-school/grace/deferment $ 1,448,172 $ 1,606,468 $ 1,864,323 Loans in forbearance 2,406,346 2,295,367 2,403,504 Loans in repayment status: Loans current 16,534,795 88.7 % 18,125,768 86.6 % 18,445,728 86.8 % Loans delinquent 31-60 days 579,665 3.1 818,976 3.9 825,905 3.9 Loans delinquent 61-90 days 334,085 1.8 487,647 2.3 491,395 2.3 Loans delinquent 91-120 days 255,567 1.4 335,291 1.6 326,020 1.5 Loans delinquent 121-270 days 700,319 3.8 854,432 4.1 835,250 3.9 Loans delinquent 271 days or greater 228,335 1.2 306,035 1.5 350,808 1.6 Total loans in repayment 18,632,766 100.0 % 20,928,149 100.0 % 21,275,106 100.0 % Total federally insured loans $ 22,487,284 $ 24,829,984 $ 25,542,933 Private education loans: Loans in-school/grace/deferment $ 27,188 $ 35,146 $ 51,042 Loans in forbearance 2,904 3,448 1,770 Loans in repayment status: Loans current 190,153 96.8 % 228,612 97.2 % 217,108 97.1 % Loans delinquent 31-60 days 1,200 0.6 1,677 0.7 1,357 0.6 Loans delinquent 61-90 days 1,195 0.6 1,110 0.5 1,228 0.5 Loans delinquent 91 days or greater 3,989 2.0 3,666 1.6 3,927 1.8 Total loans in repayment 196,537 100.0 % 235,065 100.0 % 223,620 100.0 % Total private education loans $ 226,629 $ 273,659 $ 276,432 |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of September 30, 2017 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 20,675,881 0.22% - 6.90% 8/25/21 - 9/25/65 Bonds and notes based on auction 781,276 1.97% - 2.61% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 21,457,157 FFELP warehouse facilities 745,107 1.23% - 1.37% 11/19/19 - 4/27/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 84,881 2.99% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 90,896 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 210,000 2.74% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,526 4.71% 9/15/61 Other borrowings 18,355 3.38% 3/31/23 / 12/15/45 22,626,922 Discount on bonds and notes payable and debt issuance costs (386,643 ) Total $ 22,240,279 As of December 31, 2016 Carrying amount Interest rate range Final maturity Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: Bonds and notes based on indices $ 22,130,063 0.24% - 6.90% 6/25/21 - 9/25/65 Bonds and notes based on auction 998,415 1.61% - 2.28% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 23,128,478 FFELP warehouse facilities 1,677,443 0.63% - 1.09% 9/7/18 - 12/13/19 Variable-rate bonds and notes issued in private education loan asset-backed securitization 112,582 2.60% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 113,378 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit — — 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 50,184 4.37% 9/15/61 Other borrowings 18,355 3.38% 3/31/23 / 12/15/45 25,100,420 Discount on bonds and notes payable and debt issuance costs (431,930 ) Total $ 24,668,490 |
Schedule of Asset-Backed Securitizations | The following table summarizes the asset-backed securitization transactions completed during the first nine months of 2017. NSLT 2017-1 NSLT 2017-2 Total Date securities issued 5/24/17 7/26/17 Total original principal amount $ 535,000 399,390 934,390 Bond discount — (2,002 ) (2,002 ) Issue price $ 535,000 397,388 932,388 Cost of funds 1-month LIBOR plus 0.78% 1-month LIBOR plus 0.77% Final maturity date 6/25/65 9/25/65 |
Schedule of Line of Credit Facilities | As of September 30, 2017 , the Company had three FFELP warehouse facilities as summarized below. NFSLW-I (a) NHELP-II NHELP-III (b) Total Maximum financing amount $ 500,000 500,000 200,000 1,200,000 Amount outstanding 307,425 288,969 148,713 745,107 Amount available $ 192,575 211,031 51,287 454,893 Expiration of liquidity provisions September 20, 2019 December 15, 2017 April 27, 2018 Final maturity date November 19, 2019 December 13, 2019 April 27, 2020 Maximum advance rates 92.0 - 98.0% 85.0 - 95.0% 92.2 - 95.0% Minimum advance rates 84.0 - 90.0% 85.0 - 95.0% 92.2 - 95.0% Advanced as equity support $ 4,747 20,531 3,163 28,441 (a) On May 25, 2017 and August 18, 2017, the Company decreased the maximum financing amount for this warehouse facility by $175.0 million and $200.0 million , respectively. As of September 30, 2017 , the maximum financing amount for this warehouse facility was $500.0 million , as reflected in this table. On September 22, 2017, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to September 20, 2019 and changed the final maturity date to November 19, 2019. (b) On April 3, 2017, the Company entered into a letter agreement for this warehouse facility to decrease the maximum financing amount from $750.0 million to $600.0 million . On April 28, 2017, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to April 27, 2018 and changed the final maturity date to April 27, 2020. On May 5, 2017, May 25, 2017, and June 2, 2017, the Company decreased the maximum financing amount for this warehouse facility by $200.0 million , $100.0 million , and $100.0 million , respectively. As of September 30, 2017, the maximum financing amount for this warehouse facility was $200.0 million , as reflected in this table. |
Schedule of 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 from debt repurchases" on the Company's consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Three months ended September 30, 2017 September 30, 2016 Asset-backed securities $ 14,702 14,586 116 10,965 8,805 2,160 Nine months ended September 30, 2017 September 30, 2016 Unsecured debt - Hybrid Securities (a) $ 29,658 25,241 4,417 — — — Asset-backed securities 18,790 17,670 1,120 11,362 9,102 2,260 $ 48,448 42,911 5,537 11,362 9,102 2,260 (a) During the three months ended March 31, 2017, the Company initiated a cash tender offer to purchase any and all of its outstanding Hybrid Securities, including a related consent solicitation to effect certain amendments to the indenture governing the notes to eliminate a provision requiring a minimum principal amount of the notes to remain outstanding after a partial redemption. After the completion of this tender offer, the Company has $20.5 million of Hybrid Securities that remain outstanding. In addition, the amendments described above have been made to the indenture. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps - 1:3 Basis swaps | The following table summarizes the Company’s outstanding 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"). As of September 30, As of December 31, 2017 2016 Maturity Notional amount Notional amount 2018 $ 4,000,000 $ — 2019 3,000,000 — 2024 250,000 — 2026 1,150,000 1,150,000 2027 375,000 — 2028 325,000 325,000 2029 100,000 — 2031 300,000 300,000 $ 9,500,000 $ 1,775,000 |
Interest Rate Swaps - Floor Income Hedges | The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of September 30, 2017 As of December 31, 2016 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2017 $ — — % $ 750,000 0.99 % 2018 1,350,000 1.07 1,350,000 1.07 2019 3,250,000 0.97 3,250,000 0.97 2020 1,500,000 1.01 1,500,000 1.01 2025 100,000 2.32 100,000 2.32 $ 6,200,000 1.02 % $ 6,950,000 1.02 % (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 as of September 30, 2017 and December 31, 2016 that are used to effectively convert the variable interest rate on a designated notional amount with respect to 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 Remeasurement of Euro Bonds and Foreign Exchange Contracts on the Statement of Income | The following table shows the unrealized 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 instrument. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Re-measurement of Euro Notes $ (13,683 ) (4,831 ) (45,635 ) (13,543 ) Change in fair value of cross-currency interest rate swap 16,257 5,501 44,831 26,194 Total impact to consolidated statements of income - income (expense) (a) $ 2,574 670 (804 ) 12,651 (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency transaction 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 in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of September 30, December 31, September 30, December 31, 1:3 basis swaps $ — — — 2,624 Interest rate swaps - floor income hedges — 81,159 — 256 Interest rate swap option - floor income hedge 765 2,977 — — Interest rate caps 231 1,152 — — Interest rate swaps - hybrid debt hedges — — 7,332 7,341 Cross-currency interest rate swap — — 22,773 67,605 Other — 2,243 — — Total $ 996 87,531 30,105 77,826 |
Offsetting Assets and Liabilities | 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 Net asset Balance as of September 30, 2017 $ 996 — — 996 Balance as of December 31, 2016 87,531 (2,880 ) 475 85,126 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 Net liability Balance as of $ (30,105 ) — 8,470 (21,635 ) Balance as of (77,826 ) 2,880 7,292 (67,654 ) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Settlements: 1:3 basis swaps $ (2,172 ) 523 (1,836 ) 938 Interest rate swaps - floor income hedges 3,883 (5,157 ) 5,877 (15,241 ) Interest rate swaps - hybrid debt hedges (191 ) (233 ) (593 ) (696 ) Cross-currency interest rate swap (2,093 ) (1,394 ) (5,762 ) (3,293 ) Total settlements - (expense) income (573 ) (6,261 ) (2,314 ) (18,292 ) Change in fair value: 1:3 basis swaps 5,916 140 (5,499 ) 323 Interest rate swaps - floor income hedges (185 ) 42,073 (13,670 ) (17,913 ) Interest rate swap option - floor income hedge (500 ) (269 ) (2,212 ) (2,541 ) Interest rate caps (103 ) (68 ) (936 ) (1,283 ) Interest rate swaps - hybrid debt hedges 44 13 10 (4,000 ) Cross-currency interest rate swap 16,257 5,501 44,831 26,194 Other — (297 ) (143 ) (2,336 ) Total change in fair value - income (expense) 21,429 47,093 22,381 (1,556 ) Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income (13,683 ) (4,831 ) (45,635 ) (13,543 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 7,173 36,001 (25,568 ) (33,391 ) |
Investments and Other Receiva27
Investments and Other Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Summary Investment Holdings | A summary of the Company's investments and other receivables follows: As of September 30, 2017 As of December 31, 2016 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) $ 68,010 4,768 (240 ) 72,538 98,260 6,280 (641 ) 103,899 Equity securities 756 2,140 (21 ) 2,875 720 1,930 (61 ) 2,589 Total available-for-sale investments $ 68,766 6,908 (261 ) 75,413 98,980 8,210 (702 ) 106,488 Trading investments - equity securities — 105 Total available-for-sale and trading investments 75,413 106,593 Other Investments and Other Receivables (not measured at fair value): Venture capital and funds 84,903 69,789 Notes and loans receivable 56,732 17,031 Real estate 49,567 48,379 Tax liens and affordable housing 9,921 12,352 Total investments and other receivables $ 276,536 254,144 (a) As of September 30, 2017 , the aggregate fair value of available-for-sale investments with unrealized losses was $2.7 million , of which $0.4 million had been in a continuous unrealized loss position for greater than 12 months. Because the Company currently has the intent and ability to retain these investments for an anticipated recovery in fair value, as of September 30, 2017 , 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 September 30, 2017 , the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years. |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: Weighted average remaining useful life as of September 30, 2017 (months) As of September 30, 2017 As of December 31, 2016 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $11,704 and $8,548, respectively) 162 $ 25,179 28,335 Trade names (net of accumulated amortization of $2,287 and $1,653, respectively) 180 9,285 9,919 Computer software (net of accumulated amortization of $8,929 and $5,675, respectively) 17 6,042 9,296 Covenants not to compete (net of accumulated amortization of $118 and $91, respectively) 80 236 263 Total - amortizable intangible assets, net 144 $ 40,742 47,813 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2017 , the Company estimates it will record amortization expense as follows: 2017 (October 1 - December 31) $ 2,315 2018 8,605 2019 5,147 2020 4,231 2021 3,480 2022 and thereafter 16,964 $ 40,742 |
Goodwil (Tables)
Goodwil (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The carrying amount of goodwill as of December 31, 2016 and September 30, 2017 by reportable operating segment was as follows: Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management Corporate and Other Activities Total Goodwill balance $ 8,596 67,168 21,112 41,883 8,553 147,312 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of September 30, 2017 As of December 31, 2016 Useful life Non-communications: Computer equipment and software 1-5 years $ 108,430 97,317 Building and building improvements 5-39 years 25,283 13,363 Office furniture and equipment 3-7 years 14,357 12,344 Leasehold improvements 5-20 years 6,496 3,579 Transportation equipment 4-10 years 3,813 3,809 Land — 2,605 1,682 Construction in progress — 14,025 16,346 175,009 148,440 Accumulated depreciation - non-communications 104,430 91,285 Non-communications, net property and equipment 70,579 57,155 Communications: Network plant and fiber 5-15 years 83,870 40,844 Customer located property 5-10 years 10,987 5,138 Central office 5-15 years 8,476 6,448 Transportation equipment 4-10 years 5,011 2,966 Computer equipment and software 1-5 years 3,318 2,026 Other 1-39 years 2,285 1,268 Land — 70 70 Construction in progress — 35,709 12,537 149,726 71,297 Accumulated depreciation - communications 11,864 4,666 Communications, net property and equipment 137,862 66,631 Total property and equipment, net $ 208,441 123,786 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Three months ended September 30, 2017 2016 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 45,850 453 46,303 83,419 875 84,294 Denominator: Weighted-average common shares outstanding - basic and diluted 41,146,424 406,892 41,553,316 42,199,580 442,633 42,642,213 Earnings per share - basic and diluted $ 1.11 1.11 1.11 1.98 1.98 1.98 Nine months ended September 30, 2017 2016 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 123,816 1,249 125,065 156,749 1,656 158,405 Denominator: Weighted-average common shares outstanding - basic and diluted 41,634,578 419,954 42,054,532 42,340,867 447,266 42,788,133 Earnings per share - basic and diluted $ 2.97 2.97 2.97 3.70 3.70 3.70 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | See note 14 of the notes to consolidated financial statements included in the 2016 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended September 30, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 147 5 1 194,968 3,903 (2,139 ) 196,884 Interest expense — — 1,551 121,074 1,165 (2,139 ) 121,650 Net interest income 147 5 (1,550 ) 73,894 2,738 — 75,234 Less provision for loan losses — — — 6,000 — — 6,000 Net interest income (loss) after provision for loan losses 147 5 (1,550 ) 67,894 2,738 — 69,234 Other income: Loan systems and servicing revenue 55,950 — — — — — 55,950 Intersegment servicing revenue 10,563 — — — — (10,563 ) — Tuition payment processing, school information, and campus commerce revenue — 35,450 — — — — 35,450 Communications revenue — — 6,751 — — — 6,751 Other income — — — 2,753 17,003 — 19,756 Gain from debt repurchases — — — 116 — — 116 Derivative settlements, net — — — (382 ) (191 ) — (573 ) Derivative market value and foreign currency transaction adjustments, net — — — 7,702 44 — 7,746 Total other income 66,513 35,450 6,751 10,189 16,856 (10,563 ) 125,196 Operating expenses: Salaries and benefits 38,435 17,432 4,099 392 13,834 — 74,193 Depreciation and amortization 549 2,316 3,145 — 4,040 — 10,051 Loan servicing fees — — — 7,939 — — 7,939 Cost to provide communications services — — 2,632 — — — 2,632 Other expenses 10,317 4,224 2,278 1,451 12,248 — 30,518 Intersegment expenses, net 7,774 2,219 470 10,659 (10,559 ) (10,563 ) — Total operating expenses 57,075 26,191 12,624 20,441 19,563 (10,563 ) 125,333 Income (loss) before income taxes 9,585 9,264 (7,423 ) 57,642 31 — 69,097 Income tax (expense) benefit (4,937 ) (3,520 ) 2,821 (21,904 ) 1,978 — (25,562 ) Net income (loss) 4,648 5,744 (4,602 ) 35,738 2,009 — 43,535 Net loss (income) attributable to noncontrolling interests 3,408 — — — (640 ) — 2,768 Net income (loss) attributable to Nelnet, Inc. $ 8,056 5,744 (4,602 ) 35,738 1,369 — 46,303 Total assets as of September 30, 2017 $ 98,555 208,290 179,206 23,724,413 863,700 (305,454 ) 24,768,710 Three months ended September 30, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 37 2 — 194,701 2,370 (930 ) 196,181 Interest expense — — 318 95,383 1,615 (930 ) 96,386 Net interest income 37 2 (318 ) 99,318 755 — 99,795 Less provision for loan losses — — — 6,000 — — 6,000 Net interest income (loss) after provision for loan losses 37 2 (318 ) 93,318 755 — 93,795 Other income: Loan systems and servicing revenue 54,350 — — — — — 54,350 Intersegment servicing revenue 11,021 — — — — (11,021 ) — Tuition payment processing, school information, and campus commerce revenue — 33,071 — — — — 33,071 Communications revenue — — 4,343 — — — 4,343 Enrollment services revenue — — — — — — — Other income — — — 4,265 10,886 — 15,150 Gain from debt repurchases — — — 2,160 — — 2,160 Derivative settlements, net — — — (6,028 ) (233 ) — (6,261 ) Derivative market value and foreign currency transaction adjustments, net — — — 42,546 (284 ) — 42,262 Total other income 65,371 33,071 4,343 42,943 10,369 (11,021 ) 145,075 Operating expenses: . Salaries and benefits 32,505 15,979 2,325 486 12,448 — 63,743 Depreciation and amortization 557 2,929 1,630 — 3,878 — 8,994 Loan servicing fees — — — 5,880 — — 5,880 Cost to provide communications services — — 1,784 — — — 1,784 Cost to provide enrollment services — — — — — — — Other expenses 8,784 4,149 1,545 1,769 10,143 — 26,391 Intersegment expenses, net 5,825 1,616 279 11,146 (7,845 ) (11,021 ) — Total operating expenses 47,671 24,673 7,563 19,281 18,624 (11,021 ) 106,792 Income (loss) before income taxes 17,737 8,400 (3,538 ) 116,980 (7,500 ) — 132,078 Income tax (expense) benefit (6,740 ) (3,192 ) 1,344 (44,571 ) 5,443 — (47,715 ) Net income (loss) 10,997 5,208 (2,194 ) 72,409 (2,057 ) — 84,363 Net loss (income) attributable to noncontrolling interests — — — — (69 ) — (69 ) Net income (loss) attributable to Nelnet, Inc. $ 10,997 5,208 (2,194 ) 72,409 (2,126 ) — 84,294 Total assets as of September 30, 2016 $ 79,418 190,682 90,361 26,888,950 687,347 (267,147 ) 27,669,611 Nine months ended September 30, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 361 10 2 568,661 10,026 (5,274 ) 573,786 Interest expense — — 3,367 340,898 2,794 (5,274 ) 341,787 Net interest income 361 10 (3,365 ) 227,763 7,232 — 231,999 Less provision for loan losses — — — 9,000 — — 9,000 Net interest income (loss) after provision for loan losses 361 10 (3,365 ) 218,763 7,232 — 222,999 Other income: Loan systems and servicing revenue 167,079 — — — — — 167,079 Intersegment servicing revenue 30,839 — — — — (30,839 ) — Tuition payment processing, school information, and campus commerce revenue — 113,293 — — — — 113,293 Communications revenue — — 17,577 — — — 17,577 Other income — — — 9,152 35,722 — 44,874 Gain from debt repurchases — — — 1,097 4,440 — 5,537 Derivative settlements, net — — — (1,721 ) (593 ) — (2,314 ) Derivative market value and foreign currency transaction adjustments, net — — — (23,121 ) (133 ) — (23,254 ) Total other income 197,918 113,293 17,577 (14,593 ) 39,436 (30,839 ) 322,792 Operating expenses: Salaries and benefits 116,932 50,986 10,489 1,156 41,121 — 220,684 Depreciation and amortization 1,644 7,053 7,880 — 11,109 — 27,687 Loan servicing fees — — — 19,584 — — 19,584 Cost to provide communications services — — 6,789 — — — 6,789 Other expenses 28,333 14,072 5,422 4,269 32,497 — 84,593 Intersegment expenses, net 23,496 6,430 1,472 31,114 (31,673 ) (30,839 ) — Total operating expenses 170,405 78,541 32,052 56,123 53,054 (30,839 ) 359,337 Income (loss) before income taxes 27,874 34,762 (17,840 ) 148,047 (6,386 ) — 186,454 Income tax (expense) benefit (14,410 ) (13,210 ) 6,779 (56,258 ) 6,749 — (70,349 ) Net income (loss) 13,464 21,552 (11,061 ) 91,789 363 — 116,105 Net loss (income) attributable to noncontrolling interests 10,050 — — — (1,090 ) — 8,960 Net income (loss) attributable to Nelnet, Inc. $ 23,514 21,552 (11,061 ) 91,789 (727 ) — 125,065 Total assets as of September 30, 2017 $ 98,555 208,290 179,206 23,724,413 863,700 (305,454 ) 24,768,710 Nine months ended September 30, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 80 7 1 570,390 6,527 (2,556 ) 574,449 Interest expense — — 671 278,029 4,702 (2,556 ) 280,847 Net interest income 80 7 (670 ) 292,361 1,825 — 293,602 Less provision for loan losses — — — 10,500 — — 10,500 Net interest income (loss) after provision for loan losses 80 7 (670 ) 281,861 1,825 — 283,102 Other income: Loan systems and servicing revenue 161,082 — — — — — 161,082 Intersegment servicing revenue 34,436 — — — — (34,436 ) — Tuition payment processing, school information, and campus commerce revenue — 102,211 — — — — 102,211 Communications revenue — — 13,167 — — — 13,167 Enrollment services revenue — — — — 4,326 — 4,326 Other income — — — 12,362 26,349 — 38,711 Gain from debt repurchases — — — 2,260 — — 2,260 Derivative settlements, net — — — (17,596 ) (696 ) — (18,292 ) Derivative market value and foreign currency transaction adjustments, net — — — (8,763 ) (6,336 ) — (15,099 ) Total other income 195,518 102,211 13,167 (11,737 ) 23,643 (34,436 ) 288,366 Operating expenses: Salaries and benefits 96,851 45,859 4,792 1,504 38,902 — 187,907 Depreciation and amortization 1,440 7,711 4,137 — 11,528 — 24,817 Loan servicing fees — — — 20,024 — — 20,024 Cost to provide communications services — — 5,169 — — — 5,169 Cost to provide enrollment services — — — — 3,623 — 3,623 Other expenses 31,635 13,122 3,110 4,766 31,540 — 84,174 Intersegment expenses, net 18,168 4,690 610 34,791 (23,823 ) (34,436 ) — Total operating expenses 148,094 71,382 17,818 61,085 61,770 (34,436 ) 325,714 Income (loss) before income taxes 47,504 30,836 (5,321 ) 209,039 (36,302 ) — 245,754 Income tax (expense) benefit (18,052 ) (11,718 ) 2,022 (79,434 ) 19,998 — (87,184 ) Net income (loss) 29,452 19,118 (3,299 ) 129,605 (16,304 ) — 158,570 Net loss (income) attributable to noncontrolling interests — — — — (165 ) — (165 ) Net income (loss) attributable to Nelnet, Inc. $ 29,452 19,118 (3,299 ) 129,605 (16,469 ) — 158,405 Total assets as of September 30, 2016 $ 79,418 190,682 90,361 26,888,950 687,347 (267,147 ) 27,669,611 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 nine months ended September 30, 2017 . As of September 30, 2017 As of December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (available-for-sale and trading): Student loan and other asset-backed securities $ — 72,427 72,427 — 103,780 103,780 Equity securities 2,875 — 2,875 2,694 — 2,694 Debt securities 111 — 111 119 — 119 Total investments (available-for-sale and trading) 2,986 72,427 75,413 2,813 103,780 106,593 Derivative instruments — 996 996 — 87,531 87,531 Total assets $ 2,986 73,423 76,409 2,813 191,311 194,124 Liabilities: Derivative instruments $ — 30,105 30,105 — 77,826 77,826 Total liabilities $ — 30,105 30,105 — 77,826 77,826 |
Fair Value, by Balance Sheet Grouping | The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of September 30, 2017 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 23,635,887 22,528,845 — — 23,635,887 Cash and cash equivalents 254,391 254,391 254,391 — — Investments (available-for-sale) 75,413 75,413 2,986 72,427 — Notes receivable 16,393 16,393 — 16,393 — Loans receivable 42,006 40,339 — — 42,006 Restricted cash 725,463 725,463 725,463 — — Restricted cash – due to customers 105,299 105,299 105,299 — — Accrued interest receivable 396,827 396,827 — 396,827 — Derivative instruments 996 996 — 996 — Financial liabilities: Bonds and notes payable 22,319,439 22,240,279 — 22,319,439 — Accrued interest payable 47,824 47,824 — 47,824 — Due to customers 105,299 105,299 105,299 — — Derivative instruments 30,105 30,105 — 30,105 — As of December 31, 2016 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Student loans receivable $ 25,653,581 24,903,724 — — 25,653,581 Cash and cash equivalents 69,654 69,654 69,654 — — Investments (available-for-sale and trading) 106,593 106,593 2,813 103,780 — Notes receivable 17,031 17,031 — 17,031 — Restricted cash 980,961 980,961 980,961 — — Restricted cash – due to customers 119,702 119,702 119,702 — — Accrued interest receivable 391,264 391,264 — 391,264 — Derivative instruments 87,531 87,531 — 87,531 — Financial liabilities: Bonds and notes payable 24,220,996 24,668,490 — 24,220,996 — Accrued interest payable 45,677 45,677 — 45,677 — Due to customers 119,702 119,702 119,702 — — Derivative instruments 77,826 77,826 — 77,826 — |
Basis of Financial Reporting 34
Basis of Financial Reporting - Noncontrolling Interest (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2017 | Oct. 18, 2017 | Dec. 31, 2016 | Dec. 30, 2015 |
Noncontrolling Interest [Line Items] | |||||||
Accrued interest payable | $ 47,824,000 | $ 47,824,000 | $ 47,824,000 | $ 45,677,000 | |||
Allo Communications [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Percent ownership in VIE | 91.50% | ||||||
Percent of operating decision voting power | 80.00% | ||||||
Potential additional percent earned by VIE management | 11.50% | ||||||
GreatNet, LLC [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontolling interest, parent ownership percentage | 50.00% | 50.00% | 50.00% | ||||
Contribution to non-controlling interest | $ 6,500,000 | $ 12,600,000 | |||||
Line of Credit [Member] | Allo Communications [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Line of credit issued to VIE | $ 270,000,000 | 270,000,000 | $ 270,000,000 | $ 200,000,000 | |||
Increase to line of credit maximum borrowing capacity | 70,000,000 | ||||||
VIE line of credit amount outstanding | 144,500,000 | 144,500,000 | 144,500,000 | ||||
Accrued interest payable | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 | ||||
Subsequent Event [Member] | Great Lakes Higher Education Corporation [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Percent of outstanding stock acquired | 100.00% |
Student Loans Receivable and 35
Student Loans Receivable and Allowance for Loan Losses - Student Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | $ 22,713,913 | $ 25,103,643 | ||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (119,572) | (129,507) | ||||
Allowance for loan losses | (51,964) | $ (49,708) | (51,842) | $ (51,570) | $ (48,753) | $ (50,498) |
Student loans receivable | 22,528,845 | 24,903,724 | ||||
Non-accretable discount [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (13,532) | (18,570) | ||||
Consumer Portfolio Segment, Federally Insured [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 22,487,284 | 24,829,984 | ||||
Allowance for loan losses | (39,398) | (37,268) | (37,028) | |||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Stafford And Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 4,534,588 | 5,186,047 | ||||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Consolidation Loan [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 17,952,696 | 19,643,937 | ||||
Consumer Portfolio Segment, Private Education Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 226,629 | 273,659 | ||||
Allowance for loan losses | $ (12,566) | $ (14,574) | $ (14,542) |
Student Loans Receivable and 36
Student Loans Receivable and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Sep. 29, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | $ (119,572) | $ (119,572) | $ (129,507) | |||
Loan interest | $ 191,755 | $ 193,721 | $ 562,451 | $ 567,775 | ||
Restatement Adjustment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | 8,200 | $ 8,200 | ||||
Loan interest | $ 8,200 | |||||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Stafford And Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Constant prepayment rate | 5.00% | 5.00% | 6.00% | |||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Consolidation Loan [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Constant prepayment rate | 3.00% | 3.00% | 4.00% |
Student Loans Receivable and 37
Student Loans Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses - balance | $ 49,708 | $ 48,753 | $ 51,842 | $ 50,498 |
Less provision for loan losses | (6,000) | (6,000) | (9,000) | (10,500) |
Charge-offs | (3,955) | (3,516) | (9,731) | (10,697) |
Allowance for loan losses - balance | 51,964 | 51,570 | 51,964 | 51,570 |
Consumer Portfolio Segment, Federally Insured [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses - balance | 37,268 | |||
Less provision for loan losses | (7,000) | (7,000) | (11,000) | (11,000) |
Charge-offs | (3,464) | (3,196) | (8,870) | (9,462) |
Allowance for loan losses - balance | 39,398 | 37,028 | 39,398 | 37,028 |
Consumer Portfolio Segment, Private Education Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Allowance for loan losses - balance | 14,574 | |||
Less provision for loan losses | (1,000) | (1,000) | (2,000) | (500) |
Charge-offs | (491) | (320) | (861) | (1,235) |
Recoveries - private education loans | 161 | 243 | 603 | 769 |
Purchase of private education loans | 0 | 30 | 0 | 290 |
Transfer from repurchase obligation related to private education loans repurchased | 50 | 60 | 250 | 210 |
Allowance for loan losses - balance | $ 12,566 | $ 14,542 | $ 12,566 | $ 14,542 |
Student Loans Receivable and 38
Student Loans Receivable and Allowance for Loan Losses - Student Loan Status and Delinquency (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Student loans receivable, gross | $ 22,713,913 | $ 25,103,643 | |
Consumer Portfolio Segment, Federally Insured [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Student loans receivable, gross | 22,487,284 | 24,829,984 | |
Consumer Portfolio Segment, Federally Insured [Member] | Federally insured loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 1,448,172 | 1,606,468 | $ 1,864,323 |
Loans in forbearance | 2,406,346 | 2,295,367 | 2,403,504 |
Student loans receivable, gross | 22,487,284 | 24,829,984 | 25,542,933 |
Loans in repayment status: | |||
Loans current | $ 16,534,795 | $ 18,125,768 | $ 18,445,728 |
Loans current, percentage | 88.70% | 86.60% | 86.80% |
Total loans in repayment | $ 18,632,766 | $ 20,928,149 | $ 21,275,106 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 579,665 | $ 818,976 | $ 825,905 |
Loans past due, percentage | 3.10% | 3.90% | 3.90% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 334,085 | $ 487,647 | $ 491,395 |
Loans past due, percentage | 1.80% | 2.30% | 2.30% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 91-120 days past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 255,567 | $ 335,291 | $ 326,020 |
Loans past due, percentage | 1.40% | 1.60% | 1.50% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 121-270 days past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 700,319 | $ 854,432 | $ 835,250 |
Loans past due, percentage | 3.80% | 4.10% | 3.90% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 271 days or greater past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 228,335 | $ 306,035 | $ 350,808 |
Loans past due, percentage | 1.20% | 1.50% | 1.60% |
Consumer Portfolio Segment, Private Education Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Student loans receivable, gross | $ 226,629 | $ 273,659 | |
Consumer Portfolio Segment, Private Education Loans [Member] | Private education loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 27,188 | 35,146 | $ 51,042 |
Loans in forbearance | 2,904 | 3,448 | 1,770 |
Student loans receivable, gross | 226,629 | 273,659 | 276,432 |
Loans in repayment status: | |||
Loans current | $ 190,153 | $ 228,612 | $ 217,108 |
Loans current, percentage | 96.80% | 97.20% | 97.10% |
Total loans in repayment | $ 196,537 | $ 235,065 | $ 223,620 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] [Member] | Private education loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 1,200 | $ 1,677 | $ 1,357 |
Loans past due, percentage | 0.60% | 0.70% | 0.60% |
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private education loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 1,195 | $ 1,110 | $ 1,228 |
Loans past due, percentage | 0.60% | 0.50% | 0.50% |
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, Equal to Greater than 91 Days Past Due [Member] | Private education loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 3,989 | $ 3,666 | $ 3,927 |
Loans past due, percentage | 2.00% | 1.60% | 1.80% |
- Outstanding Debt Obligations
- Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 22,240,279 | $ 24,668,490 |
Discount on bonds and notes payable and debt issuance costs | (386,643) | (431,930) |
Variable-rate bonds and notes [Member] | Private education [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 112,582 | |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 745,107 | $ 1,677,443 |
Unsecured line of credit | $ 745,107 | |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.23% | 0.63% |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.37% | 1.09% |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 0 | |
Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.74% | 0.00% |
Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.74% | 0.00% |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,526 | $ 50,184 |
Junior Subordinated Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 4.709% | 4.373% |
Junior Subordinated Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 4.709% | 4.373% |
Other borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 18,355 | $ 18,355 |
Other borrowings [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.38% | 3.38% |
Other borrowings [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.38% | 3.38% |
Bonds and notes payable, gross [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 22,626,922 | $ 25,100,420 |
Federally insured [Member] | Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,675,881 | $ 22,130,063 |
Federally insured [Member] | Bonds and notes based on indices [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 0.22% | 0.24% |
Federally insured [Member] | Bonds and notes based on indices [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 6.90% | 6.90% |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 781,276 | $ 998,415 |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.97% | 1.61% |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.61% | 2.28% |
Federally insured [Member] | Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 21,457,157 | $ 23,128,478 |
Private education [Member] | Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 84,881 | |
Private education [Member] | Variable-rate bonds and notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.99% | 2.60% |
Private education [Member] | Variable-rate bonds and notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.99% | 2.60% |
Private education [Member] | fixed rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 90,896 | $ 113,378 |
Private education [Member] | fixed rate bonds and notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.60% | 3.60% |
Private education [Member] | fixed rate bonds and notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.35% | 5.35% |
Bonds and Notes Payable - Sched
Bonds and Notes Payable - Schedule of Asset-Backed Securitizations (Details) - Secured Debt [Member] - Asset Backed Securitization [Member] - USD ($) $ in Thousands | Jul. 26, 2017 | May 24, 2017 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Total original principal amount | $ 399,390 | $ 535,000 | $ 934,390 |
Bond discount | 2,002 | 2,002 | |
Issue price | $ 397,388 | $ 535,000 | $ 932,388 |
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate on asset backed security | 0.77% | 0.78% |
Bonds and Notes Payable - Outst
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - USD ($) | Sep. 30, 2017 | Aug. 18, 2017 | Jun. 02, 2017 | May 25, 2017 | May 05, 2017 | Apr. 03, 2017 | Apr. 02, 2017 |
Unsecured Line of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum financing amount | $ 350,000,000 | ||||||
Amount outstanding | 210,000,000 | ||||||
Amount available | 140,000,000 | ||||||
FFELP Warehouse Total [Member] | Warehouse facilities [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum financing amount | 1,200,000,000 | ||||||
Amount outstanding | 745,107,000 | ||||||
Amount available | 454,893,000 | ||||||
Advanced as equity support | 28,441,000 | ||||||
FFELP Warehouse Total [Member] | Warehouse facilities [Member] | NHELP-III Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum financing amount | 200,000,000 | $ 600,000,000 | $ 750,000,000 | ||||
Amount outstanding | 148,713,000 | ||||||
Amount available | 51,287,000 | ||||||
Advanced as equity support | 3,163,000 | ||||||
Decrease to maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | $ 200,000,000 | ||||
FFELP Warehouse Total [Member] | Warehouse facilities [Member] | NFSLW-I Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum financing amount | 500,000,000 | ||||||
Amount outstanding | 307,425,000 | ||||||
Amount available | 192,575,000 | ||||||
Advanced as equity support | 4,747,000 | ||||||
Decrease to maximum borrowing capacity | $ 200,000,000 | $ 175,000,000 | |||||
FFELP Warehouse Total [Member] | Warehouse facilities [Member] | NHELP-II Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum financing amount | 500,000,000 | ||||||
Amount outstanding | 288,969,000 | ||||||
Amount available | 211,031,000 | ||||||
Advanced as equity support | $ 20,531,000 | ||||||
FFELP Warehouse Total [Member] | Minimum [Member] | Warehouse facilities [Member] | NHELP-III Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 92.20% | ||||||
Maximum advance rates | 92.20% | ||||||
FFELP Warehouse Total [Member] | Minimum [Member] | Warehouse facilities [Member] | NFSLW-I Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 84.00% | ||||||
Maximum advance rates | 92.00% | ||||||
FFELP Warehouse Total [Member] | Minimum [Member] | Warehouse facilities [Member] | NHELP-II Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 85.00% | ||||||
Maximum advance rates | 85.00% | ||||||
FFELP Warehouse Total [Member] | Maximum [Member] | Warehouse facilities [Member] | NHELP-III Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 95.00% | ||||||
Maximum advance rates | 95.00% | ||||||
FFELP Warehouse Total [Member] | Maximum [Member] | Warehouse facilities [Member] | NFSLW-I Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 90.00% | ||||||
Maximum advance rates | 98.00% | ||||||
FFELP Warehouse Total [Member] | Maximum [Member] | Warehouse facilities [Member] | NHELP-II Warehouse [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum advance rates | 95.00% | ||||||
Maximum advance rates | 95.00% |
Bonds and Notes Payable - Sch42
Bonds and Notes Payable - Schedule of Debt Repurchases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Extinguishment of Debt [Line Items] | |||||
Par value | $ 48,448 | $ 11,362 | |||
Purchase price | 42,911 | 9,102 | |||
Gain | 5,537 | 2,260 | |||
Debt outstanding after extinguishment | $ 22,240,279 | 22,240,279 | $ 24,668,490 | ||
Junior Subordinated Debt [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Par value | 29,658 | 0 | |||
Purchase price | 25,241 | 0 | |||
Gain | 4,417 | 0 | |||
Debt outstanding after extinguishment | 20,526 | 20,526 | $ 50,184 | ||
Asset-backed Securities [Member] | |||||
Extinguishment of Debt [Line Items] | |||||
Par value | 14,702 | $ 10,965 | 18,790 | 11,362 | |
Purchase price | 14,586 | 8,805 | 17,670 | 9,102 | |
Gain | $ 116 | $ 2,160 | $ 1,120 | $ 2,260 |
Derivative Financial Instrume43
Derivative Financial Instruments - Basis Swap (Details) - 1:3 basis swaps [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional amount | $ 9,500,000 | $ 1,775,000 |
Maturity 2,018 | ||
Derivative [Line Items] | ||
Notional amount | 4,000,000 | |
Maturity 2,019 | ||
Derivative [Line Items] | ||
Notional amount | 3,000,000 | |
Maturity 2,024 | ||
Derivative [Line Items] | ||
Notional amount | 250,000 | |
Maturity 2,026 | ||
Derivative [Line Items] | ||
Notional amount | 1,150,000 | 1,150,000 |
Maturity 2,027 | ||
Derivative [Line Items] | ||
Notional amount | 375,000 | |
Maturity 2,028 | ||
Derivative [Line Items] | ||
Notional amount | 325,000 | 325,000 |
Maturity 2,029 | ||
Derivative [Line Items] | ||
Notional amount | 100,000 | |
Maturity 2,031 | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000 | $ 300,000 |
- Derivative Financial Instrume
- Derivative Financial Instruments Outstanding (Details) | Aug. 20, 2014USD ($) | Jun. 30, 2015USD ($)contract | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Derivative [Line Items] | ||||||
Payments to enter into derivative instruments | $ 929,000 | $ 0 | ||||
Bonds and notes payable | $ 22,240,279,000 | $ 24,668,490,000 | ||||
1:3 basis swaps [Member] | ||||||
Derivative [Line Items] | ||||||
Basis point spread | 0.134% | 0.101% | ||||
Notional amount | $ 9,500,000,000 | $ 1,775,000,000 | ||||
Interest Rate Cap [Member] | ||||||
Derivative [Line Items] | ||||||
Payments to enter into derivative instruments | $ 2,900,000 | |||||
Notional amount | $ 275,000,000 | |||||
Number of interest rate cap contracts purchased | contract | 2 | |||||
Proceeds (payments) to terminate and or amend derivative instruments | $ 913,000 | |||||
Swaption [Member] | ||||||
Derivative [Line Items] | ||||||
Payments to enter into derivative instruments | $ 9,100,000 | |||||
Notional amount | $ 250,000,000 | |||||
Fixed interest rate of swap option | 3.30% | |||||
Junior Subordinated Debt [Member] | ||||||
Derivative [Line Items] | ||||||
Bonds and notes payable | $ 20,526,000 | 50,184,000 | ||||
Junior Subordinated Debt [Member] | Interest Rate Swap [Member] | Unsecured debt hedges [Member] | Maturity 2036 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | 25,000,000 | 25,000,000 | ||||
Bonds and notes payable | $ 20,500,000 | $ 50,200,000 | ||||
Weighted average basis spread on variable rate paid on swap | 3.375% | |||||
Fixed interest rate on derivatives and debt, net | 7.66% | 7.66% | ||||
Weighted average fixed rate paid by the Company | 4.28% | 4.28% | ||||
Private Loan Warehouse Total [Member] | Interest Rate Cap [Member] | ||||||
Derivative [Line Items] | ||||||
Bonds and notes payable | $ 275,000,000 | |||||
2015 Interest Rate Cap 1 [Member] | Interest Rate Cap [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 125,000,000 | |||||
Interest rate cap strike rate | 2.50% | |||||
2015 Interest Rate Cap 2 [Member] | Interest Rate Cap [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 150,000,000 | |||||
Interest rate cap strike rate | 4.99% | |||||
2017 Interest Rate Cap [Member] | Interest Rate Cap [Member] | ||||||
Derivative [Line Items] | ||||||
Payments to enter into derivative instruments | $ 929,000 |
Derivative Financial Instrume45
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional amount | $ 6,200,000 | $ 6,950,000 |
Weighted average fixed rate paid by the Company | 1.02% | 1.02% |
Maturity 2017 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 0 | $ 750,000 |
Weighted average fixed rate paid by the Company | 0.00% | 0.99% |
Maturity 2018 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 1,350,000 | $ 1,350,000 |
Weighted average fixed rate paid by the Company | 1.07% | 1.07% |
Maturity 2019 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 3,250,000 | $ 3,250,000 |
Weighted average fixed rate paid by the Company | 0.97% | 0.97% |
Maturity 2020 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 1,500,000 | $ 1,500,000 |
Weighted average fixed rate paid by the Company | 1.01% | 1.01% |
Maturity 2025 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000 | $ 100,000 |
Weighted average fixed rate paid by the Company | 2.32% | 2.32% |
Derivative Financial Instrume46
Derivative Financial Instruments - Cross-currency Interest Rate Swaps (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Oct. 25, 2017USD ($) | Sep. 30, 2017EUR (€) | Dec. 31, 2006EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Change in fair value of cross currency interest rate swaps | $ 22,381 | $ (1,556) | |||||
Student Loan Asset Backed Securities Euro Note [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Notes payable | € | € 352.7 | ||||||
Currency Swap [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Notional amount | $ 450,000 | 450,000 | € 352.7 | ||||
Currency Swap And Student Loan Asset Backed Euro Notes [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Total impact to statements of income - income (expense) | 2,574 | $ 670 | (804) | 12,651 | |||
Currency Swap And Student Loan Asset Backed Euro Notes [Member] | Student Loan Asset Backed Securities Euro Note [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Re-measurement of Euro Notes | (13,683) | (4,831) | (45,635) | (13,543) | |||
Currency Swap And Student Loan Asset Backed Euro Notes [Member] | Currency Swap [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Change in fair value of cross currency interest rate swaps | $ 16,257 | $ 5,501 | $ 44,831 | $ 26,194 | |||
Subsequent Event [Member] | Student Loan Asset Backed Securities Euro Note [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Notes payable | $ 450,000 |
Derivative Financial Instrume47
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | $ 996 | $ 996 | $ 87,531 | |
Fair value of liability derivatives | 30,105 | 30,105 | 77,826 | |
Proceeds from termination of derivative instruments | (3,013) | $ (2,830) | ||
Derivative Financial Instruments, Assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 996 | 996 | 87,531 | |
Derivative Financial Instruments, Assets [Member] | 1:3 basis swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 0 | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Interest rate swaps - floor income hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 0 | 0 | 81,159 | |
Derivative Financial Instruments, Assets [Member] | Swaption [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 765 | 765 | 2,977 | |
Derivative Financial Instruments, Assets [Member] | Interest Rate Cap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 231 | 231 | 1,152 | |
Derivative Financial Instruments, Assets [Member] | Interest rate swaps - hybrid debt hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 0 | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Cross-currency interest rate swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 0 | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Other Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of asset derivatives | 0 | 0 | 2,243 | |
Proceeds from termination of derivative instruments | 2,100 | |||
Derivative Financial Instruments, Liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 30,105 | 30,105 | 77,826 | |
Derivative Financial Instruments, Liabilities [Member] | 1:3 basis swaps [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 0 | 0 | 2,624 | |
Derivative Financial Instruments, Liabilities [Member] | Interest rate swaps - floor income hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 0 | 0 | 256 | |
Derivative Financial Instruments, Liabilities [Member] | Swaption [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 0 | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Interest Rate Cap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 0 | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Interest rate swaps - hybrid debt hedges [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 7,332 | 7,332 | 7,341 | |
Derivative Financial Instruments, Liabilities [Member] | Cross-currency interest rate swap [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | 22,773 | 22,773 | 67,605 | |
Derivative Financial Instruments, Liabilities [Member] | Other Contract [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair value of liability derivatives | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume48
Derivative Financial Instruments - Gross/Net (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Net asset | $ 996 | $ 85,126 |
Net liability | (21,635) | (67,654) |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets presented in the consolidated balance sheets | 996 | 87,531 |
Derivatives subject to enforceable master netting arrangement | 0 | (2,880) |
Cash collateral pledged | 0 | |
Cash collateral (received) pledged, net | 475 | |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral pledged | 8,470 | |
Cash collateral (received) pledged, net | 7,292 | |
Gross amounts of recognized liabilities presented in the consolidated balance sheets | (30,105) | (77,826) |
Derivatives subject to enforceable master netting arrangement | $ 0 | $ 2,880 |
Derivative Financial Instrume49
Derivative Financial Instruments - Income Statement Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | $ (573) | $ (6,261) | $ (2,314) | $ (18,292) |
Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | (573) | (6,261) | (2,314) | (18,292) |
Change in fair value | 21,429 | 47,093 | 22,381 | (1,556) |
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income | (13,683) | (4,831) | (45,635) | (13,543) |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) | 7,173 | 36,001 | (25,568) | (33,391) |
1:3 basis swaps [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | (2,172) | 523 | (1,836) | 938 |
Change in fair value | 5,916 | 140 | (5,499) | 323 |
Interest rate swaps - floor income hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | 3,883 | (5,157) | 5,877 | (15,241) |
Change in fair value | (185) | 42,073 | (13,670) | (17,913) |
Interest rate swap option - floor income hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | (500) | (269) | (2,212) | (2,541) |
Interest rate swaps - hybrid debt hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | (191) | (233) | (593) | (696) |
Change in fair value | 44 | 13 | 10 | (4,000) |
Interest Rate Cap [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | (103) | (68) | (936) | (1,283) |
Cross-currency interest rate swap [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | (2,093) | (1,394) | (5,762) | (3,293) |
Change in fair value | 16,257 | 5,501 | 44,831 | 26,194 |
Other Contract [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | $ 0 | $ (297) | $ (143) | $ (2,336) |
Investments and Other Receiva50
Investments and Other Receivables Summary (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Investment Holdings [Line Items] | ||
Total investments and other receivables | $ 276,536 | $ 254,144 |
Investments [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 75,413 | 106,593 |
Investments [Member] | Available-for-sale investments [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 68,766 | 98,980 |
Gross unrealized gains | 6,908 | 8,210 |
Gross unrealized losses | (261) | (702) |
Fair value | 75,413 | 106,488 |
Investments [Member] | Available-for-sale investments [Member] | Aggregate fair value of available-for-sale investments with unrealized losses [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 2,700 | |
Investments [Member] | Available-for-sale investments [Member] | Aggregate fair value of available-for-sale investments with unrealized losses in a continuous unrealized loss position for greater than 12 months [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 400 | |
Investments [Member] | Available-for-sale investments [Member] | Student Loan Asset-Backed and Other Debt Securities [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 68,010 | 98,260 |
Gross unrealized gains | 4,768 | 6,280 |
Gross unrealized losses | (240) | (641) |
Fair value | 72,538 | 103,899 |
Investments [Member] | Available-for-sale investments [Member] | Equity securities [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 756 | 720 |
Gross unrealized gains | 2,140 | 1,930 |
Gross unrealized losses | (21) | (61) |
Fair value | 2,875 | 2,589 |
Investments [Member] | Trading investments [Member] | Equity securities [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 0 | 105 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Venture Capital and Funds [Member] | ||
Investment Holdings [Line Items] | ||
Other Investments and Other Receivables (not measured at fair value): | 84,903 | 69,789 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Notes Receivable [Member] | ||
Investment Holdings [Line Items] | ||
Other Investments and Other Receivables (not measured at fair value): | 56,732 | 17,031 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Real Estate Investment [Member] | ||
Investment Holdings [Line Items] | ||
Other Investments and Other Receivables (not measured at fair value): | 49,567 | 48,379 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Tax liens and affordable housing investments [Member] | ||
Investment Holdings [Line Items] | ||
Other Investments and Other Receivables (not measured at fair value): | $ 9,921 | $ 12,352 |
Minimum [Member] | Student Asset Backed And Other Debt Securities [Member] | Available-for-sale investments [Member] | ||
Investment Holdings [Line Items] | ||
Available for sale securities maturity term | 10 years |
Intangible Assets, net - Schedu
Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of September 30, 2017 (months) | 144 months | ||||
Finite-lived intangible assets, net | $ 40,742 | $ 40,742 | $ 47,813 | ||
Amortization of intangible assets | 2,300 | $ 3,200 | $ 7,100 | $ 8,400 | |
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of September 30, 2017 (months) | 162 months | ||||
Finite-lived intangible assets, net | 25,179 | $ 25,179 | 28,335 | ||
Accumulated intangible asset amortization | 11,704 | $ 11,704 | 8,548 | ||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of September 30, 2017 (months) | 180 months | ||||
Finite-lived intangible assets, net | 9,285 | $ 9,285 | 9,919 | ||
Accumulated intangible asset amortization | 2,287 | $ 2,287 | 1,653 | ||
Computer Software, Intangible Asset [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of September 30, 2017 (months) | 17 months | ||||
Finite-lived intangible assets, net | 6,042 | $ 6,042 | 9,296 | ||
Accumulated intangible asset amortization | 8,929 | $ 8,929 | 5,675 | ||
Covenants not to compete [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of September 30, 2017 (months) | 80 months | ||||
Finite-lived intangible assets, net | 236 | $ 236 | 263 | ||
Accumulated intangible asset amortization | $ 118 | $ 118 | $ 91 |
Intangible Assets, net - Amorti
Intangible Assets, net - Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2017 (October 1 - December 31) | $ 2,315 | |
2,018 | 8,605 | |
2,019 | 5,147 | |
2,020 | 4,231 | |
2,021 | 3,480 | |
2022 and thereafter | 16,964 | |
Finite-lived intangible assets, net | $ 40,742 | $ 47,813 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Goodwill | $ 147,312 | $ 147,312 |
Loan Systems and Servicing [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 8,596 | 8,596 |
Tuition Payment Processing and Campus Commerce [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 67,168 | 67,168 |
Communications [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 21,112 | 21,112 |
Asset Generation and Management [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 41,883 | 41,883 |
Corporate and Other Activities [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 8,553 | $ 8,553 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, net | $ 208,441 | $ 208,441 | $ 123,786 | ||
Depreciation | 7,700 | $ 5,800 | 20,600 | $ 16,400 | |
Non-communications [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 175,009 | 175,009 | 148,440 | ||
Accumulated depreciation | 104,430 | 104,430 | 91,285 | ||
Property and equipment, net | 70,579 | 70,579 | 57,155 | ||
Non-communications [Member] | Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 108,430 | $ 108,430 | 97,317 | ||
Non-communications [Member] | Computer Equipment and Software [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 1 year | ||||
Non-communications [Member] | Computer Equipment and Software [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Non-communications [Member] | Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 25,283 | $ 25,283 | 13,363 | ||
Non-communications [Member] | Building [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Non-communications [Member] | Building [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 39 years | ||||
Non-communications [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 14,357 | $ 14,357 | 12,344 | ||
Non-communications [Member] | Furniture and Fixtures [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 3 years | ||||
Non-communications [Member] | Furniture and Fixtures [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 7 years | ||||
Non-communications [Member] | Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 6,496 | $ 6,496 | 3,579 | ||
Non-communications [Member] | Leasehold Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Non-communications [Member] | Leasehold Improvements [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 20 years | ||||
Non-communications [Member] | Transportation Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,813 | $ 3,813 | 3,809 | ||
Non-communications [Member] | Transportation Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 4 years | ||||
Non-communications [Member] | Transportation Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 10 years | ||||
Non-communications [Member] | Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 2,605 | $ 2,605 | 1,682 | ||
Non-communications [Member] | Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 14,025 | 14,025 | 16,346 | ||
Communications [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 149,726 | 149,726 | 71,297 | ||
Accumulated depreciation | 11,864 | 11,864 | 4,666 | ||
Property and equipment, net | 137,862 | 137,862 | 66,631 | ||
Communications [Member] | Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 3,318 | $ 3,318 | 2,026 | ||
Communications [Member] | Computer Equipment and Software [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 1 year | ||||
Communications [Member] | Computer Equipment and Software [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Communications [Member] | Transportation Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 5,011 | $ 5,011 | 2,966 | ||
Communications [Member] | Transportation Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 4 years | ||||
Communications [Member] | Transportation Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 10 years | ||||
Communications [Member] | Land [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 70 | $ 70 | 70 | ||
Communications [Member] | Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 35,709 | 35,709 | 12,537 | ||
Communications [Member] | Network plant and fiber [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 83,870 | $ 83,870 | 40,844 | ||
Communications [Member] | Network plant and fiber [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Communications [Member] | Network plant and fiber [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 15 years | ||||
Communications [Member] | Customer located property [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 10,987 | $ 10,987 | 5,138 | ||
Communications [Member] | Customer located property [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Communications [Member] | Customer located property [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 10 years | ||||
Communications [Member] | Central office [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 8,476 | $ 8,476 | 6,448 | ||
Communications [Member] | Central office [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 5 years | ||||
Communications [Member] | Central office [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 15 years | ||||
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 2,285 | $ 2,285 | $ 1,268 | ||
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 1 year | ||||
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 39 years |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 46,303 | $ 84,294 | $ 125,065 | $ 158,405 |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,553,316 | 42,642,213 | 42,054,532 | 42,788,133 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.11 | $ 1.98 | $ 2.97 | $ 3.70 |
Common shareholders [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 45,850 | $ 83,419 | $ 123,816 | $ 156,749 |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,146,424 | 42,199,580 | 41,634,578 | 42,340,867 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.11 | $ 1.98 | $ 2.97 | $ 3.70 |
Unvested restricted stock shareholders [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 453 | $ 875 | $ 1,249 | $ 1,656 |
Weighted average common shares outstanding - basic and diluted (in shares) | 406,892 | 442,633 | 419,954 | 447,266 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.11 | $ 1.98 | $ 2.97 | $ 3.70 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Total interest income | $ 196,884 | $ 196,181 | $ 573,786 | $ 574,449 | |
Interest expense | 121,650 | 96,386 | 341,787 | 280,847 | |
Net interest income | 75,234 | 99,795 | 231,999 | 293,602 | |
Less provision for loan losses | 6,000 | 6,000 | 9,000 | 10,500 | |
Net interest income (loss) after provision for loan losses | 69,234 | 93,795 | 222,999 | 283,102 | |
Other income: | |||||
Loan systems and servicing revenue | 55,950 | 54,350 | 167,079 | 161,082 | |
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Tuition payment processing, school information, and campus commerce revenue | 35,450 | 33,071 | 113,293 | 102,211 | |
Communications revenue | 6,751 | 4,343 | 17,577 | 13,167 | |
Enrollment services revenue | 0 | 0 | 0 | 4,326 | |
Other income | 19,756 | 15,150 | 44,874 | 38,711 | |
Gain from debt repurchases | 116 | 2,160 | 5,537 | 2,260 | |
Derivative settlements, net | (573) | (6,261) | (2,314) | (18,292) | |
Derivative market value and foreign currency transaction adjustments, net | 7,746 | 42,262 | (23,254) | (15,099) | |
Total other income | 125,196 | 145,075 | 322,792 | 288,366 | |
Operating expenses: | |||||
Salaries and benefits | 74,193 | 63,743 | 220,684 | 187,907 | |
Depreciation and amortization | 10,051 | 8,994 | 27,687 | 24,817 | |
Loan servicing fees | 7,939 | 5,880 | 19,584 | 20,024 | |
Cost to provide communications services | 2,632 | 1,784 | 6,789 | 5,169 | |
Cost to provide enrollment services | 0 | 3,623 | |||
Other expenses | 30,518 | 26,391 | 84,593 | 84,174 | |
Intersegment expenses, net | 0 | 0 | 0 | 0 | |
Total operating expenses | 125,333 | 106,792 | 359,337 | 325,714 | |
Income (loss) before income taxes | 69,097 | 132,078 | 186,454 | 245,754 | |
Income tax (expense) benefit | (25,562) | (47,715) | (70,349) | (87,184) | |
Net income (loss) | 43,535 | 84,363 | 116,105 | 158,570 | |
Net loss (income) attributable to noncontrolling interests | 2,768 | (69) | 8,960 | (165) | |
Net income (loss) attributable to Nelnet, Inc. | 46,303 | 84,294 | 125,065 | 158,405 | |
Total assets | 24,768,710 | 27,669,611 | 24,768,710 | 27,669,611 | $ 27,180,108 |
Operating Segments [Member] | Loan Systems and Servicing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 147 | 37 | 361 | 80 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 147 | 37 | 361 | 80 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 147 | 37 | 361 | 80 | |
Other income: | |||||
Loan systems and servicing revenue | 55,950 | 54,350 | 167,079 | 161,082 | |
Intersegment servicing revenue | 10,563 | 11,021 | 30,839 | 34,436 | |
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | 0 | |
Communications revenue | 0 | 0 | 0 | 0 | |
Enrollment services revenue | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | 66,513 | 65,371 | 197,918 | 195,518 | |
Operating expenses: | |||||
Salaries and benefits | 38,435 | 32,505 | 116,932 | 96,851 | |
Depreciation and amortization | 549 | 557 | 1,644 | 1,440 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Cost to provide communications services | 0 | 0 | 0 | 0 | |
Cost to provide enrollment services | 0 | 0 | |||
Other expenses | 10,317 | 8,784 | 28,333 | 31,635 | |
Intersegment expenses, net | 7,774 | 5,825 | 23,496 | 18,168 | |
Total operating expenses | 57,075 | 47,671 | 170,405 | 148,094 | |
Income (loss) before income taxes | 9,585 | 17,737 | 27,874 | 47,504 | |
Income tax (expense) benefit | (4,937) | (6,740) | (14,410) | (18,052) | |
Net income (loss) | 4,648 | 10,997 | 13,464 | 29,452 | |
Net loss (income) attributable to noncontrolling interests | 3,408 | 0 | 10,050 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 8,056 | 10,997 | 23,514 | 29,452 | |
Total assets | 98,555 | 79,418 | 98,555 | 79,418 | |
Operating Segments [Member] | Tuition Payment Processing and Campus Commerce [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 5 | 2 | 10 | 7 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 5 | 2 | 10 | 7 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 5 | 2 | 10 | 7 | |
Other income: | |||||
Loan systems and servicing revenue | 0 | 0 | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Tuition payment processing, school information, and campus commerce revenue | 35,450 | 33,071 | 113,293 | 102,211 | |
Communications revenue | 0 | 0 | 0 | 0 | |
Enrollment services revenue | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | 35,450 | 33,071 | 113,293 | 102,211 | |
Operating expenses: | |||||
Salaries and benefits | 17,432 | 15,979 | 50,986 | 45,859 | |
Depreciation and amortization | 2,316 | 2,929 | 7,053 | 7,711 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Cost to provide communications services | 0 | 0 | 0 | 0 | |
Cost to provide enrollment services | 0 | 0 | |||
Other expenses | 4,224 | 4,149 | 14,072 | 13,122 | |
Intersegment expenses, net | 2,219 | 1,616 | 6,430 | 4,690 | |
Total operating expenses | 26,191 | 24,673 | 78,541 | 71,382 | |
Income (loss) before income taxes | 9,264 | 8,400 | 34,762 | 30,836 | |
Income tax (expense) benefit | (3,520) | (3,192) | (13,210) | (11,718) | |
Net income (loss) | 5,744 | 5,208 | 21,552 | 19,118 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 5,744 | 5,208 | 21,552 | 19,118 | |
Total assets | 208,290 | 190,682 | 208,290 | 190,682 | |
Operating Segments [Member] | Communications [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 1 | 0 | 2 | 1 | |
Interest expense | 1,551 | 318 | 3,367 | 671 | |
Net interest income | (1,550) | (318) | (3,365) | (670) | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | (1,550) | (318) | (3,365) | (670) | |
Other income: | |||||
Loan systems and servicing revenue | 0 | 0 | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | 0 | |
Communications revenue | 6,751 | 4,343 | 17,577 | 13,167 | |
Enrollment services revenue | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | 6,751 | 4,343 | 17,577 | 13,167 | |
Operating expenses: | |||||
Salaries and benefits | 4,099 | 2,325 | 10,489 | 4,792 | |
Depreciation and amortization | 3,145 | 1,630 | 7,880 | 4,137 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Cost to provide communications services | 2,632 | 1,784 | 6,789 | 5,169 | |
Cost to provide enrollment services | 0 | 0 | |||
Other expenses | 2,278 | 1,545 | 5,422 | 3,110 | |
Intersegment expenses, net | 470 | 279 | 1,472 | 610 | |
Total operating expenses | 12,624 | 7,563 | 32,052 | 17,818 | |
Income (loss) before income taxes | (7,423) | (3,538) | (17,840) | (5,321) | |
Income tax (expense) benefit | 2,821 | 1,344 | 6,779 | 2,022 | |
Net income (loss) | (4,602) | (2,194) | (11,061) | (3,299) | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | (4,602) | (2,194) | (11,061) | (3,299) | |
Total assets | 179,206 | 90,361 | 179,206 | 90,361 | |
Operating Segments [Member] | Asset Generation and Management [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 194,968 | 194,701 | 568,661 | 570,390 | |
Interest expense | 121,074 | 95,383 | 340,898 | 278,029 | |
Net interest income | 73,894 | 99,318 | 227,763 | 292,361 | |
Less provision for loan losses | 6,000 | 6,000 | 9,000 | 10,500 | |
Net interest income (loss) after provision for loan losses | 67,894 | 93,318 | 218,763 | 281,861 | |
Other income: | |||||
Loan systems and servicing revenue | 0 | 0 | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | 0 | |
Communications revenue | 0 | 0 | 0 | 0 | |
Enrollment services revenue | 0 | 0 | |||
Other income | 2,753 | 4,265 | 9,152 | 12,362 | |
Gain from debt repurchases | 116 | 2,160 | 1,097 | 2,260 | |
Derivative settlements, net | (382) | (6,028) | (1,721) | (17,596) | |
Derivative market value and foreign currency transaction adjustments, net | 7,702 | 42,546 | (23,121) | (8,763) | |
Total other income | 10,189 | 42,943 | (14,593) | (11,737) | |
Operating expenses: | |||||
Salaries and benefits | 392 | 486 | 1,156 | 1,504 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Loan servicing fees | 7,939 | 5,880 | 19,584 | 20,024 | |
Cost to provide communications services | 0 | 0 | 0 | 0 | |
Cost to provide enrollment services | 0 | 0 | |||
Other expenses | 1,451 | 1,769 | 4,269 | 4,766 | |
Intersegment expenses, net | 10,659 | 11,146 | 31,114 | 34,791 | |
Total operating expenses | 20,441 | 19,281 | 56,123 | 61,085 | |
Income (loss) before income taxes | 57,642 | 116,980 | 148,047 | 209,039 | |
Income tax (expense) benefit | (21,904) | (44,571) | (56,258) | (79,434) | |
Net income (loss) | 35,738 | 72,409 | 91,789 | 129,605 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 35,738 | 72,409 | 91,789 | 129,605 | |
Total assets | 23,724,413 | 26,888,950 | 23,724,413 | 26,888,950 | |
Operating Segments [Member] | Corporate and Other Activities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 3,903 | 2,370 | 10,026 | 6,527 | |
Interest expense | 1,165 | 1,615 | 2,794 | 4,702 | |
Net interest income | 2,738 | 755 | 7,232 | 1,825 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 2,738 | 755 | 7,232 | 1,825 | |
Other income: | |||||
Loan systems and servicing revenue | 0 | 0 | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | 0 | |
Communications revenue | 0 | 0 | 0 | 0 | |
Enrollment services revenue | 0 | 4,326 | |||
Other income | 17,003 | 10,886 | 35,722 | 26,349 | |
Gain from debt repurchases | 0 | 0 | 4,440 | 0 | |
Derivative settlements, net | (191) | (233) | (593) | (696) | |
Derivative market value and foreign currency transaction adjustments, net | 44 | (284) | (133) | (6,336) | |
Total other income | 16,856 | 10,369 | 39,436 | 23,643 | |
Operating expenses: | |||||
Salaries and benefits | 13,834 | 12,448 | 41,121 | 38,902 | |
Depreciation and amortization | 4,040 | 3,878 | 11,109 | 11,528 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Cost to provide communications services | 0 | 0 | 0 | 0 | |
Cost to provide enrollment services | 0 | 3,623 | |||
Other expenses | 12,248 | 10,143 | 32,497 | 31,540 | |
Intersegment expenses, net | (10,559) | (7,845) | (31,673) | (23,823) | |
Total operating expenses | 19,563 | 18,624 | 53,054 | 61,770 | |
Income (loss) before income taxes | 31 | (7,500) | (6,386) | (36,302) | |
Income tax (expense) benefit | 1,978 | 5,443 | 6,749 | 19,998 | |
Net income (loss) | 2,009 | (2,057) | 363 | (16,304) | |
Net loss (income) attributable to noncontrolling interests | (640) | (69) | (1,090) | (165) | |
Net income (loss) attributable to Nelnet, Inc. | 1,369 | (2,126) | (727) | (16,469) | |
Total assets | 863,700 | 687,347 | 863,700 | 687,347 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | (2,139) | (930) | (5,274) | (2,556) | |
Interest expense | (2,139) | (930) | (5,274) | (2,556) | |
Net interest income | 0 | 0 | 0 | 0 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 0 | 0 | 0 | 0 | |
Other income: | |||||
Loan systems and servicing revenue | 0 | 0 | 0 | 0 | |
Intersegment servicing revenue | (10,563) | (11,021) | (30,839) | (34,436) | |
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | 0 | |
Communications revenue | 0 | 0 | 0 | 0 | |
Enrollment services revenue | 0 | 0 | |||
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | (10,563) | (11,021) | (30,839) | (34,436) | |
Operating expenses: | |||||
Salaries and benefits | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Cost to provide communications services | 0 | 0 | 0 | 0 | |
Cost to provide enrollment services | 0 | 0 | |||
Other expenses | 0 | 0 | 0 | 0 | |
Intersegment expenses, net | (10,563) | (11,021) | (30,839) | (34,436) | |
Total operating expenses | (10,563) | (11,021) | (30,839) | (34,436) | |
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | 0 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 0 | 0 | 0 | 0 | |
Total assets | $ (305,454) | $ (267,147) | $ (305,454) | $ (267,147) |
Major Customer (Details)
Major Customer (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 18, 2017 | |
Concentration Risk Dollar Value [Member] | |||||
Concentration Risk [Line Items] | |||||
Loan systems and servicing revenue | $ 38.6 | $ 40.2 | $ 117.4 | $ 112.5 | |
GreatNet [Member] | |||||
Concentration Risk [Line Items] | |||||
Noncontolling interest, parent ownership percentage | 50.00% | 50.00% | |||
Great Lakes Higher Education Corporation [Member] | Subsequent Event [Member] | |||||
Concentration Risk [Line Items] | |||||
Percent of outstanding stock acquired | 100.00% |
Related Parties Related Parti58
Related Parties Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Jul. 07, 2017 | |
Union Bank and Trust Company [Member] | Consumer Loan [Member] | |||
Related Party Transaction [Line Items] | |||
Loans purchased from related party | $ 2.4 | $ 7.3 | |
Agile Sports Technologies, Inc. [Member] | Preferred Stock Investment In Hudl [Member] | |||
Related Party Transaction [Line Items] | |||
Additional investment in Hudl | $ 10.4 |
Assets and Liabilities that are
Assets and Liabilities that are Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Fair value | $ 75,413 | $ 106,593 |
Fair value of derivative instruments | 996 | 87,531 |
Total assets | 76,409 | 194,124 |
Financial liabilities: | ||
Fair value of derivative instruments | 30,105 | 77,826 |
Total liabilities | 30,105 | 77,826 |
Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 72,427 | 103,780 |
Equity securities [Member] | ||
Financial assets: | ||
Fair value | 2,875 | 2,694 |
Debt securities [Member] | ||
Financial assets: | ||
Fair value | 111 | 119 |
Level 1 [Member] | ||
Financial assets: | ||
Fair value | 2,986 | 2,813 |
Fair value of derivative instruments | 0 | 0 |
Total assets | 2,986 | 2,813 |
Financial liabilities: | ||
Fair value of derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 0 | 0 |
Level 1 [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 2,875 | 2,694 |
Level 1 [Member] | Debt securities [Member] | ||
Financial assets: | ||
Fair value | 111 | 119 |
Level 2 [Member] | ||
Financial assets: | ||
Fair value | 72,427 | 103,780 |
Fair value of derivative instruments | 996 | 87,531 |
Total assets | 73,423 | 191,311 |
Financial liabilities: | ||
Fair value of derivative instruments | 30,105 | 77,826 |
Total liabilities | 30,105 | 77,826 |
Level 2 [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 72,427 | 103,780 |
Level 2 [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 0 | 0 |
Level 2 [Member] | Debt securities [Member] | ||
Financial assets: | ||
Fair value | $ 0 | $ 0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||||
Student loans receivable | $ 22,528,845 | $ 24,903,724 | ||
Cash and cash equivalents | 254,391 | 69,654 | $ 67,154 | $ 63,529 |
Restricted cash | 725,463 | 980,961 | ||
Restricted cash – due to customers | 105,299 | 119,702 | ||
Accrued interest receivable | 396,827 | 391,264 | ||
Derivative instruments | 996 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,240,279 | 24,668,490 | ||
Accrued interest payable | 47,824 | 45,677 | ||
Due to customers | 105,299 | 119,702 | ||
Derivative instruments | 30,105 | 77,826 | ||
Fair value [Member] | ||||
Financial assets: | ||||
Student loans receivable | 23,635,887 | 25,653,581 | ||
Cash and cash equivalents | 254,391 | 69,654 | ||
Investments (available-for-sale) | 75,413 | 106,593 | ||
Notes receivable | 16,393 | 17,031 | ||
Loans receivable | 42,006 | |||
Restricted cash | 980,961 | |||
Restricted cash – due to customers | 105,299 | 119,702 | ||
Accrued interest receivable | 396,827 | 391,264 | ||
Derivative instruments | 996 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,319,439 | 24,220,996 | ||
Accrued interest payable | 47,824 | 45,677 | ||
Due to customers | 105,299 | 119,702 | ||
Derivative instruments | 30,105 | 77,826 | ||
Fair value [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Student loans receivable | 0 | 0 | ||
Cash and cash equivalents | 254,391 | 69,654 | ||
Investments (available-for-sale) | 2,986 | 2,813 | ||
Notes receivable | 0 | 0 | ||
Loans receivable | 0 | |||
Restricted cash | 725,463 | 980,961 | ||
Restricted cash – due to customers | 105,299 | 119,702 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 105,299 | 119,702 | ||
Derivative instruments | 0 | 0 | ||
Fair value [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Student loans receivable | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (available-for-sale) | 72,427 | 103,780 | ||
Notes receivable | 16,393 | 17,031 | ||
Loans receivable | 0 | |||
Restricted cash | 0 | 0 | ||
Restricted cash – due to customers | 0 | 0 | ||
Accrued interest receivable | 396,827 | 391,264 | ||
Derivative instruments | 996 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,319,439 | 24,220,996 | ||
Accrued interest payable | 47,824 | 45,677 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 30,105 | 77,826 | ||
Fair value [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Student loans receivable | 23,635,887 | 25,653,581 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (available-for-sale) | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Loans receivable | 42,006 | |||
Restricted cash | 0 | 0 | ||
Restricted cash – due to customers | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Carrying value [Member] | ||||
Financial assets: | ||||
Student loans receivable | 22,528,845 | 24,903,724 | ||
Cash and cash equivalents | 254,391 | 69,654 | ||
Investments (available-for-sale) | 75,413 | 106,593 | ||
Notes receivable | 16,393 | 17,031 | ||
Loans receivable | 40,339 | |||
Restricted cash | 725,463 | 980,961 | ||
Restricted cash – due to customers | 105,299 | 119,702 | ||
Accrued interest receivable | 396,827 | 391,264 | ||
Derivative instruments | 996 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,240,279 | 24,668,490 | ||
Accrued interest payable | 47,824 | 45,677 | ||
Due to customers | 105,299 | 119,702 | ||
Derivative instruments | $ 30,105 | $ 77,826 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands, € in Millions | Oct. 25, 2017USD ($) | Oct. 18, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2006EUR (€) |
Subsequent Event [Line Items] | |||||||
Non-cash expense impact of remarketing and swap termination | $ 7,173 | $ 36,001 | $ (25,568) | $ (33,391) | |||
Great Lakes Higher Education Corporation [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percent of outstanding stock acquired | 100.00% | ||||||
Payments to acquire business | $ 150,000 | ||||||
Student Loan Asset Backed Securities Euro Note [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Notes payable | € | € 352.7 | ||||||
Student Loan Asset Backed Securities Euro Note [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Notes payable | $ 450,000 | ||||||
Non-cash expense impact of remarketing and swap termination | $ 10,600 |