Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | NELNET INC | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1,027,524,695 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,258,602 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q4 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 29,343,603 | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 11,468,587 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Loans receivable (net of allowance for loan losses of $54,590 and $51,842, respectively) | $ 21,814,507 | $ 24,903,724 |
Cash and cash equivalents: | ||
Cash and cash equivalents - not held at a related party | 6,982 | 7,841 |
Cash and cash equivalents - held at a related party | 59,770 | 61,813 |
Total cash and cash equivalents | 66,752 | 69,654 |
Investments and notes receivable | 240,538 | 254,144 |
Restricted cash | 688,193 | 980,961 |
Restricted cash - due to customers | 187,121 | 119,702 |
Loan accrued interest receivable | 430,385 | 391,264 |
Accounts receivable (net of allowance for doubtful accounts of $1,436 and $1,549, respectively) | 54,410 | 43,972 |
Goodwill | 138,759 | 147,312 |
Intangible assets, net | 38,427 | 47,813 |
Property and equipment, net | 248,051 | 123,786 |
Other assets | 56,474 | 23,232 |
Fair value of derivative instruments | 818 | 87,531 |
Total assets | 23,964,435 | 27,193,095 |
Liabilities: | ||
Bonds and notes payable | 21,356,573 | 24,668,490 |
Accrued interest payable | 50,039 | 45,677 |
Other liabilities | 198,252 | 210,475 |
Due to customers | 187,121 | 119,702 |
Fair value of derivative instruments | 7,063 | 77,826 |
Total liabilities | 21,799,048 | 25,122,170 |
Commitments and contingencies | ||
Nelnet, Inc. shareholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock: | ||
Additional paid-in capital | 521 | 420 |
Retained earnings | 2,143,983 | 2,056,084 |
Accumulated other comprehensive earnings | 4,617 | 4,730 |
Total Nelnet, Inc. shareholders' equity | 2,149,529 | 2,061,655 |
Noncontrolling interests | 15,858 | 9,270 |
Total equity | 2,165,387 | 2,070,925 |
Total liabilities and equity | 23,964,435 | 27,193,095 |
Common Class A [Member] | ||
Common stock: | ||
Common stock | 293 | 306 |
Common Class B [Member] | ||
Common stock: | ||
Common stock | 115 | 115 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets: | ||
Loans receivable (net of allowance for loan losses of $54,590 and $51,842, respectively) | 21,909,476 | 25,090,530 |
Cash and cash equivalents: | ||
Restricted cash | 641,994 | 970,306 |
Other assets | 431,934 | 390,504 |
Liabilities: | ||
Bonds and notes payable | 21,702,298 | 25,105,704 |
Other liabilities | 168,637 | 290,996 |
Fair value of derivative instruments | 0 | 66,453 |
Common stock: | ||
Net assets of consolidated education lending variable interest entities | $ 1,112,469 | $ 988,187 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses | $ 54,590 | $ 51,842 |
Allowance for doubtful accounts | $ 1,436 | $ 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) | 29,341,517 | 30,628,112 |
Shares outstanding (in shares) | 29,341,517 | 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) | 11,468,587 | 11,476,932 |
Shares outstanding (in shares) | 11,468,587 | 11,476,932 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Loan interest | $ 757,731 | $ 751,280 | $ 726,258 |
Investment interest | 12,695 | 9,466 | 7,851 |
Total interest income | 770,426 | 760,746 | 734,109 |
Interest expense: | |||
Interest on bonds and notes payable | 465,188 | 388,183 | 302,210 |
Net interest income | 305,238 | 372,563 | 431,899 |
Less provision for loan losses | 14,450 | 13,500 | 10,150 |
Net interest income after provision for loan losses | 290,788 | 359,063 | 421,749 |
Other income: | |||
Loan systems and servicing revenue | 223,000 | 214,846 | 239,858 |
Tuition payment processing, school information, and campus commerce revenue | 145,751 | 132,730 | 120,365 |
Communications revenue | 25,700 | 17,659 | 0 |
Enrollment services revenue | 0 | 4,326 | 51,073 |
Other income | 52,826 | 53,929 | 47,262 |
Gain on sale of loans and debt repurchases, net | 2,902 | 7,981 | 5,153 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | (18,554) | 49,795 | 4,401 |
Total other income | 431,625 | 481,266 | 468,112 |
Operating expenses: | |||
Salaries and benefits | 301,885 | 255,924 | 247,914 |
Depreciation and amortization | 39,541 | 33,933 | 26,343 |
Loan servicing fees | 22,734 | 25,750 | 30,213 |
Cost to provide communications services | 9,950 | 6,866 | 0 |
Cost to provide enrollment services | 0 | 3,623 | 41,733 |
Other expenses | 121,619 | 115,419 | 123,014 |
Total operating expenses | 495,729 | 441,515 | 469,217 |
Income before income taxes | 226,684 | 398,814 | 420,644 |
Income tax expense | 64,863 | 141,313 | 152,380 |
Net income | 161,821 | 257,501 | 268,264 |
Net loss (income) attributable to noncontrolling interests | 11,345 | (750) | (285) |
Net income attributable to Nelnet, Inc. | $ 173,166 | $ 256,751 | $ 267,979 |
Earnings per common share: | |||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) | $ 4.14 | $ 6.02 | $ 5.89 |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,791,941 | 42,669,070 | 45,529,340 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 45,714 | $ 43,535 | $ 24,651 | $ 47,920 | $ 98,931 | $ 84,363 | $ 26,178 | $ 48,029 | $ 161,821 | $ 257,501 | $ 268,264 |
Available-for-sale securities: | |||||||||||
Unrealized holding gains (losses) arising during period, net | 2,349 | 5,789 | (1,570) | ||||||||
Reclassification adjustment for gains recognized in net income, net of losses | (2,528) | (1,907) | (2,955) | ||||||||
Income tax effect | 66 | (1,436) | 1,674 | ||||||||
Total other comprehensive (loss) income | (113) | 2,446 | (2,851) | ||||||||
Comprehensive income | 161,708 | 259,947 | 265,413 | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 11,345 | (750) | (285) | ||||||||
Comprehensive income attributable to Nelnet, Inc. | $ 173,053 | $ 259,197 | $ 265,128 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | 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 interest [Member] |
Beginning balance (in shares) at Dec. 31, 2014 | 0 | 34,756,384 | 11,486,932 | |||||
Beginning balance at Dec. 31, 2014 | $ 1,725,678 | $ 0 | $ 348 | $ 115 | $ 17,290 | $ 1,702,560 | $ 5,135 | $ 230 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 7,443 | 7,443 | ||||||
Net income | 268,264 | 267,979 | 285 | |||||
Other comprehensive income (loss) | (2,851) | (2,851) | ||||||
Distribution to noncontrolling interests | (232) | (232) | ||||||
Cash dividends on Class A and Class B common stock | (19,025) | (19,025) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 159,303 | |||||||
Issuance of common stock, net of forfeitures | 3,862 | $ 2 | 3,860 | |||||
Compensation expense for stock based awards | 5,188 | 5,188 | ||||||
Repurchase of common stock (in shares) | (2,449,159) | |||||||
Repurchase of common stock | (96,169) | $ (25) | (26,338) | (69,806) | ||||
Conversion of of common stock (in shares) | 10,000 | (10,000) | ||||||
Ending balance at Dec. 31, 2015 | 1,892,158 | $ 0 | $ 325 | $ 115 | 0 | 1,881,708 | 2,284 | 7,726 |
Ending balance (in shares) at Dec. 31, 2015 | 0 | 32,476,528 | 11,476,932 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 1,366 | 1,366 | ||||||
Net income | 257,501 | 256,751 | 750 | |||||
Other comprehensive income (loss) | 2,446 | 2,446 | ||||||
Distribution to noncontrolling interests | (572) | (572) | ||||||
Cash dividends on Class A and Class B common stock | (21,188) | (21,188) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 189,952 | |||||||
Issuance of common stock, net of forfeitures | 4,219 | $ 1 | 4,218 | |||||
Compensation expense for stock based awards | 4,086 | 4,086 | ||||||
Repurchase of common stock (in shares) | (2,038,368) | |||||||
Repurchase of common stock | (69,091) | $ (20) | (7,884) | (61,187) | ||||
Ending balance at Dec. 31, 2016 | 2,070,925 | $ 0 | $ 306 | $ 115 | 420 | 2,056,084 | 4,730 | 9,270 |
Ending balance (in shares) at Dec. 31, 2016 | 0 | 30,628,112 | 11,476,932 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 19,578 | 19,578 | ||||||
Net income | 161,821 | 173,166 | (11,345) | |||||
Other comprehensive income (loss) | (113) | (113) | ||||||
Distribution to noncontrolling interests | (1,645) | (1,645) | ||||||
Cash dividends on Class A and Class B common stock | (24,097) | (24,097) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 178,114 | |||||||
Issuance of common stock, net of forfeitures | 3,621 | $ 2 | 3,619 | |||||
Compensation expense for stock based awards | 4,193 | 4,193 | ||||||
Repurchase of common stock (in shares) | (1,473,054) | |||||||
Repurchase of common stock | (68,896) | $ (15) | (7,711) | (61,170) | ||||
Conversion of of common stock (in shares) | 8,345 | (8,345) | ||||||
Ending balance at Dec. 31, 2017 | $ 2,165,387 | $ 0 | $ 293 | $ 115 | $ 521 | $ 2,143,983 | $ 4,617 | $ 15,858 |
Ending balance (in shares) at Dec. 31, 2017 | 0 | 29,341,517 | 11,468,587 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common Class B [Member] | |||
Cash dividend on Class A and Class B common stock - per share | $ 0.58 | $ 0.50 | $ 0.42 |
Common Class A [Member] | |||
Cash dividend on Class A and Class B common stock - per share | $ 0.58 | $ 0.50 | $ 0.42 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Net income attributable to Nelnet, Inc. | $ 173,166 | $ 256,751 | $ 267,979 |
Net (loss) income attributable to noncontrolling interests | 11,345 | (750) | (285) |
Net income | 161,821 | 257,501 | 268,264 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | |||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 137,823 | 122,547 | 123,736 |
Loan discount accretion | (44,812) | (40,617) | (43,766) |
Provision for loan losses | 14,450 | 13,500 | 10,150 |
Derivative market value adjustment | (26,379) | (59,895) | 15,150 |
Unrealized foreign currency transaction adjustment | 45,600 | (11,849) | (43,801) |
(Payments) proceeds from termination of derivative instruments, net | (30,382) | 3,999 | 65,527 |
Payments to enter into derivative instruments | (929) | 0 | (2,936) |
Proceeds from clearinghouse to settle variation margin, net | 48,985 | 0 | 0 |
Gain on sale of loans, net | 0 | 0 | (351) |
Gain from debt repurchases, net | (2,902) | (7,981) | (4,802) |
Gain from sales of available-for-sale securities, net of losses | (2,528) | (1,907) | (2,955) |
Deferred income tax (benefit) expense | (1,544) | 27,005 | 7,049 |
Non-cash compensation expense | 4,416 | 4,348 | 5,347 |
Impairment expense | 3,626 | 0 | 0 |
Other | 3,948 | 4,215 | 755 |
Increase in loan accrued interest receivable | (39,203) | (7,439) | (3,819) |
(Increase) decrease in accounts receivable | (12,046) | 7,454 | 1,061 |
(Increase) decrease in other assets | (34,457) | (2,203) | 375 |
Increase in accrued interest payable | 4,362 | 14,170 | 5,117 |
(Decrease) increase in other liabilities | (2,341) | 2,409 | (8,736) |
Net cash provided by operating activities | 227,508 | 325,257 | 391,365 |
Cash flows from investing activities, net of acquisitions: | |||
Purchases of loans | (325,476) | (349,144) | (2,189,450) |
Net proceeds from loan repayments, claims, capitalized interest, and other | 3,363,526 | 3,735,772 | 3,668,302 |
Proceeds from sale of loans | 53,203 | 44,760 | 3,996 |
Purchases of available-for-sale securities | (128,523) | (94,673) | (100,476) |
Proceeds from sales of available-for-sale securities | 156,540 | 144,252 | 95,758 |
Purchases of investments and issuance of notes receivable | (29,339) | (22,361) | (93,948) |
Proceeds from investments and notes receivable | 11,545 | 15,898 | 29,799 |
Purchases of property and equipment | (156,005) | (67,602) | (16,761) |
Decrease (increase) in restricted cash, net | 320,108 | (147,487) | 67,108 |
Business and asset acquisitions, net of cash acquired | 0 | 0 | (46,966) |
Proceeds from sale of business, net | 4,511 | 0 | 0 |
Net cash provided by investing activities | 3,270,090 | 3,259,415 | 1,417,362 |
Cash flows from financing activities, net of borrowings assumed: | |||
Payments on bonds and notes payable | (5,403,224) | (4,134,890) | (4,368,180) |
Proceeds from issuance of bonds and notes payable | 1,984,558 | 650,909 | 2,614,595 |
Payments of debt issuance costs | (6,497) | (5,845) | (11,162) |
Payment of contingent consideration | (850) | 0 | 0 |
Dividends paid | (24,097) | (21,188) | (19,025) |
Repurchases of common stock | (68,896) | (69,091) | (96,169) |
Proceeds from issuance of common stock | 678 | 889 | 801 |
Issuance of noncontrolling interests | 19,473 | 1,241 | 3,693 |
Distribution to noncontrolling interests | (1,645) | (572) | (232) |
Net cash used in financing activities | (3,500,500) | (3,578,547) | (1,875,679) |
Net (decrease) increase in cash and cash equivalents | (2,902) | 6,125 | (66,952) |
Cash and cash equivalents, beginning of year | 69,654 | 63,529 | 130,481 |
Cash and cash equivalents, end of year | 66,752 | 69,654 | 63,529 |
Cash disbursements made for: | |||
Interest | 390,278 | 301,118 | 228,248 |
Income taxes, net of refunds | 96,721 | 115,415 | 147,235 |
Noncash investing and financing activities: | |||
Loans and other assets acquired | 0 | 0 | 2,025,453 |
Borrowings and other liabilities assumed in acquisition of loans | 0 | 0 | 1,885,453 |
Issuance of noncontrolling interest | $ 0 | $ 20 | $ 3,750 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is a diverse company with a focus on delivering education-related products and services and loan asset management. The largest operating businesses engage in loan servicing, tuition payment processing and school information systems, and communications. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including, but not limited to, investments in real estate and start-up ventures. Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States. The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the Federal Family Education Loan Program (“FFELP” or “FFEL Program”) of the U.S. Department of Education (the “Department”). The Health Care and Education Reconciliation Act of 2010 (the "Reconciliation Act of 2010”) discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires that all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. As a result of this law, the Company no longer originates new FFELP loans. To reduce its reliance on interest income on student loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as business acquisitions. The Company has four reportable operating segments. The Company's reportable operating segments include: • Loan Systems and Servicing • Tuition Payment Processing and Campus Commerce • Communications • Asset Generation and Management A description of each reportable operating segment is included below. See note 15 for additional information on the Company's segment reporting. Loan Systems and Servicing The primary service offerings of the Loan Systems and Servicing operating segment include: • Servicing federally-owned student loans for the Department of Education • Servicing FFELP loans • Originating and servicing private education and consumer loans • Providing student loan servicing software and other information technology products and services • Providing outsourced services including call center, processing, and marketing services In addition, this segment provided servicing and outsourcing services for FFELP guaranty agencies, including FFELP guaranty collection services, through June 30, 2016. The Loan Systems and Servicing operating segment provides for the servicing of the Company's student loan portfolio and the portfolios of third parties. The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing. These activities are performed internally for the Company's portfolio in addition to generating external fee revenue when performed for third-party clients. The Company is one of four private sector companies (referred to as Title IV Additional Servicers, or "TIVAS") awarded a student loan servicing contract by the Department to provide additional servicing capacity for loans owned by the Department. This operating segment also provides student loan servicing software, which is used internally by the Company and licensed to third-party student loan holders and servicers. These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans. This segment also provides business process outsourcing specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, and interacting with customers through multi-channels. In addition, this operating segment provided servicing activities for guaranty agencies, which serve as intermediaries between the Department and FFELP lenders, and are responsible for paying the claims made on defaulted loans. The services provided by the Company included providing software and data center services, borrower and loan updates, default aversion tracking services, claim processing services, and post-default collection services. The Company's guaranty servicing and collection revenue was earned from two guaranty servicing clients. A contract with one client expired on October 31, 2015, and was not renewed. The remaining guaranty servicing client exited the FFELP guaranty business at the end of their contract term on June 30, 2016, and after this date the Company has no remaining guaranty servicing and collection revenue. Tuition Payment Processing and Campus Commerce The Company's Tuition Payment Processing and Campus Commerce operating segment provides products and services to help students and families manage the payment of education costs at all levels (K-12 and higher education). In addition, this operating segment provides K-12 private and faith-based schools (i) school information system software that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management and (ii) professional development and educational instruction services. This segment also provides innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. In the K-12 market, the Company offers actively managed tuition payment plans and billing services, school information system and learning management software, professional development and educational instruction services, and assistance with financial needs assessment and donor management. In the higher education market, the Company primarily offers actively managed tuition payment plans and campus commerce technologies and payment processing. Outside of the education market, the Company also offers payment services including electronic transfer and credit card processing, reporting, billing and invoicing, mobile and virtual terminal solutions, and specialized integrations to business software. Communications On December 31, 2015, the Company purchased the majority of the ownership interests of ALLO Communications LLC (“ALLO”). ALLO provides pure fiber optic service to homes and businesses for internet, broadband, television, and telephone services. The acquisition of ALLO provides additional diversification of the Company's revenues and cash flows outside of education. In addition, the acquisition leverages the Company's existing infrastructure, customer service capabilities and call centers, and financial strength and liquidity for continued growth. For financial reporting purposes, the Company provides the operating results of ALLO as a separate reportable operating segment. The ALLO assets acquired and liabilities assumed were recorded by the Company at their respective estimated fair values at the date of acquisition. As such, ALLO’s assets and liabilities as of December 31, 2015 are included in the Company’s consolidated balance sheet. However, ALLO had no impact on the consolidated statement of income for 2015. Beginning January 1, 2016, the Company began to reflect the operations of ALLO in the consolidated statements of income. ALLO derives its revenue primarily from the sale of communication services to residential and business customers in Nebraska. Internet, broadband, and television services include revenue from residential and business customers for subscriptions to ALLO's video and data products. ALLO data services provide high-speed internet access over ALLO's all-fiber network at various symmetrical speeds of up to 1 gigabit per second for residential customers and is capable of providing symmetrical speeds of over 1 gigabit per second for business customers. Local calling services include fiber telephone service and other basic services. Long-distance services include traditional domestic and international long distance which enables customers to make calls that terminate outside their local calling area. Asset Generation and Management The Company's Asset Generation and Management operating segment includes the acquisition, management, and ownership of the Company's loan assets. Substantially all loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“Consolidation” loans). The Company also acquires private education and consumer loans. The Company generates a substantial portion of its earnings from the spread, referred to as the Company's loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio. The student loan assets are held in a series of education lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment. Corporate and Other Activities Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items: • The operating results of Whitetail Rock Capital Management, LLC ("WRCM"), the Company's SEC-registered investment advisor subsidiary • Income earned on certain investment activities, including real estate and start-up ventures • Interest expense incurred on unsecured debt transactions • Other product and service offerings that are not considered reportable operating segments Corporate and Other Activities also include certain corporate activities and overhead functions related to executive management, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services. |
Recent Developments
Recent Developments | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Recent Developments | Recent Developments On February 7, 2018, the Company acquired 100 percent of the outstanding stock of Great Lakes Educational Loan Services, Inc. (“Great Lakes”) for a purchase price of $150.0 million in cash. The Company and Great Lakes are two of the four large private sector companies, or TIVAS, that have student loan servicing contracts with the Department of Education to provide servicing for loans owned by the Department. The operating results of Great Lakes will be included in the Company's Loan Systems and Servicing operating segment beginning February 7, 2018. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices 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 and has a disproportional 80 percent of the voting rights related to all operating decisions for ALLO's business. See note 1, “Description of Business,” for a description of ALLO, including the primary services offered. ALLO's 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) has issued a $270.0 million line of credit to ALLO. As of December 31, 2017 and 2016, the outstanding balance, including accrued interest, on the line of credit was $193.1 million and $58.0 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 15, “Segment Reporting,” for disclosure of ALLO’s total assets and results of operations (included in the "Communications" operating segment), note 10, "Goodwill," for disclosure of ALLO's goodwill, and note 11, “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 Interests Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities: • Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012. • ALLO Communications LLC - On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of ALLO. On January 1, 2016, the Company sold a 1.0 percent ownership interest in ALLO to a non-related third-party. The remaining 7.5 percent of the ownership interests of ALLO is owned by ALLO management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ) of the total ownership interests based on the financial performance of ALLO. • 401 Building, LLC (“401 Building”) - 401 Building is an entity established on October 19, 2015 for the sole purpose of acquiring, developing, and operating a commercial building. The Company owns 50 percent of 401 Building. • TDP Phase Three, LLC (“TDP”) and TDP Phase Three-NMTC ("TDP-NMTC") - TDP and TDP-NMTC are entities that were established in October 2015 for the sole purpose of developing and operating the new headquarters of Hudl. The Company owns 25 percent of each TDP and TDP-NMTC. • 330-333 Building, LLC ("330-333 Building") - 330-333 Building is an entity established on January 14, 2016 for the sole purpose of acquiring, developing, and operating a commercial building. The Company owns 50 percent of 330-333 Building. The Company is a tenant in the 401 Building, the headquarters of Hudl, and the 330-333 Building. Because the Company, as lessee, was involved in the asset construction, 401 Building, TDP, TDP-NMTC, and 330-333 Building are included in the Company's consolidated financial statements. • GreatNet Solutions, LLC ("GreatNet") - GreatNet is a joint venture created to respond to an initiative by the Department for the procurement of a contract for federal student loan servicing. As of December 31, 2017, Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes each owned 50 percent of the ownership interests in GreatNet. 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. On February 7, 2018, the Company purchased 100 percent of the outstanding stock of Great Lakes. See note 2, “Recent Developments” for additional information on this business acquisition. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. Loans Receivable Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2017 and 2016 . Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. The borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to 6 years. Allowance for Loan Losses The allowance for loan losses represents management's estimate of probable losses on loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its private education and consumer loan portfolios. These evaluation processes are subject to numerous judgments and uncertainties. The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, current economic conditions, and other relevant factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company's loss exposure on the outstanding balance of the Company's federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured. In determining the appropriate allowance for loan losses on the private education and consumer loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places private education and consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses. Management has determined that each of the federally insured loan portfolio, private education loan portfolio, and consumer loan portfolio meets the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 4 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables. The Company collectively evaluates loans for impairment and as of December 31, 2017 and 2016 , the Company did not have any impaired loans as defined in the Receivables Topic of the FASB Accounting Standards Codification. For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. Cash and Cash Equivalents and Statement of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents. Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. Net purchased loan accrued interest was $71.4 million in 2015 . Net purchased loan accrued interest in 2017 and 2016 was insignificant. Investments The Company's available-for-sale investment portfolio consists of student loan and other asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan and other asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income. Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income. When an investment is sold, the cost basis is determined through specific identification of the security sold. The Company accounts for investments in which it does not have significant influence or a controlling financial interest using the cost method of accounting. Cost method investments are recorded at cost. Cost method investments are evaluated for other-than-temporary impairment in the same manner as described above for available-for-sale investments. The Company accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized. Restricted Cash Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses. Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Tuition Payment Processing and Campus Commerce operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets. Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection. Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings. Goodwill The Company reviews goodwill for impairment annually (in the fourth quarter) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a quantitative impairment test on goodwill. In the quantitative test, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company would record an impairment loss equal to the difference. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates. See note 10 for information regarding the Company's annual goodwill impairment review. Intangible Assets Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method. The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset. Impairment of Long‑Lived Assets The Company reviews its long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company uses estimates to determine the fair value of long-lived assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimating fair value if such methods are determined to be more appropriate. Assumptions and estimates about future values and remaining useful lives of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results. Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include: • Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable. • Level 3: Instruments whose primary value drivers are unobservable . Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period. Revenue Recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists between the Company and the customer, (ii) delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales price is reasonably assured. Additional information related to the Company's revenue recognition of specific items is further provided below. Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, the Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan. The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan. The Company recognizes 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 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 |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses Loans receivable consisted of the following: As of December 31, 2017 2016 Federally insured student loans: Stafford and other $ 4,418,881 5,186,047 Consolidation 17,302,725 19,643,937 Total 21,721,606 24,829,984 Private education loans 212,160 273,659 Consumer loans 62,111 — 21,995,877 25,103,643 Loan discount, net of unamortized loan premiums and deferred origination costs (113,695 ) (129,507 ) Non-accretable discount (a) (13,085 ) (18,570 ) Allowance for loan losses: Federally insured loans (38,706 ) (37,268 ) Private education loans (12,629 ) (14,574 ) Consumer loans (3,255 ) — $ 21,814,507 24,903,724 (a) At December 31, 2017 and 2016, the non-accretable discount related to purchased loan portfolios of $5.8 billion and $8.3 billion , respectively. Activity in the Allowance for Loan Losses The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below. Year ended December 31, 2017 2016 2015 Balance at beginning of period $ 51,842 50,498 48,900 Provision for loan losses: Federally insured loans 13,000 14,000 8,000 Private education loans (2,000 ) (500 ) 2,150 Consumer loans 3,450 — — Total provision for loan losses 14,450 13,500 10,150 Charge-offs: Federally insured loans (11,562 ) (12,292 ) (11,730 ) Private education loans (1,313 ) (1,728 ) (2,414 ) Consumer loans (195 ) — — Total charge-offs (13,070 ) (14,020 ) (14,144 ) Recoveries - private education loans 768 954 1,050 Purchase (sale) of loans, net: Federally insured loans — 70 50 Private education loans — 480 (140 ) Transfer from repurchase obligation related to private education loans repurchased, net (a) 600 360 4,632 Balance at end of period $ 54,590 51,842 50,498 Allocation of the allowance for loan losses: Federally insured loans $ 38,706 37,268 35,490 Private education loans 12,629 14,574 15,008 Consumer loans 3,255 — — Total allowance for loan losses $ 54,590 51,842 50,498 (a) The Company sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations were obligated to repurchase loans subject to the sale agreements in the event such loans became 60 or 90 days delinquent. As of December 31, 2016, the balance of loans subject to these repurchase obligations was $39.5 million . The Company's estimate related to its obligation to repurchase these loans is included in "other liabilities" in the Company's consolidated balance sheet and was $2.3 million as of December 31, 2016. On November 3, 2017, the loans subject to the repurchase obligations were sold by the owner of the loans to an unrelated third-party and the Company's repurchase obligation was terminated. 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 for federally insured and private education loans. As of December 31, 2017 2016 2015 Federally insured loans: Loans in-school/grace/deferment (a) $ 1,260,394 $ 1,606,468 $ 2,292,941 Loans in forbearance (b) 1,774,405 2,295,367 2,979,357 Loans in repayment status: Loans current 16,477,004 88.2 % 18,125,768 86.6 % 19,447,541 84.4 % Loans delinquent 31-60 days (c) 682,586 3.7 818,976 3.9 1,028,396 4.5 Loans delinquent 61-90 days (c) 374,534 2.0 487,647 2.3 566,953 2.5 Loans delinquent 91-120 days (c) 287,922 1.5 335,291 1.6 415,747 1.8 Loans delinquent 121-270 days (c) 629,480 3.4 854,432 4.1 1,166,940 5.1 Loans delinquent 271 days or greater (c)(d) 235,281 1.2 306,035 1.5 390,232 1.7 Total loans in repayment 18,686,807 100.0 % 20,928,149 100.0 % 23,015,809 100.0 % Total federally insured loans $ 21,721,606 $ 24,829,984 $ 28,288,107 Private education loans: Loans in-school/grace/deferment (a) $ 6,053 $ 35,146 $ 30,795 Loans in forbearance (b) 2,237 3,448 350 Loans in repayment status: Loans current 196,720 96.5 % 228,612 97.2 % 228,464 96.7 % Loans delinquent 31-60 days (c) 1,867 0.9 1,677 0.7 1,771 0.7 Loans delinquent 61-90 days (c) 1,052 0.5 1,110 0.5 1,283 0.5 Loans delinquent 91 days or greater (c) 4,231 2.1 3,666 1.6 4,979 2.1 Total loans in repayment 203,870 100.0 % 235,065 100.0 % 236,497 100.0 % Total private education loans $ 212,160 $ 273,659 $ 267,642 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
Bonds and Notes Payable
Bonds and Notes Payable | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 20,352,045 1.47% - 3.37% 8/25/21 - 2/25/66 Bonds and notes based on auction 780,829 2.09% - 2.69% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 21,132,874 FFELP warehouse facilities 335,992 1.55% / 1.56% 11/19/19 / 5/31/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 74,717 3.30% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 82,647 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 10,000 2.98% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.07% 9/15/61 Other borrowings 70,516 2.44% - 3.38% 1/12/18 - 12/15/45 21,727,127 Discount on bonds and notes payable and debt issuance costs (370,554 ) Total $ 21,356,573 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 Secured Financing Transactions The Company has historically relied upon secured financing vehicles as its most significant source of funding for loans. The net cash flow the Company receives from the securitized loans generally represents the excess amounts, if any, generated by the underlying loans over the amounts required to be paid to the bondholders, after deducting servicing fees and any other expenses relating to the securitizations. The Company’s rights to cash flow from securitized loans are subordinate to bondholder interests, and the securitized loans may fail to generate any cash flow beyond what is due to bondholders. The Company’s secured financing vehicles during the periods presented include loan warehouse facilities and asset-backed securitizations. The majority of the bonds and notes payable are primarily secured by the loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective bond resolutions or financing agreements. FFELP warehouse facilities The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements. As of December 31, 2017 , the Company had two FFELP warehouse facilities as summarized below. NFSLW-I NHELP-II Total Maximum financing amount $ 500,000 500,000 1,000,000 Amount outstanding 189,502 146,490 335,992 Amount available $ 310,498 353,510 664,008 Expiration of liquidity provisions September 20, 2019 May 31, 2018 Final maturity date November 19, 2019 May 31, 2020 Maximum advance rates 92.0 - 98.0% 85.0 - 95.0% Minimum advance rates 84.0 - 90.0% 85.0 - 95.0% Advanced as equity support $ 9,513 12,876 22,389 The FFELP warehouse facilities are supported by 364-day liquidity provisions, which are subject to the respective expiration date shown in the previous table. In the event the Company is unable to renew the liquidity provisions by such date, the facility would become a term facility at a stepped-up cost, with no additional student loans being eligible for financing, and the Company would be required to refinance the existing loans in the facility by the facility's final maturity date. The NFSLW-I warehouse facility provides for formula-based advance rates, depending on FFELP loan type, up to a maximum of the principal and interest of loans financed as shown in the table above. The advance rates for collateral may increase or decrease based on market conditions, but they are subject to minimums as disclosed above. The NHELP-II warehouse facility has a static advance rate that requires initial equity for loan funding, but does not require increased equity based on market movements. The FFELP warehouse facilities contain financial covenants relating to levels of the Company’s consolidated net worth, ratio of recourse indebtedness to adjusted EBITDA, and unencumbered cash. Any noncompliance with these covenants could result in a requirement for the immediate repayment of any outstanding borrowings under the facilities. Asset-backed securitizations The following tables summarize the asset-backed securitization transactions completed in 2017 and 2016 . Securitizations completed during the year ended December 31, 2017 NSLT 2017-1 NSLT 2017-2 NSLT 2017-3 Total Date securities issued 5/24/17 7/26/17 12/14/17 Total original principal amount $ 535,000 399,390 539,400 1,473,790 Bond discount — (2,002 ) — (2,002 ) Issue price $ 535,000 397,388 539,400 1,471,788 Cost of funds: 1-month LIBOR plus 0.78% 1-month LIBOR plus 0.77% 1-month LIBOR plus 0.85% Final maturity date 6/25/65 9/25/65 2/25/66 Securitizations completed during the year ended December 31, 2016 FFELP 2016-1 Private education loan 2016-A (a) Total Class A-1A notes Class A-1B notes 2016-A total Date securities issued 10/12/16 12/21/16 12/21/16 12/21/16 Total original principal amount $ 426,000 112,582 91,378 225,960 $ 651,960 Class A senior notes: Total original principal amount $ 426,000 112,582 91,378 203,960 629,960 Bond discount — — (609 ) (609 ) (609 ) Issue price $ 426,000 112,582 90,769 203,351 629,351 Cost of funds: 1-month LIBOR plus 0.80% 1-month LIBOR plus 1.75% 3.60% Final maturity date 9/25/65 12/26/40 12/26/40 Class B subordinated notes: Total original principal amount $ 22,000 22,000 Bond discount (285 ) (285 ) Issue price $ 21,715 21,715 Cost of funds: 5.35 % Final maturity date 12/28/43 (a) On June 26, 2015, the Company entered into a $275.0 million private education loan warehouse facility. The Company funded all loans that were included in this warehouse in the Private Education Loan 2016-A securitization and terminated the private education loan warehouse facility on December 21, 2016. Auction Rate Securities The interest rates on certain of the Company's FFELP asset-backed securities are set and periodically reset via a "dutch auction" ("Auction Rate Securities"). As of December 31, 2017 , the Company is currently the sponsor on $780.8 million of Auction Rate Securities. The Auction Rate Securities generally pay interest to the holder at a maximum rate as defined by the indenture. While these rates will vary, they will generally be based on a spread to LIBOR or Treasury Securities, or the Net Loan Rate as defined in the financing documents. Based on the relative levels of these indices as of December 31, 2017 , the rates expected to be paid by the Company range from LIBOR plus 100 basis points, on the low end, to LIBOR plus 250 basis points, on the high end. These maximum rates are subject to increase if the credit ratings on the bonds are downgraded. 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 December 31, 2017 , $10.0 million was outstanding on the line of credit and $340.0 million was available for future use. Interest on amounts borrowed under the line of credit is payable, at the Company's election, at an alternate base rate or a Eurodollar rate, plus a variable rate (LIBOR), in each case as defined in the credit agreement. The initial margin applicable to Eurodollar borrowings is 150 basis points and may vary from 100 to 200 basis points depending on the Company's credit rating. The line of credit agreement contains certain financial covenants that, if not met, lead to an event of default under the agreement. The covenants include maintaining: • A minimum consolidated net worth • A minimum adjusted EBITDA to corporate debt interest (over the last four rolling quarters) • A limitation on recourse indebtedness • A limitation on the amount of unsecuritized private education and consumer loans in the Company’s portfolio • A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business As of December 31, 2017 , the Company was in compliance with all of these requirements. Many of these covenants are duplicated in the Company's other lending facilities, including its warehouse facilities. The Company's operating line of credit does not have any covenants related to unsecured debt ratings. However, changes in the Company's ratings (as well as the amounts the Company borrows) have modest implications on the pricing level at which the Company obtains funds A default on the Company's warehouse facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit becoming immediately due and payable. Junior Subordinated Hybrid Securities On September 27, 2006, the Company issued $200.0 million aggregate principal amount of Junior Subordinated Hybrid Securities ("Hybrid Securities"). The Hybrid Securities are unsecured obligations of the Company. The interest rate on the Hybrid Securities through September 29, 2036 ("the scheduled maturity date") is equal to three-month LIBOR plus 3.375% , payable quarterly, which was 5.07% at December 31, 2017 . The principal amount of the Hybrid Securities will become due on the scheduled maturity date only to the extent that prior to such date the Company has received proceeds from the sale of certain qualifying capital securities (as defined in the Hybrid Securities' indenture). If any amount is not paid on the scheduled maturity date, it will remain outstanding and bear interest at a floating rate as defined in the indenture, payable monthly. On September 15, 2061, the Company must pay any remaining principal and interest on the Hybrid Securities in full whether or not the Company has sold qualifying capital securities. At the Company's option, the Hybrid Securities are redeemable in whole or in part at their principal amount plus accrued and unpaid interest. During the first quarter of 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. The aggregate principal amount of notes tendered to the Company was $29.7 million . The Company paid $25.3 million to redeem these notes, and the amendments described above were made to the indenture. Other Borrowings During 2017, the Company entered into a repurchase agreement, the proceeds of which are collateralized by FFELP asset-backed security investments. Included in "other borrowings" as of December 31, 2017 was $50.4 million subject to this repurchase agreement. The Company also has three notes payable, which were each issued by TDP Phase Three, LLC ("TDP") in connection with the development of a commercial building in Lincoln, Nebraska that is the new corporate headquarters for Hudl, a related party. TDP is an entity established during 2015 for the sole purpose of developing and operating this building. The Company owns 25 percent of TDP. However, because the Company was the developer of and a current tenant in this building, the operating results of TDP are included in the Company's consolidated financial statements. Recourse to the Company on the outstanding balance of these notes is equal to its ownership percentage of TDP. A summary of the TDP notes outstanding as of December 31, 2017 is summarized below: Issue date Debt outstanding Maturity date Interest rate December 30, 2015 $ 12,000 March 31, 2023 3.38% - fixed December 30, 2015 6,355 December 15, 2045 3.38% - fixed October 31, 2017 1,743 March 31, 2023 1-month LIBOR plus 2.00% Debt Covenants Certain bond resolutions and related credit agreements contain, among other requirements, covenants relating to restrictions on additional indebtedness, limits as to direct and indirect administrative expenses, and maintaining certain financial ratios. Management believes the Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2017 . Maturity Schedule Bonds and notes outstanding as of December 31, 2017 are due in varying amounts as shown below. 2018 $ 50,418 2019 189,502 2020 146,490 2021 33,410 2022 — 2023 and thereafter 21,307,307 $ 21,727,127 Generally, the Company's secured financing instruments can be redeemed on any interest payment date at par plus accrued interest. Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain education lending subsidiaries. Debt Repurchases The following table summarizes the Company's repurchases of its own debt. Gains (losses) recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases, net" on the Company’s consolidated statements of income. Par value Purchase price Gain (loss) Par value Purchase price Gain (loss) Par value Purchase price Gain (loss) Year ended December 31, 2017 2016 2015 Unsecured debt - Hybrid Securities $ 29,803 25,357 4,446 7,000 4,865 2,135 14,504 11,374 3,130 Asset-backed securities 154,407 155,951 (1,544 ) 78,412 72,566 5,846 32,026 30,354 1,672 $ 184,210 181,308 2,902 85,412 77,431 7,981 46,530 41,728 4,802 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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. Interest Rate Risk The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company has adopted a policy of periodically reviewing the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses derivative instruments as part of its overall risk management strategy. Derivative instruments used as part of the Company's interest rate risk management strategy currently include basis swaps and interest rate swaps. Basis Swaps Interest earned on the majority of the Company's FFELP student loan assets is indexed to the one-month LIBOR rate. Meanwhile, the Company funds a majority of its FFELP loan assets with three-month LIBOR indexed floating rate securities. The different interest rate characteristics of the Company's loan assets and liabilities funding these assets results in basis risk. The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily. As of December 31, 2017 , the Company had $20.0 billion , $1.1 billion , and $0.6 billion of FFELP loans indexed to the one-month LIBOR rate, three-month commercial paper rate , and the three-month treasury bill rate , respectively, the indices for which reset daily, and $11.7 billion of debt indexed to three-month LIBOR , the indices for which reset quarterly, and $8.6 billion of debt indexed to one-month LIBOR , the indices for which reset monthly. The Company has used derivative instruments to hedge its basis risk and repricing risk. The Company has entered into basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the 1:3 Basis Swaps). The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2017 2016 Maturity Notional amount Notional amount 2018 $ 4,250,000 — 2019 3,500,000 — 2022 1,000,000 — 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 $ 11,250,000 1,775,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2017 and 2016 , was one-month LIBOR plus 12.5 basis points and 10.1 basis points, respectively. Interest rate swaps – floor income hedges FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of the borrower rate, which is fixed over a period of time, or a floating rate based on the Special Allowance Payments ("SAP") formula set by the Department. The SAP rate is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income. Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. All FFELP loans first originated on or after April 1, 2006 effectively earn at the SAP rate, since lenders are required to rebate fixed rate floor income and variable rate floor income for these loans to the Department. Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced. As of December 31, 2017 and 2016 , the Company had $4.8 billion and $8.4 billion , respectively, of FFELP student loan assets that were earning fixed rate floor income, of which the weighted average estimated variable conversion rate for these loans, which is the estimated short-term interest rate at which loans would convert to a variable rate, was 3.17% and 2.42% , respectively. The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 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 2023 750,000 2.28 — — 2024 300,000 2.28 — — 2025 100,000 2.32 100,000 2.32 2027 50,000 2.32 — — $ 7,300,000 1.21 % $ 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 has a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50% , and the second interest rate cap has a notional amount of $150.0 million and a one-month LIBOR strike rate of 4.99% . In the event that the one-month LIBOR rate rises above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts have a maturity date of July 15, 2020. 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 December 31, 2017 and 2016 , the Company had $20.4 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. As of December 31, 2017 and 2016 , the Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a portion of the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28% (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. 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. On October 25, 2017, the Company completed a remarketing of the Euro Notes which reset 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. 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 were 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 were 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. On October 25, 2017, the Company terminated the cross-currency swap when the Euro Notes were remarketed. Under the terms of the cross-currency interest rate swap, the Company received from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and paid a spread to the LIBOR index based on a notional amount of $450.0 million . The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments. Year ended December 31, 2017 2016 2015 Re-measurement of Euro Notes $ (45,600 ) 11,849 43,801 Change in fair value of cross currency interest rate swap 34,208 (1,954 ) (45,195 ) Total impact to consolidated statements of income - (expense) income (a) $ (11,392 ) 9,895 (1,394 ) (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income. Management structured the cross-currency interest rate swap to economically hedge the Euro Notes to effectively convert the Euro 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. Consolidated Financial Statement Impact Related to Derivatives Balance Sheet The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheets. Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 1:3 basis swaps $ — — — 2,624 Interest rate swaps - floor income hedges — 81,159 — 256 Interest rate swap option - floor income hedge 543 2,977 — — Interest rate caps 275 1,152 — — Interest rate swaps - hybrid debt hedges — — 7,063 7,341 Cross-currency interest rate swap — — — 67,605 Other — 2,243 — — Total $ 818 87,531 7,063 77,826 During the year ended December 31, 2017 the Company terminated certain derivatives for net payments of $30.4 million , including proceeds of $2.1 million and $0.9 million on the termination of 1:3 basis swaps and interest rate caps, respectively, and payments of $33.4 million on the termination of cross-currency interest rate swap. During the year ended December 31, 2016, the Company terminated certain derivatives for net proceeds of $4.0 million , including proceeds of $0.6 million and $3.4 million from the termination of 1:3 basis swaps and interest rate swaps used to hedge loans earning fixed rate floor income, respectively. 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 (liability) Balance as of December 31, 2017 $ 818 — — 818 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 asset (liability) Balance as of December 31, 2017 $ (7,063 ) — 8,520 1,457 Balance as of December 31, 2016 (77,826 ) 2,880 7,292 (67,654 ) Income Statement 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. Year ended December 31, 2017 2016 2015 Settlements: 1:3 basis swaps $ (3,069 ) 1,493 1,058 Interest rate swaps - floor income hedges 10,838 (17,643 ) (23,041 ) Interest rate swaps - hybrid debt hedges (781 ) (915 ) (1,012 ) Cross-currency interest rate swap (6,321 ) (4,884 ) (1,255 ) Total settlements - income (expense) 667 (21,949 ) (24,250 ) Change in fair value: 1:3 basis swaps (8,224 ) (2,938 ) 12,292 Interest rate swaps - floor income hedges 3,585 64,111 20,103 Interest rate swap option - floor income hedge (2,433 ) (281 ) (2,420 ) Interest rate caps (893 ) (419 ) (1,365 ) Interest rate swaps - hybrid debt hedges 279 304 (295 ) Cross-currency interest rate swap 34,208 (1,954 ) (45,195 ) Other (143 ) 1,072 1,730 Total change in fair value - income (expense) 26,379 59,895 (15,150 ) Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) (45,600 ) 11,849 43,801 Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ (18,554 ) 49,795 4,401 Derivative Instruments - Credit and Market Risk New clearing requirements reduce counterparty risk associated with over-the-counter derivatives executed by the Company after June 10, 2013. For non-centrally cleared derivatives, the Company is exposed to credit risk. When the fair value of a non-centrally cleared derivative is positive (an asset in the Company's consolidated balance sheet), this generally indicates that the counterparty would owe the Company if the derivative was settled. If the counterparty fails to perform, credit risk with such counterparty is equal to the extent of the fair value gain in the derivative less any collateral held by the Company. If the Company was unable to collect from a counterparty, it would have a loss equal to the amount the derivative is recorded in the consolidated balance sheet. The Company considers counterparties' credit risk when determining the fair value of derivative positions on its exposure net of collateral. However, the Company does not use the collateral to offset fair value amounts recognized for derivative instruments in the financial statements. When the fair value of a non-centrally cleared derivative is negative (a liability in the Company's consolidated balance sheet), the Company would owe the counterparty if the derivative was settled and, therefore, has no immediate credit risk. If the negative fair value of derivatives with a counterparty exceeds a specified threshold, the Company may have to make a collateral deposit with the counterparty. The threshold at which the Company may be required to post collateral is dependent upon the Company's unsecured credit rating. The Company believes any downgrades from its current unsecured credit rating (Standard & Poor's: BBB- (stable outlook), Moody's: Ba1 (stable outlook), and DBRS: BBB (low) (stable outlook)), would not result in additional collateral requirements of a material nature. In addition, no counterparty has the right to terminate its contracts in the event of downgrades from the current ratings. Interest rate movements have an impact on the amount of collateral the Company is required to deposit with its derivative instrument counterparties and variation margin payments to its third-party clearinghouse. The Company attempts to manage market risk associated with interest rates by establishing and monitoring limits as to the types and degree of risk that may be undertaken. The Company's derivative portfolio and hedging strategy is reviewed periodically by its internal risk committee and board of directors' Risk and Finance Committee. With the Company's current derivative portfolio, the Company does not currently anticipate any movement in interest rates having a material impact on its liquidity or capital resources, nor expects future movements in interest rates to have a material impact on its ability to meet potential collateral deposits with its counterparties and variation margin payments to its third-party clearinghouse. Due to the existing low interest rate environment, the Company's exposure to downward movements in interest rates on its interest rate swaps is limited. In addition, the historical high correlation between one-month and three-month LIBOR limits the Company's exposure to interest rate movements on the 1:3 Basis Swaps. |
Investments and Notes Receivabl
Investments and Notes Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments and Notes Receivable | Investments and Notes Receivable A summary of the Company's investments and notes receivable follows: As of December 31, 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) $ 71,943 5,056 (25 ) 76,974 98,260 6,280 (641 ) 103,899 Equity securities 1,630 2,298 — 3,928 720 1,930 (61 ) 2,589 Total available-for-sale investments $ 73,573 7,354 (25 ) 80,902 98,980 8,210 (702 ) 106,488 Trading investments - equity securities — 105 Total available-for-sale and trading investments 80,902 106,593 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds 84,752 69,789 Real estate 49,464 48,379 Notes receivable 16,393 17,031 Tax liens and affordable housing 9,027 12,352 Total investments and notes receivable $ 240,538 254,144 (a) As of December 31, 2017 , the aggregate fair value of available-for-sale investments with unrealized losses was $12.3 million of which none 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 December 31, 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 December 31, 2017 , the stated maturities of substantially all of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale were greater than 10 years. The following table summarizes the amount included in "other income" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading. Year ended December 31, 2017 2016 2015 Available-for-sale securities: Gross realized gains $ 3,767 3,099 3,402 Gross realized losses (1,239 ) (1,192 ) (447 ) Trading securities: Unrealized gains (losses), net (14 ) 525 (715 ) Realized gains (losses), net — 341 (2,097 ) $ 2,514 2,773 143 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination ALLO On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of ALLO for total cash consideration of $46.25 million . On January 1, 2016, the Company sold a 1.0 percent ownership interest in ALLO to a non-related third-party for $0.5 million . The remaining 7.5 percent of the ownership interests of ALLO is owned by ALLO management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ) of the total ownership interests based on the financial performance of ALLO. The additional ownership interests that ALLO management has the opportunity to earn are based on their continued employment with ALLO. Accordingly, the value associated with the ownership interests issued to these employees of $1.0 million will be recognized by ALLO as compensation expense over the performance period. ALLO provides pure fiber optic service to homes and businesses for internet, television, and telephone services. The acquisition of ALLO provides additional diversification of the Company's revenues and cash flows outside of education. In addition, the acquisition leverages the Company's existing infrastructure, customer service capabilities and call centers, and financial strength and liquidity for continued growth. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2016, the Company recognized certain adjustments to the provisional amounts recorded at December 31, 2015 that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was an increase to goodwill, and the adjustments had no impact on operating results. Cash and cash equivalents $ 334 Restricted cash 850 Accounts receivable 1,935 Property and equipment 32,479 Other assets 371 Intangible assets 11,410 Excess cost over fair value of net assets acquired (goodwill) 21,112 Other liabilities (4,587 ) Bonds and notes payable (13,904 ) Net assets acquired 50,000 Minority interest (3,750 ) Total consideration paid by the Company $ 46,250 The $11.4 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 12 years. The intangible assets that made up this amount included customer relationships of $6.3 million ( 10 -year useful life) and a trade name of $5.1 million ( 15 -year useful life). The $21.1 million of goodwill was assigned to the Communications operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributable to future customers to be generated through the continued expansion of ALLO's services in rural markets. The proforma impacts of the acquisition on the Company's historical results prior to the acquisition were not material. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following: Weighted average remaining useful life as of December 31, 2017 (months) As of December 31, 2017 As of December 31, 2016 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $12,715 and $8,548, respectively) 160 $ 24,168 28,335 Trade names (net of accumulated amortization of $2,498 and $1,653, respectively) 89 9,074 9,919 Computer software (net of accumulated amortization of $10,013 and $5,675, respectively) 14 4,958 9,296 Covenants not to compete (net of accumulated amortization of $127 and $91, respectively) 77 227 263 Total - amortizable intangible assets, net 124 $ 38,427 47,813 The Company recorded amortization expense on its intangible assets of $9.4 million , $11.6 million , and $9.8 million during the years ended December 31, 2017, 2016, and 2015 , respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2017 , the Company estimates it will record amortization expense as follows: 2018 $ 10,428 2019 6,990 2020 3,789 2021 3,077 2022 2,474 2023 and thereafter 11,669 $ 38,427 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The change in the carrying amount of goodwill by reportable operating segment was as follows: Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management (a) Corporate and Other Activities Total Balance as of December 31, 2015 $ 8,596 67,168 19,800 41,883 8,553 146,000 ALLO purchase price adjustment — — 1,312 — — 1,312 Balance as of December 31, 2016 8,596 67,168 21,112 41,883 8,553 147,312 Impairment expense — — — — (3,626 ) (3,626 ) Sale of Peterson's — — — — (4,927 ) (4,927 ) Balance as of December 31, 2017 $ 8,596 67,168 21,112 41,883 — 138,759 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. The Company reviews goodwill for impairment annually. This annual review is completed by the Company as of November 30 of each year and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. On November 30, 2017, due to the anticipated sale of Peterson's, the Company recognized an impairment expense of $3.6 million related to goodwill initially recorded upon the acquisition of Peterson's. On December 31, 2017, the Company sold Peterson's for $5.0 million in cash. The impairment expense recognized by the Company is included in "other expenses" in the consolidated statement of income. For the 2017 annual review of goodwill, with the exception of the sale of Peterson's as discussed previously, the Company assessed qualitative factors and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, the Company was not required to perform further impairment testing and concluded there was no impairment of goodwill. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of December 31, Useful life 2017 2016 Non-communications: Computer equipment and software 1-5 years $ 124,708 97,317 Building and building improvements 5-39 years 24,003 13,363 Office furniture and equipment 3-7 years 15,210 12,344 Leasehold improvements 5-15 years 7,759 3,579 Transportation equipment 4-10 years 3,813 3,809 Land — 2,628 1,682 Construction in progress — 4,127 16,346 182,248 148,440 Accumulated depreciation - non-communications 105,017 91,285 Non-communications, net property and equipment 77,231 57,155 Communications: Network plant and fiber 5-15 years 138,122 40,844 Customer located property 5-10 years 13,767 5,138 Central office 5-15 years 10,754 6,448 Transportation equipment 4-10 years 5,759 2,966 Computer equipment and software 1-5 years 3,790 2,026 Other 1-39 years 2,516 1,268 Land — 70 70 Construction in progress — 11,620 12,537 186,398 71,297 Accumulated depreciation - communications 15,578 4,666 Communications, net property and equipment 170,820 66,631 Total property and equipment, net $ 248,051 123,786 The Company recorded depreciation expense on its property and equipment of $30.2 million , $22.4 million , and $16.5 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Classes of Common Stock The Company's common stock is divided into two classes. The Class B common stock has ten votes per share and the Class A common stock has one vote per share on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights. Stock Repurchases The Company has a stock repurchase program that expires on May 25, 2019 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise. As of December 31, 2017 , 3.1 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2017 , 2016 , and 2015 are shown in the table below. Total shares repurchased Purchase price (in thousands) Average price of shares repurchased (per share) Year ended December 31, 2017 1,473,054 $ 68,896 $ 46.77 Year ended December 31, 2016 2,038,368 69,091 33.90 Year ended December 31, 2015 2,449,159 96,169 39.27 |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 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. Year ended December 31, 2017 2016 2015 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 171,442 1,724 173,166 254,063 2,688 256,751 265,129 2,850 267,979 Denominator: Weighted-average common shares outstanding - basic and diluted 41,375,964 415,977 41,791,941 42,222,335 446,735 42,669,070 45,045,199 484,141 45,529,340 Earnings per share - basic and diluted $ 4.14 4.14 4.14 6.02 6.02 6.02 5.89 5.89 5.89 Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation. As of December 31, 2017 , a cumulative amount of 171,519 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to income taxes in the United States, Canada, and Australia. Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. As required by the Income Taxes Topic of the FASB Accounting Standards Codification ("ASC Topic 740"), the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. As of December 31, 2017 , the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $28.4 million , which is included in “other liabilities” on the consolidated balance sheet. Of this total, $22.4 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $7.1 million prior to December 31, 2018 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those currently expected. Of the anticipated $7.1 million decrease, $5.6 million , if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2017 2016 Gross balance - beginning of year $ 28,004 27,688 Additions based on tax positions of prior years 145 904 Additions based on tax positions related to the current year 2,903 4,347 Settlements with taxing authorities — — Reductions for tax positions of prior years (356 ) (3,088 ) Reductions based on tax positions related to the current year — — Reductions due to lapse of applicable statutes of limitations (2,275 ) (1,847 ) Gross balance - end of year $ 28,421 28,004 All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate. The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of December 31, 2017 and 2016 , $4.5 million and $3.5 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The Company recognized interest expense of $0.8 million , $0.3 million , and $1.2 million related to uncertain tax positions for the years ended December 31, 2017 , 2016 , and 2015 , respectively. The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2017 , 2016 , and 2015 . The impact of timing differences and tax attributes are considered when calculating interest and penalty accruals associated with the unrecognized tax benefits. The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and the Company or one of its subsidiaries files income tax returns in various state, local, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2014. The Company is no longer subject to U.S. state and local income tax examinations by tax authorities prior to 2007. As of December 31, 2017 , the Company has tax uncertainties that remain unsettled in the following jurisdictions: California 2010 through 2015 Maine 2011 through 2016 New York 2008 through 2014 Texas 2007 through 2009 The provision for income taxes consists of the following components: Year ended December 31, 2017 2016 2015 Current: Federal $ 65,196 111,302 140,778 State 1,246 3,019 4,530 Foreign (35 ) (13 ) 23 Total current provision 66,407 114,308 145,331 Deferred: Federal (8,270 ) 25,423 3,572 State 6,618 1,976 3,875 Foreign 108 (394 ) (398 ) Total deferred provision (1,544 ) 27,005 7,049 Provision for income tax expense $ 64,863 141,313 152,380 The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2017 2016 2015 Tax expense at federal rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: Reduction of statutory federal rate (a) (8.0 ) — — State tax, net of federal income tax benefit 1.6 1.1 1.0 Provision for uncertain federal and state tax matters — — 0.9 Tax credits (1.3 ) (0.6 ) (0.5 ) Other — — (0.1 ) Effective tax rate 27.3 % 35.5 % 36.3 % (a) The Tax Cuts and Jobs Act (the “Tax Act”), signed into law on December 22, 2017, changes existing United States tax law and includes numerous provisions that affect businesses, including the Company. The Tax Act, for instance, introduces changes that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits. The Company accounted for the change in tax laws in accordance with ASC Topic 740 that provides guidance that a change in tax law or rates be recognized in the financial reporting period that includes the enactment date, which is the date the changes were signed into law. The income tax accounting effect of a change in tax laws or tax rates includes, for example, adjusting (or re-measuring) deferred tax liabilities and deferred tax assets, as well as evaluating whether a valuation allowance is needed for deferred tax assets. The Company re-measured its deferred tax liabilities and deferred tax assets as of December 22, 2017 resulting in a decrease to income tax expense of $19.3 million . The Company determined no valuation allowance was needed for any deferred tax assets as a result of the Act. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance regarding how a company is to reflect provisional amounts when necessary information is not yet available, prepared, or analyzed sufficiently to complete its accounting for the effect of the changes in the Tax Act. The income tax benefit of $19.3 million recorded during the year ended December 31, 2017 represents all known and estimable impacts of the Tax Act and is a provisional amount based on the Company’s current best estimate. This provisional amount incorporates assumptions made based upon the Company’s current interpretations of the Tax Act and may change as the Company receives additional clarification and implementation guidance, and as data becomes available allowing for a more accurate scheduling of the deferred tax assets and liabilities, including those related to items potentially impacted by the Tax Act such as accruals in 2017 related to payments not occurring until later in 2018, partnership basis, and tax implications of the Tax Act at state and local jurisdictions. Adjustments to this provisional amount through December 22, 2018 will be included in income from operations as an adjustment to tax expense in future periods. The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2017 2016 Deferred tax assets: Student loans $ 13,532 20,980 Deferred revenue 3,246 2,699 Securitizations 2,970 5,675 Intangible assets 2,899 4,821 Accrued expenses 2,246 3,533 Stock compensation 1,744 2,948 Total gross deferred tax assets 26,637 40,656 Less valuation allowance (254 ) (264 ) Net deferred tax assets 26,383 40,392 Deferred tax liabilities: Basis in certain derivative contracts 23,051 46,636 Partnership basis 21,474 4,976 Loan origination services 8,001 13,019 Depreciation 4,958 5,128 Debt repurchases 3,856 12,457 Debt and equity investments 1,767 3,246 Other 823 360 Total gross deferred tax liabilities 63,930 85,822 Net deferred tax liability $ (37,547 ) (45,430 ) The Company has performed an evaluation of the recoverability of deferred tax assets. In assessing the realizability of the Company's deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected taxable income, carry back opportunities, and tax planning strategies in making the assessment of the amount of the valuation allowance. With the exception of a portion of the Company's state net operating loss, it is management's opinion that it is more likely than not that the deferred tax assets will be realized and should not be reduced by a valuation allowance. The amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. As of December 31, 2017 and 2016 , the Company had a current income tax receivable of $42.4 million and $13.0 million , respectively, that is included in "other assets" on the consolidated balance sheets. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has four reportable operating segments. The Company's reportable operating segments include: • Loan Systems and Servicing • Tuition Payment Processing and Campus Commerce • Communications • Asset Generation and Management The Company earns fee-based revenue through its Loan Systems and Servicing, Tuition Payment Processing, and Communications operating segments. In addition, the Company earns interest income on its loan portfolio in its Asset Generation and Management operating segment. The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1, "Description of Business," for a description of each operating segment, including the primary products and services offered. The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP. The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. Income taxes are allocated based on 38% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities. Corporate and Other Activities Other business activities and operating segments that are not reportable are combined and included in Corporate and Other Activities. Corporate and Other Activities includes the following items: • Income earned on certain investment activities • Interest expense incurred on unsecured debt transactions • Other product and service offerings that are not considered reportable operating segments including, but not limited to, WRCM, the SEC-registered investment advisor subsidiary Corporate and Other Activities also includes certain corporate activities and overhead functions related to executive management, internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services. Segment Results The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 513 17 3 764,225 13,643 (7,976 ) 770,426 Interest expense 3 — 5,427 464,256 3,477 (7,976 ) 465,188 Net interest income 510 17 (5,424 ) 299,969 10,166 — 305,238 Less provision for loan losses — — — 14,450 — — 14,450 Net interest income (loss) after provision for loan losses 510 17 (5,424 ) 285,519 10,166 — 290,788 Other income: Loan systems and servicing revenue 223,000 — — — — — 223,000 Intersegment servicing revenue 41,674 — — — — (41,674 ) — Tuition payment processing, school information, and campus commerce revenue — 145,751 — — — — 145,751 Communications revenue — — 25,700 — — — 25,700 Other income — — — 13,424 39,402 — 52,826 Gain on sale of loans and debt repurchases, net — — — (1,567 ) 4,469 — 2,902 Derivative settlements, net — — — 1,448 (781 ) — 667 Derivative market value and foreign currency transaction adjustments, net — — — (19,357 ) 136 — (19,221 ) Total other income 264,674 145,751 25,700 (6,052 ) 43,226 (41,674 ) 431,625 Operating expenses: Salaries and benefits 156,256 69,500 14,947 1,548 59,633 — 301,885 Depreciation and amortization 2,864 9,424 11,835 — 15,418 — 39,541 Loan servicing fees — — — 22,734 — — 22,734 Cost to provide communications services — — 9,950 — — — 9,950 Other expenses 39,126 19,138 8,074 3,900 51,381 — 121,619 Intersegment expenses, net 31,871 9,079 2,101 42,830 (44,208 ) (41,674 ) — Total operating expenses 230,117 107,141 46,907 71,012 82,224 (41,674 ) 495,729 Income (loss) before income taxes 35,067 38,627 (26,631 ) 208,455 (28,832 ) — 226,684 Income tax (expense) benefit (18,128 ) (14,678 ) 10,120 (79,213 ) 37,036 — (64,863 ) Net income (loss) 16,939 23,949 (16,511 ) 129,242 8,204 — 161,821 Net loss (income) attributable to noncontrolling interests 12,640 — — — (1,295 ) — 11,345 Net income (loss) attributable to Nelnet, Inc. $ 29,579 23,949 (16,511 ) 129,242 6,909 — 173,166 Total assets as of December 31, 2017 $ 122,330 250,351 214,336 22,910,974 877,859 (411,415 ) 23,964,435 Year ended December 31, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 111 9 1 754,788 10,913 (5,076 ) 760,746 Interest expense — — 1,271 385,913 6,076 (5,076 ) 388,183 Net interest income 111 9 (1,270 ) 368,875 4,837 — 372,563 Less provision for loan losses — — — 13,500 — — 13,500 Net interest income (loss) after provision for loan losses 111 9 (1,270 ) 355,375 4,837 — 359,063 Other income: Loan systems and servicing revenue 214,846 — — — — — 214,846 Intersegment servicing revenue 45,381 — — — — (45,381 ) — Tuition payment processing, school information, and campus commerce revenue — 132,730 — — — — 132,730 Communications revenue — — 17,659 — — — 17,659 Enrollment services revenue — — — — 4,326 — 4,326 Other income — — — 15,709 38,221 — 53,929 Gain on sale of loans and debt repurchases, net — — — 5,846 2,135 — 7,981 Derivative settlements, net — — — (21,034 ) (915 ) — (21,949 ) Derivative market value and foreign currency transaction adjustments, net — — — 70,368 1,376 — 71,744 Total other income 260,227 132,730 17,659 70,889 45,143 (45,381 ) 481,266 Operating expenses: Salaries and benefits 132,072 62,329 7,649 1,985 51,889 — 255,924 Depreciation and amortization 1,980 10,595 6,060 — 15,298 — 33,933 Loan servicing fees — — — 25,750 — — 25,750 Cost to provide communications services — — 6,866 — — — 6,866 Cost to provide enrollment services — — — — 3,623 — 3,623 Other expenses 40,715 18,486 4,370 6,005 45,843 — 115,419 Intersegment expenses, net 24,204 6,615 958 46,494 (32,889 ) (45,381 ) — Total operating expenses 198,971 98,025 25,903 80,234 83,764 (45,381 ) 441,515 Income (loss) before income taxes 61,367 34,714 (9,514 ) 346,030 (33,784 ) — 398,814 Income tax (expense) benefit (23,319 ) (13,191 ) 3,615 (131,492 ) 23,074 — (141,313 ) Net income (loss) 38,048 21,523 (5,899 ) 214,538 (10,710 ) — 257,501 Net loss (income) attributable to noncontrolling interests — — — — (750 ) — (750 ) Net income (loss) attributable to Nelnet, Inc. $ 38,048 21,523 (5,899 ) 214,538 (11,460 ) — 256,751 Total assets as of December 31, 2016 $ 55,469 230,283 103,104 26,378,467 682,459 (256,687 ) 27,193,095 Year ended December 31, 2015 (a) Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 49 3 — 728,199 7,686 (1,828 ) 734,109 Interest expense — — — 297,625 6,413 (1,828 ) 302,210 Net interest income 49 3 — 430,574 1,273 — 431,899 Less provision for loan losses — — — 10,150 — — 10,150 Net interest income (loss) after provision for loan losses 49 3 — 420,424 1,273 — 421,749 Other income: Loan systems and servicing revenue 239,858 — — — — — 239,858 Intersegment servicing revenue 50,354 — — — — (50,354 ) — Tuition payment processing, school information, and campus commerce revenue — 120,365 — — — — 120,365 Enrollment services revenue — — — — 51,073 — 51,073 Other income — (925 ) — 15,939 32,248 — 47,262 Gain on sale of loans and debt repurchases, net — — — 2,034 3,119 — 5,153 Derivative settlements, net — — — (23,238 ) (1,012 ) — (24,250 ) Derivative market value and foreign currency transaction adjustments, net — — — 27,216 1,435 — 28,651 Total other income 290,212 119,440 — 21,951 86,863 (50,354 ) 468,112 Operating expenses: Salaries and benefits 134,635 55,523 — 2,172 55,585 — 247,914 Depreciation and amortization 1,931 8,992 — — 15,420 — 26,343 Loan servicing fees — — — 30,213 — — 30,213 Cost to provide enrollment services — — — — 41,733 — 41,733 Other expenses 57,799 15,161 — 5,083 44,971 — 123,014 Intersegment expenses, net 29,706 8,617 — 50,899 (38,868 ) (50,354 ) — Total operating expenses 224,071 88,293 — 88,367 118,841 (50,354 ) 469,217 Income (loss) before income taxes 66,190 31,150 — 354,008 (30,705 ) — 420,644 Income tax (expense) benefit (25,153 ) (11,838 ) — (134,522 ) 19,132 — (152,380 ) Net income (loss) 41,037 19,312 — 219,486 (11,573 ) — 268,264 Net loss (income) attributable to noncontrolling interests 20 — — — (305 ) — (285 ) Net income (loss) attributable to Nelnet, Inc. $ 41,057 19,312 — 219,486 (11,878 ) — 267,979 Total assets as of December 31, 2015 $ 80,459 229,615 68,760 29,634,280 624,953 (218,923 ) 30,419,144 (a) On December 31, 2015, the Company purchased ALLO. The ALLO assets acquired and liabilities assumed were recorded by the Company at their respective fair values at the date of acquisition. As such, ALLO's assets and liabilities as of December 31, 2015 are included in the Company's consolidated balance sheet. However, ALLO had no impact on the consolidated statement of income during 2015. |
Major Customer
Major Customer | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Major Customer | Major Customer The Company earns loan servicing revenue from a servicing contract with the Department that is currently set to expire on June 16, 2019. Revenue earned by the Company's Loan Systems and Servicing operating segment related to this contract was $155.8 million , $151.7 million , and $133.2 million for the years ended December 31, 2017, 2016, and 2015 , respectively. In April 2016, the Department's Office of Federal Student Aid 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 their GreatNet joint venture created 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. On August 1, 2017, the Department canceled the prior procurement process. On February 20, 2018, the Department's Office of Federal Student Aid released information regarding a new contract procurement process. The contract solicitation process is divided into two phases. Responses for Phase One are due on April 6, 2018. The contract solicitation requests responses from interested vendors for nine components. Vendors may provide a response for an individual, multiple, or all components. The Company intends to respond to Phase One of the solicitation. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office space and equipment under operating leases. As operating leases expire, it is expected that they will be replaced with similar leases. Future minimum lease payments under these leases are shown below: 2018 $ 5,277 2019 4,337 2020 3,628 2021 2,002 2022 1,649 2023 and thereafter 4,857 Total minimum lease payments $ 21,750 Total rental expense incurred by the Company for the years ended December 31, 2017 , 2016 , and 2015 was $5.7 million , $6.0 million , and $5.5 million , respectively. |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Defined Contribution Benefit Plan | Defined Contribution Benefit Plan The Company has a 401(k) savings plan that covers substantially all of its employees. Employees may contribute up to 100 percent of their pre-tax salary, subject to IRS limitations. The Company matches up to 100 percent on the first 3 percent of contributions and 50 percent on the next 2 percent . The Company made contributions to the plan of $6.2 million , $5.1 million , and $4.6 million during the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation Plan | Stock Based Compensation Plans Restricted Stock Plan The following table summarizes restricted stock activity: Year ended December 31, 2017 2016 2015 Non-vested shares at beginning of year 447,380 471,597 499,463 Granted 107,237 123,181 126,946 Vested (131,988 ) (113,507 ) (108,424 ) Canceled (24,419 ) (33,891 ) (46,388 ) Non-vested shares at end of year 398,210 447,380 471,597 As of December 31, 2017 , there was $8.1 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below. 2018 $ 3,211 2019 1,960 2020 1,211 2021 731 2022 439 2023 and thereafter 596 $ 8,148 For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized compensation expense of $4.2 million , $4.1 million , and $5.2 million , respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income. Employee Share Purchase Plan The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 percent discount from market value. During the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized compensation expense of approximately $197,000 , $287,000 , and $147,000 , respectively, in connection with issuing 16,989 shares, 25,551 shares, and 23,912 shares, respectively, under this plan. Non-employee Directors Compensation Plan The Company has a compensation plan for non-employee directors pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of cash or Class A common stock. If a non-employee director elects to receive Class A common stock, the number of shares of Class A common stock that are awarded is equal to the amount of the annual retainer fee otherwise payable in cash divided by 85 percent of the fair market value of a share of Class A common stock on the date the fee is payable. Non-employee directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors. For the years ended December 31, 2017 , 2016 , and 2015 , the Company recognized approximately $922,000 , $922,000 , and $905,000 , respectively, of expense related to this plan. The following table provides the number of shares awarded under this plan for the years ended December 31, 2017 , 2016 , and 2015 . Shares issued - not deferred Shares- deferred Total Year ended December 31, 2017 6,855 10,974 17,829 Year ended December 31, 2016 10,799 13,644 24,443 Year ended December 31, 2015 8,164 10,406 18,570 As of December 31, 2017 , a cumulative amount of 171,519 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties Transactions with Union Bank and Trust Company Union Bank and Trust Company ("Union Bank") is controlled by Farmers & Merchants Investment Inc. (“F&M”), which owns a majority of Union Bank's common stock and a minority share of Union Bank's non-voting preferred stock. Michael S. Dunlap, Executive Chairman and a member of the board of directors and a significant shareholder of the Company, along with his spouse and children, owns or controls a significant portion of the stock of F&M, and Mr. Dunlap's sister, Angela L. Muhleisen, along with her spouse and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Chairman of F&M. Ms. Muhleisen serves as a Director and Chief Executive Officer of F&M and as a Director, Chairperson, President, and Chief Executive Officer of Union Bank. Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock. The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below. Loan Purchases On December 22, 2014, the Company entered into an agreement with Union Bank in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans. The Company committed to purchase, or arrange for a designee to purchase, all volume originated by Union Bank under this agreement. During 2016 and 2015, the Company purchased $29.6 million (par value) and $4.4 million (par value), respectively, of private education loans from Union Bank, pursuant to this agreement. No loans were originated under this agreement in 2017. In addition to the agreement previously discussed, during 2017, the Company also purchased $2.9 million (par value) of private education loans and $10.3 million (par value) of consumer loans from Union Bank. Loan Servicing The Company serviced $462.3 million , $483.8 million , and $563.1 million of FFELP and private education loans for Union Bank as of December 31, 2017 , 2016 , and 2015 , respectively. Servicing revenue earned by the Company from servicing loans for Union Bank was $0.5 million , $0.6 million , and $0.5 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. As of December 31, 2017 and 2016 , accounts receivable includes approximately $42,000 and $36,000 , respectively, due from Union Bank for loan servicing. Funding - Participation Agreement The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loans (the “FFELP Participation Agreement”). The Company uses this facility as a source to fund FFELP student loans. As of December 31, 2017 and 2016 , $552.6 million and $496.8 million , respectively, of loans were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five business days' notice. This agreement provides beneficiaries of Union Bank's grantor trusts with access to investments in interests in student loans, while providing liquidity to the Company on a short-term basis. The Company can participate loans to Union Bank to the extent of availability under the grantor trusts, up to $750 million or an amount in excess of $750 million if mutually agreed to by both parties. Loans participated under this agreement have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets. Operating Cash Accounts The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (“STFIT”) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the accompanying consolidated balance sheets. As of December 31, 2017 and 2016 , the Company had $115.8 million and $74.3 million , respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $56.0 million and $12.5 million as of December 31, 2017 and 2016 , respectively, represented cash collected for customers. Interest income earned by the Company on the amounts invested in the STFIT and in cash operating accounts for the years ended December 31, 2017 , 2016 , and 2015 , was $0.9 million , $0.4 million , and $0.2 million , respectively. 529 Plan Administration Services The Company provides certain 529 Plan administration services to certain college savings plans (the “College Savings Plans”) through a contract with Union Bank, as the program manager. Union Bank is entitled to a fee as program manager pursuant to its program management agreement with the College Savings Plans. For the years ended December 31, 2017 , 2016 , and 2015 , the Company has received fees of $2.0 million , $1.6 million , and $3.5 million , respectively, from Union Bank related to the administration services provided to the College Savings Plans. Lease Arrangements Union Bank leases approximately 4,000 square feet in the Company's corporate headquarters building. Union Bank paid the Company approximately $74,000 , $73,000 , and $73,000 for commercial rent and storage income during 2017 , 2016 , and 2015 , respectively. The lease agreement expires on June 30, 2023. Other Fees Paid to Union Bank During the years ended December 31, 2017 , 2016 , and 2015 , the Company paid Union Bank approximately $127,000 , $126,000 , and $111,000 , respectively, in cash management fees. During the years ended December 31, 2016 and 2015, the Company paid Union Bank approximately $13,000 and $47,000 , respectively, in commissions. In addition, for the year ended December 31, 2015, the Company paid Union Bank approximately $205,000 in connection with servicing opportunities for various asset classes, and $36,000 for administrative services. Other Fees Received from Union Bank During the years ended December 31, 2017 , 2016 , and 2015 , Union Bank paid the Company approximately $219,000 , $209,000 , and $201,000 , respectively, under an employee sharing arrangement, and during the years ended December 31, 2016 and 2015, Union Bank paid the Company approximately $10,000 and $19,000 , respectively, for health and productivity services. During the year ended December 31, 2017, Union Bank paid the Company approximately $11,000 in payment processing fees (net of merchant fees of approximately $1,000 ). 401(k) Plan Administration Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $241,000 , $280,000 , and $469,000 during the years ended December 31, 2017 , 2016 , and 2015 , respectively. Investment Services Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. On May 9, 2011, WRCM, an SEC-registered investment advisor and a subsidiary of the Company, entered into a management agreement with Union Bank, effective as of May 1, 2011, under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts. The agreement provides that Union Bank will pay to WRCM annual fees of 25 basis points on the outstanding balance of the investments in the trusts. As of December 31, 2017 , the outstanding balance of investments in the trusts was $665.9 million . In addition, Union Bank will pay additional fees to WRCM of up to 50 percent of the gains from the sale of securities from the trusts or securities being called prior to the full contractual maturity. For the years ended December 31, 2017 , 2016 , and 2015 , the Company earned $9.2 million , $4.5 million , and $2.7 million , respectively, of fees under this agreement. In January 2012 and October 2015, WRCM entered into management agreements with Union Bank under which it was designated to serve as investment advisor with respect to the assets within several trusts established by Mr. Dunlap and his spouse. In January 2016, WRCM entered into a similar management agreement with Union Bank with respect to several trusts established in December 2015 by Stephen F. Butterfield, Vice Chairman and a member of the board of directors of the Company, and his spouse. Union Bank serves as trustee for the trusts. Per the terms of the agreements, Union Bank pays WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter. Mr. Dunlap and his spouse contributed a total of 3,375,000 and 3,000,000 shares of the Company's Class B common stock to the trusts upon the establishment of the trusts in 2011 and 2015, respectively, and Mr. Butterfield and his spouse contributed a total of 1,200,000 shares of the Company's Class B common stock upon the establishment of the trusts in 2016. For the years ended December 31, 2017 , 2016 , and 2015 , the Company earned approximately $161,000 , $142,000 , and $71,000 , respectively, of fees under these agreements. As of December 31, 2017 and 2016 , accounts receivable included $0.2 million and $0.8 million , respectively, due from Union Bank related to fees earned by WRCM from the investment services described above. WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto. Mr. Dunlap, Union Financial Services, Inc., which is owned 50 percent by each Mr. Dunlap and Mr. Butterfield, Jeffrey R. Noordhoek (an executive officer of the Company), Ms. Muhleisen and her spouse, and WRCM have invested in certain of these funds. Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause. WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 percent of such amount to Union Bank as custodian. As of December 31, 2017 , the outstanding balance of investments in these funds was $149.4 million . For the years ended December 31, 2017 , 2016 , and 2015 , the Company paid Union Bank $0.3 million , $0.4 million , and $0.4 million , respectively, as custodian. Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") David Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl. On March 17, 2015 and July 7, 2017, the Company made a $40.5 million and $10.4 million preferred stock investment, respectively, in Hudl. Prior to these investments, the Company and Mr. Dunlap made separate equity investments in Hudl. The Company and Mr. Dunlap, along with his children, currently hold combined direct and indirect equity ownership interests in Hudl of 19.7% and 3.4% , respectively. The Company's and Mr. Dunlap's direct and indirect equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's and Mr. Dunlap's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl under the cost method. The Company's investment in Hudl is included in "investments and notes receivable" in the Company's consolidated balance sheet. The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate. Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located. One investment includes the development of a building in Lincoln's Haymarket District that is the new headquarters of Hudl, in which Hudl is the primary tenant in this building. Transactions with Assurity Life Insurance Company ("Assurity") Thomas Henning, who has served on the Company's Board of Directors since 2003, is the President and Chief Executive Officer of Assurity. During the year ended December 31, 2017, Nelnet Business Solutions paid $1.5 million to Assurity for insurance premiums for insurance on certain tuition payment plans. As part of providing the tuition payment plan insurance to Nelnet Business Solutions, Assurity entered into a reinsurance agreement with the Company's insurance subsidiary, under which Assurity paid the Company's insurance subsidiary reinsurance premiums of $1.4 million in 2017, and the Company's insurance subsidiary paid claims on such reinsurance to Assurity of $0.7 million in 2017. In addition, Assurity pays Nelnet Business Solutions a partial refund annually based on claim experience, which was approximately $10,000 for the year ended December 31, 2017. During the years ended December 31, 2017, 2016, and 2015, the Company made available to its employees certain voluntary insurance products through Assurity. Premiums are paid by participants and are remitted to Assurity by the Company on behalf of the participants. The Company remitted to Assurity approximately $181,000 , $166,000 , and $116,000 in premiums related to these products during 2017, 2016, and 2015, respectively. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 . As of December 31, 2017 As of December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (available-for-sale and trading): (a) Student loan and other asset-backed securities $ — 76,866 76,866 — 103,780 103,780 Equity securities 3,928 — 3,928 2,694 — 2,694 Debt securities 108 — 108 119 — 119 Total investments (available-for-sale and trading) 4,036 76,866 80,902 2,813 103,780 106,593 Derivative instruments (b) — 818 818 — 87,531 87,531 Total assets $ 4,036 77,684 81,720 2,813 191,311 194,124 Liabilities: Derivative instruments (b): $ — 7,063 7,063 — 77,826 77,826 Total liabilities $ — 7,063 7,063 — 77,826 77,826 (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2017 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 23,106,440 21,814,507 — — 23,106,440 Cash and cash equivalents 66,752 66,752 66,752 — — Investments (available-for-sale) 80,902 80,902 4,036 76,866 — Notes receivable 16,393 16,393 — 16,393 — Restricted cash 688,193 688,193 688,193 — — Restricted cash – due to customers 187,121 187,121 187,121 — — Accrued interest receivable 430,385 430,385 — 430,385 — Derivative instruments 818 818 — 818 — Financial liabilities: Bonds and notes payable 21,521,463 21,356,573 — 21,521,463 — Accrued interest payable 50,039 50,039 — 50,039 — Due to customers 187,121 187,121 187,121 — — Derivative instruments 7,063 7,063 — 7,063 — As of December 31, 2016 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: 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 that are measured at fair value on a recurring basis are previously discussed. The remaining financial assets and liabilities were estimated using the following methods and assumptions: Loans Receivable If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions to determine aggregate portfolio yield, net present value, and average life. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants. Notes Receivable Fair values for notes receivable were determined by using model-derived valuations with observable inputs, including current market rates. Cash and Cash Equivalents, Restricted Cash, Restricted Cash – Due to Customers, Accrued Interest Receivable/Payable, and Due to Customers The carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments. Bonds and Notes Payable Bonds and notes payable are accounted for at cost in the financial statements except when denominated in a foreign currency. Foreign currency-denominated borrowings are re-measured at current spot rates in the financial statements. The fair value of bonds and notes payable was determined from quotes from broker-dealers or through standard bond pricing models using the stated terms of the borrowings, observable yield curves, market credit spreads, and weighted average life of underlying collateral. Fair value adjustments for unsecured corporate debt are made based on indicative quotes from observable trades. Limitations The fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect the estimates. |
Legal Proceedings Legal Proceed
Legal Proceedings Legal Proceedings | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. In addition, from time to time the Company receives information and document requests from state or federal regulators concerning its business practices. The Company cooperates with these inquiries and responds to the requests. While the Company cannot predict the ultimate outcome of any regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations. On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of these claims, lawsuits, and proceedings will not have a material adverse effect on the Company's business, financial position, or results of operations. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) 2017 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 76,925 79,842 75,237 73,235 Less provision for loan losses 1,000 3,000 6,700 3,750 Net interest income after provision for loan losses 75,925 76,842 68,537 69,485 Loan systems and servicing revenue 54,229 56,899 55,950 55,921 Tuition payment processing, school information, and campus commerce revenue 43,620 34,224 35,450 32,457 Communications revenue 5,106 5,719 6,751 8,122 Other income 12,632 12,485 19,756 7,952 Gain on sale of loans and debt repurchases, net 4,980 442 116 (2,635 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net (4,830 ) (27,910 ) 7,173 7,014 Salaries and benefits (71,863 ) (74,628 ) (74,193 ) (81,201 ) Depreciation and amortization (8,598 ) (9,038 ) (10,051 ) (11,854 ) Loan servicing fees (6,025 ) (5,628 ) (8,017 ) (3,064 ) Cost to provide communications services (1,954 ) (2,203 ) (2,632 ) (3,160 ) Operating expenses (26,547 ) (26,521 ) (29,743 ) (38,809 ) Income tax (expense) benefit (28,755 ) (16,032 ) (25,562 ) 5,486 Net income 47,920 24,651 43,535 45,714 Net loss (income) attributable to noncontrolling interests 2,106 4,086 2,768 2,386 Net income attributable to Nelnet, Inc. $ 50,026 28,737 46,303 48,100 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.18 0.68 1.11 1.17 2016 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 101,609 92,200 99,795 78,960 Less provision for loan losses 2,500 2,000 6,000 3,000 Net interest income after provision for loan losses 99,109 90,200 93,795 75,960 Loan systems and servicing revenue 52,330 54,402 54,350 53,764 Tuition payment processing, school information, and campus commerce revenue 38,657 30,483 33,071 30,519 Communications revenue 4,346 4,478 4,343 4,492 Enrollment services revenue 4,326 — — — Other income 13,796 9,765 15,150 15,218 Gain on sale of loans and debt repurchases, net 101 — 2,160 5,720 Derivative market value and foreign currency transaction adjustments and derivative settlements, net (28,691 ) (40,702 ) 36,001 83,187 Salaries and benefits (63,242 ) (60,923 ) (63,743 ) (68,017 ) Depreciation and amortization (7,640 ) (8,183 ) (8,994 ) (9,116 ) Loan servicing fees (6,928 ) (7,216 ) (5,880 ) (5,726 ) Cost to provide communications services (1,703 ) (1,681 ) (1,784 ) (1,697 ) Cost to provide enrollment services (3,623 ) — — — Operating expenses (28,376 ) (29,409 ) (26,391 ) (31,245 ) Income tax (expense) benefit (24,433 ) (15,036 ) (47,715 ) (54,128 ) Net income 48,029 26,178 84,363 98,931 Net loss (income) attributable to noncontrolling interests (68 ) (28 ) (69 ) (585 ) Net income attributable to Nelnet, Inc. $ 47,961 26,150 84,294 98,346 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.11 0.61 1.98 2.32 |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Financial Statements | Condensed Parent Company Financial Statements The following represents the condensed balance sheets as of December 31, 2017 and 2016 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2017 for Nelnet, Inc. The Company is limited in the amount of funds that can be transferred to it by its subsidiaries through intercompany loans, advances, or cash dividends. These limitations relate to the restrictions by trust indentures under the education lending subsidiaries debt financing arrangements. The amounts of cash and investments restricted in the respective reserve accounts of the education lending subsidiaries are shown on the consolidated balance sheets as restricted cash. Balance Sheets (Parent Company Only) As of December 31, 2017 and 2016 2017 2016 Assets: Cash and cash equivalents $ 21,001 29,734 Investments and notes receivable 149,236 167,711 Investment in subsidiary debt 75,659 71,815 Restricted cash 44,149 7,805 Investment in subsidiaries 1,681,690 1,537,507 Notes receivable from subsidiaries 212,077 161,284 Other assets 131,790 136,685 Fair value of derivative instruments 818 86,379 Total assets $ 2,316,420 2,198,920 Liabilities: Notes payable $ 79,120 48,085 Other liabilities 76,638 74,706 Fair value of derivative instruments 7,063 10,221 Total liabilities 162,821 133,012 Equity: Nelnet, Inc. shareholders' equity: Common stock 408 421 Additional paid-in capital 521 420 Retained earnings 2,143,983 2,056,084 Accumulated other comprehensive earnings 4,617 4,730 Total Nelnet, Inc. shareholders' equity 2,149,529 2,061,655 Noncontrolling interest 4,070 4,253 Total equity 2,153,599 2,065,908 Total liabilities and shareholders' equity $ 2,316,420 2,198,920 Statements of Income (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Investment interest income $ 13,060 9,794 5,776 Interest expense on bonds and notes payable 3,315 6,049 6,242 Net interest income (expense) 9,745 3,745 (466 ) Other income: Other income 3,483 7,037 4,012 Gain from debt repurchases, net 2,964 8,083 4,904 Equity in subsidiaries income 170,897 239,405 276,825 Derivative market value adjustments and derivative settlements, net (603 ) 45,203 8,416 Total other income 176,741 299,728 294,157 Operating expenses 6,117 8,183 5,057 Income before income taxes 180,369 295,290 288,634 Income tax expense 7,491 38,642 20,655 Net income 172,878 256,648 267,979 Net loss attributable to noncontrolling interest 288 103 — Net income attributable to Nelnet, Inc. $ 173,166 256,751 267,979 Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Net income $ 172,878 256,648 267,979 Other comprehensive (loss) income: Available-for-sale securities: Unrealized holding gains (losses) arising during period, net 2,349 5,789 (1,570 ) Reclassification adjustment for gains recognized in net income, net of losses (2,528 ) (1,907 ) (2,955 ) Income tax effect 66 (1,436 ) 1,674 Total other comprehensive (loss) income (113 ) 2,446 (2,851 ) Comprehensive income 172,765 259,094 265,128 Comprehensive loss attributable to noncontrolling interest 288 103 — Comprehensive income attributable to Nelnet, Inc. $ 173,053 259,197 265,128 Statements of Cash Flows (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Net income attributable to Nelnet, Inc. $ 173,166 256,751 267,979 Net loss attributable to noncontrolling interest (288 ) (103 ) — Net income 172,878 256,648 267,979 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 420 391 327 Derivative market value adjustment 7,591 (62,268 ) (31,411 ) Proceeds from termination of derivative instruments, net of payments 2,100 3,999 65,527 Payment to enter into derivative instrument (929 ) — — Proceeds from clearinghouse to settle variation margin, net 48,985 — — Equity in earnings of subsidiaries (170,897 ) (239,405 ) (276,825 ) Gain from sales of available-for-sale securities, net of losses (2,528 ) (1,907 ) (2,955 ) Gain from debt repurchases, net (2,964 ) (8,083 ) (4,904 ) Deferred income tax (benefit) expense (8,056 ) 20,071 3,228 Non-cash compensation expense 4,416 4,348 5,347 Other 2,967 1,117 1,946 Decrease (increase) in other assets 4,171 32,262 (8,541 ) Increase (decrease) in other liabilities 10,104 (594 ) 6,597 Net cash provided by operating activities 68,258 6,579 26,315 Cash flows from investing activities: (Increase) decrease in restricted cash (9,004 ) 6,997 (13,825 ) Purchases of available-for-sale securities (127,567 ) (94,920 ) (98,332 ) Proceeds from sales of available-for-sale securities 156,727 139,427 94,722 Capital contributions/distributions to/from subsidiaries, net 29,426 223,386 120,291 (Increase) decrease in notes receivable from subsidiaries (50,793 ) 8,561 (84,061 ) Proceeds from investments and notes receivable 4,823 9,952 12,253 (Purchases of) proceeds from subsidiary debt, net (3,844 ) (13,800 ) 72,125 Purchases of investments and issuances of notes receivable (18,023 ) (4,365 ) (53,388 ) Business acquisition, net of cash acquired — — (45,916 ) Net cash (used in) provided by investing activities (18,255 ) 275,238 3,869 Cash flows from financing activities: Payments on notes payable (27,480 ) (412,000 ) (42,541 ) Proceeds from issuance of notes payable 61,059 230,000 116,460 Payments of debt issuance costs — (613 ) (773 ) Dividends paid (24,097 ) (21,188 ) (19,025 ) Repurchases of common stock (68,896 ) (69,091 ) (96,169 ) Proceeds from issuance of common stock 678 889 801 Issuance of noncontrolling interest — 501 — Distribution to noncontrolling interest — — (230 ) Net cash used in financing activities (58,736 ) (271,502 ) (41,477 ) Net (decrease) increase in cash and cash equivalents (8,733 ) 10,315 (11,293 ) Cash and cash equivalents, beginning of period 29,734 19,419 30,712 Cash and cash equivalents, end of period $ 21,001 29,734 19,419 Cash disbursements made for: Interest $ 2,882 5,533 5,914 Income taxes, net of refunds $ 96,721 115,415 147,130 Noncash investing and financing activities: Issuance of noncontrolling interest $ — — 3,750 Contributions of investments to subsidiaries, net $ 2,092 1,884 — |
Summary of Significant Accoun33
Summary of Significant Accounting Policies and Practices Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
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 and has a disproportional 80 percent of the voting rights related to all operating decisions for ALLO's business. See note 1, “Description of Business,” for a description of ALLO, including the primary services offered. ALLO's 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) has issued a $270.0 million line of credit to ALLO. As of December 31, 2017 and 2016, the outstanding balance, including accrued interest, on the line of credit was $193.1 million and $58.0 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 15, “Segment Reporting,” for disclosure of ALLO’s total assets and results of operations (included in the "Communications" operating segment), note 10, "Goodwill," for disclosure of ALLO's goodwill, and note 11, “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 Interests | Noncontrolling Interests Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities: • Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10 percent minority membership interests on January 1, 2012. • ALLO Communications LLC - On December 31, 2015, the Company purchased 92.5 percent of the ownership interests of ALLO. On January 1, 2016, the Company sold a 1.0 percent ownership interest in ALLO to a non-related third-party. The remaining 7.5 percent of the ownership interests of ALLO is owned by ALLO management, who has the opportunity to earn an additional 11.5 percent (up to 19 percent ) of the total ownership interests based on the financial performance of ALLO. • 401 Building, LLC (“401 Building”) - 401 Building is an entity established on October 19, 2015 for the sole purpose of acquiring, developing, and operating a commercial building. The Company owns 50 percent of 401 Building. • TDP Phase Three, LLC (“TDP”) and TDP Phase Three-NMTC ("TDP-NMTC") - TDP and TDP-NMTC are entities that were established in October 2015 for the sole purpose of developing and operating the new headquarters of Hudl. The Company owns 25 percent of each TDP and TDP-NMTC. • 330-333 Building, LLC ("330-333 Building") - 330-333 Building is an entity established on January 14, 2016 for the sole purpose of acquiring, developing, and operating a commercial building. The Company owns 50 percent of 330-333 Building. The Company is a tenant in the 401 Building, the headquarters of Hudl, and the 330-333 Building. Because the Company, as lessee, was involved in the asset construction, 401 Building, TDP, TDP-NMTC, and 330-333 Building are included in the Company's consolidated financial statements. • GreatNet Solutions, LLC ("GreatNet") - GreatNet is a joint venture created to respond to an initiative by the Department for the procurement of a contract for federal student loan servicing. As of December 31, 2017, Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes each owned 50 percent of the ownership interests in GreatNet. 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. On February 7, 2018, the Company purchased 100 percent of the outstanding stock of Great Lakes. See note 2, “Recent Developments” for additional information on this business acquisition. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. |
Loans Receivable | Loans Receivable Loans consist of federally insured student loans, private education loans, and consumer loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2017 and 2016 . Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five and ten years. Consolidation loans have repayment periods of twelve to thirty years. FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school. The borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment. Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods. In addition, eligible borrowers may qualify for income-driven repayment plans offered by the Department. These plans determine the borrower's payment amount based on their discretionary income and may extend their repayment period. Interest rates on federally insured student loans may be fixed or variable, dependent upon the type of loan, terms of the loan agreements, and date of origination. Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Loans also include private education and consumer loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to 30 years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to 6 years. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents management's estimate of probable losses on loans. The provision for loan losses reflects the activity for the applicable period and provides an allowance at a level that the Company's management believes is appropriate to cover probable losses inherent in the loan portfolio. The Company evaluates the adequacy of the allowance for loan losses on its federally insured loan portfolio separately from its private education and consumer loan portfolios. These evaluation processes are subject to numerous judgments and uncertainties. The allowance for the federally insured loan portfolio is based on periodic evaluations of the Company's loan portfolios considering loans in repayment versus those in a nonpaying status, delinquency status, trends in defaults in the portfolio based on Company and industry data, past experience, trends in student loan claims rejected for payment by guarantors, changes to federal student loan programs, current economic conditions, and other relevant factors. The federal government guarantees 97 percent of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98 percent for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company's loss exposure on the outstanding balance of the Company's federally insured portfolio. Student loans disbursed prior to October 1, 1993 are fully insured. In determining the appropriate allowance for loan losses on the private education and consumer loans, the Company considers several factors, including: loans in repayment versus those in a nonpaying status, delinquency status, type of program, trends in defaults in the portfolio based on Company and industry data, past experience, current economic conditions, and other relevant factors. The Company places private education and consumer loans on nonaccrual status when the collection of principal and interest is 90 days past due, and charges off the loan when the collection of principal and interest is 120 days past due. Collections, if any, are reflected as a recovery through the allowance for loan losses. Management has determined that each of the federally insured loan portfolio, private education loan portfolio, and consumer loan portfolio meets the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 4 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables. The Company collectively evaluates loans for impairment and as of December 31, 2017 and 2016 , the Company did not have any impaired loans as defined in the Receivables Topic of the FASB Accounting Standards Codification. For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. |
Cash and Cash Equivalents and Statement of Cash Flow | Cash and Cash Equivalents and Statement of Cash Flows For purposes of the consolidated statements of cash flows, the Company considers all investments with original maturities of three months or less to be cash equivalents. Accrued interest on loans purchased and sold is included in cash flows from operating activities in the respective period. |
Investments | Investments The Company's available-for-sale investment portfolio consists of student loan and other asset-backed securities and equity and debt securities. These securities are carried at fair value, with the temporary changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this category (including the student loan and other asset-backed securities) is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Other-than-temporary impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than the amortized cost basis, the financial condition and near-term prospects of the issuer of the security (considering factors such as adverse conditions specific to the security and ratings agency actions), and the intent and ability of the Company to retain the investment to allow for any anticipated recovery in fair value. The entire fair value loss on a security that has experienced an other-than-temporary impairment is recorded in earnings if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell the security before the expected recovery of the loss. However, if the impairment is other-than-temporary, and either of those two conditions does not exist, the portion of the impairment related to credit losses is recorded in earnings and the impairment related to other factors is recorded in other comprehensive income. Securities classified as trading are accounted for at fair value, with unrealized gains and losses included in "other income" in the consolidated statements of income. When an investment is sold, the cost basis is determined through specific identification of the security sold. The Company accounts for investments in which it does not have significant influence or a controlling financial interest using the cost method of accounting. Cost method investments are recorded at cost. Cost method investments are evaluated for other-than-temporary impairment in the same manner as described above for available-for-sale investments. The Company accounts for investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized. |
Restricted Cash | Restricted Cash Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses. |
Restricted Cash - Due to Customers | Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. In addition, as part of the Company's Tuition Payment Processing and Campus Commerce operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. Cash collected for customers and the related liability are included in the accompanying consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon individual customer experience, as well as the age of receivables and likelihood of collection. |
Business Combinations | Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings |
Goodwill and Intangible Assets | Goodwill The Company reviews goodwill for impairment annually (in the fourth quarter) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test (described below), otherwise no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. If the Company elects to not perform a qualitative assessment or if the Company determines it is more likely than not that the fair value of a reporting unit is less than the carrying amount, then the Company performs a quantitative impairment test on goodwill. In the quantitative test, the Company compares the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is considered not impaired and the Company is not required to perform further testing. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company would record an impairment loss equal to the difference. Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, and determination of appropriate market comparables. Actual future results may differ from those estimates. See note 10 for information regarding the Company's annual goodwill impairment review. Intangible Assets Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method. The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation and amortization. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset |
Impairment of Long-Lived Assets | Impairment of Long‑Lived Assets The Company reviews its long-lived assets, such as property and equipment and purchased intangibles subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company uses estimates to determine the fair value of long-lived assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimating fair value if such methods are determined to be more appropriate. Assumptions and estimates about future values and remaining useful lives of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results. |
Fair Value Measurements | Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include: • Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable. • Level 3: Instruments whose primary value drivers are unobservable . Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. The Company's accounting policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when (i) persuasive evidence of an arrangement exists between the Company and the customer, (ii) delivery of the product to the customer has occurred or service has been provided to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collectability of the sales price is reasonably assured. Additional information related to the Company's revenue recognition of specific items is further provided below. Loan interest income - Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. In addition, the Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and Consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer loans typically starts upon origination of the loan. The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance is accrued based upon the fiscal quarter average rate of 13-week Treasury Bill auctions (for loans originated prior to January 1, 2000), the fiscal quarter average rate of the daily three-month financial commercial paper rates (for loans originated on and after January 1, 2000) or the fiscal quarter average rate of daily one-month LIBOR rates (for loans originated on and after January 1, 2000, and for lenders which elected to change the special allowance index to one-month LIBOR effective April 1, 2012) relative to the yield of the student loan. The Company recognizes 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 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 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. The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income. Loan systems and servicing revenue – Loan systems and servicing revenue consists of the following items: • Loan and guaranty servicing fees – Loan servicing fees are determined according to individual agreements with customers and are calculated based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Guaranty servicing fees were generally calculated based on the number of loans serviced, volume of loans serviced, or amounts collected. Revenue is recognized over the period in which services are provided to customers, and when ultimate collection is assured. • Software services revenue – Software services revenue is determined from individual agreements with customers and includes license and maintenance fees associated with student loan software products. Computer and software consulting and remote hosting revenues are recognized over the period in which services are provided to customers. • Outsourced services revenue - Outsourced services revenue is determined from individual agreements with customers and generally recognized over the period in which services are provided to customers. • Guaranty collections revenue – Guaranty collections revenue was earned when collected. Collection costs paid to third parties associated with this revenue was expensed upon successful collection. Tuition payment processing, school information, and campus commerce revenue - Tuition payment processing, school information, and campus commerce revenue includes actively managed tuition payment solutions, remote hosted school information systems and learning management software, professional development and educational instruction services, assistance with financial needs assessment and donor management, and payment processing services. Fees for these services are recognized over the period in which services are provided to customers. Cash received in advance of the delivery of services is included in deferred revenue. Communications revenue - Communications revenue based on a flat fee, derived principally from internet, television, and telephone services are billed in advance and recognized in subsequent periods when the services are provided. Revenues for usage-based services, such as access charges billed to other telephone carriers for originating and terminating long-distance calls on the Company's network, are billed in arrears. The Company recognizes revenue from these services in the period the services are rendered rather than billed. Earned but unbilled usage-based services are recorded in accounts receivable. Costs to provide communication services is primarily associated with television programming costs. The Company has various contracts to obtain video programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in the month the programming is available for exhibition. Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Other costs included in costs to provide communication services include connectivity, franchise, and other regulatory costs directly related to providing internet and voice services. Enrollment services revenue - Enrollment services revenue was derived from fees which were earned through the delivery of qualified inquiries or clicks. Delivery was deemed to have occurred at the time a qualified inquiry or click was delivered to the customer, provided that no significant obligations remained. For a portion of this revenue, the Company had agreements with providers of online media or traffic ("inquiry generation vendors") used in the generation of inquiries or clicks. The Company received a fee from its customers and paid a fee to the inquiry generation vendors either on a cost per inquiry, cost per click, or cost per number of impressions basis. The Company was the primary obligor in the transaction. As a result, the fees paid by the Company's customers were recognized as revenue and the fees paid to its inquiry generation vendors are included in "cost to provide enrollment services" in the Company's consolidated statements of income. On February 1, 2016, the Company sold 100 percent of the membership interests in Sparkroom LLC, which included the Company's inquiry management products and services. After this sale, the Company no longer earns enrollment services revenue. Other income - Other income consists primarily of the following items: • Realized and unrealized gains and losses on investments • Borrower late fee income - Late fee income is earned by the education lending subsidiaries and is recognized when payments are collected from the borrower. • Investment advisory income - Investment advisory services are provided by the Company through an SEC-registered investment advisor subsidiary under various arrangements. The Company earns annual fees based on the outstanding balance of investments and certain performance measures, which are recognized monthly as earned. • Digital marketing and content solutions - The Company earned revenue related to digital marketing and content solution products and services under the brand name Peterson's. These products and services included test preparation study guides, school directories and databases, career exploration guides, on-line courses and test preparation, scholarship search and selection data, career planning information and guides, and on-line information about colleges and universities. Several content solutions services included services to connect students to colleges and universities, and were sold based on subscriptions. Revenue from sales of subscription services was recognized ratably over the term of the contract as it was earned. Subscription revenue received or receivable in advance of the delivery of services was included in deferred revenue. Revenue from the sale of print products was generally earned and recognized, net of estimated returns, upon shipment or delivery. All other digital marketing and content solutions revenue was recognized over the period in which services were provided to customers. On December 31, 2017, the Company sold Peterson's. See note 10 for additional information regarding this sale. |
Interest Expense | Interest Expense Interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method |
Transfer of Financial Assets and Extinguishment of Liabilities | Transfer of Financial Assets and Extinguishments of Liabilities The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party. The Company recognizes the results of a transfer of loans and the extinguishment of debt based upon the settlement date of the transaction |
Derivative Accounting | Derivative Accounting 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). The Company determines the fair value for its derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument or (ii) counterparty valuations. The factors that impact the fair value of the Company's derivatives include interest rates, time value, forward interest rate curve, and volatility factors, as well as foreign exchange rates. Pricing models and their underlying assumptions impact the amount and timing of realized and unrealized gains and losses recognized, and the use of different pricing models or assumptions could produce different financial results. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting. As a result, the change in fair value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve and fluctuations in currency rates can significantly impact the valuation of the Company’s derivatives, and therefore impact the financial position and results of operations of the Company. Any proceeds received or payments made by the Company to terminate a derivative in advance of its expiration date, or to amend the terms of an existing derivative, are included in the Company's consolidated statements of income and are accounted for as a change in fair value of such derivative. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income |
Foreign Currency | Foreign Currency During 2006, the Company issued Euro-denominated bonds, which were included in “bonds and notes payable” on the consolidated balance sheets. Transaction gains and losses resulting from exchange rate changes when re-measuring these bonds to U.S. dollars at the balance sheet date were included in “derivative market value and foreign currency adjustments and derivative settlements, net” on the consolidated statements of income. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Income tax expense includes deferred tax expense, which represents the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies |
Compensation Expense for Stock Based Awards | Compensation Expense for Stock Based Awards The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company also has a directors stock compensation plan pursuant to which non-employee directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period. |
Stock Repurchases | Stock Repurchases In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company. |
Loans Receivable and Allowanc34
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable consisted of the following: As of December 31, 2017 2016 Federally insured student loans: Stafford and other $ 4,418,881 5,186,047 Consolidation 17,302,725 19,643,937 Total 21,721,606 24,829,984 Private education loans 212,160 273,659 Consumer loans 62,111 — 21,995,877 25,103,643 Loan discount, net of unamortized loan premiums and deferred origination costs (113,695 ) (129,507 ) Non-accretable discount (a) (13,085 ) (18,570 ) Allowance for loan losses: Federally insured loans (38,706 ) (37,268 ) Private education loans (12,629 ) (14,574 ) Consumer loans (3,255 ) — $ 21,814,507 24,903,724 (a) At December 31, 2017 and 2016, the non-accretable discount related to purchased loan portfolios of $5.8 billion and $8.3 billion , respectively. |
Allowance for Credit Losses on Financing Receivables | The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below. Year ended December 31, 2017 2016 2015 Balance at beginning of period $ 51,842 50,498 48,900 Provision for loan losses: Federally insured loans 13,000 14,000 8,000 Private education loans (2,000 ) (500 ) 2,150 Consumer loans 3,450 — — Total provision for loan losses 14,450 13,500 10,150 Charge-offs: Federally insured loans (11,562 ) (12,292 ) (11,730 ) Private education loans (1,313 ) (1,728 ) (2,414 ) Consumer loans (195 ) — — Total charge-offs (13,070 ) (14,020 ) (14,144 ) Recoveries - private education loans 768 954 1,050 Purchase (sale) of loans, net: Federally insured loans — 70 50 Private education loans — 480 (140 ) Transfer from repurchase obligation related to private education loans repurchased, net (a) 600 360 4,632 Balance at end of period $ 54,590 51,842 50,498 Allocation of the allowance for loan losses: Federally insured loans $ 38,706 37,268 35,490 Private education loans 12,629 14,574 15,008 Consumer loans 3,255 — — Total allowance for loan losses $ 54,590 51,842 50,498 (a) The Company sold various portfolios of private education loans to third-parties. Per the terms of the servicing agreements, the Company’s servicing operations were obligated to repurchase loans subject to the sale agreements in the event such loans became 60 or 90 days delinquent. As of December 31, 2016, the balance of loans subject to these repurchase obligations was $39.5 million . The Company's estimate related to its obligation to repurchase these loans is included in "other liabilities" in the Company's consolidated balance sheet and was $2.3 million as of December 31, 2016. On November 3, 2017, the loans subject to the repurchase obligations were sold by the owner of the loans to an unrelated third-party and the Company's repurchase obligation was terminated. |
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 for federally insured and private education loans. As of December 31, 2017 2016 2015 Federally insured loans: Loans in-school/grace/deferment (a) $ 1,260,394 $ 1,606,468 $ 2,292,941 Loans in forbearance (b) 1,774,405 2,295,367 2,979,357 Loans in repayment status: Loans current 16,477,004 88.2 % 18,125,768 86.6 % 19,447,541 84.4 % Loans delinquent 31-60 days (c) 682,586 3.7 818,976 3.9 1,028,396 4.5 Loans delinquent 61-90 days (c) 374,534 2.0 487,647 2.3 566,953 2.5 Loans delinquent 91-120 days (c) 287,922 1.5 335,291 1.6 415,747 1.8 Loans delinquent 121-270 days (c) 629,480 3.4 854,432 4.1 1,166,940 5.1 Loans delinquent 271 days or greater (c)(d) 235,281 1.2 306,035 1.5 390,232 1.7 Total loans in repayment 18,686,807 100.0 % 20,928,149 100.0 % 23,015,809 100.0 % Total federally insured loans $ 21,721,606 $ 24,829,984 $ 28,288,107 Private education loans: Loans in-school/grace/deferment (a) $ 6,053 $ 35,146 $ 30,795 Loans in forbearance (b) 2,237 3,448 350 Loans in repayment status: Loans current 196,720 96.5 % 228,612 97.2 % 228,464 96.7 % Loans delinquent 31-60 days (c) 1,867 0.9 1,677 0.7 1,771 0.7 Loans delinquent 61-90 days (c) 1,052 0.5 1,110 0.5 1,283 0.5 Loans delinquent 91 days or greater (c) 4,231 2.1 3,666 1.6 4,979 2.1 Total loans in repayment 203,870 100.0 % 235,065 100.0 % 236,497 100.0 % Total private education loans $ 212,160 $ 273,659 $ 267,642 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of December 31, 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 $ 20,352,045 1.47% - 3.37% 8/25/21 - 2/25/66 Bonds and notes based on auction 780,829 2.09% - 2.69% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 21,132,874 FFELP warehouse facilities 335,992 1.55% / 1.56% 11/19/19 / 5/31/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 74,717 3.30% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 82,647 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 10,000 2.98% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.07% 9/15/61 Other borrowings 70,516 2.44% - 3.38% 1/12/18 - 12/15/45 21,727,127 Discount on bonds and notes payable and debt issuance costs (370,554 ) Total $ 21,356,573 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 Line of Credit Facilities | As of December 31, 2017 , the Company had two FFELP warehouse facilities as summarized below. NFSLW-I NHELP-II Total Maximum financing amount $ 500,000 500,000 1,000,000 Amount outstanding 189,502 146,490 335,992 Amount available $ 310,498 353,510 664,008 Expiration of liquidity provisions September 20, 2019 May 31, 2018 Final maturity date November 19, 2019 May 31, 2020 Maximum advance rates 92.0 - 98.0% 85.0 - 95.0% Minimum advance rates 84.0 - 90.0% 85.0 - 95.0% Advanced as equity support $ 9,513 12,876 22,389 |
Schedule of Asset-backed Securitizations | The following tables summarize the asset-backed securitization transactions completed in 2017 and 2016 . Securitizations completed during the year ended December 31, 2017 NSLT 2017-1 NSLT 2017-2 NSLT 2017-3 Total Date securities issued 5/24/17 7/26/17 12/14/17 Total original principal amount $ 535,000 399,390 539,400 1,473,790 Bond discount — (2,002 ) — (2,002 ) Issue price $ 535,000 397,388 539,400 1,471,788 Cost of funds: 1-month LIBOR plus 0.78% 1-month LIBOR plus 0.77% 1-month LIBOR plus 0.85% Final maturity date 6/25/65 9/25/65 2/25/66 Securitizations completed during the year ended December 31, 2016 FFELP 2016-1 Private education loan 2016-A (a) Total Class A-1A notes Class A-1B notes 2016-A total Date securities issued 10/12/16 12/21/16 12/21/16 12/21/16 Total original principal amount $ 426,000 112,582 91,378 225,960 $ 651,960 Class A senior notes: Total original principal amount $ 426,000 112,582 91,378 203,960 629,960 Bond discount — — (609 ) (609 ) (609 ) Issue price $ 426,000 112,582 90,769 203,351 629,351 Cost of funds: 1-month LIBOR plus 0.80% 1-month LIBOR plus 1.75% 3.60% Final maturity date 9/25/65 12/26/40 12/26/40 Class B subordinated notes: Total original principal amount $ 22,000 22,000 Bond discount (285 ) (285 ) Issue price $ 21,715 21,715 Cost of funds: 5.35 % Final maturity date 12/28/43 (a) On June 26, 2015, the Company entered into a $275.0 million private education loan warehouse facility. The Company funded all loans that were included in this warehouse in the Private Education Loan 2016-A securitization and terminated the private education loan warehouse facility on December 21, 2016. |
Schedule of TDP Notes Outstanding | A summary of the TDP notes outstanding as of December 31, 2017 is summarized below: Issue date Debt outstanding Maturity date Interest rate December 30, 2015 $ 12,000 March 31, 2023 3.38% - fixed December 30, 2015 6,355 December 15, 2045 3.38% - fixed October 31, 2017 1,743 March 31, 2023 1-month LIBOR plus 2.00% |
Schedule of Long-term Debt Maturities | Bonds and notes outstanding as of December 31, 2017 are due in varying amounts as shown below. 2018 $ 50,418 2019 189,502 2020 146,490 2021 33,410 2022 — 2023 and thereafter 21,307,307 $ 21,727,127 |
Schedule of Debt Repurchases | The following table summarizes the Company's repurchases of its own debt. Gains (losses) recorded by the Company from the repurchase of debt are included in "gain on sale of loans and debt repurchases, net" on the Company’s consolidated statements of income. Par value Purchase price Gain (loss) Par value Purchase price Gain (loss) Par value Purchase price Gain (loss) Year ended December 31, 2017 2016 2015 Unsecured debt - Hybrid Securities $ 29,803 25,357 4,446 7,000 4,865 2,135 14,504 11,374 3,130 Asset-backed securities 154,407 155,951 (1,544 ) 78,412 72,566 5,846 32,026 30,354 1,672 $ 184,210 181,308 2,902 85,412 77,431 7,981 46,530 41,728 4,802 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swaps - 1:3 Basis swaps | The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2017 2016 Maturity Notional amount Notional amount 2018 $ 4,250,000 — 2019 3,500,000 — 2022 1,000,000 — 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 $ 11,250,000 1,775,000 |
Interest Rate Swaps - Floor Income Hedges | The following tables summarize the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 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 2023 750,000 2.28 — — 2024 300,000 2.28 — — 2025 100,000 2.32 100,000 2.32 2027 50,000 2.32 — — $ 7,300,000 1.21 % $ 6,950,000 1.02 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Interest Rate Swaps - Unsecured Debt Hedges | As of December 31, 2017 and 2016 , the Company had the following derivatives outstanding that are used to effectively convert the variable interest rate on a portion of the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28% (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Impact of Foreign Exchange Contracts on the Statement of Income | The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instruments. Year ended December 31, 2017 2016 2015 Re-measurement of Euro Notes $ (45,600 ) 11,849 43,801 Change in fair value of cross currency interest rate swap 34,208 (1,954 ) (45,195 ) Total impact to consolidated statements of income - (expense) income (a) $ (11,392 ) 9,895 (1,394 ) (a) The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the fair value of the Company’s derivatives as reflected on the consolidated balance sheets. Fair value of asset derivatives Fair value of liability derivatives As of As of As of As of December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 1:3 basis swaps $ — — — 2,624 Interest rate swaps - floor income hedges — 81,159 — 256 Interest rate swap option - floor income hedge 543 2,977 — — Interest rate caps 275 1,152 — — Interest rate swaps - hybrid debt hedges — — 7,063 7,341 Cross-currency interest rate swap — — — 67,605 Other — 2,243 — — Total $ 818 87,531 7,063 77,826 |
Schedule of Offsetting 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 (liability) Balance as of December 31, 2017 $ 818 — — 818 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 asset (liability) Balance as of December 31, 2017 $ (7,063 ) — 8,520 1,457 Balance as of December 31, 2016 (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. Year ended December 31, 2017 2016 2015 Settlements: 1:3 basis swaps $ (3,069 ) 1,493 1,058 Interest rate swaps - floor income hedges 10,838 (17,643 ) (23,041 ) Interest rate swaps - hybrid debt hedges (781 ) (915 ) (1,012 ) Cross-currency interest rate swap (6,321 ) (4,884 ) (1,255 ) Total settlements - income (expense) 667 (21,949 ) (24,250 ) Change in fair value: 1:3 basis swaps (8,224 ) (2,938 ) 12,292 Interest rate swaps - floor income hedges 3,585 64,111 20,103 Interest rate swap option - floor income hedge (2,433 ) (281 ) (2,420 ) Interest rate caps (893 ) (419 ) (1,365 ) Interest rate swaps - hybrid debt hedges 279 304 (295 ) Cross-currency interest rate swap 34,208 (1,954 ) (45,195 ) Other (143 ) 1,072 1,730 Total change in fair value - income (expense) 26,379 59,895 (15,150 ) Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) (45,600 ) 11,849 43,801 Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ (18,554 ) 49,795 4,401 |
Investments and Notes Receiva37
Investments and Notes Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Summary Investment Holdings | A summary of the Company's investments and notes receivable follows: As of December 31, 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) $ 71,943 5,056 (25 ) 76,974 98,260 6,280 (641 ) 103,899 Equity securities 1,630 2,298 — 3,928 720 1,930 (61 ) 2,589 Total available-for-sale investments $ 73,573 7,354 (25 ) 80,902 98,980 8,210 (702 ) 106,488 Trading investments - equity securities — 105 Total available-for-sale and trading investments 80,902 106,593 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds 84,752 69,789 Real estate 49,464 48,379 Notes receivable 16,393 17,031 Tax liens and affordable housing 9,027 12,352 Total investments and notes receivable $ 240,538 254,144 (a) As of December 31, 2017 , the aggregate fair value of available-for-sale investments with unrealized losses was $12.3 million of which none 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 December 31, 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 December 31, 2017 , the stated maturities of substantially all of the Company's student loan asset-backed securities and other debt securities classified as available-for-sale were greater than 10 years. |
Gain (Loss) on Investments | The following table summarizes the amount included in "other income" in the consolidated statements of income related to the Company's investments classified as available-for-sale and trading. Year ended December 31, 2017 2016 2015 Available-for-sale securities: Gross realized gains $ 3,767 3,099 3,402 Gross realized losses (1,239 ) (1,192 ) (447 ) Trading securities: Unrealized gains (losses), net (14 ) 525 (715 ) Realized gains (losses), net — 341 (2,097 ) $ 2,514 2,773 143 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired at Fair Value | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2016, the Company recognized certain adjustments to the provisional amounts recorded at December 31, 2015 that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was an increase to goodwill, and the adjustments had no impact on operating results. Cash and cash equivalents $ 334 Restricted cash 850 Accounts receivable 1,935 Property and equipment 32,479 Other assets 371 Intangible assets 11,410 Excess cost over fair value of net assets acquired (goodwill) 21,112 Other liabilities (4,587 ) Bonds and notes payable (13,904 ) Net assets acquired 50,000 Minority interest (3,750 ) Total consideration paid by the Company $ 46,250 The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2017 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 23,106,440 21,814,507 — — 23,106,440 Cash and cash equivalents 66,752 66,752 66,752 — — Investments (available-for-sale) 80,902 80,902 4,036 76,866 — Notes receivable 16,393 16,393 — 16,393 — Restricted cash 688,193 688,193 688,193 — — Restricted cash – due to customers 187,121 187,121 187,121 — — Accrued interest receivable 430,385 430,385 — 430,385 — Derivative instruments 818 818 — 818 — Financial liabilities: Bonds and notes payable 21,521,463 21,356,573 — 21,521,463 — Accrued interest payable 50,039 50,039 — 50,039 — Due to customers 187,121 187,121 187,121 — — Derivative instruments 7,063 7,063 — 7,063 — As of December 31, 2016 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: 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 — |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: Weighted average remaining useful life as of December 31, 2017 (months) As of December 31, 2017 As of December 31, 2016 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $12,715 and $8,548, respectively) 160 $ 24,168 28,335 Trade names (net of accumulated amortization of $2,498 and $1,653, respectively) 89 9,074 9,919 Computer software (net of accumulated amortization of $10,013 and $5,675, respectively) 14 4,958 9,296 Covenants not to compete (net of accumulated amortization of $127 and $91, respectively) 77 227 263 Total - amortizable intangible assets, net 124 $ 38,427 47,813 |
Schedule of Intangible Assets Future Amortization Expense | As of December 31, 2017 , the Company estimates it will record amortization expense as follows: 2018 $ 10,428 2019 6,990 2020 3,789 2021 3,077 2022 2,474 2023 and thereafter 11,669 $ 38,427 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by reportable operating segment was as follows: Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Generation and Management (a) Corporate and Other Activities Total Balance as of December 31, 2015 $ 8,596 67,168 19,800 41,883 8,553 146,000 ALLO purchase price adjustment — — 1,312 — — 1,312 Balance as of December 31, 2016 8,596 67,168 21,112 41,883 8,553 147,312 Impairment expense — — — — (3,626 ) (3,626 ) Sale of Peterson's — — — — (4,927 ) (4,927 ) Balance as of December 31, 2017 $ 8,596 67,168 21,112 41,883 — 138,759 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of new FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of December 31, Useful life 2017 2016 Non-communications: Computer equipment and software 1-5 years $ 124,708 97,317 Building and building improvements 5-39 years 24,003 13,363 Office furniture and equipment 3-7 years 15,210 12,344 Leasehold improvements 5-15 years 7,759 3,579 Transportation equipment 4-10 years 3,813 3,809 Land — 2,628 1,682 Construction in progress — 4,127 16,346 182,248 148,440 Accumulated depreciation - non-communications 105,017 91,285 Non-communications, net property and equipment 77,231 57,155 Communications: Network plant and fiber 5-15 years 138,122 40,844 Customer located property 5-10 years 13,767 5,138 Central office 5-15 years 10,754 6,448 Transportation equipment 4-10 years 5,759 2,966 Computer equipment and software 1-5 years 3,790 2,026 Other 1-39 years 2,516 1,268 Land — 70 70 Construction in progress — 11,620 12,537 186,398 71,297 Accumulated depreciation - communications 15,578 4,666 Communications, net property and equipment 170,820 66,631 Total property and equipment, net $ 248,051 123,786 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | Shares repurchased by the Company during 2017 , 2016 , and 2015 are shown in the table below. Total shares repurchased Purchase price (in thousands) Average price of shares repurchased (per share) Year ended December 31, 2017 1,473,054 $ 68,896 $ 46.77 Year ended December 31, 2016 2,038,368 69,091 33.90 Year ended December 31, 2015 2,449,159 96,169 39.27 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Year ended December 31, 2017 2016 2015 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 171,442 1,724 173,166 254,063 2,688 256,751 265,129 2,850 267,979 Denominator: Weighted-average common shares outstanding - basic and diluted 41,375,964 415,977 41,791,941 42,222,335 446,735 42,669,070 45,045,199 484,141 45,529,340 Earnings per share - basic and diluted $ 4.14 4.14 4.14 6.02 6.02 6.02 5.89 5.89 5.89 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2017 2016 Gross balance - beginning of year $ 28,004 27,688 Additions based on tax positions of prior years 145 904 Additions based on tax positions related to the current year 2,903 4,347 Settlements with taxing authorities — — Reductions for tax positions of prior years (356 ) (3,088 ) Reductions based on tax positions related to the current year — — Reductions due to lapse of applicable statutes of limitations (2,275 ) (1,847 ) Gross balance - end of year $ 28,421 28,004 |
Schedule of Provision for Income Tax Expense (Benefit) | The provision for income taxes consists of the following components: Year ended December 31, 2017 2016 2015 Current: Federal $ 65,196 111,302 140,778 State 1,246 3,019 4,530 Foreign (35 ) (13 ) 23 Total current provision 66,407 114,308 145,331 Deferred: Federal (8,270 ) 25,423 3,572 State 6,618 1,976 3,875 Foreign 108 (394 ) (398 ) Total deferred provision (1,544 ) 27,005 7,049 Provision for income tax expense $ 64,863 141,313 152,380 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2017 2016 2015 Tax expense at federal rate 35.0 % 35.0 % 35.0 % Increase (decrease) resulting from: Reduction of statutory federal rate (a) (8.0 ) — — State tax, net of federal income tax benefit 1.6 1.1 1.0 Provision for uncertain federal and state tax matters — — 0.9 Tax credits (1.3 ) (0.6 ) (0.5 ) Other — — (0.1 ) Effective tax rate 27.3 % 35.5 % 36.3 % (a) The Tax Cuts and Jobs Act (the “Tax Act”), signed into law on December 22, 2017, changes existing United States tax law and includes numerous provisions that affect businesses, including the Company. The Tax Act, for instance, introduces changes that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits. The Company accounted for the change in tax laws in accordance with ASC Topic 740 that provides guidance that a change in tax law or rates be recognized in the financial reporting period that includes the enactment date, which is the date the changes were signed into law. The income tax accounting effect of a change in tax laws or tax rates includes, for example, adjusting (or re-measuring) deferred tax liabilities and deferred tax assets, as well as evaluating whether a valuation allowance is needed for deferred tax assets. The Company re-measured its deferred tax liabilities and deferred tax assets as of December 22, 2017 resulting in a decrease to income tax expense of $19.3 million . The Company determined no valuation allowance was needed for any deferred tax assets as a result of the Act. In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which provides guidance regarding how a company is to reflect provisional amounts when necessary information is not yet available, prepared, or analyzed sufficiently to complete its accounting for the effect of the changes in the Tax Act. The income tax benefit of $19.3 million recorded during the year ended December 31, 2017 represents all known and estimable impacts of the Tax Act and is a provisional amount based on the Company’s current best estimate. This provisional amount incorporates assumptions made based upon the Company’s current interpretations of the Tax Act and may change as the Company receives additional clarification and implementation guidance, and as data becomes available allowing for a more accurate scheduling of the deferred tax assets and liabilities, including those related to items potentially impacted by the Tax Act such as accruals in 2017 related to payments not occurring until later in 2018, partnership basis, and tax implications of the Tax Act at state and local jurisdictions. Adjustments to this provisional amount through December 22, 2018 will be included in income from operations as an adjustment to tax expense in future periods. |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2017 2016 Deferred tax assets: Student loans $ 13,532 20,980 Deferred revenue 3,246 2,699 Securitizations 2,970 5,675 Intangible assets 2,899 4,821 Accrued expenses 2,246 3,533 Stock compensation 1,744 2,948 Total gross deferred tax assets 26,637 40,656 Less valuation allowance (254 ) (264 ) Net deferred tax assets 26,383 40,392 Deferred tax liabilities: Basis in certain derivative contracts 23,051 46,636 Partnership basis 21,474 4,976 Loan origination services 8,001 13,019 Depreciation 4,958 5,128 Debt repurchases 3,856 12,457 Debt and equity investments 1,767 3,246 Other 823 360 Total gross deferred tax liabilities 63,930 85,822 Net deferred tax liability $ (37,547 ) (45,430 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables include the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2017 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 513 17 3 764,225 13,643 (7,976 ) 770,426 Interest expense 3 — 5,427 464,256 3,477 (7,976 ) 465,188 Net interest income 510 17 (5,424 ) 299,969 10,166 — 305,238 Less provision for loan losses — — — 14,450 — — 14,450 Net interest income (loss) after provision for loan losses 510 17 (5,424 ) 285,519 10,166 — 290,788 Other income: Loan systems and servicing revenue 223,000 — — — — — 223,000 Intersegment servicing revenue 41,674 — — — — (41,674 ) — Tuition payment processing, school information, and campus commerce revenue — 145,751 — — — — 145,751 Communications revenue — — 25,700 — — — 25,700 Other income — — — 13,424 39,402 — 52,826 Gain on sale of loans and debt repurchases, net — — — (1,567 ) 4,469 — 2,902 Derivative settlements, net — — — 1,448 (781 ) — 667 Derivative market value and foreign currency transaction adjustments, net — — — (19,357 ) 136 — (19,221 ) Total other income 264,674 145,751 25,700 (6,052 ) 43,226 (41,674 ) 431,625 Operating expenses: Salaries and benefits 156,256 69,500 14,947 1,548 59,633 — 301,885 Depreciation and amortization 2,864 9,424 11,835 — 15,418 — 39,541 Loan servicing fees — — — 22,734 — — 22,734 Cost to provide communications services — — 9,950 — — — 9,950 Other expenses 39,126 19,138 8,074 3,900 51,381 — 121,619 Intersegment expenses, net 31,871 9,079 2,101 42,830 (44,208 ) (41,674 ) — Total operating expenses 230,117 107,141 46,907 71,012 82,224 (41,674 ) 495,729 Income (loss) before income taxes 35,067 38,627 (26,631 ) 208,455 (28,832 ) — 226,684 Income tax (expense) benefit (18,128 ) (14,678 ) 10,120 (79,213 ) 37,036 — (64,863 ) Net income (loss) 16,939 23,949 (16,511 ) 129,242 8,204 — 161,821 Net loss (income) attributable to noncontrolling interests 12,640 — — — (1,295 ) — 11,345 Net income (loss) attributable to Nelnet, Inc. $ 29,579 23,949 (16,511 ) 129,242 6,909 — 173,166 Total assets as of December 31, 2017 $ 122,330 250,351 214,336 22,910,974 877,859 (411,415 ) 23,964,435 Year ended December 31, 2016 Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 111 9 1 754,788 10,913 (5,076 ) 760,746 Interest expense — — 1,271 385,913 6,076 (5,076 ) 388,183 Net interest income 111 9 (1,270 ) 368,875 4,837 — 372,563 Less provision for loan losses — — — 13,500 — — 13,500 Net interest income (loss) after provision for loan losses 111 9 (1,270 ) 355,375 4,837 — 359,063 Other income: Loan systems and servicing revenue 214,846 — — — — — 214,846 Intersegment servicing revenue 45,381 — — — — (45,381 ) — Tuition payment processing, school information, and campus commerce revenue — 132,730 — — — — 132,730 Communications revenue — — 17,659 — — — 17,659 Enrollment services revenue — — — — 4,326 — 4,326 Other income — — — 15,709 38,221 — 53,929 Gain on sale of loans and debt repurchases, net — — — 5,846 2,135 — 7,981 Derivative settlements, net — — — (21,034 ) (915 ) — (21,949 ) Derivative market value and foreign currency transaction adjustments, net — — — 70,368 1,376 — 71,744 Total other income 260,227 132,730 17,659 70,889 45,143 (45,381 ) 481,266 Operating expenses: Salaries and benefits 132,072 62,329 7,649 1,985 51,889 — 255,924 Depreciation and amortization 1,980 10,595 6,060 — 15,298 — 33,933 Loan servicing fees — — — 25,750 — — 25,750 Cost to provide communications services — — 6,866 — — — 6,866 Cost to provide enrollment services — — — — 3,623 — 3,623 Other expenses 40,715 18,486 4,370 6,005 45,843 — 115,419 Intersegment expenses, net 24,204 6,615 958 46,494 (32,889 ) (45,381 ) — Total operating expenses 198,971 98,025 25,903 80,234 83,764 (45,381 ) 441,515 Income (loss) before income taxes 61,367 34,714 (9,514 ) 346,030 (33,784 ) — 398,814 Income tax (expense) benefit (23,319 ) (13,191 ) 3,615 (131,492 ) 23,074 — (141,313 ) Net income (loss) 38,048 21,523 (5,899 ) 214,538 (10,710 ) — 257,501 Net loss (income) attributable to noncontrolling interests — — — — (750 ) — (750 ) Net income (loss) attributable to Nelnet, Inc. $ 38,048 21,523 (5,899 ) 214,538 (11,460 ) — 256,751 Total assets as of December 31, 2016 $ 55,469 230,283 103,104 26,378,467 682,459 (256,687 ) 27,193,095 Year ended December 31, 2015 (a) Loan Systems and Servicing Tuition Payment Processing and Campus Commerce Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 49 3 — 728,199 7,686 (1,828 ) 734,109 Interest expense — — — 297,625 6,413 (1,828 ) 302,210 Net interest income 49 3 — 430,574 1,273 — 431,899 Less provision for loan losses — — — 10,150 — — 10,150 Net interest income (loss) after provision for loan losses 49 3 — 420,424 1,273 — 421,749 Other income: Loan systems and servicing revenue 239,858 — — — — — 239,858 Intersegment servicing revenue 50,354 — — — — (50,354 ) — Tuition payment processing, school information, and campus commerce revenue — 120,365 — — — — 120,365 Enrollment services revenue — — — — 51,073 — 51,073 Other income — (925 ) — 15,939 32,248 — 47,262 Gain on sale of loans and debt repurchases, net — — — 2,034 3,119 — 5,153 Derivative settlements, net — — — (23,238 ) (1,012 ) — (24,250 ) Derivative market value and foreign currency transaction adjustments, net — — — 27,216 1,435 — 28,651 Total other income 290,212 119,440 — 21,951 86,863 (50,354 ) 468,112 Operating expenses: Salaries and benefits 134,635 55,523 — 2,172 55,585 — 247,914 Depreciation and amortization 1,931 8,992 — — 15,420 — 26,343 Loan servicing fees — — — 30,213 — — 30,213 Cost to provide enrollment services — — — — 41,733 — 41,733 Other expenses 57,799 15,161 — 5,083 44,971 — 123,014 Intersegment expenses, net 29,706 8,617 — 50,899 (38,868 ) (50,354 ) — Total operating expenses 224,071 88,293 — 88,367 118,841 (50,354 ) 469,217 Income (loss) before income taxes 66,190 31,150 — 354,008 (30,705 ) — 420,644 Income tax (expense) benefit (25,153 ) (11,838 ) — (134,522 ) 19,132 — (152,380 ) Net income (loss) 41,037 19,312 — 219,486 (11,573 ) — 268,264 Net loss (income) attributable to noncontrolling interests 20 — — — (305 ) — (285 ) Net income (loss) attributable to Nelnet, Inc. $ 41,057 19,312 — 219,486 (11,878 ) — 267,979 Total assets as of December 31, 2015 $ 80,459 229,615 68,760 29,634,280 624,953 (218,923 ) 30,419,144 (a) On December 31, 2015, the Company purchased ALLO. The ALLO assets acquired and liabilities assumed were recorded by the Company at their respective fair values at the date of acquisition. As such, ALLO's assets and liabilities as of December 31, 2015 are included in the Company's consolidated balance sheet. However, ALLO had no impact on the consolidated statement of income during 2015. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of future minimum lease payments for operating leases | Future minimum lease payments under these leases are shown below: 2018 $ 5,277 2019 4,337 2020 3,628 2021 2,002 2022 1,649 2023 and thereafter 4,857 Total minimum lease payments $ 21,750 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Restricted Stock Activity | The following table summarizes restricted stock activity: Year ended December 31, 2017 2016 2015 Non-vested shares at beginning of year 447,380 471,597 499,463 Granted 107,237 123,181 126,946 Vested (131,988 ) (113,507 ) (108,424 ) Canceled (24,419 ) (33,891 ) (46,388 ) Non-vested shares at end of year 398,210 447,380 471,597 |
Schedule of Unrecognized Compensation Costs | As of December 31, 2017 , there was $8.1 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense as shown in the table below. 2018 $ 3,211 2019 1,960 2020 1,211 2021 731 2022 439 2023 and thereafter 596 $ 8,148 |
Schedule of Non-employee Directors Compensation Plan | The following table provides the number of shares awarded under this plan for the years ended December 31, 2017 , 2016 , and 2015 . Shares issued - not deferred Shares- deferred Total Year ended December 31, 2017 6,855 10,974 17,829 Year ended December 31, 2016 10,799 13,644 24,443 Year ended December 31, 2015 8,164 10,406 18,570 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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 year ended December 31, 2017 . As of December 31, 2017 As of December 31, 2016 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (available-for-sale and trading): (a) Student loan and other asset-backed securities $ — 76,866 76,866 — 103,780 103,780 Equity securities 3,928 — 3,928 2,694 — 2,694 Debt securities 108 — 108 119 — 119 Total investments (available-for-sale and trading) 4,036 76,866 80,902 2,813 103,780 106,593 Derivative instruments (b) — 818 818 — 87,531 87,531 Total assets $ 4,036 77,684 81,720 2,813 191,311 194,124 Liabilities: Derivative instruments (b): $ — 7,063 7,063 — 77,826 77,826 Total liabilities $ — 7,063 7,063 — 77,826 77,826 (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. |
Fair Value, by Balance Sheet Grouping | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2016, the Company recognized certain adjustments to the provisional amounts recorded at December 31, 2015 that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was an increase to goodwill, and the adjustments had no impact on operating results. Cash and cash equivalents $ 334 Restricted cash 850 Accounts receivable 1,935 Property and equipment 32,479 Other assets 371 Intangible assets 11,410 Excess cost over fair value of net assets acquired (goodwill) 21,112 Other liabilities (4,587 ) Bonds and notes payable (13,904 ) Net assets acquired 50,000 Minority interest (3,750 ) Total consideration paid by the Company $ 46,250 The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2017 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 23,106,440 21,814,507 — — 23,106,440 Cash and cash equivalents 66,752 66,752 66,752 — — Investments (available-for-sale) 80,902 80,902 4,036 76,866 — Notes receivable 16,393 16,393 — 16,393 — Restricted cash 688,193 688,193 688,193 — — Restricted cash – due to customers 187,121 187,121 187,121 — — Accrued interest receivable 430,385 430,385 — 430,385 — Derivative instruments 818 818 — 818 — Financial liabilities: Bonds and notes payable 21,521,463 21,356,573 — 21,521,463 — Accrued interest payable 50,039 50,039 — 50,039 — Due to customers 187,121 187,121 187,121 — — Derivative instruments 7,063 7,063 — 7,063 — As of December 31, 2016 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: 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 — |
Quarterly Financial Informati49
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2017 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 76,925 79,842 75,237 73,235 Less provision for loan losses 1,000 3,000 6,700 3,750 Net interest income after provision for loan losses 75,925 76,842 68,537 69,485 Loan systems and servicing revenue 54,229 56,899 55,950 55,921 Tuition payment processing, school information, and campus commerce revenue 43,620 34,224 35,450 32,457 Communications revenue 5,106 5,719 6,751 8,122 Other income 12,632 12,485 19,756 7,952 Gain on sale of loans and debt repurchases, net 4,980 442 116 (2,635 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net (4,830 ) (27,910 ) 7,173 7,014 Salaries and benefits (71,863 ) (74,628 ) (74,193 ) (81,201 ) Depreciation and amortization (8,598 ) (9,038 ) (10,051 ) (11,854 ) Loan servicing fees (6,025 ) (5,628 ) (8,017 ) (3,064 ) Cost to provide communications services (1,954 ) (2,203 ) (2,632 ) (3,160 ) Operating expenses (26,547 ) (26,521 ) (29,743 ) (38,809 ) Income tax (expense) benefit (28,755 ) (16,032 ) (25,562 ) 5,486 Net income 47,920 24,651 43,535 45,714 Net loss (income) attributable to noncontrolling interests 2,106 4,086 2,768 2,386 Net income attributable to Nelnet, Inc. $ 50,026 28,737 46,303 48,100 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.18 0.68 1.11 1.17 2016 First quarter Second quarter Third quarter Fourth quarter Net interest income $ 101,609 92,200 99,795 78,960 Less provision for loan losses 2,500 2,000 6,000 3,000 Net interest income after provision for loan losses 99,109 90,200 93,795 75,960 Loan systems and servicing revenue 52,330 54,402 54,350 53,764 Tuition payment processing, school information, and campus commerce revenue 38,657 30,483 33,071 30,519 Communications revenue 4,346 4,478 4,343 4,492 Enrollment services revenue 4,326 — — — Other income 13,796 9,765 15,150 15,218 Gain on sale of loans and debt repurchases, net 101 — 2,160 5,720 Derivative market value and foreign currency transaction adjustments and derivative settlements, net (28,691 ) (40,702 ) 36,001 83,187 Salaries and benefits (63,242 ) (60,923 ) (63,743 ) (68,017 ) Depreciation and amortization (7,640 ) (8,183 ) (8,994 ) (9,116 ) Loan servicing fees (6,928 ) (7,216 ) (5,880 ) (5,726 ) Cost to provide communications services (1,703 ) (1,681 ) (1,784 ) (1,697 ) Cost to provide enrollment services (3,623 ) — — — Operating expenses (28,376 ) (29,409 ) (26,391 ) (31,245 ) Income tax (expense) benefit (24,433 ) (15,036 ) (47,715 ) (54,128 ) Net income 48,029 26,178 84,363 98,931 Net loss (income) attributable to noncontrolling interests (68 ) (28 ) (69 ) (585 ) Net income attributable to Nelnet, Inc. $ 47,961 26,150 84,294 98,346 Earnings per common share: Net income attributable to Nelnet, Inc. shareholders - basic and diluted $ 1.11 0.61 1.98 2.32 |
Condensed Parent Company Fina50
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Only Balance Sheet | Balance Sheets (Parent Company Only) As of December 31, 2017 and 2016 2017 2016 Assets: Cash and cash equivalents $ 21,001 29,734 Investments and notes receivable 149,236 167,711 Investment in subsidiary debt 75,659 71,815 Restricted cash 44,149 7,805 Investment in subsidiaries 1,681,690 1,537,507 Notes receivable from subsidiaries 212,077 161,284 Other assets 131,790 136,685 Fair value of derivative instruments 818 86,379 Total assets $ 2,316,420 2,198,920 Liabilities: Notes payable $ 79,120 48,085 Other liabilities 76,638 74,706 Fair value of derivative instruments 7,063 10,221 Total liabilities 162,821 133,012 Equity: Nelnet, Inc. shareholders' equity: Common stock 408 421 Additional paid-in capital 521 420 Retained earnings 2,143,983 2,056,084 Accumulated other comprehensive earnings 4,617 4,730 Total Nelnet, Inc. shareholders' equity 2,149,529 2,061,655 Noncontrolling interest 4,070 4,253 Total equity 2,153,599 2,065,908 Total liabilities and shareholders' equity $ 2,316,420 2,198,920 |
Parent Only Income Statement | Statements of Income (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Investment interest income $ 13,060 9,794 5,776 Interest expense on bonds and notes payable 3,315 6,049 6,242 Net interest income (expense) 9,745 3,745 (466 ) Other income: Other income 3,483 7,037 4,012 Gain from debt repurchases, net 2,964 8,083 4,904 Equity in subsidiaries income 170,897 239,405 276,825 Derivative market value adjustments and derivative settlements, net (603 ) 45,203 8,416 Total other income 176,741 299,728 294,157 Operating expenses 6,117 8,183 5,057 Income before income taxes 180,369 295,290 288,634 Income tax expense 7,491 38,642 20,655 Net income 172,878 256,648 267,979 Net loss attributable to noncontrolling interest 288 103 — Net income attributable to Nelnet, Inc. $ 173,166 256,751 267,979 |
Parent Only Statement of Other Comprehensive Income | Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Net income $ 172,878 256,648 267,979 Other comprehensive (loss) income: Available-for-sale securities: Unrealized holding gains (losses) arising during period, net 2,349 5,789 (1,570 ) Reclassification adjustment for gains recognized in net income, net of losses (2,528 ) (1,907 ) (2,955 ) Income tax effect 66 (1,436 ) 1,674 Total other comprehensive (loss) income (113 ) 2,446 (2,851 ) Comprehensive income 172,765 259,094 265,128 Comprehensive loss attributable to noncontrolling interest 288 103 — Comprehensive income attributable to Nelnet, Inc. $ 173,053 259,197 265,128 |
Parent Only Statement of Cash Flows | Statements of Cash Flows (Parent Company Only) Years ended December 31, 2017, 2016, and 2015 2017 2016 2015 Net income attributable to Nelnet, Inc. $ 173,166 256,751 267,979 Net loss attributable to noncontrolling interest (288 ) (103 ) — Net income 172,878 256,648 267,979 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 420 391 327 Derivative market value adjustment 7,591 (62,268 ) (31,411 ) Proceeds from termination of derivative instruments, net of payments 2,100 3,999 65,527 Payment to enter into derivative instrument (929 ) — — Proceeds from clearinghouse to settle variation margin, net 48,985 — — Equity in earnings of subsidiaries (170,897 ) (239,405 ) (276,825 ) Gain from sales of available-for-sale securities, net of losses (2,528 ) (1,907 ) (2,955 ) Gain from debt repurchases, net (2,964 ) (8,083 ) (4,904 ) Deferred income tax (benefit) expense (8,056 ) 20,071 3,228 Non-cash compensation expense 4,416 4,348 5,347 Other 2,967 1,117 1,946 Decrease (increase) in other assets 4,171 32,262 (8,541 ) Increase (decrease) in other liabilities 10,104 (594 ) 6,597 Net cash provided by operating activities 68,258 6,579 26,315 Cash flows from investing activities: (Increase) decrease in restricted cash (9,004 ) 6,997 (13,825 ) Purchases of available-for-sale securities (127,567 ) (94,920 ) (98,332 ) Proceeds from sales of available-for-sale securities 156,727 139,427 94,722 Capital contributions/distributions to/from subsidiaries, net 29,426 223,386 120,291 (Increase) decrease in notes receivable from subsidiaries (50,793 ) 8,561 (84,061 ) Proceeds from investments and notes receivable 4,823 9,952 12,253 (Purchases of) proceeds from subsidiary debt, net (3,844 ) (13,800 ) 72,125 Purchases of investments and issuances of notes receivable (18,023 ) (4,365 ) (53,388 ) Business acquisition, net of cash acquired — — (45,916 ) Net cash (used in) provided by investing activities (18,255 ) 275,238 3,869 Cash flows from financing activities: Payments on notes payable (27,480 ) (412,000 ) (42,541 ) Proceeds from issuance of notes payable 61,059 230,000 116,460 Payments of debt issuance costs — (613 ) (773 ) Dividends paid (24,097 ) (21,188 ) (19,025 ) Repurchases of common stock (68,896 ) (69,091 ) (96,169 ) Proceeds from issuance of common stock 678 889 801 Issuance of noncontrolling interest — 501 — Distribution to noncontrolling interest — — (230 ) Net cash used in financing activities (58,736 ) (271,502 ) (41,477 ) Net (decrease) increase in cash and cash equivalents (8,733 ) 10,315 (11,293 ) Cash and cash equivalents, beginning of period 29,734 19,419 30,712 Cash and cash equivalents, end of period $ 21,001 29,734 19,419 Cash disbursements made for: Interest $ 2,882 5,533 5,914 Income taxes, net of refunds $ 96,721 115,415 147,130 Noncash investing and financing activities: Issuance of noncontrolling interest $ — — 3,750 Contributions of investments to subsidiaries, net $ 2,092 1,884 — |
Description of Business - Narra
Description of Business - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017operating_segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 4 |
Recent Developments (Details)
Recent Developments (Details) - Great Lakes Educational Loan Services [Member] - Subsequent Event [Member] $ in Millions | Feb. 07, 2018USD ($) |
Subsequent Event [Line Items] | |
Percentage of voting interests acquired | 100.00% |
Payment to acquire business | $ 150 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies and Practices - Variable Interest Entities (Details) - ALLO Communications [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [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% | |
Line of Credit [Member] | ||
Variable Interest Entity [Line Items] | ||
Line of credit issued to VIE | $ 270,000,000 | |
VIE line of credit amount outstanding | $ 193,100,000 | $ 58,000,000 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies and Practices - Noncontrolling Interest (Details) | Jan. 01, 2016 | Feb. 07, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Jan. 01, 2012 |
Noncontrolling Interest [Line Items] | |||||
Ownership percentage sold | 1.00% | ||||
Whitetail Rock [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage | 10.00% | ||||
ALLO Communications [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage | 7.50% | ||||
Percentage of voting interests acquired | 92.50% | ||||
Noncontrolling Interest, minimum earn up percentage by noncontrolling owners | 11.50% | ||||
Maximum earn up percentage by noncontrolling owners | 19.00% | ||||
401 Building, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage by parent | 50.00% | ||||
TDP Phase Three, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage by parent | 25.00% | ||||
330-333 Building, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage by parent | 50.00% | ||||
GreatNet, LLC [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage by parent | 50.00% | ||||
Subsequent Event [Member] | Great Lakes Educational Loan Services [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Percentage of voting interests acquired | 100.00% |
Summary of Significant Accoun55
Summary of Significant Accounting Policies and Practices - Loans Receivable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable, gross | $ 21,995,877,000 | $ 25,103,643,000 |
Held for sale | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable, gross | $ 0 | $ 0 |
Summary of Significant Accoun56
Summary of Significant Accounting Policies and Practices - Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Threshold period past due for financing receivable to be placed on nonaccrual status | 90 days | |
Threshold period past due for write-off of financing receivable | 120 days | |
Impaired loans | $ 0 | $ 0 |
Loans disbursed on or after July 1, 2006 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percent of principal and interest federally guaranteed | 97.00% | |
Loans disbursed between October 1, 1993 and July 1, 2006 [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percent of principal and interest federally guaranteed | 98.00% |
Summary of Significant Accoun57
Summary of Significant Accounting Policies and Practices - Cash and Cash Equivalents and Statement of Cash Flows (Details) $ in Millions | Dec. 31, 2015USD ($) |
Accounting Policies [Abstract] | |
Purchased accrued interest | $ 71.4 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies and Practices - Revenue Recognition (Details) - USD ($) $ in Thousands | Feb. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Aug. 31, 2016 |
Revenue recognition additional information [Line Items] | |||||
Reduction to the company's net loan balance discount | $ (113,695) | $ (129,507) | |||
Rebate fee on consolidation loans | 1.05% | ||||
Restatement Adjustment [Member] | |||||
Revenue recognition additional information [Line Items] | |||||
Reduction to the company's net loan balance discount | $ 8,200 | ||||
Sparkroom LLC [Member] | |||||
Revenue recognition additional information [Line Items] | |||||
Ownership interest sold | 100.00% | ||||
Stafford Loan | Consumer Portfolio Segment, Federally Insured [Member] | |||||
Revenue recognition additional information [Line Items] | |||||
Constant prepayment rate | 5.00% | 6.00% | |||
Student Loan, Consolidation Loan [Member] | Consumer Portfolio Segment, Federally Insured [Member] | |||||
Revenue recognition additional information [Line Items] | |||||
Constant prepayment rate | 3.00% | 4.00% |
Summary of Significant Accoun59
Summary of Significant Accounting Policies and Practices - Compensation Expense for Stock Bases Awards (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Maximum [Member] | Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 10 years |
Loans Receivable and Allowanc60
Loans Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 21,995,877 | $ 25,103,643 | ||
Loan discount, net of unamortized loan premiums and deferred origination costs | (113,695) | (129,507) | ||
Allowance for loan losses | (54,590) | (51,842) | $ (50,498) | $ (48,900) |
Loans receivable, net | 21,814,507 | 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 | (13,085) | (18,570) | ||
Consumer Portfolio Segment, Federally Insured [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 21,721,606 | 24,829,984 | ||
Allowance for loan losses | (38,706) | (37,268) | (35,490) | |
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Stafford And Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 4,418,881 | 5,186,047 | ||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Consolidation Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 17,302,725 | 19,643,937 | ||
Consumer Portfolio Segment, Private Education Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 212,160 | 273,659 | ||
Allowance for loan losses | (12,629) | (14,574) | (15,008) | |
Consumer Portfolio Segment, Consumer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 62,111 | 0 | ||
Allowance for loan losses | (3,255) | 0 | $ 0 | |
Financing Receivables Purchased Portfolio [Member] | Non-Accretable Discount [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 5,800,000 | $ 8,300,000 |
Loans Receivable and Allowanc61
Loans Receivable and Allowance for Loan Losses - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | $ 51,842 | $ 50,498 | $ 51,842 | $ 50,498 | $ 48,900 | ||||||
Provision for loan losses | $ 3,750 | $ 6,700 | $ 3,000 | 1,000 | $ 3,000 | $ 6,000 | $ 2,000 | 2,500 | 14,450 | 13,500 | 10,150 |
Charge-offs | (13,070) | (14,020) | (14,144) | ||||||||
Allowance for loan losses - balance | 54,590 | 51,842 | 54,590 | 51,842 | 50,498 | ||||||
Consumer Portfolio Segment, Federally Insured [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | 37,268 | 35,490 | 37,268 | 35,490 | |||||||
Provision for loan losses | 13,000 | 14,000 | 8,000 | ||||||||
Charge-offs | (11,562) | (12,292) | (11,730) | ||||||||
Purchase (sale) of financing receivables, net | 0 | 70 | 50 | ||||||||
Allowance for loan losses - balance | 38,706 | 37,268 | 38,706 | 37,268 | 35,490 | ||||||
Consumer Portfolio Segment, Private Education Loans [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | 14,574 | 15,008 | 14,574 | 15,008 | |||||||
Provision for loan losses | (2,000) | (500) | 2,150 | ||||||||
Charge-offs | (1,313) | (1,728) | (2,414) | ||||||||
Recoveries - private education loans | 768 | 954 | 1,050 | ||||||||
Purchase (sale) of financing receivables, net | 0 | 480 | (140) | ||||||||
Transfer from repurchase obligation related to private education loans repurchased, net (a) | 600 | 360 | 4,632 | ||||||||
Allowance for loan losses - balance | 12,629 | 14,574 | 12,629 | 14,574 | 15,008 | ||||||
Consumer Portfolio Segment, Consumer Loans [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Allowance for loan losses - balance | $ 0 | $ 0 | 0 | 0 | |||||||
Provision for loan losses | 3,450 | 0 | 0 | ||||||||
Charge-offs | (195) | 0 | 0 | ||||||||
Allowance for loan losses - balance | $ 3,255 | 0 | $ 3,255 | 0 | $ 0 | ||||||
Non-Federally Insured Loans Sold Subject to Repurchase Agreement [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Days delinquent to trigger repurchase range, minimum | 60 days | ||||||||||
Days delinquent to trigger repurchase range, maximum | 90 days | ||||||||||
Obligation to Repurchase Receivables Sold [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Loans sold under repurchase obligation agreement | 39,500 | ||||||||||
Accrual for estimated loss related to repurchase of loans sold | $ 2,300 | $ 2,300 |
Loans Receivable and Allowanc62
Loans Receivable and Allowance for Loan Losses - Student Loan Status and Delinquency (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans in repayment status: | |||
Total loans | $ 21,995,877 | $ 25,103,643 | |
Consumer Portfolio Segment, Private Education Loans [Member] | |||
Loans in repayment status: | |||
Total loans | 212,160 | 273,659 | |
Consumer Portfolio Segment, Private Education Loans [Member] | Private education loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans in-school/grace/deferment | 6,053 | 35,146 | $ 30,795 |
Loans in forbearance | 2,237 | 3,448 | 350 |
Loans in repayment status: | |||
Loans current | $ 196,720 | $ 228,612 | $ 228,464 |
Loans current, percentage | 96.50% | 97.20% | 96.70% |
Total loans in repayment | $ 203,870 | $ 235,065 | $ 236,497 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Total loans | $ 212,160 | $ 273,659 | $ 267,642 |
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 | $ 1,867 | $ 1,677 | $ 1,771 |
Loans past due, percentage | 0.90% | 0.70% | 0.70% |
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 | $ 1,052 | $ 1,110 | $ 1,283 |
Loans past due, percentage | 0.50% | 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 | $ 4,231 | $ 3,666 | $ 4,979 |
Loans past due, percentage | 2.10% | 1.60% | 2.10% |
Consumer Portfolio Segment, Federally Insured [Member] | |||
Loans in repayment status: | |||
Total loans | $ 21,721,606 | $ 24,829,984 | |
Consumer Portfolio Segment, Federally Insured [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans in-school/grace/deferment | 1,260,394 | 1,606,468 | $ 2,292,941 |
Loans in forbearance | 1,774,405 | 2,295,367 | 2,979,357 |
Loans in repayment status: | |||
Loans current | $ 16,477,004 | $ 18,125,768 | $ 19,447,541 |
Loans current, percentage | 88.20% | 86.60% | 84.40% |
Total loans in repayment | $ 18,686,807 | $ 20,928,149 | $ 23,015,809 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Total loans | $ 21,721,606 | $ 24,829,984 | $ 28,288,107 |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 682,586 | $ 818,976 | $ 1,028,396 |
Loans past due, percentage | 3.70% | 3.90% | 4.50% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 374,534 | $ 487,647 | $ 566,953 |
Loans past due, percentage | 2.00% | 2.30% | 2.50% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 91-120 days past due [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 287,922 | $ 335,291 | $ 415,747 |
Loans past due, percentage | 1.50% | 1.60% | 1.80% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 121-270 days past due [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 629,480 | $ 854,432 | $ 1,166,940 |
Loans past due, percentage | 3.40% | 4.10% | 5.10% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 271 days or greater past due [Member] | Federally insured loans, excluding rehabiliation loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 235,281 | $ 306,035 | $ 390,232 |
Loans past due, percentage | 1.20% | 1.50% | 1.70% |
Bonds and Notes Payable - Outst
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 21,356,573 | $ 24,668,490 |
Discount on bonds and notes payable and debt issuance costs | (370,554) | (431,930) |
Bonds and notes based on indices [Member] | Federally insured student loans [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,352,045 | $ 22,130,063 |
Bonds and notes based on indices [Member] | Federally insured student loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.47% | 0.24% |
Bonds and notes based on indices [Member] | Federally insured student loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.37% | 6.90% |
Bonds and notes based on auction [Member] | Federally insured student loans [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 780,829 | $ 998,415 |
Bonds and notes based on auction [Member] | Federally insured student loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.09% | 1.61% |
Bonds and notes based on auction [Member] | Federally insured student loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.69% | 2.28% |
Variable-rate bonds and notes [Member] | Private education loans [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 74,717 | $ 112,582 |
Variable-rate bonds and notes [Member] | Private education loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.30% | 2.60% |
Variable-rate bonds and notes [Member] | Private education loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.30% | 2.60% |
Variable-rate bonds and notes [Member] | Federally insured student loans [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 21,132,874 | $ 23,128,478 |
fixed rate bonds and notes [Member] | Private education loans [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 82,647 | $ 113,378 |
fixed rate bonds and notes [Member] | Private education loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.60% | 3.60% |
fixed rate bonds and notes [Member] | Private education loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.35% | 5.35% |
Warehouse Agreement Borrowings [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 335,992 | $ 1,677,443 |
Warehouse Agreement Borrowings [Member] | FFELP Warehouse Total [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.55% | 0.63% |
Warehouse Agreement Borrowings [Member] | FFELP Warehouse Total [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.56% | 1.09% |
Unsecured line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 10,000 | $ 0 |
Unsecured line of credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.98% | 0.00% |
Unsecured line of credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.98% | 0.00% |
Junior Subordinated Hybrid Securities [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,381 | $ 50,184 |
Interest rate range | 5.07% | |
Junior Subordinated Hybrid Securities [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.07% | 4.37% |
Junior Subordinated Hybrid Securities [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.07% | 4.37% |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 70,516 | $ 18,355 |
Notes Payable, Other Payables [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.44% | 3.38% |
Notes Payable, Other Payables [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 | $ 21,727,127 | $ 25,100,420 |
Bonds and Notes Payable - Bonds
Bonds and Notes Payable - Bonds and Notes Payable Outstanding Lines of Credit (Details) - Warehouse Agreement Borrowings [Member] | Dec. 31, 2017USD ($) |
NFSLW-I Warehouse [Member] | FFELP Warehouse Total [Member] | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 500,000,000 |
Amount outstanding | 189,502,000 |
Amount available | 310,498,000 |
Advanced as equity support | $ 9,513,000 |
NFSLW-I Warehouse [Member] | FFELP Warehouse Total [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Maximum advance rates | 92.00% |
Minimum advance rates | 84.00% |
NFSLW-I Warehouse [Member] | FFELP Warehouse Total [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Maximum advance rates | 98.00% |
Minimum advance rates | 90.00% |
NHELP-II Warehouse [Member] | FFELP Warehouse Total [Member] | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 500,000,000 |
Amount outstanding | 146,490,000 |
Amount available | 353,510,000 |
Advanced as equity support | $ 12,876,000 |
NHELP-II Warehouse [Member] | FFELP Warehouse Total [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Maximum advance rates | 85.00% |
Minimum advance rates | 85.00% |
NHELP-II Warehouse [Member] | FFELP Warehouse Total [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Maximum advance rates | 95.00% |
Minimum advance rates | 95.00% |
FFELP Warehouse Total [Member] | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 1,000,000,000 |
Amount outstanding | 335,992,000 |
Amount available | 664,008,000 |
Advanced as equity support | $ 22,389,000 |
Bonds and Notes Payable - Bon65
Bonds and Notes Payable - Bonds and Notes Payable Asset-backed Securitizations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 26, 2015 | |
Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | $ 1,473,790,000 | ||
Bond discount | (2,002,000) | ||
Issue price | 1,471,788,000 | ||
NSLT 2017-1 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 535,000,000 | ||
Bond discount | 0 | ||
Issue price | 535,000,000 | ||
NSLT 2017-2 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 399,390,000 | ||
Bond discount | (2,002,000) | ||
Issue price | 397,388,000 | ||
NSLT 2017-3 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 539,400,000 | ||
Bond discount | 0 | ||
Issue price | $ 539,400,000 | ||
Asset-backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | $ 651,960,000 | ||
Asset-backed Securities [Member] | Class A [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 629,960,000 | ||
Bond discount | (609,000) | ||
Issue price | 629,351,000 | ||
Asset-backed Securities [Member] | Class B [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 22,000,000 | ||
Bond discount | (285,000) | ||
Issue price | 21,715,000 | ||
Asset-backed Securities [Member] | FFELP 2016-1 Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 426,000,000 | ||
Asset-backed Securities [Member] | FFELP 2016-1 Securitization [Member] | Class A [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 426,000,000 | ||
Bond discount | 0 | ||
Issue price | 426,000,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 225,960,000 | ||
Aggregate principal amount | $ 275,000,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Private Education Loan 2016-A Securitization Class A-1A [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 112,582,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Private Education Loan 2016-A Securitization Class A-1B [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | $ 91,378,000 | ||
Variable interest rate basis | 3.60% | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Class A [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | $ 203,960,000 | ||
Bond discount | (609,000) | ||
Issue price | 203,351,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Class A [Member] | Private Education Loan 2016-A Securitization Class A-1A [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 112,582,000 | ||
Bond discount | 0 | ||
Issue price | 112,582,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Class A [Member] | Private Education Loan 2016-A Securitization Class A-1B [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 91,378,000 | ||
Bond discount | (609,000) | ||
Issue price | 90,769,000 | ||
Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Class B [Member] | |||
Debt Instrument [Line Items] | |||
Total original principal amount | 22,000,000 | ||
Bond discount | (285,000) | ||
Issue price | $ 21,715,000 | ||
Variable interest rate basis | 5.35% | ||
London Interbank Offered Rate (LIBOR) [Member] | NSLT 2017-1 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | 0.78% | ||
London Interbank Offered Rate (LIBOR) [Member] | NSLT 2017-2 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | 0.77% | ||
London Interbank Offered Rate (LIBOR) [Member] | NSLT 2017-3 [Member] | Asset-backed security [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | 0.85% | ||
London Interbank Offered Rate (LIBOR) [Member] | Asset-backed Securities [Member] | FFELP 2016-1 Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | 0.80% | ||
London Interbank Offered Rate (LIBOR) [Member] | Asset-backed Securities [Member] | Private Education Loan 2016-A Securitization [Member] | Private Education Loan 2016-A Securitization Class A-1A [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | 1.75% |
Bonds and Notes Payable - Narra
Bonds and Notes Payable - Narrative (Details) - USD ($) | Sep. 27, 2006 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Notes payable | $ 21,356,573,000 | $ 24,668,490,000 | |||
Amount of debt extinguished | 184,210,000 | 85,412,000 | $ 46,530,000 | ||
Purchase price | 181,308,000 | 77,431,000 | 41,728,000 | ||
Unsecured Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum financing amount | 350,000,000 | ||||
Unsecured line of credit | 10,000,000 | ||||
Amount available | $ 340,000,000 | ||||
Interest during period | 1.50% | ||||
Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 20,381,000 | 50,184,000 | |||
Aggregate principal amount | $ 200,000,000 | ||||
Interest during period | 5.07% | ||||
Amount of debt extinguished | $ 29,700,000 | ||||
Purchase price | $ 25,300,000 | ||||
Asset-backed Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Amount of debt extinguished | $ 154,407,000 | 78,412,000 | 32,026,000 | ||
Purchase price | 155,951,000 | $ 72,566,000 | $ 30,354,000 | ||
Other borrowings subject to repurchase agreement | 50,400,000 | ||||
Auction Rate Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes payable | $ 780,800,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate basis | 3.375% | ||||
TDP Phase Three, LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Ownership percentage by parent | 25.00% | ||||
Minimum [Member] | Unsecured Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate basis | 1.00% | ||||
Minimum [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest during period | 5.07% | 4.37% | |||
Minimum [Member] | Auction Rate Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate basis | 1.00% | ||||
Maximum [Member] | Unsecured Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate basis | 2.00% | ||||
Maximum [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest during period | 5.07% | 4.37% | |||
Maximum [Member] | Auction Rate Securities [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest rate basis | 2.50% |
Bonds and Notes Payable - Sched
Bonds and Notes Payable - Schedule of TDP Notes Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Notes payable | $ 21,356,573 | $ 24,668,490 |
TDP Note 1 [Member] | ||
Line of Credit Facility [Line Items] | ||
Notes payable | $ 12,000 | |
Interest during period | 3.38% | |
TDP Note 2 [Member] | ||
Line of Credit Facility [Line Items] | ||
Notes payable | $ 6,355 | |
Interest during period | 3.38% | |
TDP Note 3 [Member] | ||
Line of Credit Facility [Line Items] | ||
Notes payable | $ 1,743 | |
London Interbank Offered Rate (LIBOR) [Member] | TDP Note 3 [Member] | ||
Line of Credit Facility [Line Items] | ||
Variable interest rate basis | 2.00% |
Bonds and Notes Payable - Matur
Bonds and Notes Payable - Maturity of long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Notes payable | $ 21,356,573 | $ 24,668,490 |
Debt and Capital Lease Obligations, Gross [Member] | ||
Debt Instrument [Line Items] | ||
2,018 | 50,418 | |
2,019 | 189,502 | |
2,020 | 146,490 | |
2,021 | 33,410 | |
2,022 | 0 | |
2023 and thereafter | 21,307,307 | |
Notes payable | $ 21,727,127 |
Bonds and Notes Payable - Debt
Bonds and Notes Payable - Debt Repurchases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Par value | $ 184,210 | $ 85,412 | $ 46,530 |
Purchase price | 181,308 | 77,431 | 41,728 |
Gain (loss) from debt repurchases | 2,902 | 7,981 | 4,802 |
Asset-backed Securities [Member] | |||
Debt Instrument [Line Items] | |||
Par value | 154,407 | 78,412 | 32,026 |
Purchase price | 155,951 | 72,566 | 30,354 |
Gain (loss) from debt repurchases | (1,544) | 5,846 | 1,672 |
Unsecured Debt - Hybrid Securities [Member] | |||
Debt Instrument [Line Items] | |||
Par value | 29,803 | 7,000 | 14,504 |
Purchase price | 25,357 | 4,865 | 11,374 |
Gain (loss) from debt repurchases | $ 4,446 | $ 2,135 | $ 3,130 |
Derivative Financial Instrume70
Derivative Financial Instruments - Basis Swap (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Loans receivable | $ 21,814,507 | $ 24,903,724 |
Notes payable | 21,356,573 | 24,668,490 |
One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 11,250,000 | $ 1,775,000 |
Variable interest rate spread | 0.125% | 0.101% |
One Month to Three Month Basis Swap Outstanding 6 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 4,250,000 | |
One Month to Three Month Basis Swap Outstanding 7 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 100,000 | |
One Month to Three Month Basis Swap Outstanding 8 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 300,000 | $ 300,000 |
One Month to Three Month Basis Swap Outstanding 1 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 3,500,000 | |
One Month to Three Month Basis Swap Outstanding 8 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,000,000 | |
One Month to Three Month Basis Swap Outstanding 2 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 250,000 | |
One Month to Three Month Basis Swap Outstanding 3 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,150,000 | 1,150,000 |
One Month to Three Month Basis Swap Oustanding 4 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 375,000 | |
One Month to Three Month Basis Swap Outstanding 5 [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 325,000 | $ 325,000 |
One-month LIBOR, Daily reset [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Loans receivable | 20,000,000 | |
Three-month commercial paper rate [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Loans receivable | 1,100,000 | |
Three-month treasury bill, Daily reset [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Loans receivable | 600,000 | |
Three-month LIBOR, Quarterly reset [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notes payable | 11,700,000 | |
One-month LIBOR, Monthly reset [Member] | One Month to Three Month LIBOR Basis Swap [Member] | ||
Derivative [Line Items] | ||
Notes payable | $ 8,600,000 |
Derivative Financial Instrume71
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - USD ($) $ in Thousands | Aug. 20, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||||
Payments to enter into derivative instruments | $ (929) | $ 0 | $ (2,936) | |
Swaption [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 250,000 | |||
Payments to enter into derivative instruments | $ (9,100) | |||
Derivative, swaption interest rate | 3.30% | |||
Fixed Rate Floor Income [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Student loan assets, fixed floor income | $ 4,800,000 | $ 8,400,000 | ||
Variable conversion rate | 3.17% | 2.42% | ||
Notional amount | $ 7,300,000 | $ 6,950,000 | ||
Weighted average fixed rate paid by the Company | 1.21% | 1.02% | ||
Fixed Rate Floor Income [Member] | Maturity 2017 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 0 | $ 750,000 | ||
Weighted average fixed rate paid by the Company | 0.00% | 0.99% | ||
Fixed Rate Floor Income [Member] | Maturity 2018 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 1,350,000 | $ 1,350,000 | ||
Weighted average fixed rate paid by the Company | 1.07% | 1.07% | ||
Fixed Rate Floor Income [Member] | Maturity 2019 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 3,250,000 | $ 3,250,000 | ||
Weighted average fixed rate paid by the Company | 0.97% | 0.97% | ||
Fixed Rate Floor Income [Member] | Maturity 2020 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 1,500,000 | $ 1,500,000 | ||
Weighted average fixed rate paid by the Company | 1.01% | 1.01% | ||
Fixed Rate Floor Income [Member] | Maturity 2023 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 750,000 | |||
Weighted average fixed rate paid by the Company | 2.28% | |||
Fixed Rate Floor Income [Member] | Maturity 2024 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 300,000 | |||
Weighted average fixed rate paid by the Company | 2.28% | |||
Fixed Rate Floor Income [Member] | Maturity 2025 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 100,000 | $ 100,000 | ||
Weighted average fixed rate paid by the Company | 2.32% | 2.32% | ||
Fixed Rate Floor Income [Member] | Maturity 2027 [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amount | $ 50,000 | |||
Weighted average fixed rate paid by the Company | 2.32% |
Derivative Financial Instrume72
Derivative Financial Instruments - Interest Rate Caps (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)contract | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | |||||
Notes payable | $ 21,356,573,000 | $ 24,668,490,000 | |||
Payments to enter into derivative instruments | 929,000 | 0 | $ 2,936,000 | ||
Proceeds (payments) to terminate and or amend derivative instruments | $ (30,400,000) | $ 4,000,000 | |||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Payments to enter into derivative instruments | $ 2,900,000 | ||||
Derivative, Number Of Contracts | contract | 2 | ||||
Notional amount | $ 275,000,000 | ||||
Proceeds (payments) to terminate and or amend derivative instruments | $ 913,000 | ||||
Interest Rate Cap [Member] | Private Loan Warehouse Total [Member] | |||||
Derivative [Line Items] | |||||
Notes payable | 275,000,000 | ||||
Interest Rate Cap 1 [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | $ 125,000,000 | ||||
Derivative cap interest rate | 2.50% | ||||
Interest Rate Cap 2 [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | $ 150,000,000 | ||||
Derivative cap interest 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 Instrume73
Derivative Financial Instruments - Interest Rate Swaps, Unsecured Debt Hedges (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notes payable | $ 21,356,573 | $ 24,668,490 |
Junior Subordinated Debt [Member] | ||
Derivative [Line Items] | ||
Notes payable | $ 20,381 | 50,184 |
Interest during period | 5.07% | |
Junior Subordinated Debt [Member] | unsecured debt hedges [Member] | Maturity 2036 [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notes payable | $ 20,400 | $ 50,200 |
Interest during period | 3.375% | |
Derivative fixed interest rate | 7.66% | 7.66% |
Notional amount | $ 25,000 | $ 25,000 |
Weighted average fixed rate paid by the Company | 4.28% | 4.28% |
Derivative Financial Instrume74
Derivative Financial Instruments - Cross-currency Interest Rate Swaps (Details) $ in Thousands, € in Millions | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017EUR (€) | Oct. 25, 2017USD ($) | Dec. 31, 2006EUR (€) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of cross currency interest rate swap | $ 26,379 | $ 59,895 | $ (15,150) | |||
Currency Swap [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional amount | 450,000 | € 352.7 | $ 450,000 | |||
Currency Swap And Student Loan Asset Backed Euro Notes [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total impact to consolidated statements of income - (expense) income | (11,392) | 9,895 | (1,394) | |||
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 swap | 34,208 | (1,954) | (45,195) | |||
Student Loan Asset Backed Securities Euro Note [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Issue price | € | € 352.7 | |||||
Student Loan Asset Backed Securities Euro Note [Member] | Currency Swap And Student Loan Asset Backed Euro Notes [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Re-measurement of Euro Notes | $ (45,600) | $ 11,849 | $ 43,801 |
Derivative Financial Instrume75
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | $ 818 | $ 87,531 | |
Fair value of liability derivatives | 7,063 | 77,826 | |
Proceeds (payments) to terminate and or amend derivative instruments | (30,400) | 4,000 | |
Interest Rate Cap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Proceeds (payments) to terminate and or amend derivative instruments | $ 913 | ||
Derivative Financial Instruments, Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 818 | 87,531 | |
Derivative Financial Instruments, Assets [Member] | 1:3 basis swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 0 | |
Proceeds (payments) to terminate and or amend derivative instruments | 2,100 | 600 | |
Derivative Financial Instruments, Assets [Member] | Interest rate swaps - floor income hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 81,159 | |
Proceeds (payments) to terminate and or amend derivative instruments | 3,400 | ||
Derivative Financial Instruments, Assets [Member] | Interest rate swap option - floor income hedge [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 543 | 2,977 | |
Derivative Financial Instruments, Assets [Member] | Interest rate swaps - hybrid debt hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Interest Rate Cap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 275 | 1,152 | |
Proceeds (payments) to terminate and or amend derivative instruments | 900 | ||
Derivative Financial Instruments, Assets [Member] | Cross-currency interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 0 | |
Proceeds (payments) to terminate and or amend derivative instruments | (33,400) | ||
Derivative Financial Instruments, Assets [Member] | Other [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of asset derivatives | 0 | 2,243 | |
Derivative Financial Instruments, Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 7,063 | 77,826 | |
Derivative Financial Instruments, Liabilities [Member] | 1:3 basis swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 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 | 256 | |
Derivative Financial Instruments, Liabilities [Member] | Interest rate swap option - floor income hedge [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Interest rate swaps - hybrid debt hedges [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 7,063 | 7,341 | |
Derivative Financial Instruments, Liabilities [Member] | Interest Rate Cap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 0 | |
Derivative Financial Instruments, Liabilities [Member] | Cross-currency interest rate swaps [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | 0 | 67,605 | |
Derivative Financial Instruments, Liabilities [Member] | Other [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value of liability derivatives | $ 0 | $ 0 |
Derivative Financial Instrume76
Derivative Financial Instruments - Gross/Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative assets | ||
Net asset (liability) | $ 818 | $ 85,126 |
Derivative liabilities | ||
Net asset (liability) | 1,457 | (67,654) |
Derivative Financial Instruments, Assets [Member] | ||
Derivative assets | ||
Gross amounts of recognized assets presented in the consolidated balance sheets | 818 | 87,531 |
Derivatives subject to enforceable master netting arrangement | 0 | (2,880) |
Cash collateral pledged | 0 | 475 |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivative liabilities | ||
Gross amounts of recognized liabilities presented in the consolidated balance sheets | (7,063) | (77,826) |
Derivatives subject to enforceable master netting arrangement | 0 | 2,880 |
Cash collateral pledged | $ 8,520 | $ 7,292 |
Derivative Financial Instrume77
Derivative Financial Instruments - Income Statement Effect of Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | $ 667 | $ (21,949) | $ (24,250) |
Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | 667 | (21,949) | (24,250) |
Change in fair value | 26,379 | 59,895 | (15,150) |
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) | (45,600) | 11,849 | 43,801 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) | (18,554) | 49,795 | 4,401 |
1:3 basis swaps [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | (3,069) | 1,493 | 1,058 |
Change in fair value | (8,224) | (2,938) | 12,292 |
Interest rate swaps - floor income hedges [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | 10,838 | (17,643) | (23,041) |
Change in fair value | 3,585 | 64,111 | 20,103 |
Interest rate swap option - floor income hedges [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (2,433) | (281) | (2,420) |
Interest rate swaps - hybrid debt hedges [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | (781) | (915) | (1,012) |
Change in fair value | 279 | 304 | (295) |
Interest Rate Cap [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (893) | (419) | (1,365) |
Cross-currency interest rate swaps [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | (6,321) | (4,884) | (1,255) |
Change in fair value | 34,208 | (1,954) | (45,195) |
Other [Member] | Other Income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | $ (143) | $ 1,072 | $ 1,730 |
Investments and Notes Receiva78
Investments and Notes Receivable - Investments and Other Receivables Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Holdings [Line Items] | ||
Investments and notes receivable | $ 240,538 | $ 254,144 |
Available-for-sale investments [Member] | ||
Investment Holdings [Line Items] | ||
Securities in continuous loss position less than 12 months | 12,300 | |
Investments [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 80,902 | 106,593 |
Investments [Member] | Available-for-sale investments [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 73,573 | 98,980 |
Gross unrealized gains | 7,354 | 8,210 |
Gross unrealized losses | (25) | (702) |
Fair value | 80,902 | 106,488 |
Investments [Member] | Available-for-sale investments [Member] | Student Loan Asset-Backed and Other Debt Securities [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 71,943 | 98,260 |
Gross unrealized gains | 5,056 | 6,280 |
Gross unrealized losses | (25) | (641) |
Fair value | 76,974 | 103,899 |
Investments [Member] | Available-for-sale investments [Member] | Equity securities [Member] | ||
Investment Holdings [Line Items] | ||
Amortized cost | 1,630 | 720 |
Gross unrealized gains | 2,298 | 1,930 |
Gross unrealized losses | 0 | (61) |
Fair value | 3,928 | 2,589 |
Investments [Member] | Trading investments [Member] | Equity securities [Member] | ||
Investment Holdings [Line Items] | ||
Fair value | 0 | 105 |
Miscellaneous Investments [Member] | Venture Capital Funds [Member] | ||
Investment Holdings [Line Items] | ||
Other investments | 84,752 | 69,789 |
Miscellaneous Investments [Member] | Real Estate Investment [Member] | ||
Investment Holdings [Line Items] | ||
Other investments | 49,464 | 48,379 |
Miscellaneous Investments [Member] | Notes Receivable [Member] | ||
Investment Holdings [Line Items] | ||
Other investments | 16,393 | 17,031 |
Miscellaneous Investments [Member] | Tax liens and affordable housing investments [Member] | ||
Investment Holdings [Line Items] | ||
Other investments | $ 9,027 | $ 12,352 |
Investments and Notes Receiva79
Investments and Notes Receivable - Realized and Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Investment gains (losses) included in other income | $ 2,514 | $ 2,773 | $ 143 |
Available-for-sale Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Gross realized gains | 3,767 | 3,099 | 3,402 |
Gross realized losses | (1,239) | (1,192) | (447) |
Trading Securities [Member] | |||
Gain (Loss) on Investments [Line Items] | |||
Unrealized gains (losses), net | (14) | 525 | (715) |
Realized gains (losses), net | $ 0 | $ 341 | $ (2,097) |
Business Combination - Acquisit
Business Combination - Acquisition Details (Details) - USD ($) $ in Thousands | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Ownership percentage sold | 1.00% | ||
Proceeds from sale of variable interest entity | $ 500 | ||
ALLO Communications [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of voting interests acquired | 92.50% | ||
Consideration transferred | $ 46,250 | ||
Noncontrolling interest, ownership percentage | 7.50% | ||
Noncontrolling Interest, minimum earn up percentage by noncontrolling owners | 11.50% | ||
Maximum earn up percentage by noncontrolling owners | 19.00% | ||
Acquired intangible assets | $ 11,410 | ||
Acquired intangible asset useful life | 12 years | ||
Expected tax deductible goodwill | $ 21,100 | ||
Customer Relationships [Member] | ALLO Communications [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible asset useful life | 10 years | ||
Finite-lived intangible assets acquired | $ 6,300 | ||
Trade Names [Member] | ALLO Communications [Member] | |||
Business Acquisition [Line Items] | |||
Acquired intangible asset useful life | 15 years | ||
Finite-lived intangible assets acquired | $ 5,100 | ||
ALLO Communications [Member] | |||
Business Acquisition [Line Items] | |||
Compensation expense to be recognized over performance period | $ 1,000 |
Business Combination - Schedule
Business Combination - Schedule of Assets Acquired at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 138,759 | $ 147,312 | $ 146,000 |
ALLO Communications [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 334 | ||
Restricted cash | 850 | ||
Accounts receivable | 1,935 | ||
Property and equipment | 32,479 | ||
Other assets | 371 | ||
Intangible assets | 11,410 | ||
Goodwill | 21,112 | ||
Other liabilities | (4,587) | ||
Bonds and notes payable | (13,904) | ||
Net assets acquired | 50,000 | ||
Minority interest | (3,750) | ||
Total consideration paid by the Company | $ 46,250 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life | 124 months | ||
Finite lived intangible assets | $ 38,427 | $ 47,813 | |
Amortization of intangible assets | $ 9,400 | 11,600 | $ 9,800 |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life | 160 months | ||
Finite lived intangible assets | $ 24,168 | 28,335 | |
Accumulated amortization | $ 12,715 | 8,548 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life | 89 months | ||
Finite lived intangible assets | $ 9,074 | 9,919 | |
Accumulated amortization | $ 2,498 | 1,653 | |
Computer Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life | 14 months | ||
Finite lived intangible assets | $ 4,958 | 9,296 | |
Accumulated amortization | $ 10,013 | 5,675 | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life | 77 months | ||
Finite lived intangible assets | $ 227 | 263 | |
Accumulated amortization | $ 127 | $ 91 |
Intangible Assets - Schedule 83
Intangible Assets - Schedule of Intangible Assets Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2,018 | $ 10,428 | |
2,019 | 6,990 | |
2,020 | 3,789 | |
2,021 | 3,077 | |
2,022 | 2,474 | |
2023 and thereafter | 11,669 | |
Finite lived intangible assets | $ 38,427 | $ 47,813 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||
Goodwill, begining balance | $ 147,312 | $ 146,000 | |
Goodwill, acquired during period | 1,312 | ||
Impairment expense | $ (3,600) | (3,626) | |
Sale of Peterson's | (4,927) | ||
Goodwill, ending balance | 138,759 | 147,312 | |
Student Loan and Guaranty Servicing [Member] | |||
Goodwill [Line Items] | |||
Goodwill, begining balance | 8,596 | 8,596 | |
Goodwill, acquired during period | 0 | ||
Impairment expense | 0 | ||
Sale of Peterson's | 0 | ||
Goodwill, ending balance | 8,596 | 8,596 | |
Tuition Payment Processing and Campus Commerce [Member] | |||
Goodwill [Line Items] | |||
Goodwill, begining balance | 67,168 | 67,168 | |
Goodwill, acquired during period | 0 | ||
Impairment expense | 0 | ||
Sale of Peterson's | 0 | ||
Goodwill, ending balance | 67,168 | 67,168 | |
Communications [Member] | |||
Goodwill [Line Items] | |||
Goodwill, begining balance | 21,112 | 19,800 | |
Goodwill, acquired during period | 1,312 | ||
Impairment expense | 0 | ||
Sale of Peterson's | 0 | ||
Goodwill, ending balance | 21,112 | 21,112 | |
Asset Generation and Management [Member] | |||
Goodwill [Line Items] | |||
Goodwill, begining balance | 41,883 | 41,883 | |
Goodwill, acquired during period | 0 | ||
Impairment expense | 0 | ||
Sale of Peterson's | 0 | ||
Goodwill, ending balance | 41,883 | 41,883 | |
Corporate and Other Activities [Member] | |||
Goodwill [Line Items] | |||
Goodwill, begining balance | 8,553 | 8,553 | |
Goodwill, acquired during period | 0 | ||
Impairment expense | (3,626) | ||
Sale of Peterson's | (4,927) | ||
Goodwill, ending balance | $ 0 | $ 8,553 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill [Abstract] | |||||
Impairment expense | $ 3,600 | $ 3,626 | |||
Proceeds from sale of business, net | $ 5,000 | $ 4,511 | $ 0 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 248,051 | $ 123,786 | |
Depreciation expense | 30,200 | 22,400 | $ 16,500 |
Non-Communications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | 182,248 | 148,440 | |
Accumulated depreciation | 105,017 | 91,285 | |
Property and equipment, net | 77,231 | 57,155 | |
Non-Communications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 124,708 | 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] | Office Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 15,210 | 12,344 | |
Non-Communications [Member] | Office Furniture and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Non-Communications [Member] | Office Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Non-Communications [Member] | Building and building improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 24,003 | 13,363 | |
Non-Communications [Member] | Building and building improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Non-Communications [Member] | Building and building improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 39 years | ||
Non-Communications [Member] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 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] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 7,759 | 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 | 15 years | ||
Non-Communications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 2,628 | 1,682 | |
Non-Communications [Member] | Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | 4,127 | 16,346 | |
Communications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | 186,398 | 71,297 | |
Accumulated depreciation | 15,578 | 4,666 | |
Property and equipment, net | 170,820 | 66,631 | |
Communications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 3,790 | 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 plant gross | $ 5,759 | 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 plant gross | $ 70 | 70 | |
Communications [Member] | Construction in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | 11,620 | 12,537 | |
Communications [Member] | Network plant and fiber [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 138,122 | 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] | Central office [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 10,754 | 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] | Customer located property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 13,767 | 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] | Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and plant gross | $ 2,516 | $ 1,268 | |
Communications [Member] | Other [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Communications [Member] | Other [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 39 years |
Shareholders' Equity - Classes
Shareholders' Equity - Classes of Common Stock (Details) | 12 Months Ended |
Dec. 31, 2017vote / shares | |
Common Class B [Member] | |
Class of Stock [Line Items] | |
Votes per common share | 10 |
Common Class A [Member] | |
Class of Stock [Line Items] | |
Votes per common share | 1 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Repurchase shares authorized (in shares) | 5,000,000 | ||
Remaining number of shares authorized to be repurchased (in shares) | 3,100,000 | ||
Total shares repurchased (in shares) | 1,473,054 | 2,038,368 | 2,449,159 |
Purchase price | $ 68,896 | $ 69,091 | $ 96,169 |
Average price of shares repurchased (in dollars per share) | $ 46.77 | $ 33.90 | $ 39.27 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to Nelnet, Inc. | $ 48,100 | $ 46,303 | $ 28,737 | $ 50,026 | $ 98,346 | $ 84,294 | $ 26,150 | $ 47,961 | $ 173,166 | $ 256,751 | $ 267,979 |
Weighted average common shares outstanding - basic and diluted (in shares) | 41,791,941 | 42,669,070 | 45,529,340 | ||||||||
Earnings per share - basic and diluted (in dollars per share) | $ 1.17 | $ 1.11 | $ 0.68 | $ 1.18 | $ 2.32 | $ 1.98 | $ 0.61 | $ 1.11 | $ 4.14 | $ 6.02 | $ 5.89 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | ||||||||
Unvested restricted stock shareholders [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to Nelnet, Inc. | $ 1,724 | $ 2,688 | $ 2,850 | ||||||||
Weighted average common shares outstanding - basic and diluted (in shares) | 415,977 | 446,735 | 484,141 | ||||||||
Earnings per share - basic and diluted (in dollars per share) | $ 4.14 | $ 6.02 | $ 5.89 | ||||||||
Common shareholders [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to Nelnet, Inc. | $ 171,442 | $ 254,063 | $ 265,129 | ||||||||
Weighted average common shares outstanding - basic and diluted (in shares) | 41,375,964 | 42,222,335 | 45,045,199 | ||||||||
Earnings per share - basic and diluted (in dollars per share) | $ 4.14 | $ 6.02 | $ 5.89 | ||||||||
Shares Issued - Deferred [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Non employee director stock, cumulative deferred shares (in shares) | 171,519 | 171,519 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 28,421 | $ 28,004 | $ 27,688 |
Tax benefits which would favorable affect effective tax rate | 22,400 | ||
Anticipated uncertain tax position adjustment | 7,100 | ||
Income tax penalties and interest accrued | 4,500 | 3,500 | |
Interest on income taxes expense | 800 | 300 | $ 1,200 |
Income taxes receivable | 42,400 | $ 13,000 | |
Favorably affect the effective tax rate [Member] | |||
Income Tax Contingency [Line Items] | |||
Anticipated uncertain tax position adjustment | $ 5,600 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross balance - beginning of year | $ 28,004 | $ 27,688 |
Additions based on tax positions of prior years | 145 | 904 |
Additions based on tax positions related to the current year | 2,903 | 4,347 |
Settlements with taxing authorities | 0 | 0 |
Reductions for tax positions of prior years | (356) | (3,088) |
Reductions based on tax positions related to the current year | 0 | 0 |
Reductions due to lapse of applicable statutes of limitations | (2,275) | (1,847) |
Gross balance - end of year | $ 28,421 | $ 28,004 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 65,196 | $ 111,302 | $ 140,778 | ||||||||
State | 1,246 | 3,019 | 4,530 | ||||||||
Foreign | (35) | (13) | 23 | ||||||||
Total current provision | 66,407 | 114,308 | 145,331 | ||||||||
Deferred: | |||||||||||
Federal | (8,270) | 25,423 | 3,572 | ||||||||
State | 6,618 | 1,976 | 3,875 | ||||||||
Foreign | 108 | (394) | (398) | ||||||||
Total deferred provision | (1,544) | 27,005 | 7,049 | ||||||||
Provision for income tax expense | $ (5,486) | $ 25,562 | $ 16,032 | $ 28,755 | $ 54,128 | $ 47,715 | $ 15,036 | $ 24,433 | $ 64,863 | $ 141,313 | $ 152,380 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Tax expense at federal rate | 35.00% | 35.00% | 35.00% | |
Increase (decrease) resulting from: | ||||
Reduction of statutory federal rate (a) | (8.00%) | 0.00% | 0.00% | |
State tax, net of federal income tax benefit | 1.60% | 1.10% | 1.00% | |
Provision for uncertain federal and state tax matters | 0.00% | 0.00% | 0.90% | |
Tax credits | (1.30%) | (0.60%) | (0.50%) | |
Other | 0.00% | 0.00% | (0.10%) | |
Effective tax rate | 27.30% | 35.50% | 36.30% | |
Income tax benefit as result of the Tax Cuts and Jobs Act of 2017 | $ 19.3 | $ 19.3 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Student loans | $ 13,532 | $ 20,980 |
Deferred revenue | 3,246 | 2,699 |
Securitizations | 2,970 | 5,675 |
Intangible assets | 2,899 | 4,821 |
Accrued expenses | 2,246 | 3,533 |
Stock compensation | 1,744 | 2,948 |
Total gross deferred tax assets | 26,637 | 40,656 |
Less valuation allowance | (254) | (264) |
Net deferred tax assets | 26,383 | 40,392 |
Deferred tax liabilities: | ||
Basis in certain derivative contracts | 23,051 | 46,636 |
Partnership basis | 21,474 | 4,976 |
Loan origination services | 8,001 | 13,019 |
Depreciation | 4,958 | 5,128 |
Debt repurchases | 3,856 | 12,457 |
Debt and equity investments | 1,767 | 3,246 |
Other | 823 | 360 |
Total gross deferred tax liabilities | 63,930 | 85,822 |
Net deferred tax liability | $ (37,547) | $ (45,430) |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)operating_segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | operating_segment | 4 | ||||||||||
Total interest income | $ 770,426 | $ 760,746 | $ 734,109 | ||||||||
Interest expense | 465,188 | 388,183 | 302,210 | ||||||||
Net interest income | $ 73,235 | $ 75,237 | $ 79,842 | $ 76,925 | $ 78,960 | $ 99,795 | $ 92,200 | $ 101,609 | 305,238 | 372,563 | 431,899 |
Less provision for loan losses | 3,750 | 6,700 | 3,000 | 1,000 | 3,000 | 6,000 | 2,000 | 2,500 | 14,450 | 13,500 | 10,150 |
Net interest income (loss) after provision for loan losses | 69,485 | 68,537 | 76,842 | 75,925 | 75,960 | 93,795 | 90,200 | 99,109 | 290,788 | 359,063 | 421,749 |
Other income: | |||||||||||
Loan systems and servicing revenue | 55,921 | 55,950 | 56,899 | 54,229 | 53,764 | 54,350 | 54,402 | 52,330 | 223,000 | 214,846 | 239,858 |
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 32,457 | 35,450 | 34,224 | 43,620 | 30,519 | 33,071 | 30,483 | 38,657 | 145,751 | 132,730 | 120,365 |
Communications revenue | 8,122 | 6,751 | 5,719 | 5,106 | 4,492 | 4,343 | 4,478 | 4,346 | 25,700 | 17,659 | 0 |
Enrollment services revenue | 0 | 0 | 0 | 4,326 | 0 | 4,326 | 51,073 | ||||
Other income | 7,952 | 19,756 | 12,485 | 12,632 | 15,218 | 15,150 | 9,765 | 13,796 | 52,826 | 53,929 | 47,262 |
Gain on sale of loans and debt repurchases, net | (2,635) | 116 | 442 | 4,980 | 5,720 | 2,160 | 0 | 101 | 2,902 | 7,981 | 5,153 |
Derivative settlements, net | 667 | (21,949) | (24,250) | ||||||||
Derivative market value and foreign currency transaction adjustments, net | (19,221) | 71,744 | 28,651 | ||||||||
Total other income | 431,625 | 481,266 | 468,112 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 81,201 | 74,193 | 74,628 | 71,863 | 68,017 | 63,743 | 60,923 | 63,242 | 301,885 | 255,924 | 247,914 |
Depreciation and amortization | 11,854 | 10,051 | 9,038 | 8,598 | 9,116 | 8,994 | 8,183 | 7,640 | 39,541 | 33,933 | 26,343 |
Loan servicing fees | 3,064 | 8,017 | 5,628 | 6,025 | 5,726 | 5,880 | 7,216 | 6,928 | 22,734 | 25,750 | 30,213 |
Cost to provide communications services | 3,160 | 2,632 | 2,203 | 1,954 | 1,697 | 1,784 | 1,681 | 1,703 | 9,950 | 6,866 | 0 |
Cost to provide enrollment services | 3,623 | 41,733 | |||||||||
Other expenses | 38,809 | 29,743 | 26,521 | 26,547 | 31,245 | 26,391 | 29,409 | 28,376 | 121,619 | 115,419 | 123,014 |
Intersegment expenses, net | 0 | 0 | 0 | ||||||||
Total operating expenses | 495,729 | 441,515 | 469,217 | ||||||||
Income (loss) before income taxes | 226,684 | 398,814 | 420,644 | ||||||||
Income tax (expense) benefit | 5,486 | (25,562) | (16,032) | (28,755) | (54,128) | (47,715) | (15,036) | (24,433) | (64,863) | (141,313) | (152,380) |
Net income (loss) | 45,714 | 43,535 | 24,651 | 47,920 | 98,931 | 84,363 | 26,178 | 48,029 | 161,821 | 257,501 | 268,264 |
Net loss (income) attributable to noncontrolling interests | 2,386 | 2,768 | 4,086 | 2,106 | (585) | (69) | (28) | (68) | 11,345 | (750) | (285) |
Net income attributable to Nelnet, Inc. | 48,100 | $ 46,303 | $ 28,737 | $ 50,026 | 98,346 | $ 84,294 | $ 26,150 | $ 47,961 | 173,166 | 256,751 | 267,979 |
Total assets | 23,964,435 | 27,193,095 | 23,964,435 | 27,193,095 | 30,419,144 | ||||||
Operating Segments [Member] | Loan Systems and Servicing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 513 | 111 | 49 | ||||||||
Interest expense | 3 | 0 | 0 | ||||||||
Net interest income | 510 | 111 | 49 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income (loss) after provision for loan losses | 510 | 111 | 49 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 223,000 | 214,846 | 239,858 | ||||||||
Intersegment servicing revenue | 41,674 | 45,381 | 50,354 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Communications revenue | 0 | 0 | |||||||||
Enrollment services revenue | 0 | 0 | |||||||||
Other income | 0 | 0 | 0 | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | ||||||||
Total other income | 264,674 | 260,227 | 290,212 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 156,256 | 132,072 | 134,635 | ||||||||
Depreciation and amortization | 2,864 | 1,980 | 1,931 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Cost to provide communications services | 0 | 0 | |||||||||
Cost to provide enrollment services | 0 | 0 | |||||||||
Other expenses | 39,126 | 40,715 | 57,799 | ||||||||
Intersegment expenses, net | 31,871 | 24,204 | 29,706 | ||||||||
Total operating expenses | 230,117 | 198,971 | 224,071 | ||||||||
Income (loss) before income taxes | 35,067 | 61,367 | 66,190 | ||||||||
Income tax (expense) benefit | (18,128) | (23,319) | (25,153) | ||||||||
Net income (loss) | 16,939 | 38,048 | 41,037 | ||||||||
Net loss (income) attributable to noncontrolling interests | 12,640 | 0 | 20 | ||||||||
Net income attributable to Nelnet, Inc. | 29,579 | 38,048 | 41,057 | ||||||||
Total assets | 122,330 | 55,469 | 122,330 | 55,469 | 80,459 | ||||||
Operating Segments [Member] | Tuition Payment Processing and Campus Commerce [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 17 | 9 | 3 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 17 | 9 | 3 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income (loss) after provision for loan losses | 17 | 9 | 3 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 145,751 | 132,730 | 120,365 | ||||||||
Communications revenue | 0 | 0 | |||||||||
Enrollment services revenue | 0 | 0 | |||||||||
Other income | 0 | 0 | (925) | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | ||||||||
Total other income | 145,751 | 132,730 | 119,440 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 69,500 | 62,329 | 55,523 | ||||||||
Depreciation and amortization | 9,424 | 10,595 | 8,992 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Cost to provide communications services | 0 | 0 | |||||||||
Cost to provide enrollment services | 0 | 0 | |||||||||
Other expenses | 19,138 | 18,486 | 15,161 | ||||||||
Intersegment expenses, net | 9,079 | 6,615 | 8,617 | ||||||||
Total operating expenses | 107,141 | 98,025 | 88,293 | ||||||||
Income (loss) before income taxes | 38,627 | 34,714 | 31,150 | ||||||||
Income tax (expense) benefit | (14,678) | (13,191) | (11,838) | ||||||||
Net income (loss) | 23,949 | 21,523 | 19,312 | ||||||||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Nelnet, Inc. | 23,949 | 21,523 | 19,312 | ||||||||
Total assets | 250,351 | 230,283 | 250,351 | 230,283 | 229,615 | ||||||
Operating Segments [Member] | Communications [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 3 | 1 | 0 | ||||||||
Interest expense | 5,427 | 1,271 | 0 | ||||||||
Net interest income | (5,424) | (1,270) | 0 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income (loss) after provision for loan losses | (5,424) | (1,270) | 0 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Communications revenue | 25,700 | 17,659 | |||||||||
Enrollment services revenue | 0 | 0 | |||||||||
Other income | 0 | 0 | 0 | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | ||||||||
Total other income | 25,700 | 17,659 | 0 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 14,947 | 7,649 | 0 | ||||||||
Depreciation and amortization | 11,835 | 6,060 | 0 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Cost to provide communications services | 9,950 | 6,866 | |||||||||
Cost to provide enrollment services | 0 | 0 | |||||||||
Other expenses | 8,074 | 4,370 | 0 | ||||||||
Intersegment expenses, net | 2,101 | 958 | 0 | ||||||||
Total operating expenses | 46,907 | 25,903 | 0 | ||||||||
Income (loss) before income taxes | (26,631) | (9,514) | 0 | ||||||||
Income tax (expense) benefit | 10,120 | 3,615 | 0 | ||||||||
Net income (loss) | (16,511) | (5,899) | 0 | ||||||||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Nelnet, Inc. | (16,511) | (5,899) | 0 | ||||||||
Total assets | 214,336 | 103,104 | 214,336 | 103,104 | 68,760 | ||||||
Operating Segments [Member] | Asset Generation and Management [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 764,225 | 754,788 | 728,199 | ||||||||
Interest expense | 464,256 | 385,913 | 297,625 | ||||||||
Net interest income | 299,969 | 368,875 | 430,574 | ||||||||
Less provision for loan losses | 14,450 | 13,500 | 10,150 | ||||||||
Net interest income (loss) after provision for loan losses | 285,519 | 355,375 | 420,424 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Communications revenue | 0 | 0 | |||||||||
Enrollment services revenue | 0 | 0 | |||||||||
Other income | 13,424 | 15,709 | 15,939 | ||||||||
Gain on sale of loans and debt repurchases, net | (1,567) | 5,846 | 2,034 | ||||||||
Derivative settlements, net | 1,448 | (21,034) | (23,238) | ||||||||
Derivative market value and foreign currency transaction adjustments, net | (19,357) | 70,368 | 27,216 | ||||||||
Total other income | (6,052) | 70,889 | 21,951 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 1,548 | 1,985 | 2,172 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Loan servicing fees | 22,734 | 25,750 | 30,213 | ||||||||
Cost to provide communications services | 0 | 0 | |||||||||
Cost to provide enrollment services | 0 | 0 | |||||||||
Other expenses | 3,900 | 6,005 | 5,083 | ||||||||
Intersegment expenses, net | 42,830 | 46,494 | 50,899 | ||||||||
Total operating expenses | 71,012 | 80,234 | 88,367 | ||||||||
Income (loss) before income taxes | 208,455 | 346,030 | 354,008 | ||||||||
Income tax (expense) benefit | (79,213) | (131,492) | (134,522) | ||||||||
Net income (loss) | 129,242 | 214,538 | 219,486 | ||||||||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Nelnet, Inc. | 129,242 | 214,538 | 219,486 | ||||||||
Total assets | 22,910,974 | 26,378,467 | 22,910,974 | 26,378,467 | 29,634,280 | ||||||
Corporate and Other Activities [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 13,643 | 10,913 | 7,686 | ||||||||
Interest expense | 3,477 | 6,076 | 6,413 | ||||||||
Net interest income | 10,166 | 4,837 | 1,273 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income (loss) after provision for loan losses | 10,166 | 4,837 | 1,273 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | 0 | 0 | 0 | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Communications revenue | 0 | 0 | |||||||||
Enrollment services revenue | 4,326 | 51,073 | |||||||||
Other income | 39,402 | 38,221 | 32,248 | ||||||||
Gain on sale of loans and debt repurchases, net | 4,469 | 2,135 | 3,119 | ||||||||
Derivative settlements, net | (781) | (915) | (1,012) | ||||||||
Derivative market value and foreign currency transaction adjustments, net | 136 | 1,376 | 1,435 | ||||||||
Total other income | 43,226 | 45,143 | 86,863 | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 59,633 | 51,889 | 55,585 | ||||||||
Depreciation and amortization | 15,418 | 15,298 | 15,420 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Cost to provide communications services | 0 | 0 | |||||||||
Cost to provide enrollment services | 3,623 | 41,733 | |||||||||
Other expenses | 51,381 | 45,843 | 44,971 | ||||||||
Intersegment expenses, net | (44,208) | (32,889) | (38,868) | ||||||||
Total operating expenses | 82,224 | 83,764 | 118,841 | ||||||||
Income (loss) before income taxes | (28,832) | (33,784) | (30,705) | ||||||||
Income tax (expense) benefit | 37,036 | 23,074 | 19,132 | ||||||||
Net income (loss) | 8,204 | (10,710) | (11,573) | ||||||||
Net loss (income) attributable to noncontrolling interests | (1,295) | (750) | (305) | ||||||||
Net income attributable to Nelnet, Inc. | 6,909 | (11,460) | (11,878) | ||||||||
Total assets | 877,859 | 682,459 | 877,859 | 682,459 | 624,953 | ||||||
Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | (7,976) | (5,076) | (1,828) | ||||||||
Interest expense | (7,976) | (5,076) | (1,828) | ||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Less provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income (loss) after provision for loan losses | 0 | 0 | 0 | ||||||||
Other income: | |||||||||||
Loan systems and servicing revenue | 0 | 0 | 0 | ||||||||
Intersegment servicing revenue | (41,674) | (45,381) | (50,354) | ||||||||
Tuition payment processing, school information, and campus commerce revenue | 0 | 0 | 0 | ||||||||
Communications revenue | 0 | 0 | |||||||||
Enrollment services revenue | 0 | 0 | |||||||||
Other income | 0 | 0 | 0 | ||||||||
Gain on sale of loans and debt repurchases, net | 0 | 0 | 0 | ||||||||
Derivative settlements, net | 0 | 0 | 0 | ||||||||
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | ||||||||
Total other income | (41,674) | (45,381) | (50,354) | ||||||||
Operating expenses: | |||||||||||
Salaries and benefits | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Loan servicing fees | 0 | 0 | 0 | ||||||||
Cost to provide communications services | 0 | 0 | |||||||||
Cost to provide enrollment services | 0 | 0 | |||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Intersegment expenses, net | (41,674) | (45,381) | (50,354) | ||||||||
Total operating expenses | (41,674) | (45,381) | (50,354) | ||||||||
Income (loss) before income taxes | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income (loss) | 0 | 0 | 0 | ||||||||
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Nelnet, Inc. | 0 | 0 | 0 | ||||||||
Total assets | $ (411,415) | $ (256,687) | $ (411,415) | $ (256,687) | $ (218,923) |
Major Customer (Details)
Major Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 07, 2018 | |
Concentration Risk [Line Items] | ||||||||||||
Loan systems and servicing revenue | $ 55,921 | $ 55,950 | $ 56,899 | $ 54,229 | $ 53,764 | $ 54,350 | $ 54,402 | $ 52,330 | $ 223,000 | $ 214,846 | $ 239,858 | |
Concentration Risk Department of Education [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Loan systems and servicing revenue | $ 155,800 | $ 151,700 | $ 133,200 | |||||||||
Subsequent Event [Member] | Great Lakes Educational Loan Services [Member] | ||||||||||||
Concentration Risk [Line Items] | ||||||||||||
Percentage of voting interests acquired | 100.00% |
Leases - Schedule of future Min
Leases - Schedule of future Minimum Lease Payments for Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
2,018 | $ 5,277 | ||
2,019 | 4,337 | ||
2,020 | 3,628 | ||
2,021 | 2,002 | ||
2,022 | 1,649 | ||
2023 and thereafter | 4,857 | ||
Total minimum lease payments | 21,750 | ||
Rent expense | $ 5,700 | $ 6,000 | $ 5,500 |
Defined Contribution Benefit 98
Defined Contribution Benefit Plan Defined Contribution Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 100.00% | ||
Defined contribution plan cost | $ 6.2 | $ 5.1 | $ 4.6 |
Employer Match on Employee Contributions up to Three Percent of Employee Salary [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Employer match percentage | 100.00% | ||
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Employer match percentage | 50.00% | ||
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 3.00% | ||
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match [Member] | |||
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 2.00% |
Stock Based Compensation Plan99
Stock Based Compensation Plans - Restricted Stock and Employee Share Purchase Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Activity | |||
Discount from market price as of purchase date | 15.00% | ||
Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Non-vested shares at beginning of year (in shares) | 447,380 | 471,597 | 499,463 |
Granted (in shares) | 107,237 | 123,181 | 126,946 |
Vested (in shares) | (131,988) | (113,507) | (108,424) |
Canceled (in shares) | (24,419) | (33,891) | (46,388) |
Non-vested shares at end of year (in shares) | 398,210 | 447,380 | 471,597 |
Share based compensation expense | $ 8,148 | ||
Employee Share Purchase Plan [Member] | |||
Restricted Stock Activity | |||
Allocated share-based compensation expense | $ 197 | $ 287 | $ 147 |
Shares issued (in shares) | 16,989 | 25,551 | 23,912 |
Year one [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | $ 3,211 | ||
Year two [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | 1,960 | ||
Year three [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | 1,211 | ||
Year four [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | 731 | ||
Year five [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | 439 | ||
Year six and thereafter [Member] | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Share based compensation expense | 596 | ||
Salaries and Benefits | Restricted Stock Plan [Member] | |||
Restricted Stock Activity | |||
Allocated share-based compensation expense | $ 4,200 | $ 4,100 | $ 5,200 |
Stock Based Compensation Pla100
Stock Based Compensation Plans - Non-employee Directors Compensation Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Non-employee director stock at lower cost | 85.00% | ||
Non-employee share based compensation expense | $ 922 | $ 922 | $ 905 |
Shares issued under non-employee director plan (in shares) | 17,829 | 24,443 | 18,570 |
Shares Issued - Deferred [Member] | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Shares issued under non-employee director plan (in shares) | 10,974 | 13,644 | 10,406 |
Non employee director stock, cumulative deferred shares (in shares) | 171,519 | ||
Shares Issued - Not Deferred [Member] | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Shares issued under non-employee director plan (in shares) | 6,855 | 10,799 | 8,164 |
Related Parties - Transactions
Related Parties - Transactions with Union Bank and Trust Company (Details) ft² in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loan Purchases and Sales [Abstract] | |||||||||||
Loans receivable, gross | $ 21,995,877,000 | $ 25,103,643,000 | $ 21,995,877,000 | $ 25,103,643,000 | |||||||
Loan Servicing [Abstract] | |||||||||||
Loans receivable | 21,814,507,000 | 24,903,724,000 | 21,814,507,000 | 24,903,724,000 | |||||||
Loan systems and servicing revenue | 55,921,000 | $ 55,950,000 | $ 56,899,000 | $ 54,229,000 | 53,764,000 | $ 54,350,000 | $ 54,402,000 | $ 52,330,000 | 223,000,000 | 214,846,000 | $ 239,858,000 |
Accounts receivable, net | 54,410,000 | 43,972,000 | 54,410,000 | 43,972,000 | |||||||
Operating Cash Accounts [Abstract] | |||||||||||
Cash and cash equivalents related party | 59,770,000 | 61,813,000 | 59,770,000 | 61,813,000 | |||||||
Restricted cash - due to customers | 187,121,000 | 119,702,000 | 187,121,000 | 119,702,000 | |||||||
Interest income | 770,426,000 | 760,746,000 | 734,109,000 | ||||||||
Union Bank and Trust Company [Member] | |||||||||||
Loan Servicing [Abstract] | |||||||||||
Loans receivable | 462,300,000 | 483,800,000 | 462,300,000 | 483,800,000 | 563,100,000 | ||||||
Loan systems and servicing revenue | 500,000 | 600,000 | 500,000 | ||||||||
Accounts receivable, net | 42,000 | 36,000 | 42,000 | 36,000 | |||||||
Funding, Participation Agreement [Abstract] | |||||||||||
Amount of participation, FFELP student loans | 552,600,000 | 496,800,000 | 552,600,000 | 496,800,000 | |||||||
Maximum participation to Union Bank FFELP loans | 750,000,000 | ||||||||||
Operating Cash Accounts [Abstract] | |||||||||||
Cash and cash equivalents related party | 115,800,000 | 74,300,000 | 115,800,000 | 74,300,000 | |||||||
Restricted cash - due to customers | $ 56,000,000 | $ 12,500,000 | 56,000,000 | 12,500,000 | |||||||
Interest income | $ 900,000 | 400,000 | 200,000 | ||||||||
Lease Arrangements [Abstract] | |||||||||||
Square footage leased to Union Bank and Trust Company (in square feet) | ft² | 4 | ||||||||||
Operating lease revenue | $ 74,000 | 73,000 | 73,000 | ||||||||
529 Plan Administration Fees [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 2,000,000 | 1,600,000 | 3,500,000 | ||||||||
Selling Expense [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 13,000 | 47,000 | |||||||||
Cash Management [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 127,000 | 126,000 | 111,000 | ||||||||
Other services [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 205,000 | ||||||||||
General and Administrative Expense [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 36,000 | ||||||||||
Employee Sharing Arrangement [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 219,000 | 209,000 | 201,000 | ||||||||
Health and Productivity Services [Member] | Received from Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 10,000 | 19,000 | |||||||||
401K Plan Administrative Fees [Member] | Paid to Union Bank [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Related party selling, general and administrative expense | 241,000 | 280,000 | 469,000 | ||||||||
Private education loans [Member] | Union Bank and Trust Company [Member] | |||||||||||
Loan Purchases and Sales [Abstract] | |||||||||||
Loans purchased | 2,900,000 | $ 29,600,000 | $ 4,400,000 | ||||||||
Consumer Loan [Member] | Union Bank and Trust Company [Member] | |||||||||||
Loan Purchases and Sales [Abstract] | |||||||||||
Purchases from related party | 10,300,000 | ||||||||||
Processing Fees Received, Net Of Merchant Fees [Member] | Union Bank and Trust Company [Member] | |||||||||||
Other Fees Paid to/Received from Union Bank [Abstract] | |||||||||||
Proceeds from processing fees net of merchant fee | 11,000 | ||||||||||
Merchant fees | $ 1,000 |
Related Parties - Related Party
Related Parties - Related Party Transactions Investment Services (Details) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Basis_Point | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2011shares | |
Union Bank and Whitetail Rock Capital Management management agreement dated May 9, 2011, effective as of May 1, 2011 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | Basis_Point | 25 | |||
Amount invested in funds under Whitetail Rock Capital Management management agreement | $ 665,900 | |||
Percent of gains from the sale of securities Whitetail Rock Capital Management earns | 50.00% | |||
Fee revenue related to investment services | $ 9,200 | $ 4,500 | $ 2,700 | |
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | Basis_Point | 5 | |||
Fee revenue related to investment services | $ 161 | 142 | $ 71 | |
Receivables due from Union Bank and Trust | $ 200 | $ 800 | ||
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] | Board of Directors Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares contributed to the trusts (in shares) | shares | 3,000 | 3,375 | ||
Union Bank and Whitetail Rock Capital Management management agreement dated January 20, 2012 [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Shares contributed to the trusts (in shares) | shares | 1,200 | |||
SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis points Whitetail Rock Capital Management earns from Union Bank on outstanding balance | 50 | |||
Amount invested in funds under Whitetail Rock Capital Management management agreement | $ 149,400 | |||
Percentage of basis points earned paid to Union Bank as custodian | 50.00% | |||
Fees paid to Union Bank as custodian | $ 300 | $ 400 | $ 400 | |
Union Financial Services [Member] | Mr. Butterfield [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage, related party | 50.00% | |||
Union Financial Services [Member] | Mr. Dunlap [Member] | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage, related party | 50.00% |
Related Parties - Transactio103
Related Parties - Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 07, 2017 | Mar. 17, 2015 | |
Agile Sports Technologies, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cost method investment | $ 40,500 | ||||
Ownership percentage, cost method investment | 19.70% | ||||
Agile Sports Technologies, Inc. [Member] | Preferred Stock Investment In Hudl [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cost method investment | $ 10,400 | ||||
Assurity Life Insurance Company [Member] | Payment For Insurance Premiums [Member] | |||||
Related Party Transaction [Line Items] | |||||
Transaction with related party | $ 1,500 | ||||
Assurity Life Insurance Company [Member] | Reinsurance Premiums Paid For By Related Party [Member] | |||||
Related Party Transaction [Line Items] | |||||
Transaction with related party | 1,400 | ||||
Assurity Life Insurance Company [Member] | Annual Insurance Claim Refund [Member] | |||||
Related Party Transaction [Line Items] | |||||
Transaction with related party | 10 | ||||
Assurity Life Insurance Company [Member] | Remitted Employee Paid Insurance Premiums [Member] | |||||
Related Party Transaction [Line Items] | |||||
Transaction with related party | $ 181 | $ 166 | $ 116 | ||
Mr. Dunlap [Member] | Agile Sports Technologies, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage, related party | 3.40% | ||||
Subsidiaries [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payment for insurance claims | $ 700 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities that are Measured at Fair Value (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Fair value | $ 80,902 | $ 106,593 |
Fair value of derivative instruments | 818 | 87,531 |
Total assets | 81,720 | 194,124 |
Liabilities [Abstract] | ||
Fair value of derivative instruments | 7,063 | 77,826 |
Total liabilities | 7,063 | 77,826 |
Student loan and other asset-backed securities [Member] | ||
Assets [Abstract] | ||
Fair value | 76,866 | 103,780 |
Equity securities [Member] | ||
Assets [Abstract] | ||
Fair value | 3,928 | 2,694 |
Debt securities [Member] | ||
Assets [Abstract] | ||
Fair value | 108 | 119 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Fair value | 4,036 | 2,813 |
Fair value of derivative instruments | 0 | 0 |
Total assets | 4,036 | 2,813 |
Liabilities [Abstract] | ||
Fair value of derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 [Member] | Student loan and other asset-backed securities [Member] | ||
Assets [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Equity securities [Member] | ||
Assets [Abstract] | ||
Fair value | 3,928 | 2,694 |
Level 1 [Member] | Debt securities [Member] | ||
Assets [Abstract] | ||
Fair value | 108 | 119 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Fair value | 76,866 | 103,780 |
Fair value of derivative instruments | 818 | 87,531 |
Total assets | 77,684 | 191,311 |
Liabilities [Abstract] | ||
Fair value of derivative instruments | 7,063 | 77,826 |
Total liabilities | 7,063 | 77,826 |
Level 2 [Member] | Student loan and other asset-backed securities [Member] | ||
Assets [Abstract] | ||
Fair value | 76,866 | 103,780 |
Level 2 [Member] | Equity securities [Member] | ||
Assets [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Debt securities [Member] | ||
Assets [Abstract] | ||
Fair value | $ 0 | $ 0 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Loans receivable | $ 21,814,507 | $ 24,903,724 | ||
Cash and cash equivalents | 66,752 | 69,654 | $ 63,529 | $ 130,481 |
Restricted cash | 688,193 | 980,961 | ||
Restricted cash - due to customers | 187,121 | 119,702 | ||
Loan accrued interest receivable | 430,385 | 391,264 | ||
Fair value of derivative instruments | 818 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,356,573 | 24,668,490 | ||
Accrued interest payable | 50,039 | 45,677 | ||
Due to customers | 187,121 | 119,702 | ||
Fair value of derivative instruments | 7,063 | 77,826 | ||
Fair value [Member] | ||||
Financial assets: | ||||
Loans receivable | 23,106,440 | 25,653,581 | ||
Cash and cash equivalents | 66,752 | 69,654 | ||
Investments (available-for-sale) | 80,902 | 106,593 | ||
Notes receivable | 16,393 | 17,031 | ||
Restricted cash | 688,193 | 980,961 | ||
Restricted cash - due to customers | 187,121 | 119,702 | ||
Loan accrued interest receivable | 430,385 | 391,264 | ||
Fair value of derivative instruments | 818 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,521,463 | 24,220,996 | ||
Accrued interest payable | 50,039 | 45,677 | ||
Due to customers | 187,121 | 119,702 | ||
Fair value of derivative instruments | 7,063 | 77,826 | ||
Fair value [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Cash and cash equivalents | 66,752 | 69,654 | ||
Investments (available-for-sale) | 4,036 | 2,813 | ||
Notes receivable | 0 | 0 | ||
Restricted cash | 688,193 | 980,961 | ||
Restricted cash - due to customers | 187,121 | 119,702 | ||
Loan accrued interest receivable | 0 | 0 | ||
Fair value of derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 187,121 | 119,702 | ||
Fair value of derivative instruments | 0 | 0 | ||
Fair value [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (available-for-sale) | 76,866 | 103,780 | ||
Notes receivable | 16,393 | 17,031 | ||
Restricted cash | 0 | 0 | ||
Restricted cash - due to customers | 0 | 0 | ||
Loan accrued interest receivable | 430,385 | 391,264 | ||
Fair value of derivative instruments | 818 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,521,463 | 24,220,996 | ||
Accrued interest payable | 50,039 | 45,677 | ||
Due to customers | 0 | 0 | ||
Fair value of derivative instruments | 7,063 | 77,826 | ||
Fair value [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Loans receivable | 23,106,440 | 25,653,581 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (available-for-sale) | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Restricted cash - due to customers | 0 | 0 | ||
Loan accrued interest receivable | 0 | 0 | ||
Fair value of derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 0 | 0 | ||
Fair value of derivative instruments | 0 | 0 | ||
Carrying value [Member] | ||||
Financial assets: | ||||
Loans receivable | 21,814,507 | 24,903,724 | ||
Cash and cash equivalents | 66,752 | 69,654 | ||
Investments (available-for-sale) | 80,902 | 106,593 | ||
Notes receivable | 16,393 | 17,031 | ||
Restricted cash | 688,193 | 980,961 | ||
Restricted cash - due to customers | 187,121 | 119,702 | ||
Loan accrued interest receivable | 430,385 | 391,264 | ||
Fair value of derivative instruments | 818 | 87,531 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,356,573 | 24,668,490 | ||
Accrued interest payable | 50,039 | 45,677 | ||
Due to customers | 187,121 | 119,702 | ||
Fair value of derivative instruments | $ 7,063 | $ 77,826 |
Quarterly Financial Informat106
Quarterly Financial Information (Unaudited) Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net interest income | $ 73,235 | $ 75,237 | $ 79,842 | $ 76,925 | $ 78,960 | $ 99,795 | $ 92,200 | $ 101,609 | $ 305,238 | $ 372,563 | $ 431,899 |
Less provision for loan losses | 3,750 | 6,700 | 3,000 | 1,000 | 3,000 | 6,000 | 2,000 | 2,500 | 14,450 | 13,500 | 10,150 |
Net interest income after provision for loan losses | 69,485 | 68,537 | 76,842 | 75,925 | 75,960 | 93,795 | 90,200 | 99,109 | 290,788 | 359,063 | 421,749 |
Loan systems and servicing revenue | 55,921 | 55,950 | 56,899 | 54,229 | 53,764 | 54,350 | 54,402 | 52,330 | 223,000 | 214,846 | 239,858 |
Tuition payment processing, school information, and campus commerce revenue | 32,457 | 35,450 | 34,224 | 43,620 | 30,519 | 33,071 | 30,483 | 38,657 | 145,751 | 132,730 | 120,365 |
Communications revenue | 8,122 | 6,751 | 5,719 | 5,106 | 4,492 | 4,343 | 4,478 | 4,346 | 25,700 | 17,659 | 0 |
Enrollment services revenue | 0 | 0 | 0 | 4,326 | 0 | 4,326 | 51,073 | ||||
Other income | 7,952 | 19,756 | 12,485 | 12,632 | 15,218 | 15,150 | 9,765 | 13,796 | 52,826 | 53,929 | 47,262 |
Gain on sale of loans and debt repurchases, net | (2,635) | 116 | 442 | 4,980 | 5,720 | 2,160 | 0 | 101 | 2,902 | 7,981 | 5,153 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | 7,014 | 7,173 | (27,910) | (4,830) | 83,187 | 36,001 | (40,702) | (28,691) | (18,554) | 49,795 | 4,401 |
Salaries and benefits | (81,201) | (74,193) | (74,628) | (71,863) | (68,017) | (63,743) | (60,923) | (63,242) | (301,885) | (255,924) | (247,914) |
Depreciation and amortization | (11,854) | (10,051) | (9,038) | (8,598) | (9,116) | (8,994) | (8,183) | (7,640) | (39,541) | (33,933) | (26,343) |
Loan servicing fees | (3,064) | (8,017) | (5,628) | (6,025) | (5,726) | (5,880) | (7,216) | (6,928) | (22,734) | (25,750) | (30,213) |
Cost to provide communications services | (3,160) | (2,632) | (2,203) | (1,954) | (1,697) | (1,784) | (1,681) | (1,703) | (9,950) | (6,866) | 0 |
Cost to provide enrollment services | 0 | 0 | 0 | (3,623) | 0 | (3,623) | (41,733) | ||||
Operating expenses | (38,809) | (29,743) | (26,521) | (26,547) | (31,245) | (26,391) | (29,409) | (28,376) | (121,619) | (115,419) | (123,014) |
Income tax (expense) benefit | 5,486 | (25,562) | (16,032) | (28,755) | (54,128) | (47,715) | (15,036) | (24,433) | (64,863) | (141,313) | (152,380) |
Net income | 45,714 | 43,535 | 24,651 | 47,920 | 98,931 | 84,363 | 26,178 | 48,029 | 161,821 | 257,501 | 268,264 |
Net loss (income) attributable to noncontrolling interests | 2,386 | 2,768 | 4,086 | 2,106 | (585) | (69) | (28) | (68) | 11,345 | (750) | (285) |
Net income attributable to Nelnet, Inc. | $ 48,100 | $ 46,303 | $ 28,737 | $ 50,026 | $ 98,346 | $ 84,294 | $ 26,150 | $ 47,961 | $ 173,166 | $ 256,751 | $ 267,979 |
Earnings per common share: | |||||||||||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) | $ 1.17 | $ 1.11 | $ 0.68 | $ 1.18 | $ 2.32 | $ 1.98 | $ 0.61 | $ 1.11 | $ 4.14 | $ 6.02 | $ 5.89 |
Condensed Parent Company Fin107
Condensed Parent Company Financial Statements - Condensed Parent Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 66,752 | $ 69,654 | $ 63,529 | $ 130,481 |
Restricted cash | 688,193 | 980,961 | ||
Other assets | 56,474 | 23,232 | ||
Fair value of derivative instruments | 818 | 87,531 | ||
Total assets | 23,964,435 | 27,193,095 | 30,419,144 | |
Liabilities: | ||||
Notes payable | 21,356,573 | 24,668,490 | ||
Other liabilities | 198,252 | 210,475 | ||
Fair value of derivative instruments | 7,063 | 77,826 | ||
Total liabilities | 21,799,048 | 25,122,170 | ||
Nelnet, Inc. shareholders' equity: | ||||
Additional paid-in capital | 521 | 420 | ||
Retained earnings | 2,143,983 | 2,056,084 | ||
Accumulated other comprehensive earnings | 4,617 | 4,730 | ||
Total Nelnet, Inc. shareholders' equity | 2,149,529 | 2,061,655 | ||
Noncontrolling interests | 15,858 | 9,270 | ||
Total equity | 2,165,387 | 2,070,925 | 1,892,158 | 1,725,678 |
Total liabilities and equity | 23,964,435 | 27,193,095 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 21,001 | 29,734 | $ 19,419 | $ 30,712 |
Investments and notes receivable | 149,236 | 167,711 | ||
Investment in subsidiary debt | 75,659 | 71,815 | ||
Restricted cash | 44,149 | 7,805 | ||
Investment in subsidiaries | 1,681,690 | 1,537,507 | ||
Notes receivable from subsidiaries | 212,077 | 161,284 | ||
Other assets | 131,790 | 136,685 | ||
Fair value of derivative instruments | 818 | 86,379 | ||
Total assets | 2,316,420 | 2,198,920 | ||
Liabilities: | ||||
Notes payable | 79,120 | 48,085 | ||
Other liabilities | 76,638 | 74,706 | ||
Fair value of derivative instruments | 7,063 | 10,221 | ||
Total liabilities | 162,821 | 133,012 | ||
Nelnet, Inc. shareholders' equity: | ||||
Common stock | 408 | 421 | ||
Additional paid-in capital | 521 | 420 | ||
Retained earnings | 2,143,983 | 2,056,084 | ||
Accumulated other comprehensive earnings | 4,617 | 4,730 | ||
Total Nelnet, Inc. shareholders' equity | 2,149,529 | 2,061,655 | ||
Noncontrolling interests | 4,070 | 4,253 | ||
Total equity | 2,153,599 | 2,065,908 | ||
Total liabilities and equity | $ 2,316,420 | $ 2,198,920 |
Condensed Parent Company Fin108
Condensed Parent Company Financial Statements - Condensed Parent Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment interest | $ 12,695 | $ 9,466 | $ 7,851 | ||||||||
Interest on bonds and notes payable | 465,188 | 388,183 | 302,210 | ||||||||
Net interest income (expense) | $ 73,235 | $ 75,237 | $ 79,842 | $ 76,925 | $ 78,960 | $ 99,795 | $ 92,200 | $ 101,609 | 305,238 | 372,563 | 431,899 |
Other income (expense): | |||||||||||
Other income | 7,952 | 19,756 | 12,485 | 12,632 | 15,218 | 15,150 | 9,765 | 13,796 | 52,826 | 53,929 | 47,262 |
Gain from debt repurchases, net | (2,635) | 116 | 442 | 4,980 | 5,720 | 2,160 | 0 | 101 | 2,902 | 7,981 | 5,153 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | 7,014 | 7,173 | (27,910) | (4,830) | 83,187 | 36,001 | (40,702) | (28,691) | (18,554) | 49,795 | 4,401 |
Total other income | 431,625 | 481,266 | 468,112 | ||||||||
Operating expenses | 495,729 | 441,515 | 469,217 | ||||||||
Income tax (expense) benefit | 5,486 | (25,562) | (16,032) | (28,755) | (54,128) | (47,715) | (15,036) | (24,433) | (64,863) | (141,313) | (152,380) |
Net income | 45,714 | 43,535 | 24,651 | 47,920 | 98,931 | 84,363 | 26,178 | 48,029 | 161,821 | 257,501 | 268,264 |
Net (loss) income attributable to noncontrolling interests | 2,386 | 2,768 | 4,086 | 2,106 | (585) | (69) | (28) | (68) | 11,345 | (750) | (285) |
Net income attributable to Nelnet, Inc. | $ 48,100 | $ 46,303 | $ 28,737 | $ 50,026 | $ 98,346 | $ 84,294 | $ 26,150 | $ 47,961 | 173,166 | 256,751 | 267,979 |
Parent Company [Member] | |||||||||||
Investment interest | 13,060 | 9,794 | 5,776 | ||||||||
Interest on bonds and notes payable | 3,315 | 6,049 | 6,242 | ||||||||
Net interest income (expense) | 9,745 | 3,745 | (466) | ||||||||
Other income (expense): | |||||||||||
Other income | 3,483 | 7,037 | 4,012 | ||||||||
Gain from debt repurchases, net | 2,964 | 8,083 | 4,904 | ||||||||
Equity in subsidiaries income | 170,897 | 239,405 | 276,825 | ||||||||
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | (603) | 45,203 | 8,416 | ||||||||
Total other income | 176,741 | 299,728 | 294,157 | ||||||||
Operating expenses | 6,117 | 8,183 | 5,057 | ||||||||
Income before income taxes | 180,369 | 295,290 | 288,634 | ||||||||
Income tax (expense) benefit | (7,491) | (38,642) | (20,655) | ||||||||
Net income | 172,878 | 256,648 | 267,979 | ||||||||
Net (loss) income attributable to noncontrolling interests | 288 | 103 | 0 | ||||||||
Net income attributable to Nelnet, Inc. | $ 173,166 | $ 256,751 | $ 267,979 |
Condensed Parent Company Fin109
Condensed Parent Company Financial Statements - Condensed Parent Statement of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 45,714 | $ 43,535 | $ 24,651 | $ 47,920 | $ 98,931 | $ 84,363 | $ 26,178 | $ 48,029 | $ 161,821 | $ 257,501 | $ 268,264 |
Unrealized holding gains (losses) arising during period, net | 2,349 | 5,789 | (1,570) | ||||||||
Reclassification adjustment for gains recognized in net income, net of losses | (2,528) | (1,907) | (2,955) | ||||||||
Income tax effect | 66 | (1,436) | 1,674 | ||||||||
Total other comprehensive (loss) income | (113) | 2,446 | (2,851) | ||||||||
Comprehensive income | 161,708 | 259,947 | 265,413 | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 11,345 | (750) | (285) | ||||||||
Comprehensive income attributable to Nelnet, Inc. | 173,053 | 259,197 | 265,128 | ||||||||
Parent Company [Member] | |||||||||||
Net income | 172,878 | 256,648 | 267,979 | ||||||||
Unrealized holding gains (losses) arising during period, net | 2,349 | 5,789 | (1,570) | ||||||||
Reclassification adjustment for gains recognized in net income, net of losses | (2,528) | (1,907) | (2,955) | ||||||||
Income tax effect | 66 | (1,436) | 1,674 | ||||||||
Total other comprehensive (loss) income | (113) | 2,446 | (2,851) | ||||||||
Comprehensive income | 172,765 | 259,094 | 265,128 | ||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 288 | 103 | 0 | ||||||||
Comprehensive income attributable to Nelnet, Inc. | $ 173,053 | $ 259,197 | $ 265,128 |
Condensed Parent Company Fin110
Condensed Parent Company Financial Statements - Condensed Parent Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income attributable to Nelnet, Inc. | $ 48,100 | $ 46,303 | $ 28,737 | $ 50,026 | $ 98,346 | $ 84,294 | $ 26,150 | $ 47,961 | $ 173,166 | $ 256,751 | $ 267,979 |
Net loss attributable to noncontrolling interest | (2,386) | (2,768) | (4,086) | (2,106) | 585 | 69 | 28 | 68 | (11,345) | 750 | 285 |
Net income | 45,714 | $ 43,535 | $ 24,651 | 47,920 | 98,931 | $ 84,363 | $ 26,178 | 48,029 | 161,821 | 257,501 | 268,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 137,823 | 122,547 | 123,736 | ||||||||
Proceeds from termination of derivative instruments, net of payments | 30,400 | (4,000) | |||||||||
Payment to enter into derivative instrument | (929) | 0 | (2,936) | ||||||||
Proceeds from clearinghouse to settle variation margin, net | 48,985 | 0 | 0 | ||||||||
Gain from sales of available-for-sale securities, net of losses | (2,528) | (1,907) | (2,955) | ||||||||
Deferred income tax (benefit) expense | (1,544) | 27,005 | 7,049 | ||||||||
Non-cash compensation expense | 4,416 | 4,348 | 5,347 | ||||||||
Decrease (increase) in other assets | (34,457) | (2,203) | 375 | ||||||||
(Decrease) increase in other liabilities | (2,341) | 2,409 | (8,736) | ||||||||
Net cash provided by operating activities | 227,508 | 325,257 | 391,365 | ||||||||
Cash flows from investing activities, net of acquisitions: | |||||||||||
(Increase) decrease in restricted cash | 320,108 | (147,487) | 67,108 | ||||||||
Purchases of available-for-sale securities | (128,523) | (94,673) | (100,476) | ||||||||
Business and asset acquisitions, net of cash acquired | 0 | 0 | (46,966) | ||||||||
Net cash provided by investing activities | 3,270,090 | 3,259,415 | 1,417,362 | ||||||||
Cash flows from financing activities, net of borrowings assumed: | |||||||||||
Payments on notes payable | (5,403,224) | (4,134,890) | (4,368,180) | ||||||||
Proceeds from issuance of notes payable | 1,984,558 | 650,909 | 2,614,595 | ||||||||
Payments of debt issuance costs | (6,497) | (5,845) | (11,162) | ||||||||
Dividends paid | (24,097) | (21,188) | (19,025) | ||||||||
Repurchases of common stock | (68,896) | (69,091) | (96,169) | ||||||||
Proceeds from issuance of common stock | 678 | 889 | 801 | ||||||||
Issuance of noncontrolling interests | 19,473 | 1,241 | 3,693 | ||||||||
Distribution to noncontrolling interests | (1,645) | (572) | (232) | ||||||||
Net cash used in financing activities | (3,500,500) | (3,578,547) | (1,875,679) | ||||||||
Net (decrease) increase in cash and cash equivalents | (2,902) | 6,125 | (66,952) | ||||||||
Cash and cash equivalents, beginning of year | 69,654 | 63,529 | 69,654 | 63,529 | 130,481 | ||||||
Cash and cash equivalents, end of year | 66,752 | 69,654 | 66,752 | 69,654 | 63,529 | ||||||
Cash disbursements made for: | |||||||||||
Interest | 390,278 | 301,118 | 228,248 | ||||||||
Income taxes, net of refunds | 96,721 | 115,415 | 147,235 | ||||||||
Noncash investing and financing activities: | |||||||||||
Issuance of noncontrolling interest | 0 | 20 | 3,750 | ||||||||
Parent Company [Member] | |||||||||||
Net income attributable to Nelnet, Inc. | 173,166 | 256,751 | 267,979 | ||||||||
Net loss attributable to noncontrolling interest | (288) | (103) | 0 | ||||||||
Net income | 172,878 | 256,648 | 267,979 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 420 | 391 | 327 | ||||||||
Derivative market value adjustment | 7,591 | (62,268) | (31,411) | ||||||||
Proceeds from termination of derivative instruments, net of payments | 2,100 | 3,999 | 65,527 | ||||||||
Payment to enter into derivative instrument | (929) | 0 | 0 | ||||||||
Proceeds from clearinghouse to settle variation margin, net | 48,985 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (170,897) | (239,405) | (276,825) | ||||||||
Gain from sales of available-for-sale securities, net of losses | (2,528) | (1,907) | (2,955) | ||||||||
Gain from debt repurchases, net | (2,964) | (8,083) | (4,904) | ||||||||
Deferred income tax (benefit) expense | (8,056) | 20,071 | 3,228 | ||||||||
Non-cash compensation expense | 4,416 | 4,348 | 5,347 | ||||||||
Other | 2,967 | 1,117 | 1,946 | ||||||||
Decrease (increase) in other assets | 4,171 | 32,262 | (8,541) | ||||||||
(Decrease) increase in other liabilities | 10,104 | (594) | 6,597 | ||||||||
Net cash provided by operating activities | 68,258 | 6,579 | 26,315 | ||||||||
Cash flows from investing activities, net of acquisitions: | |||||||||||
(Increase) decrease in restricted cash | (9,004) | 6,997 | (13,825) | ||||||||
Purchases of available-for-sale securities | (127,567) | (94,920) | (98,332) | ||||||||
Proceeds from sales of available-for-sale securities | 156,727 | 139,427 | 94,722 | ||||||||
Capital contributions/distributions to/from subsidiaries, net | 29,426 | 223,386 | 120,291 | ||||||||
(Increase) decrease in notes receivable from subsidiaries | (50,793) | 8,561 | (84,061) | ||||||||
Proceeds from investments and notes receivable | 4,823 | 9,952 | 12,253 | ||||||||
(Purchases of) proceeds from subsidiary debt, net | (3,844) | (13,800) | 72,125 | ||||||||
Purchases of investments and issuances of notes receivable | (18,023) | (4,365) | (53,388) | ||||||||
Business and asset acquisitions, net of cash acquired | 0 | 0 | (45,916) | ||||||||
Net cash provided by investing activities | (18,255) | 275,238 | 3,869 | ||||||||
Cash flows from financing activities, net of borrowings assumed: | |||||||||||
Payments on notes payable | (27,480) | (412,000) | (42,541) | ||||||||
Proceeds from issuance of notes payable | 61,059 | 230,000 | 116,460 | ||||||||
Payments of debt issuance costs | 0 | (613) | (773) | ||||||||
Dividends paid | (24,097) | (21,188) | (19,025) | ||||||||
Repurchases of common stock | (68,896) | (69,091) | (96,169) | ||||||||
Proceeds from issuance of common stock | 678 | 889 | 801 | ||||||||
Issuance of noncontrolling interests | 0 | 501 | 0 | ||||||||
Distribution to noncontrolling interests | 0 | 0 | (230) | ||||||||
Net cash used in financing activities | (58,736) | (271,502) | (41,477) | ||||||||
Net (decrease) increase in cash and cash equivalents | (8,733) | 10,315 | (11,293) | ||||||||
Cash and cash equivalents, beginning of year | $ 29,734 | $ 19,419 | 29,734 | 19,419 | 30,712 | ||||||
Cash and cash equivalents, end of year | $ 21,001 | $ 29,734 | 21,001 | 29,734 | 19,419 | ||||||
Cash disbursements made for: | |||||||||||
Interest | 2,882 | 5,533 | 5,914 | ||||||||
Income taxes, net of refunds | 96,721 | 115,415 | 147,130 | ||||||||
Noncash investing and financing activities: | |||||||||||
Issuance of noncontrolling interest | 0 | 0 | 3,750 | ||||||||
Contributions of investments to subsidiaries, net | $ 2,092 | $ 1,884 | $ 0 |