Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | NELNET INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 1,258,602 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,212,160 | |
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) | $ 21,562,030 | $ 21,814,507 |
Cash and cash equivalents: | ||
Cash and cash equivalents - not held at a related party | 17,200 | 6,982 |
Cash and cash equivalents - held at a related party | 52,086 | 59,770 |
Total cash and cash equivalents | 69,286 | 66,752 |
Investments and notes receivable | 258,426 | 240,538 |
Restricted cash | 727,471 | 688,193 |
Restricted cash – due to customers | 128,515 | 187,121 |
Accrued interest receivable | 489,395 | 430,385 |
Accounts receivable (net of allowance for doubtful accounts of $1,627 and $1,436, respectively) | 61,394 | 37,863 |
Goodwill | 158,456 | 138,759 |
Intangible assets, net | 107,192 | 38,427 |
Property and equipment, net | 299,837 | 248,051 |
Other assets | 34,509 | 73,021 |
Fair value of derivative instruments | 1,891 | 818 |
Total assets | 23,898,402 | 23,964,435 |
Liabilities: | ||
Bonds and notes payable | 21,227,349 | 21,356,573 |
Accrued interest payable | 54,252 | 50,039 |
Other liabilities | 237,459 | 198,252 |
Due to customers | 128,515 | 187,121 |
Fair value of derivative instruments | 5,601 | 7,063 |
Total liabilities | 21,653,176 | 21,799,048 |
Commitments and contingencies | ||
Nelnet, Inc. shareholders' equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 448 | 521 |
Retained earnings | 2,231,875 | 2,143,983 |
Accumulated other comprehensive earnings | 3,022 | 4,617 |
Total Nelnet, Inc. shareholders' equity | 2,235,753 | 2,149,529 |
Noncontrolling interests | 9,473 | 15,858 |
Total equity | 2,245,226 | 2,165,387 |
Total liabilities and equity | 23,898,402 | 23,964,435 |
Common Class A [Member] | ||
Nelnet, Inc. shareholders' equity: | ||
Common stock | 293 | 293 |
Common Class B [Member] | ||
Nelnet, Inc. shareholders' equity: | ||
Common stock | 115 | 115 |
Supplemental information - assets and liabilities of concolidated education lending variable interest entities: [Member] | ||
Assets: | ||
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) | 21,633,845 | 21,909,476 |
Cash and cash equivalents: | ||
Restricted cash | 682,446 | 641,994 |
Other assets | 490,747 | 431,934 |
Liabilities: | ||
Bonds and notes payable | 21,450,983 | 21,702,298 |
Other liabilities | 186,611 | 168,637 |
Nelnet, Inc. shareholders' equity: | ||
Net assets of consolidated education lending variable interest entities | $ 1,169,444 | $ 1,112,469 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses | $ 55,294 | $ 54,590 |
Allowance for doubtful accounts | $ 1,627 | $ 1,436 |
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) | 29,289,689 | 29,341,517 |
Shares Outstanding (in shares) | 29,289,689 | 29,341,517 |
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 | 11,468,587 |
Shares Outstanding (in shares) | 11,468,587 | 11,468,587 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income: | ||
Loan interest | $ 197,723 | $ 181,207 |
Investment interest | 5,134 | 2,617 |
Total interest income | 202,857 | 183,824 |
Interest expense: | ||
Interest on bonds and notes payable | 135,550 | 106,899 |
Net interest income | 67,307 | 76,925 |
Less provision for loan losses | 4,000 | 1,000 |
Net interest income (loss) after provision for loan losses | 63,307 | 75,925 |
Other income: | ||
Loan servicing and systems revenue | 100,141 | 54,229 |
Education technology, services, and payment processing revenue | 60,221 | 56,024 |
Communications revenue | 9,189 | 5,106 |
Other income | 18,198 | 12,632 |
Gain from debt repurchases | 359 | 4,980 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | 66,799 | (4,830) |
Total other income | 254,907 | 128,141 |
Cost of services: | ||
Cost to provide education technology, services, and payment processing services | 13,683 | 12,790 |
Cost to provide communications services | 3,717 | 1,954 |
Total cost of services | 17,400 | 14,744 |
Operating expenses: | ||
Salaries and benefits | 96,643 | 71,863 |
Depreciation and amortization | 18,457 | 8,598 |
Loan servicing fees | 3,136 | 6,025 |
Other expenses | 33,417 | 26,161 |
Total operating expenses | 151,653 | 112,647 |
Income before income taxes | 149,161 | 76,675 |
Income tax expense | 35,976 | 28,755 |
Net income (loss) | 113,185 | 47,920 |
Net loss attributable to noncontrolling interests | 740 | 2,106 |
Net income (loss) attributable to Nelnet, Inc. | $ 113,925 | $ 50,026 |
Earnings per common share: | ||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) | $ 2.78 | $ 1.18 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,950,528 | 42,291,857 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 113,185 | $ 47,920 |
Available-for-sale securities: | ||
Unrealized holding (losses) gains arising during period, net | (1,061) | 1,259 |
Reclassification adjustment for gains recognized in net income, net of losses | (47) | (331) |
Income tax effect | 256 | (343) |
Total other comprehensive (loss) income | (852) | 585 |
Comprehensive income | 112,333 | 48,505 |
Comprehensive loss attributable to noncontrolling interests | 740 | 2,106 |
Comprehensive income attributable to Nelnet, Inc. | $ 113,073 | $ 50,611 |
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 interests [Member] |
Balance (in shares) at Dec. 31, 2016 | 0 | 30,628,112 | 11,476,932 | |||||
Balance at Dec. 31, 2016 | $ 2,070,925 | $ 0 | $ 306 | $ 115 | $ 420 | $ 2,056,084 | $ 4,730 | $ 9,270 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 12,626 | 12,626 | ||||||
Net income (loss) | 47,920 | 50,026 | 2,106 | |||||
Other comprehensive income | 585 | 585 | ||||||
Distribution to noncontrolling interests | (310) | (310) | ||||||
Cash dividend on Class A and Class B common stock | (5,896) | (5,896) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 143,789 | |||||||
Issuance of common stock, net of forfeitures | 2,090 | $ 1 | 2,089 | |||||
Compensation expense for stock based awards | 1,096 | 1,096 | ||||||
Repurchase of common stock (in shares) | (31,716) | |||||||
Repurchase of common stock | (1,369) | (1,369) | ||||||
Balance (in shares) at Mar. 31, 2017 | 0 | 30,740,185 | 11,476,932 | |||||
Balance at Mar. 31, 2017 | 2,127,667 | $ 0 | $ 307 | $ 115 | 2,236 | 2,100,214 | 5,315 | 19,480 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Impact of adoption of new accounting standards | 1,264 | 2,007 | (743) | |||||
Balance (in shares) at Dec. 31, 2017 | 0 | 29,341,517 | 11,468,587 | |||||
Balance at Dec. 31, 2017 | 2,165,387 | $ 0 | $ 293 | $ 115 | 521 | 2,143,983 | 4,617 | 15,858 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 26 | 26 | ||||||
Net income (loss) | 113,185 | 113,925 | 740 | |||||
Other comprehensive income | (852) | (852) | ||||||
Distribution to noncontrolling interests | (19) | (19) | ||||||
Cash dividend on Class A and Class B common stock | (6,506) | (6,506) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 170,346 | |||||||
Issuance of common stock, net of forfeitures | 2,173 | $ 2 | 2,171 | |||||
Compensation expense for stock based awards | 1,087 | 1,087 | ||||||
Repurchase of common stock (in shares) | (222,174) | |||||||
Repurchase of common stock | (11,418) | $ (2) | (3,331) | (8,085) | ||||
Acquisition of noncontrolling interest | (19,101) | (13,449) | (5,652) | |||||
Balance (in shares) at Mar. 31, 2018 | 0 | 29,289,689 | 11,468,587 | |||||
Balance at Mar. 31, 2018 | $ 2,245,226 | $ 0 | $ 293 | $ 115 | $ 448 | $ 2,231,875 | $ 3,022 | $ 9,473 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Common Class A [Member] | ||
Dividends paid per common share (in dollars per share) | $ 0.16 | $ 0.14 |
Common Class B [Member] | ||
Dividends paid per common share (in dollars per share) | $ 0.16 | $ 0.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) attributable to Nelnet, Inc. | $ 113,925 | $ 50,026 |
Net loss attributable to noncontrolling interests | (740) | (2,106) |
Net income (loss) | 113,185 | 47,920 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition: | ||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 43,301 | 34,310 |
Loan discount accretion | (11,691) | (12,014) |
Provision for loan losses | 4,000 | 1,000 |
Derivative market value adjustment | (60,033) | (1,238) |
Unrealized foreign currency transaction adjustment | 0 | 4,690 |
Proceeds from clearinghouse to settle variation margin, net | 62,689 | 0 |
Gain from debt repurchases | (359) | (4,980) |
Gain from equity securities, net of losses | (6,838) | 0 |
Deferred income tax expense (benefit) | 16,883 | (1,753) |
Non-cash compensation expense | 1,161 | 1,121 |
Other | (4,302) | 242 |
Increase in loan accrued interest receivable | (59,038) | (1,490) |
Decrease (increase) in accounts receivable | 177 | (282) |
Decrease (increase) in other assets | 49,415 | (1,397) |
Increase in accrued interest payable | 4,213 | 750 |
(Decrease) increase in other liabilities | (36,205) | 6,954 |
Decrease in due to customers | (58,606) | (26,003) |
Net cash provided by operating activities | 57,952 | 47,830 |
Cash flows from investing activities, net of acquisition: | ||
Purchases of loans | (610,855) | (50,126) |
Net proceeds from loan repayments, claims, capitalized interest, and other | 863,270 | 953,698 |
Purchases of available-for-sale securities | (28,164) | (53,530) |
Proceeds from sales of available-for-sale securities | 21,951 | 37,809 |
Purchases of investments and issuance of notes receivable | (16,370) | (4,898) |
Proceeds from investments and notes receivable | 9,718 | 1,605 |
Purchases of property and equipment | (28,068) | (26,469) |
Business acquisition, net of cash acquired | (109,152) | 0 |
Net cash provided by investing activities | 102,330 | 858,089 |
Cash flows from financing activities: | ||
Payments on bonds and notes payable | (901,008) | (1,128,899) |
Proceeds from issuance of bonds and notes payable | 756,700 | 37,496 |
Payments of debt issuance costs | (1,650) | (364) |
Dividends paid | (6,506) | (5,896) |
Repurchases of common stock | (11,418) | (1,369) |
Proceeds from issuance of common stock | 274 | 0 |
Acquisition of noncontrolling interest | (13,449) | 0 |
Issuance of noncontrolling interests | 0 | 12,600 |
Distribution to noncontrolling interests | (19) | (310) |
Net cash used in financing activities | (177,076) | (1,086,742) |
Net decrease in cash, cash equivalents, and restricted cash | (16,794) | (180,823) |
Cash, cash equivalents, and restricted cash, beginning of period | 942,066 | 1,170,317 |
Cash, cash equivalents, and restricted cash, end of period | 925,272 | 989,494 |
Supplemental disclosures of cash flow information: | ||
Cash disbursements made for interest | 114,243 | 88,066 |
Cash (refunds received) disbursements made for income taxes, net | $ (30,569) | $ 1,180 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Cash, Cash Equivalents And Restricted Cash Reconciliation - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||||
Total cash and cash equivalents | $ 69,286 | $ 66,752 | $ 108,160 | $ 69,654 |
Restricted cash | 727,471 | 688,193 | 787,635 | 980,961 |
Restricted cash – due to customers | 128,515 | 187,121 | 93,699 | 119,702 |
Cash, cash equivalents, and restricted cash | $ 925,272 | $ 942,066 | $ 989,494 | $ 1,170,317 |
Basis of Financial Reporting
Basis of Financial Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Reporting | Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2017 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 . The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the " 2017 Annual Report"). Reporting Segment Name Changes The Company changed the name of the Tuition Payment Processing and Campus Commerce operating segment to Education Technology, Services, and Payment Processing this quarter to better describe the evolution of services this operating segment provides. In addition, the Loan Systems and Servicing segment was retitled as Loan Servicing and Systems. As a result, the line items "tuition payment processing, school information, and campus commerce revenue" and "loan systems and servicing revenue" on the consolidated statements of income were changed to "education technology, services, and payment processing revenue" and "loan servicing and systems revenue," respectively. Reclassifications Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include: • Reclassifying certain non-customer receivables, which were previously included in "accounts receivable" to "other assets." • Reclassifying direct costs to provide services for education technology, services, and payment processing, which were previously included in "other expenses" to "cost to provide education technology, services, and payment processing services." • Reclassifying the line item "cost to provide communications services" on the statements of income from part of "operating expenses" and presenting such costs as part of "cost of services." Accounting Standards Adopted in 2018 In the first quarter of 2018, the Company adopted the following new accounting guidance: Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard effective January 1, 2018, using the full retrospective method, which required it to restate each prior reporting period presented. As a result, the Company has changed its accounting policy for revenue recognition as detailed in note 2, “Summary of Significant Accounting Policies and Practices.” The most significant impact of the standard relates to identifying the Company's Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company will present the payment services revenue gross with the direct costs to provide these services presented separately. The majority of the Company's revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new guidance. Other than the payment services transactions discussed above, the Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns. Impacts to Previously Reported Results Adoption of the revenue recognition standard impacted the Company’s previously reported results on the consolidated statements of income as follows: Three months ended March 31, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 43,620 12,404 56,024 Cost to provide education technology, services, and payment processing services — 12,404 12,404 (a) (a) In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassed other direct costs to provide education technology, services, and payment processing revenue which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services." Adoption of the new revenue recognition standard had no impact to the consolidated balance sheets or cash provided by or used in operating, financing, or investing activities on the consolidated statements of cash flows. Equity Investments In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The guidance requires equity investments with readily determinable fair values to be measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity may choose to measure equity investments without readily determinable fair values at fair value or use the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, the impairment assessment is simplified by requiring a qualitative assessment to identify impairment. The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities with readily determinable fair values previously recognized in accumulated other comprehensive income; and along with a related clarifying update, was adopted by the Company as of January 1, 2018. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to retained earnings, accumulated other comprehensive earnings, and investments and notes receivable. Subsequent to the adoption, the Company is accounting for the majority of its equity investments without readily determinable fair values using the measurement alternative. Other Comprehensive Income In February 2018, the FASB issued guidance which allows a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which became effective on January 1, 2018. This guidance is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted in periods for which financial statements have not yet been issued. The Company elected to early adopt this guidance as of January 1, 2018. Upon adoption, the Company recorded an immaterial reclassification between accumulated other comprehensive earnings and retained earnings. Restricted Cash In November 2016, the FASB issued accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of such total to amounts on the balance sheet. The Company adopted the standard effective January 1, 2018 using the retrospective transition method. Adoption of this standard impacted the Company's previously reported results on the consolidated statements of cash flows as follows: Three months ended March 31, 2017 As previously reported Impact of adoption As restated Decrease in due to customers $ — (26,003 ) (26,003 ) Net cash provided by operating activities 73,833 (26,003 ) 47,830 Decrease in restricted cash 193,326 (193,326 ) — Net cash provided by investing activities 1,051,415 (193,326 ) 858,089 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices Except for the changes below, no material changes have been made to the Company’s significant accounting policies disclosed in note 3, Summary of Significant Accounting Policies and Practices, in its 2017 Annual Report. Revenue Recognition The Company applies the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Additional information related to the Company's revenue recognition of specific items is further provided below. The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Loan servicing and systems revenue - Loan servicing and systems revenue consists of the following items: • Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the promise is substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits. • Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue from remote hosted licenses is allocated to and recognized in the distinct service period, typically a month, and recognized as control transfers, and non-refundable up-front revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Loan conversion activities in certain customer contracts are capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to loan conversion activities is recognized at the point in time when the conversion is complete. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided. • Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits. The following table provides disaggregated revenue by service offering: Three months ended March 31, 2018 2017 Government servicing - Nelnet $ 39,327 39,007 Government servicing - Great Lakes (a) 30,754 — Private education and consumer loan servicing 13,101 5,817 FFELP servicing 7,691 4,077 Software services 7,589 4,337 Outsourced services revenue and other 1,679 991 Loan servicing and systems revenue $ 100,141 54,229 (a) Great Lakes Educational Loan Services, Inc. ("Great Lakes") was acquired by the Company on February 7, 2018. For additional information about the acquisition, see note 7. Education technology, services, and payment processing revenue - Education technology, services, and payment processing revenue consists of the following items: • Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously consume and receive benefits. • Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is determined based on the services selected by the customer. Services in K-12 private and faith based schools include (i) assistance with financial needs assessment, (ii) automating administrative processes such as admissions, online applications and enrollment services, scheduling, student billing, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. Services also include innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits. • Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits. The following table provides disaggregated revenue by service offering: Three months ended March 31, 2018 2017 Tuition payment plan services $ 23,043 21,787 Payment processing 19,926 18,945 Education technology and services 16,975 15,147 Other 277 145 Education technology, services, and payment processing revenue $ 60,221 56,024 Cost to provide education technology, services, and payment processing services is primarily associated with providing payment processing services. Interchange and payment network fees are charged by the card associations or payment networks. Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. Other costs included in cost to provide education technology, services, and payment processing services include salaries and benefits and outside professional services costs directly related to providing professional development and educational instruction services to teachers, school leaders, and students. Communications revenue - Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. 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. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. The Company records deferred revenue when revenue is recognized subsequent to invoicing. Earned but unbilled usage-based services are recorded in accounts receivable. The following table provides disaggregated revenue by service offering and customer type: Three months ended March 31, 2018 2017 Internet $ 4,696 2,202 Television 2,783 1,623 Telephone 1,689 1,262 Other 21 19 Communications revenue $ 9,189 5,106 Residential revenue $ 6,747 3,351 Business revenue 2,381 1,696 Other revenue 61 59 Communications revenue $ 9,189 5,106 Cost to provide communications 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 cost to provide communications services include connectivity, franchise, and other regulatory costs directly related to providing internet and voice services. Other income - The following table provides the components of "other income" on the consolidated statements of income: Three months ended March 31, 2018 2017 Realized and unrealized gains on investments, net $ 9,081 324 Borrower late fee income 2,983 3,319 Investment advisory fees 1,593 3,516 Management fee revenue 1,161 — Peterson's revenue — 2,836 Other 3,380 2,637 Other income $ 18,198 12,632 • Borrower late fee income - Late fee income is earned by the education lending subsidiaries. Revenue is allocated to the distinct service period, based on when each transaction is completed. • Investment advisory fees - Investment advisory services are provided by the Company through an SEC-registered investment advisor subsidiary under various arrangements. The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved. • Management fee revenue - Management fee revenue is earned for technology and certain administrative support services provided to Great Lakes' former parent company. Revenue is allocated to the distinct service period, based on when each transaction is completed. • Peterson's revenue - 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. The Company applied a practical expedient allowed for the retrospective comparative period which does not require the Company to restate revenue from contracts that began and were completed within the same annual reporting period. Contract Balances - The following table provides information about contract liabilities from contracts with customers: As of March 31, 2018 As of December 31, 2017 Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets $ 22,715 32,276 Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is recognized subsequent to invoicing. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. Activity in the deferred revenue balance is shown below: Three months ended March 31, 2018 2017 Balance, beginning of period $ 32,276 33,141 Deferral of revenue 17,050 15,918 Recognition of unearned revenue (26,802 ) (24,878 ) Other 191 87 Balance, end of period $ 22,715 24,268 Assets Recognized from the Costs to Obtain a Contract with a Customer - The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in “other assets” on the consolidated balance sheets. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses Loans receivable consisted of the following: As of As of March 31, 2018 December 31, 2017 Federally insured student loans: Stafford and other $ 4,363,159 4,418,881 Consolidation 17,098,389 17,302,725 Total 21,461,548 21,721,606 Private education loans 194,310 212,160 Consumer loans 77,855 62,111 21,733,713 21,995,877 Loan discount, net of unamortized loan premiums and deferred origination costs (103,542 ) (113,695 ) Non-accretable discount (12,847 ) (13,085 ) Allowance for loan losses: Federally insured loans (38,374 ) (38,706 ) Private education loans (12,255 ) (12,629 ) Consumer loans (4,665 ) (3,255 ) $ 21,562,030 21,814,507 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 loans. Activity in the allowance for loan losses is shown below. Three months ended March 31, 2018 Balance at beginning of period Provision for loan losses Charge-offs Recoveries Other Balance at end of period Federally insured loans $ 38,706 2,000 (3,332 ) — 1,000 38,374 Private education loans 12,629 — (539 ) 165 — 12,255 Consumer loans 3,255 2,000 (595 ) 5 — 4,665 $ 54,590 4,000 (4,466 ) 170 1,000 55,294 Three months ended March 31, 2017 Federally insured loans $ 37,268 2,000 (2,581 ) — — 36,687 Private education loans 14,574 (1,000 ) (82 ) 197 150 13,839 Consumer loans — — — — — — $ 51,842 1,000 (2,663 ) 197 150 50,526 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 March 31, 2018 As of December 31, 2017 As of March 31, 2017 Federally insured loans: Loans in-school/grace/deferment $ 1,312,319 $ 1,260,394 $ 1,604,494 Loans in forbearance 1,650,913 1,774,405 2,125,344 Loans in repayment status: Loans current 16,368,668 88.5 % 16,477,004 88.2 % 17,690,083 87.5 % Loans delinquent 31-60 days 669,490 3.6 682,586 3.7 732,433 3.6 Loans delinquent 61-90 days 426,696 2.3 374,534 2.0 493,876 2.4 Loans delinquent 91-120 days 252,659 1.4 287,922 1.5 275,711 1.4 Loans delinquent 121-270 days 570,538 3.1 629,480 3.4 763,030 3.8 Loans delinquent 271 days or greater 210,265 1.1 235,281 1.2 255,122 1.3 Total loans in repayment 18,498,316 100.0 % 18,686,807 100.0 % 20,210,255 100.0 % Total federally insured loans $ 21,461,548 $ 21,721,606 $ 23,940,093 Private education loans: Loans in-school/grace/deferment $ 5,532 $ 6,053 $ 34,138 Loans in forbearance 2,574 2,237 3,811 Loans in repayment status: Loans current 178,976 96.1 % 196,720 96.5 % 213,081 97.4 % Loans delinquent 31-60 days 1,630 0.9 1,867 0.9 1,355 0.6 Loans delinquent 61-90 days 1,110 0.6 1,052 0.5 1,402 0.6 Loans delinquent 91 days or greater 4,488 2.4 4,231 2.1 3,029 1.4 Total loans in repayment 186,204 100.0 % 203,870 100.0 % 218,867 100.0 % Total private education loans $ 194,310 $ 212,160 $ 256,816 |
Bonds and Notes Payable
Bonds and Notes Payable | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 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 $ 20,132,994 1.85% - 3.99% 4/25/24 - 5/25/66 Bonds and notes based on auction 766,948 2.20% - 2.88% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 20,899,942 FFELP warehouse facilities 339,063 1.94% / 2.00% 11/19/19 / 5/31/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 66,765 3.62% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 76,193 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 150,000 3.20% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.68% 9/15/61 Other borrowings 29,450 3.16% - 3.66% 3/31/23 - 12/15/45 21,581,794 Discount on bonds and notes payable and debt issuance costs (354,445 ) Total $ 21,227,349 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 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 March 31, 2018 , 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 49,623 289,440 339,063 Amount available $ 450,377 210,560 660,937 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 $ 2,402 25,269 27,671 Asset-Backed Securitizations The following table summarizes the asset-backed securitization transactions completed during the first three months of 2018 . NSLT 2018-1 Total Class A-1 Notes Class A-2 Notes Date securities issued 3/29/18 3/29/18 Total principal amount $ 98,000 375,750 473,750 Cost of funds 1-month LIBOR plus 0.32% 1-month LIBOR plus 0.76% Final maturity date 5/25/66 5/25/66 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 March 31, 2018 , $150.0 million was outstanding on the line of credit and $200.0 million was available for future use. Debt Repurchases During the three months ended March 31, 2018, the Company repurchased $12.9 million of its own FFELP asset backed securities. The Company paid $12.5 million to redeem these notes and recognized a gain of $0.4 million . The majority of the gain recognized by the Company from debt repurchases in the three months ended March 31, 2017 was from the Company's cash tender offer in which it repurchased $29.7 million in outstanding Hybrid Securities for $25.3 million in cash. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 6 of the notes to consolidated financial statements included in the 2017 Annual Report. A tabular presentation of such derivatives outstanding as of March 31, 2018 and December 31, 2017 is presented below. Basis Swaps The following table summarizes the Company’s outstanding basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps"). As of March 31, As of December 31, 2018 2017 Maturity Notional amount Notional amount 2018 $ 1,750,000 4,250,000 2019 3,500,000 3,500,000 2022 1,000,000 1,000,000 2023 750,000 — 2024 250,000 250,000 2026 1,150,000 1,150,000 2027 375,000 375,000 2028 325,000 325,000 2029 100,000 100,000 2031 300,000 300,000 $ 9,500,000 11,250,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of March 31, 2018 and December 31, 2017 was one-month LIBOR plus 10.6 basis points and 12.5 basis points, respectively. Interest Rate Swaps – Floor Income Hedges The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of March 31, 2018 As of December 31, 2017 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2018 $ 1,250,000 1.08 % $ 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 2.28 750,000 2.28 2024 300,000 2.28 300,000 2.28 2025 100,000 2.32 100,000 2.32 2027 50,000 2.32 50,000 2.32 2028 100,000 3.03 — — $ 7,300,000 1.24 % $ 7,300,000 1.21 % (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 on August 21, 2019 and mature on August 21, 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 March 31, 2018 and December 31, 2017 , the Company had $20.4 million of unsecured Hybrid Securities outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375% , payable quarterly. The Company had the following derivatives outstanding as of March 31, 2018 and December 31, 2017 that are used to effectively convert the variable interest rate on a designated notional amount with respect to the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. Consolidated Financial Statement Impact Related to Derivatives Balance Sheet The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 Interest rate swap option - floor income hedge $ 1,290 543 — — Interest rate caps 601 275 — — Interest rate swaps - hybrid debt hedges — — 5,601 7,063 Total $ 1,891 818 5,601 7,063 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 received Net asset Balance as of March 31, 2018 $ 1,891 — — 1,891 Balance as of December 31, 2017 818 — — 818 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 March 31, 2018 $ (5,601 ) — 7,520 1,919 Balance as of December 31, 2017 (7,063 ) — 8,520 1,457 Income Statement Impact The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income. Three months ended March 31, 2018 2017 Settlements: 1:3 basis swaps $ (1,664 ) 698 Interest rate swaps - floor income hedges 8,590 (120 ) Interest rate swaps - hybrid debt hedges (160 ) (205 ) Cross-currency interest rate swap — (1,751 ) Total settlements - income (expense) 6,766 (1,378 ) Change in fair value: 1:3 basis swaps 13,297 (2,574 ) Interest rate swaps - floor income hedges 44,201 4,324 Interest rate swap option - floor income hedge 747 (884 ) Interest rate caps 326 (522 ) Interest rate swaps - hybrid debt hedges 1,462 419 Cross-currency interest rate swap — 935 Other — (460 ) Total change in fair value - income (expense) 60,033 1,238 Re-measurement of Euro Notes (foreign currency transaction adjustment) — (4,690 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 66,799 (4,830 ) |
Investments and Notes Receivabl
Investments and Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments and Notes Receivable | Investments and Notes Receivable A summary of the Company's investments and notes receivable follows: As of March 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Investments (at fair value): Student loan asset-backed and other debt securities - available-for-sale (a) $ 78,203 4,558 (634 ) (b) 82,127 Equity securities 13,682 3,554 (151 ) 17,085 Total investments (at fair value) $ 91,885 8,112 (785 ) 99,212 Other Investments and Notes Receivable (not measured at fair value): Venture capital: Measurement alternative (c) 68,409 Equity method 16,175 Other 783 Total venture capital 85,367 Real estate: Equity method 18,850 Other 30,005 Total real estate 48,855 Notes receivable 16,373 Tax liens and affordable housing 8,619 Total investments and notes receivable (not measured at fair value) 159,214 Total investments and notes receivable $ 258,426 As of December 31, 2017 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 $ 71,943 5,056 (25 ) 76,974 Equity securities 1,630 2,298 — 3,928 Total available-for-sale investments $ 73,573 7,354 (25 ) 80,902 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds 84,752 Real estate 49,464 Notes receivable 16,393 Tax liens and affordable housing 9,027 Total investments and notes receivable $ 240,538 (a) As of March 31, 2018 , the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years. (b) As of March 31, 2018 , the aggregate fair value of available-for-sale investments with unrealized losses was $17.8 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 March 31, 2018 , 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. (c) The Company accounts for the majority of its equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (the measurement alternative method). For the three months ended March 31, 2018 , the Company recorded no impairments and upward adjustments of $6.9 million on these investments. The upward adjustments were made as a result of observable price changes. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Great Lakes Educational Loan Services, Inc. ("Great Lakes") On February 7, 2018, the Company acquired 100 percent of the outstanding stock of Great Lakes for total cash consideration of $150.0 million . Great Lakes provides servicing for federally-owned student loans for the U.S. Department of Education (the "Department"), FFELP loans, and private education and consumer loans. The acquisition of Great Lakes has expanded the Company's portfolio of loans it services. The operating results of Great Lakes are included in the Loan Servicing and Systems operating segment. As part of the acquisition, the Company acquired the remaining 50 percent ownership in GreatNet Solutions, LLC ("GreatNet"), a joint venture formed prior to the acquisition between Nelnet Servicing, LLC ("Nelnet Servicing"), a subsidiary of the Company, and Great Lakes. Prior to the acquisition of the remaining 50 percent of GreatNet, the Company consolidated the operating results of GreatNet as the Company was deemed to have control over the joint venture. The proportionate share of membership interest (equity) and net loss of GreatNet that was attributable to Great Lakes was reflected as noncontrolling interests in the Company's consolidated financial statements. The Company recognized a $19.1 million reduction to consolidated shareholders' equity as a result of acquiring Great Lakes' 50 percent ownership in GreatNet. This transaction resulted in a $5.7 million decrease in noncontrolling interest and $13.4 million decrease in retained earnings. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair value of the assets and liabilities related to Great Lakes are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition. The fair value assigned to the acquisition of the noncontrolling interest in GreatNet reduced the total consideration allocated to the assets acquired and liabilities assumed of Great Lakes from $150.0 million to $136.6 million . Cash and cash equivalents $ 27,399 Accounts receivable 23,708 Property and equipment 36,040 Other assets 14,015 Intangible assets 72,278 Excess cost over fair value of net assets acquired (goodwill) 19,697 Other liabilities (56,586 ) Net assets acquired $ 136,551 The $72.3 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 4 years. The intangible assets that made up this amount include customer relationships of $67.2 million ( 4 -year useful life) and a trade name of $5.1 million ( 7 -year useful life). The $19.7 million of goodwill was assigned to the Loan Servicing and Systems operating segment and is not expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributed to the deferred tax liability related to the difference between the carrying amount and tax bases of acquired identifiable intangible assets and the synergies and economies of scale expected from combining the operations of the Company and Great Lakes. The consolidated financial statements as of March 31, 2018, and for the three months then ended, include amounts acquired from, as well as the results of operations of Great Lakes from February 7, 2018 and forward. Results of operations for the three months ended March 31, 2018 include revenues of $43.5 million and net income of $11.9 million attributed to Great Lakes since its acquisition. The following unaudited pro forma information for the Company has been prepared as if the acquisition of Great Lakes had occurred on January 1, 2017. The information is based on the historical results of the separate companies and may not necessarily be indicative of the results that could have been achieved or of results that may occur in the future. The pro forma adjustments include the impact of depreciation and amortization of property and equipment and intangible assets acquired. Three months ended March 31, 2018 2017 Loan servicing and systems revenue $ 120,188 116,149 Net income attributable to Nelnet, Inc. $ 118,029 61,421 Net income per share - basic and diluted $ 2.88 1.45 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following: Weighted average remaining useful life as of March 31, 2018 (months) As of March 31, 2018 As of December 31, 2017 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $16,766 and $12,715, respectively) 77 $ 87,275 24,168 Trade names (net of accumulated amortization of $3,283 and $2,498, respectively) 86 13,409 9,074 Computer software (net of accumulated amortization of $11,381 and $10,013, respectively) 20 6,290 4,958 Covenants not to compete (net of accumulated amortization of $136 and $127, respectively) 74 218 227 Total - amortizable intangible assets, net 75 $ 107,192 38,427 The Company recorded amortization expense on its intangible assets of $6.2 million and $2.4 million during the three months ended March 31, 2018 and 2017 , respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of March 31, 2018 , the Company estimates it will record amortization expense as follows: 2018 (April 1 - December 31) $ 22,975 2019 27,373 2020 24,175 2021 14,278 2022 3,723 2023 and thereafter 14,668 $ 107,192 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The change in the carrying amount of goodwill by reportable operating segment was as follows: Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Activities Total Balance as of December 31, 2017 $ 8,596 67,168 21,112 41,883 — 138,759 Goodwill acquired during the period 19,697 — — — — 19,697 Balance as of March 31, 2018 $ 28,293 67,168 21,112 41,883 — 158,456 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of As of Useful life March 31, 2018 December 31, 2017 Non-communications: Computer equipment and software 1-5 years $ 128,304 124,708 Building and building improvements 5-39 years 46,576 24,003 Office furniture and equipment 3-7 years 21,474 15,210 Leasehold improvements 5-15 years 9,177 7,759 Transportation equipment 4-10 years 4,371 3,813 Land — 3,328 2,628 Construction in progress — 5,728 4,127 218,958 182,248 Accumulated depreciation - non-communications (103,104 ) (105,017 ) Non-communications, net property and equipment 115,854 77,231 Communications: Network plant and fiber 5-15 years 152,054 138,122 Customer located property 5-10 years 15,565 13,767 Central office 5-15 years 11,286 10,754 Transportation equipment 4-10 years 5,923 5,759 Computer equipment and software 1-5 years 4,598 3,790 Other 1-39 years 2,631 2,516 Land — 70 70 Construction in progress — 12,170 11,620 204,297 186,398 Accumulated depreciation - communications (20,314 ) (15,578 ) Communications, net property and equipment 183,983 170,820 Total property and equipment, net $ 299,837 248,051 The Company recorded depreciation expense on its property and equipment of $12.2 million and $6.2 million during the three months ended March 31, 2018 and 2017 , respectively. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Three months ended March 31, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 112,788 1,137 113,925 49,505 521 50,026 Denominator: Weighted-average common shares outstanding - basic and diluted 40,541,870 408,658 40,950,528 41,851,064 440,793 42,291,857 Earnings per share - basic and diluted $ 2.78 2.78 2.78 1.18 1.18 1.18 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting See note 15 of the notes to consolidated financial statements included in the 2017 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended March 31, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 257 665 1 200,334 4,751 (3,150 ) 202,857 Interest expense — — 2,509 134,233 1,958 (3,150 ) 135,550 Net interest income 257 665 (2,508 ) 66,101 2,793 — 67,307 Less provision for loan losses — — — 4,000 — — 4,000 Net interest income (loss) after provision for loan losses 257 665 (2,508 ) 62,101 2,793 — 63,307 Other income: Loan servicing and systems revenue 100,141 — — — — — 100,141 Intersegment servicing revenue 10,771 — — — — (10,771 ) — Education technology, services, and payment processing revenue — 60,221 — — — — 60,221 Communications revenue — — 9,189 — — — 9,189 Other income 1,292 — — 2,992 13,914 — 18,198 Gain from debt repurchases — — — 359 — — 359 Derivative settlements, net — — — 6,926 (160 ) — 6,766 Derivative market value and foreign currency transaction adjustments, net — — — 58,571 1,462 — 60,033 Total other income 112,204 60,221 9,189 68,848 15,216 (10,771 ) 254,907 Cost of services: Cost to provide education technology, services, and payment processing services — 13,683 — — — — 13,683 Cost to provide communications services — — 3,717 — — — 3,717 Total cost of services — 13,683 3,717 — — — 17,400 Operating expenses: Salaries and benefits 58,537 19,067 4,063 382 14,594 — 96,643 Depreciation and amortization 6,069 3,341 4,921 — 4,126 — 18,457 Loan servicing fees — — — 3,136 — — 3,136 Other expenses 14,463 4,624 2,638 848 10,845 — 33,417 Intersegment expenses, net 13,356 2,567 605 10,865 (16,622 ) (10,771 ) — Total operating expenses 92,425 29,599 12,227 15,231 12,943 (10,771 ) 151,653 Income (loss) before income taxes 20,036 17,604 (9,263 ) 115,718 5,066 — 149,161 Income tax (expense) benefit (a) (5,003 ) (4,225 ) 2,223 (27,773 ) (1,199 ) — (35,976 ) Net income (loss) 15,033 13,379 (7,040 ) 87,945 3,867 — 113,185 Net loss (income) attributable to noncontrolling interests 808 — — — (68 ) — 740 Net income (loss) attributable to Nelnet, Inc. $ 15,841 13,379 (7,040 ) 87,945 3,799 — 113,925 Total assets as of March 31, 2018 $ 281,208 193,283 228,750 22,804,734 718,251 (327,824 ) 23,898,402 (a) As a result of the Tax Cuts and Jobs Act, beginning January 1, 2018, income taxes are allocated based on 24% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of the taxes calculated for each operating segment, if any, is included in income taxes in Corporate and Other Activities. Three months ended March 31, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 94 2 1 182,326 2,761 (1,359 ) 183,824 Interest expense — — 712 106,751 795 (1,359 ) 106,899 Net interest income 94 2 (711 ) 75,575 1,966 — 76,925 Less provision for loan losses — — — 1,000 — — 1,000 Net interest income (loss) after provision for loan losses 94 2 (711 ) 74,575 1,966 — 75,925 Other income: Loan servicing and systems revenue 54,229 — — — — — 54,229 Intersegment servicing revenue 10,323 — — — — (10,323 ) — Education technology, services, and payment processing revenue — 56,024 — — — — 56,024 Communications revenue — — 5,106 — — — 5,106 Other income — — — 3,342 9,290 — 12,632 Gain from debt repurchases — — — 540 4,440 — 4,980 Derivative settlements, net — — — (1,173 ) (205 ) — (1,378 ) Derivative market value and foreign currency transaction adjustments, net — — — (3,410 ) (42 ) — (3,452 ) Total other income 64,552 56,024 5,106 (701 ) 13,483 (10,323 ) 128,141 Cost of services: Cost to provide education technology, services, and payment processing services — 12,790 — — — — 12,790 Cost to provide communications services — — 1,954 — — — 1,954 Total cost of services — 12,790 1,954 — — — 14,744 Operating expenses: . Salaries and benefits 37,992 16,652 2,979 400 13,839 — 71,863 Depreciation and amortization 549 2,391 2,135 — 3,523 — 8,598 Loan servicing fees — — — 6,025 — — 6,025 Other expenses 9,136 4,609 1,372 991 10,054 — 26,161 Intersegment expenses, net 7,398 2,075 506 10,412 (10,068 ) (10,323 ) — Total operating expenses 55,075 25,727 6,992 17,828 17,348 (10,323 ) 112,647 Income (loss) before income taxes 9,571 17,509 (4,551 ) 56,046 (1,899 ) — 76,675 Income tax (expense) benefit (4,555 ) (6,653 ) 1,730 (21,297 ) 2,021 — (28,755 ) Net income (loss) 5,016 10,856 (2,821 ) 34,749 122 — 47,920 Net loss (income) attributable to noncontrolling interests 2,415 — — — (309 ) — 2,106 Net income (loss) attributable to Nelnet, Inc. $ 7,431 10,856 (2,821 ) 34,749 (187 ) — 50,026 Total assets as of March 31, 2017 $ 87,115 194,809 118,842 25,325,220 682,639 (267,405 ) 26,141,220 |
Major Customer
Major Customer | 3 Months Ended |
Mar. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Major Customer | Major Customer Nelnet Servicing earns loan servicing revenue from a servicing contract with the Department that is currently set to expire on June 16, 2019. Revenue earned by Nelnet Servicing related to this contract was $39.3 million and $39.0 million for the three months ended March 31, 2018 and 2017 , respectively. In addition, Great Lakes, which was acquired by the Company on February 7, 2018, also earns loan servicing revenue from a similar servicing contract with the Department that is currently set to expire on June 16, 2019. Revenue earned by Great Lakes related to this contract was $30.8 million for the period from February 7, 2018 to March 31, 2018. On February 20, 2018, the Department's Office of Federal Student Aid released information regarding a new contract procurement process for the servicing of student loans owned by the Department. The contract solicitation process is divided into two phases. The contract solicitation requests responses from interested vendors for nine components. Vendors may provide a response for an individual, multiple, or all components. Nelnet Servicing and Great Lakes submitted a joint response to Phase One of the procurement on April 17, 2018. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 . As of March 31, 2018 Level 1 Level 2 Total Assets: Investments: Student loan and other asset-backed securities - available-for-sale $ — 82,020 82,020 Equity securities 4,719 — 4,719 Equity securities measured at net asset value (a) — — 12,366 Debt securities 107 — 107 Total investments 4,826 82,020 99,212 Derivative instruments — 1,891 1,891 Total assets $ 4,826 83,911 101,103 Liabilities: Derivative instruments $ — 5,601 5,601 Total liabilities $ — 5,601 5,601 As of December 31, 2017 Level 1 Level 2 Total Assets: Investments (available-for-sale): Student loan and other asset-backed securities $ — 76,866 76,866 Equity securities 3,928 — 3,928 Debt securities 108 — 108 Total investments (available-for-sale) 4,036 76,866 80,902 Derivative instruments — 818 818 Total assets $ 4,036 77,684 81,720 Liabilities: Derivative instruments $ — 7,063 7,063 Total liabilities $ — 7,063 7,063 (a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of March 31, 2018 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 22,884,620 21,562,030 — — 22,884,620 Cash and cash equivalents 69,286 69,286 69,286 — — Investments (at fair value) 99,212 99,212 4,826 82,020 — Notes receivable 16,373 16,373 — 16,373 — Restricted cash 727,471 727,471 727,471 — — Restricted cash – due to customers 128,515 128,515 128,515 — — Accrued interest receivable 489,395 489,395 — 489,395 — Derivative instruments 1,891 1,891 — 1,891 — Financial liabilities: Bonds and notes payable 21,475,380 21,227,349 — 21,475,380 — Accrued interest payable 54,252 54,252 — 54,252 — Due to customers 128,515 128,515 128,515 — — Derivative instruments 5,601 5,601 — 5,601 — 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 — The methodologies for estimating the fair value of financial assets and liabilities are described in note 21 of the notes to consolidated financial statements included in the 2017 Annual Report. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events On April 25, 2018, the Company acquired $1.5 billion of unsecuritized federally insured student loans from a third-party. The Company will earn interest income on these loans from the effective date of the transaction, April 1, 2018. In addition, from April 1, 2018 through May 8, 2018 (the filing date of this report), the Company acquired $351.3 million of additional unsecuritized federally insured student loans from third-parties. These loan acquisitions were funded with existing FFELP warehouse facilities, operating cash, and the Company’s unsecured line of credit. Subsequent to March 31, 2018, in anticipation of these loan acquisitions, the Company increased the capacity on both of its FFELP warehouse facilities to a total of $2.3 billion . |
Basis of Financial Reporting -
Basis of Financial Reporting - Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Reporting | Basis of Financial Reporting The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2017 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 . The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the " 2017 Annual Report"). |
Accounting Standards Adopted in 2018 | Accounting Standards Adopted in 2018 In the first quarter of 2018, the Company adopted the following new accounting guidance: Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard effective January 1, 2018, using the full retrospective method, which required it to restate each prior reporting period presented. As a result, the Company has changed its accounting policy for revenue recognition as detailed in note 2, “Summary of Significant Accounting Policies and Practices.” The most significant impact of the standard relates to identifying the Company's Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company will present the payment services revenue gross with the direct costs to provide these services presented separately. The majority of the Company's revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new guidance. Other than the payment services transactions discussed above, the Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns. Equity Investments In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The guidance requires equity investments with readily determinable fair values to be measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity may choose to measure equity investments without readily determinable fair values at fair value or use the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, the impairment assessment is simplified by requiring a qualitative assessment to identify impairment. The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities with readily determinable fair values previously recognized in accumulated other comprehensive income; and along with a related clarifying update, was adopted by the Company as of January 1, 2018. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to retained earnings, accumulated other comprehensive earnings, and investments and notes receivable. Subsequent to the adoption, the Company is accounting for the majority of its equity investments without readily determinable fair values using the measurement alternative. Other Comprehensive Income In February 2018, the FASB issued guidance which allows a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which became effective on January 1, 2018. This guidance is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted in periods for which financial statements have not yet been issued. The Company elected to early adopt this guidance as of January 1, 2018. Upon adoption, the Company recorded an immaterial reclassification between accumulated other comprehensive earnings and retained earnings. Restricted Cash In November 2016, the FASB issued accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of such total to amounts on the balance sheet. The Company adopted the standard effective January 1, 2018 using the retrospective transition method. |
Revenue Recognition | Communications revenue - Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. 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. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. The Company records deferred revenue when revenue is recognized subsequent to invoicing. Earned but unbilled usage-based services are recorded in accounts receivable. Education technology, services, and payment processing revenue - Education technology, services, and payment processing revenue consists of the following items: • Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously consume and receive benefits. • Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is determined based on the services selected by the customer. Services in K-12 private and faith based schools include (i) assistance with financial needs assessment, (ii) automating administrative processes such as admissions, online applications and enrollment services, scheduling, student billing, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. Services also include innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits. • Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits. Revenue Recognition The Company applies the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Additional information related to the Company's revenue recognition of specific items is further provided below. The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Loan servicing and systems revenue - Loan servicing and systems revenue consists of the following items: • Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the promise is substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits. • Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue from remote hosted licenses is allocated to and recognized in the distinct service period, typically a month, and recognized as control transfers, and non-refundable up-front revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Loan conversion activities in certain customer contracts are capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to loan conversion activities is recognized at the point in time when the conversion is complete. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided. • Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits. |
Basis of Financial Reporting 26
Basis of Financial Reporting - Basis of Financial Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Impact on Previous Reporting | Adoption of the revenue recognition standard impacted the Company’s previously reported results on the consolidated statements of income as follows: Three months ended March 31, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 43,620 12,404 56,024 Cost to provide education technology, services, and payment processing services — 12,404 12,404 (a) (a) In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassed other direct costs to provide education technology, services, and payment processing revenue which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services." The Company adopted the standard effective January 1, 2018 using the retrospective transition method. Adoption of this standard impacted the Company's previously reported results on the consolidated statements of cash flows as follows: Three months ended March 31, 2017 As previously reported Impact of adoption As restated Decrease in due to customers $ — (26,003 ) (26,003 ) Net cash provided by operating activities 73,833 (26,003 ) 47,830 Decrease in restricted cash 193,326 (193,326 ) — Net cash provided by investing activities 1,051,415 (193,326 ) 858,089 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies and Practices (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue by service offering and customer type: Three months ended March 31, 2018 2017 Internet $ 4,696 2,202 Television 2,783 1,623 Telephone 1,689 1,262 Other 21 19 Communications revenue $ 9,189 5,106 Residential revenue $ 6,747 3,351 Business revenue 2,381 1,696 Other revenue 61 59 Communications revenue $ 9,189 5,106 The following table provides disaggregated revenue by service offering: Three months ended March 31, 2018 2017 Tuition payment plan services $ 23,043 21,787 Payment processing 19,926 18,945 Education technology and services 16,975 15,147 Other 277 145 Education technology, services, and payment processing revenue $ 60,221 56,024 The following table provides disaggregated revenue by service offering: Three months ended March 31, 2018 2017 Government servicing - Nelnet $ 39,327 39,007 Government servicing - Great Lakes (a) 30,754 — Private education and consumer loan servicing 13,101 5,817 FFELP servicing 7,691 4,077 Software services 7,589 4,337 Outsourced services revenue and other 1,679 991 Loan servicing and systems revenue $ 100,141 54,229 (a) Great Lakes Educational Loan Services, Inc. ("Great Lakes") was acquired by the Company on February 7, 2018. For additional information about the acquisition, see note 7. |
Schedule Of Other Income, By Component | The following table provides the components of "other income" on the consolidated statements of income: Three months ended March 31, 2018 2017 Realized and unrealized gains on investments, net $ 9,081 324 Borrower late fee income 2,983 3,319 Investment advisory fees 1,593 3,516 Management fee revenue 1,161 — Peterson's revenue — 2,836 Other 3,380 2,637 Other income $ 18,198 12,632 |
Schedule of Liabilities from Contracts with Customers | The following table provides information about contract liabilities from contracts with customers: As of March 31, 2018 As of December 31, 2017 Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets $ 22,715 32,276 Activity in the deferred revenue balance is shown below: Three months ended March 31, 2018 2017 Balance, beginning of period $ 32,276 33,141 Deferral of revenue 17,050 15,918 Recognition of unearned revenue (26,802 ) (24,878 ) Other 191 87 Balance, end of period $ 22,715 24,268 |
Loans Receivable and Allowanc28
Loans Receivable and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable consisted of the following: As of As of March 31, 2018 December 31, 2017 Federally insured student loans: Stafford and other $ 4,363,159 4,418,881 Consolidation 17,098,389 17,302,725 Total 21,461,548 21,721,606 Private education loans 194,310 212,160 Consumer loans 77,855 62,111 21,733,713 21,995,877 Loan discount, net of unamortized loan premiums and deferred origination costs (103,542 ) (113,695 ) Non-accretable discount (12,847 ) (13,085 ) Allowance for loan losses: Federally insured loans (38,374 ) (38,706 ) Private education loans (12,255 ) (12,629 ) Consumer loans (4,665 ) (3,255 ) $ 21,562,030 21,814,507 |
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 loans. Activity in the allowance for loan losses is shown below. Three months ended March 31, 2018 Balance at beginning of period Provision for loan losses Charge-offs Recoveries Other Balance at end of period Federally insured loans $ 38,706 2,000 (3,332 ) — 1,000 38,374 Private education loans 12,629 — (539 ) 165 — 12,255 Consumer loans 3,255 2,000 (595 ) 5 — 4,665 $ 54,590 4,000 (4,466 ) 170 1,000 55,294 Three months ended March 31, 2017 Federally insured loans $ 37,268 2,000 (2,581 ) — — 36,687 Private education loans 14,574 (1,000 ) (82 ) 197 150 13,839 Consumer loans — — — — — — $ 51,842 1,000 (2,663 ) 197 150 50,526 |
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 March 31, 2018 As of December 31, 2017 As of March 31, 2017 Federally insured loans: Loans in-school/grace/deferment $ 1,312,319 $ 1,260,394 $ 1,604,494 Loans in forbearance 1,650,913 1,774,405 2,125,344 Loans in repayment status: Loans current 16,368,668 88.5 % 16,477,004 88.2 % 17,690,083 87.5 % Loans delinquent 31-60 days 669,490 3.6 682,586 3.7 732,433 3.6 Loans delinquent 61-90 days 426,696 2.3 374,534 2.0 493,876 2.4 Loans delinquent 91-120 days 252,659 1.4 287,922 1.5 275,711 1.4 Loans delinquent 121-270 days 570,538 3.1 629,480 3.4 763,030 3.8 Loans delinquent 271 days or greater 210,265 1.1 235,281 1.2 255,122 1.3 Total loans in repayment 18,498,316 100.0 % 18,686,807 100.0 % 20,210,255 100.0 % Total federally insured loans $ 21,461,548 $ 21,721,606 $ 23,940,093 Private education loans: Loans in-school/grace/deferment $ 5,532 $ 6,053 $ 34,138 Loans in forbearance 2,574 2,237 3,811 Loans in repayment status: Loans current 178,976 96.1 % 196,720 96.5 % 213,081 97.4 % Loans delinquent 31-60 days 1,630 0.9 1,867 0.9 1,355 0.6 Loans delinquent 61-90 days 1,110 0.6 1,052 0.5 1,402 0.6 Loans delinquent 91 days or greater 4,488 2.4 4,231 2.1 3,029 1.4 Total loans in repayment 186,204 100.0 % 203,870 100.0 % 218,867 100.0 % Total private education loans $ 194,310 $ 212,160 $ 256,816 |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of March 31, 2018 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 $ 20,132,994 1.85% - 3.99% 4/25/24 - 5/25/66 Bonds and notes based on auction 766,948 2.20% - 2.88% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 20,899,942 FFELP warehouse facilities 339,063 1.94% / 2.00% 11/19/19 / 5/31/20 Variable-rate bonds and notes issued in private education loan asset-backed securitization 66,765 3.62% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 76,193 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 150,000 3.20% 12/12/21 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.68% 9/15/61 Other borrowings 29,450 3.16% - 3.66% 3/31/23 - 12/15/45 21,581,794 Discount on bonds and notes payable and debt issuance costs (354,445 ) Total $ 21,227,349 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 |
Schedule of Line of Credit Facilities | As of March 31, 2018 , 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 49,623 289,440 339,063 Amount available $ 450,377 210,560 660,937 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 $ 2,402 25,269 27,671 |
Schedule of Asset-Backed Securitization | Asset-Backed Securitizations The following table summarizes the asset-backed securitization transactions completed during the first three months of 2018 . NSLT 2018-1 Total Class A-1 Notes Class A-2 Notes Date securities issued 3/29/18 3/29/18 Total principal amount $ 98,000 375,750 473,750 Cost of funds 1-month LIBOR plus 0.32% 1-month LIBOR plus 0.76% Final maturity date 5/25/66 5/25/66 |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Basis Swap | The following table summarizes the Company’s outstanding basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps"). As of March 31, As of December 31, 2018 2017 Maturity Notional amount Notional amount 2018 $ 1,750,000 4,250,000 2019 3,500,000 3,500,000 2022 1,000,000 1,000,000 2023 750,000 — 2024 250,000 250,000 2026 1,150,000 1,150,000 2027 375,000 375,000 2028 325,000 325,000 2029 100,000 100,000 2031 300,000 300,000 $ 9,500,000 11,250,000 |
Schedule of Interest Rate Swaps, Floor Income Hedge | The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of March 31, 2018 As of December 31, 2017 Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a) 2018 $ 1,250,000 1.08 % $ 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 2.28 750,000 2.28 2024 300,000 2.28 300,000 2.28 2025 100,000 2.32 100,000 2.32 2027 50,000 2.32 50,000 2.32 2028 100,000 3.03 — — $ 7,300,000 1.24 % $ 7,300,000 1.21 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Schedule of Interest Rate Swaps, Unsecured Debt Hedges | The Company had the following derivatives outstanding as of March 31, 2018 and December 31, 2017 that are used to effectively convert the variable interest rate on a designated notional amount with respect to the Hybrid Securities to a fixed rate of 7.66% . Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2036 $ 25,000 4.28 % (a) For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Schedule of Derivatives as Reflected on Balance Sheet | The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets: Fair value of asset derivatives Fair value of liability derivatives As of March 31, 2018 As of December 31, 2017 As of March 31, 2018 As of December 31, 2017 Interest rate swap option - floor income hedge $ 1,290 543 — — Interest rate caps 601 275 — — Interest rate swaps - hybrid debt hedges — — 5,601 7,063 Total $ 1,891 818 5,601 7,063 |
Schedule of 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 received Net asset Balance as of March 31, 2018 $ 1,891 — — 1,891 Balance as of December 31, 2017 818 — — 818 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 March 31, 2018 $ (5,601 ) — 7,520 1,919 Balance as of December 31, 2017 (7,063 ) — 8,520 1,457 |
Schedule of Income Statement Impact | The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income. Three months ended March 31, 2018 2017 Settlements: 1:3 basis swaps $ (1,664 ) 698 Interest rate swaps - floor income hedges 8,590 (120 ) Interest rate swaps - hybrid debt hedges (160 ) (205 ) Cross-currency interest rate swap — (1,751 ) Total settlements - income (expense) 6,766 (1,378 ) Change in fair value: 1:3 basis swaps 13,297 (2,574 ) Interest rate swaps - floor income hedges 44,201 4,324 Interest rate swap option - floor income hedge 747 (884 ) Interest rate caps 326 (522 ) Interest rate swaps - hybrid debt hedges 1,462 419 Cross-currency interest rate swap — 935 Other — (460 ) Total change in fair value - income (expense) 60,033 1,238 Re-measurement of Euro Notes (foreign currency transaction adjustment) — (4,690 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 66,799 (4,830 ) |
Investments and Notes Receiva31
Investments and Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Summary Investment Holdings | A summary of the Company's investments and notes receivable follows: As of March 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Investments (at fair value): Student loan asset-backed and other debt securities - available-for-sale (a) $ 78,203 4,558 (634 ) (b) 82,127 Equity securities 13,682 3,554 (151 ) 17,085 Total investments (at fair value) $ 91,885 8,112 (785 ) 99,212 Other Investments and Notes Receivable (not measured at fair value): Venture capital: Measurement alternative (c) 68,409 Equity method 16,175 Other 783 Total venture capital 85,367 Real estate: Equity method 18,850 Other 30,005 Total real estate 48,855 Notes receivable 16,373 Tax liens and affordable housing 8,619 Total investments and notes receivable (not measured at fair value) 159,214 Total investments and notes receivable $ 258,426 As of December 31, 2017 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 $ 71,943 5,056 (25 ) 76,974 Equity securities 1,630 2,298 — 3,928 Total available-for-sale investments $ 73,573 7,354 (25 ) 80,902 Other Investments and Notes Receivable (not measured at fair value): Venture capital and funds 84,752 Real estate 49,464 Notes receivable 16,393 Tax liens and affordable housing 9,027 Total investments and notes receivable $ 240,538 (a) As of March 31, 2018 , the stated maturities of substantially all of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years. (b) As of March 31, 2018 , the aggregate fair value of available-for-sale investments with unrealized losses was $17.8 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 March 31, 2018 , 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. (c) The Company accounts for the majority of its equity securities without readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer (the measurement alternative method). For the three months ended March 31, 2018 , the Company recorded no impairments and upward adjustments of $6.9 million on these investments. The upward adjustments were made as a result of observable price changes. |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | Cash and cash equivalents $ 27,399 Accounts receivable 23,708 Property and equipment 36,040 Other assets 14,015 Intangible assets 72,278 Excess cost over fair value of net assets acquired (goodwill) 19,697 Other liabilities (56,586 ) Net assets acquired $ 136,551 |
Schedule of Pro Forma Information | The following unaudited pro forma information for the Company has been prepared as if the acquisition of Great Lakes had occurred on January 1, 2017. The information is based on the historical results of the separate companies and may not necessarily be indicative of the results that could have been achieved or of results that may occur in the future. The pro forma adjustments include the impact of depreciation and amortization of property and equipment and intangible assets acquired. Three months ended March 31, 2018 2017 Loan servicing and systems revenue $ 120,188 116,149 Net income attributable to Nelnet, Inc. $ 118,029 61,421 Net income per share - basic and diluted $ 2.88 1.45 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: Weighted average remaining useful life as of March 31, 2018 (months) As of March 31, 2018 As of December 31, 2017 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $16,766 and $12,715, respectively) 77 $ 87,275 24,168 Trade names (net of accumulated amortization of $3,283 and $2,498, respectively) 86 13,409 9,074 Computer software (net of accumulated amortization of $11,381 and $10,013, respectively) 20 6,290 4,958 Covenants not to compete (net of accumulated amortization of $136 and $127, respectively) 74 218 227 Total - amortizable intangible assets, net 75 $ 107,192 38,427 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2018 , the Company estimates it will record amortization expense as follows: 2018 (April 1 - December 31) $ 22,975 2019 27,373 2020 24,175 2021 14,278 2022 3,723 2023 and thereafter 14,668 $ 107,192 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by reportable operating segment was as follows: Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Activities Total Balance as of December 31, 2017 $ 8,596 67,168 21,112 41,883 — 138,759 Goodwill acquired during the period 19,697 — — — — 19,697 Balance as of March 31, 2018 $ 28,293 67,168 21,112 41,883 — 158,456 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of As of Useful life March 31, 2018 December 31, 2017 Non-communications: Computer equipment and software 1-5 years $ 128,304 124,708 Building and building improvements 5-39 years 46,576 24,003 Office furniture and equipment 3-7 years 21,474 15,210 Leasehold improvements 5-15 years 9,177 7,759 Transportation equipment 4-10 years 4,371 3,813 Land — 3,328 2,628 Construction in progress — 5,728 4,127 218,958 182,248 Accumulated depreciation - non-communications (103,104 ) (105,017 ) Non-communications, net property and equipment 115,854 77,231 Communications: Network plant and fiber 5-15 years 152,054 138,122 Customer located property 5-10 years 15,565 13,767 Central office 5-15 years 11,286 10,754 Transportation equipment 4-10 years 5,923 5,759 Computer equipment and software 1-5 years 4,598 3,790 Other 1-39 years 2,631 2,516 Land — 70 70 Construction in progress — 12,170 11,620 204,297 186,398 Accumulated depreciation - communications (20,314 ) (15,578 ) Communications, net property and equipment 183,983 170,820 Total property and equipment, net $ 299,837 248,051 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Three months ended March 31, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 112,788 1,137 113,925 49,505 521 50,026 Denominator: Weighted-average common shares outstanding - basic and diluted 40,541,870 408,658 40,950,528 41,851,064 440,793 42,291,857 Earnings per share - basic and diluted $ 2.78 2.78 2.78 1.18 1.18 1.18 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | See note 15 of the notes to consolidated financial statements included in the 2017 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended March 31, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 257 665 1 200,334 4,751 (3,150 ) 202,857 Interest expense — — 2,509 134,233 1,958 (3,150 ) 135,550 Net interest income 257 665 (2,508 ) 66,101 2,793 — 67,307 Less provision for loan losses — — — 4,000 — — 4,000 Net interest income (loss) after provision for loan losses 257 665 (2,508 ) 62,101 2,793 — 63,307 Other income: Loan servicing and systems revenue 100,141 — — — — — 100,141 Intersegment servicing revenue 10,771 — — — — (10,771 ) — Education technology, services, and payment processing revenue — 60,221 — — — — 60,221 Communications revenue — — 9,189 — — — 9,189 Other income 1,292 — — 2,992 13,914 — 18,198 Gain from debt repurchases — — — 359 — — 359 Derivative settlements, net — — — 6,926 (160 ) — 6,766 Derivative market value and foreign currency transaction adjustments, net — — — 58,571 1,462 — 60,033 Total other income 112,204 60,221 9,189 68,848 15,216 (10,771 ) 254,907 Cost of services: Cost to provide education technology, services, and payment processing services — 13,683 — — — — 13,683 Cost to provide communications services — — 3,717 — — — 3,717 Total cost of services — 13,683 3,717 — — — 17,400 Operating expenses: Salaries and benefits 58,537 19,067 4,063 382 14,594 — 96,643 Depreciation and amortization 6,069 3,341 4,921 — 4,126 — 18,457 Loan servicing fees — — — 3,136 — — 3,136 Other expenses 14,463 4,624 2,638 848 10,845 — 33,417 Intersegment expenses, net 13,356 2,567 605 10,865 (16,622 ) (10,771 ) — Total operating expenses 92,425 29,599 12,227 15,231 12,943 (10,771 ) 151,653 Income (loss) before income taxes 20,036 17,604 (9,263 ) 115,718 5,066 — 149,161 Income tax (expense) benefit (a) (5,003 ) (4,225 ) 2,223 (27,773 ) (1,199 ) — (35,976 ) Net income (loss) 15,033 13,379 (7,040 ) 87,945 3,867 — 113,185 Net loss (income) attributable to noncontrolling interests 808 — — — (68 ) — 740 Net income (loss) attributable to Nelnet, Inc. $ 15,841 13,379 (7,040 ) 87,945 3,799 — 113,925 Total assets as of March 31, 2018 $ 281,208 193,283 228,750 22,804,734 718,251 (327,824 ) 23,898,402 (a) As a result of the Tax Cuts and Jobs Act, beginning January 1, 2018, income taxes are allocated based on 24% of income before taxes for each individual operating segment. The difference between the consolidated income tax expense and the sum of the taxes calculated for each operating segment, if any, is included in income taxes in Corporate and Other Activities. Three months ended March 31, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 94 2 1 182,326 2,761 (1,359 ) 183,824 Interest expense — — 712 106,751 795 (1,359 ) 106,899 Net interest income 94 2 (711 ) 75,575 1,966 — 76,925 Less provision for loan losses — — — 1,000 — — 1,000 Net interest income (loss) after provision for loan losses 94 2 (711 ) 74,575 1,966 — 75,925 Other income: Loan servicing and systems revenue 54,229 — — — — — 54,229 Intersegment servicing revenue 10,323 — — — — (10,323 ) — Education technology, services, and payment processing revenue — 56,024 — — — — 56,024 Communications revenue — — 5,106 — — — 5,106 Other income — — — 3,342 9,290 — 12,632 Gain from debt repurchases — — — 540 4,440 — 4,980 Derivative settlements, net — — — (1,173 ) (205 ) — (1,378 ) Derivative market value and foreign currency transaction adjustments, net — — — (3,410 ) (42 ) — (3,452 ) Total other income 64,552 56,024 5,106 (701 ) 13,483 (10,323 ) 128,141 Cost of services: Cost to provide education technology, services, and payment processing services — 12,790 — — — — 12,790 Cost to provide communications services — — 1,954 — — — 1,954 Total cost of services — 12,790 1,954 — — — 14,744 Operating expenses: . Salaries and benefits 37,992 16,652 2,979 400 13,839 — 71,863 Depreciation and amortization 549 2,391 2,135 — 3,523 — 8,598 Loan servicing fees — — — 6,025 — — 6,025 Other expenses 9,136 4,609 1,372 991 10,054 — 26,161 Intersegment expenses, net 7,398 2,075 506 10,412 (10,068 ) (10,323 ) — Total operating expenses 55,075 25,727 6,992 17,828 17,348 (10,323 ) 112,647 Income (loss) before income taxes 9,571 17,509 (4,551 ) 56,046 (1,899 ) — 76,675 Income tax (expense) benefit (4,555 ) (6,653 ) 1,730 (21,297 ) 2,021 — (28,755 ) Net income (loss) 5,016 10,856 (2,821 ) 34,749 122 — 47,920 Net loss (income) attributable to noncontrolling interests 2,415 — — — (309 ) — 2,106 Net income (loss) attributable to Nelnet, Inc. $ 7,431 10,856 (2,821 ) 34,749 (187 ) — 50,026 Total assets as of March 31, 2017 $ 87,115 194,809 118,842 25,325,220 682,639 (267,405 ) 26,141,220 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 . As of March 31, 2018 Level 1 Level 2 Total Assets: Investments: Student loan and other asset-backed securities - available-for-sale $ — 82,020 82,020 Equity securities 4,719 — 4,719 Equity securities measured at net asset value (a) — — 12,366 Debt securities 107 — 107 Total investments 4,826 82,020 99,212 Derivative instruments — 1,891 1,891 Total assets $ 4,826 83,911 101,103 Liabilities: Derivative instruments $ — 5,601 5,601 Total liabilities $ — 5,601 5,601 As of December 31, 2017 Level 1 Level 2 Total Assets: Investments (available-for-sale): Student loan and other asset-backed securities $ — 76,866 76,866 Equity securities 3,928 — 3,928 Debt securities 108 — 108 Total investments (available-for-sale) 4,036 76,866 80,902 Derivative instruments — 818 818 Total assets $ 4,036 77,684 81,720 Liabilities: Derivative instruments $ — 7,063 7,063 Total liabilities $ — 7,063 7,063 (a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Fair Value, by Balance Sheet Grouping | The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of March 31, 2018 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 22,884,620 21,562,030 — — 22,884,620 Cash and cash equivalents 69,286 69,286 69,286 — — Investments (at fair value) 99,212 99,212 4,826 82,020 — Notes receivable 16,373 16,373 — 16,373 — Restricted cash 727,471 727,471 727,471 — — Restricted cash – due to customers 128,515 128,515 128,515 — — Accrued interest receivable 489,395 489,395 — 489,395 — Derivative instruments 1,891 1,891 — 1,891 — Financial liabilities: Bonds and notes payable 21,475,380 21,227,349 — 21,475,380 — Accrued interest payable 54,252 54,252 — 54,252 — Due to customers 128,515 128,515 128,515 — — Derivative instruments 5,601 5,601 — 5,601 — 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 — |
Basis of Financial Reporting 39
Basis of Financial Reporting - Schedule of Impact on Previous Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Education technology, services, and payment processing revenue | $ 60,221 | $ 56,024 |
Cost to provide education technology, services, and payment processing services | 12,404 | |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Education technology, services, and payment processing revenue | 43,620 | |
Cost to provide education technology, services, and payment processing services | 0 | |
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Education technology, services, and payment processing revenue | 12,404 | |
Cost to provide education technology, services, and payment processing services | $ 12,404 |
Basis of Financial Reporting 40
Basis of Financial Reporting - Schedule of Restricted Cash Previous Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in due to customers | $ (58,606) | $ (26,003) |
Net cash provided by operating activities | 57,952 | 47,830 |
Decrease in restricted cash | 0 | |
Net cash provided by investing activities | $ 102,330 | 858,089 |
Scenario, Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in due to customers | 0 | |
Net cash provided by operating activities | 73,833 | |
Decrease in restricted cash | 193,326 | |
Net cash provided by investing activities | 1,051,415 | |
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in due to customers | (26,003) | |
Net cash provided by operating activities | (26,003) | |
Decrease in restricted cash | (193,326) | |
Net cash provided by investing activities | $ (193,326) |
Summary of Significant Accoun41
Summary of Significant Accounting Policies and Practices - Schedule of Disaggregation of Revenue By Service Offerings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Loan Servicing And Systems Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | $ 100,141 | $ 54,229 |
Government Servicing - Nelnet [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 39,327 | 39,007 |
Government Servicing - Great Lakes [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 30,754 | 0 |
Private Education And Consumer Loan Servicing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 13,101 | 5,817 |
FFELP Servicing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 7,691 | 4,077 |
Software Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 7,589 | 4,337 |
Outsourced Services Revenue And Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 1,679 | 991 |
Education Technology Services And Payment Processing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 60,221 | 56,024 |
Tuition Payment Plan Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 23,043 | 21,787 |
Payment Processing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 19,926 | 18,945 |
Education Technology And Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 16,975 | 15,147 |
Other Service Offering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 277 | 145 |
Communication Revenue, Service Offering [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 9,189 | 5,106 |
Internet [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 4,696 | 2,202 |
Television [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 2,783 | 1,623 |
Telephone [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 1,689 | 1,262 |
Other Communication Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 21 | 19 |
Communications Revenue, Customer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 9,189 | 5,106 |
Residential Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 6,747 | 3,351 |
Business Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | 2,381 | 1,696 |
Other Customer Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from service offerings | $ 61 | $ 59 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies and Practices - Schedule of Other Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Realized and unrealized gains on investments, net | $ 9,081 | $ 324 |
Borrower late fee income | 2,983 | 3,319 |
Investment advisory fees | 1,593 | 3,516 |
Management fee revenue | 1,161 | 0 |
Peterson's revenue | 0 | 2,836 |
Other | 3,380 | 2,637 |
Other income | $ 18,198 | $ 12,632 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies and Practices - Schedule of Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Deferred revenue, which is included in other liabilities on the consolidated balance sheets | $ 22,715 | $ 32,276 | $ 24,268 | $ 33,141 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies and Practices - Schedule of Changes in Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Contract With Customer Liability [Roll Forward] | ||
Balance, beginning of period | $ 32,276 | $ 33,141 |
Deferral of revenue | 17,050 | 15,918 |
Recognition of unearned revenue | (26,802) | (24,878) |
Other | 191 | 87 |
Balance, end of period | $ 22,715 | $ 24,268 |
Loans Receivable and Allowanc45
Loans Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | $ 21,733,713 | $ 21,995,877 | ||
Loan discount, net of unamortized loan premiums and deferred origination costs | (103,542) | (113,695) | ||
Allowance for loan losses | (55,294) | (54,590) | $ (50,526) | $ (51,842) |
Student loans receivable | 21,562,030 | 21,814,507 | ||
Non-accretable discount [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (12,847) | (13,085) | ||
Consumer Portfolio Segment, Federally Insured [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | 21,461,548 | 21,721,606 | ||
Allowance for loan losses | (38,374) | (38,706) | (36,687) | (37,268) |
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Stafford And Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | 4,363,159 | 4,418,881 | ||
Consumer Portfolio Segment, Federally Insured [Member] | Student Loan, Consolidation Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | 17,098,389 | 17,302,725 | ||
Consumer Portfolio Segment, Private Education Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | 194,310 | 212,160 | ||
Allowance for loan losses | (12,255) | (12,629) | (13,839) | (14,574) |
Consumer Portfolio Segment, Consumer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Student loans receivable, gross | 77,855 | 62,111 | ||
Allowance for loan losses | $ (4,665) | $ (3,255) | $ 0 | $ 0 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | $ 54,590 | $ 51,842 |
Less provision for loan losses | 4,000 | 1,000 |
Charge-offs | (4,466) | (2,663) |
Recoveries | 170 | 197 |
Other | 1,000 | 150 |
Balance at end of period | 55,294 | 50,526 |
Consumer Portfolio Segment, Federally Insured [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | 38,706 | 37,268 |
Less provision for loan losses | 2,000 | 2,000 |
Charge-offs | (3,332) | (2,581) |
Recoveries | 0 | 0 |
Other | 1,000 | 0 |
Balance at end of period | 38,374 | 36,687 |
Consumer Portfolio Segment, Private Education Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | 12,629 | 14,574 |
Less provision for loan losses | 0 | (1,000) |
Charge-offs | (539) | (82) |
Recoveries | 165 | 197 |
Other | 0 | 150 |
Balance at end of period | 12,255 | 13,839 |
Consumer Portfolio Segment, Consumer Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | 3,255 | 0 |
Less provision for loan losses | 2,000 | 0 |
Charge-offs | (595) | 0 |
Recoveries | 5 | 0 |
Other | 0 | 0 |
Balance at end of period | $ 4,665 | $ 0 |
Loans Receivable and Allowanc47
Loans Receivable and Allowance for Loan Losses - Loan Status and Delinquency (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 21,733,713 | $ 21,995,877 | |
Consumer Portfolio Segment, Federally Insured [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 21,461,548 | 21,721,606 | |
Consumer Portfolio Segment, Federally Insured [Member] | Federally insured loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 1,312,319 | 1,260,394 | $ 1,604,494 |
Loans in forbearance | 1,650,913 | 1,774,405 | 2,125,344 |
Total loans | 21,461,548 | 21,721,606 | 23,940,093 |
Loans in repayment status: | |||
Loans current | $ 16,368,668 | $ 16,477,004 | $ 17,690,083 |
Loans current, percentage | 88.50% | 88.20% | 87.50% |
Total loans in repayment | $ 18,498,316 | $ 18,686,807 | $ 20,210,255 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 669,490 | $ 682,586 | $ 732,433 |
Loans past due, percentage | 3.60% | 3.70% | 3.60% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 426,696 | $ 374,534 | $ 493,876 |
Loans past due, percentage | 2.30% | 2.00% | 2.40% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 91-120 days past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 252,659 | $ 287,922 | $ 275,711 |
Loans past due, percentage | 1.40% | 1.50% | 1.40% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 121-270 days past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 570,538 | $ 629,480 | $ 763,030 |
Loans past due, percentage | 3.10% | 3.40% | 3.80% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 271 days or greater past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 210,265 | $ 235,281 | $ 255,122 |
Loans past due, percentage | 1.10% | 1.20% | 1.30% |
Consumer Portfolio Segment, Private Education Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 194,310 | $ 212,160 | |
Consumer Portfolio Segment, Private Education Loans [Member] | Private education loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 5,532 | 6,053 | $ 34,138 |
Loans in forbearance | 2,574 | 2,237 | 3,811 |
Total loans | 194,310 | 212,160 | 256,816 |
Loans in repayment status: | |||
Loans current | $ 178,976 | $ 196,720 | $ 213,081 |
Loans current, percentage | 96.10% | 96.50% | 97.40% |
Total loans in repayment | $ 186,204 | $ 203,870 | $ 218,867 |
Total loans in repayment, percentage | 100.00% | 100.00% | 100.00% |
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private education loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 1,630 | $ 1,867 | $ 1,355 |
Loans past due, percentage | 0.90% | 0.90% | 0.60% |
Consumer Portfolio Segment, Private Education Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private education loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 1,110 | $ 1,052 | $ 1,402 |
Loans past due, percentage | 0.60% | 0.50% | 0.60% |
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 | $ 4,488 | $ 4,231 | $ 3,029 |
Loans past due, percentage | 2.40% | 2.10% | 1.40% |
Bonds and Notes Payable - Outst
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 21,227,349 | $ 21,356,573 |
Discount on bonds and notes payable and debt issuance costs | (354,445) | (370,554) |
Variable-rate bonds and notes [Member] | Private education [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 66,765 | 74,717 |
Variable-rate bonds and notes [Member] | Private education [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.62% | |
Variable-rate bonds and notes [Member] | Private education [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.62% | |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 339,063 | $ 335,992 |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.94% | 1.55% |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.00% | 1.56% |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 150,000 | $ 10,000 |
Line of Credit [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.20% | 2.98% |
Line of Credit [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.20% | 2.98% |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,381 | $ 20,381 |
Junior Subordinated Debt [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.68% | 5.07% |
Junior Subordinated Debt [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.68% | 5.07% |
Other borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 29,450 | $ 70,516 |
Other borrowings [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.16% | 2.44% |
Other borrowings [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.66% | 3.38% |
Bonds and notes payable, gross [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 21,581,794 | $ 21,727,127 |
Federally insured [Member] | Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,132,994 | $ 20,352,045 |
Federally insured [Member] | Bonds and notes based on indices [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 1.85% | 1.47% |
Federally insured [Member] | Bonds and notes based on indices [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.99% | 3.37% |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 766,948 | $ 780,829 |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.20% | 2.09% |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.88% | 2.69% |
Federally insured [Member] | Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,899,942 | $ 21,132,874 |
Private education [Member] | Variable-rate bonds and notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.30% | |
Private education [Member] | Variable-rate bonds and notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.30% | |
Private education [Member] | fixed rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 76,193 | $ 82,647 |
Private education [Member] | fixed rate bonds and notes [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.60% | 3.60% |
Private education [Member] | fixed rate bonds and notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.35% | 5.35% |
Bonds and Notes Payable - Out49
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - FFELP Warehouse Total [Member] - Warehouse facilities [Member] | Mar. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 1,000,000,000 |
Amount outstanding | 339,063,000 |
Amount available | 660,937,000 |
Advanced as equity support | 27,671,000 |
NFSLW-I Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | 500,000,000 |
Amount outstanding | 49,623,000 |
Amount available | 450,377,000 |
Advanced as equity support | 2,402,000 |
NHELP-II Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | 500,000,000 |
Amount outstanding | 289,440,000 |
Amount available | 210,560,000 |
Advanced as equity support | $ 25,269,000 |
Minimum [Member] | NFSLW-I Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Minimum advance rates | 84.00% |
Maximum advance rates | 92.00% |
Minimum [Member] | NHELP-II Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Minimum advance rates | 85.00% |
Maximum advance rates | 85.00% |
Maximum [Member] | NFSLW-I Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Minimum advance rates | 90.00% |
Maximum advance rates | 98.00% |
Maximum [Member] | NHELP-II Warehouse [Member] | |
Line of Credit Facility [Line Items] | |
Minimum advance rates | 95.00% |
Maximum advance rates | 95.00% |
Bonds and Notes Payable - Sched
Bonds and Notes Payable - Schedule of Asset-Backed Securitizations (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |
Total original principal amount | $ 473,750 |
Secured Debt [Member] | NSLT 2018-1 Class A-1 Notes [Member] | |
Debt Instrument [Line Items] | |
Total original principal amount | 98,000 |
Secured Debt [Member] | NSLT 2018-1 Class A-2 Notes [Member] | |
Debt Instrument [Line Items] | |
Total original principal amount | $ 375,750 |
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | NSLT 2018-1 Class A-1 Notes [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on asset backed security | 0.32% |
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | NSLT 2018-1 Class A-2 Notes [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on asset backed security | 0.76% |
Bonds and Notes Payable - Narra
Bonds and Notes Payable - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||
Gain from debt repurchases | $ 359,000 | $ 4,980,000 |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maximum financing amount | 350,000,000 | |
Amount outstanding | 150,000,000 | |
Amount available | 200,000,000 | |
Asset-backed Securities [Member] | ||
Debt Instrument [Line Items] | ||
Amount of debt repurchased | 12,900,000 | |
Repurchase price | 12,500,000 | |
Gain from debt repurchases | $ 400,000 | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Amount of debt repurchased | 29,700,000 | |
Repurchase price | $ 25,300,000 |
Derivative Financial Instrume52
Derivative Financial Instruments - Schedule of Basis Swap (Details) - 1:3 basis swaps [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 9,500,000 | $ 11,250,000 |
Maturity 2,018 | ||
Derivative [Line Items] | ||
Notional amount | 1,750,000 | 4,250,000 |
Maturity 2,019 | ||
Derivative [Line Items] | ||
Notional amount | 3,500,000 | 3,500,000 |
Maturity 2,022 | ||
Derivative [Line Items] | ||
Notional amount | 1,000,000 | 1,000,000 |
Maturity 2,023 | ||
Derivative [Line Items] | ||
Notional amount | 750,000 | |
Maturity 2,024 | ||
Derivative [Line Items] | ||
Notional amount | 250,000 | 250,000 |
Maturity 2,026 | ||
Derivative [Line Items] | ||
Notional amount | 1,150,000 | 1,150,000 |
Maturity 2,027 | ||
Derivative [Line Items] | ||
Notional amount | 375,000 | 375,000 |
Maturity 2,028 | ||
Derivative [Line Items] | ||
Notional amount | 325,000 | 325,000 |
Maturity 2,029 | ||
Derivative [Line Items] | ||
Notional amount | 100,000 | 100,000 |
Maturity 2,031 | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000 | $ 300,000 |
Derivative Financial Instrume53
Derivative Financial Instruments - Narrative (Details) | Aug. 20, 2014USD ($) | Jun. 30, 2015USD ($)contract | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |||||
Bonds and notes payable | $ 21,227,349,000 | $ 21,356,573,000 | |||
1:3 basis swaps [Member] | |||||
Derivative [Line Items] | |||||
Weighted average basis point paid | 0.106% | 0.125% | |||
Notional amount | $ 9,500,000,000 | $ 11,250,000,000 | |||
Swaption [Member] | |||||
Derivative [Line Items] | |||||
Payments to enter into derivative instruments | $ 9,100,000 | ||||
Notional amount | $ 250,000,000 | ||||
Fixed interest rate of swap option | 3.30% | ||||
Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Payments to enter into derivative instruments | $ 2,900,000 | ||||
Notional amount | $ 275,000,000 | ||||
Number of interest rate cap contracts purchased | contract | 2 | ||||
Proceeds to terminate interest rate cap | $ 913,000 | ||||
Private Loan Warehouse Total [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Bonds and notes payable | $ 275,000,000 | ||||
Interest Rate Cap 1 [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | $ 125,000,000 | ||||
Interest rate cap strike rate | 2.50% | ||||
Interest Rate Cap 2 [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | $ 150,000,000 | ||||
Interest rate cap strike rate | 4.99% | ||||
2017 Interest Rate Cap [Member] | Interest Rate Cap [Member] | |||||
Derivative [Line Items] | |||||
Payments to enter into derivative instruments | $ 929,000 | ||||
Junior Subordinated Debt [Member] | |||||
Derivative [Line Items] | |||||
Bonds and notes payable | $ 20,381,000 | 20,381,000 | |||
Junior Subordinated Debt [Member] | Maturity 2036 [Member] | Unsecured Debt Hedges [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional amount | 25,000,000 | 25,000,000 | |||
Bonds and notes payable | $ 20,400,000 | $ 20,400,000 | |||
Weighted average basis spread on variable rate paid on swap | 3.375% | ||||
Fixed interest rate on derivatives and debt, net | 7.66% | 7.66% |
Derivative Financial Instrume54
Derivative Financial Instruments - Schedule of Interest Rate Swaps, Floor Income Hedge (Details) - Interest rate swaps - floor income hedges [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 7,300,000 | $ 7,300,000 |
Weighted average fixed rate paid by the Company | 1.24% | 1.21% |
Maturity 2018 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 1,250,000 | $ 1,350,000 |
Weighted average fixed rate paid by the Company | 1.08% | 1.07% |
Maturity 2019 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 3,250,000 | $ 3,250,000 |
Weighted average fixed rate paid by the Company | 0.97% | 0.97% |
Maturity 2020 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 1,500,000 | $ 1,500,000 |
Weighted average fixed rate paid by the Company | 1.01% | 1.01% |
Maturity 2023 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 750,000 | $ 750,000 |
Weighted average fixed rate paid by the Company | 2.28% | 2.28% |
Maturity 2024 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000 | $ 300,000 |
Weighted average fixed rate paid by the Company | 2.28% | 2.28% |
Maturity 2025 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000 | $ 100,000 |
Weighted average fixed rate paid by the Company | 2.32% | 2.32% |
Maturity 2027 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 50,000 | $ 50,000 |
Weighted average fixed rate paid by the Company | 2.32% | 2.32% |
Maturity 2028 [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 100,000 | $ 0 |
Weighted average fixed rate paid by the Company | 3.03% | 0.00% |
Derivative Financial Instrume55
Derivative Financial Instruments - Schedule of Interest Rate Swaps, Unsecured Debt Hedges (Details) - Junior Subordinated Debt [Member] - Maturity 2036 [Member] - Interest Rate Swap [Member] - Unsecured Debt Hedges [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 25,000 | $ 25,000 |
Weighted average fixed rate paid by the Company | 4.28% | 4.28% |
Derivative Financial Instrume56
Derivative Financial Instruments - Schedule of Derivatives as Reflected on Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | $ 1,891 | $ 818 |
Fair value of derivative instruments | 5,601 | 7,063 |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 1,891 | 818 |
Derivative Financial Instruments, Assets [Member] | Swaption [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 1,290 | 543 |
Derivative Financial Instruments, Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 601 | 275 |
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, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 5,601 | 7,063 |
Derivative Financial Instruments, Liabilities [Member] | Swaption [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 0 | 0 |
Derivative Financial Instruments, Liabilities [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | 0 | 0 |
Derivative Financial Instruments, Liabilities [Member] | Interest rate swaps - hybrid debt hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative instruments | $ 5,601 | $ 7,063 |
Derivative Financial Instrume57
Derivative Financial Instruments - Schedule of Offsetting of Derivative Assets/Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Net asset | $ 1,891 | $ 818 |
Net asset (liability) | 1,919 | 1,457 |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets presented in the consolidated balance sheets | 1,891 | 818 |
Derivatives subject to enforceable master netting arrangement | 0 | 0 |
Cash collateral received | 0 | 0 |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized liabilities presented in the consolidated balance sheets | (5,601) | (7,063) |
Derivatives subject to enforceable master netting arrangement | 0 | 0 |
Cash collateral pledged | $ 7,520 | $ 8,520 |
Derivative Financial Instrume58
Derivative Financial Instruments - Schedule of Income Statement Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | $ 6,766 | $ (1,378) |
Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | 6,766 | (1,378) |
Change in fair value | 60,033 | 1,238 |
Re-measurement of Euro Notes (foreign currency transaction adjustment) | 0 | (4,690) |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) | 66,799 | (4,830) |
1:3 basis swaps [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | (1,664) | 698 |
Change in fair value | 13,297 | (2,574) |
Interest rate swaps - floor income hedges [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | 8,590 | (120) |
Change in fair value | 44,201 | 4,324 |
Interest rate swap option - floor income hedges [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value | 747 | (884) |
Interest rate swaps - hybrid debt hedges [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | (160) | (205) |
Change in fair value | 1,462 | 419 |
Interest Rate Cap [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value | 326 | (522) |
Cross-currency interest rate swap [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative settlements, net | 0 | (1,751) |
Change in fair value | 0 | 935 |
Other Contract [Member] | Other Income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value | $ 0 | $ (460) |
Investments and Notes Receiva59
Investments and Notes Receivable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Student loan asset-backed and other debt securities - available-for-sale | ||
Amortized cost | $ 78,203,000 | |
Gross unrealized gains | 4,558,000 | |
Gross unrealized losses | (634,000) | |
Fair value | 82,127,000 | |
Equity securities | ||
Amortized cost | 13,682,000 | |
Gross unrealized gains | 3,554,000 | |
Gross unrealized losses | (151,000) | |
Fair value | 17,085,000 | |
Total investments (at fair value) | ||
Amortized cost | 91,885,000 | |
Gross unrealized gains | 8,112,000 | |
Gross unrealized losses | (785,000) | |
Fair value | 99,212,000 | |
Other Investments and Notes Receivable (not measured at fair value): | ||
Other Investments and Notes Receivable (not measured at fair value): | 159,214,000 | |
Available-for-sale investments: | ||
Total investments and notes receivable | 258,426,000 | $ 240,538,000 |
Impairment loss | 0 | |
Upward adjustment | 6,900,000 | |
Investments [Member] | Available-for-sale investments [Member] | ||
Available-for-sale investments: | ||
Amortized cost | 73,573,000 | |
Gross unrealized gains | 7,354,000 | |
Gross unrealized losses | (25,000) | |
Fair value | 80,902,000 | |
Available for sale investments with unrealized losses | 17,800,000 | |
Investments [Member] | Available-for-sale investments [Member] | Student Loan Asset-Backed and Other Debt Securities [Member] | ||
Available-for-sale investments: | ||
Amortized cost | 71,943,000 | |
Gross unrealized gains | 5,056,000 | |
Gross unrealized losses | (25,000) | |
Fair value | 76,974,000 | |
Investments [Member] | Available-for-sale investments [Member] | Equity securities [Member] | ||
Available-for-sale investments: | ||
Amortized cost | 1,630,000 | |
Gross unrealized gains | 2,298,000 | |
Gross unrealized losses | 0 | |
Fair value | 3,928,000 | |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Venture Capital and Funds [Member] | ||
Other Investments and Notes Receivable (not measured at fair value): | ||
Measurement alternative | 68,409,000 | |
Equity method | 16,175,000 | |
Other | 783,000 | |
Other Investments and Notes Receivable (not measured at fair value): | 85,367,000 | 84,752,000 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Notes Receivable [Member] | ||
Other Investments and Notes Receivable (not measured at fair value): | ||
Other Investments and Notes Receivable (not measured at fair value): | 16,373,000 | 16,393,000 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Real Estate Investment [Member] | ||
Other Investments and Notes Receivable (not measured at fair value): | ||
Equity method | 18,850,000 | |
Other | 30,005,000 | |
Other Investments and Notes Receivable (not measured at fair value): | 48,855,000 | 49,464,000 |
Other Investments and Notes Receivable (not measured at fair value) [Member] | Tax liens and affordable housing investments [Member] | ||
Other Investments and Notes Receivable (not measured at fair value): | ||
Other Investments and Notes Receivable (not measured at fair value): | $ 8,619,000 | $ 9,027,000 |
Student Asset Backed And Other Debt Securities [Member] | Available-for-sale investments [Member] | ||
Available-for-sale investments: | ||
Available for sale securities, minimum maturity term | 10 years |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | Feb. 07, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 158,456 | $ 138,759 | |
Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Percent ownership acquired | 100.00% | ||
Payments to acquire businesses | $ 150,000 | ||
Reduction to equity as result of remeasurement of equity interest previously held | $ 19,100 | ||
Equity interest previously held | 50.00% | ||
Consideration allocated to assets acquired and liabilities assumed | $ 136,551 | ||
Intangible assets acquired | $ 72,278 | ||
Weighted average useful life of intangible assets acquired | 4 years | ||
Goodwill | $ 19,697 | ||
Acquiree revenue since acquisition | 43,500 | ||
Acquiree net income as of acquisition | $ 11,900 | ||
Great Lakes Educational Loan Service [Member] | GreatNet [Member] | |||
Business Acquisition [Line Items] | |||
Percent ownership acquired | 50.00% | ||
Noncontrolling interests [Member] | Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Reduction to equity as result of remeasurement of equity interest previously held | $ 5,700 | ||
Retained earnings [Member] | Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Reduction to equity as result of remeasurement of equity interest previously held | 13,400 | ||
Customer Relationships [Member] | Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 67,200 | ||
Weighted average useful life of intangible assets acquired | 4 years | ||
Trade Names [Member] | Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 5,100 | ||
Weighted average useful life of intangible assets acquired | 7 years |
Business Combination - Schedule
Business Combination - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Feb. 07, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 158,456 | $ 138,759 | |
Great Lakes Educational Loan Service [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 27,399 | ||
Accounts receivable | 23,708 | ||
Property and equipment | 36,040 | ||
Other assets | 14,015 | ||
Intangible assets | 72,278 | ||
Goodwill | 19,697 | ||
Other liabilities | (56,586) | ||
Net assets acquired | $ 136,551 |
Business Combination - Schedu62
Business Combination - Schedule of Pro Forma Information (Details) - Great Lakes Educational Loan Service [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Loan servicing and systems revenue | $ 120,188 | $ 116,149 |
Net income attributable to Nelnet, Inc. | $ 118,029 | $ 61,421 |
Net income per share - basic and diluted (in dollars per share) | $ 2.88 | $ 1.45 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life as of March 31, 2018 (months) | 75 months | ||
Finite-lived intangible assets, net | $ 107,192 | $ 38,427 | |
Amortization of intangible assets | $ 6,200 | $ 2,400 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life as of March 31, 2018 (months) | 77 months | ||
Finite-lived intangible assets, net | $ 87,275 | 24,168 | |
Accumulated amortization of intangible assets | $ 16,766 | 12,715 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life as of March 31, 2018 (months) | 86 months | ||
Finite-lived intangible assets, net | $ 13,409 | 9,074 | |
Accumulated amortization of intangible assets | $ 3,283 | 2,498 | |
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life as of March 31, 2018 (months) | 20 months | ||
Finite-lived intangible assets, net | $ 6,290 | 4,958 | |
Accumulated amortization of intangible assets | $ 11,381 | 10,013 | |
Covenants not to compete [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average remaining useful life as of March 31, 2018 (months) | 74 months | ||
Finite-lived intangible assets, net | $ 218 | 227 | |
Accumulated amortization of intangible assets | $ 136 | $ 127 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2018 (April 1 - December 31) | $ 22,975 | |
2,019 | 27,373 | |
2,020 | 24,175 | |
2,021 | 14,278 | |
2,022 | 3,723 | |
2023 and thereafter | 14,668 | |
Finite-lived intangible assets, net | $ 107,192 | $ 38,427 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 138,759 |
Goodwill acquired during the period | 19,697 |
Balance at end of period | 158,456 |
Loan Servicing and Systems [Member] | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 8,596 |
Goodwill acquired during the period | 19,697 |
Balance at end of period | 28,293 |
Education Technology Services And Payment Processing [Member] | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 67,168 |
Goodwill acquired during the period | 0 |
Balance at end of period | 67,168 |
Communications [Member] | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 21,112 |
Goodwill acquired during the period | 0 |
Balance at end of period | 21,112 |
Asset Generation and Management [Member] | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 41,883 |
Goodwill acquired during the period | 0 |
Balance at end of period | 41,883 |
Corporate and Other Activities [Member] | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 0 |
Goodwill acquired during the period | 0 |
Balance at end of period | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | $ 299,837 | $ 248,051 | |
Depreciation | 12,200 | $ 6,200 | |
Non-communications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 218,958 | 182,248 | |
Accumulated depreciation | (103,104) | (105,017) | |
Property and equipment, net | 115,854 | 77,231 | |
Non-communications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 128,304 | 124,708 | |
Non-communications [Member] | Computer Equipment and Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Non-communications [Member] | Computer Equipment and Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Non-communications [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 46,576 | 24,003 | |
Non-communications [Member] | Building [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Non-communications [Member] | Building [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 39 years | ||
Non-communications [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 21,474 | 15,210 | |
Non-communications [Member] | Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Non-communications [Member] | Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 7 years | ||
Non-communications [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 9,177 | 7,759 | |
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] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,371 | 3,813 | |
Non-communications [Member] | Transportation Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 4 years | ||
Non-communications [Member] | Transportation Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Non-communications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,328 | 2,628 | |
Non-communications [Member] | Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,728 | 4,127 | |
Communications [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 204,297 | 186,398 | |
Accumulated depreciation | (20,314) | (15,578) | |
Property and equipment, net | 183,983 | 170,820 | |
Communications [Member] | Computer Equipment and Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,598 | 3,790 | |
Communications [Member] | Computer Equipment and Software [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Communications [Member] | Computer Equipment and Software [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Communications [Member] | Transportation Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5,923 | 5,759 | |
Communications [Member] | Transportation Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 4 years | ||
Communications [Member] | Transportation Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Communications [Member] | Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 70 | 70 | |
Communications [Member] | Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 12,170 | 11,620 | |
Communications [Member] | Network plant and fiber [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 152,054 | 138,122 | |
Communications [Member] | Network plant and fiber [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Communications [Member] | Network plant and fiber [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Communications [Member] | Customer located property [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 15,565 | 13,767 | |
Communications [Member] | Customer located property [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Communications [Member] | Customer located property [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Communications [Member] | Central office [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 11,286 | 10,754 | |
Communications [Member] | Central office [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Communications [Member] | Central office [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 15 years | ||
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,631 | $ 2,516 | |
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Communications [Member] | Other Capitalized Property Plant and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 39 years |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to Nelnet, Inc. | $ 113,925 | $ 50,026 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,950,528 | 42,291,857 |
Earnings per share - basic and diluted (in dollars per share) | $ 2.78 | $ 1.18 |
Common shareholders [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to Nelnet, Inc. | $ 112,788 | $ 49,505 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,541,870 | 41,851,064 |
Earnings per share - basic and diluted (in dollars per share) | $ 2.78 | $ 1.18 |
Unvested restricted stock shareholders [Member] | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to Nelnet, Inc. | $ 1,137 | $ 521 |
Weighted average common shares outstanding - basic and diluted (in shares) | 408,658 | 440,793 |
Earnings per share - basic and diluted (in dollars per share) | $ 2.78 | $ 1.18 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Tax Cuts And Jobs Act Of 2017, Segment Income Before Tax Allocation Percentage | 24.00% | ||
Total interest income | $ 202,857 | $ 183,824 | |
Interest expense | 135,550 | 106,899 | |
Net interest income | 67,307 | 76,925 | |
Less provision for loan losses | 4,000 | 1,000 | |
Net interest income (loss) after provision for loan losses | 63,307 | 75,925 | |
Other income: | |||
Loan servicing and systems revenue | 100,141 | 54,229 | |
Intersegment servicing revenue | 0 | 0 | |
Education technology, services, and payment processing revenue | 60,221 | 56,024 | |
Communications revenue | 9,189 | 5,106 | |
Other income | 18,198 | 12,632 | |
Gain from debt repurchases | 359 | 4,980 | |
Derivative settlements, net | 6,766 | (1,378) | |
Derivative market value and foreign currency transaction adjustments, net | 60,033 | (3,452) | |
Total other income | 254,907 | 128,141 | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 13,683 | 12,790 | |
Cost to provide communications services | 3,717 | 1,954 | |
Total cost of services | 17,400 | 14,744 | |
Operating expenses: | |||
Salaries and benefits | 96,643 | 71,863 | |
Depreciation and amortization | 18,457 | 8,598 | |
Loan servicing fees | 3,136 | 6,025 | |
Other expenses | 33,417 | 26,161 | |
Intersegment expenses, net | 0 | 0 | |
Total operating expenses | 151,653 | 112,647 | |
Income (loss) before income taxes | 149,161 | 76,675 | |
Income tax (expense) benefit (a) | (35,976) | (28,755) | |
Net income (loss) | 113,185 | 47,920 | |
Net loss (income) attributable to noncontrolling interests | 740 | 2,106 | |
Net income (loss) attributable to Nelnet, Inc. | 113,925 | 50,026 | |
Total assets | 23,898,402 | 26,141,220 | $ 23,964,435 |
Operating Segments [Member] | Loan Servicing and Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 257 | 94 | |
Interest expense | 0 | 0 | |
Net interest income | 257 | 94 | |
Less provision for loan losses | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 257 | 94 | |
Other income: | |||
Loan servicing and systems revenue | 100,141 | 54,229 | |
Intersegment servicing revenue | 10,771 | 10,323 | |
Education technology, services, and payment processing revenue | 0 | 0 | |
Communications revenue | 0 | 0 | |
Other income | 1,292 | 0 | |
Gain from debt repurchases | 0 | 0 | |
Derivative settlements, net | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | |
Total other income | 112,204 | 64,552 | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 0 | 0 | |
Cost to provide communications services | 0 | 0 | |
Total cost of services | 0 | 0 | |
Operating expenses: | |||
Salaries and benefits | 58,537 | 37,992 | |
Depreciation and amortization | 6,069 | 549 | |
Loan servicing fees | 0 | 0 | |
Other expenses | 14,463 | 9,136 | |
Intersegment expenses, net | 13,356 | 7,398 | |
Total operating expenses | 92,425 | 55,075 | |
Income (loss) before income taxes | 20,036 | 9,571 | |
Income tax (expense) benefit (a) | (5,003) | (4,555) | |
Net income (loss) | 15,033 | 5,016 | |
Net loss (income) attributable to noncontrolling interests | 808 | 2,415 | |
Net income (loss) attributable to Nelnet, Inc. | 15,841 | 7,431 | |
Total assets | 281,208 | 87,115 | |
Operating Segments [Member] | Education Technology Services And Payment Processing [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 665 | 2 | |
Interest expense | 0 | 0 | |
Net interest income | 665 | 2 | |
Less provision for loan losses | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 665 | 2 | |
Other income: | |||
Loan servicing and systems revenue | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | |
Education technology, services, and payment processing revenue | 60,221 | 56,024 | |
Communications revenue | 0 | 0 | |
Other income | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | |
Derivative settlements, net | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | |
Total other income | 60,221 | 56,024 | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 13,683 | 12,790 | |
Cost to provide communications services | 0 | 0 | |
Total cost of services | 13,683 | 12,790 | |
Operating expenses: | |||
Salaries and benefits | 19,067 | 16,652 | |
Depreciation and amortization | 3,341 | 2,391 | |
Loan servicing fees | 0 | 0 | |
Other expenses | 4,624 | 4,609 | |
Intersegment expenses, net | 2,567 | 2,075 | |
Total operating expenses | 29,599 | 25,727 | |
Income (loss) before income taxes | 17,604 | 17,509 | |
Income tax (expense) benefit (a) | (4,225) | (6,653) | |
Net income (loss) | 13,379 | 10,856 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 13,379 | 10,856 | |
Total assets | 193,283 | 194,809 | |
Operating Segments [Member] | Communications [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 1 | 1 | |
Interest expense | 2,509 | 712 | |
Net interest income | (2,508) | (711) | |
Less provision for loan losses | 0 | 0 | |
Net interest income (loss) after provision for loan losses | (2,508) | (711) | |
Other income: | |||
Loan servicing and systems revenue | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | |
Education technology, services, and payment processing revenue | 0 | 0 | |
Communications revenue | 9,189 | 5,106 | |
Other income | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | |
Derivative settlements, net | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | |
Total other income | 9,189 | 5,106 | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 0 | 0 | |
Cost to provide communications services | 3,717 | 1,954 | |
Total cost of services | 3,717 | 1,954 | |
Operating expenses: | |||
Salaries and benefits | 4,063 | 2,979 | |
Depreciation and amortization | 4,921 | 2,135 | |
Loan servicing fees | 0 | 0 | |
Other expenses | 2,638 | 1,372 | |
Intersegment expenses, net | 605 | 506 | |
Total operating expenses | 12,227 | 6,992 | |
Income (loss) before income taxes | (9,263) | (4,551) | |
Income tax (expense) benefit (a) | 2,223 | 1,730 | |
Net income (loss) | (7,040) | (2,821) | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | (7,040) | (2,821) | |
Total assets | 228,750 | 118,842 | |
Operating Segments [Member] | Asset Generation and Management [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 200,334 | 182,326 | |
Interest expense | 134,233 | 106,751 | |
Net interest income | 66,101 | 75,575 | |
Less provision for loan losses | 4,000 | 1,000 | |
Net interest income (loss) after provision for loan losses | 62,101 | 74,575 | |
Other income: | |||
Loan servicing and systems revenue | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | |
Education technology, services, and payment processing revenue | 0 | 0 | |
Communications revenue | 0 | 0 | |
Other income | 2,992 | 3,342 | |
Gain from debt repurchases | 359 | 540 | |
Derivative settlements, net | 6,926 | (1,173) | |
Derivative market value and foreign currency transaction adjustments, net | 58,571 | (3,410) | |
Total other income | 68,848 | (701) | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 0 | 0 | |
Cost to provide communications services | 0 | 0 | |
Total cost of services | 0 | 0 | |
Operating expenses: | |||
Salaries and benefits | 382 | 400 | |
Depreciation and amortization | 0 | 0 | |
Loan servicing fees | 3,136 | 6,025 | |
Other expenses | 848 | 991 | |
Intersegment expenses, net | 10,865 | 10,412 | |
Total operating expenses | 15,231 | 17,828 | |
Income (loss) before income taxes | 115,718 | 56,046 | |
Income tax (expense) benefit (a) | (27,773) | (21,297) | |
Net income (loss) | 87,945 | 34,749 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 87,945 | 34,749 | |
Total assets | 22,804,734 | 25,325,220 | |
Operating Segments [Member] | Corporate and Other Activities [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | 4,751 | 2,761 | |
Interest expense | 1,958 | 795 | |
Net interest income | 2,793 | 1,966 | |
Less provision for loan losses | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 2,793 | 1,966 | |
Other income: | |||
Loan servicing and systems revenue | 0 | 0 | |
Intersegment servicing revenue | 0 | 0 | |
Education technology, services, and payment processing revenue | 0 | 0 | |
Communications revenue | 0 | 0 | |
Other income | 13,914 | 9,290 | |
Gain from debt repurchases | 0 | 4,440 | |
Derivative settlements, net | (160) | (205) | |
Derivative market value and foreign currency transaction adjustments, net | 1,462 | (42) | |
Total other income | 15,216 | 13,483 | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 0 | 0 | |
Cost to provide communications services | 0 | 0 | |
Total cost of services | 0 | 0 | |
Operating expenses: | |||
Salaries and benefits | 14,594 | 13,839 | |
Depreciation and amortization | 4,126 | 3,523 | |
Loan servicing fees | 0 | 0 | |
Other expenses | 10,845 | 10,054 | |
Intersegment expenses, net | (16,622) | (10,068) | |
Total operating expenses | 12,943 | 17,348 | |
Income (loss) before income taxes | 5,066 | (1,899) | |
Income tax (expense) benefit (a) | (1,199) | 2,021 | |
Net income (loss) | 3,867 | 122 | |
Net loss (income) attributable to noncontrolling interests | (68) | (309) | |
Net income (loss) attributable to Nelnet, Inc. | 3,799 | (187) | |
Total assets | 718,251 | 682,639 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Total interest income | (3,150) | (1,359) | |
Interest expense | (3,150) | (1,359) | |
Net interest income | 0 | 0 | |
Less provision for loan losses | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 0 | 0 | |
Other income: | |||
Loan servicing and systems revenue | 0 | 0 | |
Intersegment servicing revenue | (10,771) | (10,323) | |
Education technology, services, and payment processing revenue | 0 | 0 | |
Communications revenue | 0 | 0 | |
Other income | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | |
Derivative settlements, net | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | |
Total other income | (10,771) | (10,323) | |
Cost of services: | |||
Cost to provide education technology, services, and payment processing services | 0 | 0 | |
Cost to provide communications services | 0 | 0 | |
Total cost of services | 0 | 0 | |
Operating expenses: | |||
Salaries and benefits | 0 | 0 | |
Depreciation and amortization | 0 | 0 | |
Loan servicing fees | 0 | 0 | |
Other expenses | 0 | 0 | |
Intersegment expenses, net | (10,771) | (10,323) | |
Total operating expenses | (10,771) | (10,323) | |
Income (loss) before income taxes | 0 | 0 | |
Income tax (expense) benefit (a) | 0 | 0 | |
Net income (loss) | 0 | 0 | |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 0 | 0 | |
Total assets | $ (327,824) | $ (267,405) |
Major Customer (Details)
Major Customer (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | |
Concentration Risk Dollar Value [Member] | |||
Concentration Risk [Line Items] | |||
Loan systems and servicing revenue | $ 39.3 | $ 39 | |
Great Lakes Educational Loan Service [Member] | |||
Concentration Risk [Line Items] | |||
Acquiree revenue since acquisition | $ 43.5 | ||
Great Lakes Educational Loan Service [Member] | Concentration Risk Dollar Value [Member] | |||
Concentration Risk [Line Items] | |||
Acquiree revenue since acquisition | $ 30.8 |
Assets and Liabilities that are
Assets and Liabilities that are Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Equity securities [Member] | ||
Financial assets: | ||
Equity securities measured at net asset value | $ 12,366 | |
Fair Value, Measurements, Recurring [Member] | ||
Financial assets: | ||
Fair value | 99,212 | $ 80,902 |
Fair value of derivative instruments | 1,891 | 818 |
Total assets | 101,103 | 81,720 |
Financial liabilities: | ||
Fair value of derivative instruments | 5,601 | 7,063 |
Total liabilities | 5,601 | 7,063 |
Fair Value, Measurements, Recurring [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 82,020 | 76,866 |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 4,719 | 3,928 |
Fair Value, Measurements, Recurring [Member] | Debt securities [Member] | ||
Financial assets: | ||
Fair value | 107 | 108 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fair value | 4,826 | 4,036 |
Fair value of derivative instruments | 0 | 0 |
Total assets | 4,826 | 4,036 |
Financial liabilities: | ||
Fair value of derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 4,719 | 3,928 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Debt securities [Member] | ||
Financial assets: | ||
Fair value | 107 | 108 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fair value | 82,020 | 76,866 |
Fair value of derivative instruments | 1,891 | 818 |
Total assets | 83,911 | 77,684 |
Financial liabilities: | ||
Fair value of derivative instruments | 5,601 | 7,063 |
Total liabilities | 5,601 | 7,063 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 82,020 | 76,866 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Debt securities [Member] | ||
Financial assets: | ||
Fair value | $ 0 | $ 0 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Loans receivable | $ 21,562,030 | $ 21,814,507 | ||
Cash and cash equivalents | 69,286 | 66,752 | $ 108,160 | $ 69,654 |
Restricted cash | 727,471 | 688,193 | ||
Restricted cash – due to customers | 128,515 | 187,121 | $ 93,699 | $ 119,702 |
Accrued interest receivable | 489,395 | 430,385 | ||
Derivative instruments | 1,891 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,227,349 | 21,356,573 | ||
Accrued interest payable | 54,252 | 50,039 | ||
Due to customers | 128,515 | 187,121 | ||
Derivative instruments | 5,601 | 7,063 | ||
Fair value [Member] | ||||
Financial assets: | ||||
Loans receivable | 22,884,620 | 23,106,440 | ||
Cash and cash equivalents | 69,286 | 66,752 | ||
Investments (at fair value) | 99,212 | 80,902 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 727,471 | 688,193 | ||
Restricted cash – due to customers | 128,515 | 187,121 | ||
Accrued interest receivable | 489,395 | 430,385 | ||
Derivative instruments | 1,891 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,475,380 | 21,521,463 | ||
Accrued interest payable | 54,252 | 50,039 | ||
Due to customers | 128,515 | 187,121 | ||
Derivative instruments | 5,601 | 7,063 | ||
Fair value [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Cash and cash equivalents | 69,286 | 66,752 | ||
Investments (at fair value) | 4,826 | 4,036 | ||
Notes receivable | 0 | 0 | ||
Restricted cash | 727,471 | 688,193 | ||
Restricted cash – due to customers | 128,515 | 187,121 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 128,515 | 187,121 | ||
Derivative instruments | 0 | 0 | ||
Fair value [Member] | Level 2 [Member] | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (at fair value) | 82,020 | 76,866 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 0 | 0 | ||
Restricted cash – due to customers | 0 | 0 | ||
Accrued interest receivable | 489,395 | 430,385 | ||
Derivative instruments | 1,891 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,475,380 | 21,521,463 | ||
Accrued interest payable | 54,252 | 50,039 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 5,601 | 7,063 | ||
Fair value [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Loans receivable | 22,884,620 | 23,106,440 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (at fair value) | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Restricted cash – due to customers | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Carrying value [Member] | ||||
Financial assets: | ||||
Loans receivable | 21,562,030 | 21,814,507 | ||
Cash and cash equivalents | 69,286 | 66,752 | ||
Investments (at fair value) | 99,212 | 80,902 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 727,471 | 688,193 | ||
Restricted cash – due to customers | 128,515 | 187,121 | ||
Accrued interest receivable | 489,395 | 430,385 | ||
Derivative instruments | 1,891 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 21,227,349 | 21,356,573 | ||
Accrued interest payable | 54,252 | 50,039 | ||
Due to customers | 128,515 | 187,121 | ||
Derivative instruments | $ 5,601 | $ 7,063 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Apr. 25, 2018 | May 08, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||||
Purchase of financing receivables | $ 1,000,000 | $ 150,000 | ||
Consumer Portfolio Segment, Federally Insured [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase of financing receivables | 1,000,000 | $ 0 | ||
Consumer Portfolio Segment, Federally Insured [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase of financing receivables | $ 1,500,000,000 | $ 351,300,000 | ||
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||||
Subsequent Event [Line Items] | ||||
Maximum financing amount | $ 1,000,000,000 | |||
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Maximum financing amount | $ 2,300,000,000 |