Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 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 | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 29,332,461 | |
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 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Loans receivable (net of allowance for loan losses of $53,715 and $54,590, respectively) | $ 22,710,369 | $ 21,814,507 |
Cash and cash equivalents: | ||
Cash and cash equivalents - not held at a related party | 20,739 | 6,982 |
Cash and cash equivalents - held at a related party | 47,128 | 59,770 |
Total cash and cash equivalents | 67,867 | 66,752 |
Investments and notes receivable | 256,647 | 240,538 |
Restricted cash | 741,726 | 688,193 |
Restricted cash – due to customers | 154,760 | 187,121 |
Accrued interest receivable | 591,055 | 430,385 |
Accounts receivable (net of allowance for doubtful accounts of $1,778 and $1,436, respectively) | 59,171 | 37,863 |
Goodwill | 153,802 | 138,759 |
Intangible assets, net | 102,489 | 38,427 |
Property and equipment, net | 328,016 | 248,051 |
Other assets | 41,388 | 73,021 |
Fair value of derivative instruments | 1,954 | 818 |
Total assets | 25,209,244 | 23,964,435 |
Liabilities: | ||
Bonds and notes payable | 22,468,364 | 21,356,573 |
Accrued interest payable | 63,226 | 50,039 |
Other liabilities | 231,138 | 198,252 |
Due to customers | 154,760 | 187,121 |
Fair value of derivative instruments | 5,053 | 7,063 |
Total liabilities | 22,922,541 | 21,799,048 |
Commitments and contingencies | ||
Nelnet, Inc. shareholders' equity: | ||
Preferred stock | 0 | 0 |
Additional paid-in capital | 2,586 | 521 |
Retained earnings | 2,271,171 | 2,143,983 |
Accumulated other comprehensive earnings | 2,704 | 4,617 |
Total Nelnet, Inc. shareholders' equity | 2,276,869 | 2,149,529 |
Noncontrolling interests | 9,834 | 15,858 |
Total equity | 2,286,703 | 2,165,387 |
Total liabilities and equity | 25,209,244 | 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 consolidated education lending variable interest entities: [Member] | ||
Assets: | ||
Loans receivable (net of allowance for loan losses of $53,715 and $54,590, respectively) | 22,759,323 | 21,909,476 |
Cash and cash equivalents: | ||
Restricted cash | 699,779 | 641,994 |
Other assets | 593,394 | 431,934 |
Liabilities: | ||
Bonds and notes payable | 22,565,920 | 21,702,298 |
Other liabilities | 261,731 | 168,637 |
Nelnet, Inc. shareholders' equity: | ||
Net assets of consolidated education lending variable interest entities | $ 1,224,845 | $ 1,112,469 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for loan losses | $ 53,715 | $ 54,590 |
Allowance for doubtful accounts | $ 1,778 | $ 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) | 29,331,002 | 29,341,517 |
Shares Outstanding (in shares) | 29,331,002 | 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Loan interest | $ 223,371 | $ 189,878 | $ 421,094 | $ 371,086 |
Investment interest | 5,818 | 3,200 | 10,952 | 5,816 |
Total interest income | 229,189 | 193,078 | 432,046 | 376,902 |
Interest expense: | ||||
Interest on bonds and notes payable | 171,450 | 113,236 | 306,999 | 220,135 |
Net interest income | 57,739 | 79,842 | 125,047 | 156,767 |
Less provision for loan losses | 3,500 | 3,000 | 7,500 | 4,000 |
Net interest income (loss) after provision for loan losses | 54,239 | 76,842 | 117,547 | 152,767 |
Other income: | ||||
Other income | 9,580 | 12,485 | 27,776 | 25,118 |
Gain from debt repurchases | 0 | 442 | 359 | 5,421 |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net | 17,031 | (27,910) | 83,829 | (32,741) |
Total other income | 200,218 | 91,115 | 455,123 | 219,256 |
Cost of services: | ||||
Total cost of services | 15,182 | 11,718 | 32,583 | 26,462 |
Operating expenses: | ||||
Salaries and benefits | 111,118 | 74,628 | 207,760 | 146,491 |
Depreciation and amortization | 21,494 | 9,038 | 39,951 | 17,636 |
Loan servicing fees | 3,204 | 5,628 | 6,341 | 11,653 |
Other expenses | 40,409 | 26,262 | 73,826 | 52,423 |
Total operating expenses | 176,225 | 115,556 | 327,878 | 228,203 |
Income before income taxes | 63,050 | 40,683 | 212,209 | 117,358 |
Income tax expense | 13,511 | 16,032 | 49,487 | 44,787 |
Net income (loss) | 49,539 | 24,651 | 162,722 | 72,571 |
Net (income) loss attributable to noncontrolling interests | (104) | 4,086 | 637 | 6,192 |
Net income (loss) attributable to Nelnet, Inc. | $ 49,435 | $ 28,737 | $ 163,359 | $ 78,763 |
Earnings per common share: | ||||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) | $ 1.21 | $ 0.68 | $ 3.99 | $ 1.86 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,886,617 | 42,326,540 | 40,918,396 | 42,309,295 |
Loan Servicing And Systems [Member] | ||||
Other income: | ||||
Revenue | $ 114,545 | $ 56,899 | $ 214,687 | $ 111,128 |
Education Technology Services And Payment Processing Services [Member] | ||||
Other income: | ||||
Revenue | 48,742 | 43,480 | 108,963 | 99,504 |
Cost of services: | ||||
Total cost of services | 11,317 | 9,515 | 25,000 | 22,305 |
Communications Services [Member] | ||||
Other income: | ||||
Revenue | 10,320 | 5,719 | 19,509 | 10,826 |
Cost of services: | ||||
Total cost of services | $ 3,865 | $ 2,203 | $ 7,583 | $ 4,157 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 49,539 | $ 24,651 | $ 162,722 | $ 72,571 |
Available-for-sale securities: | ||||
Unrealized holding losses arising during period, net | (413) | (1,281) | (1,474) | (22) |
Reclassification adjustment for gains recognized in net income, net of losses | (5) | (409) | (52) | (740) |
Income tax effect | 100 | 626 | 356 | 283 |
Total other comprehensive loss | (318) | (1,064) | (1,170) | (479) |
Comprehensive income | 49,221 | 23,587 | 161,552 | 72,092 |
Comprehensive (income) loss attributable to noncontrolling interests | (104) | 4,086 | 637 | 6,192 |
Comprehensive income attributable to Nelnet, Inc. | $ 49,117 | $ 27,673 | $ 162,189 | $ 78,284 |
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 | 12,652 | 12,652 | ||||||
Net income (loss) | 72,571 | 78,763 | (6,192) | |||||
Other comprehensive loss | (479) | (479) | ||||||
Distribution to noncontrolling interests | (515) | (515) | ||||||
Cash dividend on Class A and Class B common stock | (11,803) | (11,803) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 161,356 | |||||||
Issuance of common stock, net of forfeitures | 3,083 | $ 2 | 3,081 | |||||
Compensation expense for stock based awards | 2,170 | 2,170 | ||||||
Repurchase of common stock (in shares) | (415,777) | |||||||
Repurchase of common stock | (18,195) | $ (4) | (5,305) | (12,886) | ||||
Balance (in shares) at Jun. 30, 2017 | 0 | 30,373,691 | 11,476,932 | |||||
Balance at Jun. 30, 2017 | 2,130,409 | $ 0 | $ 304 | $ 115 | 366 | 2,110,158 | 4,251 | 15,215 |
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] | ||||||||
Issuance of noncontrolling interests | 26 | 26 | ||||||
Net income (loss) | 24,651 | 28,737 | (4,086) | |||||
Other comprehensive loss | (1,064) | (1,064) | ||||||
Distribution to noncontrolling interests | (205) | (205) | ||||||
Cash dividend on Class A and Class B common stock | (5,907) | (5,907) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 17,567 | |||||||
Issuance of common stock, net of forfeitures | 992 | $ 0 | 992 | |||||
Compensation expense for stock based awards | 1,075 | 1,075 | ||||||
Repurchase of common stock (in shares) | (384,061) | |||||||
Repurchase of common stock | (16,826) | $ (3) | (3,937) | (12,886) | ||||
Balance (in shares) at Jun. 30, 2017 | 0 | 30,373,691 | 11,476,932 | |||||
Balance at Jun. 30, 2017 | 2,130,409 | $ 0 | $ 304 | $ 115 | 366 | 2,110,158 | 4,251 | 15,215 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
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 | 521 | 521 | ||||||
Net income (loss) | 162,722 | 163,359 | (637) | |||||
Other comprehensive loss | (1,170) | (1,170) | ||||||
Distribution to noncontrolling interests | (256) | (256) | ||||||
Cash dividend on Class A and Class B common stock | (13,014) | (13,014) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 305,279 | |||||||
Issuance of common stock, net of forfeitures | 4,085 | $ 3 | 4,082 | |||||
Compensation expense for stock based awards | 2,593 | 2,593 | ||||||
Repurchase of common stock (in shares) | (315,794) | |||||||
Repurchase of common stock | (16,328) | $ (3) | (4,610) | (11,715) | ||||
Acquisition of noncontrolling interest | (19,101) | (13,449) | (5,652) | |||||
Balance (in shares) at Jun. 30, 2018 | 0 | 29,331,002 | 11,468,587 | |||||
Balance at Jun. 30, 2018 | 2,286,703 | $ 0 | $ 293 | $ 115 | 2,586 | 2,271,171 | 2,704 | 9,834 |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 495 | 495 | ||||||
Net income (loss) | 49,539 | 49,435 | 104 | |||||
Other comprehensive loss | (318) | (318) | ||||||
Distribution to noncontrolling interests | (238) | (238) | ||||||
Cash dividend on Class A and Class B common stock | (6,508) | (6,508) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 134,933 | |||||||
Issuance of common stock, net of forfeitures | 1,911 | $ 1 | 1,910 | |||||
Compensation expense for stock based awards | 1,506 | 1,506 | ||||||
Repurchase of common stock (in shares) | (93,620) | |||||||
Repurchase of common stock | (4,910) | $ (1) | (1,278) | (3,631) | ||||
Balance (in shares) at Jun. 30, 2018 | 0 | 29,331,002 | 11,468,587 | |||||
Balance at Jun. 30, 2018 | $ 2,286,703 | $ 0 | $ 293 | $ 115 | $ 2,586 | $ 2,271,171 | $ 2,704 | $ 9,834 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common Class A [Member] | ||||
Dividends paid per common share (in dollars per share) | $ 0.16 | $ 0.14 | $ 0.32 | $ 0.28 |
Common Class B [Member] | ||||
Dividends paid per common share (in dollars per share) | $ 0.16 | $ 0.14 | $ 0.32 | $ 0.28 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) attributable to Nelnet, Inc. | $ 163,359 | $ 78,763 |
Net loss attributable to noncontrolling interests | (637) | (6,192) |
Net income (loss) | 162,722 | 72,571 |
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 | 89,225 | 66,805 |
Loan discount accretion | (21,799) | (22,934) |
Provision for loan losses | 7,500 | 4,000 |
Derivative market value adjustment | (55,135) | (951) |
Unrealized foreign currency transaction adjustment | 0 | 31,951 |
Proceeds from clearinghouse - initial and variation margin, net | 40,261 | 51,516 |
Gain from debt repurchases | (359) | (5,421) |
Gain from equity securities, net of losses | (7,759) | 0 |
Deferred income tax expense (benefit) | 21,294 | (15,249) |
Non-cash compensation expense | 2,735 | 2,260 |
Other | 2,741 | 2,577 |
Increase in loan accrued interest receivable | (160,698) | (4,470) |
Decrease (increase) in accounts receivable | 2,400 | (12,096) |
Decrease (increase) in other assets | 54,249 | (6,334) |
Increase in accrued interest payable | 13,187 | 1,387 |
Decrease in other liabilities | (46,572) | (7,891) |
(Decrease) increase in due to customers | (32,361) | 17,198 |
Net cash provided by operating activities | 71,631 | 174,919 |
Cash flows from investing activities, net of acquisition: | ||
Purchases of loans | (2,593,232) | (127,444) |
Net proceeds from loan repayments, claims, capitalized interest, and other | 1,694,829 | 1,808,864 |
Proceeds from sale of loans | 1,392 | 0 |
Purchases of available-for-sale securities | (38,064) | (77,118) |
Proceeds from sales of available-for-sale securities | 31,785 | 66,492 |
Purchases of investments and issuance of notes receivable | (24,224) | (6,530) |
Proceeds from investments and notes receivable | 16,092 | 4,452 |
Purchases of property and equipment | (65,009) | (70,814) |
Business acquisition, net of cash acquired | (109,152) | 0 |
Net cash (used in) provided by investing activities | (1,085,583) | 1,597,902 |
Cash flows from financing activities: | ||
Payments on bonds and notes payable | (1,643,650) | (2,549,189) |
Proceeds from issuance of bonds and notes payable | 2,727,412 | 612,279 |
Payments of debt issuance costs | (5,445) | (2,256) |
Dividends paid | (13,014) | (11,803) |
Repurchases of common stock | (16,328) | (18,195) |
Proceeds from issuance of common stock | 501 | 221 |
Acquisition of noncontrolling interest | (13,449) | 0 |
Issuance of noncontrolling interests | 468 | 12,600 |
Distribution to noncontrolling interests | (256) | (515) |
Net cash provided by (used in) financing activities | 1,036,239 | (1,956,858) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 22,287 | (184,037) |
Cash, cash equivalents, and restricted cash, beginning of period | 942,066 | 1,170,317 |
Cash, cash equivalents, and restricted cash, end of period | 964,353 | 986,280 |
Supplemental disclosures of cash flow information: | ||
Cash disbursements made for interest | 259,980 | 183,821 |
Cash (refunds received) disbursements made for income taxes, net | $ (7,290) | $ 46,193 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows Cash, Cash Equivalents And Restricted Cash Reconciliation - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Cash Flows [Abstract] | ||||
Total cash and cash equivalents | $ 67,867 | $ 66,752 | $ 69,239 | $ 69,654 |
Restricted cash | 741,726 | 688,193 | 780,141 | 980,961 |
Restricted cash – due to customers | 154,760 | 187,121 | 136,900 | 119,702 |
Cash, cash equivalents, and restricted cash | $ 964,353 | $ 942,066 | $ 986,280 | $ 1,170,317 |
Basis of Financial Reporting
Basis of Financial Reporting | 6 Months Ended |
Jun. 30, 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 June 30, 2018 and for the three and six months ended June 30, 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 and six months ended June 30, 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 During the first quarter of 2018, the Company changed the name of the Tuition Payment Processing and Campus Commerce operating segment to Education Technology, Services, and Payment Processing 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, statements of income, and statements of cash flows 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." • Reclassifying consumer loan activity on the statements of income, which was previously included in "investment interest" and "other expenses" to "loan interest" and "provision for loan losses" and "loan servicing fees," respectively. Accounting Standards Adopted in 2018 In the first quarter of 2018, the Company adopted the following new accounting standards and other 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 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 fee-based Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company presents the payment services revenue gross with the direct costs to provide these services presented separately. The Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns. The majority of the Company's revenue earned in its non-fee-based Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new standard. 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 June 30, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 34,224 9,256 43,480 Cost to provide education technology, services, and payment processing services — 9,256 9,256 (a) Six months ended June 30, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 77,844 21,660 99,504 Cost to provide education technology, services, and payment processing services — 21,660 21,660 (a) (a) In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassified other direct costs to provide education technology, services, and payment processing services 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. 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 guidance requires that the statement of cash flows present the change during the period in 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 amounts on the consolidated statements of cash flows as follows: Six months ended June 30, 2017 As previously reported Impact of adoption As restated Increase in due to customers $ — 17,198 17,198 Proceeds from clearinghouse - initial and variation margin, net 25,927 25,589 51,516 Net cash provided by operating activities 132,132 42,787 174,919 Decrease in restricted cash 226,409 (226,409 ) — Net cash provided by investing activities 1,824,311 (226,409 ) 1,597,902 |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices Except for the changes below, no significant changes have been made to the Company’s significant accounting policies and practices disclosed in note 3, Summary of Significant Accounting Policies and Practices, in the 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 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, number of borrowers serviced for each customer, or number of transactions. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services, including, but not limited to, (i) application processing, (ii) monthly servicing, (iii) conversion processing, and (iv) fulfillment 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 activities are 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. 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Government servicing - Nelnet $ 39,781 39,809 79,107 78,815 Government servicing - Great Lakes (a) 45,682 — 76,437 — FFELP servicing 9,147 3,636 16,838 7,713 Private education and consumer loan servicing 8,882 7,121 21,983 12,938 Software services 8,671 4,326 16,260 8,663 Outsourced services revenue and other 2,382 2,007 4,062 2,999 Loan servicing and systems revenue $ 114,545 56,899 214,687 111,128 (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. • 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. • Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is 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 provided to the higher education market 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. The following table provides disaggregated revenue by service offering: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Tuition payment plan services $ 20,417 18,871 43,404 40,658 Payment processing 16,026 13,885 35,952 32,831 Education technology and services 12,018 10,825 28,993 25,973 Other 281 (101 ) 614 42 Education technology, services, and payment processing revenue $ 48,742 43,480 108,963 99,504 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 items 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. Revenue received or receivable in advance of the delivery of services is included in deferred revenue. 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Internet $ 5,395 2,569 10,091 4,773 Television 3,083 1,760 5,865 3,383 Telephone 1,825 1,344 3,514 2,605 Other 17 46 39 65 Communications revenue $ 10,320 5,719 19,509 10,826 Residential revenue $ 7,727 3,820 14,472 7,172 Business revenue 2,535 1,814 4,917 3,510 Other revenue 58 85 120 144 Communications revenue $ 10,320 5,719 19,509 10,826 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 items 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Realized and unrealized gains on investments, net $ 1,136 1,302 10,217 1,618 Borrower late fee income 2,758 3,048 5,741 6,368 Investment advisory fees 1,394 2,294 2,986 5,810 Management fee revenue 1,756 — 2,917 — Peterson's revenue — 3,043 — 5,880 Other 2,536 2,798 5,915 5,442 Other income $ 9,580 12,485 27,776 25,118 • 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 liabilities from contracts with customers: As of June 30, 2018 As of December 31, 2017 Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets $ 25,660 32,276 Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 22,715 24,268 32,276 33,141 Deferral of revenue 35,502 24,813 52,552 40,731 Recognition of unearned revenue (32,509 ) (23,070 ) (59,311 ) (47,947 ) Other (48 ) (57 ) 143 29 Balance, end of period $ 25,660 25,954 25,660 25,954 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2018 December 31, 2017 Federally insured student loans: Stafford and other $ 4,879,259 4,418,881 Consolidation 17,715,531 17,302,725 Total 22,594,790 21,721,606 Private education loans 180,935 212,160 Consumer loans 80,560 62,111 22,856,285 21,995,877 Loan discount, net of unamortized loan premiums and deferred origination costs (73,831 ) (113,695 ) Non-accretable discount (18,370 ) (13,085 ) Allowance for loan losses: Federally insured loans (37,263 ) (38,706 ) Private education loans (11,664 ) (12,629 ) Consumer loans (4,788 ) (3,255 ) $ 22,710,369 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 June 30, 2018 Balance at beginning of period Provision for loan losses Charge-offs Recoveries Other Balance at end of period Federally insured loans $ 38,374 2,000 (3,111 ) — — 37,263 Private education loans 12,255 — (773 ) 182 — 11,664 Consumer loans 4,665 1,500 (1,378 ) 1 — 4,788 $ 55,294 3,500 (5,262 ) 183 — 53,715 Three months ended June 30, 2017 Federally insured loans $ 36,687 2,000 (2,825 ) — — 35,862 Private education loans 13,839 — (288 ) 245 50 13,846 Consumer loans — 1,000 — — — 1,000 $ 50,526 3,000 (3,113 ) 245 50 50,708 Six months ended June 30, 2018 Federally insured loans $ 38,706 4,000 (6,443 ) — 1,000 37,263 Private education loans 12,629 — (1,312 ) 347 — 11,664 Consumer loans 3,255 3,500 (1,973 ) 6 — 4,788 $ 54,590 7,500 (9,728 ) 353 1,000 53,715 Six months ended June 30, 2017 Federally insured loans $ 37,268 4,000 (5,406 ) — — 35,862 Private education loans 14,574 (1,000 ) (370 ) 442 200 13,846 Consumer loans — 1,000 — — — 1,000 $ 51,842 4,000 (5,776 ) 442 200 50,708 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 June 30, 2018 As of December 31, 2017 As of June 30, 2017 Federally insured loans: Loans in-school/grace/deferment $ 1,349,739 $ 1,260,394 $ 1,454,802 Loans in forbearance 1,633,600 1,774,405 2,065,167 Loans in repayment status: Loans current 17,211,088 87.8 % 16,477,004 88.2 % 17,106,921 87.2 % Loans delinquent 31-60 days 686,083 3.5 682,586 3.7 743,738 3.8 Loans delinquent 61-90 days 500,480 2.6 374,534 2.0 479,552 2.4 Loans delinquent 91-120 days 261,612 1.3 287,922 1.5 267,139 1.4 Loans delinquent 121-270 days 751,526 3.8 629,480 3.4 772,875 3.9 Loans delinquent 271 days or greater 200,662 1.0 235,281 1.2 257,213 1.3 Total loans in repayment 19,611,451 100.0 % 18,686,807 100.0 % 19,627,438 100.0 % Total federally insured loans $ 22,594,790 $ 21,721,606 $ 23,147,407 Private education loans: Loans in-school/grace/deferment $ 4,194 $ 6,053 $ 32,016 Loans in forbearance 2,012 2,237 1,814 Loans in repayment status: Loans current 168,093 96.2 % 196,720 96.5 % 202,155 96.7 % Loans delinquent 31-60 days 1,498 0.9 1,867 0.9 2,066 1.0 Loans delinquent 61-90 days 1,235 0.7 1,052 0.5 1,323 0.6 Loans delinquent 91 days or greater 3,903 2.2 4,231 2.1 3,519 1.7 Total loans in repayment 174,729 100.0 % 203,870 100.0 % 209,063 100.0 % Total private education loans $ 180,935 $ 212,160 $ 242,893 |
Bonds and Notes Payable
Bonds and Notes Payable | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ 19,913,724 2.40% - 4.04% 4/25/24 - 7/26/66 Bonds and notes based on auction 765,548 2.45% - 3.16% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 20,679,272 FFELP warehouse facilities 1,697,691 2.32% / 2.35% 11/19/19 / 5/31/21 Variable-rate bonds and notes issued in private education loan asset-backed securitization 60,153 3.84% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 70,827 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 170,000 3.55% 6/22/23 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.71% 9/15/61 Other borrowings 111,596 2.79% - 5.22% 7/9/18 - 12/15/45 22,809,920 Discount on bonds and notes payable and debt issuance costs (341,556 ) Total $ 22,468,364 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 Federal Family Education Loan Program (the "FFEL Program" or "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 June 30, 2018 , the Company had two FFELP warehouse facilities as summarized below. NFSLW-I (a) NHELP-II (b) Total Maximum financing amount $ 1,325,000 500,000 1,825,000 Amount outstanding 1,245,448 452,243 1,697,691 Amount available $ 79,552 47,757 127,309 Expiration of liquidity provisions September 20, 2019 May 31, 2019 Final maturity date November 19, 2019 May 31, 2021 Maximum advance rates 92 - 98% 85 - 95% Minimum advance rates 84 - 90% 85 - 95% Advanced as equity support $ 47,126 37,251 84,377 (a) On April 24, 2018, the Company increased the maximum financing amount for this warehouse facility from $500.0 million to $1.25 billion . On May 3, 2018, the Company temporarily increased the maximum financing amount for this warehouse facility an additional $75.0 million to $1.325 billion until September 30, 2018. (b) On April 24, 2018, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to May 31, 2019 and changed the final maturity date to May 31, 2021. Asset-Backed Securitizations The following table summarizes the asset-backed securitization transactions completed during the first six months of 2018 . NSLT 2018-1 NSLT 2018-2 Total Class A-1 Notes Class A-2 Notes Total Date securities issued 3/29/18 3/29/18 6/7/18 Total principal amount $ 98,000 375,750 473,750 509,800 983,550 Cost of funds 1-month LIBOR plus 0.32% 1-month LIBOR plus 0.76% 1-month LIBOR plus 0.65% Final maturity date 5/25/66 5/25/66 7/26/66 Unsecured Line of Credit On June 22, 2018, the Company amended its $350.0 million unsecured line of credit. The following provisions were modified under the amendment: • The maturity date was extended from December 12, 2021 to June 22, 2023. • The definition of the Company's line of business was expanded and other terms were modified to allow the formation or acquisition of a chartered bank subsidiary. • The definition for permitted acquisitions was revised to increase the aggregate amount of consideration that may be paid for the acquisition in any fiscal year of a business or businesses not in the Company's defined line of business. • The provisions for permitted investments were expanded to allow (i) a one-time, initial capital contribution of up to $150.0 million by the Company in connection with the formation or acquisition of a chartered bank subsidiary, and (ii) investments in pools of consumer loans. • The amount of loans not originated under the FFEL Program that the Company is permitted to own was increased from $500.0 million to $850.0 million . The facility size of $350.0 million and the cost of funds did not change as part of the amendment. As of June 30, 2018 , $170.0 million was outstanding under the line of credit and $180.0 million was available for future use. Debt Repurchases The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain from debt repurchases" on the Company's consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Three months ended June 30, 2018 June 30, 2017 Asset-backed securities $ — — — 4,088 3,646 442 Six months ended June 30, 2018 June 30, 2017 Asset-backed securities $ 12,905 12,546 359 4,088 3,085 1,003 Unsecured debt - Hybrid Securities — — — 29,658 25,240 4,418 $ 12,905 12,546 359 33,746 28,325 5,421 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 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. In addition, the Company previously used derivative financial instruments to manage foreign currency exchange risk associated with student loan asset-backed notes that were denominated in Euros prior to a remarketing of such notes in October 2017. 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 June 30, 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 June 30, 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 2020 1,000,000 — 2021 250,000 — 2022 2,000,000 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 $ 11,750,000 11,250,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2018 and December 31, 2017 was one-month LIBOR plus 10.5 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 As of December 31, 2017 Interest rate swap option - floor income hedge $ 1,231 543 — — Interest rate caps 723 275 — — Interest rate swaps - hybrid debt hedges — — 5,053 7,063 Total $ 1,954 818 5,053 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 June 30, 2018 $ 1,954 — — 1,954 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 June 30, 2018 $ (5,053 ) — 7,520 2,467 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Settlements: 1:3 basis swaps $ 2,979 (362 ) 1,315 336 Interest rate swaps - floor income hedges 19,074 2,114 27,664 1,994 Interest rate swaps - hybrid debt hedges (125 ) (198 ) (285 ) (402 ) Cross-currency interest rate swap — (1,917 ) — (3,669 ) Total settlements - income (expense) 21,928 (363 ) 28,694 (1,741 ) Change in fair value: 1:3 basis swaps (2,522 ) (8,841 ) 10,775 (11,416 ) Interest rate swaps - floor income hedges (2,766 ) (17,810 ) 41,434 (13,485 ) Interest rate swap option - floor income hedge (279 ) (828 ) 468 (1,712 ) Interest rate caps 122 (311 ) 448 (833 ) Interest rate swaps - hybrid debt hedges 548 (453 ) 2,010 (34 ) Cross-currency interest rate swap — 27,639 — 28,574 Other — 318 — (143 ) Total change in fair value - income (expense) (4,897 ) (286 ) 55,135 951 Re-measurement of Euro Notes (foreign currency transaction adjustment) — (27,261 ) — (31,951 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 17,031 (27,910 ) 83,829 (32,741 ) |
Investments and Notes Receivabl
Investments and Notes Receivable | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments and Notes Receivable | Investments and Notes Receivable A summary of the Company's investments and notes receivable follows: As of June 30, 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) $ 78,274 3,714 (208 ) (b) 81,780 Equity securities 11,638 4,290 (355 ) 15,573 Total investments (at fair value) $ 89,912 8,004 (563 ) 97,353 Other Investments and Notes Receivable (not measured at fair value): Venture capital: Measurement alternative (c) 69,961 Equity method 14,499 Other 783 Total venture capital 85,243 Real estate: Equity method 19,896 Other 29,724 Total real estate 49,620 Notes receivable 16,373 Tax liens and affordable housing 8,058 Total investments and notes receivable (not measured at fair value) 159,294 Total investments and notes receivable $ 256,647 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 June 30, 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 June 30, 2018 , the aggregate fair value of available-for-sale investments with unrealized losses was $17.9 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 June 30, 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 and six months ended June 30, 2018 , the Company recorded no impairments and upward adjustments of $0.3 million and $7.2 million , respectively, on these investments. The impacts related to the adjustments to these investments are included in "other income" in the consolidated statements of income. The upward adjustments were made as a result of observable price changes. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 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 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 a $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. During the three months ended June 30, 2018, the Company recognized certain adjustments to the provisional amounts recorded on the acquisition date that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was a decrease to goodwill, and the adjustments had no impact on operating results. 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 35,919 Other assets 14,018 Intangible assets 75,329 Excess cost over fair value of net assets acquired (goodwill) 15,043 Other liabilities (54,865 ) Net assets acquired $ 136,551 The $75.3 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 $70.2 million ( 4 -year average useful life) and a trade name of $5.1 million ( 7 -year useful life). The $15.0 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 Great Lakes assets acquired and liabilities assumed were recorded by the Company at their respective fair values at the date of acquisition, and Great Lakes' operating results from the date of acquisition forward are included in the Company's consolidated operating results. During the second quarter of 2018, the Company converted Great Lakes' FFELP and private education loan servicing volume to Nelnet Servicing's servicing platform. In addition, the Company began to combine certain shared services and overhead functions between Great Lakes and the Company. As a result of these operational changes, the results of operations for the three and six months ended June 30, 2018 attributed to Great Lakes since the acquisition are not provided since the results of the Great Lakes legal entity are no longer reflective of the entity acquired. 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Loan servicing and systems revenue $ 114,545 115,559 234,733 231,708 Net income attributable to Nelnet, Inc. $ 49,435 29,174 164,856 86,729 Net income per share - basic and diluted $ 1.21 0.69 4.03 2.05 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following: Weighted average remaining useful life as of June 30, 2018 (months) As of As of June 30, December 31, 2018 2017 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $22,413 and $12,715, respectively) 75 $ 84,679 24,168 Trade names (net of accumulated amortization of $4,130 and $2,498, respectively) 86 12,563 9,074 Computer software (net of accumulated amortization of $12,633 and $10,013, respectively) 18 5,038 4,958 Covenants not to compete (net of accumulated amortization of $145 and $127, respectively) 71 209 227 Total - amortizable intangible assets, net 74 $ 102,489 38,427 The Company recorded amortization expense on its intangible assets of $7.8 million and $2.4 million during the three months ended June 30, 2018 and 2017 , respectively, and $14.0 million and $4.7 million during the six months ended June 30, 2018 and 2017 , respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2018 , the Company estimates it will record amortization expense as follows: 2018 (July 1 - December 31) $ 15,336 2019 27,500 2020 24,301 2021 14,481 2022 4,671 2023 and thereafter 16,200 $ 102,489 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 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 Great Lakes purchase price allocation adjustment (4,654 ) — — — — (4,654 ) Balance as of June 30, 2018 $ 23,639 67,168 21,112 41,883 — 153,802 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 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 June 30, 2018 December 31, 2017 Non-communications: Computer equipment and software 1-5 years $ 142,559 124,708 Building and building improvements 5-48 years 47,257 24,003 Office furniture and equipment 1-10 years 21,737 15,210 Leasehold improvements 1-15 years 9,271 7,759 Transportation equipment 4-10 years 4,425 3,813 Land — 3,328 2,628 Construction in progress — 4,708 4,127 233,285 182,248 Accumulated depreciation - non-communications (111,179 ) (105,017 ) Non-communications, net property and equipment 122,106 77,231 Communications: Network plant and fiber 5-15 years 175,192 138,122 Customer located property 5-10 years 17,730 13,767 Central office 5-15 years 13,078 10,754 Transportation equipment 4-10 years 5,990 5,759 Computer equipment and software 1-5 years 4,801 3,790 Other 1-39 years 2,631 2,516 Land — 70 70 Construction in progress — 11,994 11,620 231,486 186,398 Accumulated depreciation - communications (25,576 ) (15,578 ) Communications, net property and equipment 205,910 170,820 Total property and equipment, net $ 328,016 248,051 The Company recorded depreciation expense on its property and equipment of $13.7 million and $6.7 million during the three months ended June 30, 2018 and 2017 , respectively, and $26.0 million and $12.9 million during the six months ended June 30, 2018 and 2017 , respectively. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 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 June 30, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 48,860 575 49,435 28,457 280 28,737 Denominator: Weighted-average common shares outstanding - basic and diluted 40,411,359 475,258 40,886,617 41,913,990 412,550 42,326,540 Earnings per share - basic and diluted $ 1.21 1.21 1.21 0.68 0.68 0.68 Six months ended June 30, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 161,594 1,765 163,359 77,969 794 78,763 Denominator: Weighted-average common shares outstanding - basic and diluted 40,476,254 442,142 40,918,396 41,882,702 426,593 42,309,295 Earnings per share - basic and diluted $ 3.99 3.99 3.99 1.86 1.86 1.86 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 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. As discussed in note 1 above, the names of certain operating segments were changed during the first quarter of 2018. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended June 30, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 293 748 1 226,509 6,062 (4,425 ) 229,189 Interest expense — — 3,303 169,623 2,949 (4,425 ) 171,450 Net interest income 293 748 (3,302 ) 56,886 3,113 — 57,739 Less provision for loan losses — — — 3,500 — — 3,500 Net interest income (loss) after provision for loan losses 293 748 (3,302 ) 53,386 3,113 — 54,239 Other income: Loan servicing and systems revenue 114,545 — — — — — 114,545 Intersegment servicing revenue 11,609 — — — — (11,609 ) — Education technology, services, and payment processing revenue — 48,742 — — — — 48,742 Communications revenue — — 10,320 — — — 10,320 Other income 1,956 — — 2,772 4,851 — 9,580 Gain from debt repurchases — — — — — — — Derivative settlements, net — — — 22,053 (125 ) — 21,928 Derivative market value and foreign currency transaction adjustments, net — — — (5,446 ) 548 — (4,897 ) Total other income 128,110 48,742 10,320 19,379 5,274 (11,609 ) 200,218 Cost of services: Cost to provide education technology, services, and payment processing services — 11,317 — — — — 11,317 Cost to provide communications services — — 3,865 — — — 3,865 Total cost of services — 11,317 3,865 — — — 15,182 Operating expenses: Salaries and benefits 69,434 19,513 4,668 377 17,126 — 111,118 Depreciation and amortization 8,212 3,286 5,497 — 4,500 — 21,494 Loan servicing fees — — — 3,204 — — 3,204 Other expenses 17,490 5,383 3,023 1,288 13,225 — 40,409 Intersegment expenses, net 15,583 2,570 599 11,700 (18,842 ) (11,609 ) — Total operating expenses 110,719 30,752 13,787 16,569 16,009 (11,609 ) 176,225 Income (loss) before income taxes 17,684 7,421 (10,634 ) 56,196 (7,622 ) — 63,050 Income tax (expense) benefit (a) (4,245 ) (1,781 ) 2,552 (13,487 ) 3,451 — (13,511 ) Net income (loss) 13,439 5,640 (8,082 ) 42,709 (4,171 ) — 49,539 Net income attributable to noncontrolling interests — — — — (104 ) — (104 ) Net income (loss) attributable to Nelnet, Inc. $ 13,439 5,640 (8,082 ) 42,709 (4,275 ) — 49,435 Total assets as of June 30, 2018 $ 253,140 235,128 252,311 24,092,875 774,086 (398,297 ) 25,209,244 (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 June 30, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 120 3 1 191,368 3,362 (1,776 ) 193,078 Interest expense — — 1,104 113,073 835 (1,776 ) 113,236 Net interest income 120 3 (1,103 ) 78,295 2,527 — 79,842 Less provision for loan losses — — — 3,000 — — 3,000 Net interest income (loss) after provision for loan losses 120 3 (1,103 ) 75,295 2,527 — 76,842 Other income: Loan servicing and systems revenue 56,899 — — — — — 56,899 Intersegment servicing revenue 9,952 — — — — (9,952 ) — Education technology, services, and payment processing revenue — 43,480 — — — — 43,480 Communications revenue — — 5,719 — — — 5,719 Other income — — — 3,057 9,429 — 12,485 Gain from debt repurchases — — — 442 — — 442 Derivative settlements, net — — — (165 ) (198 ) — (363 ) Derivative market value and foreign currency transaction adjustments, net — — — (27,412 ) (135 ) — (27,547 ) Total other income 66,851 43,480 5,719 (24,078 ) 9,096 (9,952 ) 91,115 Cost of services: Cost to provide education technology, services, and payment processing services — 9,515 — — — — 9,515 Cost to provide communications services — — 2,203 — — — 2,203 Total cost of services — 9,515 2,203 — — — 11,718 Operating expenses: Salaries and benefits 40,506 16,901 3,411 363 13,447 — 74,628 Depreciation and amortization 546 2,346 2,600 — 3,547 — 9,038 Loan servicing fees — — — 5,628 — — 5,628 Other expenses 8,879 4,594 1,772 820 10,195 — 26,262 Intersegment expenses, net 8,324 2,136 496 10,043 (11,046 ) (9,952 ) — Total operating expenses 58,255 25,977 8,279 16,854 16,143 (9,952 ) 115,556 Income (loss) before income taxes 8,716 7,991 (5,866 ) 34,363 (4,520 ) — 40,683 Income tax (expense) benefit (4,918 ) (3,037 ) 2,229 (13,057 ) 2,751 — (16,032 ) Net income (loss) 3,798 4,954 (3,637 ) 21,306 (1,769 ) — 24,651 Net loss (income) attributable to noncontrolling interests 4,226 — — — (141 ) — 4,086 Net income (loss) attributable to Nelnet, Inc. $ 8,024 4,954 (3,637 ) 21,306 (1,910 ) — 28,737 Total assets as of June 30, 2017 $ 99,841 230,145 150,809 24,433,881 684,840 (276,429 ) 25,323,087 Six months ended June 30, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Eliminations Total Total interest income $ 550 1,413 2 426,843 10,813 (7,574 ) 432,046 Interest expense — — 5,812 303,854 4,907 (7,574 ) 306,999 Net interest income 550 1,413 (5,810 ) 122,989 5,906 — 125,047 Less provision for loan losses — — — 7,500 — — 7,500 Net interest income (loss) after provision for loan losses 550 1,413 (5,810 ) 115,489 5,906 — 117,547 Other income: Loan servicing and systems revenue 214,687 — — — — — 214,687 Intersegment servicing revenue 22,380 — — — — (22,380 ) — Education technology, services, and payment processing revenue — 108,963 — — — — 108,963 Communications revenue — — 19,509 — — — 19,509 Other income 3,248 — — 5,765 18,765 — 27,776 Gain from debt repurchases — — — 359 — — 359 Derivative settlements, net — — — 28,979 (285 ) — 28,694 Derivative market value and foreign currency transaction adjustments, net — — 53,125 2,010 — 55,135 Total other income 240,315 108,963 19,509 88,228 20,490 (22,380 ) 455,123 Cost of services: Cost to provide education technology, services, and payment processing services — 25,000 — — — — 25,000 Cost to provide communications services — — 7,583 — — — 7,583 Total cost of services — 25,000 7,583 — — — 32,583 Operating expenses: Salaries and benefits 127,971 38,580 8,730 759 31,720 — 207,760 Depreciation and amortization 14,280 6,627 10,418 — 8,626 — 39,951 Loan servicing fees — — — 6,341 — — 6,341 Other expenses 31,953 10,006 5,660 2,137 24,070 — 73,826 Intersegment expenses, net 28,939 5,136 1,204 22,565 (35,464 ) (22,380 ) — Total operating expenses 203,143 60,349 26,012 31,802 28,952 (22,380 ) 327,878 Income (loss) before income taxes 37,722 25,027 (19,896 ) 171,915 (2,556 ) — 212,209 Income tax (expense) benefit (a) (9,247 ) (6,006 ) 4,775 (41,260 ) 2,251 — (49,487 ) Net income (loss) 28,475 19,021 (15,121 ) 130,655 (305 ) — 162,722 Net loss (income) attributable to noncontrolling interests 808 — — — (172 ) — 637 Net income (loss) attributable to Nelnet, Inc. $ 29,283 19,021 (15,121 ) 130,655 (477 ) — 163,359 Total assets as of June 30, 2018 $ 253,140 235,128 252,311 24,092,875 774,086 (398,297 ) 25,209,244 (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. Six months ended June 30, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Eliminations Total Total interest income $ 214 5 1 373,693 6,123 (3,135 ) 376,902 Interest expense — — 1,816 219,824 1,630 (3,135 ) 220,135 Net interest income 214 5 (1,815 ) 153,869 4,493 — 156,767 Less provision for loan losses — — — 4,000 — — 4,000 Net interest income (loss) after provision for loan losses 214 5 (1,815 ) 149,869 4,493 — 152,767 Other income: Loan servicing and systems revenue 111,128 — — — — — 111,128 Intersegment servicing revenue 20,275 — — — — (20,275 ) — Education technology, services, and payment processing revenue — 99,504 — — — — 99,504 Communications revenue — — 10,826 — — — 10,826 Other income — — — 6,399 18,719 — 25,118 Gain from debt repurchases — — — 981 4,440 — 5,421 Derivative settlements, net — — — (1,339 ) (402 ) — (1,741 ) Derivative market value and foreign currency transaction adjustments, net — — — (30,823 ) (177 ) — (31,000 ) Total other income 131,403 99,504 10,826 (24,782 ) 22,580 (20,275 ) 219,256 Cost of services: Cost to provide education technology, services, and payment processing services — 22,305 — — — — 22,305 Cost to provide communications services — — 4,157 — — — 4,157 Total cost of services — 22,305 4,157 — — — 26,462 Operating expenses: Salaries and benefits 78,497 33,553 6,390 763 27,287 — 146,491 Depreciation and amortization 1,095 4,737 4,735 — 7,069 — 17,636 Loan servicing fees — — — 11,653 — — 11,653 Other expenses 18,015 9,202 3,144 1,812 20,249 — 52,423 Intersegment expenses, net 15,722 4,210 1,002 20,455 (21,114 ) (20,275 ) — Total operating expenses 113,329 51,702 15,271 34,683 33,491 (20,275 ) 228,203 Income (loss) before income taxes 18,288 25,502 (10,417 ) 90,404 (6,418 ) — 117,358 Income tax (expense) benefit (9,473 ) (9,690 ) 3,959 (34,354 ) 4,772 — (44,787 ) Net income (loss) 8,815 15,812 (6,458 ) 56,050 (1,646 ) — 72,571 Net loss (income) attributable to noncontrolling interests 6,641 — — — (450 ) — 6,192 Net income (loss) attributable to Nelnet, Inc. $ 15,456 15,812 (6,458 ) 56,050 (2,096 ) — 78,763 Total assets as of June 30, 2017 $ 99,841 230,145 150,809 24,433,881 684,840 (276,429 ) 25,323,087 |
Major Customer
Major Customer | 6 Months Ended |
Jun. 30, 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 scheduled to expire on June 16, 2019. Revenue earned by Nelnet Servicing related to this contract was $39.8 million for each of the three months ended June 30, 2018 and 2017 , and $79.1 million and $78.8 million for the six months ended June 30, 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 scheduled to expire on June 16, 2019. Revenue earned by Great Lakes related to this contract was $45.7 million for the three months ended June 30, 2018, and $76.4 million for the period from February 7, 2018 to June 30, 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 | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2018 . As of June 30, 2018 Level 1 Level 2 Total Assets: Investments: Student loan and other asset-backed securities - available-for-sale $ — 81,673 81,673 Equity securities 2,789 — 2,789 Equity securities measured at net asset value (a) — — 12,784 Debt securities - available-for-sale 107 — 107 Total investments 2,896 81,673 97,353 Derivative instruments — 1,954 1,954 Total assets $ 2,896 83,627 99,307 Liabilities: Derivative instruments $ — 5,053 5,053 Total liabilities $ — 5,053 5,053 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 June 30, 2018 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 23,967,542 22,710,369 — — 23,967,542 Cash and cash equivalents 67,867 67,867 67,867 — — Investments (at fair value) 97,353 97,353 2,896 81,673 — Notes receivable 16,373 16,373 — 16,373 — Restricted cash 741,726 741,726 741,726 — — Restricted cash – due to customers 154,760 154,760 154,760 — — Accrued interest receivable 591,055 591,055 — 591,055 — Derivative instruments 1,954 1,954 — 1,954 — Financial liabilities: Bonds and notes payable 22,680,749 22,468,364 — 22,680,749 — Accrued interest payable 63,226 63,226 — 63,226 — Due to customers 154,760 154,760 154,760 — — Derivative instruments 5,053 5,053 — 5,053 — 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. |
Basis of Financial Reporting -
Basis of Financial Reporting - Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2018 and for the three and six months ended June 30, 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 and six months ended June 30, 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 standards and other 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 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 fee-based Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company presents the payment services revenue gross with the direct costs to provide these services presented separately. The Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns. The majority of the Company's revenue earned in its non-fee-based Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new standard. 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. 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 guidance requires that the statement of cash flows present the change during the period in 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. Revenue received or receivable in advance of the delivery of services is included in deferred revenue. Earned but unbilled usage-based services are recorded in accounts receivable. 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. 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. • 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. • Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is 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 provided to the higher education market 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. 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 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, number of borrowers serviced for each customer, or number of transactions. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services, including, but not limited to, (i) application processing, (ii) monthly servicing, (iii) conversion processing, and (iv) fulfillment 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 activities are 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. 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 25
Basis of Financial Reporting - Basis of Financial Reporting (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 34,224 9,256 43,480 Cost to provide education technology, services, and payment processing services — 9,256 9,256 (a) Six months ended June 30, 2017 As previously reported Impact of adoption As restated Education technology, services, and payment processing revenue $ 77,844 21,660 99,504 Cost to provide education technology, services, and payment processing services — 21,660 21,660 (a) (a) In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassified other direct costs to provide education technology, services, and payment processing services which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services." Adoption of this standard impacted the Company's previously reported amounts on the consolidated statements of cash flows as follows: Six months ended June 30, 2017 As previously reported Impact of adoption As restated Increase in due to customers $ — 17,198 17,198 Proceeds from clearinghouse - initial and variation margin, net 25,927 25,589 51,516 Net cash provided by operating activities 132,132 42,787 174,919 Decrease in restricted cash 226,409 (226,409 ) — Net cash provided by investing activities 1,824,311 (226,409 ) 1,597,902 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies and Practices (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue by service offering: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Government servicing - Nelnet $ 39,781 39,809 79,107 78,815 Government servicing - Great Lakes (a) 45,682 — 76,437 — FFELP servicing 9,147 3,636 16,838 7,713 Private education and consumer loan servicing 8,882 7,121 21,983 12,938 Software services 8,671 4,326 16,260 8,663 Outsourced services revenue and other 2,382 2,007 4,062 2,999 Loan servicing and systems revenue $ 114,545 56,899 214,687 111,128 (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. The following table provides disaggregated revenue by service offering: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Tuition payment plan services $ 20,417 18,871 43,404 40,658 Payment processing 16,026 13,885 35,952 32,831 Education technology and services 12,018 10,825 28,993 25,973 Other 281 (101 ) 614 42 Education technology, services, and payment processing revenue $ 48,742 43,480 108,963 99,504 The following table provides disaggregated revenue by service offering and customer type: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Internet $ 5,395 2,569 10,091 4,773 Television 3,083 1,760 5,865 3,383 Telephone 1,825 1,344 3,514 2,605 Other 17 46 39 65 Communications revenue $ 10,320 5,719 19,509 10,826 Residential revenue $ 7,727 3,820 14,472 7,172 Business revenue 2,535 1,814 4,917 3,510 Other revenue 58 85 120 144 Communications revenue $ 10,320 5,719 19,509 10,826 |
Schedule Of Other Income, By Component | The following table provides the components of "other income" on the consolidated statements of income: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Realized and unrealized gains on investments, net $ 1,136 1,302 10,217 1,618 Borrower late fee income 2,758 3,048 5,741 6,368 Investment advisory fees 1,394 2,294 2,986 5,810 Management fee revenue 1,756 — 2,917 — Peterson's revenue — 3,043 — 5,880 Other 2,536 2,798 5,915 5,442 Other income $ 9,580 12,485 27,776 25,118 |
Schedule of Liabilities from Contracts with Customers | Activity in the deferred revenue balance is shown below: Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Balance, beginning of period $ 22,715 24,268 32,276 33,141 Deferral of revenue 35,502 24,813 52,552 40,731 Recognition of unearned revenue (32,509 ) (23,070 ) (59,311 ) (47,947 ) Other (48 ) (57 ) 143 29 Balance, end of period $ 25,660 25,954 25,660 25,954 The following table provides information about liabilities from contracts with customers: As of June 30, 2018 As of December 31, 2017 Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets $ 25,660 32,276 |
Loans Receivable and Allowanc27
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans receivable consisted of the following: As of As of June 30, 2018 December 31, 2017 Federally insured student loans: Stafford and other $ 4,879,259 4,418,881 Consolidation 17,715,531 17,302,725 Total 22,594,790 21,721,606 Private education loans 180,935 212,160 Consumer loans 80,560 62,111 22,856,285 21,995,877 Loan discount, net of unamortized loan premiums and deferred origination costs (73,831 ) (113,695 ) Non-accretable discount (18,370 ) (13,085 ) Allowance for loan losses: Federally insured loans (37,263 ) (38,706 ) Private education loans (11,664 ) (12,629 ) Consumer loans (4,788 ) (3,255 ) $ 22,710,369 21,814,507 |
Allowance for Credit Losses on Financing Receivables | Activity in the allowance for loan losses is shown below. Three months ended June 30, 2018 Balance at beginning of period Provision for loan losses Charge-offs Recoveries Other Balance at end of period Federally insured loans $ 38,374 2,000 (3,111 ) — — 37,263 Private education loans 12,255 — (773 ) 182 — 11,664 Consumer loans 4,665 1,500 (1,378 ) 1 — 4,788 $ 55,294 3,500 (5,262 ) 183 — 53,715 Three months ended June 30, 2017 Federally insured loans $ 36,687 2,000 (2,825 ) — — 35,862 Private education loans 13,839 — (288 ) 245 50 13,846 Consumer loans — 1,000 — — — 1,000 $ 50,526 3,000 (3,113 ) 245 50 50,708 Six months ended June 30, 2018 Federally insured loans $ 38,706 4,000 (6,443 ) — 1,000 37,263 Private education loans 12,629 — (1,312 ) 347 — 11,664 Consumer loans 3,255 3,500 (1,973 ) 6 — 4,788 $ 54,590 7,500 (9,728 ) 353 1,000 53,715 Six months ended June 30, 2017 Federally insured loans $ 37,268 4,000 (5,406 ) — — 35,862 Private education loans 14,574 (1,000 ) (370 ) 442 200 13,846 Consumer loans — 1,000 — — — 1,000 $ 51,842 4,000 (5,776 ) 442 200 50,708 |
Financing Receivable Credit Quality Indicators | The table below shows the Company’s loan delinquency amounts for federally insured and private education loans. As of June 30, 2018 As of December 31, 2017 As of June 30, 2017 Federally insured loans: Loans in-school/grace/deferment $ 1,349,739 $ 1,260,394 $ 1,454,802 Loans in forbearance 1,633,600 1,774,405 2,065,167 Loans in repayment status: Loans current 17,211,088 87.8 % 16,477,004 88.2 % 17,106,921 87.2 % Loans delinquent 31-60 days 686,083 3.5 682,586 3.7 743,738 3.8 Loans delinquent 61-90 days 500,480 2.6 374,534 2.0 479,552 2.4 Loans delinquent 91-120 days 261,612 1.3 287,922 1.5 267,139 1.4 Loans delinquent 121-270 days 751,526 3.8 629,480 3.4 772,875 3.9 Loans delinquent 271 days or greater 200,662 1.0 235,281 1.2 257,213 1.3 Total loans in repayment 19,611,451 100.0 % 18,686,807 100.0 % 19,627,438 100.0 % Total federally insured loans $ 22,594,790 $ 21,721,606 $ 23,147,407 Private education loans: Loans in-school/grace/deferment $ 4,194 $ 6,053 $ 32,016 Loans in forbearance 2,012 2,237 1,814 Loans in repayment status: Loans current 168,093 96.2 % 196,720 96.5 % 202,155 96.7 % Loans delinquent 31-60 days 1,498 0.9 1,867 0.9 2,066 1.0 Loans delinquent 61-90 days 1,235 0.7 1,052 0.5 1,323 0.6 Loans delinquent 91 days or greater 3,903 2.2 4,231 2.1 3,519 1.7 Total loans in repayment 174,729 100.0 % 203,870 100.0 % 209,063 100.0 % Total private education loans $ 180,935 $ 212,160 $ 242,893 |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of June 30, 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 $ 19,913,724 2.40% - 4.04% 4/25/24 - 7/26/66 Bonds and notes based on auction 765,548 2.45% - 3.16% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 20,679,272 FFELP warehouse facilities 1,697,691 2.32% / 2.35% 11/19/19 / 5/31/21 Variable-rate bonds and notes issued in private education loan asset-backed securitization 60,153 3.84% 12/26/40 Fixed-rate bonds and notes issued in private education loan asset-backed securitization 70,827 3.60% / 5.35% 12/26/40 / 12/28/43 Unsecured line of credit 170,000 3.55% 6/22/23 Unsecured debt - Junior Subordinated Hybrid Securities 20,381 5.71% 9/15/61 Other borrowings 111,596 2.79% - 5.22% 7/9/18 - 12/15/45 22,809,920 Discount on bonds and notes payable and debt issuance costs (341,556 ) Total $ 22,468,364 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 June 30, 2018 , the Company had two FFELP warehouse facilities as summarized below. NFSLW-I (a) NHELP-II (b) Total Maximum financing amount $ 1,325,000 500,000 1,825,000 Amount outstanding 1,245,448 452,243 1,697,691 Amount available $ 79,552 47,757 127,309 Expiration of liquidity provisions September 20, 2019 May 31, 2019 Final maturity date November 19, 2019 May 31, 2021 Maximum advance rates 92 - 98% 85 - 95% Minimum advance rates 84 - 90% 85 - 95% Advanced as equity support $ 47,126 37,251 84,377 (a) On April 24, 2018, the Company increased the maximum financing amount for this warehouse facility from $500.0 million to $1.25 billion . On May 3, 2018, the Company temporarily increased the maximum financing amount for this warehouse facility an additional $75.0 million to $1.325 billion until September 30, 2018. (b) On April 24, 2018, the Company amended the agreement for this warehouse facility, which changed the expiration date for the liquidity provisions to May 31, 2019 and changed the final maturity date to May 31, 2021. |
Schedule of Asset-Backed Securitization | The following table summarizes the asset-backed securitization transactions completed during the first six months of 2018 . NSLT 2018-1 NSLT 2018-2 Total Class A-1 Notes Class A-2 Notes Total Date securities issued 3/29/18 3/29/18 6/7/18 Total principal amount $ 98,000 375,750 473,750 509,800 983,550 Cost of funds 1-month LIBOR plus 0.32% 1-month LIBOR plus 0.76% 1-month LIBOR plus 0.65% Final maturity date 5/25/66 5/25/66 7/26/66 |
Schedule of Repurchase of Debt | The following table summarizes the Company's repurchases of its own debt. Gains recorded by the Company from the repurchase of debt are included in "gain from debt repurchases" on the Company's consolidated statements of income. Par value Purchase price Gain Par value Purchase price Gain Three months ended June 30, 2018 June 30, 2017 Asset-backed securities $ — — — 4,088 3,646 442 Six months ended June 30, 2018 June 30, 2017 Asset-backed securities $ 12,905 12,546 359 4,088 3,085 1,003 Unsecured debt - Hybrid Securities — — — 29,658 25,240 4,418 $ 12,905 12,546 359 33,746 28,325 5,421 |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 2020 1,000,000 — 2021 250,000 — 2022 2,000,000 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 $ 11,750,000 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 June 30, 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 June 30, 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 June 30, 2018 As of December 31, 2017 As of June 30, 2018 As of December 31, 2017 Interest rate swap option - floor income hedge $ 1,231 543 — — Interest rate caps 723 275 — — Interest rate swaps - hybrid debt hedges — — 5,053 7,063 Total $ 1,954 818 5,053 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 June 30, 2018 $ 1,954 — — 1,954 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 June 30, 2018 $ (5,053 ) — 7,520 2,467 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Settlements: 1:3 basis swaps $ 2,979 (362 ) 1,315 336 Interest rate swaps - floor income hedges 19,074 2,114 27,664 1,994 Interest rate swaps - hybrid debt hedges (125 ) (198 ) (285 ) (402 ) Cross-currency interest rate swap — (1,917 ) — (3,669 ) Total settlements - income (expense) 21,928 (363 ) 28,694 (1,741 ) Change in fair value: 1:3 basis swaps (2,522 ) (8,841 ) 10,775 (11,416 ) Interest rate swaps - floor income hedges (2,766 ) (17,810 ) 41,434 (13,485 ) Interest rate swap option - floor income hedge (279 ) (828 ) 468 (1,712 ) Interest rate caps 122 (311 ) 448 (833 ) Interest rate swaps - hybrid debt hedges 548 (453 ) 2,010 (34 ) Cross-currency interest rate swap — 27,639 — 28,574 Other — 318 — (143 ) Total change in fair value - income (expense) (4,897 ) (286 ) 55,135 951 Re-measurement of Euro Notes (foreign currency transaction adjustment) — (27,261 ) — (31,951 ) Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) $ 17,031 (27,910 ) 83,829 (32,741 ) |
Investments and Notes Receiva30
Investments and Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Summary Investment Holdings | A summary of the Company's investments and notes receivable follows: As of June 30, 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) $ 78,274 3,714 (208 ) (b) 81,780 Equity securities 11,638 4,290 (355 ) 15,573 Total investments (at fair value) $ 89,912 8,004 (563 ) 97,353 Other Investments and Notes Receivable (not measured at fair value): Venture capital: Measurement alternative (c) 69,961 Equity method 14,499 Other 783 Total venture capital 85,243 Real estate: Equity method 19,896 Other 29,724 Total real estate 49,620 Notes receivable 16,373 Tax liens and affordable housing 8,058 Total investments and notes receivable (not measured at fair value) 159,294 Total investments and notes receivable $ 256,647 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 June 30, 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 June 30, 2018 , the aggregate fair value of available-for-sale investments with unrealized losses was $17.9 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 June 30, 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 and six months ended June 30, 2018 , the Company recorded no impairments and upward adjustments of $0.3 million and $7.2 million , respectively, on these investments. The impacts related to the adjustments to these investments are included in "other income" in the consolidated statements of income. The upward adjustments were made as a result of observable price changes. |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. During the three months ended June 30, 2018, the Company recognized certain adjustments to the provisional amounts recorded on the acquisition date that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was a decrease to goodwill, and the adjustments had no impact on operating results. 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 35,919 Other assets 14,018 Intangible assets 75,329 Excess cost over fair value of net assets acquired (goodwill) 15,043 Other liabilities (54,865 ) 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 June 30, Six months ended June 30, 2018 2017 2018 2017 Loan servicing and systems revenue $ 114,545 115,559 234,733 231,708 Net income attributable to Nelnet, Inc. $ 49,435 29,174 164,856 86,729 Net income per share - basic and diluted $ 1.21 0.69 4.03 2.05 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: Weighted average remaining useful life as of June 30, 2018 (months) As of As of June 30, December 31, 2018 2017 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $22,413 and $12,715, respectively) 75 $ 84,679 24,168 Trade names (net of accumulated amortization of $4,130 and $2,498, respectively) 86 12,563 9,074 Computer software (net of accumulated amortization of $12,633 and $10,013, respectively) 18 5,038 4,958 Covenants not to compete (net of accumulated amortization of $145 and $127, respectively) 71 209 227 Total - amortizable intangible assets, net 74 $ 102,489 38,427 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of June 30, 2018 , the Company estimates it will record amortization expense as follows: 2018 (July 1 - December 31) $ 15,336 2019 27,500 2020 24,301 2021 14,481 2022 4,671 2023 and thereafter 16,200 $ 102,489 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 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 Great Lakes purchase price allocation adjustment (4,654 ) — — — — (4,654 ) Balance as of June 30, 2018 $ 23,639 67,168 21,112 41,883 — 153,802 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: As of As of Useful life June 30, 2018 December 31, 2017 Non-communications: Computer equipment and software 1-5 years $ 142,559 124,708 Building and building improvements 5-48 years 47,257 24,003 Office furniture and equipment 1-10 years 21,737 15,210 Leasehold improvements 1-15 years 9,271 7,759 Transportation equipment 4-10 years 4,425 3,813 Land — 3,328 2,628 Construction in progress — 4,708 4,127 233,285 182,248 Accumulated depreciation - non-communications (111,179 ) (105,017 ) Non-communications, net property and equipment 122,106 77,231 Communications: Network plant and fiber 5-15 years 175,192 138,122 Customer located property 5-10 years 17,730 13,767 Central office 5-15 years 13,078 10,754 Transportation equipment 4-10 years 5,990 5,759 Computer equipment and software 1-5 years 4,801 3,790 Other 1-39 years 2,631 2,516 Land — 70 70 Construction in progress — 11,994 11,620 231,486 186,398 Accumulated depreciation - communications (25,576 ) (15,578 ) Communications, net property and equipment 205,910 170,820 Total property and equipment, net $ 328,016 248,051 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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 June 30, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 48,860 575 49,435 28,457 280 28,737 Denominator: Weighted-average common shares outstanding - basic and diluted 40,411,359 475,258 40,886,617 41,913,990 412,550 42,326,540 Earnings per share - basic and diluted $ 1.21 1.21 1.21 0.68 0.68 0.68 Six months ended June 30, 2018 2017 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 161,594 1,765 163,359 77,969 794 78,763 Denominator: Weighted-average common shares outstanding - basic and diluted 40,476,254 442,142 40,918,396 41,882,702 426,593 42,309,295 Earnings per share - basic and diluted $ 3.99 3.99 3.99 1.86 1.86 1.86 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 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. As discussed in note 1 above, the names of certain operating segments were changed during the first quarter of 2018. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. Three months ended June 30, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Activities Eliminations Total Total interest income $ 293 748 1 226,509 6,062 (4,425 ) 229,189 Interest expense — — 3,303 169,623 2,949 (4,425 ) 171,450 Net interest income 293 748 (3,302 ) 56,886 3,113 — 57,739 Less provision for loan losses — — — 3,500 — — 3,500 Net interest income (loss) after provision for loan losses 293 748 (3,302 ) 53,386 3,113 — 54,239 Other income: Loan servicing and systems revenue 114,545 — — — — — 114,545 Intersegment servicing revenue 11,609 — — — — (11,609 ) — Education technology, services, and payment processing revenue — 48,742 — — — — 48,742 Communications revenue — — 10,320 — — — 10,320 Other income 1,956 — — 2,772 4,851 — 9,580 Gain from debt repurchases — — — — — — — Derivative settlements, net — — — 22,053 (125 ) — 21,928 Derivative market value and foreign currency transaction adjustments, net — — — (5,446 ) 548 — (4,897 ) Total other income 128,110 48,742 10,320 19,379 5,274 (11,609 ) 200,218 Cost of services: Cost to provide education technology, services, and payment processing services — 11,317 — — — — 11,317 Cost to provide communications services — — 3,865 — — — 3,865 Total cost of services — 11,317 3,865 — — — 15,182 Operating expenses: Salaries and benefits 69,434 19,513 4,668 377 17,126 — 111,118 Depreciation and amortization 8,212 3,286 5,497 — 4,500 — 21,494 Loan servicing fees — — — 3,204 — — 3,204 Other expenses 17,490 5,383 3,023 1,288 13,225 — 40,409 Intersegment expenses, net 15,583 2,570 599 11,700 (18,842 ) (11,609 ) — Total operating expenses 110,719 30,752 13,787 16,569 16,009 (11,609 ) 176,225 Income (loss) before income taxes 17,684 7,421 (10,634 ) 56,196 (7,622 ) — 63,050 Income tax (expense) benefit (a) (4,245 ) (1,781 ) 2,552 (13,487 ) 3,451 — (13,511 ) Net income (loss) 13,439 5,640 (8,082 ) 42,709 (4,171 ) — 49,539 Net income attributable to noncontrolling interests — — — — (104 ) — (104 ) Net income (loss) attributable to Nelnet, Inc. $ 13,439 5,640 (8,082 ) 42,709 (4,275 ) — 49,435 Total assets as of June 30, 2018 $ 253,140 235,128 252,311 24,092,875 774,086 (398,297 ) 25,209,244 (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 June 30, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Generation and Management Corporate and Other Eliminations Total Total interest income $ 120 3 1 191,368 3,362 (1,776 ) 193,078 Interest expense — — 1,104 113,073 835 (1,776 ) 113,236 Net interest income 120 3 (1,103 ) 78,295 2,527 — 79,842 Less provision for loan losses — — — 3,000 — — 3,000 Net interest income (loss) after provision for loan losses 120 3 (1,103 ) 75,295 2,527 — 76,842 Other income: Loan servicing and systems revenue 56,899 — — — — — 56,899 Intersegment servicing revenue 9,952 — — — — (9,952 ) — Education technology, services, and payment processing revenue — 43,480 — — — — 43,480 Communications revenue — — 5,719 — — — 5,719 Other income — — — 3,057 9,429 — 12,485 Gain from debt repurchases — — — 442 — — 442 Derivative settlements, net — — — (165 ) (198 ) — (363 ) Derivative market value and foreign currency transaction adjustments, net — — — (27,412 ) (135 ) — (27,547 ) Total other income 66,851 43,480 5,719 (24,078 ) 9,096 (9,952 ) 91,115 Cost of services: Cost to provide education technology, services, and payment processing services — 9,515 — — — — 9,515 Cost to provide communications services — — 2,203 — — — 2,203 Total cost of services — 9,515 2,203 — — — 11,718 Operating expenses: Salaries and benefits 40,506 16,901 3,411 363 13,447 — 74,628 Depreciation and amortization 546 2,346 2,600 — 3,547 — 9,038 Loan servicing fees — — — 5,628 — — 5,628 Other expenses 8,879 4,594 1,772 820 10,195 — 26,262 Intersegment expenses, net 8,324 2,136 496 10,043 (11,046 ) (9,952 ) — Total operating expenses 58,255 25,977 8,279 16,854 16,143 (9,952 ) 115,556 Income (loss) before income taxes 8,716 7,991 (5,866 ) 34,363 (4,520 ) — 40,683 Income tax (expense) benefit (4,918 ) (3,037 ) 2,229 (13,057 ) 2,751 — (16,032 ) Net income (loss) 3,798 4,954 (3,637 ) 21,306 (1,769 ) — 24,651 Net loss (income) attributable to noncontrolling interests 4,226 — — — (141 ) — 4,086 Net income (loss) attributable to Nelnet, Inc. $ 8,024 4,954 (3,637 ) 21,306 (1,910 ) — 28,737 Total assets as of June 30, 2017 $ 99,841 230,145 150,809 24,433,881 684,840 (276,429 ) 25,323,087 Six months ended June 30, 2018 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Eliminations Total Total interest income $ 550 1,413 2 426,843 10,813 (7,574 ) 432,046 Interest expense — — 5,812 303,854 4,907 (7,574 ) 306,999 Net interest income 550 1,413 (5,810 ) 122,989 5,906 — 125,047 Less provision for loan losses — — — 7,500 — — 7,500 Net interest income (loss) after provision for loan losses 550 1,413 (5,810 ) 115,489 5,906 — 117,547 Other income: Loan servicing and systems revenue 214,687 — — — — — 214,687 Intersegment servicing revenue 22,380 — — — — (22,380 ) — Education technology, services, and payment processing revenue — 108,963 — — — — 108,963 Communications revenue — — 19,509 — — — 19,509 Other income 3,248 — — 5,765 18,765 — 27,776 Gain from debt repurchases — — — 359 — — 359 Derivative settlements, net — — — 28,979 (285 ) — 28,694 Derivative market value and foreign currency transaction adjustments, net — — 53,125 2,010 — 55,135 Total other income 240,315 108,963 19,509 88,228 20,490 (22,380 ) 455,123 Cost of services: Cost to provide education technology, services, and payment processing services — 25,000 — — — — 25,000 Cost to provide communications services — — 7,583 — — — 7,583 Total cost of services — 25,000 7,583 — — — 32,583 Operating expenses: Salaries and benefits 127,971 38,580 8,730 759 31,720 — 207,760 Depreciation and amortization 14,280 6,627 10,418 — 8,626 — 39,951 Loan servicing fees — — — 6,341 — — 6,341 Other expenses 31,953 10,006 5,660 2,137 24,070 — 73,826 Intersegment expenses, net 28,939 5,136 1,204 22,565 (35,464 ) (22,380 ) — Total operating expenses 203,143 60,349 26,012 31,802 28,952 (22,380 ) 327,878 Income (loss) before income taxes 37,722 25,027 (19,896 ) 171,915 (2,556 ) — 212,209 Income tax (expense) benefit (a) (9,247 ) (6,006 ) 4,775 (41,260 ) 2,251 — (49,487 ) Net income (loss) 28,475 19,021 (15,121 ) 130,655 (305 ) — 162,722 Net loss (income) attributable to noncontrolling interests 808 — — — (172 ) — 637 Net income (loss) attributable to Nelnet, Inc. $ 29,283 19,021 (15,121 ) 130,655 (477 ) — 163,359 Total assets as of June 30, 2018 $ 253,140 235,128 252,311 24,092,875 774,086 (398,297 ) 25,209,244 (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. Six months ended June 30, 2017 Loan Servicing and Systems Education Technology, Services, and Payment Processing Communications Asset Corporate and Other Eliminations Total Total interest income $ 214 5 1 373,693 6,123 (3,135 ) 376,902 Interest expense — — 1,816 219,824 1,630 (3,135 ) 220,135 Net interest income 214 5 (1,815 ) 153,869 4,493 — 156,767 Less provision for loan losses — — — 4,000 — — 4,000 Net interest income (loss) after provision for loan losses 214 5 (1,815 ) 149,869 4,493 — 152,767 Other income: Loan servicing and systems revenue 111,128 — — — — — 111,128 Intersegment servicing revenue 20,275 — — — — (20,275 ) — Education technology, services, and payment processing revenue — 99,504 — — — — 99,504 Communications revenue — — 10,826 — — — 10,826 Other income — — — 6,399 18,719 — 25,118 Gain from debt repurchases — — — 981 4,440 — 5,421 Derivative settlements, net — — — (1,339 ) (402 ) — (1,741 ) Derivative market value and foreign currency transaction adjustments, net — — — (30,823 ) (177 ) — (31,000 ) Total other income 131,403 99,504 10,826 (24,782 ) 22,580 (20,275 ) 219,256 Cost of services: Cost to provide education technology, services, and payment processing services — 22,305 — — — — 22,305 Cost to provide communications services — — 4,157 — — — 4,157 Total cost of services — 22,305 4,157 — — — 26,462 Operating expenses: Salaries and benefits 78,497 33,553 6,390 763 27,287 — 146,491 Depreciation and amortization 1,095 4,737 4,735 — 7,069 — 17,636 Loan servicing fees — — — 11,653 — — 11,653 Other expenses 18,015 9,202 3,144 1,812 20,249 — 52,423 Intersegment expenses, net 15,722 4,210 1,002 20,455 (21,114 ) (20,275 ) — Total operating expenses 113,329 51,702 15,271 34,683 33,491 (20,275 ) 228,203 Income (loss) before income taxes 18,288 25,502 (10,417 ) 90,404 (6,418 ) — 117,358 Income tax (expense) benefit (9,473 ) (9,690 ) 3,959 (34,354 ) 4,772 — (44,787 ) Net income (loss) 8,815 15,812 (6,458 ) 56,050 (1,646 ) — 72,571 Net loss (income) attributable to noncontrolling interests 6,641 — — — (450 ) — 6,192 Net income (loss) attributable to Nelnet, Inc. $ 15,456 15,812 (6,458 ) 56,050 (2,096 ) — 78,763 Total assets as of June 30, 2017 $ 99,841 230,145 150,809 24,433,881 684,840 (276,429 ) 25,323,087 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2018 . As of June 30, 2018 Level 1 Level 2 Total Assets: Investments: Student loan and other asset-backed securities - available-for-sale $ — 81,673 81,673 Equity securities 2,789 — 2,789 Equity securities measured at net asset value (a) — — 12,784 Debt securities - available-for-sale 107 — 107 Total investments 2,896 81,673 97,353 Derivative instruments — 1,954 1,954 Total assets $ 2,896 83,627 99,307 Liabilities: Derivative instruments $ — 5,053 5,053 Total liabilities $ — 5,053 5,053 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 June 30, 2018 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 23,967,542 22,710,369 — — 23,967,542 Cash and cash equivalents 67,867 67,867 67,867 — — Investments (at fair value) 97,353 97,353 2,896 81,673 — Notes receivable 16,373 16,373 — 16,373 — Restricted cash 741,726 741,726 741,726 — — Restricted cash – due to customers 154,760 154,760 154,760 — — Accrued interest receivable 591,055 591,055 — 591,055 — Derivative instruments 1,954 1,954 — 1,954 — Financial liabilities: Bonds and notes payable 22,680,749 22,468,364 — 22,680,749 — Accrued interest payable 63,226 63,226 — 63,226 — Due to customers 154,760 154,760 154,760 — — Derivative instruments 5,053 5,053 — 5,053 — 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 38
Basis of Financial Reporting - Schedule of Impact on Previous Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of goods and services | $ 15,182 | $ 11,718 | $ 32,583 | $ 26,462 |
Education Technology Services And Payment Processing Services [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | 48,742 | 43,480 | 108,963 | 99,504 |
Cost of goods and services | $ 11,317 | 9,515 | $ 25,000 | 22,305 |
Education Technology Services And Payment Processing Services [Member] | Restatement Adjustment [Member] | Accounting Standards Update 2014-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | 9,256 | 21,660 | ||
Cost of goods and services | 9,256 | 21,660 | ||
Education Technology Services And Payment Processing Services [Member] | Previously Reported [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Revenue | 34,224 | 77,844 | ||
Cost of goods and services | 0 | 0 | ||
Prior To Reclassification [Member] | Education Technology Services And Payment Processing Services [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of goods and services | $ 9,256 | $ 21,660 |
Basis of Financial Reporting 39
Basis of Financial Reporting - Schedule of Restricted Cash Previous Reporting (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in due to customers | $ (32,361) | $ 17,198 |
Proceeds from clearinghouse - initial and variation margin, net | 40,261 | 51,516 |
Net cash provided by operating activities | 71,631 | 174,919 |
Decrease in restricted cash | 0 | |
Net cash provided by investing activities | $ (1,085,583) | 1,597,902 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in due to customers | 0 | |
Proceeds from clearinghouse - initial and variation margin, net | 25,927 | |
Net cash provided by operating activities | 132,132 | |
Decrease in restricted cash | 226,409 | |
Net cash provided by investing activities | 1,824,311 | |
Accounting Standards Update 2016-18 [Member] | Restatement Adjustment [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in due to customers | 17,198 | |
Proceeds from clearinghouse - initial and variation margin, net | 25,589 | |
Net cash provided by operating activities | 42,787 | |
Decrease in restricted cash | (226,409) | |
Net cash provided by investing activities | $ (226,409) |
Summary of Significant Accoun40
Summary of Significant Accounting Policies and Practices - Schedule of Disaggregation of Revenue By Service Offerings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Loan Servicing And Systems Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 114,545 | $ 56,899 | $ 214,687 | $ 111,128 |
Government Servicing - Nelnet [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 39,781 | 39,809 | 79,107 | 78,815 |
Government Servicing - Great Lakes [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 45,682 | 0 | 76,437 | 0 |
FFELP Servicing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 9,147 | 3,636 | 16,838 | 7,713 |
Private Education And Consumer Loan Servicing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,882 | 7,121 | 21,983 | 12,938 |
Software Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,671 | 4,326 | 16,260 | 8,663 |
Outsourced Services Revenue And Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,382 | 2,007 | 4,062 | 2,999 |
Education Technology Services And Payment Processing Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,742 | 43,480 | 108,963 | 99,504 |
Tuition Payment Plan Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 20,417 | 18,871 | 43,404 | 40,658 |
Payment Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,026 | 13,885 | 35,952 | 32,831 |
Education Technology And Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,018 | 10,825 | 28,993 | 25,973 |
Other Service Offering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 281 | (101) | 614 | 42 |
Communication Revenue, Service Offering [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,320 | 5,719 | 19,509 | 10,826 |
Internet [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,395 | 2,569 | 10,091 | 4,773 |
Television [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,083 | 1,760 | 5,865 | 3,383 |
Telephone [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,825 | 1,344 | 3,514 | 2,605 |
Other Communication Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 17 | 46 | 39 | 65 |
Communications Revenue, Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,320 | 5,719 | 19,509 | 10,826 |
Residential Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,727 | 3,820 | 14,472 | 7,172 |
Business Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,535 | 1,814 | 4,917 | 3,510 |
Other Customer Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 58 | $ 85 | $ 120 | $ 144 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies and Practices - Schedule of Other Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Realized and unrealized gains on investments, net | $ 1,136 | $ 1,302 | $ 10,217 | $ 1,618 |
Borrower late fee income | 2,758 | 3,048 | 5,741 | 6,368 |
Peterson's revenue | 0 | 3,043 | 0 | 5,880 |
Other | 2,536 | 2,798 | 5,915 | 5,442 |
Other income | 9,580 | 12,485 | 27,776 | 25,118 |
Investment Advice [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,394 | 2,294 | 2,986 | 5,810 |
Administrative Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,756 | $ 0 | $ 2,917 | $ 0 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies and Practices - Schedule of Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||||
Deferred revenue, which is included in other liabilities on the consolidated balance sheets | $ 25,660 | $ 22,715 | $ 32,276 | $ 25,954 | $ 24,268 | $ 33,141 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies and Practices - Schedule of Changes in Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Contract With Customer Liability [Roll Forward] | ||||
Balance, beginning of period | $ 22,715 | $ 24,268 | $ 32,276 | $ 33,141 |
Deferral of revenue | 35,502 | 24,813 | 52,552 | 40,731 |
Recognition of unearned revenue | (32,509) | (23,070) | (59,311) | (47,947) |
Other | (48) | (57) | 143 | 29 |
Balance, end of period | $ 25,660 | $ 25,954 | $ 25,660 | $ 25,954 |
Loans Receivable and Allowanc44
Loans Receivable and Allowance for Loan Losses - Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | $ 22,856,285 | $ 21,995,877 | ||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (73,831) | (113,695) | ||||
Allowance for loan losses | (53,715) | $ (55,294) | (54,590) | $ (50,708) | $ (50,526) | $ (51,842) |
Student loans receivable | 22,710,369 | 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 | (18,370) | (13,085) | ||||
Consumer Portfolio Segment, Federally Insured [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 22,594,790 | 21,721,606 | ||||
Allowance for loan losses | (37,263) | (38,374) | (38,706) | (35,862) | (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 | 4,879,259 | 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 | 17,715,531 | 17,302,725 | ||||
Consumer Portfolio Segment, Private Education Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 180,935 | 212,160 | ||||
Allowance for loan losses | (11,664) | (12,255) | (12,629) | (13,846) | (13,839) | (14,574) |
Consumer Portfolio Segment, Consumer Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Student loans receivable, gross | 80,560 | 62,111 | ||||
Allowance for loan losses | $ (4,788) | $ (4,665) | $ (3,255) | $ (1,000) | $ 0 | $ 0 |
Loans Receivable and Allowanc45
Loans Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 55,294 | $ 50,526 | $ 54,590 | $ 51,842 |
Less provision for loan losses | 3,500 | 3,000 | 7,500 | 4,000 |
Charge-offs | (5,262) | (3,113) | (9,728) | (5,776) |
Recoveries | 183 | 245 | 353 | 442 |
Other | 0 | 50 | 1,000 | 200 |
Balance at end of period | 53,715 | 50,708 | 53,715 | 50,708 |
Consumer Portfolio Segment, Federally Insured [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 38,374 | 36,687 | 38,706 | 37,268 |
Less provision for loan losses | 2,000 | 2,000 | 4,000 | 4,000 |
Charge-offs | (3,111) | (2,825) | (6,443) | (5,406) |
Recoveries | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 1,000 | 0 |
Balance at end of period | 37,263 | 35,862 | 37,263 | 35,862 |
Consumer Portfolio Segment, Private Education Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 12,255 | 13,839 | 12,629 | 14,574 |
Less provision for loan losses | 0 | 0 | 0 | (1,000) |
Charge-offs | (773) | (288) | (1,312) | (370) |
Recoveries | 182 | 245 | 347 | 442 |
Other | 0 | 50 | 0 | 200 |
Balance at end of period | 11,664 | 13,846 | 11,664 | 13,846 |
Consumer Portfolio Segment, Consumer Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 4,665 | 0 | 3,255 | 0 |
Less provision for loan losses | 1,500 | 1,000 | 3,500 | 1,000 |
Charge-offs | (1,378) | 0 | (1,973) | 0 |
Recoveries | 1 | 0 | 6 | 0 |
Other | 0 | 0 | 0 | 0 |
Balance at end of period | $ 4,788 | $ 1,000 | $ 4,788 | $ 1,000 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance for Loan Losses - Loan Status and Delinquency (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 22,856,285 | $ 21,995,877 | |
Consumer Portfolio Segment, Federally Insured [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 22,594,790 | 21,721,606 | |
Consumer Portfolio Segment, Federally Insured [Member] | Federally insured loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 1,349,739 | 1,260,394 | $ 1,454,802 |
Loans in forbearance | 1,633,600 | 1,774,405 | 2,065,167 |
Total loans | 22,594,790 | 21,721,606 | 23,147,407 |
Loans in repayment status: | |||
Loans current | $ 17,211,088 | $ 16,477,004 | $ 17,106,921 |
Loans current, percentage | 87.80% | 88.20% | 87.20% |
Total loans in repayment | $ 19,611,451 | $ 18,686,807 | $ 19,627,438 |
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 | $ 686,083 | $ 682,586 | $ 743,738 |
Loans past due, percentage | 3.50% | 3.70% | 3.80% |
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 | $ 500,480 | $ 374,534 | $ 479,552 |
Loans past due, percentage | 2.60% | 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 | $ 261,612 | $ 287,922 | $ 267,139 |
Loans past due, percentage | 1.30% | 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 | $ 751,526 | $ 629,480 | $ 772,875 |
Loans past due, percentage | 3.80% | 3.40% | 3.90% |
Consumer Portfolio Segment, Federally Insured [Member] | Financing receivables, 271 days or greater past due [Member] | Federally insured loans [Member] | |||
Loans in repayment status: | |||
Loans past due | $ 200,662 | $ 235,281 | $ 257,213 |
Loans past due, percentage | 1.00% | 1.20% | 1.30% |
Consumer Portfolio Segment, Private Education Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 180,935 | $ 212,160 | |
Consumer Portfolio Segment, Private Education Loans [Member] | Private education loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans in-school/grace/deferment | 4,194 | 6,053 | $ 32,016 |
Loans in forbearance | 2,012 | 2,237 | 1,814 |
Total loans | 180,935 | 212,160 | 242,893 |
Loans in repayment status: | |||
Loans current | $ 168,093 | $ 196,720 | $ 202,155 |
Loans current, percentage | 96.20% | 96.50% | 96.70% |
Total loans in repayment | $ 174,729 | $ 203,870 | $ 209,063 |
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 | $ 1,498 | $ 1,867 | $ 2,066 |
Loans past due, percentage | 0.90% | 0.90% | 1.00% |
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 | $ 1,235 | $ 1,052 | $ 1,323 |
Loans past due, percentage | 0.70% | 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 | $ 3,903 | $ 4,231 | $ 3,519 |
Loans past due, percentage | 2.20% | 2.10% | 1.70% |
Bonds and Notes Payable - Outst
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 22,468,364 | $ 21,356,573 |
Discount on bonds and notes payable and debt issuance costs | (341,556) | (370,554) |
Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 1,697,691 | 335,992 |
Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 170,000 | $ 10,000 |
Interest rate range | 3.55% | 2.98% |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 20,381 | $ 20,381 |
Interest rate range | 5.712% | 5.069% |
Other borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 111,596 | $ 70,516 |
Bonds and notes payable, gross [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 22,809,920 | 21,727,127 |
Federally insured [Member] | Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 19,913,724 | 20,352,045 |
Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 765,548 | 780,829 |
Federally insured [Member] | Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | 20,679,272 | 21,132,874 |
Private education [Member] | Variable-rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 60,153 | $ 74,717 |
Interest rate range | 3.84% | 3.30% |
Private education [Member] | Fixed rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable | $ 70,827 | $ 82,647 |
Minimum [Member] | Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.32% | 1.55% |
Minimum [Member] | Other borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.79% | 2.44% |
Minimum [Member] | Federally insured [Member] | Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.40% | 1.47% |
Minimum [Member] | Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.45% | 2.09% |
Minimum [Member] | Private education [Member] | Fixed rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.60% | 3.60% |
Maximum [Member] | Warehouse facilities [Member] | FFELP Warehouse Total [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 2.35% | 1.56% |
Maximum [Member] | Other borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.22% | 3.38% |
Maximum [Member] | Federally insured [Member] | Bonds and notes based on indices [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 4.04% | 3.37% |
Maximum [Member] | Federally insured [Member] | Bonds and notes based on auction or remarketing [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 3.16% | 2.69% |
Maximum [Member] | Private education [Member] | Fixed rate bonds and notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate range | 5.35% | 5.35% |
Bonds and Notes Payable - Out48
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - FFELP Warehouse Total [Member] - Warehouse facilities [Member] - USD ($) | May 03, 2018 | Jun. 30, 2018 | Apr. 24, 2018 | Apr. 23, 2018 |
Line of Credit Facility [Line Items] | ||||
Maximum financing amount | $ 1,825,000,000 | |||
Amount outstanding | 1,697,691,000 | |||
Amount available | 127,309,000 | |||
Advanced as equity support | 84,377,000 | |||
NFSLW-I Warehouse [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum financing amount | $ 1,325,000,000 | 1,325,000,000 | $ 1,250,000,000 | $ 500,000,000 |
Amount outstanding | 1,245,448,000 | |||
Amount available | 79,552,000 | |||
Advanced as equity support | 47,126,000 | |||
Increase to maximum financing amount | $ 75,000,000 | |||
NHELP-II Warehouse [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum financing amount | 500,000,000 | |||
Amount outstanding | 452,243,000 | |||
Amount available | 47,757,000 | |||
Advanced as equity support | $ 37,251,000 | |||
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 | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Total original principal amount | $ 983,550 |
Secured Debt [Member] | NSLT 2018-1 [Member] | |
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 |
Secured Debt [Member] | NSLT 2018-2 [Member] | |
Debt Instrument [Line Items] | |
Total original principal amount | $ 509,800 |
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% |
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | NSLT 2018-2 [Member] | |
Debt Instrument [Line Items] | |
Variable interest rate on asset backed security | 0.65% |
Bonds and Notes Payable - Narra
Bonds and Notes Payable - Narrative (Details) - Unsecured Line of Credit [Member] - USD ($) | Jun. 30, 2018 | Jun. 22, 2018 | Jun. 21, 2018 |
Debt Instrument [Line Items] | |||
Maximum financing amount | $ 350,000,000 | ||
Initial capital contribution threshold | 150,000,000 | ||
Non-FFELP originated loans threshold | $ 850,000,000 | $ 500,000,000 | |
Amount outstanding | $ 170,000,000 | ||
Amount available | $ 180,000,000 |
Bonds and Notes Payable - Sch51
Bonds and Notes Payable - Schedule of Debt Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Par value | $ 12,905 | $ 33,746 | ||
Purchase price | 12,546 | 28,325 | ||
Gain | $ 0 | $ 442 | 359 | 5,421 |
Asset-backed securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Par value | 0 | 4,088 | 12,905 | 4,088 |
Purchase price | 0 | 3,646 | 12,546 | 3,085 |
Gain | $ 0 | $ 442 | 359 | 1,003 |
Unsecured debt - Hybrid Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Par value | 0 | 29,658 | ||
Purchase price | 0 | 25,240 | ||
Gain | $ 0 | $ 4,418 |
Derivative Financial Instrume52
Derivative Financial Instruments - Schedule of Basis Swap (Details) - 1:3 basis swaps [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional amount | $ 11,750,000 | $ 11,250,000 |
Maturity 2018 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,750,000 | 4,250,000 |
Maturity 2019 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 3,500,000 | 3,500,000 |
Maturity 2020 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,000,000 | |
Maturity 2021 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 250,000 | |
Maturity 2022 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 2,000,000 | 1,000,000 |
Maturity 2023 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 750,000 | |
Maturity 2024 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 250,000 | 250,000 |
Maturity 2026 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,150,000 | 1,150,000 |
Maturity 2027 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 375,000 | 375,000 |
Maturity 2028 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 325,000 | 325,000 |
Maturity 2029 [Member] | ||
Derivative [Line Items] | ||
Notional amount | 100,000 | 100,000 |
Maturity 2031 [Member] | ||
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 ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |||||
Bonds and notes payable | $ 22,468,364,000 | $ 21,356,573,000 | |||
1:3 basis swaps [Member] | |||||
Derivative [Line Items] | |||||
Weighted average basis point paid | 10.50% | 12.50% | |||
Notional amount | $ 11,750,000,000 | $ 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 | |||
Weighted average basis spread on variable rate paid on swap | 5.712% | 5.069% | |||
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 | Jun. 30, 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 | Jun. 30, 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 | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | $ 1,954 | $ 818 |
Fair value of derivative instruments | 5,053 | 7,063 |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 1,954 | 818 |
Derivative Financial Instruments, Assets [Member] | Swaption [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 1,231 | 543 |
Derivative Financial Instruments, Assets [Member] | Interest Rate Cap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of asset derivatives | 723 | 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 | 5,053 | 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 | $ 5,053 | $ 7,063 |
Derivative Financial Instrume57
Derivative Financial Instruments - Schedule of Offsetting of Derivative Assets/Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Net asset | $ 1,954 | $ 818 |
Net asset (liability) | 2,467 | 1,457 |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross amounts of recognized assets presented in the consolidated balance sheets | 1,954 | 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 | (5,053) | (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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | $ 21,928 | $ (363) | $ 28,694 | $ (1,741) |
Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | 21,928 | (363) | 28,694 | (1,741) |
Change in fair value | (4,897) | (286) | 55,135 | 951 |
Re-measurement of Euro Notes (foreign currency transaction adjustment) | 0 | (27,261) | 0 | (31,951) |
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense) | 17,031 | (27,910) | 83,829 | (32,741) |
1:3 basis swaps [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | 2,979 | (362) | 1,315 | 336 |
Change in fair value | (2,522) | (8,841) | 10,775 | (11,416) |
Interest rate swaps - floor income hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | 19,074 | 2,114 | 27,664 | 1,994 |
Change in fair value | (2,766) | (17,810) | 41,434 | (13,485) |
Interest rate swap option - floor income hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | (279) | (828) | 468 | (1,712) |
Interest Rate Cap [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | 122 | (311) | 448 | (833) |
Interest rate swaps - hybrid debt hedges [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | (125) | (198) | (285) | (402) |
Change in fair value | 548 | (453) | 2,010 | (34) |
Cross-currency interest rate swap [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative settlements, net | 0 | (1,917) | 0 | (3,669) |
Change in fair value | 0 | 27,639 | 0 | 28,574 |
Other Contract [Member] | Other Income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value | $ 0 | $ 318 | $ 0 | $ (143) |
Investments and Notes Receiva59
Investments and Notes Receivable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Investments (at fair value): | |||
Amortized cost | $ 78,274,000 | $ 78,274,000 | |
Gross unrealized gains | 3,714,000 | 3,714,000 | |
Gross unrealized losses | (208,000) | (208,000) | |
Fair value | 81,780,000 | 81,780,000 | |
Equity securities | |||
Amortized cost | 11,638,000 | 11,638,000 | |
Gross unrealized gains | 4,290,000 | ||
Gross unrealized losses | (355,000) | ||
Fair value | 15,573,000 | 15,573,000 | |
Total investments (at fair value) | |||
Amortized cost | 89,912,000 | 89,912,000 | |
Gross unrealized gains | 8,004,000 | 8,004,000 | |
Gross unrealized losses | (563,000) | (563,000) | |
Fair value | 97,353,000 | 97,353,000 | |
Other Investments and Notes Receivable (not measured at fair value): | |||
Other Investments and Notes Receivable (not measured at fair value): | 159,294,000 | 159,294,000 | |
Available-for-sale investments: | |||
Total investments and notes receivable | 256,647,000 | 256,647,000 | $ 240,538,000 |
Impairment loss | 0 | 0 | |
Upward adjustment | 300,000 | 7,200,000 | |
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 | 17,900,000 | 17,900,000 | |
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 | 69,961,000 | 69,961,000 | |
Equity method | 14,499,000 | 14,499,000 | |
Other | 783,000 | 783,000 | |
Other Investments and Notes Receivable (not measured at fair value): | 85,243,000 | 85,243,000 | 84,752,000 |
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 | 19,896,000 | 19,896,000 | |
Other | 29,724,000 | 29,724,000 | |
Other Investments and Notes Receivable (not measured at fair value): | 49,620,000 | 49,620,000 | 49,464,000 |
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 | 16,373,000 | 16,393,000 |
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): | $ 8,058,000 | $ 8,058,000 | $ 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 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 153,802 | $ 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 | $ 75,329 | |||
Weighted average useful life of intangible assets acquired | 4 years | |||
Goodwill | $ 15,043 | |||
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 | $ 70,200 | |||
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 | Jun. 30, 2018 | Mar. 31, 2018 | Feb. 07, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Excess cost over fair value of net assets acquired (goodwill) | $ 153,802 | $ 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 | 35,919 | |||
Other assets | 14,018 | |||
Intangible assets | 75,329 | |||
Excess cost over fair value of net assets acquired (goodwill) | 15,043 | |||
Other liabilities | (54,865) | |||
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Loan servicing and systems revenue | $ 114,545 | $ 115,559 | $ 234,733 | $ 231,708 |
Net income attributable to Nelnet, Inc. | $ 49,435 | $ 29,174 | $ 164,856 | $ 86,729 |
Net income per share - basic and diluted (in dollars per share) | $ 1.21 | $ 0.69 | $ 4.03 | $ 2.05 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of June 30, 2018 (months) | 74 months | ||||
Amortizable intangible assets, net | $ 102,489 | $ 102,489 | $ 38,427 | ||
Amortization of intangible assets | 7,800 | $ 2,400 | $ 14,000 | $ 4,700 | |
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of June 30, 2018 (months) | 75 months | ||||
Amortizable intangible assets, net | 84,679 | $ 84,679 | 24,168 | ||
Accumulated amortization of intangible assets | 22,413 | $ 22,413 | 12,715 | ||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of June 30, 2018 (months) | 86 months | ||||
Amortizable intangible assets, net | 12,563 | $ 12,563 | 9,074 | ||
Accumulated amortization of intangible assets | 4,130 | $ 4,130 | 2,498 | ||
Computer Software, Intangible Asset [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of June 30, 2018 (months) | 18 months | ||||
Amortizable intangible assets, net | 5,038 | $ 5,038 | 4,958 | ||
Accumulated amortization of intangible assets | 12,633 | $ 12,633 | 10,013 | ||
Covenants not to compete [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average remaining useful life as of June 30, 2018 (months) | 71 months | ||||
Amortizable intangible assets, net | 209 | $ 209 | 227 | ||
Accumulated amortization of intangible assets | $ 145 | $ 145 | $ 127 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2018 (July 1 - December 31) | $ 15,336 | |
2,019 | 27,500 | |
2,020 | 24,301 | |
2,021 | 14,481 | |
2,022 | 4,671 | |
2023 and thereafter | 16,200 | |
Amortizable intangible assets, net | $ 102,489 | $ 38,427 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 158,456 | $ 138,759 |
Goodwill acquired during the period | 19,697 | |
Great Lakes purchase price allocation adjustment | (4,654) | |
Balance at end of period | 153,802 | 158,456 |
Loan Servicing And Systems [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 28,293 | 8,596 |
Goodwill acquired during the period | 19,697 | |
Great Lakes purchase price allocation adjustment | (4,654) | |
Balance at end of period | 23,639 | 28,293 |
Education Technology Services And Payment Processing Services [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 67,168 | 67,168 |
Goodwill acquired during the period | 0 | |
Great Lakes purchase price allocation adjustment | 0 | |
Balance at end of period | 67,168 | 67,168 |
Communications [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 21,112 | 21,112 |
Goodwill acquired during the period | 0 | |
Great Lakes purchase price allocation adjustment | 0 | |
Balance at end of period | 21,112 | 21,112 |
Asset Generation and Management [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 41,883 | 41,883 |
Goodwill acquired during the period | 0 | |
Great Lakes purchase price allocation adjustment | 0 | |
Balance at end of period | 41,883 | 41,883 |
Corporate and Other Activities [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Goodwill acquired during the period | 0 | |
Great Lakes purchase price allocation adjustment | 0 | |
Balance at end of period | $ 0 | $ 0 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, net | $ 328,016 | $ 328,016 | $ 248,051 | ||
Depreciation | 13,700 | $ 6,700 | 26,000 | $ 12,900 | |
Non-communications [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 233,285 | 233,285 | 182,248 | ||
Accumulated depreciation | (111,179) | (111,179) | (105,017) | ||
Property and equipment, net | 122,106 | 122,106 | 77,231 | ||
Non-communications [Member] | Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 142,559 | $ 142,559 | 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 | 47,257 | $ 47,257 | 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 | 48 years | ||||
Non-communications [Member] | Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 21,737 | $ 21,737 | 15,210 | ||
Non-communications [Member] | Furniture and Fixtures [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 1 year | ||||
Non-communications [Member] | Furniture and Fixtures [Member] | Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 10 years | ||||
Non-communications [Member] | Leasehold Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 9,271 | $ 9,271 | 7,759 | ||
Non-communications [Member] | Leasehold Improvements [Member] | Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Useful life | 1 year | ||||
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 | 4,425 | $ 4,425 | 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 | $ 3,328 | 2,628 | ||
Non-communications [Member] | Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 4,708 | 4,708 | 4,127 | ||
Communications [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 231,486 | 231,486 | 186,398 | ||
Accumulated depreciation | (25,576) | (25,576) | (15,578) | ||
Property and equipment, net | 205,910 | 205,910 | 170,820 | ||
Communications [Member] | Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 4,801 | $ 4,801 | 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 | 5,990 | $ 5,990 | 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 | 70 | ||
Communications [Member] | Construction in Progress [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 11,994 | 11,994 | 11,620 | ||
Communications [Member] | Network plant and fiber [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | 175,192 | $ 175,192 | 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 | 17,730 | $ 17,730 | 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 | 13,078 | $ 13,078 | 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 | $ 2,631 | $ 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 49,435 | $ 28,737 | $ 163,359 | $ 78,763 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,886,617 | 42,326,540 | 40,918,396 | 42,309,295 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.21 | $ 0.68 | $ 3.99 | $ 1.86 |
Common shareholders [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 48,860 | $ 28,457 | $ 161,594 | $ 77,969 |
Weighted average common shares outstanding - basic and diluted (in shares) | 40,411,359 | 41,913,990 | 40,476,254 | 41,882,702 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.21 | $ 0.68 | $ 3.99 | $ 1.86 |
Unvested restricted stock shareholders [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to Nelnet, Inc. | $ 575 | $ 280 | $ 1,765 | $ 794 |
Weighted average common shares outstanding - basic and diluted (in shares) | 475,258 | 412,550 | 442,142 | 426,593 |
Earnings per share - basic and diluted (in dollars per share) | $ 1.21 | $ 0.68 | $ 3.99 | $ 1.86 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Total interest income | $ 229,189 | $ 193,078 | $ 432,046 | $ 376,902 | |
Interest expense | 171,450 | 113,236 | 306,999 | 220,135 | |
Net interest income | 57,739 | 79,842 | 125,047 | 156,767 | |
Less provision for loan losses | 3,500 | 3,000 | 7,500 | 4,000 | |
Net interest income (loss) after provision for loan losses | 54,239 | 76,842 | 117,547 | 152,767 | |
Other income: | |||||
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Other income | 9,580 | 12,485 | 27,776 | 25,118 | |
Gain from debt repurchases | 0 | 442 | 359 | 5,421 | |
Derivative settlements, net | 21,928 | (363) | 28,694 | (1,741) | |
Derivative market value and foreign currency transaction adjustments, net | (4,897) | (27,547) | 55,135 | (31,000) | |
Total other income | 200,218 | 91,115 | 455,123 | 219,256 | |
Cost of services: | |||||
Total cost of services | 15,182 | 11,718 | 32,583 | 26,462 | |
Operating expenses: | |||||
Salaries and benefits | 111,118 | 74,628 | 207,760 | 146,491 | |
Depreciation and amortization | 21,494 | 9,038 | 39,951 | 17,636 | |
Loan servicing fees | 3,204 | 5,628 | 6,341 | 11,653 | |
Other expenses | 40,409 | 26,262 | 73,826 | 52,423 | |
Intersegment expenses, net | 0 | 0 | 0 | 0 | |
Total operating expenses | 176,225 | 115,556 | 327,878 | 228,203 | |
Income before income taxes | 63,050 | 40,683 | 212,209 | 117,358 | |
Income tax (expense) benefit | (13,511) | (16,032) | (49,487) | (44,787) | |
Net income (loss) | 49,539 | 24,651 | 162,722 | 72,571 | |
Net income attributable to noncontrolling interests | (104) | 4,086 | 637 | 6,192 | |
Net income (loss) attributable to Nelnet, Inc. | 49,435 | 28,737 | 163,359 | 78,763 | |
Total assets | $ 25,209,244 | 25,323,087 | $ 25,209,244 | 25,323,087 | $ 23,964,435 |
Segment income before tax allocation | 24.00% | 24.00% | |||
Operating Segments [Member] | Loan Servicing And Systems Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | $ 293 | 120 | $ 550 | 214 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 293 | 120 | 550 | 214 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 293 | 120 | 550 | 214 | |
Other income: | |||||
Intersegment servicing revenue | 11,609 | 9,952 | 22,380 | 20,275 | |
Other income | 1,956 | 0 | 3,248 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | ||
Total other income | 128,110 | 66,851 | 240,315 | 131,403 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Operating expenses: | |||||
Salaries and benefits | 69,434 | 40,506 | 127,971 | 78,497 | |
Depreciation and amortization | 8,212 | 546 | 14,280 | 1,095 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Other expenses | 17,490 | 8,879 | 31,953 | 18,015 | |
Intersegment expenses, net | 15,583 | 8,324 | 28,939 | 15,722 | |
Total operating expenses | 110,719 | 58,255 | 203,143 | 113,329 | |
Income before income taxes | 17,684 | 8,716 | 37,722 | 18,288 | |
Income tax (expense) benefit | (4,245) | (4,918) | (9,247) | (9,473) | |
Net income (loss) | 13,439 | 3,798 | 28,475 | 8,815 | |
Net income attributable to noncontrolling interests | 0 | 4,226 | 808 | 6,641 | |
Net income (loss) attributable to Nelnet, Inc. | 13,439 | 8,024 | 29,283 | 15,456 | |
Total assets | 253,140 | 99,841 | 253,140 | 99,841 | |
Operating Segments [Member] | Education Technology Services And Payment Processing Services Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 748 | 3 | 1,413 | 5 | |
Interest expense | 0 | 0 | 0 | 0 | |
Net interest income | 748 | 3 | 1,413 | 5 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 748 | 3 | 1,413 | 5 | |
Other income: | |||||
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | 48,742 | 43,480 | 108,963 | 99,504 | |
Cost of services: | |||||
Total cost of services | 11,317 | 9,515 | 25,000 | 22,305 | |
Operating expenses: | |||||
Salaries and benefits | 19,513 | 16,901 | 38,580 | 33,553 | |
Depreciation and amortization | 3,286 | 2,346 | 6,627 | 4,737 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Other expenses | 5,383 | 4,594 | 10,006 | 9,202 | |
Intersegment expenses, net | 2,570 | 2,136 | 5,136 | 4,210 | |
Total operating expenses | 30,752 | 25,977 | 60,349 | 51,702 | |
Income before income taxes | 7,421 | 7,991 | 25,027 | 25,502 | |
Income tax (expense) benefit | (1,781) | (3,037) | (6,006) | (9,690) | |
Net income (loss) | 5,640 | 4,954 | 19,021 | 15,812 | |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 5,640 | 4,954 | 19,021 | 15,812 | |
Total assets | 235,128 | 230,145 | 235,128 | 230,145 | |
Operating Segments [Member] | Communications Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 1 | 1 | 2 | 1 | |
Interest expense | 3,303 | 1,104 | 5,812 | 1,816 | |
Net interest income | (3,302) | (1,103) | (5,810) | (1,815) | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | (3,302) | (1,103) | (5,810) | (1,815) | |
Other income: | |||||
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | 10,320 | 5,719 | 19,509 | 10,826 | |
Cost of services: | |||||
Total cost of services | 3,865 | 2,203 | 7,583 | 4,157 | |
Operating expenses: | |||||
Salaries and benefits | 4,668 | 3,411 | 8,730 | 6,390 | |
Depreciation and amortization | 5,497 | 2,600 | 10,418 | 4,735 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Other expenses | 3,023 | 1,772 | 5,660 | 3,144 | |
Intersegment expenses, net | 599 | 496 | 1,204 | 1,002 | |
Total operating expenses | 13,787 | 8,279 | 26,012 | 15,271 | |
Income before income taxes | (10,634) | (5,866) | (19,896) | (10,417) | |
Income tax (expense) benefit | 2,552 | 2,229 | 4,775 | 3,959 | |
Net income (loss) | (8,082) | (3,637) | (15,121) | (6,458) | |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | (8,082) | (3,637) | (15,121) | (6,458) | |
Total assets | 252,311 | 150,809 | 252,311 | 150,809 | |
Operating Segments [Member] | Asset Generation And Management Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 226,509 | 191,368 | 426,843 | 373,693 | |
Interest expense | 169,623 | 113,073 | 303,854 | 219,824 | |
Net interest income | 56,886 | 78,295 | 122,989 | 153,869 | |
Less provision for loan losses | 3,500 | 3,000 | 7,500 | 4,000 | |
Net interest income (loss) after provision for loan losses | 53,386 | 75,295 | 115,489 | 149,869 | |
Other income: | |||||
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Other income | 2,772 | 3,057 | 5,765 | 6,399 | |
Gain from debt repurchases | 0 | 442 | 359 | 981 | |
Derivative settlements, net | 22,053 | (165) | 28,979 | (1,339) | |
Derivative market value and foreign currency transaction adjustments, net | (5,446) | (27,412) | 53,125 | (30,823) | |
Total other income | 19,379 | (24,078) | 88,228 | (24,782) | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Operating expenses: | |||||
Salaries and benefits | 377 | 363 | 759 | 763 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Loan servicing fees | 3,204 | 5,628 | 6,341 | 11,653 | |
Other expenses | 1,288 | 820 | 2,137 | 1,812 | |
Intersegment expenses, net | 11,700 | 10,043 | 22,565 | 20,455 | |
Total operating expenses | 16,569 | 16,854 | 31,802 | 34,683 | |
Income before income taxes | 56,196 | 34,363 | 171,915 | 90,404 | |
Income tax (expense) benefit | (13,487) | (13,057) | (41,260) | (34,354) | |
Net income (loss) | 42,709 | 21,306 | 130,655 | 56,050 | |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 42,709 | 21,306 | 130,655 | 56,050 | |
Total assets | 24,092,875 | 24,433,881 | 24,092,875 | 24,433,881 | |
Operating Segments [Member] | Corporate and Other Activities [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | 6,062 | 3,362 | 10,813 | 6,123 | |
Interest expense | 2,949 | 835 | 4,907 | 1,630 | |
Net interest income | 3,113 | 2,527 | 5,906 | 4,493 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 3,113 | 2,527 | 5,906 | 4,493 | |
Other income: | |||||
Intersegment servicing revenue | 0 | 0 | 0 | 0 | |
Other income | 4,851 | 9,429 | 18,765 | 18,719 | |
Gain from debt repurchases | 0 | 0 | 0 | 4,440 | |
Derivative settlements, net | (125) | (198) | (285) | (402) | |
Derivative market value and foreign currency transaction adjustments, net | 548 | (135) | 2,010 | (177) | |
Total other income | 5,274 | 9,096 | 20,490 | 22,580 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Operating expenses: | |||||
Salaries and benefits | 17,126 | 13,447 | 31,720 | 27,287 | |
Depreciation and amortization | 4,500 | 3,547 | 8,626 | 7,069 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Other expenses | 13,225 | 10,195 | 24,070 | 20,249 | |
Intersegment expenses, net | (18,842) | (11,046) | (35,464) | (21,114) | |
Total operating expenses | 16,009 | 16,143 | 28,952 | 33,491 | |
Income before income taxes | (7,622) | (4,520) | (2,556) | (6,418) | |
Income tax (expense) benefit | 3,451 | 2,751 | 2,251 | 4,772 | |
Net income (loss) | (4,171) | (1,769) | (305) | (1,646) | |
Net income attributable to noncontrolling interests | (104) | (141) | (172) | (450) | |
Net income (loss) attributable to Nelnet, Inc. | (4,275) | (1,910) | (477) | (2,096) | |
Total assets | 774,086 | 684,840 | 774,086 | 684,840 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total interest income | (4,425) | (1,776) | (7,574) | (3,135) | |
Interest expense | (4,425) | (1,776) | (7,574) | (3,135) | |
Net interest income | 0 | 0 | 0 | 0 | |
Less provision for loan losses | 0 | 0 | 0 | 0 | |
Net interest income (loss) after provision for loan losses | 0 | 0 | 0 | 0 | |
Other income: | |||||
Intersegment servicing revenue | (11,609) | (9,952) | (22,380) | (20,275) | |
Other income | 0 | 0 | 0 | 0 | |
Gain from debt repurchases | 0 | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | 0 | |
Derivative market value and foreign currency transaction adjustments, net | 0 | 0 | 0 | 0 | |
Total other income | (11,609) | (9,952) | (22,380) | (20,275) | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Operating expenses: | |||||
Salaries and benefits | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Loan servicing fees | 0 | 0 | 0 | 0 | |
Other expenses | 0 | 0 | 0 | 0 | |
Intersegment expenses, net | (11,609) | (9,952) | (22,380) | (20,275) | |
Total operating expenses | (11,609) | (9,952) | (22,380) | (20,275) | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
Net income (loss) | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Nelnet, Inc. | 0 | 0 | 0 | 0 | |
Total assets | (398,297) | (276,429) | (398,297) | (276,429) | |
Loan Servicing And Systems [Member] | |||||
Other income: | |||||
Revenue | 114,545 | 56,899 | 214,687 | 111,128 | |
Loan Servicing And Systems [Member] | Operating Segments [Member] | Loan Servicing And Systems Segment [Member] | |||||
Other income: | |||||
Revenue | 114,545 | 56,899 | 214,687 | 111,128 | |
Loan Servicing And Systems [Member] | Operating Segments [Member] | Education Technology Services And Payment Processing Services Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Loan Servicing And Systems [Member] | Operating Segments [Member] | Communications Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Loan Servicing And Systems [Member] | Operating Segments [Member] | Asset Generation And Management Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Loan Servicing And Systems [Member] | Operating Segments [Member] | Corporate and Other Activities [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Loan Servicing And Systems [Member] | Intersegment Eliminations [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Education Technology Services And Payment Processing Services [Member] | |||||
Other income: | |||||
Revenue | 48,742 | 43,480 | 108,963 | 99,504 | |
Cost of services: | |||||
Total cost of services | 11,317 | 9,515 | 25,000 | 22,305 | |
Education Technology Services And Payment Processing Services [Member] | Operating Segments [Member] | Loan Servicing And Systems Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Education Technology Services And Payment Processing Services [Member] | Operating Segments [Member] | Education Technology Services And Payment Processing Services Segment [Member] | |||||
Other income: | |||||
Revenue | 48,742 | 43,480 | 108,963 | 99,504 | |
Cost of services: | |||||
Total cost of services | 11,317 | 9,515 | 25,000 | 22,305 | |
Education Technology Services And Payment Processing Services [Member] | Operating Segments [Member] | Communications Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Education Technology Services And Payment Processing Services [Member] | Operating Segments [Member] | Asset Generation And Management Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Education Technology Services And Payment Processing Services [Member] | Operating Segments [Member] | Corporate and Other Activities [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Education Technology Services And Payment Processing Services [Member] | Intersegment Eliminations [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Communications Services [Member] | |||||
Other income: | |||||
Revenue | 10,320 | 5,719 | 19,509 | 10,826 | |
Cost of services: | |||||
Total cost of services | 3,865 | 2,203 | 7,583 | 4,157 | |
Communications Services [Member] | Operating Segments [Member] | Loan Servicing And Systems Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Communications Services [Member] | Operating Segments [Member] | Education Technology Services And Payment Processing Services Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Communications Services [Member] | Operating Segments [Member] | Communications Segment [Member] | |||||
Other income: | |||||
Revenue | 10,320 | 5,719 | 19,509 | 10,826 | |
Cost of services: | |||||
Total cost of services | 3,865 | 2,203 | 7,583 | 4,157 | |
Communications Services [Member] | Operating Segments [Member] | Asset Generation And Management Segment [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Communications Services [Member] | Operating Segments [Member] | Corporate and Other Activities [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | 0 | 0 | 0 | 0 | |
Communications Services [Member] | Intersegment Eliminations [Member] | |||||
Other income: | |||||
Revenue | 0 | 0 | 0 | 0 | |
Cost of services: | |||||
Total cost of services | $ 0 | $ 0 | $ 0 | $ 0 |
Major Customer (Details)
Major Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | |
Great Lakes Educational Loan Service [Member] | |||||
Concentration Risk [Line Items] | |||||
Acquiree revenue since acquisition | $ 45,700 | $ 76,400 | |||
Government Servicing - Nelnet [Member] | |||||
Concentration Risk [Line Items] | |||||
Revenue | 39,781 | $ 39,809 | $ 79,107 | $ 78,815 | |
Government Servicing - Nelnet [Member] | Concentration Risk Dollar Value [Member] | |||||
Concentration Risk [Line Items] | |||||
Revenue | $ 39,800 | $ 39,800 | $ 79,100 | $ 78,800 |
Assets and Liabilities that are
Assets and Liabilities that are Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Equity securities measured at net asset value [Member] | ||
Financial assets: | ||
Fair value | $ 12,784 | |
Fair Value, Measurements, Recurring [Member] | ||
Financial assets: | ||
Fair value | 97,353 | $ 80,902 |
Fair value of derivative instruments | 1,954 | 818 |
Total assets | 99,307 | 81,720 |
Financial liabilities: | ||
Fair value of derivative instruments | 5,053 | 7,063 |
Total liabilities | 5,053 | 7,063 |
Fair Value, Measurements, Recurring [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 81,673 | 76,866 |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ||
Financial assets: | ||
Fair value | 2,789 | 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 | 2,896 | 4,036 |
Fair value of derivative instruments | 0 | 0 |
Total assets | 2,896 | 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 | 2,789 | 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 | 81,673 | 76,866 |
Fair value of derivative instruments | 1,954 | 818 |
Total assets | 83,627 | 77,684 |
Financial liabilities: | ||
Fair value of derivative instruments | 5,053 | 7,063 |
Total liabilities | 5,053 | 7,063 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Student loan asset-backed securities [Member] | ||
Financial assets: | ||
Fair value | 81,673 | 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 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||||
Loans receivable | $ 22,710,369 | $ 21,814,507 | ||
Cash and cash equivalents | 67,867 | 66,752 | $ 69,239 | $ 69,654 |
Restricted cash – due to customers | 154,760 | 187,121 | $ 136,900 | $ 119,702 |
Accrued interest receivable | 591,055 | 430,385 | ||
Derivative instruments | 1,954 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,468,364 | 21,356,573 | ||
Accrued interest payable | 63,226 | 50,039 | ||
Due to customers | 154,760 | 187,121 | ||
Derivative instruments | 5,053 | 7,063 | ||
Fair value [Member] | ||||
Financial assets: | ||||
Loans receivable | 23,967,542 | 23,106,440 | ||
Cash and cash equivalents | 67,867 | 66,752 | ||
Investments (at fair value) | 97,353 | 80,902 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 741,726 | 688,193 | ||
Restricted cash – due to customers | 154,760 | 187,121 | ||
Accrued interest receivable | 591,055 | 430,385 | ||
Derivative instruments | 1,954 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,680,749 | 21,521,463 | ||
Accrued interest payable | 63,226 | 50,039 | ||
Due to customers | 154,760 | 187,121 | ||
Derivative instruments | 5,053 | 7,063 | ||
Fair value [Member] | Level 1 [Member] | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Cash and cash equivalents | 67,867 | 66,752 | ||
Investments (at fair value) | 2,896 | 4,036 | ||
Notes receivable | 0 | 0 | ||
Restricted cash | 741,726 | 688,193 | ||
Restricted cash – due to customers | 154,760 | 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 | 154,760 | 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) | 81,673 | 76,866 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 0 | 0 | ||
Restricted cash – due to customers | 0 | 0 | ||
Accrued interest receivable | 591,055 | 430,385 | ||
Derivative instruments | 1,954 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,680,749 | 21,521,463 | ||
Accrued interest payable | 63,226 | 50,039 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 5,053 | 7,063 | ||
Fair value [Member] | Level 3 [Member] | ||||
Financial assets: | ||||
Loans receivable | 23,967,542 | 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 | 22,710,369 | 21,814,507 | ||
Cash and cash equivalents | 67,867 | 66,752 | ||
Investments (at fair value) | 97,353 | 80,902 | ||
Notes receivable | 16,373 | 16,393 | ||
Restricted cash | 741,726 | 688,193 | ||
Restricted cash – due to customers | 154,760 | 187,121 | ||
Accrued interest receivable | 591,055 | 430,385 | ||
Derivative instruments | 1,954 | 818 | ||
Financial liabilities: | ||||
Bonds and notes payable | 22,468,364 | 21,356,573 | ||
Accrued interest payable | 63,226 | 50,039 | ||
Due to customers | 154,760 | 187,121 | ||
Derivative instruments | $ 5,053 | $ 7,063 |