NELNET INC, 10-Q filed on 5/8/2018
Quarterly Report
v3.8.0.1
Document and Entity Information Document - shares
3 Months Ended
Mar. 31, 2018
Apr. 30, 2018
Document Information [Line Items]    
Entity Registrant Name NELNET INC  
Document Type 10-Q  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Entity Central Index Key 0001258602  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Document Period End Date Mar. 31, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   29,212,160
Common Class B [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   11,468,587
v3.8.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Assets:    
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) $ 21,562,030 $ 21,814,507
Cash and cash equivalents:    
Cash and cash equivalents - not held at a related party 17,200 6,982
Cash and cash equivalents - held at a related party 52,086 59,770
Total cash and cash equivalents 69,286 66,752
Investments and notes receivable 258,426 240,538
Restricted cash 727,471 688,193
Restricted cash – due to customers 128,515 187,121
Accrued interest receivable 489,395 430,385
Accounts receivable (net of allowance for doubtful accounts of $1,627 and $1,436, respectively) 61,394 37,863
Goodwill 158,456 138,759
Intangible assets, net 107,192 38,427
Property and equipment, net 299,837 248,051
Other assets 34,509 73,021
Fair value of derivative instruments 1,891 818
Total assets 23,898,402 23,964,435
Liabilities:    
Bonds and notes payable 21,227,349 21,356,573
Accrued interest payable 54,252 50,039
Other liabilities 237,459 198,252
Due to customers 128,515 187,121
Fair value of derivative instruments 5,601 7,063
Total liabilities 21,653,176 21,799,048
Commitments and contingencies
Nelnet, Inc. shareholders' equity:    
Preferred stock 0 0
Additional paid-in capital 448 521
Retained earnings 2,231,875 2,143,983
Accumulated other comprehensive earnings 3,022 4,617
Total Nelnet, Inc. shareholders' equity 2,235,753 2,149,529
Noncontrolling interests 9,473 15,858
Total equity 2,245,226 2,165,387
Total liabilities and equity 23,898,402 23,964,435
Common Class A [Member]    
Nelnet, Inc. shareholders' equity:    
Common stock 293 293
Common Class B [Member]    
Nelnet, Inc. shareholders' equity:    
Common stock 115 115
Supplemental information - assets and liabilities of concolidated education lending variable interest entities: [Member]    
Assets:    
Loans receivable (net of allowance for loan losses of $55,294 and $54,590, respectively) 21,633,845 21,909,476
Cash and cash equivalents:    
Restricted cash 682,446 641,994
Other assets 490,747 431,934
Liabilities:    
Bonds and notes payable 21,450,983 21,702,298
Other liabilities 186,611 168,637
Nelnet, Inc. shareholders' equity:    
Net assets of consolidated education lending variable interest entities $ 1,169,444 $ 1,112,469
v3.8.0.1
Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Allowance for loan losses $ 55,294 $ 54,590
Allowance for doubtful accounts $ 1,627 $ 1,436
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized shares (in shares) 50,000,000 50,000,000
Preferred stock, issued shares (in shares) 0 0
Preferred stock, outstanding shares (in shares) 0 0
Common Class A [Member]    
Par Value (in dollars per share) $ 0.01 $ 0.01
Shares Authorized (in shares) 600,000,000 600,000,000
Shares Issued (in shares) 29,289,689 29,341,517
Shares Outstanding (in shares) 29,289,689 29,341,517
Common Class B [Member]    
Par Value (in dollars per share) $ 0.01 $ 0.01
Shares Authorized (in shares) 60,000,000 60,000,000
Shares Issued (in shares) 11,468,587 11,468,587
Shares Outstanding (in shares) 11,468,587 11,468,587
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Interest income:    
Loan interest $ 197,723 $ 181,207
Investment interest 5,134 2,617
Total interest income 202,857 183,824
Interest expense:    
Interest on bonds and notes payable 135,550 106,899
Net interest income 67,307 76,925
Less provision for loan losses 4,000 1,000
Net interest income (loss) after provision for loan losses 63,307 75,925
Other income:    
Loan servicing and systems revenue 100,141 54,229
Education technology, services, and payment processing revenue 60,221 56,024
Communications revenue 9,189 5,106
Other income 18,198 12,632
Gain from debt repurchases 359 4,980
Derivative market value and foreign currency transaction adjustments and derivative settlements, net 66,799 (4,830)
Total other income 254,907 128,141
Cost of services:    
Cost to provide education technology, services, and payment processing services 13,683 12,790
Cost to provide communications services 3,717 1,954
Total cost of services 17,400 14,744
Operating expenses:    
Salaries and benefits 96,643 71,863
Depreciation and amortization 18,457 8,598
Loan servicing fees 3,136 6,025
Other expenses 33,417 26,161
Total operating expenses 151,653 112,647
Income before income taxes 149,161 76,675
Income tax expense 35,976 28,755
Net income (loss) 113,185 47,920
Net loss attributable to noncontrolling interests 740 2,106
Net income (loss) attributable to Nelnet, Inc. $ 113,925 $ 50,026
Earnings per common share:    
Net income attributable to Nelnet, Inc. shareholders - basic and diluted (in dollars per share) $ 2.78 $ 1.18
Weighted average common shares outstanding - basic and diluted (in shares) 40,950,528 42,291,857
v3.8.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 113,185 $ 47,920
Available-for-sale securities:    
Unrealized holding (losses) gains arising during period, net (1,061) 1,259
Reclassification adjustment for gains recognized in net income, net of losses (47) (331)
Income tax effect 256 (343)
Total other comprehensive (loss) income (852) 585
Comprehensive income 112,333 48,505
Comprehensive loss attributable to noncontrolling interests 740 2,106
Comprehensive income attributable to Nelnet, Inc. $ 113,073 $ 50,611
v3.8.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Preferred Stock [Member]
Common Stock [Member]
Common Class A [Member]
Common Stock [Member]
Common Class B [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Accumulated other comprehensive earnings [Member]
Noncontrolling interests [Member]
Balance (in shares) at Dec. 31, 2016   0 30,628,112 11,476,932        
Balance at Dec. 31, 2016 $ 2,070,925 $ 0 $ 306 $ 115 $ 420 $ 2,056,084 $ 4,730 $ 9,270
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of noncontrolling interests 12,626             12,626
Net income (loss) 47,920         50,026   2,106
Other comprehensive income 585           585  
Distribution to noncontrolling interests (310)             (310)
Cash dividend on Class A and Class B common stock (5,896)         (5,896)    
Issuance of common stock, net of forfeitures (in shares)     143,789          
Issuance of common stock, net of forfeitures 2,090   $ 1   2,089      
Compensation expense for stock based awards 1,096       1,096      
Repurchase of common stock (in shares)     (31,716)          
Repurchase of common stock (1,369)       (1,369)      
Balance (in shares) at Mar. 31, 2017   0 30,740,185.000 11,476,932.000        
Balance at Mar. 31, 2017 2,127,667 $ 0 $ 307 $ 115 2,236 2,100,214 5,315 19,480
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Impact of adoption of new accounting standards 1,264         2,007 (743)  
Balance (in shares) at Dec. 31, 2017   0 29,341,517 11,468,587        
Balance at Dec. 31, 2017 2,165,387 $ 0 $ 293 $ 115 521 2,143,983 4,617 15,858
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of noncontrolling interests 26             26
Net income (loss) 113,185         113,925   740
Other comprehensive income (852)           (852)  
Distribution to noncontrolling interests (19)             (19)
Cash dividend on Class A and Class B common stock (6,506)         (6,506)    
Issuance of common stock, net of forfeitures (in shares)     170,346          
Issuance of common stock, net of forfeitures 2,173   $ 2   2,171      
Compensation expense for stock based awards 1,087       1,087      
Repurchase of common stock (in shares)     (222,174)          
Repurchase of common stock (11,418)   $ (2)   (3,331) (8,085)    
Acquisition of noncontrolling interest (19,101)         (13,449)   (5,652)
Balance (in shares) at Mar. 31, 2018   0 29,289,689.000 11,468,587.000        
Balance at Mar. 31, 2018 $ 2,245,226 $ 0 $ 293 $ 115 $ 448 $ 2,231,875 $ 3,022 $ 9,473
v3.8.0.1
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Common Class A [Member]    
Dividends paid per common share (in dollars per share) $ 0.16 $ 0.14
Common Class B [Member]    
Dividends paid per common share (in dollars per share) $ 0.16 $ 0.14
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Statement of Cash Flows [Abstract]    
Net income (loss) attributable to Nelnet, Inc. $ 113,925 $ 50,026
Net loss attributable to noncontrolling interests (740) (2,106)
Net income (loss) 113,185 47,920
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:    
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 43,301 34,310
Loan discount accretion (11,691) (12,014)
Provision for loan losses 4,000 1,000
Derivative market value adjustment (60,033) (1,238)
Unrealized foreign currency transaction adjustment 0 4,690
Proceeds from clearinghouse to settle variation margin, net 62,689 0
Gain from debt repurchases (359) (4,980)
Gain from equity securities, net of losses (6,838) 0
Deferred income tax expense (benefit) 16,883 (1,753)
Non-cash compensation expense 1,161 1,121
Other (4,302) 242
Increase in loan accrued interest receivable (59,038) (1,490)
Decrease (increase) in accounts receivable 177 (282)
Decrease (increase) in other assets 49,415 (1,397)
Increase in accrued interest payable 4,213 750
(Decrease) increase in other liabilities (36,205) 6,954
Decrease in due to customers (58,606) (26,003)
Net cash provided by operating activities 57,952 47,830
Cash flows from investing activities, net of acquisition:    
Purchases of loans (610,855) (50,126)
Net proceeds from loan repayments, claims, capitalized interest, and other 863,270 953,698
Purchases of available-for-sale securities (28,164) (53,530)
Proceeds from sales of available-for-sale securities 21,951 37,809
Purchases of investments and issuance of notes receivable (16,370) (4,898)
Proceeds from investments and notes receivable 9,718 1,605
Purchases of property and equipment (28,068) (26,469)
Business acquisition, net of cash acquired (109,152) 0
Net cash provided by investing activities 102,330 858,089
Cash flows from financing activities:    
Payments on bonds and notes payable (901,008) (1,128,899)
Proceeds from issuance of bonds and notes payable 756,700 37,496
Payments of debt issuance costs (1,650) (364)
Dividends paid (6,506) (5,896)
Repurchases of common stock (11,418) (1,369)
Proceeds from issuance of common stock 274 0
Acquisition of noncontrolling interest (13,449) 0
Issuance of noncontrolling interests 0 12,600
Distribution to noncontrolling interests (19) (310)
Net cash used in financing activities (177,076) (1,086,742)
Net decrease in cash, cash equivalents, and restricted cash (16,794) (180,823)
Cash, cash equivalents, and restricted cash, beginning of period 942,066 1,170,317
Cash, cash equivalents, and restricted cash, end of period 925,272 989,494
Supplemental disclosures of cash flow information:    
Cash disbursements made for interest 114,243 88,066
Cash (refunds received) disbursements made for income taxes, net $ (30,569) $ 1,180
v3.8.0.1
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows Cash, Cash Equivalents And Restricted Cash Reconciliation - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Statement of Cash Flows [Abstract]        
Total cash and cash equivalents $ 69,286 $ 66,752 $ 108,160 $ 69,654
Restricted cash 727,471 688,193 787,635 980,961
Restricted cash – due to customers 128,515 187,121 93,699 119,702
Cash, cash equivalents, and restricted cash $ 925,272 $ 942,066 $ 989,494 $ 1,170,317
v3.8.0.1
Basis of Financial Reporting
3 Months Ended
Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Reporting
Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2017 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results for the year ending December 31, 2018. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the "2017 Annual Report").

Reporting Segment Name Changes

The Company changed the name of the Tuition Payment Processing and Campus Commerce operating segment to Education Technology, Services, and Payment Processing this quarter to better describe the evolution of services this operating segment provides. In addition, the Loan Systems and Servicing segment was retitled as Loan Servicing and Systems. As a result, the line items "tuition payment processing, school information, and campus commerce revenue" and "loan systems and servicing revenue" on the consolidated statements of income were changed to "education technology, services, and payment processing revenue" and "loan servicing and systems revenue," respectively.

Reclassifications

Certain amounts previously reported within the Company's consolidated balance sheet and statements of income have been reclassified to conform to the current period presentation. These reclassifications include:

Reclassifying certain non-customer receivables, which were previously included in "accounts receivable" to "other assets."

Reclassifying direct costs to provide services for education technology, services, and payment processing, which were previously included in "other expenses" to "cost to provide education technology, services, and payment processing services."

Reclassifying the line item "cost to provide communications services" on the statements of income from part of "operating expenses" and presenting such costs as part of "cost of services."

Accounting Standards Adopted in 2018

In the first quarter of 2018, the Company adopted the following new accounting guidance:
Revenue Recognition

In May 2014, the Financial Accounting Standards Board ("FASB") issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The Company adopted the standard effective January 1, 2018, using the full retrospective method, which required it to restate each prior reporting period presented. As a result, the Company has changed its accounting policy for revenue recognition as detailed in note 2, “Summary of Significant Accounting Policies and Practices.”
The most significant impact of the standard relates to identifying the Company's Education Technology, Services, and Payment Processing operating segment as the principal in its payment services transactions. As a result of this change, the Company will present the payment services revenue gross with the direct costs to provide these services presented separately. The majority of the Company's revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of the new guidance. Other than the payment services transactions discussed above, the Company’s other fee-based operating segments will recognize revenue consistent with historical revenue recognition patterns.
Impacts to Previously Reported Results
Adoption of the revenue recognition standard impacted the Company’s previously reported results on the consolidated statements of income as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Education technology, services, and payment processing revenue
$
43,620

 
12,404

 
56,024

 
Cost to provide education technology, services, and payment processing services

 
12,404

 
12,404

(a)

(a)
In addition to the impact of adopting the new revenue recognition standard, as discussed above, the Company reclassed other direct costs to provide education technology, services, and payment processing revenue which were previously reported as part of "other expenses" to "cost to provide education technology, services, and payment processing services."
Adoption of the new revenue recognition standard had no impact to the consolidated balance sheets or cash provided by or used in operating, financing, or investing activities on the consolidated statements of cash flows.
Equity Investments

In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The guidance requires equity investments with readily determinable fair values to be measured at fair value, with changes in the fair value recognized through net income (other than those equity investments accounted for under the equity method of accounting or those that result in consolidation of the investee). An entity may choose to measure equity investments without readily determinable fair values at fair value or use the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In addition, the impairment assessment is simplified by requiring a qualitative assessment to identify impairment.

The guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities with readily determinable fair values previously recognized in accumulated other comprehensive income; and along with a related clarifying update, was adopted by the Company as of January 1, 2018. Upon adoption, the Company recorded an immaterial cumulative-effect adjustment to retained earnings, accumulated other comprehensive earnings, and investments and notes receivable. Subsequent to the adoption, the Company is accounting for the majority of its equity investments without readily determinable fair values using the measurement alternative.

Other Comprehensive Income

In February 2018, the FASB issued guidance which allows a reclassification from accumulated other comprehensive earnings to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which became effective on January 1, 2018. This guidance is effective for fiscal years beginning after December 15, 2018, but early adoption is permitted in periods for which financial statements have not yet been issued. The Company elected to early adopt this guidance as of January 1, 2018. Upon adoption, the Company recorded an immaterial reclassification between accumulated other comprehensive earnings and retained earnings.

Restricted Cash

In November 2016, the FASB issued accounting guidance related to restricted cash. The new standard requires that the statement of cash flows present the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents, and a reconciliation of such total to amounts on the balance sheet. The Company adopted the standard effective January 1, 2018 using the retrospective transition method. Adoption of this standard impacted the Company's previously reported results on the consolidated statements of cash flows as follows:
 
Three months ended March 31, 2017
 
As previously reported
 
Impact of adoption
 
As restated
Decrease in due to customers
$

 
(26,003
)
 
(26,003
)
Net cash provided by operating activities
73,833

 
(26,003
)
 
47,830

Decrease in restricted cash
193,326

 
(193,326
)
 

Net cash provided by investing activities
1,051,415

 
(193,326
)
 
858,089

v3.8.0.1
Summary of Significant Accounting Policies and Practices
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Practices
Summary of Significant Accounting Policies and Practices

Except for the changes below, no material changes have been made to the Company’s significant accounting policies disclosed in note 3, Summary of Significant Accounting Policies and Practices, in its 2017 Annual Report.

Revenue Recognition

The Company applies the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers ("ASC Topic 606"), to its fee-based operating segments. The majority of the Company’s revenue earned in its Asset Generation and Management operating segment, including loan interest and derivative activity, is explicitly excluded from the scope of ASC Topic 606. The Company recognizes revenue under the core principle of ASC Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. Additional information related to the Company's revenue recognition of specific items is further provided below.

The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment.

Loan servicing and systems revenue - Loan servicing and systems revenue consists of the following items:

Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, or number of borrowers serviced for each customer. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company will perform various services during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the promise is substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.

Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue from remote hosted licenses is allocated to and recognized in the distinct service period, typically a month, and recognized as control transfers, and non-refundable up-front revenue is recognized ratably over the contract period as customers simultaneously consume and receive benefits. Loan conversion activities in certain customer contracts are capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to loan conversion activities is recognized at the point in time when the conversion is complete. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided.

Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously consume and receive benefits.





The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Government servicing - Nelnet
$
39,327

 
39,007

Government servicing - Great Lakes (a)
30,754

 

Private education and consumer loan servicing
13,101

 
5,817

FFELP servicing
7,691

 
4,077

Software services
7,589

 
4,337

 Outsourced services revenue and other
1,679

 
991

Loan servicing and systems revenue
$
100,141

 
54,229


(a)
Great Lakes Educational Loan Services, Inc. ("Great Lakes") was acquired by the Company on February 7, 2018. For additional information about the acquisition, see note 7.

Education technology, services, and payment processing revenue - Education technology, services, and payment processing revenue consists of the following items:

Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously consume and receive benefits.

Education technology and services - Education technology and services consideration is determined from individual contracts with customers and is determined based on the services selected by the customer. Services in K-12 private and faith based schools include (i) assistance with financial needs assessment, (ii) automating administrative processes such as admissions, online applications and enrollment services, scheduling, student billing, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. Services also include innovative education-focused technologies, services, and support solutions to help schools with the everyday challenges of collecting and processing commerce data. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.

Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously consume and receive benefits.

The following table provides disaggregated revenue by service offering:
 
Three months ended March 31,
 
2018
 
2017
Tuition payment plan services
$
23,043

 
21,787

Payment processing
19,926

 
18,945

Education technology and services
16,975

 
15,147

Other
277

 
145

Education technology, services, and payment processing revenue
$
60,221

 
56,024


Cost to provide education technology, services, and payment processing services is primarily associated with providing payment processing services. Interchange and payment network fees are charged by the card associations or payment networks. Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. Other costs included in cost to provide education technology, services, and payment processing services include salaries and benefits and outside professional services costs directly related to providing professional development and educational instruction services to teachers, school leaders, and students.

Communications revenue - Communications revenue is derived principally from internet, television, and telephone services and is billed as a flat fee in advance of providing the service. Revenues for usage-based services, such as access charges billed to other telephone carriers for originating and terminating long-distance calls on the Company's network, are billed in arrears. These are each considered distinct performance obligations. Revenue is recognized monthly for the consideration the Company has a right to invoice. The amount the Company has a right to invoice is an amount that corresponds directly with the value provided to the customer based on the performance completed. The Company recognizes revenue from these services in the period the services are rendered rather than billed. The Company records deferred revenue when revenue is recognized subsequent to invoicing. Earned but unbilled usage-based services are recorded in accounts receivable.

The following table provides disaggregated revenue by service offering and customer type:
 
Three months ended March 31,
 
2018
 
2017
Internet
$
4,696

 
2,202

Television
2,783

 
1,623

Telephone
1,689

 
1,262

Other
21

 
19

Communications revenue
$
9,189

 
5,106

 
 
 
 
Residential revenue
$
6,747

 
3,351

Business revenue
2,381

 
1,696

Other revenue
61

 
59

Communications revenue
$
9,189

 
5,106



Cost to provide communications services is primarily associated with television programming costs.  The Company has various contracts to obtain video programming from programming vendors whose compensation is typically based on a flat fee per customer. The cost of the right to exhibit network programming under such arrangements is recorded in the month the programming is available for exhibition.  Programming costs are paid each month based on calculations performed by the Company and are subject to periodic audits performed by the programmers. Other costs included in cost to provide communications services include connectivity, franchise, and other regulatory costs directly related to providing internet and voice services.

Other income - The following table provides the components of "other income" on the consolidated statements of income:
 
Three months ended March 31,
 
2018
 
2017
Realized and unrealized gains on investments, net
$
9,081

 
324

Borrower late fee income
2,983

 
3,319

Investment advisory fees
1,593

 
3,516

Management fee revenue
1,161

 

Peterson's revenue

 
2,836

Other
3,380

 
2,637

Other income
$
18,198

 
12,632



Borrower late fee income - Late fee income is earned by the education lending subsidiaries. Revenue is allocated to the distinct service period, based on when each transaction is completed.

Investment advisory fees - Investment advisory services are provided by the Company through an SEC-registered investment advisor subsidiary under various arrangements. The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved.

Management fee revenue - Management fee revenue is earned for technology and certain administrative support services provided to Great Lakes' former parent company. Revenue is allocated to the distinct service period, based on when each transaction is completed.

Peterson's revenue - The Company earned revenue related to digital marketing and content solution products and services under the brand name Peterson's. These products and services included test preparation study guides, school directories and databases, career exploration guides, on-line courses and test preparation, scholarship search and selection data, career planning information and guides, and on-line information about colleges and universities. Several content solutions services included services to connect students to colleges and universities, and were sold based on subscriptions. Revenue from sales of subscription services was recognized ratably over the term of the contract as it was earned. Subscription revenue received or receivable in advance of the delivery of services was included in deferred revenue. Revenue from the sale of print products was generally earned and recognized, net of estimated returns, upon shipment or delivery. All other digital marketing and content solutions revenue was recognized over the period in which services were provided to customers. On December 31, 2017, the Company sold Peterson's. The Company applied a practical expedient allowed for the retrospective comparative period which does not require the Company to restate revenue from contracts that began and were completed within the same annual reporting period.

Contract Balances - The following table provides information about contract liabilities from contracts with customers:
 
As of March 31, 2018
 
As of December 31, 2017
Deferred revenue, which is included in "other liabilities" on the consolidated balance sheets
$
22,715

 
32,276



Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is recognized subsequent to invoicing. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component.

Activity in the deferred revenue balance is shown below:
 
Three months ended March 31,
 
2018
 
2017
Balance, beginning of period
$
32,276

 
33,141

Deferral of revenue
17,050

 
15,918

Recognition of unearned revenue
(26,802
)
 
(24,878
)
Other
191

 
87

Balance, end of period
$
22,715

 
24,268



Assets Recognized from the Costs to Obtain a Contract with a Customer - The Company recognizes an asset for the incremental costs of obtaining a contract with a customer if it expects the benefit of those costs to be longer than one year. The Company has determined that certain sales incentive programs meet the requirements to be capitalized. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in “other assets” on the consolidated balance sheets.
v3.8.0.1
Loans Receivable and Allowance for Loan Losses
3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Loans Receivable and Allowance for Loan Losses
Loans Receivable and Allowance for Loan Losses

Loans receivable consisted of the following:
 
As of
 
As of
 
March 31, 2018
 
December 31, 2017
Federally insured student loans:
 
 
 
Stafford and other
$
4,363,159

 
4,418,881

Consolidation
17,098,389

 
17,302,725

Total
21,461,548

 
21,721,606

Private education loans
194,310

 
212,160

Consumer loans
77,855

 
62,111

 
21,733,713

 
21,995,877

Loan discount, net of unamortized loan premiums and deferred origination costs
(103,542
)
 
(113,695
)
Non-accretable discount
(12,847
)
 
(13,085
)
Allowance for loan losses:
 
 
 
Federally insured loans
(38,374
)
 
(38,706
)
Private education loans
(12,255
)
 
(12,629
)
Consumer loans
(4,665
)
 
(3,255
)
 
$
21,562,030

 
21,814,507


Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb losses, net of recoveries, inherent in the portfolio of loans. Activity in the allowance for loan losses is shown below.
 
Three months ended March 31, 2018
 
Balance at beginning of period
 
Provision for loan losses
 
Charge-offs
 
Recoveries
 
Other
 
Balance at end of period
Federally insured loans
$
38,706

 
2,000

 
(3,332
)
 

 
1,000

 
38,374

Private education loans
12,629

 

 
(539
)
 
165

 

 
12,255

Consumer loans
3,255

 
2,000

 
(595
)
 
5

 

 
4,665

 
$
54,590

 
4,000

 
(4,466
)
 
170

 
1,000

 
55,294

 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2017
Federally insured loans
$
37,268

 
2,000

 
(2,581
)
 

 

 
36,687

Private education loans
14,574

 
(1,000
)
 
(82
)
 
197

 
150

 
13,839

Consumer loans

 

 

 

 

 

 
$
51,842

 
1,000

 
(2,663
)
 
197

 
150

 
50,526


Student Loan Status and Delinquencies

Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.  The table below shows the Company’s loan delinquency amounts for federally insured and private education loans.
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2017
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
1,312,319

 
 
 
$
1,260,394

 
 
 
$
1,604,494

 
 
Loans in forbearance
1,650,913

 
 
 
1,774,405

 
 
 
2,125,344

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
16,368,668

 
88.5
%
 
16,477,004

 
88.2
%
 
17,690,083

 
87.5
%
Loans delinquent 31-60 days
669,490

 
3.6

 
682,586

 
3.7

 
732,433

 
3.6

Loans delinquent 61-90 days
426,696

 
2.3

 
374,534

 
2.0

 
493,876

 
2.4

Loans delinquent 91-120 days
252,659

 
1.4

 
287,922

 
1.5

 
275,711

 
1.4

Loans delinquent 121-270 days
570,538

 
3.1

 
629,480

 
3.4

 
763,030

 
3.8

Loans delinquent 271 days or greater
210,265

 
1.1

 
235,281

 
1.2

 
255,122

 
1.3

Total loans in repayment
18,498,316

 
100.0
%
 
18,686,807

 
100.0
%
 
20,210,255

 
100.0
%
Total federally insured loans
$
21,461,548

 
 

 
$
21,721,606

 
 

 
$
23,940,093

 
 
Private education loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
5,532

 
 
 
$
6,053

 
 
 
$
34,138

 
 
Loans in forbearance
2,574

 
 
 
2,237

 
 
 
3,811

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
178,976

 
96.1
%
 
196,720

 
96.5
%
 
213,081

 
97.4
%
Loans delinquent 31-60 days
1,630

 
0.9

 
1,867

 
0.9

 
1,355

 
0.6

Loans delinquent 61-90 days
1,110

 
0.6

 
1,052

 
0.5

 
1,402

 
0.6

Loans delinquent 91 days or greater
4,488

 
2.4

 
4,231

 
2.1

 
3,029

 
1.4

Total loans in repayment
186,204

 
100.0
%
 
203,870

 
100.0
%
 
218,867

 
100.0
%
Total private education loans
$
194,310

 
 

 
$
212,160

 
 

 
$
256,816

 
 
v3.8.0.1
Bonds and Notes Payable
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Bonds and Notes Payable
Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of March 31, 2018
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,132,994

 
1.85% - 3.99%
 
4/25/24 - 5/25/66
Bonds and notes based on auction
766,948

 
2.20% - 2.88%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
20,899,942

 
 
 
 
FFELP warehouse facilities
339,063

 
1.94% / 2.00%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
66,765

 
3.62%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
76,193

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
150,000

 
3.20%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.68%
 
9/15/61
Other borrowings
29,450

 
3.16% - 3.66%
 
3/31/23 - 12/15/45
 
21,581,794

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(354,445
)
 
 
 
 
Total
$
21,227,349

 
 
 
 
 
As of December 31, 2017
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
20,352,045

 
1.47% - 3.37%
 
8/25/21 - 2/25/66
Bonds and notes based on auction
780,829

 
2.09% - 2.69%
 
3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes
21,132,874

 
 
 
 
FFELP warehouse facilities
335,992

 
1.55% / 1.56%
 
11/19/19 / 5/31/20
Variable-rate bonds and notes issued in private education loan asset-backed securitization
74,717

 
3.30%
 
12/26/40
Fixed-rate bonds and notes issued in private education loan asset-backed securitization
82,647

 
3.60% / 5.35%
 
12/26/40 / 12/28/43
Unsecured line of credit
10,000

 
2.98%
 
12/12/21
Unsecured debt - Junior Subordinated Hybrid Securities
20,381

 
5.07%
 
9/15/61
Other borrowings
70,516

 
2.44% - 3.38%
 
1/12/18 - 12/15/45
 
21,727,127

 
 
 
 
Discount on bonds and notes payable and debt issuance costs
(370,554
)
 
 
 
 
Total
$
21,356,573

 
 
 
 



FFELP Warehouse Facilities

The Company funds a portion of its FFELP loan acquisitions using its FFELP warehouse facilities. Student loan warehousing allows the Company to buy and manage student loans prior to transferring them into more permanent financing arrangements.

As of March 31, 2018, the Company had two FFELP warehouse facilities as summarized below.
 
 
NFSLW-I
 
NHELP-II
 
Total
Maximum financing amount
 
$
500,000

 
500,000

 
1,000,000

Amount outstanding
 
49,623

 
289,440

 
339,063

Amount available
 
$
450,377

 
210,560

 
660,937

Expiration of liquidity provisions
 
September 20, 2019

 
May 31, 2018

 
 
Final maturity date
 
November 19, 2019

 
May 31, 2020

 
 
Maximum advance rates
 
92.0 - 98.0%

 
85.0 - 95.0%

 
 
Minimum advance rates
 
84.0 - 90.0%

 
85.0 - 95.0%

 
 
Advanced as equity support
 
$
2,402

 
25,269

 
27,671



Asset-Backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the first three months of 2018.
 
 
NSLT 2018-1
 
Total
 
 
Class A-1 Notes
 
Class A-2 Notes
 
 
Date securities issued
 
3/29/18
 
3/29/18
 
 
Total principal amount
 
$
98,000

 
375,750

 
473,750

Cost of funds
 
1-month LIBOR plus 0.32%
 
1-month LIBOR plus 0.76%
 
 
Final maturity date
 
5/25/66
 
5/25/66
 
 


Unsecured Line of Credit

The Company has a $350.0 million unsecured line of credit that has a maturity date of December 12, 2021.  As of March 31, 2018, $150.0 million was outstanding on the line of credit and $200.0 million was available for future use.

Debt Repurchases

During the three months ended March 31, 2018, the Company repurchased $12.9 million of its own FFELP asset backed securities. The Company paid $12.5 million to redeem these notes and recognized a gain of $0.4 million. The majority of the gain recognized by the Company from debt repurchases in the three months ended March 31, 2017 was from the Company's cash tender offer in which it repurchased $29.7 million in outstanding Hybrid Securities for $25.3 million in cash.
v3.8.0.1
Derivative Financial Instruments
3 Months Ended
Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

The Company uses derivative financial instruments primarily to manage interest rate risk and foreign currency exchange risk. Derivative instruments used as part of the Company's risk management strategy are further described in note 6 of the notes to consolidated financial statements included in the 2017 Annual Report. A tabular presentation of such derivatives outstanding as of March 31, 2018 and December 31, 2017 is presented below.

Basis Swaps

The following table summarizes the Company’s outstanding basis swaps in which the Company receives three-month LIBOR set discretely in advance and pays one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
 
 
 
As of March 31,
 
As of December 31,
 
 
2018
 
2017
Maturity
 
Notional amount
 
Notional amount
2018
 
$
1,750,000

 
4,250,000

2019
 
3,500,000

 
3,500,000

2022
 
1,000,000

 
1,000,000

2023
 
750,000

 

2024
 
250,000

 
250,000

2026
 
1,150,000

 
1,150,000

2027
 
375,000

 
375,000

2028
 
325,000

 
325,000

2029
 
100,000

 
100,000

2031
 
300,000

 
300,000

 
 
$
9,500,000

 
11,250,000


The weighted average rate paid by the Company on the 1:3 Basis Swaps as of March 31, 2018 and December 31, 2017 was one-month LIBOR plus 10.6 basis points and 12.5 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges

The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
 
 
As of March 31, 2018
 
As of December 31, 2017
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2018
 
$
1,250,000

 
1.08
%
 
$
1,350,000

 
1.07
%
2019
 
3,250,000

 
0.97

 
3,250,000

 
0.97

2020
 
1,500,000

 
1.01

 
1,500,000

 
1.01

2023
 
750,000

 
2.28

 
750,000

 
2.28

2024
 
300,000

 
2.28

 
300,000

 
2.28

2025
 
100,000

 
2.32

 
100,000

 
2.32

2027
 
50,000

 
2.32

 
50,000

 
2.32

2028
 
100,000

 
3.03

 

 

 
 
$
7,300,000

 
1.24
%
 
$
7,300,000

 
1.21
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

On August 20, 2014, the Company paid $9.1 million for an interest rate swap option to economically hedge loans earning fixed rate floor income. The interest rate swap option gives the Company the right, but not the obligation, to enter into a $250.0 million notional interest rate swap in which the Company would pay a fixed amount of 3.30% and receive discrete one-month LIBOR. If the interest rate swap option is exercised, the swap would become effective on August 21, 2019 and mature on August 21, 2024.

Interest Rate Caps

In June 2015, in conjunction with the entry into a $275.0 million private education loan warehouse facility, the Company paid $2.9 million for two interest rate cap contracts with a total notional amount of $275.0 million. The first interest rate cap has a notional amount of $125.0 million and a one-month LIBOR strike rate of 2.50%, and the second interest rate cap has a notional amount of $150.0 million and a one-month LIBOR strike rate of 4.99%. In the event that the one-month LIBOR rate rises above the applicable strike rate, the Company would receive monthly payments related to the spread difference. Both interest rate cap contracts have a maturity date of July 15, 2020. The private education loan warehouse facility was terminated by the Company on December 21, 2016. During the first quarter of 2017, the Company received $913,000 to terminate the interest rate cap contracts that were held in the private education loan warehouse legal entity and paid $929,000 to enter into new interest rate cap contracts with identical terms at Nelnet, Inc. (the parent company). The Company currently intends to keep these derivatives outstanding to partially mitigate a rise in interest rates and its impact on earnings related to its student loan portfolio earning a fixed rate.

Interest Rate Swaps – Unsecured Debt Hedges

As of March 31, 2018 and December 31, 2017, the Company had $20.4 million of unsecured Hybrid Securities outstanding. The interest rate on the Hybrid Securities through September 29, 2036 is equal to three-month LIBOR plus 3.375%, payable quarterly. The Company had the following derivatives outstanding as of March 31, 2018 and December 31, 2017 that are used to effectively convert the variable interest rate on a designated notional amount with respect to the Hybrid Securities to a fixed rate of 7.66%.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

Consolidated Financial Statement Impact Related to Derivatives

Balance Sheet

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of March 31, 2018
 
As of December 31, 2017
 
As of March 31, 2018
 
As of December 31, 2017
Interest rate swap option - floor income hedge
$
1,290

 
543

 

 

Interest rate caps
601

 
275

 

 

Interest rate swaps - hybrid debt hedges

 

 
5,601

 
7,063

Total
$
1,891

 
818

 
5,601

 
7,063



Offsetting of Derivative Assets/Liabilities

The following tables include the gross amounts related to the Company's derivative portfolio recognized in the consolidated balance sheets, reconciled to the net amount when excluding derivatives subject to enforceable master netting arrangements and cash collateral received/pledged.
 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative assets
 
Gross amounts of recognized assets presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral received
 
Net asset
Balance as of March 31, 2018
 
$
1,891

 

 

 
1,891

Balance as of December 31, 2017
 
818

 

 

 
818


 
 
 
 
Gross amounts not offset in the consolidated balance sheets
 
 
Derivative liabilities
 
Gross amounts of recognized liabilities presented in the consolidated balance sheets
 
Derivatives subject to enforceable master netting arrangement
 
Cash collateral pledged
 
Net asset (liability)
Balance as of March 31, 2018
 
$
(5,601
)
 

 
7,520

 
1,919

Balance as of December 31, 2017
 
(7,063
)
 

 
8,520

 
1,457


Income Statement Impact

The following table summarizes the components of "derivative market value and foreign currency transaction adjustments and derivative settlements, net" included in the consolidated statements of income.
 
Three months ended March 31,
 
2018
 
2017
Settlements:
 

 
 

1:3 basis swaps
$
(1,664
)
 
698

Interest rate swaps - floor income hedges
8,590

 
(120
)
Interest rate swaps - hybrid debt hedges
(160
)
 
(205
)
Cross-currency interest rate swap

 
(1,751
)
Total settlements - income (expense)
6,766

 
(1,378
)
Change in fair value:
 

 
 

1:3 basis swaps
13,297

 
(2,574
)
Interest rate swaps - floor income hedges
44,201

 
4,324

Interest rate swap option - floor income hedge
747

 
(884
)
Interest rate caps
326

 
(522
)
Interest rate swaps - hybrid debt hedges
1,462

 
419

Cross-currency interest rate swap

 
935

Other

 
(460
)
Total change in fair value - income (expense)
60,033

 
1,238

Re-measurement of Euro Notes (foreign currency transaction adjustment)

 
(4,690
)
Derivative market value and foreign currency transaction adjustments and derivative settlements, net - income (expense)
$
66,799

 
(4,830
)
v3.8.0.1
Investments and Notes Receivable
3 Months Ended
Mar. 31, 2018
Investments [Abstract]  
Investments and Notes Receivable
Investments and Notes Receivable

A summary of the Company's investments and notes receivable follows:
 
As of March 31, 2018
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
Investments (at fair value):
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities - available-for-sale (a)
$
78,203

 
4,558

 
(634
)
(b)
82,127

Equity securities
13,682

 
3,554

 
(151
)
 
17,085

Total investments (at fair value)
$
91,885

 
8,112

 
(785
)
 
99,212

 
 
 
 
 
 
 
 
Other Investments and Notes Receivable (not measured at fair value):
 
 
 
 
Venture capital:
 
 
 
 
 
 
 
Measurement alternative (c)
 
 
 
 
 
 
68,409

Equity method
 
 
 
 
 
 
16,175

Other
 
 
 
 
 
 
783

  Total venture capital
 
 
 
 
 
 
85,367

Real estate:
 
 
 
 
 
 
 
Equity method
 
 
 
 
 
 
18,850

Other
 
 
 
 
 
 
30,005

  Total real estate