NELNET INC, 10-Q/A filed on 8/15/2014
Amended Quarterly Report
Document and Entity Information Document (USD $)
6 Months Ended
Jun. 30, 2014
Jul. 31, 2014
Common Class A [Member]
Jul. 31, 2014
Common Class B [Member]
Document Information [Line Items]
 
 
 
Entity Registrant Name
NELNET INC 
 
 
Document Type
10-Q 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Common Stock, Shares Outstanding
 
34,807,168 
11,491,932 
Entity Public Float
$ 940,529,760.75 
 
 
Amendment Flag
false 
 
 
Entity Central Index Key
0001258602 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Accelerated Filer 
 
 
Entity Well-known Seasoned Issuer
No 
 
 
Document Period End Date
Jun. 30, 2014 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
Q2 
 
 
Consolidated Balance Sheets (unaudited) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
$ 29,342,430 
$ 25,907,589 
Cash and cash equivalents:
 
 
Cash and cash equivalents - not held at a related party
29,863 
8,537 
Cash and cash equivalents - held at a related party
62,236 
54,730 
Total cash and cash equivalents
92,099 
63,267 
Investments
141,489 
192,040 
Restricted cash and investments
862,034 
735,123 
Restricted cash - due to customers
98,005 
167,576 
Accrued interest receivable
360,075 
314,553 
Accounts receivable (net of allowance for doubtful accounts)
58,321 
56,072 
Goodwill
126,200 
117,118 
Intangible assets, net
44,849 
6,132 
Property and equipment, net
35,498 
33,829 
Other assets
141,989 
115,043 
Fair value of derivative instruments
68,033 
62,507 
Total assets
31,371,022 
27,770,849 
Liabilities:
 
 
Bonds and notes payable
29,492,560 
25,955,289 
Accrued interest payable
24,339 
21,725 
Other liabilities
160,444 
164,300 
Due to customers
98,005 
167,576 
Fair value of derivative instruments
15,546 
17,969 
Total liabilities
29,790,894 
26,326,859 
Nelnet, Inc. shareholders' equity:
 
 
Preferred stock
Common stock:
 
 
Additional paid-in capital
20,721 
24,887 
Retained earnings
1,552,988 
1,413,492 
Accumulated other comprehensive earnings
5,569 
4,819 
Total Nelnet, Inc. shareholders' equity
1,579,742 
1,443,662 
Noncontrolling interest
386 
328 
Total equity
1,580,128 
1,443,990 
Commitments and contingencies
 
 
Total liabilities and equity
31,371,022 
27,770,849 
Common Class A [Member]
 
 
Common stock:
 
 
Common stock
349 
349 
Total equity
349 
349 
Common Class B [Member]
 
 
Common stock:
 
 
Common stock
115 
115 
Total equity
115 
115 
Variable Interest Entity, Primary Beneficiary [Member]
 
 
Assets:
 
 
Student loans receivable (net of allowance for loan losses)
29,479,249 
26,020,629 
Cash and cash equivalents:
 
 
Restricted cash and investments
859,441 
732,771 
Other assets
358,646 
313,748 
Fair value of derivative instruments
33,797 
36,834 
Liabilities:
 
 
Bonds and notes payable
29,778,096 
26,244,222 
Other liabilities
335,992 
303,142 
Commitments and contingencies
 
 
Net assets of consolidated variable interest entities
$ 617,045 
$ 556,618 
Consolidated Balance Sheets (unaudited) (Parentheticals) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Allowance for loan losses
$ 52,467 
$ 55,122 
Allowance for doubtful accounts
$ 1,490 
$ 3,845 
Preferred stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Preferred stock, authorized shares
50,000,000 
50,000,000 
Preferred stock, issued shares
Preferred stock, outstanding shares
Common Class A [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
600,000,000 
600,000,000 
Shares Issued
34,859,786 
34,881,338 
Shares Outstanding
34,859,786 
34,881,338 
Common Class B [Member]
 
 
Par Value (in dollars per share)
$ 0.01 
$ 0.01 
Shares Authorized
60,000,000 
60,000,000 
Shares Issued
11,495,377 
Shares Outstanding
11,495,377 
Consolidated Statements of Income (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Interest income:
 
 
 
 
Loan interest
$ 175,466 
$ 158,063 
$ 332,362 
$ 313,602 
Investment interest
1,482 
1,483 
3,461 
3,100 
Total interest income
176,948 
159,546 
335,823 
316,702 
Interest expense:
 
 
 
 
Interest on bonds and notes payable
69,235 
58,127 
129,239 
116,485 
Net interest income
107,713 
101,419 
206,584 
200,217 
Less provision for loan losses
1,500 
5,000 
4,000 
10,000 
Net interest income after provision for loan losses
106,213 
96,419 
202,584 
190,217 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
66,460 
60,078 
131,217 
115,679 
Tuition payment processing and campus commerce revenue
21,834 
18,356 
47,069 
41,767 
Enrollment services revenue
20,145 
24,823 
42,156 
53,780 
Other income
15,315 
12,288 
33,446 
21,704 
Gain on sale of loans and debt repurchases
18 
7,355 
57 
8,762 
Derivative market value and foreign currency adjustments and derivative settlements, net
1,570 
40,188 
(2,695)
41,260 
Total other income (expense)
125,342 
163,088 
251,250 
282,952 
Operating expenses:
 
 
 
 
Salaries and benefits
53,888 
47,432 
106,372 
95,337 
Cost to provide enrollment services
13,311 
16,787 
27,786 
36,429 
Depreciation and amortization
5,214 
4,320 
9,997 
8,697 
Other
40,377 
34,365 
76,004 
69,306 
Total operating expenses
112,790 
102,904 
220,159 
209,769 
Income before income taxes
118,765 
156,603 
233,675 
263,400 
Income tax expense
(43,078)
(54,746)
(83,689)
(93,193)
Net income
75,687 
101,857 
149,986 
170,207 
Net income attributable to noncontrolling interest
693 
614 
1,206 
885 
Net income attributable to Nelnet, Inc.
$ 74,994 
$ 101,243 
$ 148,780 
$ 169,322 
Earnings per common share:
 
 
 
 
Net income attributable to Nelnet, Inc. shareholders - basic and diluted
$ 1.61 
$ 2.17 
$ 3.20 
$ 3.63 
Weighted average common shares outstanding - basic and diluted
46,529,377 
46,626,853 
46,528,651 
46,642,356 
Consolidated Statements of Comprehensive Income (unaudited) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Net income
$ 75,687 
$ 101,857 
$ 149,986 
$ 170,207 
Available-for-sale securities:
 
 
 
 
Unrealized holding gains (losses) arising during period, net
5,826 
(3,335)
9,501 
1,185 
Less reclassification adjustment for gains recognized in net income, net
(1,238)
(559)
(8,311)
(1,516)
Income tax effect
(1,698)
1,441 
(440)
115 
Total other comprehensive income (loss)
2,890 
(2,453)
750 
(216)
Comprehensive income
78,577 
99,404 
150,736 
169,991 
Comprehensive income attributable to noncontrolling interest
693 
614 
1,206 
885 
Comprehensive income attributable to Nelnet, Inc.
$ 77,884 
$ 98,790 
$ 149,530 
$ 169,106 
Consolidated Statements of Shareholders' Equity (unaudited) (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Preferred Stock [Member]
Common Class A [Member]
Common Class B [Member]
Additional paid-in capital [Member]
Retained earnings [Member]
Accumulated other comprehensive earnings [Member]
Noncontrolling interest [Member]
Balance at Mar. 31, 2013
$ 1,226,404 
$ 0 
$ 350 
$ 115 
$ 27,786 
$ 1,192,822 
$ 5,050 
$ 281 
Balance (in Shares) at Mar. 31, 2013
 
35,029,341 
11,495,377 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
101,243 
 
 
 
 
101,243 
 
 
Net income attributable to noncontrolling interest
614 
 
 
 
 
 
 
(614)
Net income
101,857 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(2,453)
 
 
 
 
 
(2,453)
 
Distribution to noncontrolling interest
782 
 
 
 
 
 
 
782 
Cash dividend on Class A and Class B common stock
(4,649)
 
 
 
 
(4,649)
 
 
Issuance of common stock, net of forfeitures
695 
 
694 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
24,390 
 
 
 
 
Compensation expense for stock based awards
808 
 
 
 
808 
 
 
 
Repurchase of common stock
(2,285)
 
(1)
(2,284)
 
 
 
Repurchase of common stock (in Shares)
 
 
(65,621)
 
 
 
 
Balance at Jun. 30, 2013
1,319,595 
350 
115 
27,004 
1,289,416 
2,597 
113 
Balance (in Shares) at Jun. 30, 2013
 
34,988,110 
11,495,377 
 
 
 
 
Balance at Dec. 31, 2012
1,165,213 
351 
115 
32,540 
1,129,389 
2,813 
Balance (in Shares) at Dec. 31, 2012
 
35,116,913 
11,495,377 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
169,322 
 
 
 
 
169,322 
 
 
Net income attributable to noncontrolling interest
885 
 
 
 
 
 
 
885 
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
 
 
 
 
 
 
Net income
170,207 
 
 
 
 
 
 
 
Other comprehensive income (loss)
(216)
 
 
 
 
 
(216)
 
Distribution to noncontrolling interest
(782)
 
 
 
 
 
 
(782)
Cash dividend on Class A and Class B common stock
(9,295)
 
 
 
 
(9,295)
 
 
Issuance of common stock, net of forfeitures
1,969 
 
1,967 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
150,353 
 
 
 
 
Compensation expense for stock based awards
1,483 
 
 
 
1,483 
 
 
 
Repurchase of common stock
(8,989)
 
(3)
(8,986)
 
 
 
Repurchase of common stock (in Shares)
 
 
(279,156)
 
 
 
 
Balance at Jun. 30, 2013
1,319,595 
350 
115 
27,004 
1,289,416 
2,597 
113 
Balance (in Shares) at Jun. 30, 2013
 
34,988,110 
11,495,377 
 
 
 
 
Balance at Dec. 31, 2013
1,443,990 
349 
115 
24,887 
1,413,492 
4,819 
328 
Balance (in Shares) at Dec. 31, 2013
 
34,881,338 
11,495,377 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
148,780 
 
 
 
 
148,780 
 
 
Net income attributable to noncontrolling interest
1,206 
 
 
 
 
 
 
(1,206)
Noncontrolling Interest, Increase from Sale of Parent Equity Interest
201 
 
 
 
 
 
 
201 
Net income
149,986 
 
 
 
 
 
 
 
Other comprehensive income (loss)
750 
 
 
 
 
 
750 
 
Distribution to noncontrolling interest
(1,349)
 
 
 
 
 
 
(1,349)
Cash dividend on Class A and Class B common stock
(9,284)
 
 
 
 
(9,284)
 
 
Issuance of common stock, net of forfeitures
3,128 
 
3,126 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
205,507 
 
 
 
 
Compensation expense for stock based awards
2,010 
 
 
 
2,010 
 
 
 
Repurchase of common stock
(9,304)
 
(2)
(9,302)
 
 
 
Conversion of Common Stock, Shares Converted
 
 
(3,445)
(3,445)
 
 
 
 
Conversion of Common Stock, Amount Converted
 
 
 
 
 
Repurchase of common stock (in Shares)
 
 
(230,504)
 
 
 
 
Balance at Jun. 30, 2014
1,580,128 
349 
115 
20,721 
1,552,988 
5,569 
386 
Balance (in Shares) at Jun. 30, 2014
 
34,859,786 
11,491,932 
 
 
 
 
Balance at Mar. 31, 2014
1,513,674 
350 
115 
27,138 
1,482,637 
2,679 
755 
Balance (in Shares) at Mar. 31, 2014
 
35,019,924 
11,491,932 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
74,994 
 
 
 
 
74,994 
 
 
Net income attributable to noncontrolling interest
693 
 
 
 
 
 
 
(693)
Net income
75,687 
 
 
 
 
 
 
 
Other comprehensive income (loss)
2,890 
 
 
 
 
 
2,890 
 
Distribution to noncontrolling interest
1,062 
 
 
 
 
 
 
1,062 
Cash dividend on Class A and Class B common stock
(4,643)
 
 
 
 
(4,643)
 
 
Issuance of common stock, net of forfeitures
883 
 
882 
 
 
 
Issuance of common stock, net of forfeitures (in Shares)
 
 
49,802 
 
 
 
 
Compensation expense for stock based awards
1,135 
 
 
 
1,135 
 
 
 
Repurchase of common stock
(8,436)
 
(2)
(8,434)
 
 
 
Repurchase of common stock (in Shares)
 
 
(209,940)
 
 
 
 
Balance at Jun. 30, 2014
$ 1,580,128 
$ 0 
$ 349 
$ 115 
$ 20,721 
$ 1,552,988 
$ 5,569 
$ 386 
Balance (in Shares) at Jun. 30, 2014
 
34,859,786 
11,491,932 
 
 
 
 
Consolidated Statements of Shareholders' Equity (unaudited) (Parentheticals)
3 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Common Class A [Member]
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
Common Class B [Member]
 
 
Dividends paid per common share
$ 0.10 
$ 0.10 
Consolidated Statements of Cash Flows (unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Net income attributable to Nelnet, Inc.
$ 148,780 
$ 169,322 
Net income attributable to noncontrolling interest
1,206 
885 
Net income
149,986 
170,207 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization, including debt discounts and student loan premiums and deferred origination costs
49,206 
39,160 
Student loan discount accretion
(21,087)
(17,769)
Provision for loan losses
4,000 
10,000 
Derivative market value adjustment
(7,950)
(43,729)
Foreign currency transaction adjustment
(1,798)
(14,072)
Payments to terminate and/or amend derivative instruments, net of proceeds
(3,819)
Gain on sale of loans
(34)
Gain from debt repurchases
(57)
(8,728)
Gain from sales of available-for-sale securities, net
(8,311)
(1,516)
Deferred income tax expense (benefit)
5,653 
21,244 
Non-cash compensation expense
2,082 
1,558 
Other
2,885 
(27)
(Increase) decrease in accrued interest receivable
(3,567)
10,980 
Increase in accounts receivable
(695)
(2,378)
(Increase) decrease in other assets
1,383 
566 
Increase (decrease) in accrued interest payable
1,432 
(10)
Decrease in other liabilities
(16,690)
(8,447)
Net cash provided by operating activities
156,472 
153,186 
Cash flows from investing activities, net of acquisitions:
 
 
Purchases of student loans and student loan residual interests
(2,843,061)
(1,158,245)
Purchases Of Student Loans From Related Party
(175)
Net proceeds from student loan repayments, claims, capitalized interest, participations, and other
1,712,350 
1,393,949 
Proceeds from sale of student loans
11,287 
Purchases of available-for-sale securities
(135,890)
(132,496)
Proceeds from sales of available-for-sale securities
195,938 
37,656 
Purchases of other investments, net
(27,011)
(3,893)
Repayments of notes and other receivables
3,821 
Purchases of property and equipment, net
(9,022)
(9,558)
Decrease (increase) in restricted cash
(27,247)
135,735 
Business acquisition, net of cash acquired
(45,583)
Net cash (used in) provided by investing activities
(1,175,874)
274,435 
Cash flows from financing activities, net of borrowings assumed:
 
 
Payments on bonds and notes payable
(1,821,723)
(3,538,437)
Proceeds from issuance of bonds and notes payable
2,901,639 
3,143,612 
Payments of debt issuance costs
(12,241)
(11,485)
Dividends paid
(9,284)
(9,295)
Repurchases of common stock
(9,304)
(8,989)
Proceeds from issuance of common stock
295 
303 
Issuance of noncontrolling interest
201 
Distribution to noncontrolling interest
(1,349)
(782)
Net cash (used in) provided by financing activities
1,048,234 
(425,068)
Net increase in cash and cash equivalents
28,832 
2,553 
Cash and cash equivalents, beginning of period
63,267 
66,031 
Cash and cash equivalents, end of period
92,099 
 
Supplemental disclosures of cash flow information:
 
 
Interest paid
97,668 
100,292 
Income taxes paid, net of refunds
83,706 
69,866 
Noncash activity:
 
 
Investing activity - student loans and other assets acquired
2,571,997 
Financing activity - borrowings and other liabilities assumed in acquisition of student loans
$ 2,444,874 
$ 0 
Basis of Financial Reporting
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, 2014 and for the three and six months ended June 30, 2014 and 2013 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2013 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, 2014 are not necessarily indicative of the results for the year ending December 31, 2014. 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, 2013 (the "2013 Annual Report").

Student Loans Receivable and Allowance for Loan Losses
Financing Receivables [Text Block]
Student Loans Receivable and Allowance for Loan Losses

Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2014
 
December 31, 2013
Federally insured loans
 
 
 
Stafford and other
$
6,479,493

 
6,686,626

Consolidation
23,032,622

 
19,363,577

Total
29,512,115

 
26,050,203

Non-federally insured loans
67,670

 
71,103

 
29,579,785

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(184,888
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(40,921
)
 
(43,440
)
Allowance for loan losses – non-federally insured loans
(11,546
)
 
(11,682
)
 
$
29,342,430

 
25,907,589



(a)
For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At June 30, 2014 and December 31, 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $29.9 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans.

Student Loan Residual Interests

On April 25, 2014, the Company acquired the ownership interest in three Federal Family Education Loan Program ("FFEL Program" or "FFELP") student loan securitization trusts giving the Company rights to the residual interest in a total of $2.6 billion of securitized federally insured loans and related assets. The three trusts include loans funded to term with $2.6 billion (par value) of notes payable that carry interest rates on a spread to LIBOR or are set and periodically reset via a "dutch auction".





The Company has consolidated these trusts on its consolidated balance sheet because management has determined the Company is the primary beneficiary of the trusts. Upon acquisition, the Company recorded all assets and liabilities of the trusts at fair value, resulting in the recognition of a student loan discount of $68.7 million and a notes payable discount of $163.7 million. These discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities. All other assets acquired and liabilities assumed (restricted cash, accrued interest receivable/payable, and other assets/liabilities) were recorded at cost, which approximates fair value.

Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance appropriate to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Balance at beginning of period
$
54,628

 
49,409

 
55,122

 
51,902

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
5,000

 
5,000

 
11,000

Non-federally insured loans
(500
)
 

 
(1,000
)
 
(1,000
)
Total provision for loan losses
1,500

 
5,000

 
4,000

 
10,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(4,138
)
 
(3,340
)
 
(7,769
)
 
(9,330
)
Non-federally insured loans
(598
)
 
(592
)
 
(1,019
)
 
(1,364
)
Total charge-offs
(4,736
)
 
(3,932
)
 
(8,788
)
 
(10,694
)
Recoveries - non-federally insured loans
339

 
442

 
710

 
810

Purchase (sale) of federally insured loans, net
150

 
275

 
250

 
(1,943
)
Transfer from repurchase obligation related to non-federally insured loans repurchased, net
586

 
417

 
1,173

 
1,536

Balance at end of period
$
52,467

 
51,611

 
52,467

 
51,611

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
40,921

 
39,848

 
40,921

 
39,848

Non-federally insured loans
11,546

 
11,763

 
11,546

 
11,763

Total allowance for loan losses
$
52,467

 
51,611

 
52,467

 
51,611


Repurchase Obligations

As of June 30, 2014, the Company had participated a cumulative amount of $117.1 million (par value) of non-federally insured loans to third parties. Loans participated under these agreements have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included in the Company’s consolidated balance sheets. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the participation interests in the event such loans become 60 days or 90 days delinquent.

In addition, in 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of June 30, 2014, the balance of this portfolio was $58.9 million (par value).

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
15,413

 
15,011

 
16,143

 
16,130

Loans repurchased
(586
)
 
(417
)
 
(1,316
)
 
(1,536
)
Ending balance
$
14,827

 
14,594

 
14,827

 
14,594


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 percent of non-federally insured loans that were delinquent 31 days or greater as of June 30, 2014, December 31, 2013, and June 30, 2013 was 12.6 percent, 12.7 percent, and 27.1 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

 
As of June 30, 2014
 
As of December 31, 2013
 
As of June 30, 2013
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
3,095,741

 
 
 
$
2,872,505

 
 
 
$
2,983,795

 
 
Loans in forbearance
3,593,891

 
 
 
3,370,025

 
 
 
3,320,101

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,164,660

 
84.0
%
 
16,337,922

 
82.5
%
 
15,355,379

 
83.6
%
Loans delinquent 31-60 days
1,026,046

 
4.5

 
967,318

 
4.9

 
776,577

 
4.2

Loans delinquent 61-90 days
674,918

 
3.0

 
550,333

 
2.8

 
531,339

 
2.9

Loans delinquent 91-120 days
376,068

 
1.5

 
390,791

 
2.0

 
291,732

 
1.6

Loans delinquent 121-270 days
1,133,527

 
5.0

 
1,117,936

 
5.6

 
1,016,571

 
5.5

Loans delinquent 271 days or greater
447,264

 
2.0

 
443,373

 
2.2

 
413,240

 
2.2

Total loans in repayment
22,822,483

 
100.0
%
 
19,807,673

 
100.0
%
 
18,384,838

 
100.0
%
Total federally insured loans
$
29,512,115

 
 

 
$
26,050,203

 
 

 
$
24,688,734

 
 
Bonds and Notes Payable
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, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
26,983,517

 
0.24% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,562,325

 
0.06% - 2.09%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
28,545,842

 
 
 
 
FFELP warehouse facilities
1,139,750

 
0.15% - 0.25%
 
1/17/16 - 6/11/17
Unsecured line of credit
65,000

 
1.65%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.61%
 
9/15/61
Other borrowings
63,068

 
1.66% - 5.10%
 
10/31/14 - 11/11/15
 
29,910,117

 
 
 
 
Discount on bonds and notes payable
(417,557
)
 
 
 
 
Total
$
29,492,560

 
 
 
 
 
As of December 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
23,479,893

 
0.25% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,134,250

 
0.07% - 2.17%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,614,143

 
 
 
 
FFELP warehouse facilities
1,396,344

 
0.17% - 0.25%
 
1/17/16 - 6/12/16
Unsecured line of credit
45,000

 
1.67%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.62%
 
9/15/61
Other borrowings
61,401

 
1.67% - 5.10%
 
4/11/14 - 11/11/15
 
26,213,345

 
 
 
 
Discount on bonds and notes payable
(258,056
)
 
 
 
 
Total
$
25,955,289

 
 
 
 


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 June 30, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NHELP-II
 
NFSLW-I (a)
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
659,668

 
92,803

 
387,279

 
1,139,750

Amount available
 
$
90,332

 
407,197

 
112,721

 
610,250

Expiration of liquidity provisions
 
February 5, 2015

 
September 30, 2014

 
June 11, 2015

 
 
Final maturity date
 
January 17, 2016

 
September 30, 2016

 
June 11, 2017

 
 
Maximum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
39,496

 
8,264

 
18,870

 
66,630


(a) On April 15, 2014, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.0 billion, change the expiration date for the liquidity provisions to June 11, 2015, and change the maturity date to June 11, 2017. As a result of the completion of the 2014-3 asset-backed securitization summarized in the table below, on April 30, 2014, the Company determined that it no longer needed the increased capacity on this warehouse facility, and the $500.0 million temporary increase was terminated on May 22, 2014.
Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the six months ended June 30, 2014.
 
 
2014-1
 
2014-2
 
2014-3
 
2014-4
 
2014-5
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2014-4 total
 
 
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
4/30/14
 
5/23/14
 
5/23/14
 
5/23/14
 
6/18/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
719,800

 
 
 
 
 
384,500

 
603,000

 
$
2,674,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
445,000

 
191,000

 
222,000

 
84,000

 
497,000

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
2,604,700

Bond discount
 

 

 

 
(535
)
 
(535
)
 

 

 

 

 

 
(535
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
2,604,165

Cost of funds (1-month LIBOR plus:)
 
0.57
%
 
0.28
%
 
0.60
%
 
0.85
%
 
 
 
0.58
%
 
0.54
%
 
0.95
%
 
 
 
0.55
%
 
 
Final maturity date
 
9/25/41

 
6/25/21

 
3/25/30

 
7/27/37

 
 
 
6/25/41

 
11/27/34

 
11/25/43

 
 
 
7/25/41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,500

 
 
 
 
 
 
 
12,000

 
19,100

 
 
 
 
 
9,500

 
16,000

 
70,100

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(1,467
)
 
 
 
 
 
(1,138
)
 
(1,232
)
 
(6,015
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
17,633

 

 
 
 
8,362

 
14,768

 
64,085

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
1.50
%
 
1.50
%
 
 
Final maturity date
 
10/25/47

 
 
 
 
 
 
 
6/25/41

 
10/25/50

 
 
 
 
 
9/25/51

 
5/25/49

 
 

Unsecured Line of Credit

On June 30, 2014, the Company's unsecured line of credit was amended to increase the line of credit from $275.0 million to $350.0 million and extend the maturity date from March 28, 2018 to June 30, 2019. In addition, the amendment revised certain covenants related to maintenance of a minimum consolidated net worth, limitations on recourse indebtedness and liens, and a limitation on the amount of non-federally insured student loans in the Company’s portfolio. As of June 30, 2014, the $350.0 million unsecured line of credit had an outstanding balance of $65.0 million and $285.0 million available for future use.

Debt Repurchases

The Company repurchased $0.2 million (par value) and $56.4 million (par value) of its own asset-backed debt securities during the three months ended June 30, 2014 and 2013, respectively, and recognized gains on such purchases of approximately $18,000 and $7.4 million, respectively. During the six months ended June 30, 2014 and 2013, the Company repurchased $1.6 million (par value) and $69.4 million (par value), respectively, of its own asset-backed debt securities and recognized gains on such purchases of approximately $57,000 and $8.7 million, respectively.
Derivative Financial Instruments
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 2013 Annual Report. A tabular presentation of such derivatives outstanding as of June 30, 2014 and December 31, 2013 is presented below.

Basis Swaps

The following table summarizes the Company’s basis swaps outstanding as of June 30, 2014 and December 31, 2013 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").
 
 
Maturity
 
Notional amount
 
 
2021
 
 
$
250,000

 
 
2022
 
 
1,900,000

 
 
2023
 
 
3,650,000

 
 
2024
 
 
250,000

 
 
2026
 
 
800,000

 
 
2028
 
 
100,000

 
 
2036
 
 
700,000

 
 
2039
(a)
 
150,000

 
 
2040
(b)
 
200,000

 
 
 
 
 
$
8,000,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2014 and December 31, 2013 was one-month LIBOR plus 3.5 basis points.
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, 2014 and December 31, 2013.
 
 
As of June 30, 2014
 
As of December 31, 2013
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2014
 
$
1,250,000

 
0.67
%
 
$
1,750,000

 
0.71
%
2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
1,250,000

 
0.86

 
 
$
4,350,000

 
0.81
%
 
$
4,850,000

 
0.81
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Interest Rate Swaps – Unsecured Debt Hedges

The Company had the following derivatives outstanding as of June 30, 2014 and December 31, 2013 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities ("Hybrid Securities") to a fixed rate.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.

Foreign Currency Exchange Risk

In 2006, the Company issued €352.7 million of student loan asset-backed Euro Notes (the "Euro Notes") with an interest rate based on a spread to the EURIBOR index. As a result of the Euro Notes, the Company is exposed to market risk related to fluctuations in foreign currency exchange rates between the U.S. dollar and Euro. The principal and accrued interest on these notes are re-measured at each reporting period and recorded in the Company’s consolidated balance sheet in U.S. dollars based on the foreign currency exchange rate on that date.

The Company entered into a cross-currency interest rate swap in connection with the issuance of the Euro Notes. Under the terms of the cross-currency interest rate swap, the Company receives from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and pays a spread to the LIBOR index based on a notional amount of $450.0 million. In addition, under the terms of this agreement, all principal payments on the Euro Notes will effectively be paid at the exchange rate in effect between the U.S. dollar and Euro as of the issuance of the notes.

The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instrument.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013 (b)
 
2014
 
2013 (b)
Re-measurement of Euro Notes
$
2,751

 
(14,691
)
 
1,798

 
14,072

Change in fair value of cross-currency interest rate swaps
(2,999
)
 
14,748

 
(3,037
)
 
(20,096
)
Total impact to consolidated statements of income - income (expense) (a)
$
(248
)
 
57

 
(1,239
)
 
(6,024
)
(a)
The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income.
(b)
The 2013 operating results include the re-measurement of an additional €420.5 million of student loan asset-backed Euro notes and the change in fair value of a related cross-currency interest rate swap entered into in connection with the issuance of such notes. In November 2013, the principal amount outstanding on the notes was changed to U.S. dollars and the cross-currency interest swap was terminated.
The re-measurement of the Euro-denominated bonds generally correlates with the change in fair value of the corresponding cross-currency interest rate swap. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swap if the two underlying indices (and related forward curve) do not move in parallel.

Consolidated Financial Statement Impact Related to Derivatives

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
June 30,
2014
 
December 31,
2013
 
June 30,
2014
 
December 31,
2013
1:3 basis swaps
$
31,510

 
18,490

 

 

Interest rate swaps - floor income hedges
2,726

 
7,183

 
10,849

 
15,849

Interest rate swaps - hybrid debt hedges

 

 
4,697

 
2,120

Cross-currency interest rate swap
33,797


36,834

 

 

Total
$
68,033

 
62,507

 
15,546

 
17,969



During the six months ended June 30, 2013, the Company terminated certain derivatives for gross proceeds and payments of $2.7 million and $6.5 million, respectively. There were no derivative terminations during the first six months of 2014.

Offsetting of Derivative Assets/Liabilities

The Company records derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain of the Company's derivative instruments are subject to right of offset provisions with counterparties. 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 (liability)
Balance as of June 30, 2014
 
$
68,033

 
(15,546
)
 
(323
)
 
52,164

Balance as of December 31, 2013
 
62,507

 
(15,437
)
 
(15,959
)
 
31,111


 
 
 
 
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, 2014
 
$
(15,546
)
 
15,546

 

 

Balance as of December 31, 2013
 
(17,969
)
 
15,437

 
3,630

 
1,098



The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
858

 
782

 
1,739

 
1,692

Interest rate swaps - floor income hedges
(6,974
)
 
(8,534
)
 
(13,924
)
 
(16,839
)
Interest rate swaps - hybrid debt hedges
(256
)
 
(512
)
 
(508
)
 
(1,157
)
Cross-currency interest rate swaps
158

 
(93
)
 
250

 
(237
)
Total settlements - expense
(6,214
)
 
(8,357
)
 
(12,443
)
 
(16,541
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
11,910

 
9,630

 
13,020

 
11,563

Interest rate swaps - floor income hedges
(2,813
)
 
33,408

 
545

 
42,830

Interest rate swaps - hybrid debt hedges
(1,065
)
 
5,450

 
(2,578
)
 
9,090

Cross-currency interest rate swaps
(2,999
)
 
14,748

 
(3,037
)
 
(20,096
)
Other

 

 

 
342

Total change in fair value - income (expense)
5,033

 
63,236

 
7,950

 
43,729

Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
2,751

 
(14,691
)
 
1,798

 
14,072

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
1,570

 
40,188

 
(2,695
)
 
41,260

Investments
Investments
Investments

A summary of the Company's investments and restricted investments follows:
 
As of June 30, 2014
 
As of December 31, 2013
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
124,556

 
7,090

 
(212
)
 
131,434

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,527

 
1,969

 
(7
)
 
3,489

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
126,083

 
9,059

 
(219
)
 
134,923

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
6,566

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments

 

 

 
$
141,489

 
 
 
 
 


 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
6,921

 
 
 
 
 
 
 
7,285


    
(a)
As of June 30, 2014, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of June 30, 2014, the stated maturities of the majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets.

The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Three months ended June 30,
 
Six months ended June 30,
Affected line item in the consolidated statements of income - income (expense):
 
2014
 
2013
 
2014
 
2013
Other income
 
$
1,238

 
559

 
8,311

 
1,516

Income tax expense
 
(458
)
 
(207
)
 
(3,075
)
 
(561
)
Net
 
$
780

 
352

 
5,236

 
955

Business Combination (Notes)
Business Combination Disclosure [Text Block]
Business Combination

The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.

Wilcomp Software, L.P. (d.b.a. RenWeb School Management Software) (“RenWeb”)

On June 3, 2014, the Company purchased 100 percent of the ownership interests of RenWeb. RenWeb provides school information systems for private and faith-based schools that help schools automate administrative processes such as admissions, scheduling, student billing, attendance, and grade book management. The combination of RenWeb’s school administration software and the Company’s tuition management and financial needs assessment services are expected to significantly increase the value of the Company’s offerings in this area, allowing the Company to deliver a comprehensive suite of solutions to schools.

The initial consideration paid by the Company for RenWeb was $44.0 million. In addition to the initial purchase price, additional payments are to be paid by the Company to the former owners of RenWeb based on certain operating results and other performance measures of RenWeb as defined in the purchase agreement. The contingent payments, if any, are payable when earned and the potential undiscounted amount of all future payments that the Company could be required to make under the contingent consideration arrangement is between $0 and $4.0 million. Such payments, if any, will be paid no later than January 2017. As of the acquisition date, the Company had accrued $2.3 million as additional consideration, which represents the estimated fair value of the contingent consideration arrangement.

The following table summarizes the initial estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair values of the assets and liabilities related to RenWeb are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343



The $37.2 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 18 years. The intangible assets that made up this amount included customer relationships of $25.5 million (20-year useful life), trade name of $6.4 million (20-year useful life), computer software of $4.9 million (5-year useful life), and non-competition agreements of $0.4 million (10-year useful life).
The $9.1 million of goodwill was assigned to the Tuition Payment Processing and Campus Commerce operating segment and is expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributable to anticipated synergies as discussed previously.

The proforma impacts of the acquisition on the Company's historical results prior to the acquisition were not material.
Intangible Assets Intangible Assets
Intangible Assets Disclosure [Text Block]
Intangible Assets

Intangible assets consist of the following:

 
Weighted average remaining useful life as of June 30, 2014 (months)
 
As of June 30, 2014
 
As of December 31, 2013
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $21,595 and $19,821, respectively)
223
 
$
29,884

 
6,132

Computer software (net of accumulated amortization of $634 and $0, respectively)
47
 
8,231

 

Trade names (net of accumulated amortization of $39 and $0, respectively)
239
 
6,383

 

Covenants not to compete (net of accumulated amortization of $3 and $0, respectively)
119
 
351

 

Total - amortizable intangible assets
192
 
$
44,849

 
6,132







The Company recorded amortization expense on its intangible assets of $1.4 million and $0.8 million during the three months ended June 30, 2014 and 2013, respectively, and $2.4 million and $1.7 million during the six months ended June 30, 2014 and 2013, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2014 the Company estimates it will record amortization expense as follows:

2014 (Q3 - Q4)
$
2,843

2015
6,402

2016
5,982

2017
4,406

2018
4,000

2019 and thereafter
21,216

 
$
44,849

Goodwill Goodwill
Goodwill Disclosure [Text Block]
Goodwill

The change in the carrying amount of goodwill by operating segment was as follows:

 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment Services
 
Asset Generation and Management
 
Total
Balance as of December 31, 2013
$
8,596

 
58,086

 
8,553

 
41,883

 
117,118

Goodwill acquired during the period

 
9,082

 

 

 
9,082

Balance as of June 30, 2014
$
8,596

 
67,168

 
8,553

 
41,883

 
126,200

Earnings per Common Share
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,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
74,263

 
731

 
74,994

 
100,339

 
904

 
101,243

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,075,869

 
453,508

 
46,529,377

 
46,210,571

 
416,282

 
46,626,853

Earnings per share - basic and diluted
$
1.61

 
1.61

 
1.61

 
2.17

 
2.17

 
2.17

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
147,388

 
1,392

 
148,780

 
167,868

 
1,454

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,093,314

 
435,337

 
46,528,651

 
46,241,277

 
401,079

 
46,642,356

Earnings per share - basic and diluted
$
3.20

 
3.20

 
3.20

 
3.63

 
3.63

 
3.63



Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation.
Segment Reporting
Segment Reporting
Segment Reporting

See note 13 of the notes to consolidated financial statements included in the 2013 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended June 30, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
9

 
3

 

 
12

 
175,562

 
2,036

 
(662
)
 
176,948

Interest expense

 

 

 

 
67,936

 
1,961

 
(662
)
 
69,235

Net interest income
9

 
3

 

 
12

 
107,626

 
75

 

 
107,713

Less provision for loan losses

 

 

 

 
1,500

 

 

 
1,500

Net interest income after provision for loan losses
9

 
3

 

 
12

 
106,126

 
75

 

 
106,213

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
66,460

 

 

 
66,460

 

 

 

 
66,460

Intersegment servicing revenue
13,800

 

 

 
13,800

 

 

 
(13,800
)
 

Tuition payment processing and campus commerce revenue

 
21,834

 

 
21,834

 

 

 

 
21,834

Enrollment services revenue

 

 
20,145

 
20,145

 

 

 

 
20,145

Other income

 

 

 

 
4,496

 
10,819

 

 
15,315

Gain on sale of loans and debt repurchases

 

 

 

 
18

 

 

 
18

Derivative market value and foreign currency adjustments, net

 

 

 

 
8,848

 
(1,064
)
 

 
7,784

Derivative settlements, net

 

 

 

 
(5,958
)
 
(256
)
 

 
(6,214
)
Total other income
80,260

 
21,834

 
20,145

 
122,239

 
7,404

 
9,499

 
(13,800
)
 
125,342

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
33,093

 
11,112

 
4,132

 
48,337

 
570

 
4,981

 

 
53,888

Cost to provide enrollment services

 

 
13,311

 
13,311

 

 

 

 
13,311

Depreciation and amortization
2,819

 
1,845

 
41

 
4,705

 

 
509

 

 
5,214

Other
19,815

 
2,956

 
1,844

 
24,615

 
8,845

 
6,917

 

 
40,377

Intersegment expenses, net
1,124

 
1,404

 
944

 
3,472

 
13,968

 
(3,640
)
 
(13,800
)
 

Total operating expenses
56,851

 
17,317

 
20,272

 
94,440

 
23,383

 
8,767

 
(13,800
)
 
112,790

Income before income taxes and corporate overhead allocation
23,418

 
4,520

 
(127
)
 
27,811

 
90,147

 
807

 

 
118,765

Corporate overhead allocation
(2,060
)
 
(687
)
 
(687
)
 
(3,434
)
 
(1,249
)
 
4,683

 

 

Income before income taxes
21,358

 
3,833

 
(814
)
 
24,377

 
88,898

 
5,490

 

 
118,765

Income tax (expense) benefit
(8,116
)
 
(1,456
)
 
309

 
(9,263
)
 
(33,781
)
 
(34
)
 

 
(43,078
)
Net income
13,242

 
2,377

 
(505
)
 
15,114

 
55,117

 
5,456

 

 
75,687

  Net income attributable to noncontrolling interest

 

 

 

 

 
693

 

 
693

Net income attributable to Nelnet, Inc.
$
13,242

 
2,377

 
(505
)
 
15,114

 
55,117

 
4,763

 

 
74,994

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
9

 

 

 
9

 
158,175

 
2,196

 
(834
)
 
159,546

Interest expense

 

 

 

 
56,920

 
2,041

 
(834
)
 
58,127

Net interest income
9

 

 

 
9

 
101,255

 
155

 

 
101,419

Less provision for loan losses

 

 

 

 
5,000

 

 

 
5,000

Net interest income after provision for loan losses
9

 

 

 
9

 
96,255

 
155

 

 
96,419

Other income:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
60,078

 

 

 
60,078

 

 

 

 
60,078

Intersegment servicing revenue
13,903

 

 

 
13,903

 

 

 
(13,903
)
 

Tuition payment processing and campus commerce revenue

 
18,356

 

 
18,356

 

 

 

 
18,356

Enrollment services revenue

 

 
24,823

 
24,823

 

 

 

 
24,823

Other income

 

 

 

 
3,030

 
9,258

 

 
12,288

Gain on sale of loans and debt repurchases

 

 

 

 
7,355

 

 

 
7,355

Derivative market value and foreign currency adjustments, net

 

 

 

 
43,096

 
5,449

 

 
48,545

Derivative settlements, net

 

 

 

 
(7,845
)
 
(512
)
 

 
(8,357
)
Total other income
73,981

 
18,356

 
24,823

 
117,160

 
45,636

 
14,195

 
(13,903
)
 
163,088

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,091

 
9,427

 
4,809

 
42,327

 
592

 
4,513

 

 
47,432

Cost to provide enrollment services

 

 
16,787

 
16,787

 

 

 

 
16,787

Depreciation and amortization
2,731

 
1,132

 
61

 
3,924

 

 
396

 

 
4,320

Other
18,031

 
2,192

 
1,243

 
21,466

 
7,923

 
4,976

 

 
34,365

Intersegment expenses, net
851

 
1,494

 
1,130

 
3,475

 
14,108

 
(3,680
)
 
(13,903
)
 

Total operating expenses
49,704

 
14,245

 
24,030

 
87,979

 
22,623

 
6,205

 
(13,903
)
 
102,904

Income before income taxes and corporate overhead allocation
24,286

 
4,111

 
793

 
29,190

 
119,268

 
8,145

 

 
156,603

Corporate overhead allocation
(1,513
)
 
(504
)
 
(504
)
 
(2,521
)
 
(1,081
)
 
3,602

 

 

Income before income taxes
22,773

 
3,607

 
289

 
26,669

 
118,187

 
11,747

 

 
156,603

Income tax (expense) benefit
(8,655
)
 
(1,370
)
 
(109
)
 
(10,134
)
 
(44,911
)
 
299

 

 
(54,746
)
Net income
14,118

 
2,237

 
180

 
16,535

 
73,276

 
12,046

 

 
101,857

  Net income attributable to noncontrolling interest

 

 

 

 

 
614

 

 
614

Net income attributable to Nelnet, Inc.
$
14,118

 
2,237

 
180

 
16,535

 
73,276

 
11,432

 

 
101,243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
20

 
3

 

 
23

 
332,565

 
4,694

 
(1,459
)
 
335,823

Interest expense

 

 

 

 
127,412

 
3,286

 
(1,459
)
 
129,239

Net interest income
20

 
3

 

 
23

 
205,153

 
1,408

 

 
206,584

Less provision for loan losses

 

 

 

 
4,000

 

 

 
4,000

Net interest income after provision for loan losses
20

 
3

 

 
23

 
201,153

 
1,408

 

 
202,584

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
131,217

 

 

 
131,217

 

 

 

 
131,217

Intersegment servicing revenue
28,021

 

 

 
28,021

 

 

 
(28,021
)
 

Tuition payment processing and campus commerce revenue

 
47,069

 

 
47,069

 

 

 

 
47,069

Enrollment services revenue

 

 
42,156

 
42,156

 

 

 

 
42,156

Other income

 

 

 

 
8,660

 
24,786

 

 
33,446

Gain on sale of loans and debt repurchases

 

 

 

 
57

 

 

 
57

Derivative market value and foreign currency adjustments, net

 

 

 

 
12,325

 
(2,577
)
 

 
9,748

Derivative settlements, net

 

 

 

 
(11,935
)
 
(508
)
 

 
(12,443
)
Total other income
159,238

 
47,069

 
42,156

 
248,463

 
9,107

 
21,701

 
(28,021
)
 
251,250

Operating expenses:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Salaries and benefits
65,400

 
21,139

 
8,512

 
95,051

 
1,179

 
10,142

 

 
106,372

Cost to provide enrollment services

 

 
27,786

 
27,786

 

 

 

 
27,786

Depreciation and amortization
5,608

 
3,273

 
88

 
8,969

 

 
1,028

 

 
9,997

Other
38,267

 
5,603

 
3,293

 
47,163

 
15,991

 
12,850

 

 
76,004

Intersegment expenses, net
2,207

 
2,824

 
1,950

 
6,981

 
28,339

 
(7,299
)
 
(28,021
)
 

Total operating expenses
111,482

 
32,839

 
41,629

 
185,950

 
45,509

 
16,721

 
(28,021
)
 
220,159

Income before income taxes and corporate overhead allocation
47,776

 
14,233

 
527

 
62,536

 
164,751

 
6,388

 

 
233,675

Corporate overhead allocation
(3,920
)
 
(1,307
)
 
(1,307
)
 
(6,534
)
 
(2,578
)
 
9,112

 

 

Income before income taxes
43,856

 
12,926

 
(780
)
 
56,002

 
162,173

 
15,500

 

 
233,675

Income tax (expense) benefit
(16,665
)
 
(4,911
)
 
296

 
(21,280
)
 
(61,625
)
 
(784
)
 

 
(83,689
)
Net income
27,191

 
8,015

 
(484
)
 
34,722

 
100,548

 
14,716

 

 
149,986

  Net income attributable to noncontrolling interest

 

 

 

 

 
1,206

 

 
1,206

Net income attributable to Nelnet, Inc.
$
27,191

 
8,015

 
(484
)
 
34,722

 
100,548

 
13,510

 

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
19

 

 

 
19

 
313,829

 
4,507

 
(1,653
)
 
316,702

Interest expense

 

 

 

 
114,402

 
3,736

 
(1,653
)
 
116,485

Net interest income
19

 

 

 
19

 
199,427

 
771

 

 
200,217

Less provision for loan losses

 

 

 

 
10,000

 

 

 
10,000

Net interest income after provision for loan losses
19

 

 

 
19

 
189,427

 
771

 

 
190,217

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
115,679

 

 

 
115,679

 

 

 

 
115,679

Intersegment servicing revenue
28,856

 

 

 
28,856

 

 

 
(28,856
)
 

Tuition payment processing and campus commerce revenue

 
41,767

 

 
41,767

 

 

 

 
41,767

Enrollment services revenue

 

 
53,780

 
53,780

 

 

 

 
53,780

Other income

 

 

 

 
7,226

 
14,478

 

 
21,704

Gain on sale of loans and debt repurchases

 

 

 

 
8,762

 

 

 
8,762

Derivative market value and foreign currency adjustments, net

 

 

 

 
48,371

 
9,430

 

 
57,801

Derivative settlements, net

 

 

 

 
(15,384
)
 
(1,157
)
 

 
(16,541
)
Total other income
144,535

 
41,767

 
53,780

 
240,082

 
48,975

 
22,751

 
(28,856
)
 
282,952

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
56,535

 
18,786

 
10,576

 
85,897

 
1,154

 
8,286

 

 
95,337

Cost to provide enrollment services

 

 
36,429

 
36,429

 

 

 

 
36,429

Depreciation and amortization
5,520

 
2,270

 
122

 
7,912

 

 
785

 

 
8,697

Other
36,421

 
4,479

 
2,894

 
43,794

 
15,436

 
10,076

 

 
69,306

Intersegment expenses, net
1,786

 
2,919

 
2,279

 
6,984

 
29,250

 
(7,378
)
 
(28,856
)
 

Total operating expenses
100,262

 
28,454

 
52,300

 
181,016

 
45,840

 
11,769

 
(28,856
)
 
209,769

Income before income taxes and corporate overhead allocation
44,292

 
13,313

 
1,480

 
59,085

 
192,562

 
11,753

 

 
263,400

Corporate overhead allocation
(2,510
)
 
(836
)
 
(836
)
 
(4,182
)
 
(1,793
)
 
5,975

 

 

Income before income taxes
41,782

 
12,477

 
644

 
54,903

 
190,769

 
17,728

 

 
263,400

Income tax (expense) benefit
(15,878
)
 
(4,741
)
 
(244
)
 
(20,863
)
 
(72,492
)
 
162

 

 
(93,193
)
Net income
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,890

 

 
170,207

  Net income attributable to noncontrolling interest

 

 

 

 

 
885

 

 
885

Net income attributable to Nelnet, Inc.
$
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,005

 

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Major Customer
Concentration Risk Disclosure [Text Block]
Major Customer

The Company is one of four private sector companies awarded a student loan servicing contract by the Department of Education (the "Department") in June 2009 to provide additional servicing capacity for loans owned by the Department, with new loan volume currently being allocated among the four servicers based on certain performance metrics established by the Department. The servicing contract was originally scheduled to expire in June 2014, with a five-year extension at the option of the Department. Effective as of June 17, 2014, the Department exercised its optional ordering period to extend the servicing contract for an additional five years through June 16, 2019, with loan servicing volume under the extended contract remaining subject to task orders issued by the Department. Revenue earned by the Company's Student Loan and Guaranty Servicing operating segment related to this contract was $31.0 million and $22.1 million for the three months ended June 30, 2014 and 2013, respectively, and $60.9 million and $42.5 million for the six months ended June 30, 2014 and 2013, respectively.
Related Party Transactions
Related Party Transactions
Related Party Transactions

The Company has entered into certain contractual arrangements with related parties as described in note 19 of the notes to consolidated financial statements included in the 2013 Annual Report.  The following provides an update for a related party transaction that occurred during the first half of 2014.

On January 1, 2014, the Company subparticipated the Company's participation interest in a loan receivable from an unrelated third party to Union Bank and Trust Company ("Union Bank"), an entity under common control with the Company. As of June 30, 2014, the participated portion of the loan was $1.7 million, with an obligation to fund an additional $1.4 million. As part of this agreement, Union Bank will pay the Company monthly servicing fees equal to 40 basis points on the participated portion of the outstanding principal balance of the loan.
Fair Value
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, 2014.
 
As of June 30, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$

 
137,567

 
137,567

 

 
188,279

 
188,279

Equity securities
3,489

 

 
3,489

 
3,282

 

 
3,282

Debt securities
433

 

 
433

 
479

 

 
479

Total investments
3,922

 
137,567

 
141,489

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments

 
68,033

 
68,033

 

 
62,507

 
62,507

Total assets
$
3,922

 
205,600

 
209,522

 
3,761

 
250,786

 
254,547

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$

 
15,546

 
15,546

 

 
17,969

 
17,969

Total liabilities
$

 
15,546

 
15,546

 

 
17,969

 
17,969


The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of June 30, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
30,629,142

 
29,342,430

 

 

 
30,629,142

Cash and cash equivalents
92,099

 
92,099

 
92,099

 

 

Investments
141,489

 
141,489

 
3,922

 
137,567

 

Restricted cash
855,113

 
855,113

 
855,113

 

 

Restricted cash – due to customers
98,005

 
98,005

 
98,005

 

 

Restricted investments
6,921

 
6,921

 
6,921

 

 

Accrued interest receivable
360,075

 
360,075

 

 
360,075

 

Derivative instruments
68,033

 
68,033

 

 
68,033

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
29,493,178

 
29,492,560

 

 
29,493,178

 

Accrued interest payable
24,339

 
24,339

 

 
24,339

 

Due to customers
98,005

 
98,005

 
98,005

 

 

Derivative instruments
15,546

 
15,546

 

 
15,546

 

 
As of December 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,641,383

 
25,907,589

 

 

 
26,641,383

Cash and cash equivalents
63,267

 
63,267

 
63,267

 

 

Investments
192,040

 
192,040

 
3,761

 
188,279

 

Restricted cash
727,838

 
727,838

 
727,838

 

 

Restricted cash – due to customers
167,576

 
167,576

 
167,576

 

 

Restricted investments
7,285

 
7,285

 
7,285

 

 

Accrued interest receivable
314,553

 
314,553

 

 
314,553

 

Derivative instruments
62,507

 
62,507

 

 
62,507

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,577,250

 
25,955,289

 

 
25,577,250

 

Accrued interest payable
21,725

 
21,725

 

 
21,725

 

Due to customers
167,576

 
167,576

 
167,576

 

 

Derivative instruments
17,969

 
17,969

 

 
17,969

 


 
The methodologies for estimating the fair value of financial assets and liabilities are described in note 20 of the notes to consolidated financial statements included in the 2013 Annual Report.
Legal Proceedings
Legal Proceedings
Legal Proceedings

General

The Company is subject to various legal proceedings that arise in the normal course of business, including the legal proceedings discussed below. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal consumer protection laws have been violated in the process of collecting loans or conducting other business activities, and disputes with other business entities. From time to time, lawsuits may be brought as, or subsequently amended to assert claims in the form of, putative class action cases.

In evaluating each of its legal proceedings, the Company considers many factors that involve significant risks and uncertainties inherent in the overall litigation process, including (i) the amount of damages and the nature of any other relief sought in the proceeding, if specified; (ii) whether the proceeding is at an early stage; (iii) the impact of discovery; (iv) whether novel or unsettled legal theories are at issue; (v) the outcome of pending motions or appeals; (vi) whether there are significant factual issues to be resolved; (vii) whether class action status is sought and the Company's views of the likelihood of a class being certified by the court and the ultimate size of the class; (viii) the jurisdiction in which the proceeding is pending; (ix) the Company's views of the merits of the claims and of the strength of the Company's defenses; and (x) the progress of any negotiations with opposing parties. In assessing whether a legal proceeding may be material, the Company considers these and other quantitative and qualitative factors, including whether disclosure of the proceeding might be important to a reader of the Company's financial statements in light of all of the information about the Company that is available to the reader.

Actions Requesting Certifications of Classes

Proceedings or complaints that involve or ask for certifications of classes generally expand the scope of legal defense costs, as well as alleged potential claim amounts. The Company is currently subject to legal proceedings in which the plaintiffs have made allegations that one or more putative classes should be certified by the applicable court. With respect to the three proceedings discussed below, it is significant to note that no putative class has actually been certified in any of these proceedings, the Company's position is that class certification would be inappropriate in each such proceeding, the Company has entered into agreements in principle to resolve two of the matters for immaterial amounts through a court-approved class-wide settlement, and the Company has been granted a motion for a summary judgment dismissing the case and upon any appeal intends to vigorously contest class certification in the remaining matter. The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made.

Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC

On January 4, 2011, a complaint against Peterson's Nelnet, LLC (“Peterson's”), a subsidiary of Nelnet, Inc. ("Nelnet"), was filed in the U.S. Federal District Court for the District of New Jersey (the “New Jersey District Court”). The complaint alleges that Peterson's sent six advertising faxes to the named plaintiff in 2008-2009 that were not the result of express invitation or permission granted by the plaintiff and did not include certain opt out language. The complaint also alleges that such faxes violated the Federal Telephone Consumer Protection Act (the “TCPA”), purportedly entitling the plaintiff to $500 per violation, trebled for willful violations for each of the six faxes. The complaint further alleges that Peterson's had sent putative class members more than 10,000 faxes that violated the TCPA, amounting to more than $5 million in statutory penalty damages and more than $15 million if trebled for willful violations. The complaint seeks to establish a class action. On September 13, 2013, the named plaintiff filed a motion for class certification, and on October 7, 2013, Peterson's filed a motion to dismiss the named plaintiff's motion for class certification. As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class. On January 23, 2014, Peterson's and the named plaintiff reached an agreement in principle whereby Peterson's would, without admitting any wrongdoing or liability, settle all claims in the lawsuit, including potential class action claims, for payment of an immaterial amount. The settlement agreement in principle is subject to finalization and court approval.

Than Zaw v. Nelnet, Inc.

On January 18, 2013, a Third Amended Complaint was served on Nelnet in connection with a lawsuit by Than Zaw against Nelnet (erroneously referred to in the lawsuit as Nelnet Business Solutions, Inc.) in the Superior Court of the State of California, Contra Costa County. The case has since been moved to the U.S. Federal District Court for the Northern District of California (the “California District Court”). The lawsuit was originally instituted on December 30, 2010, and alleges that Nelnet violated the California Fair Debt Collection Practices Act in its interactions with the plaintiff, a California resident. The plaintiff's Third Amended Complaint added additional allegations claiming that Nelnet violated Section 632 of the California Penal Code by allegedly recording one or more telephone calls to the plaintiff without the plaintiff's consent, and sought $5,000 in statutory damages per alleged violation. The Third Amended Complaint further alleged that Nelnet improperly recorded telephone calls to other California residents without such persons' consent, and sought to establish a class action with respect to the California Section 632 claim. As of the filing date of this report, the California District Court has not established, recognized, or certified a class. On October 16, 2013, Nelnet and the named plaintiff reached an agreement in principle whereby Nelnet would, without admitting any wrongdoing or liability, settle all claims in the lawsuit, including potential class action claims, for payment of an immaterial amount. The settlement agreement in principle is subject to finalization and court approval.

Grant Keating v. Peterson's Nelnet, LLC et al

On August 6, 2012, an Amended Complaint was served on Peterson's, CUnet, LLC (“CUnet”), a subsidiary of Nelnet, and on Nelnet (collectively, the "Keating Defendants"), in connection with a lawsuit by Grant Keating in the U.S. Federal District Court for the Northern District of Ohio (the “Ohio District Court”). The lawsuit was originally instituted on August 24, 2011, and alleges that the Keating Defendants sent an advertising text message to the named plaintiff in June 2011 using an automatic telephone dialing system, and without the plaintiff's express consent. The complaint also alleges that this text message violated the TCPA, purportedly entitling the plaintiff to $500, trebled for a willful violation. The complaint further alleges that the Keating Defendants sent putative class members similar text messages using an automatic telephone dialing system, without such purported class members' consent. The complaint seeks to establish a class action. On August 29, 2013, the Keating Defendants filed motions for summary judgment, and the named plaintiff filed a motion for class certification. On May 12, 2014, the Ohio District Court granted the Keating Defendants' motion for summary judgment, dismissing the case. On June 12, 2014, the named plaintiff filed a Notice of Intent to Appeal to the Circuit Court of Appeals. As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. The Keating Defendants intend to continue to defend themselves vigorously in this lawsuit.
Basis of Financial Reporting Significant Accounting Policies (Policies)
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, 2014 and for the three and six months ended June 30, 2014 and 2013 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2013 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, 2014 are not necessarily indicative of the results for the year ending December 31, 2014. 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, 2013 (the "2013 Annual Report").
Business Combination Business Combination Policy (Policies)
Business Combinations Policy [Policy Text Block]
The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings.
Student Loans Receivable and Allowance for Loan Losses (Tables)
Student loans receivable consisted of the following:
 
As of
 
As of
 
June 30, 2014
 
December 31, 2013
Federally insured loans
 
 
 
Stafford and other
$
6,479,493

 
6,686,626

Consolidation
23,032,622

 
19,363,577

Total
29,512,115

 
26,050,203

Non-federally insured loans
67,670

 
71,103

 
29,579,785

 
26,121,306

Loan discount, net of unamortized loan premiums and deferred origination costs (a)
(184,888
)
 
(158,595
)
Allowance for loan losses – federally insured loans
(40,921
)
 
(43,440
)
Allowance for loan losses – non-federally insured loans
(11,546
)
 
(11,682
)
 
$
29,342,430

 
25,907,589



(a)
For loans purchased where there is evidence of credit deterioration since the origination of the loan, the Company records a credit discount, separate from the allowance for loan losses, which is non-accretable to interest income. Remaining discounts and premiums for purchased loans are recognized in interest income over the remaining estimated lives of the loans. The Company continues to evaluate credit losses associated with purchased loans based on current information and changes in expectations to determine the need for any additional allowance for loan losses. At June 30, 2014 and December 31, 2013, "loan discount, net of unamortized loan premiums and deferred origination costs" included $29.9 million and $20.2 million, respectively, of non-accretable discount associated with purchased loans.

Activity in the Allowance for Loan Losses

The provision for loan losses represents the periodic expense of maintaining an allowance appropriate to absorb losses, net of recoveries, inherent in the portfolio of student loans. Activity in the allowance for loan losses is shown below.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Balance at beginning of period
$
54,628

 
49,409

 
55,122

 
51,902

Provision for loan losses:
 
 
 
 
 

 
 

Federally insured loans
2,000

 
5,000

 
5,000

 
11,000

Non-federally insured loans
(500
)
 

 
(1,000
)
 
(1,000
)
Total provision for loan losses
1,500

 
5,000

 
4,000

 
10,000

Charge-offs:
 

 
 

 
 

 
 

Federally insured loans
(4,138
)
 
(3,340
)
 
(7,769
)
 
(9,330
)
Non-federally insured loans
(598
)
 
(592
)
 
(1,019
)
 
(1,364
)
Total charge-offs
(4,736
)
 
(3,932
)
 
(8,788
)
 
(10,694
)
Recoveries - non-federally insured loans
339

 
442

 
710

 
810

Purchase (sale) of federally insured loans, net
150

 
275

 
250

 
(1,943
)
Transfer from repurchase obligation related to non-federally insured loans repurchased, net
586

 
417

 
1,173

 
1,536

Balance at end of period
$
52,467

 
51,611

 
52,467

 
51,611

 
 
 
 
 
 
 
 
Allocation of the allowance for loan losses:
 
 
 

 
 

 
 

Federally insured loans
$
40,921

 
39,848

 
40,921

 
39,848

Non-federally insured loans
11,546

 
11,763

 
11,546

 
11,763

Total allowance for loan losses
$
52,467

 
51,611

 
52,467

 
51,611


Repurchase Obligations

As of June 30, 2014, the Company had participated a cumulative amount of $117.1 million (par value) of non-federally insured loans to third parties. Loans participated under these agreements have been accounted for by the Company as loan sales. Accordingly, the participation interests sold are not included in the Company’s consolidated balance sheets. Per the terms of the servicing agreements, the Company’s servicing operations are obligated to repurchase loans subject to the participation interests in the event such loans become 60 days or 90 days delinquent.

In addition, in 2011, the Company sold a portfolio of non-federally insured loans for proceeds of $91.3 million (100% of par value).  The Company retained credit risk related to this portfolio and will pay cash to purchase back any loans which become 60 days delinquent. As of June 30, 2014, the balance of this portfolio was $58.9 million (par value).

The Company’s estimate related to its obligation to repurchase these loans is included in “other liabilities” in the Company’s consolidated balance sheets. The activity related to this accrual is detailed below.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Beginning balance
$
15,413

 
15,011

 
16,143

 
16,130

Loans repurchased
(586
)
 
(417
)
 
(1,316
)
 
(1,536
)
Ending balance
$
14,827

 
14,594

 
14,827

 
14,594


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 percent of non-federally insured loans that were delinquent 31 days or greater as of June 30, 2014, December 31, 2013, and June 30, 2013 was 12.6 percent, 12.7 percent, and 27.1 percent, respectively. The table below shows the Company’s federally insured student loan delinquency amounts.

 
As of June 30, 2014
 
As of December 31, 2013
 
As of June 30, 2013
Federally insured loans:
 
 
 
 
 
 
 
 
 
 
 
Loans in-school/grace/deferment
$
3,095,741

 
 
 
$
2,872,505

 
 
 
$
2,983,795

 
 
Loans in forbearance
3,593,891

 
 
 
3,370,025

 
 
 
3,320,101

 
 
Loans in repayment status:
 
 
 
 
 
 
 
 
 
 
 
Loans current
19,164,660

 
84.0
%
 
16,337,922

 
82.5
%
 
15,355,379

 
83.6
%
Loans delinquent 31-60 days
1,026,046

 
4.5

 
967,318

 
4.9

 
776,577

 
4.2

Loans delinquent 61-90 days
674,918

 
3.0

 
550,333

 
2.8

 
531,339

 
2.9

Loans delinquent 91-120 days
376,068

 
1.5

 
390,791

 
2.0

 
291,732

 
1.6

Loans delinquent 121-270 days
1,133,527

 
5.0

 
1,117,936

 
5.6

 
1,016,571

 
5.5

Loans delinquent 271 days or greater
447,264

 
2.0

 
443,373

 
2.2

 
413,240

 
2.2

Total loans in repayment
22,822,483

 
100.0
%
 
19,807,673

 
100.0
%
 
18,384,838

 
100.0
%
Total federally insured loans
$
29,512,115

 
 

 
$
26,050,203

 
 

 
$
24,688,734

 
 


Bonds and Notes payable (Tables)
The following tables summarize the Company’s outstanding debt obligations by type of instrument:
 
As of June 30, 2014
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
26,983,517

 
0.24% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,562,325

 
0.06% - 2.09%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
28,545,842

 
 
 
 
FFELP warehouse facilities
1,139,750

 
0.15% - 0.25%
 
1/17/16 - 6/11/17
Unsecured line of credit
65,000

 
1.65%
 
6/30/19
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.61%
 
9/15/61
Other borrowings
63,068

 
1.66% - 5.10%
 
10/31/14 - 11/11/15
 
29,910,117

 
 
 
 
Discount on bonds and notes payable
(417,557
)
 
 
 
 
Total
$
29,492,560

 
 
 
 
 
As of December 31, 2013
 
Carrying
amount
 
Interest rate
range
 
Final maturity
Variable-rate bonds and notes issued in asset-backed securitizations:
 
 
 
 
 
Bonds and notes based on indices
$
23,479,893

 
0.25% - 6.90%
 
5/25/18 - 8/26/52
Bonds and notes based on auction or remarketing
1,134,250

 
0.07% - 2.17%
 
5/1/28 - 11/26/46
Total variable-rate bonds and notes
24,614,143

 
 
 
 
FFELP warehouse facilities
1,396,344

 
0.17% - 0.25%
 
1/17/16 - 6/12/16
Unsecured line of credit
45,000

 
1.67%
 
3/28/18
Unsecured debt - Junior Subordinated Hybrid Securities
96,457

 
3.62%
 
9/15/61
Other borrowings
61,401

 
1.67% - 5.10%
 
4/11/14 - 11/11/15
 
26,213,345

 
 
 
 
Discount on bonds and notes payable
(258,056
)
 
 
 
 
Total
$
25,955,289

 
 
 
 
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 June 30, 2014, the Company had three FFELP warehouse facilities as summarized below.
 
 
NHELP-III
 
NHELP-II
 
NFSLW-I (a)
 
Total
Maximum financing amount
 
$
750,000

 
500,000

 
500,000

 
1,750,000

Amount outstanding
 
659,668

 
92,803

 
387,279

 
1,139,750

Amount available
 
$
90,332

 
407,197

 
112,721

 
610,250

Expiration of liquidity provisions
 
February 5, 2015

 
September 30, 2014

 
June 11, 2015

 
 
Final maturity date
 
January 17, 2016

 
September 30, 2016

 
June 11, 2017

 
 
Maximum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
92.0 - 98.0%

 
 
Minimum advance rates
 
92.2 - 95.0%

 
84.5 - 94.5%

 
84.0 - 90.0%

 
 
Advanced as equity support
 
$
39,496

 
8,264

 
18,870

 
66,630


(a) On April 15, 2014, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $1.0 billion, change the expiration date for the liquidity provisions to June 11, 2015, and change the maturity date to June 11, 2017. As a result of the completion of the 2014-3 asset-backed securitization summarized in the table below, on April 30, 2014, the Company determined that it no longer needed the increased capacity on this warehouse facility, and the $500.0 million temporary increase was terminated on May 22, 2014.
Asset-backed Securitizations

The following table summarizes the asset-backed securitization transactions completed during the six months ended June 30, 2014.
 
 
2014-1
 
2014-2
 
2014-3
 
2014-4
 
2014-5
 
Total
 
 
 
 
Class A-1 notes
 
Class A-2 notes
 
Class A-3 notes
 
2014-2 total
 
 
 
Class A-1 notes
 
Class A-2 notes
 
2014-4 total
 
 
 
 
Date securities issued
 
2/6/14
 
3/12/14
 
3/12/14
 
3/12/14
 
3/12/14
 
4/30/14
 
5/23/14
 
5/23/14
 
5/23/14
 
6/18/14
 
 
Total original principal amount
 
$
458,500

 
 
 
 
 
 
 
509,000

 
719,800

 
 
 
 
 
384,500

 
603,000

 
$
2,674,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A senior notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
445,000

 
191,000

 
222,000

 
84,000

 
497,000

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
2,604,700

Bond discount
 

 

 

 
(535
)
 
(535
)
 

 

 

 

 

 
(535
)
Issue price
 
$
445,000

 
191,000

 
222,000

 
83,465

 
496,465

 
700,700

 
267,500

 
107,500

 
375,000

 
587,000

 
2,604,165

Cost of funds (1-month LIBOR plus:)
 
0.57
%
 
0.28
%
 
0.60
%
 
0.85
%
 
 
 
0.58
%
 
0.54
%
 
0.95
%
 
 
 
0.55
%
 
 
Final maturity date
 
9/25/41

 
6/25/21

 
3/25/30

 
7/27/37

 
 
 
6/25/41

 
11/27/34

 
11/25/43

 
 
 
7/25/41

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class B subordinated notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total original principal amount
 
$
13,500

 
 
 
 
 
 
 
12,000

 
19,100

 
 
 
 
 
9,500

 
16,000

 
70,100

Bond discount
 
(1,132
)
 
 
 
 
 
 
 
(1,046
)
 
(1,467
)
 
 
 
 
 
(1,138
)
 
(1,232
)
 
(6,015
)
Issue price
 
$
12,368

 
 
 
 
 
 
 
10,954

 
17,633

 

 
 
 
8,362

 
14,768

 
64,085

Cost of funds (1-month LIBOR plus:)
 
1.50
%
 
 
 
 
 
 
 
1.50
%
 
1.50
%
 
 
 
 
 
1.50
%
 
1.50
%
 
 
Final maturity date
 
10/25/47

 
 
 
 
 
 
 
6/25/41

 
10/25/50

 
 
 
 
 
9/25/51

 
5/25/49

 
 

Derivative Financial Instruments (Tables)
The following table summarizes the Company’s basis swaps outstanding as of June 30, 2014 and December 31, 2013 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").
 
 
Maturity
 
Notional amount
 
 
2021
 
 
$
250,000

 
 
2022
 
 
1,900,000

 
 
2023
 
 
3,650,000

 
 
2024
 
 
250,000

 
 
2026
 
 
800,000

 
 
2028
 
 
100,000

 
 
2036
 
 
700,000

 
 
2039
(a)
 
150,000

 
 
2040
(b)
 
200,000

 
 
 
 
 
$
8,000,000

(c)
(a)This derivative has a forward effective start date in 2015.
(b)This derivative has a forward effective start date in 2020.
(c)
The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2014 and December 31, 2013 was one-month LIBOR plus 3.5 basis points
nterest 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, 2014 and December 31, 2013.
 
 
As of June 30, 2014
 
As of December 31, 2013
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
 
 
 
 
2014
 
$
1,250,000

 
0.67
%
 
$
1,750,000

 
0.71
%
2015
 
1,100,000

 
0.89

 
1,100,000

 
0.89

2016
 
750,000

 
0.85

 
750,000

 
0.85

2017
 
1,250,000

 
0.86

 
1,250,000

 
0.86

 
 
$
4,350,000

 
0.81
%
 
$
4,850,000

 
0.81
%

(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
The Company had the following derivatives outstanding as of June 30, 2014 and December 31, 2013 that are used to effectively convert the variable interest rate on a portion of the Junior Subordinated Hybrid Securities ("Hybrid Securities") to a fixed rate.
 
Maturity
 
Notional amount
 
Weighted average fixed rate paid by the Company (a)
2036
 
$
25,000

 
4.28
%
(a)
For all interest rate derivatives, the Company receives discrete three-month LIBOR.
Foreign Currency Exchange Risk

In 2006, the Company issued €352.7 million of student loan asset-backed Euro Notes (the "Euro Notes") with an interest rate based on a spread to the EURIBOR index. As a result of the Euro Notes, the Company is exposed to market risk related to fluctuations in foreign currency exchange rates between the U.S. dollar and Euro. The principal and accrued interest on these notes are re-measured at each reporting period and recorded in the Company’s consolidated balance sheet in U.S. dollars based on the foreign currency exchange rate on that date.

The Company entered into a cross-currency interest rate swap in connection with the issuance of the Euro Notes. Under the terms of the cross-currency interest rate swap, the Company receives from the counterparty a spread to the EURIBOR index based on a notional amount of €352.7 million and pays a spread to the LIBOR index based on a notional amount of $450.0 million. In addition, under the terms of this agreement, all principal payments on the Euro Notes will effectively be paid at the exchange rate in effect between the U.S. dollar and Euro as of the issuance of the notes.

The following table shows the income statement impact as a result of the re-measurement of the Euro Notes and the change in the fair value of the related derivative instrument.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013 (b)
 
2014
 
2013 (b)
Re-measurement of Euro Notes
$
2,751

 
(14,691
)
 
1,798

 
14,072

Change in fair value of cross-currency interest rate swaps
(2,999
)
 
14,748

 
(3,037
)
 
(20,096
)
Total impact to consolidated statements of income - income (expense) (a)
$
(248
)
 
57

 
(1,239
)
 
(6,024
)
(a)
The financial statement impact of the above items is included in "Derivative market value and foreign currency adjustments and derivative settlements, net" in the Company's consolidated statements of income.
(b)
The 2013 operating results include the re-measurement of an additional €420.5 million of student loan asset-backed Euro notes and the change in fair value of a related cross-currency interest rate swap entered into in connection with the issuance of such notes. In November 2013, the principal amount outstanding on the notes was changed to U.S. dollars and the cross-currency interest swap was terminated.
The re-measurement of the Euro-denominated bonds generally correlates with the change in fair value of the corresponding cross-currency interest rate swap. However, the Company will experience unrealized gains or losses related to the cross-currency interest rate swap if the two underlying indices (and related forward curve) do not move in parallel.
Consolidated Financial Statement Impact Related to Derivatives

The following table summarizes the fair value of the Company’s derivatives as reflected in the consolidated balance sheets:
 
Fair value of asset derivatives
 
Fair value of liability derivatives
 
As of
 
As of
 
As of
 
As of
 
June 30,
2014
 
December 31,
2013
 
June 30,
2014
 
December 31,
2013
1:3 basis swaps
$
31,510

 
18,490

 

 

Interest rate swaps - floor income hedges
2,726

 
7,183

 
10,849

 
15,849

Interest rate swaps - hybrid debt hedges

 

 
4,697

 
2,120

Cross-currency interest rate swap
33,797


36,834

 

 

Total
$
68,033

 
62,507

 
15,546

 
17,969



During the six months ended June 30, 2013, the Company terminated certain derivatives for gross proceeds and payments of $2.7 million and $6.5 million, respectively. There were no derivative terminations during the first six months of 2014.
Offsetting of Derivative Assets/Liabilities

The Company records derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain of the Company's derivative instruments are subject to right of offset provisions with counterparties. 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 (liability)
Balance as of June 30, 2014
 
$
68,033

 
(15,546
)
 
(323
)
 
52,164

Balance as of December 31, 2013
 
62,507

 
(15,437
)
 
(15,959
)
 
31,111


 
 
 
 
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, 2014
 
$
(15,546
)
 
15,546

 

 

Balance as of December 31, 2013
 
(17,969
)
 
15,437

 
3,630

 
1,098


The following table summarizes the effect of derivative instruments in the consolidated statements of income.
 
Three months ended June 30,
 
Six months ended June 30,
 
2014
 
2013
 
2014
 
2013
Settlements:
 

 
 

 
 

 
 

1:3 basis swaps
$
858

 
782

 
1,739

 
1,692

Interest rate swaps - floor income hedges
(6,974
)
 
(8,534
)
 
(13,924
)
 
(16,839
)
Interest rate swaps - hybrid debt hedges
(256
)
 
(512
)
 
(508
)
 
(1,157
)
Cross-currency interest rate swaps
158

 
(93
)
 
250

 
(237
)
Total settlements - expense
(6,214
)
 
(8,357
)
 
(12,443
)
 
(16,541
)
Change in fair value:
 

 
 

 
 

 
 

1:3 basis swaps
11,910

 
9,630

 
13,020

 
11,563

Interest rate swaps - floor income hedges
(2,813
)
 
33,408

 
545

 
42,830

Interest rate swaps - hybrid debt hedges
(1,065
)
 
5,450

 
(2,578
)
 
9,090

Cross-currency interest rate swaps
(2,999
)
 
14,748

 
(3,037
)
 
(20,096
)
Other

 

 

 
342

Total change in fair value - income (expense)
5,033

 
63,236

 
7,950

 
43,729

Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
2,751

 
(14,691
)
 
1,798

 
14,072

Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense)
$
1,570

 
40,188

 
(2,695
)
 
41,260


Investments (Tables)
A summary of the Company's investments and restricted investments follows:
 
As of June 30, 2014
 
As of December 31, 2013
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses (a)
 
Fair value
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized losses
 
Fair value
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities (b)
$
124,556

 
7,090

 
(212
)
 
131,434

 
171,931

 
7,111

 
(1,241
)
 
177,801

Equity securities
1,527

 
1,969

 
(7
)
 
3,489

 
1,502

 
1,783

 
(3
)
 
3,282

Total available-for-sale investments
$
126,083

 
9,059

 
(219
)
 
134,923

 
173,433

 
8,894

 
(1,244
)
 
181,083

Trading investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Student loan asset-backed and other debt securities
 
 
 
 
 
 
6,566

 
 
 
 
 
 
 
10,957

Total available-for-sale and trading investments

 

 

 
$
141,489

 
 
 
 
 


 
192,040

Restricted Investments (c):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guaranteed investment contracts - held-to-maturity
 
 
 
 
 
 
$
6,921

 
 
 
 
 
 
 
7,285


    
(a)
As of June 30, 2014, the Company considered the decline in market value of its available-for-sale investments to be temporary in nature and did not consider any of its investments other-than-temporarily impaired.

(b)
As of June 30, 2014, the stated maturities of the majority of the Company's student loan asset-backed and other debt securities classified as available-for-sale were greater than 10 years.

(c)
Restricted investments are included in "restricted cash and investments" in the Company's consolidated balance sheets.

The amounts reclassified from accumulated other comprehensive income related to the realized gains and losses on available-for-sale-securities is summarized below.
 
 
Three months ended June 30,
 
Six months ended June 30,
Affected line item in the consolidated statements of income - income (expense):
 
2014
 
2013
 
2014
 
2013
Other income
 
$
1,238

 
559

 
8,311

 
1,516

Income tax expense
 
(458
)
 
(207
)
 
(3,075
)
 
(561
)
Net
 
$
780

 
352

 
5,236

 
955

Business Combination Estimated Fair Value of Assets (Tables)
Fair Value, by Balance Sheet Grouping [Table Text Block]
The following table summarizes the initial estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair values of the assets and liabilities related to RenWeb are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343

The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of June 30, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
30,629,142

 
29,342,430

 

 

 
30,629,142

Cash and cash equivalents
92,099

 
92,099

 
92,099

 

 

Investments
141,489

 
141,489

 
3,922

 
137,567

 

Restricted cash
855,113

 
855,113

 
855,113

 

 

Restricted cash – due to customers
98,005

 
98,005

 
98,005

 

 

Restricted investments
6,921

 
6,921

 
6,921

 

 

Accrued interest receivable
360,075

 
360,075

 

 
360,075

 

Derivative instruments
68,033

 
68,033

 

 
68,033

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
29,493,178

 
29,492,560

 

 
29,493,178

 

Accrued interest payable
24,339

 
24,339

 

 
24,339

 

Due to customers
98,005

 
98,005

 
98,005

 

 

Derivative instruments
15,546

 
15,546

 

 
15,546

 

 
As of December 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,641,383

 
25,907,589

 

 

 
26,641,383

Cash and cash equivalents
63,267

 
63,267

 
63,267

 

 

Investments
192,040

 
192,040

 
3,761

 
188,279

 

Restricted cash
727,838

 
727,838

 
727,838

 

 

Restricted cash – due to customers
167,576

 
167,576

 
167,576

 

 

Restricted investments
7,285

 
7,285

 
7,285

 

 

Accrued interest receivable
314,553

 
314,553

 

 
314,553

 

Derivative instruments
62,507

 
62,507

 

 
62,507

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,577,250

 
25,955,289

 

 
25,577,250

 

Accrued interest payable
21,725

 
21,725

 

 
21,725

 

Due to customers
167,576

 
167,576

 
167,576

 

 

Derivative instruments
17,969

 
17,969

 

 
17,969

 

Intangible Assets Intangible Assets (Tables)
Intangible assets consist of the following:

 
Weighted average remaining useful life as of June 30, 2014 (months)
 
As of June 30, 2014
 
As of December 31, 2013
 
 
 
Amortizable intangible assets:
 
 
 
Customer relationships (net of accumulated amortization of $21,595 and $19,821, respectively)
223
 
$
29,884

 
6,132

Computer software (net of accumulated amortization of $634 and $0, respectively)
47
 
8,231

 

Trade names (net of accumulated amortization of $39 and $0, respectively)
239
 
6,383

 

Covenants not to compete (net of accumulated amortization of $3 and $0, respectively)
119
 
351

 

Total - amortizable intangible assets
192
 
$
44,849

 
6,132

2014 (Q3 - Q4)
$
2,843

2015
6,402

2016
5,982

2017
4,406

2018
4,000

2019 and thereafter
21,216

 
$
44,849

Goodwill Goodwill (Tables)
Schedule of Goodwill [Table Text Block]
The change in the carrying amount of goodwill by operating segment was as follows:

 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment Services
 
Asset Generation and Management
 
Total
Balance as of December 31, 2013
$
8,596

 
58,086

 
8,553

 
41,883

 
117,118

Goodwill acquired during the period

 
9,082

 

 

 
9,082

Balance as of June 30, 2014
$
8,596

 
67,168

 
8,553

 
41,883

 
126,200

Earnings per Common Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted
 
Three months ended June 30,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
74,263

 
731

 
74,994

 
100,339

 
904

 
101,243

 
 
 
 
 


 
 
 
 
 
 
Denominator:


 


 


 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,075,869

 
453,508

 
46,529,377

 
46,210,571

 
416,282

 
46,626,853

Earnings per share - basic and diluted
$
1.61

 
1.61

 
1.61

 
2.17

 
2.17

 
2.17

 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
2014
 
2013
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
 
Common shareholders
 
Unvested restricted stock shareholders
 
Total
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Nelnet, Inc.
$
147,388

 
1,392

 
148,780

 
167,868

 
1,454

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Weighted-average common shares outstanding - basic and diluted
46,093,314

 
435,337

 
46,528,651

 
46,241,277

 
401,079

 
46,642,356

Earnings per share - basic and diluted
$
3.20

 
3.20

 
3.20

 
3.63

 
3.63

 
3.63

Segment Reporting (Tables)
Schedule of Segment Reporting Information, by Segment

See note 13 of the notes to consolidated financial statements included in the 2013 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements.
 
Three months ended June 30, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
9

 
3

 

 
12

 
175,562

 
2,036

 
(662
)
 
176,948

Interest expense

 

 

 

 
67,936

 
1,961

 
(662
)
 
69,235

Net interest income
9

 
3

 

 
12

 
107,626

 
75

 

 
107,713

Less provision for loan losses

 

 

 

 
1,500

 

 

 
1,500

Net interest income after provision for loan losses
9

 
3

 

 
12

 
106,126

 
75

 

 
106,213

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
66,460

 

 

 
66,460

 

 

 

 
66,460

Intersegment servicing revenue
13,800

 

 

 
13,800

 

 

 
(13,800
)
 

Tuition payment processing and campus commerce revenue

 
21,834

 

 
21,834

 

 

 

 
21,834

Enrollment services revenue

 

 
20,145

 
20,145

 

 

 

 
20,145

Other income

 

 

 

 
4,496

 
10,819

 

 
15,315

Gain on sale of loans and debt repurchases

 

 

 

 
18

 

 

 
18

Derivative market value and foreign currency adjustments, net

 

 

 

 
8,848

 
(1,064
)
 

 
7,784

Derivative settlements, net

 

 

 

 
(5,958
)
 
(256
)
 

 
(6,214
)
Total other income
80,260

 
21,834

 
20,145

 
122,239

 
7,404

 
9,499

 
(13,800
)
 
125,342

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
33,093

 
11,112

 
4,132

 
48,337

 
570

 
4,981

 

 
53,888

Cost to provide enrollment services

 

 
13,311

 
13,311

 

 

 

 
13,311

Depreciation and amortization
2,819

 
1,845

 
41

 
4,705

 

 
509

 

 
5,214

Other
19,815

 
2,956

 
1,844

 
24,615

 
8,845

 
6,917

 

 
40,377

Intersegment expenses, net
1,124

 
1,404

 
944

 
3,472

 
13,968

 
(3,640
)
 
(13,800
)
 

Total operating expenses
56,851

 
17,317

 
20,272

 
94,440

 
23,383

 
8,767

 
(13,800
)
 
112,790

Income before income taxes and corporate overhead allocation
23,418

 
4,520

 
(127
)
 
27,811

 
90,147

 
807

 

 
118,765

Corporate overhead allocation
(2,060
)
 
(687
)
 
(687
)
 
(3,434
)
 
(1,249
)
 
4,683

 

 

Income before income taxes
21,358

 
3,833

 
(814
)
 
24,377

 
88,898

 
5,490

 

 
118,765

Income tax (expense) benefit
(8,116
)
 
(1,456
)
 
309

 
(9,263
)
 
(33,781
)
 
(34
)
 

 
(43,078
)
Net income
13,242

 
2,377

 
(505
)
 
15,114

 
55,117

 
5,456

 

 
75,687

  Net income attributable to noncontrolling interest

 

 

 

 

 
693

 

 
693

Net income attributable to Nelnet, Inc.
$
13,242

 
2,377

 
(505
)
 
15,114

 
55,117

 
4,763

 

 
74,994

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
9

 

 

 
9

 
158,175

 
2,196

 
(834
)
 
159,546

Interest expense

 

 

 

 
56,920

 
2,041

 
(834
)
 
58,127

Net interest income
9

 

 

 
9

 
101,255

 
155

 

 
101,419

Less provision for loan losses

 

 

 

 
5,000

 

 

 
5,000

Net interest income after provision for loan losses
9

 

 

 
9

 
96,255

 
155

 

 
96,419

Other income:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
60,078

 

 

 
60,078

 

 

 

 
60,078

Intersegment servicing revenue
13,903

 

 

 
13,903

 

 

 
(13,903
)
 

Tuition payment processing and campus commerce revenue

 
18,356

 

 
18,356

 

 

 

 
18,356

Enrollment services revenue

 

 
24,823

 
24,823

 

 

 

 
24,823

Other income

 

 

 

 
3,030

 
9,258

 

 
12,288

Gain on sale of loans and debt repurchases

 

 

 

 
7,355

 

 

 
7,355

Derivative market value and foreign currency adjustments, net

 

 

 

 
43,096

 
5,449

 

 
48,545

Derivative settlements, net

 

 

 

 
(7,845
)
 
(512
)
 

 
(8,357
)
Total other income
73,981

 
18,356

 
24,823

 
117,160

 
45,636

 
14,195

 
(13,903
)
 
163,088

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
28,091

 
9,427

 
4,809

 
42,327

 
592

 
4,513

 

 
47,432

Cost to provide enrollment services

 

 
16,787

 
16,787

 

 

 

 
16,787

Depreciation and amortization
2,731

 
1,132

 
61

 
3,924

 

 
396

 

 
4,320

Other
18,031

 
2,192

 
1,243

 
21,466

 
7,923

 
4,976

 

 
34,365

Intersegment expenses, net
851

 
1,494

 
1,130

 
3,475

 
14,108

 
(3,680
)
 
(13,903
)
 

Total operating expenses
49,704

 
14,245

 
24,030

 
87,979

 
22,623

 
6,205

 
(13,903
)
 
102,904

Income before income taxes and corporate overhead allocation
24,286

 
4,111

 
793

 
29,190

 
119,268

 
8,145

 

 
156,603

Corporate overhead allocation
(1,513
)
 
(504
)
 
(504
)
 
(2,521
)
 
(1,081
)
 
3,602

 

 

Income before income taxes
22,773

 
3,607

 
289

 
26,669

 
118,187

 
11,747

 

 
156,603

Income tax (expense) benefit
(8,655
)
 
(1,370
)
 
(109
)
 
(10,134
)
 
(44,911
)
 
299

 

 
(54,746
)
Net income
14,118

 
2,237

 
180

 
16,535

 
73,276

 
12,046

 

 
101,857

  Net income attributable to noncontrolling interest

 

 

 

 

 
614

 

 
614

Net income attributable to Nelnet, Inc.
$
14,118

 
2,237

 
180

 
16,535

 
73,276

 
11,432

 

 
101,243

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2014
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
20

 
3

 

 
23

 
332,565

 
4,694

 
(1,459
)
 
335,823

Interest expense

 

 

 

 
127,412

 
3,286

 
(1,459
)
 
129,239

Net interest income
20

 
3

 

 
23

 
205,153

 
1,408

 

 
206,584

Less provision for loan losses

 

 

 

 
4,000

 

 

 
4,000

Net interest income after provision for loan losses
20

 
3

 

 
23

 
201,153

 
1,408

 

 
202,584

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
131,217

 

 

 
131,217

 

 

 

 
131,217

Intersegment servicing revenue
28,021

 

 

 
28,021

 

 

 
(28,021
)
 

Tuition payment processing and campus commerce revenue

 
47,069

 

 
47,069

 

 

 

 
47,069

Enrollment services revenue

 

 
42,156

 
42,156

 

 

 

 
42,156

Other income

 

 

 

 
8,660

 
24,786

 

 
33,446

Gain on sale of loans and debt repurchases

 

 

 

 
57

 

 

 
57

Derivative market value and foreign currency adjustments, net

 

 

 

 
12,325

 
(2,577
)
 

 
9,748

Derivative settlements, net

 

 

 

 
(11,935
)
 
(508
)
 

 
(12,443
)
Total other income
159,238

 
47,069

 
42,156

 
248,463

 
9,107

 
21,701

 
(28,021
)
 
251,250

Operating expenses:
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Salaries and benefits
65,400

 
21,139

 
8,512

 
95,051

 
1,179

 
10,142

 

 
106,372

Cost to provide enrollment services

 

 
27,786

 
27,786

 

 

 

 
27,786

Depreciation and amortization
5,608

 
3,273

 
88

 
8,969

 

 
1,028

 

 
9,997

Other
38,267

 
5,603

 
3,293

 
47,163

 
15,991

 
12,850

 

 
76,004

Intersegment expenses, net
2,207

 
2,824

 
1,950

 
6,981

 
28,339

 
(7,299
)
 
(28,021
)
 

Total operating expenses
111,482

 
32,839

 
41,629

 
185,950

 
45,509

 
16,721

 
(28,021
)
 
220,159

Income before income taxes and corporate overhead allocation
47,776

 
14,233

 
527

 
62,536

 
164,751

 
6,388

 

 
233,675

Corporate overhead allocation
(3,920
)
 
(1,307
)
 
(1,307
)
 
(6,534
)
 
(2,578
)
 
9,112

 

 

Income before income taxes
43,856

 
12,926

 
(780
)
 
56,002

 
162,173

 
15,500

 

 
233,675

Income tax (expense) benefit
(16,665
)
 
(4,911
)
 
296

 
(21,280
)
 
(61,625
)
 
(784
)
 

 
(83,689
)
Net income
27,191

 
8,015

 
(484
)
 
34,722

 
100,548

 
14,716

 

 
149,986

  Net income attributable to noncontrolling interest

 

 

 

 

 
1,206

 

 
1,206

Net income attributable to Nelnet, Inc.
$
27,191

 
8,015

 
(484
)
 
34,722

 
100,548

 
13,510

 

 
148,780

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2013
 
Fee-Based
 
 
 
 
 
 
 
 
 
 
 
Student Loan and Guaranty Servicing
 
Tuition Payment Processing and Campus Commerce
 
Enrollment
Services
 
Total Fee-
Based
 
Asset
Generation and
Management
 
Corporate
Activity
and
Overhead
 
Eliminations
 
Total
Total interest income
$
19

 

 

 
19

 
313,829

 
4,507

 
(1,653
)
 
316,702

Interest expense

 

 

 

 
114,402

 
3,736

 
(1,653
)
 
116,485

Net interest income
19

 

 

 
19

 
199,427

 
771

 

 
200,217

Less provision for loan losses

 

 

 

 
10,000

 

 

 
10,000

Net interest income after provision for loan losses
19

 

 

 
19

 
189,427

 
771

 

 
190,217

Other income:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Loan and guaranty servicing revenue
115,679

 

 

 
115,679

 

 

 

 
115,679

Intersegment servicing revenue
28,856

 

 

 
28,856

 

 

 
(28,856
)
 

Tuition payment processing and campus commerce revenue

 
41,767

 

 
41,767

 

 

 

 
41,767

Enrollment services revenue

 

 
53,780

 
53,780

 

 

 

 
53,780

Other income

 

 

 

 
7,226

 
14,478

 

 
21,704

Gain on sale of loans and debt repurchases

 

 

 

 
8,762

 

 

 
8,762

Derivative market value and foreign currency adjustments, net

 

 

 

 
48,371

 
9,430

 

 
57,801

Derivative settlements, net

 

 

 

 
(15,384
)
 
(1,157
)
 

 
(16,541
)
Total other income
144,535

 
41,767

 
53,780

 
240,082

 
48,975

 
22,751

 
(28,856
)
 
282,952

Operating expenses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Salaries and benefits
56,535

 
18,786

 
10,576

 
85,897

 
1,154

 
8,286

 

 
95,337

Cost to provide enrollment services

 

 
36,429

 
36,429

 

 

 

 
36,429

Depreciation and amortization
5,520

 
2,270

 
122

 
7,912

 

 
785

 

 
8,697

Other
36,421

 
4,479

 
2,894

 
43,794

 
15,436

 
10,076

 

 
69,306

Intersegment expenses, net
1,786

 
2,919

 
2,279

 
6,984

 
29,250

 
(7,378
)
 
(28,856
)
 

Total operating expenses
100,262

 
28,454

 
52,300

 
181,016

 
45,840

 
11,769

 
(28,856
)
 
209,769

Income before income taxes and corporate overhead allocation
44,292

 
13,313

 
1,480

 
59,085

 
192,562

 
11,753

 

 
263,400

Corporate overhead allocation
(2,510
)
 
(836
)
 
(836
)
 
(4,182
)
 
(1,793
)
 
5,975

 

 

Income before income taxes
41,782

 
12,477

 
644

 
54,903

 
190,769

 
17,728

 

 
263,400

Income tax (expense) benefit
(15,878
)
 
(4,741
)
 
(244
)
 
(20,863
)
 
(72,492
)
 
162

 

 
(93,193
)
Net income
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,890

 

 
170,207

  Net income attributable to noncontrolling interest

 

 

 

 

 
885

 

 
885

Net income attributable to Nelnet, Inc.
$
25,904

 
7,736

 
400

 
34,040

 
118,277

 
17,005

 

 
169,322

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value (Tables)
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, 2014.
 
As of June 30, 2014
 
As of December 31, 2013
 
Level 1
 
Level 2
 
Total
 
Level 1
 
Level 2
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 


 
 
 
 
 
 
Student loan asset-backed securities
$

 
137,567

 
137,567

 

 
188,279

 
188,279

Equity securities
3,489

 

 
3,489

 
3,282

 

 
3,282

Debt securities
433

 

 
433

 
479

 

 
479

Total investments
3,922

 
137,567

 
141,489

 
3,761

 
188,279

 
192,040

Fair value of derivative instruments

 
68,033

 
68,033

 

 
62,507

 
62,507

Total assets
$
3,922

 
205,600

 
209,522

 
3,761

 
250,786

 
254,547

Liabilities:
 

 
 

 
 

 
 
 
 
 
 
Fair value of derivative instruments
$

 
15,546

 
15,546

 

 
17,969

 
17,969

Total liabilities
$

 
15,546

 
15,546

 

 
17,969

 
17,969


The following table summarizes the initial estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The fair values of the assets and liabilities related to RenWeb are subject to refinement as the Company completes its analysis relative to the fair values at the date of acquisition.
Cash and cash equivalents
 
$
326

Accounts receivable
 
961

Property and equipment
 
105

Other assets
 
22

Intangible assets
 
37,188

Excess cost over fair value of net assets acquired (goodwill)
 
9,082

Other liabilities
 
(1,341
)
Net assets acquired
 
$
46,343

The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:
 
As of June 30, 2014
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
30,629,142

 
29,342,430

 

 

 
30,629,142

Cash and cash equivalents
92,099

 
92,099

 
92,099

 

 

Investments
141,489

 
141,489

 
3,922

 
137,567

 

Restricted cash
855,113

 
855,113

 
855,113

 

 

Restricted cash – due to customers
98,005

 
98,005

 
98,005

 

 

Restricted investments
6,921

 
6,921

 
6,921

 

 

Accrued interest receivable
360,075

 
360,075

 

 
360,075

 

Derivative instruments
68,033

 
68,033

 

 
68,033

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
29,493,178

 
29,492,560

 

 
29,493,178

 

Accrued interest payable
24,339

 
24,339

 

 
24,339

 

Due to customers
98,005

 
98,005

 
98,005

 

 

Derivative instruments
15,546

 
15,546

 

 
15,546

 

 
As of December 31, 2013
 
Fair value
 
Carrying value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Student loans receivable
$
26,641,383

 
25,907,589

 

 

 
26,641,383

Cash and cash equivalents
63,267

 
63,267

 
63,267

 

 

Investments
192,040

 
192,040

 
3,761

 
188,279

 

Restricted cash
727,838

 
727,838

 
727,838

 

 

Restricted cash – due to customers
167,576

 
167,576

 
167,576

 

 

Restricted investments
7,285

 
7,285

 
7,285

 

 

Accrued interest receivable
314,553

 
314,553

 

 
314,553

 

Derivative instruments
62,507

 
62,507

 

 
62,507

 

Financial liabilities:
 

 
 

 
 
 
 
 
 
Bonds and notes payable
25,577,250

 
25,955,289

 

 
25,577,250

 

Accrued interest payable
21,725

 
21,725

 

 
21,725

 

Due to customers
167,576

 
167,576

 
167,576

 

 

Derivative instruments
17,969

 
17,969

 

 
17,969

 

Student Loans Receivable (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Mar. 31, 2014
Dec. 31, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
$ 52,467 
$ 54,628 
$ 55,122 
$ 51,611 
$ 49,409 
$ 51,902 
Student loans receivable
29,342,430 
 
25,907,589 
 
 
 
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
40,921 
 
 
39,848 
 
 
Non-federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Allowance for loan losses
11,546 
 
 
11,763 
 
 
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
29,579,785 
 
26,121,306 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
184,888 
 
158,595 
 
 
 
Student loans receivable
29,342,430 
 
25,907,589 
 
 
 
held for investment [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
29,512,115 
 
26,050,203 
 
 
 
Allowance for loan losses
40,921 
 
43,440 
 
 
 
held for investment [Member] |
Non-federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
67,670 
 
71,103 
 
 
 
Allowance for loan losses
11,546 
 
11,682 
 
 
 
held for investment [Member] |
Stafford and Other [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
6,479,493 
 
6,686,626 
 
 
 
held for investment [Member] |
Consolidation Loans [Member] |
Federally insured loans [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Student loans receivable, gross
23,032,622 
 
19,363,577 
 
 
 
Non-accretable discount [Member] |
held for investment [Member]
 
 
 
 
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Loan discount, net of unamortized loan premiums and deferred origination costs
$ 30,000 
 
$ 20,200 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Residual Interests (Details) (USD $)
3 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2014
Purchase of residual interest [Member]
Jun. 30, 2014
Discount on bonds and notes payable [Member]
Dec. 31, 2013
Discount on bonds and notes payable [Member]
Jun. 30, 2014
Discount on bonds and notes payable [Member]
Purchase of residual interest [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
 
 
 
 
Financing Receivable, Significant Purchases
 
 
$ 2,600,000,000 
 
 
 
Debt and Capital Lease Obligations
29,492,560,000 
25,955,289,000 
2,600,000,000 
(417,557,000)
(258,056,000)
163,700,000 
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Other
 
 
$ 68,700,000 
 
 
 
Student Loans Receivable and Allowance for Loan Losses Allowance for Loan Losses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Allowance for loan losses - balance
$ 54,628 
$ 49,409 
$ 55,122 
$ 51,902 
Provision for loan losses
1,500 
5,000 
4,000 
10,000 
Charge-offs
(4,736)
(3,932)
(8,788)
(10,694)
Recoveries - non-federally insured loans
339 
442 
710 
810 
Purchase (sale) of federally insured loans and other, net
150 
275 
250 
(1,943)
Transfer from repurchase obligation related to non-federally insured loans purchased, net
586 
417 
1,173 
1,536 
Allowance for loan losses - balance
52,467 
51,611 
52,467 
51,611 
Federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
2,000 
5,000 
5,000 
11,000 
Charge-offs
(4,138)
(3,340)
(7,769)
(9,330)
Allowance for loan losses - balance
40,921 
39,848 
40,921 
39,848 
Non-federally insured loans [Member]
 
 
 
 
Financing Receivable, Allowance for Credit Losses [Roll Forward]
 
 
 
 
Provision for loan losses
(500)
(1,000)
(1,000)
Charge-offs
(598)
(592)
(1,019)
(1,364)
Allowance for loan losses - balance
$ 11,546 
$ 11,763 
$ 11,546 
$ 11,763 
Student Loans Receivable and Allowance for Loan Losses Repurchase Obligations (Details) (USD $)
3 Months Ended 6 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Jun. 30, 2014
Cumulative non-federally insured loans participated subject to repurchase agreement [Member]
Dec. 31, 2011
Non-federally insured loans sold subject to repurchase agreement [Member]
Jun. 30, 2014
Non-federally insured loans sold subject to repurchase agreement [Member]
Repurchase Obligation [Line Items]
 
 
 
 
 
 
 
 
Cumulative amount of participated non-federally insured student loans
 
 
 
 
 
$ 117,100,000 
 
 
Days delinquent to trigger repurchase range, minimum
 
 
 
 
 
60 days 
 
 
Days delinquent to trigger repurchase range, maximum
 
 
 
 
 
90 days 
 
 
Proceeds from sale of non-federally insured student loans subject to repurchase agreements
 
 
 
 
 
 
91,300,000 
 
Percent of par value of non-federally insured student loans subject to repurchase agreements
 
 
 
 
 
 
100.00% 
 
Days delinquent to trigger repurchase
 
 
 
 
 
 
60 days 
 
Change in Repurchase Obligation [Roll Forward]
 
 
 
 
 
 
 
 
Beginning balance
15,413,000 
15,011,000 
16,143,000 
16,130,000 
 
 
 
 
Transfer to the Allowance for Loan Losses Related to Loans Sold or Purchased and other, net
586,000 
417,000 
1,316,000 
1,536,000 
 
 
 
 
Ending balance
14,827,000 
14,594,000 
14,827,000 
14,594,000 
 
 
 
 
Student loans receivable
$ 29,342,430,000 
 
$ 29,342,430,000 
 
$ 25,907,589,000 
 
 
$ 58,900,000 
Student Loans Receivable and Allowance for Loan Losses Student Loan Status and Delinquency (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2013
Federally insured loans, excluding rehabiliation loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans in-school/grace/deferment
$ 3,095,741 
$ 2,872,505 
$ 2,983,795 
Loans in forbearance
3,593,891 
3,370,025 
3,320,101 
Student loans receivable, gross
29,512,115 
26,050,203 
24,688,734 
Loans in repayment status:
 
 
 
Loans current
19,164,660 
16,337,922 
15,355,379 
Loans current, percentage
84.00% 
82.50% 
83.60% 
Loans delinquent 31-60 days
1,026,046 
967,318 
776,577 
Loans delinquent 31-60 days, percentage
4.50% 
4.90% 
4.20% 
Loans delinquent 61-90 days
674,918 
550,333 
531,339 
Loans delinquent 61-90 days, percentage
3.00% 
2.80% 
2.90% 
Loans delinquent 91-120 days
376,068 
390,791 
291,732 
Loans delinquent 91-120 days, percentage
1.50% 
2.00% 
1.60% 
Loans delinquent 121-270 days
1,133,527 
1,117,936 
1,016,571 
Loans delinquent 121-270 days, percentage
5.00% 
5.60% 
5.50% 
Loans Delinquent Greater than 271 Days Past Due
447,264 
443,373 
413,240 
Loans delinquent 271 days or greater, percentage
2.00% 
2.20% 
2.20% 
Total loans in repayment
$ 22,822,483 
$ 19,807,673 
$ 18,384,838 
Total loans in repayment, percentage
100.00% 
100.00% 
100.00% 
Non-federally insured loans [Member]
 
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
 
Loans Delinquent 31 Days or Greater in Percentage
12.60% 
12.70% 
27.10% 
Outstanding Debt Obligations (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ 29,492,560 
$ 25,955,289 
Variable-rate bonds and notes [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
28,545,842 
24,614,143 
Bonds and notes based on indices [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
26,983,517 
23,479,893 
Debt Instrument, Maturity Date Range, Start
May 25, 2018 
May 25, 2018 
Debt Instrument, Maturity Date Range, End
Aug. 26, 2052 
Aug. 26, 2052 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.24% 
0.25% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
6.90% 
6.90% 
Bonds and notes based on auction or remarketing [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,562,325 
1,134,250 
Debt Instrument, Maturity Date Range, Start
May 01, 2028 
May 01, 2028 
Debt Instrument, Maturity Date Range, End
May 25, 2046 
Nov. 26, 2046 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.06% 
0.07% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
2.10% 
2.17% 
FFELP warehouse facilities [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
1,139,750 
1,396,344 
Debt Instrument, Maturity Date Range, Start
Jan. 17, 2016 
Jan. 17, 2016 
Debt Instrument, Maturity Date Range, End
Jun. 11, 2017 
Jun. 12, 2016 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
0.15% 
0.17% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
0.25% 
0.25% 
Line of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
65,000 
45,000 
Debt Instrument, Maturity Date Range, Start
Jun. 30, 2019 
Mar. 28, 2018 
Debt Instrument, Maturity Date Range, End
Jun. 30, 2019 
Mar. 28, 2018 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.65% 
1.67% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
1.65% 
1.67% 
Junior Subordinated Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
96,457 
96,457 
Debt Instrument, Maturity Date Range, Start
Sep. 15, 2061 
Sep. 15, 2061 
Debt Instrument, Maturity Date Range, End
Sep. 15, 2061 
Sep. 15, 2061 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
3.61% 
3.62% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
3.61% 
3.62% 
Other borrowings [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
63,068 
61,401 
Debt Instrument, Maturity Date Range, Start
Oct. 31, 2014 
Apr. 11, 2014 
Debt Instrument, Maturity Date Range, End
Nov. 11, 2015 
Nov. 11, 2015 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum
1.66% 
1.67% 
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum
5.10% 
5.10% 
Bonds and notes payable, gross [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
29,910,117 
26,213,345 
Discount on bonds and notes payable [Member]
 
 
Debt Instrument [Line Items]
 
 
Bonds and notes payable
$ (417,557)
$ (258,056)
Bonds and Notes Payable Outstanding Lines of Credit (Details) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2014
NHELP-II Warehouse [Member]
May 22, 2014
NFSLW-I Warehouse [Member]
Jun. 30, 2014
NFSLW-I Warehouse [Member]
Apr. 15, 2014
NFSLW-I Warehouse [Member]
Jun. 30, 2014
NHELP-III Warehouse [Member]
Jun. 30, 2014
FFELP Warehouse Total [Member]
Jun. 30, 2014
Line of Credit [Member]
Jun. 29, 2014
Line of Credit [Member]
Apr. 15, 2014
amendment to maturity date of liquidity provisions [Member]
NFSLW-I Warehouse [Member]
Apr. 15, 2014
amendment to maturity date [Member]
NFSLW-I Warehouse [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
Maximum financing amount
$ 500,000,000 
 
$ 500,000,000 1
$ 1,000,000,000 1
$ 750,000,000 
$ 1,750,000,000 
$ 350,000,000 
$ 275,000,000 
 
 
Amount outstanding
92,803,000 
 
387,279,000 1
 
659,668,000 
1,139,750,000 
65,000,000 
 
 
 
Amount available
407,197,000 
 
112,721,000 1
 
90,332,000 
610,250,000 
285,000,000 
 
 
 
Expiration of liquidity provisions
Sep. 30, 2014 
 
Jun. 11, 2015 1
 
Feb. 05, 2015 
 
 
 
Jun. 11, 2015 1
 
Debt Instrument, Maturity Date Range, End
Sep. 30, 2016 
 
Jun. 11, 2017 1
 
Jan. 17, 2016 
 
 
 
 
Jun. 11, 2017 1
Line of credit facility, termination date
 
 
 
 
 
 
Jun. 30, 2019 
 
 
 
Maximum Advance Rates - range minimum
84.50% 
 
92.00% 1
 
92.15% 
 
 
 
 
 
Maximum advance rates - range maximum
94.50% 
 
98.00% 1
 
95.00% 
 
 
 
 
 
Minimum Advance Rates - range minimum
84.50% 
 
84.00% 1
 
92.15% 
 
 
 
 
 
Minimum advance rates - range maximum
94.50% 
 
90.00% 1
 
95.00% 
 
 
 
 
 
Advanced as equity support
8,264,000 
 
18,870,000 1
 
39,496,000 
66,630,000 
 
 
 
 
Line of Credit Facility, Increase (Decrease), Net
 
$ (500,000,000)1
 
 
 
 
 
 
 
 
Bonds and Notes Payable Asset-backed Securitizations (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Debt Instrument [Line Items]
 
Debt Instrument, Variable Rate Basis
1-month LIBOR 
Asset-backed securitization issuance, Face Amount
$ 2,674,800 
2014-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Feb. 06, 2014 
Asset-backed securitization issuance, Face Amount
458,500 
2014-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 12, 2014 
Asset-backed securitization issuance, Face Amount
509,000 
2014-2 Securitization [Member] |
2014-2 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 12, 2014 
2014-2 Securitization [Member] |
2014-2 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 12, 2014 
2014-2 Securitization [Member] |
2014-2 Securitization Class A-3 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Mar. 12, 2014 
2014-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Apr. 30, 2014 
Asset-backed securitization issuance, Face Amount
719,800 
2014-4 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 23, 2014 
Asset-backed securitization issuance, Face Amount
384,500 
2014-4 Securitization [Member] [Domain] |
2014-4 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 23, 2014 
2014-4 Securitization [Member] [Domain] |
2014-4 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
May 23, 2014 
2014-5 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Asset-backed securitization, issuance date
Jun. 18, 2014 
Asset-backed securitization issuance, Face Amount
603,000 
Class A [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(535)
Asset-backed securitization issuance, Face Amount
2,604,700 
Long-term Debt, Fair Value
2,604,165 
Class A [Member] |
2014-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.57% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
445,000 
Long-term Debt, Fair Value
445,000 
Debt Instrument, Maturity Date Range, End
Sep. 25, 2041 
Class A [Member] |
2014-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(535)
Asset-backed securitization issuance, Face Amount
497,000 
Long-term Debt, Fair Value
496,465 
Class A [Member] |
2014-2 Securitization [Member] |
2014-2 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.28% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
191,000 
Long-term Debt, Fair Value
191,000 
Debt Instrument, Maturity Date Range, End
Jun. 25, 2021 
Class A [Member] |
2014-2 Securitization [Member] |
2014-2 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.60% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
222,000 
Long-term Debt, Fair Value
222,000 
Debt Instrument, Maturity Date Range, End
Mar. 25, 2030 
Class A [Member] |
2014-2 Securitization [Member] |
2014-2 Securitization Class A-3 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.85% 
Asset-backed securitization issuance, Unamortized Discount
(535)
Asset-backed securitization issuance, Face Amount
84,000 
Long-term Debt, Fair Value
83,465 
Debt Instrument, Maturity Date Range, End
Jul. 27, 2037 
Class A [Member] |
2014-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.58% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
700,700 
Long-term Debt, Fair Value
700,700 
Debt Instrument, Maturity Date Range, End
Jun. 25, 2041 
Class A [Member] |
2014-4 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
375,000 
Long-term Debt, Fair Value
375,000 
Class A [Member] |
2014-4 Securitization [Member] [Domain] |
2014-4 Securitization Class A-1 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.54% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
267,500 
Long-term Debt, Fair Value
267,500 
Debt Instrument, Maturity Date Range, End
Nov. 27, 2034 
Class A [Member] |
2014-4 Securitization [Member] [Domain] |
2014-4 Securitization Class A-2 [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.95% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
107,500 
Long-term Debt, Fair Value
107,500 
Debt Instrument, Maturity Date Range, End
Nov. 25, 2043 
Class A [Member] |
2014-5 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
0.55% 
Asset-backed securitization issuance, Unamortized Discount
Asset-backed securitization issuance, Face Amount
587,000 
Long-term Debt, Fair Value
587,000 
Debt Instrument, Maturity Date Range, End
Jul. 25, 2041 
Class B [Member]
 
Debt Instrument [Line Items]
 
Asset-backed securitization issuance, Unamortized Discount
(6,015)
Asset-backed securitization issuance, Face Amount
70,100 
Long-term Debt, Fair Value
64,085 
Class B [Member] |
2014-1 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,132)
Asset-backed securitization issuance, Face Amount
13,500 
Long-term Debt, Fair Value
12,368 
Debt Instrument, Maturity Date Range, End
Oct. 25, 2047 
Class B [Member] |
2014-2 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,046)
Asset-backed securitization issuance, Face Amount
12,000 
Long-term Debt, Fair Value
10,954 
Debt Instrument, Maturity Date Range, End
Jun. 25, 2041 
Class B [Member] |
2014-3 Securitization [Member]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,467)
Asset-backed securitization issuance, Face Amount
19,100 
Long-term Debt, Fair Value
17,633 
Debt Instrument, Maturity Date Range, End
Oct. 25, 2050 
Class B [Member] |
2014-4 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,138)
Asset-backed securitization issuance, Face Amount
9,500 
Long-term Debt, Fair Value
8,362 
Debt Instrument, Maturity Date Range, End
Sep. 25, 2051 
Class B [Member] |
2014-5 Securitization [Member] [Domain]
 
Debt Instrument [Line Items]
 
Debt Instrument, Basis Spread on Variable Rate Basis
1.50% 
Asset-backed securitization issuance, Unamortized Discount
(1,232)
Asset-backed securitization issuance, Face Amount
16,000 
Long-term Debt, Fair Value
$ 14,768 
Debt Instrument, Maturity Date Range, End
May 25, 2049 
Bonds and Notes Payable Debt Repurchases (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Debt Instrument [Line Items]
 
 
 
 
Gain from debt repurchases
 
 
$ 57,000 
$ 8,728,000 
Asset-backed Securities [Member]
 
 
 
 
Debt Instrument [Line Items]
 
 
 
 
Extinguishment of Debt, Amount
200,000 
56,400,000 
1,600,000 
69,400,000 
Gain from debt repurchases
$ 18,000 
$ 7,400,000 
$ 57,000 
$ 8,700,000 
Derivative Financial Instruments Outstanding (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Derivative [Line Items]
 
 
Bonds and notes payable
$ 29,492,560 
$ 25,955,289 
Junior Subordinated Hybrid Securities [Member]
 
 
Derivative [Line Items]
 
 
Bonds and notes payable
96,457 
96,457 
Derivative, Type of Interest Rate Paid on Swap
3-month LIBOR 
3-month LIBOR 
Junior Subordinated Hybrid Securities [Member] |
Unsecured Debt Interest Rate Swaps 1 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
25,000 
25,000 
Derivative, Average Fixed Interest Rate
4.28% 1
4.28% 
1:3 basis swaps [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
8,000,000 2
8,000,000 2
Derivative, Type of Interest Rate Paid on Swap
one-month LIBOR 
one-month LIBOR 
Weighted average basis spread on variable rate
3.50% 
3.50% 
1:3 basis swaps [Member] |
Maturity 2021 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
250,000 
250,000 
1:3 basis swaps [Member] |
Maturity 2022 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,900,000 
1,900,000 
1:3 basis swaps [Member] |
Maturity 2023 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
3,650,000 
3,650,000 
1:3 basis swaps [Member] |
Maturity 2024 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
250,000 
250,000 
1:3 basis swaps [Member] |
Maturity 2026 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
800,000 
800,000 
1:3 basis swaps [Member] |
Maturity 2028 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
100,000 
100,000 
1:3 basis swaps [Member] |
Maturity 2036 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
700,000 
700,000 
1:3 basis swaps [Member] |
Maturity 2039 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
150,000 3
150,000 
1:3 basis swaps [Member] |
Maturity 2040 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
200,000 4
200,000 
Fixed Rate Floor Income Interest Rate Swap [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
4,350,000 
4,850,000 
Derivative, Average Fixed Interest Rate
0.81% 1
0.81% 1
Derivative, Type of Interest Rate Paid on Swap
3-month LIBOR 
3-month LIBOR 
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2014 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,250,000 
1,750,000 
Derivative, Average Fixed Interest Rate
0.67% 1
0.71% 1
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2015 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
1,100,000 
1,100,000 
Derivative, Average Fixed Interest Rate
0.89% 1
0.89% 1
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2016 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
750,000 
750,000 
Derivative, Average Fixed Interest Rate
0.85% 1
0.85% 1
Fixed Rate Floor Income Interest Rate Swap [Member] |
Maturity 2017 [Member]
 
 
Derivative [Line Items]
 
 
Derivative, Notional Amount
$ 1,250,000 
$ 1,250,000 
Derivative, Average Fixed Interest Rate
0.86% 1
0.86% 1
Derivative Financial Instruments Cross-currency Interest Rate Swaps (Details)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Jun. 30, 2014
USD ($)
Jun. 30, 2013
USD ($)
Dec. 31, 2013
USD ($)
Jun. 30, 2014
Currency Swap [Member]
USD ($)
Jun. 30, 2013
Currency Swap [Member]
USD ($)
Jun. 30, 2014
Currency Swap [Member]
USD ($)
Jun. 30, 2013
Currency Swap [Member]
USD ($)
Jun. 30, 2014
Cross-currency interest rate swap 1 [Member]
EUR (€)
Jun. 30, 2014
Cross currency interest rate swap 2 [Member]
USD ($)
Jun. 30, 2014
Cross currency interest rate swap 2 [Member]
EUR (€)
Jun. 30, 2014
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Dec. 31, 2013
Fixed Rate Floor Income Interest Rate Swap [Member]
USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative, Average Fixed Interest Rate
 
 
 
 
 
 
 
 
 
 
 
 
0.81% 1
0.81% 1
Bonds and notes payable
$ 29,492,560 
 
$ 29,492,560 
 
$ 25,955,289 
 
 
 
 
€ 420,500 
 
€ 352,700 
 
 
Re-measurement of Euro Notes
2,751 
(14,691)
1,798 
14,072 
 
 
 
 
 
 
 
 
 
 
Change in fair value of cross currency interest rate swaps
(2,999)
14,748 
 
 
 
 
 
(3,037)
(20,096)
 
 
 
 
 
Total impact to statements of income - income (expense)
5,033 
63,236 
7,950 
43,729 
 
(248)2
57 2 3
(1,239)2
(6,024)2 3
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
$ 450,000 
€ 352,700 
$ 4,350,000 
$ 4,850,000 
Derivative Financial Instruments Fair Value of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
 
 
Proceeds to terminate and or amend derivative instruments
$ (2,700)
$ 0 
 
 
Fair value of derivative instruments, asset
 
68,033 
 
62,507 
Fair value of derivative instruments, liability
 
15,546 
 
17,969 
Cash collateral received
 
323 
 
15,959 
Cash collateral pledged
 
 
3,630 
Payments to terminate and/or amend derivative instruments
6,500 
3,819 
 
1:3 basis swaps [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Fair value of derivative instruments, asset
 
31,510 
 
18,490 
Fair value of derivative instruments, liability
 
 
Interest rate swaps - floor income hedges [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Fair value of derivative instruments, asset
 
2,726 
 
7,183 
Fair value of derivative instruments, liability
 
10,849 
 
15,849 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Fair value of derivative instruments, asset
 
 
Fair value of derivative instruments, liability
 
4,697 
 
2,120 
Cross-currency interest rate swaps [Member]
 
 
 
 
Derivatives, Fair Value [Line Items]
 
 
 
 
Fair value of derivative instruments, asset
 
33,797 
 
36,834 
Fair value of derivative instruments, liability
 
$ 0 
 
$ 0 
Derivative Financial Instruments Gross/Net (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Derivatives, Fair Value [Line Items]
 
 
Fair value of derivative instruments, asset
$ 68,033 
$ 62,507 
Fair value of derivative instruments, liability
(15,546)
(17,969)
Derivatives subject to enforceable master netting arrangement, asset
(15,546)
(15,437)
Derivatives subject to enforceable master netting arrangement, liability
15,546 
15,437 
Cash collateral received
(323)
(15,959)
Cash collateral pledged
3,630 
Fair value of derivative instruments, asset, net
52,164 
31,111 
Fair value of derivative instruments, liability, net
$ 0 
$ (1,098)
Derivative Financial Instruments Income Statement Effect of Derivative Instruments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
$ (6,214)
$ (8,357)
$ (12,443)
$ (16,541)
Change in fair value
5,033 
63,236 
7,950 
43,729 
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense)
2,751 
(14,691)
1,798 
14,072 
Derivative market value and foreign currency adjustments and derivative settlements - income (expense)
1,570 
40,188 
(2,695)
41,260 
1:3 basis swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
858 
782 
1,739 
1,692 
Change in fair value
11,910 
9,630 
13,020 
11,563 
Interest rate swaps - floor income hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(6,974)
(8,534)
(13,924)
(16,839)
Change in fair value
(2,813)
33,408 
545 
42,830 
Interest rate swaps - hybrid debt hedges [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
(256)
(512)
(508)
(1,157)
Change in fair value
(1,065)
5,450 
(2,578)
9,090 
Cross-currency interest rate swaps [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Derivative settlements, net
158 
(93)
250 
(237)
Change in fair value
(2,999)
14,748 
(3,037)
(20,096)
Other [Member]
 
 
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
 
 
Change in fair value
$ 0 
$ 0 
$ 0 
$ 342 
Investments and Restricted Investments Summary (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
$ 141,489 
$ 192,040 
Investments [Member] |
Available-for-sale investments [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
126,083 
173,433 
Gross unrealized gains
9,059 
8,894 
Gross unrealized losses
(219)1
(1,244)
Investments, Fair Value Disclosure
134,923 
181,083 
Investments [Member] |
Available-for-sale investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
124,556 2
171,931 2
Gross unrealized gains
7,090 2
7,111 2
Gross unrealized losses
(212)1 2
(1,241)2
Investments, Fair Value Disclosure
131,434 2
177,801 2
Investments [Member] |
Available-for-sale investments [Member] |
Equity securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Amortized cost
1,527 
1,502 
Gross unrealized gains
1,969 
1,783 
Gross unrealized losses
(7)1
(3)
Investments, Fair Value Disclosure
 
3,282 
Investments [Member] |
Trading investments [Member] |
Student Loan Asset-Backed and Other Debt Securities [Member]
 
 
Investment Holdings [Line Items]
 
 
Investments, Fair Value Disclosure
6,566 
10,957 
Estimate of Fair Value Measurement [Member]
 
 
Investment Holdings [Line Items]
 
 
Restricted Investments
6,921 
7,285 
Guaranteed investment contracts - held-to-maturity
 
$ 7,285 3
Investments Realized Gains (Losses) on Available-for-Sale Securities (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Gain (Loss) on Investments [Line Items]
 
 
 
 
Other income
$ 1,238 
$ 559 
$ 8,311 
$ 1,516 
Available-for-sale Securities [Member]
 
 
 
 
Gain (Loss) on Investments [Line Items]
 
 
 
 
Other income
1,238 
559 
(8,311)
(1,516)
Income tax expense
(458)
(207)
(3,075)
(561)
Net
$ 780 
$ 352 
$ 5,236 
$ 955 
Business Combination (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Business Combinations [Abstract]
 
 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents
$ 326,000 
$ 326,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables
961,000 
961,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment
105,000 
105,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets
22,000 
22,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill
37,200,000 
37,200,000 
Goodwill, Acquired During Period
9,082,000 
9,082,000 
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other
(1,341,000)
(1,341,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net
$ 46,343,000 
$ 46,343,000 
Business Combination Acquisition Details (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Business Acquisition, Percentage of Voting Interests Acquired
100.00% 
100.00% 
Business Acquisition, Goodwill, Expected Tax Deductible Amount
$ 9,100,000 
$ 9,100,000 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
18 years 
 
Business Combination, Consideration Transferred
 
44,000,000 
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High
4,000,000 
4,000,000 
Business Combination, Contingent Consideration, Liability
2,300,000 
2,300,000 
Trade Names [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
20 years 
 
Finite-lived Intangible Assets Acquired
6,400,000 
 
Computer Software, Intangible Asset [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
5 years 
 
Finite-lived Intangible Assets Acquired
4,900,000 
 
Covenants not to compete [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
10 years 
 
Finite-lived Intangible Assets Acquired
400,000 
 
Customer Relationships [Member]
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
20 years 
 
Finite-lived Intangible Assets Acquired
$ 25,500,000 
 
Intangible Assets Intangible Assets (Details) (USD $)
6 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
192 months 
 
Finite-Lived Intangible Assets, Net
$ 44,849,000 
$ 6,132,000 
Covenants not to compete [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
119 months 
 
Finite-Lived Intangible Assets, Net
351,000 
Finite-Lived Intangible Assets, Accumulated Amortization
3,000 
Trade Names [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
239 months 
 
Finite-Lived Intangible Assets, Net
6,383,000 
Finite-Lived Intangible Assets, Accumulated Amortization
39,000 
Computer Software, Intangible Asset [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
47 months 
 
Finite-Lived Intangible Assets, Net
8,231,000 
Finite-Lived Intangible Assets, Accumulated Amortization
634,000 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
223 months 
 
Finite-Lived Intangible Assets, Net
29,884,000 
6,132,000 
Finite-Lived Intangible Assets, Accumulated Amortization
$ 21,595,000 
$ 19,821,000 
Intangible Assets Amortization Expense (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
 
 
 
 
 
Amortization of Intangible Assets
$ 1,400,000 
$ 800,000 
$ 2,400,000 
$ 1,700,000 
 
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year
2,843,000 
 
2,843,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Two
6,402,000 
 
6,402,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Three
5,982,000 
 
5,982,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Four
4,406,000 
 
4,406,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
4,000,000 
 
4,000,000 
 
 
Finite-Lived Intangible Assets, Amortization Expense, after Year Five
21,216,000 
 
21,216,000 
 
 
Amortization of Intangible Assets
$ 44,849,000 
 
$ 44,849,000 
 
$ 6,132,000 
Goodwill Goodwill (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2014
Goodwill [Line Items]
 
 
Goodwill, Period Start
 
$ 117,118,000 
Goodwill, Acquired During Period
9,082,000 
9,082,000 
Goodwill, Period End
126,200,000 
126,200,000 
Student Loan and Guaranty Servicing [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Period Start
 
8,596,000 
Goodwill, Acquired During Period
 
Goodwill, Period End
8,596,000 
8,596,000 
Tuition Payment Processing and Campus Commerce [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Period Start
 
58,086,000 
Goodwill, Acquired During Period
 
9,082,000 
Goodwill, Period End
67,168,000 
67,168,000 
Enrollment Services [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Period Start
 
8,553,000 
Goodwill, Acquired During Period
 
Goodwill, Period End
8,553,000 
8,553,000 
Asset Generation and Management [Member]
 
 
Goodwill [Line Items]
 
 
Goodwill, Period Start
 
41,883,000 
Goodwill, Acquired During Period
 
Goodwill, Period End
$ 41,883,000 
$ 41,883,000 
Earnings per Common Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 74,994 
$ 101,243 
$ 148,780 
$ 169,322 
Weighted average common shares outstanding - basic and diluted
46,529,377 
46,626,853 
46,528,651 
46,642,356 
Earnings per share - basic and diluted
$ 1.61 
$ 2.17 
$ 3.20 
$ 3.63 
Antidilutive securities excluded from computation of earnings per share
Common shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
74,263 
100,339 
147,388 
167,868 
Weighted average common shares outstanding - basic and diluted
46,075,869 
46,210,571 
46,093,314 
46,241,277 
Earnings per share - basic and diluted
$ 1.61 
$ 2.17 
$ 3.20 
$ 3.63 
Unvested restricted stock shareholders [Member]
 
 
 
 
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
Net income attributable to Nelnet, Inc.
$ 731 
$ 904 
$ 1,392 
$ 1,454 
Weighted average common shares outstanding - basic and diluted
453,508 
416,282 
435,337 
401,079 
Earnings per share - basic and diluted
$ 1.61 
$ 2.17 
$ 3.20 
$ 3.63 
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
$ 176,948 
$ 159,546 
$ 335,823 
$ 316,702 
Interest expense
69,235 
58,127 
129,239 
116,485 
Net interest income
107,713 
101,419 
206,584 
200,217 
Less provision for loan losses
(1,500)
(5,000)
(4,000)
(10,000)
Net interest income after provision for loan losses
106,213 
96,419 
202,584 
190,217 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
66,460 
60,078 
131,217 
115,679 
Intersegment servicing revenue
Tuition payment processing and campus commerce revenue
21,834 
18,356 
47,069 
41,767 
Enrollment services revenue
20,145 
24,823 
42,156 
53,780 
Other income
15,315 
12,288 
33,446 
21,704 
Gain on sale of loans and debt repurchases
18 
7,355 
57 
8,762 
Derivative market value and foreign currency adjustments, net
7,784 
48,545 
9,748 
57,801 
Derivative settlements, net
(6,214)
(8,357)
(12,443)
(16,541)
Total other income (expense)
125,342 
163,088 
251,250 
282,952 
Operating expenses:
 
 
 
 
Salaries and benefits
53,888 
47,432 
106,372 
95,337 
Cost to provide enrollment services
13,311 
16,787 
27,786 
36,429 
Depreciation and amortization
5,214 
4,320 
9,997 
8,697 
Other
40,377 
34,365 
76,004 
69,306 
Intersegment expenses, net
Total operating expenses
112,790 
102,904 
220,159 
209,769 
Income (loss) before income taxes and corporate overhead allocation
118,765 
156,603 
233,675 
263,400 
Corporate overhead allocation
Income (loss) before income taxes
118,765 
156,603 
233,675 
263,400 
Income tax (expense) benefit
(43,078)
(54,746)
(83,689)
(93,193)
Net income (loss)
75,687 
101,857 
149,986 
170,207 
Net income attributable to noncontrolling interest
693 
614 
1,206 
885 
Net income (loss) attributable to Nelnet, Inc.
74,994 
101,243 
148,780 
169,322 
Student Loan and Guaranty Servicing [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
20 
19 
Interest expense
Net interest income
20 
19 
Less provision for loan losses
Net interest income after provision for loan losses
20 
19 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
66,460 
60,078 
131,217 
115,679 
Intersegment servicing revenue
13,800 
13,903 
28,021 
28,856 
Tuition payment processing and campus commerce revenue
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income (expense)
80,260 
73,981 
159,238 
144,535 
Operating expenses:
 
 
 
 
Salaries and benefits
33,093 
28,091 
65,400 
56,535 
Cost to provide enrollment services
Depreciation and amortization
2,819 
2,731 
5,608 
5,520 
Other
19,815 
18,031 
38,267 
36,421 
Intersegment expenses, net
1,124 
851 
2,207 
1,786 
Total operating expenses
56,851 
49,704 
111,482 
100,262 
Income (loss) before income taxes and corporate overhead allocation
23,418 
24,286 
47,776 
44,292 
Corporate overhead allocation
(2,060)
(1,513)
(3,920)
(2,510)
Income (loss) before income taxes
21,358 
22,773 
43,856 
41,782 
Income tax (expense) benefit
(8,116)
(8,655)
(16,665)
(15,878)
Net income (loss)
13,242 
14,118 
27,191 
25,904 
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
13,242 
14,118 
27,191 
25,904 
Tuition Payment Processing and Campus Commerce [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
Interest expense
Net interest income
Less provision for loan losses
Net interest income after provision for loan losses
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing and campus commerce revenue
21,834 
18,356 
47,069 
41,767 
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income (expense)
21,834 
18,356 
47,069 
41,767 
Operating expenses:
 
 
 
 
Salaries and benefits
11,112 
9,427 
21,139 
18,786 
Cost to provide enrollment services
Depreciation and amortization
1,845 
1,132 
3,273 
2,270 
Other
2,956 
2,192 
5,603 
4,479 
Intersegment expenses, net
1,404 
1,494 
2,824 
2,919 
Total operating expenses
17,317 
14,245 
32,839 
28,454 
Income (loss) before income taxes and corporate overhead allocation
4,520 
4,111 
14,233 
13,313 
Corporate overhead allocation
(687)
(504)
(1,307)
(836)
Income (loss) before income taxes
3,833 
3,607 
12,926 
12,477 
Income tax (expense) benefit
(1,456)
(1,370)
(4,911)
(4,741)
Net income (loss)
2,377 
2,237 
8,015 
7,736 
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
2,377 
2,237 
8,015 
7,736 
Enrollment Services [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
Interest expense
Net interest income
Less provision for loan losses
Net interest income after provision for loan losses
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing and campus commerce revenue
Enrollment services revenue
20,145 
24,823 
42,156 
53,780 
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income (expense)
20,145 
24,823 
42,156 
53,780 
Operating expenses:
 
 
 
 
Salaries and benefits
4,132 
4,809 
8,512 
10,576 
Cost to provide enrollment services
13,311 
16,787 
27,786 
36,429 
Depreciation and amortization
41 
61 
88 
122 
Other
1,844 
1,243 
3,293 
2,894 
Intersegment expenses, net
944 
1,130 
1,950 
2,279 
Total operating expenses
20,272 
24,030 
41,629 
52,300 
Income (loss) before income taxes and corporate overhead allocation
(127)
793 
527 
1,480 
Corporate overhead allocation
(687)
(504)
(1,307)
(836)
Income (loss) before income taxes
(814)
289 
(780)
644 
Income tax (expense) benefit
309 
(109)
296 
(244)
Net income (loss)
(505)
180 
(484)
400 
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
(505)
180 
(484)
400 
Total Fee-Based [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
12 
23 
19 
Interest expense
Net interest income
12 
23 
19 
Less provision for loan losses
Net interest income after provision for loan losses
12 
23 
19 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
66,460 
60,078 
131,217 
115,679 
Intersegment servicing revenue
13,800 
13,903 
28,021 
28,856 
Tuition payment processing and campus commerce revenue
21,834 
18,356 
47,069 
41,767 
Enrollment services revenue
20,145 
24,823 
42,156 
53,780 
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income (expense)
122,239 
117,160 
248,463 
240,082 
Operating expenses:
 
 
 
 
Salaries and benefits
48,337 
42,327 
95,051 
85,897 
Cost to provide enrollment services
13,311 
16,787 
27,786 
36,429 
Depreciation and amortization
4,705 
3,924 
8,969 
7,912 
Other
24,615 
21,466 
47,163 
43,794 
Intersegment expenses, net
3,472 
3,475 
6,981 
6,984 
Total operating expenses
94,440 
87,979 
185,950 
181,016 
Income (loss) before income taxes and corporate overhead allocation
27,811 
29,190 
62,536 
59,085 
Corporate overhead allocation
(3,434)
(2,521)
(6,534)
(4,182)
Income (loss) before income taxes
24,377 
26,669 
56,002 
54,903 
Income tax (expense) benefit
(9,263)
(10,134)
(21,280)
(20,863)
Net income (loss)
15,114 
16,535 
34,722 
34,040 
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
15,114 
16,535 
34,722 
34,040 
Asset Generation and Management [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
175,562 
158,175 
332,565 
313,829 
Interest expense
67,936 
56,920 
127,412 
114,402 
Net interest income
107,626 
101,255 
205,153 
199,427 
Less provision for loan losses
(1,500)
(5,000)
(4,000)
(10,000)
Net interest income after provision for loan losses
106,126 
96,255 
201,153 
189,427 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing and campus commerce revenue
Enrollment services revenue
Other income
4,496 
3,030 
8,660 
7,226 
Gain on sale of loans and debt repurchases
18 
7,355 
57 
8,762 
Derivative market value and foreign currency adjustments, net
8,848 
43,096 
12,325 
48,371 
Derivative settlements, net
(5,958)
(7,845)
(11,935)
(15,384)
Total other income (expense)
7,404 
45,636 
9,107 
48,975 
Operating expenses:
 
 
 
 
Salaries and benefits
570 
592 
1,179 
1,154 
Cost to provide enrollment services
Depreciation and amortization
Other
8,845 
7,923 
15,991 
15,436 
Intersegment expenses, net
13,968 
14,108 
28,339 
29,250 
Total operating expenses
23,383 
22,623 
45,509 
45,840 
Income (loss) before income taxes and corporate overhead allocation
90,147 
119,268 
164,751 
192,562 
Corporate overhead allocation
(1,249)
(1,081)
(2,578)
(1,793)
Income (loss) before income taxes
88,898 
118,187 
162,173 
190,769 
Income tax (expense) benefit
(33,781)
(44,911)
(61,625)
(72,492)
Net income (loss)
55,117 
73,276 
100,548 
118,277 
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
55,117 
73,276 
100,548 
118,277 
Corporate and Other [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
2,036 
2,196 
4,694 
4,507 
Interest expense
1,961 
2,041 
3,286 
3,736 
Net interest income
75 
155 
1,408 
771 
Less provision for loan losses
Net interest income after provision for loan losses
75 
155 
1,408 
771 
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
Intersegment servicing revenue
Tuition payment processing and campus commerce revenue
Enrollment services revenue
Other income
10,819 
9,258 
24,786 
14,478 
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
(1,064)
5,449 
(2,577)
9,430 
Derivative settlements, net
(256)
(512)
(508)
(1,157)
Total other income (expense)
9,499 
14,195 
21,701 
22,751 
Operating expenses:
 
 
 
 
Salaries and benefits
4,981 
4,513 
10,142 
8,286 
Cost to provide enrollment services
Depreciation and amortization
509 
396 
1,028 
785 
Other
6,917 
4,976 
12,850 
10,076 
Intersegment expenses, net
(3,640)
(3,680)
(7,299)
(7,378)
Total operating expenses
8,767 
6,205 
16,721 
11,769 
Income (loss) before income taxes and corporate overhead allocation
807 
8,145 
6,388 
11,753 
Corporate overhead allocation
4,683 
3,602 
9,112 
5,975 
Income (loss) before income taxes
5,490 
11,747 
15,500 
17,728 
Income tax (expense) benefit
(34)
299 
(784)
162 
Net income (loss)
5,456 
12,046 
14,716 
17,890 
Net income attributable to noncontrolling interest
693 
614 
1,206 
885 
Net income (loss) attributable to Nelnet, Inc.
4,763 
11,432 
13,510 
17,005 
Intersegment Eliminations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total interest income
(662)
(834)
(1,459)
(1,653)
Interest expense
(662)
(834)
(1,459)
(1,653)
Net interest income
Less provision for loan losses
Net interest income after provision for loan losses
Other income (expense):
 
 
 
 
Loan and guaranty servicing revenue
Intersegment servicing revenue
(13,800)
(13,903)
(28,021)
(28,856)
Tuition payment processing and campus commerce revenue
Enrollment services revenue
Other income
Gain on sale of loans and debt repurchases
Derivative market value and foreign currency adjustments, net
Derivative settlements, net
Total other income (expense)
(13,800)
(13,903)
(28,021)
(28,856)
Operating expenses:
 
 
 
 
Salaries and benefits
Cost to provide enrollment services
Depreciation and amortization
Other
Intersegment expenses, net
(13,800)
(13,903)
(28,021)
(28,856)
Total operating expenses
(13,800)
(13,903)
(28,021)
(28,856)
Income (loss) before income taxes and corporate overhead allocation
Corporate overhead allocation
Income (loss) before income taxes
Income tax (expense) benefit
Net income (loss)
Net income attributable to noncontrolling interest
Net income (loss) attributable to Nelnet, Inc.
$ 0 
$ 0 
$ 0 
$ 0 
Major Customer (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Concentration Risk [Line Items]
 
 
 
 
Concentration Risk, Customer
Department of Education 
Department of Education 
Department of Education 
Department of Education 
Concentration Risk Dollar Value [Member]
 
 
 
 
Concentration Risk [Line Items]
 
 
 
 
Loan and guaranty servicing revenue
$ 31.0 
$ 22.1 
$ 60.9 
$ 42.5 
Related Party Transactions Transactions with Union Bank and Trust (Details) (Union Bank and Trust Company [Member], USD $)
Jun. 30, 2014
BasisPoints
Union Bank and Trust Company [Member]
 
Related Party Transaction [Line Items]
 
Amount of Participation
$ 1,720,000.00 
Contractual Obligation
$ 1,400,000 
basis points earned on outstanding balance
40 
Assets and Liabilities that are Measured at Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
$ 141,489 
$ 192,040 
Fair value of derivative instruments
68,033 
62,507 
Total assets
209,522 
254,547 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
15,546 
17,969 
Total liabilities
15,546 
17,969 
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
137,567 
188,279 
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,489 
3,282 
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
433 
479 
Level 1 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,922 
3,761 
Fair value of derivative instruments
Total assets
3,922 
3,761 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
Total liabilities
Level 1 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
Level 1 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
3,489 
3,282 
Level 1 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
433 
479 
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
137,567 
188,279 
Fair value of derivative instruments
68,033 
62,507 
Total assets
205,600 
250,786 
Liabilities, Fair Value Disclosure [Abstract]
 
 
Fair value of derivative instruments
15,546 
17,969 
Total liabilities
15,546 
17,969 
Fair Value, Inputs, Level 2 [Member] |
Student loan asset-backed securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
137,567 
188,279 
Fair Value, Inputs, Level 2 [Member] |
Equity securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
Fair Value, Inputs, Level 2 [Member] |
Debt securities [Member]
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
Investments
$ 0 
$ 0 
Fair Value of Financial Instruments (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Mar. 31, 2013
Dec. 31, 2012
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
$ 29,342,430 
$ 25,907,589 
 
 
Cash and cash equivalents
92,099 
63,267 
68,584 
66,031 
Investments
141,489 
192,040 
 
 
Restricted cash - due to customers
98,005 
167,576 
 
 
Accrued interest receivable
360,075 
314,553 
 
 
Derivative instruments
68,033 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
29,492,560 
25,955,289 
 
 
Accrued interest payable
24,339 
21,725 
 
 
Due to customers
98,005 
167,576 
 
 
Derivative instruments
15,546 
17,969 
 
 
Fair value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
30,629,142 
26,641,383 
 
 
Cash and cash equivalents
92,099 
63,267 
 
 
Investments
141,489 
192,040 
 
 
Restricted cash
855,113 
727,838 
 
 
Restricted cash - due to customers
98,005 
167,576 
 
 
Restricted investments
(6,921)
(7,285)
 
 
Accrued interest receivable
360,075 
314,553 
 
 
Derivative instruments
68,033 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
29,493,178 
25,577,250 
 
 
Accrued interest payable
24,339 
21,725 
 
 
Due to customers
98,005 
167,576 
 
 
Derivative instruments
15,546 
17,969 
 
 
Fair value [Member] |
Level 1 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
 
 
Cash and cash equivalents
92,099 
63,267 
 
 
Investments
3,922 
3,761 
 
 
Restricted cash
855,113 
727,838 
 
 
Restricted cash - due to customers
98,005 
167,576 
 
 
Restricted investments
(6,921)
(7,285)
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
98,005 
167,576 
 
 
Derivative instruments
 
 
Fair value [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
 
 
Cash and cash equivalents
 
 
Investments
137,567 
188,279 
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
360,075 
314,553 
 
 
Derivative instruments
68,033 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
29,493,178 
25,577,250 
 
 
Accrued interest payable
24,339 
21,725 
 
 
Due to customers
 
 
Derivative instruments
15,546 
17,969 
 
 
Fair value [Member] |
Level 3 [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
30,629,142 
26,641,383 
 
 
Cash and cash equivalents
 
 
Investments
 
 
Restricted cash
 
 
Restricted cash - due to customers
 
 
Restricted investments
 
 
Accrued interest receivable
 
 
Derivative instruments
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
 
 
Accrued interest payable
 
 
Due to customers
 
 
Derivative instruments
 
 
Carrying value [Member]
 
 
 
 
Assets, Fair Value Disclosure [Abstract]
 
 
 
 
Student loans receivable
29,342,430 
25,907,589 
 
 
Cash and cash equivalents
92,099 
63,267 
 
 
Investments
141,489 
192,040 
 
 
Restricted cash
855,113 
727,838 
 
 
Restricted cash - due to customers
98,005 
167,576 
 
 
Restricted investments
(6,921)
(7,285)
 
 
Accrued interest receivable
 
314,553 
 
 
Derivative instruments
68,033 
62,507 
 
 
Liabilities, Fair Value Disclosure [Abstract]
 
 
 
 
Bonds and notes payable
29,492,560 
25,955,289 
 
 
Accrued interest payable
24,339 
21,725 
 
 
Due to customers
98,005 
167,576 
 
 
Derivative instruments
$ 15,546 
$ 17,969 
 
 
Legal Proceedings (Details) (Pending or Threatened Litigation [Member], USD $)
6 Months Ended
Jun. 30, 2014
Loss Contingencies [Line Items]
 
Loss contingency, inestimable loss
The Company has accrued an immaterial amount related to the legal proceedings described below. However, due to the uncertainty and risks inherent in class determination and the overall litigation process, the Company believes that a meaningful estimate of its exposure to any reasonably possible losses or range of reasonably possible losses, in excess of the amount accrued, cannot currently be made. 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the New Jersey District Court has not established, recognized, or certified a class.  
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
Loss Contingency, Damages Sought, Value, Per Violation
$ 500 
Bais Yaakov of Spring Valley v. Peterson's Nelnet, LLC [Member] |
Class action members [Member]
 
Loss Contingencies [Line Items]
 
Advertising faxes
10,000 
Loss contingency, damages sought, value
5,000,000 
Loss contingency, damages sought, value if trebled
15,000,000 
Than Zaw v. Nelnet, Inc. [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the California District Court has not established, recognized, or certified a class.  
Than Zaw v. Nelnet, Inc. [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
5,000 
Grant Keating v. Peterson's Nelnet, LLC et al [Member]
 
Loss Contingencies [Line Items]
 
Loss contingency, actions taken by court, arbitrator or mediator
As of the filing date of this report, the Ohio District Court has not established, recognized, or certified a class. 
Grant Keating v. Peterson's Nelnet, LLC et al [Member] |
Named plaintiff [Member]
 
Loss Contingencies [Line Items]
 
Loss Contingency, Damages Sought, Value, Per Violation
$ 500 
Subsequent Events (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Subsequent Event [Line Items]
 
 
Debt and Capital Lease Obligations
$ 29,492,560 
$ 25,955,289 
Class A [Member]
 
 
Subsequent Event [Line Items]
 
 
Long-term Debt, Fair Value
$ 2,604,165