|
|
|
|
|
|
|
|
As of | As of | |||||
March 31, 2012 | December 31, 2011 | |||||
Federally insured loans | $ | 23,881,483 | 24,332,709 | |||
Non-federally insured loans | 24,825 | 26,916 | ||||
23,906,308 | 24,359,625 | |||||
Unamortized loan premiums (discounts) and deferred origination costs, net | (21,041 | ) | (13,267 | ) | ||
Allowance for loan losses – federally insured loans | (36,783 | ) | (37,205 | ) | ||
Allowance for loan losses – non-federally insured loans | (11,652 | ) | (11,277 | ) | ||
$ | 23,836,832 | 24,297,876 | ||||
Allowance for federally insured loans as a percentage of such loans | 0.15 | % | 0.15 | % | ||
Allowance for non-federally insured loans as a percentage of such loans | 46.94 | % | 41.90 | % |
Three months ended March 31, | ||||||
2012 | 2011 | |||||
Balance at beginning of period | $ | 48,482 | 43,626 | |||
Provision for loan losses: | ||||||
Federally insured loans | 6,000 | 3,500 | ||||
Non-federally insured loans | — | 250 | ||||
Total provision for loan losses | 6,000 | 3,750 | ||||
Charge-offs: | ||||||
Federally insured loans | (5,495 | ) | (4,855 | ) | ||
Non-federally insured loans | (769 | ) | (994 | ) | ||
Total charge-offs | (6,264 | ) | (5,849 | ) | ||
Recoveries - non-federally insured loans | 351 | 370 | ||||
Purchase (sale) of loans, net: | ||||||
Federally insured loans | (927 | ) | — | |||
Non-federally insured loans | — | — | ||||
Transfer to/from repurchase obligation related to loans sold/purchased, net | 793 | (800 | ) | |||
Balance at end of period | $ | 48,435 | 41,097 | |||
Allocation of the allowance for loan losses: | ||||||
Federally insured loans | $ | 36,783 | 31,553 | |||
Non-federally insured loans | 11,652 | 9,544 | ||||
Total allowance for loan losses | $ | 48,435 | 41,097 |
Three months ended March 31, | ||||||
2012 | 2011 | |||||
Beginning balance | $ | 19,223 | 12,600 | |||
Transfer to/from the allowance for loan losses related to loans purchased/sold, net | (793 | ) | 800 | |||
Repurchase obligation associated with loans sold on January 13, 2011 | — | 6,269 | ||||
Ending balance | $ | 18,430 | 19,669 |
As of March 31, 2012 | As of December 31, 2011 | As of March 31, 2011 | ||||||||||||||||||
Federally Insured Loans: | ||||||||||||||||||||
Loans in-school/grace/deferment (a) | $ | 3,625,631 | $ | 3,664,899 | $ | 4,332,130 | ||||||||||||||
Loans in forbearance (b) | 3,363,627 | 3,330,452 | 3,086,292 | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 14,696,906 | 87.0 | % | 14,600,372 | 84.2 | % | 13,933,107 | 87.3 | % | |||||||||||
Loans delinquent 31-60 days (c) | 557,476 | 3.3 | 844,204 | 4.9 | 595,386 | 3.7 | ||||||||||||||
Loans delinquent 61-90 days (c) | 337,791 | 2.0 | 407,094 | 2.3 | 392,008 | 2.5 | ||||||||||||||
Loans delinquent 91-270 days (c) | 973,406 | 5.8 | 1,163,437 | 6.7 | 838,404 | 5.3 | ||||||||||||||
Loans delinquent 271 days or greater (c)(d) | 326,646 | 1.9 | 322,251 | 1.9 | 190,380 | 1.2 | ||||||||||||||
Total loans in repayment | 16,892,225 | 100.0 | % | 17,337,358 | 100.0 | % | 15,949,285 | 100.0 | % | |||||||||||
Total federally insured loans | $ | 23,881,483 | $ | 24,332,709 | $ | 23,367,707 | ||||||||||||||
Non-Federally Insured Loans: | ||||||||||||||||||||
Loans in-school/grace/deferment (a) | $ | 2,046 | $ | 2,058 | $ | 3,069 | ||||||||||||||
Loans in forbearance (b) | 316 | 371 | 239 | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 15,144 | 67.4 | % | 16,776 | 68.5 | % | 16,564 | 82.1 | % | |||||||||||
Loans delinquent 31-60 days (c) | 534 | 2.4 | 706 | 2.9 | 363 | 1.8 | ||||||||||||||
Loans delinquent 61-90 days (c) | 1,820 | 8.1 | 1,987 | 8.1 | 692 | 3.4 | ||||||||||||||
Loans delinquent 91 days or greater (c) | 4,965 | 22.1 | 5,018 | 20.5 | 2,562 | 12.7 | ||||||||||||||
Total loans in repayment | 22,463 | 100.0 | % | 24,487 | 100.0 | % | 20,181 | 100.0 | % | |||||||||||
Total non-federally insured loans | $ | 24,825 | $ | 26,916 | $ | 23,489 |
(a) | Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g., residency periods for medical students or a grace period for bar exam preparation for law students. |
(b) | Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. |
(c) | The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. |
(d) | A portion of loans included in loans delinquent 271 days or greater includes federally insured loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency. |
|
As of March 31, 2012 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes (a): | |||||||
Bonds and notes based on indices | $ | 19,832,162 | 0.50% - 6.90% | 11/25/15 - 7/27/48 | |||
Bonds and notes based on auction or remarketing | 970,575 | 0.18% - 2.27% | 5/1/28 - 5/25/42 | ||||
Total variable-rate bonds and notes | 20,802,737 | ||||||
FFELP warehouse facilities | 959,978 | 0.18% - 0.35% | 7/1/14 - 4/2/15 | ||||
Department of Education Conduit | 2,261,104 | 0.24% | 5/8/14 | ||||
Unsecured line of credit | 50,000 | 1.74% | 2/17/16 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 100,697 | 3.86% | 9/15/61 | ||||
Other borrowings | 40,154 | 3.73% - 5.72% | 11/14/12 - 3/1/22 | ||||
24,214,670 | |||||||
Discount on bonds and notes payable | (154,061 | ) | |||||
Total | $ | 24,060,609 |
As of December 31, 2011 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes (a): | |||||||
Bonds and notes based on indices | $ | 20,252,403 | 0.42% - 6.90% | 11/25/15 - 7/27/48 | |||
Bonds and notes based on auction or remarketing | 970,575 | 0.11% - 2.19% | 5/1/28 - 5/25/42 | ||||
Total variable-rate bonds and notes | 21,222,978 | ||||||
FFELP warehouse facilities | 824,410 | 0.26% - 0.70% | 7/1/14 | ||||
Department of Education Conduit | 2,339,575 | 0.24% | 5/8/14 | ||||
Unsecured line of credit | 64,390 | 0.69% | 5/8/12 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 100,697 | 3.95% | 9/15/61 | ||||
Other borrowings | 43,119 | 3.78% - 5.72% | 11/14/12 - 3/1/22 | ||||
24,595,169 | |||||||
Discount on bonds and notes payable | (160,629 | ) | |||||
Total | $ | 24,434,540 |
(a) | Issued in asset-backed securitizations |
NFSLW-I (a) | NHELP-II (b) | NHELP-I (c) | Total | |||||||||
Maximum financing amount | $ | 500,000 | 250,000 | 500,000 | 1,250,000 | |||||||
Amount outstanding | (484,856 | ) | (229,667 | ) | (245,455 | ) | (959,978 | ) | ||||
Amount available | $ | 15,144 | 20,333 | 254,545 | 290,022 | |||||||
Expiration of liquidity provisions | July 1, 2012 | January 31, 2013 | October 2, 2013 | |||||||||
Final maturity date | July 1, 2014 | January 31, 2015 | April 2, 2015 | |||||||||
Maximum advance rates | 85 - 95% | 93.5% | 93 - 95% | |||||||||
Minimum advance rates | 84.5 - 90% | 90.5% | 80 - 95% | |||||||||
Advanced as equity support | $ | 37,138 | 21,125 | 14,922 | 73,185 |
(a) | The terms of this facility were amended on February 22, 2012. The table above reflects all amended terms. |
(b) | The Company entered into this facility on February 1, 2012. |
(c) | The terms of this facility were amended on April 2, 2012. The table above reflects all amended terms. |
• | A minimum consolidated net worth |
• | A minimum adjusted EBITDA to corporate debt interest (over the last four rolling quarters) |
• | A limitation on subsidiary indebtedness |
• | A limitation on the percentage of non-federally insured loans in the Company’s portfolio |
|
|
Maturity | Notional amount | |||||
2021 | $ | 250,000 | ||||
2023 | 1,250,000 | |||||
2024 | 250,000 | |||||
2026 | 800,000 | |||||
2028 | 100,000 | |||||
2036 | 700,000 | |||||
2039 | (a) | 150,000 | ||||
2040 | (b) | 200,000 | ||||
$ | 3,700,000 |
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||
2013 | $ | 2,150,000 | 0.85 | % | ||||
2014 | 750,000 | 0.85 | ||||||
2015 | 100,000 | 2.26 | ||||||
2020 | 50,000 | 3.23 | ||||||
$ | 3,050,000 | 0.93 | % |
Notional amount (a) | Weighted average fixed rate paid by the Company (b) | ||||
$ | 75,000 | 4.28 | % |
(a) | The maturity date of these derivatives is September 29, 2036. |
(b) | For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
Three months ended March 31, | ||||||
2012 | 2011 | |||||
Re-measurement of Euro Notes | $ | (32,242 | ) | (65,334 | ) | |
Change in fair value of cross currency interest rate swaps | 13,026 | 62,532 | ||||
Total impact to statements of income - income (expense) | $ | (19,216 | ) | (2,802 | ) |
Fair value of asset derivatives | Fair value of liability derivatives | |||||||||||
As of | As of | As of | As of | |||||||||
March 31, 2012 | December 31, 2011 | March 31, 2012 | December 31, 2011 | |||||||||
1:3 basis swaps | $ | 13,626 | 10,988 | 277 | 641 | |||||||
Interest rate swaps - floor income hedges | — | 592 | 23,427 | 18,384 | ||||||||
Interest rate swaps - hybrid debt hedges | — | — | 18,617 | 24,814 | ||||||||
Cross-currency interest rate swaps | 93,657 | 80,631 | — | — | ||||||||
Other | 251 | 8 | — | 1 | ||||||||
Total | $ | 107,534 | 92,219 | 42,321 | 43,840 |
Three months ended March 31, | |||||||
2012 | 2011 | ||||||
Settlements: | |||||||
1:3 basis swaps | $ | 1,381 | 208 | ||||
Interest rate swaps - floor income hedges | (3,137 | ) | (6,218 | ) | |||
Interest rate swaps - hybrid debt hedges | — | (246 | ) | ||||
Cross-currency interest rate swaps | 2,109 | 2,109 | |||||
Other | (126 | ) | (5 | ) | |||
Total settlements - income (expense) | 227 | (4,152 | ) | ||||
Change in fair value: | |||||||
1:3 basis swaps | 3,002 | (4,210 | ) | ||||
Interest rate swaps - floor income hedges | (5,634 | ) | 6,395 | ||||
Interest rate swaps - hybrid debt hedges | 6,197 | 1,448 | |||||
Cross-currency interest rate swaps | 13,026 | 62,532 | |||||
Other | 244 | 285 | |||||
Total change in fair value - income (expense) | 16,835 | 66,450 | |||||
Re-measurement of Euro Notes (foreign currency transaction adjustment) - income (expense) | (32,242 | ) | (65,334 | ) | |||
Derivative market value and foreign currency adjustments and derivative settlements - income (expense) | $ | (15,180 | ) | (3,036 | ) |
|
As of March 31, 2012 | ||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | As of | ||||||||||||
December 31, 2011 | ||||||||||||||||
Investments: | ||||||||||||||||
Available-for-sale investments (a): | ||||||||||||||||
Student loan asset-backed securities | $ | 54,595 | 618 | (942 | ) | 54,271 | — | |||||||||
Equity securities | 4,250 | 1,365 | (107 | ) | 5,508 | — | ||||||||||
Debt securities (b) | 1,308 | — | — | 1,308 | — | |||||||||||
Total available-for-sale investments | $ | 60,153 | 1,983 | (1,049 | ) | 61,087 | — | |||||||||
Trading investments (a): | ||||||||||||||||
Student loan asset-backed securities | $ | 9,465 | 42,412 | |||||||||||||
Equity securities | — | 6,847 | ||||||||||||||
Debt securities (b) | — | 1,521 | ||||||||||||||
Total trading investments | $ | 9,465 | 50,780 | |||||||||||||
Total available-for-sale and trading investments | $ | 70,552 | 50,780 | |||||||||||||
Restricted Investments (c): | ||||||||||||||||
Guaranteed investment contracts - held-to-maturity | $ | 284,639 | 236,899 |
(a) | The Company transferred the majority of its investments from trading to available-for-sale on January 1, 2012 to reflect management's intention regarding such securities. |
(b) | Debt securities include corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities. |
(c) | Restricted investments are included in “Restricted cash and investments” on the Company's consolidated balance sheets. The Company's restricted investments include cash balances that the Company's indentured trusts deposit in guaranteed investment contracts that are held for the related note holders. These investments are classified as held-to-maturity and the Company accounts for them at amortized cost. |
Year of Maturity: | Amortized cost | Fair value | ||||
2013-2016 | $ | 200 | 200 | |||
2017-2021 | 1,108 | 1,108 | ||||
After 2021 | 54,595 | 54,271 | ||||
Total | $ | 55,903 | 55,579 |
Year of Maturity (a): | |||
2017-2021 | $ | 35,731 | |
After 2021 | 248,908 | ||
Total | $ | 284,639 |
(a) | On May 1, 2012, the majority of the Company's remaining guaranteed investment contracts were terminated due to a downgrade in the credit rating of a guaranteed investment contract counterparty. The sales of these investments were at par and had no income statement impact. The proceeds from the sale of these investments were used to purchase permitted investments as specified by each underlying student loan asset-backed securitization trust indenture. The new investments will continue to be classified as “restricted cash and investments” included on the consolidated balance sheet while otherwise remaining as assets within their respective trust estates. As of May, 7, 2012, the Company has $28.1 million of guaranteed investment contracts outstanding. |
|
Weighted average remaining useful life as of March 31, 2012 (months) | As of March 31, 2012 | As of December 31, 2011 | |||||||
Customer relationships (net of accumulated amortization of $63,302 and $59,893, respectively) | 66 | $ | 19,831 | 23,240 | |||||
Computer software (net of accumulated amortization of $5,806 and $5,103, respectively) | 9 | 2,112 | 2,815 | ||||||
Trade names (net of accumulated amortization of $9,854 and $9,274, respectively) | 9 | 1,739 | 2,319 | ||||||
57 | $ | 23,682 | 28,374 |
2012 (April 1 - December 31) | $ | 13,941 | |
2013 | 3,399 | ||
2014 | 2,102 | ||
2015 | 829 | ||
2016 | 639 | ||
2017 and thereafter | 2,772 | ||
$ | 23,682 |
|
Student Loan and Guaranty Servicing | $ | 8,596 | |
Tuition Payment Processing and Campus Commerce | 58,086 | ||
Enrollment Services | 8,553 | ||
Asset Generation and Management | 41,883 | ||
$ | 117,118 |
|
• | Servicing FFELP loans |
• | Origination and servicing of non-federally insured student loans |
• | Servicing federally-owned student loans for the Department of Education |
• | Servicing and support outsourcing for guaranty agencies |
• | Student loan servicing software and other information technology products and services |
• | Inquiry Generation - Inquiry generation services include delivering qualified inquiries or clicks to third-party customers, primarily for-profit schools. |
• | Inquiry Management (Agency) - Agency services include managing the marketing activities for third-party customers, primarily for-profit schools, in order to provide qualified inquiries or clicks. |
• | Inquiry Management (Software) - Inquiry management services include the licensing of software to third-party customers, primarily for-profit schools. This software is also used internally by the Company. The inquiry management software has been adapted so that it can be offered as a hosted software solution that can be used by third-parties to manage and obtain qualified inquiries or clicks. |
• | Digital Marketing (Peterson's Interactive) - Digital marketing services include on-line information about colleges and universities and are sold primarily based on subscriptions. Digital marketing services also include online editing services for admission essays. |
• | Content Solutions - Content solutions includes test preparation study guides, school directories and databases, career exploration guides, on-line courses, scholarship search and selection data, career planning, and on-line information about colleges and universities. Content solutions also includes providing list marketing services to help higher education institutions and businesses reach the middle school, high school, college bound high school, college, and young adult market places. |
• | The operating results of WRCM, the Company's SEC-registered investment advisory subsidiary |
• | Income earned on certain investment activities |
• | Interest expense incurred on unsecured debt transactions |
• | Other products and service offerings that are not considered operating segments |
Three months ended March 31, 2012 | ||||||||||||||||||||||||
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 | 4 | — | 24 | 153,512 | 1,588 | (971 | ) | 154,153 | ||||||||||||||
Interest expense | — | — | — | — | 68,829 | 1,439 | (971 | ) | 69,297 | |||||||||||||||
Net interest income | 20 | 4 | — | 24 | 84,683 | 149 | — | 84,856 | ||||||||||||||||
Less provision for loan losses | — | — | — | — | 6,000 | — | — | 6,000 | ||||||||||||||||
Net interest income after provision for loan losses | 20 | 4 | — | 24 | 78,683 | 149 | — | 78,856 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Loan and guaranty servicing revenue | 49,488 | — | — | 49,488 | — | — | — | 49,488 | ||||||||||||||||
Intersegment servicing revenue | 16,954 | — | — | 16,954 | — | — | (16,954 | ) | — | |||||||||||||||
Tuition payment processing and campus commerce revenue | — | 21,913 | — | 21,913 | — | — | — | 21,913 | ||||||||||||||||
Enrollment services revenue | — | — | 31,664 | 31,664 | — | — | — | 31,664 | ||||||||||||||||
Other income | — | — | — | — | 5,000 | 5,954 | — | 10,954 | ||||||||||||||||
Gain on sale of loans and debt repurchases | — | — | — | — | — | — | — | — | ||||||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | — | — | (21,604 | ) | 6,197 | — | (15,407 | ) | ||||||||||||||
Derivative settlements, net | — | — | — | — | 227 | — | — | 227 | ||||||||||||||||
Total other income (expense) | 66,442 | 21,913 | 31,664 | 120,019 | (16,377 | ) | 12,151 | (16,954 | ) | 98,839 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Salaries and benefits | 29,042 | 8,618 | 6,279 | 43,939 | 719 | 4,437 | — | 49,095 | ||||||||||||||||
Cost to provide enrollment services | — | — | 21,678 | 21,678 | — | — | — | 21,678 | ||||||||||||||||
Depreciation and amortization | 4,413 | 1,740 | 1,617 | 7,770 | — | 366 | — | 8,136 | ||||||||||||||||
Other | 18,666 | 2,816 | 1,956 | 23,438 | 3,632 | 5,193 | — | 32,263 | ||||||||||||||||
Intersegment expenses, net | 1,385 | 1,333 | 848 | 3,566 | 17,143 | (3,755 | ) | (16,954 | ) | — | ||||||||||||||
Total operating expenses | 53,506 | 14,507 | 32,378 | 100,391 | 21,494 | 6,241 | (16,954 | ) | 111,172 | |||||||||||||||
Income (loss) before income taxes and corporate overhead allocation | 12,956 | 7,410 | (714 | ) | 19,652 | 40,812 | 6,059 | — | 66,523 | |||||||||||||||
Corporate overhead allocation | (1,503 | ) | (501 | ) | (501 | ) | (2,505 | ) | (1,392 | ) | 3,897 | — | — | |||||||||||
Income (loss) before income taxes | 11,453 | 6,909 | (1,215 | ) | 17,147 | 39,420 | 9,956 | — | 66,523 | |||||||||||||||
Income tax (expense) benefit | (4,352 | ) | (2,625 | ) | 462 | (6,515 | ) | (14,979 | ) | (1,736 | ) | — | (23,230 | ) | ||||||||||
Net income (loss) | 7,101 | 4,284 | (753 | ) | 10,632 | 24,441 | 8,220 | — | 43,293 | |||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | 152 | — | 152 | ||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 7,101 | 4,284 | (753 | ) | 10,632 | 24,441 | 8,068 | — | 43,141 | ||||||||||||||
Three months ended March 31, 2011 | ||||||||||||||||||||||||
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 | $ | 15 | 6 | — | 21 | 137,639 | 1,146 | (722 | ) | 138,084 | ||||||||||||||
Interest expense | — | — | — | — | 49,716 | 3,313 | (722 | ) | 52,307 | |||||||||||||||
Net interest income (loss) | 15 | 6 | — | 21 | 87,923 | (2,167 | ) | — | 85,777 |
Less provision for loan losses | — | — | — | — | 3,750 | — | — | 3,750 | ||||||||||||||||
Net interest income (loss) after provision for loan losses | 15 | 6 | — | 21 | 84,173 | (2,167 | ) | — | 82,027 | |||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Loan and guaranty servicing revenue | 40,413 | — | — | 40,413 | — | — | — | 40,413 | ||||||||||||||||
Intersegment servicing revenue | 17,857 | — | — | 17,857 | — | — | (17,857 | ) | — | |||||||||||||||
Tuition payment processing and campus commerce revenue | — | 19,369 | — | 19,369 | — | — | — | 19,369 | ||||||||||||||||
Enrollment services revenue | — | — | 33,868 | 33,868 | — | — | — | 33,868 | ||||||||||||||||
Other income | — | — | — | — | 4,136 | 2,356 | — | 6,492 | ||||||||||||||||
Gain on sale of loans and debt repurchases | — | — | — | — | 1,400 | 6,907 | — | 8,307 | ||||||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | — | — | (589 | ) | 1,705 | — | 1,116 | |||||||||||||||
Derivative settlements, net | — | — | — | — | (4,038 | ) | (114 | ) | — | (4,152 | ) | |||||||||||||
Total other income (expense) | 58,270 | 19,369 | 33,868 | 111,507 | 909 | 10,854 | (17,857 | ) | 105,413 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Salaries and benefits | 25,388 | 7,152 | 6,257 | 38,797 | 778 | 4,337 | — | 43,912 | ||||||||||||||||
Cost to provide enrollment services | — | — | 22,839 | 22,839 | — | — | — | 22,839 | ||||||||||||||||
Depreciation and amortization | 3,406 | 1,334 | 1,691 | 6,431 | — | 345 | — | 6,776 | ||||||||||||||||
Other | 14,579 | 2,634 | 2,318 | 19,531 | 1,538 | 5,036 | — | 26,105 | ||||||||||||||||
Intersegment expenses, net | 1,369 | 1,093 | 818 | 3,280 | 18,147 | (3,570 | ) | (17,857 | ) | — | ||||||||||||||
Total operating expenses | 44,742 | 12,213 | 33,923 | 90,878 | 20,463 | 6,148 | (17,857 | ) | 99,632 | |||||||||||||||
Income (loss) before income taxes and corporate overhead allocation | 13,543 | 7,162 | (55 | ) | 20,650 | 64,619 | 2,539 | — | 87,808 | |||||||||||||||
Corporate overhead allocation | (753 | ) | (251 | ) | (251 | ) | (1,255 | ) | (1,255 | ) | 2,510 | — | — | |||||||||||
Income (loss) before income taxes | 12,790 | 6,911 | (306 | ) | 19,395 | 63,364 | 5,049 | — | 87,808 | |||||||||||||||
Income tax (expense) benefit | (4,860 | ) | (2,626 | ) | 117 | (7,369 | ) | (24,078 | ) | (1,481 | ) | — | (32,928 | ) | ||||||||||
Net income (loss) | 7,930 | 4,285 | (189 | ) | 12,026 | 39,286 | 3,568 | — | 54,880 | |||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | — | — | — | ||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 7,930 | 4,285 | (189 | ) | 12,026 | 39,286 | 3,568 | — | 54,880 | ||||||||||||||
|
|
As of March 31, 2012 | |||||||||
Level 1 | Level 2 | Total | |||||||
Assets: | |||||||||
Investments: (a) | |||||||||
Student loan asset-backed securities | $ | — | 63,736 | 63,736 | |||||
Equity securities | 5,508 | — | 5,508 | ||||||
Debt securities | 1,308 | — | 1,308 | ||||||
Total investments | 6,816 | 63,736 | 70,552 | ||||||
Fair value of derivative instruments (b) | — | 107,534 | 107,534 | ||||||
Total assets | $ | 6,816 | 171,270 | 178,086 | |||||
Liabilities: | |||||||||
Fair value of derivative instruments (b) | $ | — | 42,321 | 42,321 | |||||
Total liabilities | $ | — | 42,321 | 42,321 |
As of December 31, 2011 | |||||||||
Level 1 | Level 2 | Total | |||||||
Assets: | |||||||||
Investments: (a) | |||||||||
Student loan asset-backed securities | $ | — | 42,412 | 42,412 | |||||
Equity securities | 6,847 | — | 6,847 | ||||||
Debt securities | 1,521 | — | 1,521 | ||||||
Total investments | 8,368 | 42,412 | 50,780 | ||||||
Fair value of derivative instruments (b) | — | 92,219 | 92,219 | ||||||
Total assets | $ | 8,368 | 134,631 | 142,999 | |||||
Liabilities: | |||||||||
Fair value of derivative instruments (b) | $ | — | 43,840 | 43,840 | |||||
Total liabilities | $ | — | 43,840 | 43,840 |
(a) | Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms to companies with comparable credit risk. |
(b) | All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined by derivative pricing models using the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets. |
As of March 31, 2012 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 23,759,545 | 23,836,832 | — | — | 23,759,545 | |||||||||
Cash and cash equivalents | 60,700 | 60,700 | 60,700 | — | — | ||||||||||
Investments | 70,552 | 70,552 | 6,816 | 63,736 | — | ||||||||||
Restricted cash | 421,314 | 421,314 | 421,314 | — | — | ||||||||||
Restricted cash – due to customers | 38,642 | 38,642 | 38,642 | — | — | ||||||||||
Restricted investments | 284,639 | 284,639 | 284,639 | — | — | ||||||||||
Accrued interest receivable | 296,378 | 296,378 | 296,378 | — | — | ||||||||||
Derivative instruments | 107,534 | 107,534 | — | 107,534 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 23,010,542 | 24,060,609 | — | 23,010,542 | — | ||||||||||
Accrued interest payable | 19,281 | 19,281 | 19,281 | — | — | ||||||||||
Due to customers | 38,642 | 38,642 | 38,642 | — | — | ||||||||||
Derivative instruments | 42,321 | 42,321 | — | 42,321 | — |
As of December 31, 2011 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 23,894,005 | 24,297,876 | — | — | 23,894,005 | |||||||||
Cash and cash equivalents | 42,570 | 42,570 | 42,570 | — | — | ||||||||||
Investments | 50,780 | 50,780 | 8,368 | 42,412 | — | ||||||||||
Restricted cash | 377,423 | 377,423 | 377,423 | — | — | ||||||||||
Restricted cash – due to customers | 109,809 | 109,809 | 109,809 | — | — | ||||||||||
Restricted investments | 236,899 | 236,899 | 236,899 | — | — | ||||||||||
Accrued interest receivable | 308,401 | 308,401 | 308,401 | — | — | ||||||||||
Derivative instruments | 92,219 | 92,219 | — | 92,219 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 23,003,453 | 24,434,540 | — | 23,003,453 | — | ||||||||||
Accrued interest payable | 19,634 | 19,634 | 19,634 | — | — | ||||||||||
Due to customers | 109,809 | 109,809 | 109,809 | — | — | ||||||||||
Derivative instruments | 43,840 | 43,840 | — | 43,840 | — |
|
|