|
|
|
|
|
|
|
• | Reclassifying certain investments and notes receivable, which were previously included in "other assets" to "investments and notes receivable." |
• | Reclassifying third-party loan servicing fees, which were previously included in "other" operating expenses to "loan servicing fees." |
|
As of | As of | |||||
June 30, 2015 | December 31, 2014 | |||||
Federally insured loans | ||||||
Stafford and other | $ | 6,574,079 | 6,030,825 | |||
Consolidation | 21,564,569 | 22,165,605 | ||||
Total | 28,138,648 | 28,196,430 | ||||
Private education loans | 175,202 | 27,478 | ||||
28,313,850 | 28,223,908 | |||||
Loan discount, net of unamortized loan premiums and deferred origination costs (a) | (168,051 | ) | (169,813 | ) | ||
Allowance for loan losses – federally insured loans | (36,762 | ) | (39,170 | ) | ||
Allowance for loan losses – private education loans | (13,262 | ) | (9,730 | ) | ||
$ | 28,095,775 | 28,005,195 |
(a) | As of June 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.1 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $9.5 billion and $8.5 billion, respectively. |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Balance at beginning of period | $ | 51,161 | 54,628 | 48,900 | 55,122 | |||||||
Provision for loan losses: | ||||||||||||
Federally insured loans | 2,000 | 2,000 | 4,000 | 5,000 | ||||||||
Private education loans | 150 | (500 | ) | 150 | (1,000 | ) | ||||||
Total provision for loan losses | 2,150 | 1,500 | 4,150 | 4,000 | ||||||||
Charge-offs: | ||||||||||||
Federally insured loans | (3,259 | ) | (4,138 | ) | (6,408 | ) | (7,769 | ) | ||||
Private education loans | (446 | ) | (598 | ) | (1,122 | ) | (1,019 | ) | ||||
Total charge-offs | (3,705 | ) | (4,736 | ) | (7,530 | ) | (8,788 | ) | ||||
Recoveries - private education loans | 238 | 339 | 492 | 710 | ||||||||
Purchase (sale) of federally insured and private education loans, net | — | 150 | (230 | ) | 250 | |||||||
Transfer from repurchase obligation related to private education loans repurchased | 180 | 586 | 4,242 | 1,173 | ||||||||
Balance at end of period | $ | 50,024 | 52,467 | 50,024 | 52,467 | |||||||
Allocation of the allowance for loan losses: | ||||||||||||
Federally insured loans | $ | 36,762 | 40,921 | 36,762 | 40,921 | |||||||
Private education loans | 13,262 | 11,546 | 13,262 | 11,546 | ||||||||
Total allowance for loan losses | $ | 50,024 | 52,467 | 50,024 | 52,467 |
As of June 30, 2015 | As of December 31, 2014 | As of June 30, 2014 | ||||||||||||||||||
Federally insured loans: | ||||||||||||||||||||
Loans in-school/grace/deferment | $ | 2,634,088 | $ | 2,805,228 | $ | 3,095,741 | ||||||||||||||
Loans in forbearance | 3,118,774 | 3,288,412 | 3,593,891 | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 19,055,994 | 85.2 | % | 18,460,279 | 83.5 | % | 19,164,660 | 84.0 | % | |||||||||||
Loans delinquent 31-60 days | 950,055 | 4.2 | 1,043,119 | 4.8 | 1,026,046 | 4.5 | ||||||||||||||
Loans delinquent 61-90 days | 612,657 | 2.7 | 588,777 | 2.7 | 674,918 | 3.0 | ||||||||||||||
Loans delinquent 91-120 days | 355,636 | 1.6 | 404,905 | 1.8 | 376,068 | 1.5 | ||||||||||||||
Loans delinquent 121-270 days | 1,051,843 | 4.7 | 1,204,405 | 5.4 | 1,133,527 | 5.0 | ||||||||||||||
Loans delinquent 271 days or greater | 359,601 | 1.6 | 401,305 | 1.8 | 447,264 | 2.0 | ||||||||||||||
Total loans in repayment | 22,385,786 | 100.0 | % | 22,102,790 | 100.0 | % | 22,822,483 | 100.0 | % | |||||||||||
Total federally insured loans | $ | 28,138,648 | $ | 28,196,430 | $ | 29,512,115 | ||||||||||||||
Private education loans: | ||||||||||||||||||||
Loans in-school/grace/deferment | $ | 5,268 | $ | 905 | $ | 2,123 | ||||||||||||||
Loans in forbearance | 142 | — | — | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 161,355 | 95.0 | % | 18,390 | 69.2 | % | 57,048 | 87.1 | % | |||||||||||
Loans delinquent 31-60 days | 1,407 | 0.8 | 1,078 | 4.1 | 1,008 | 1.5 | ||||||||||||||
Loans delinquent 61-90 days | 1,647 | 1.0 | 1,035 | 3.9 | 1,867 | 2.8 | ||||||||||||||
Loans delinquent 91 days or greater | 5,383 | 3.2 | 6,070 | 22.8 | 5,624 | 8.6 | ||||||||||||||
Total loans in repayment | 169,792 | 100.0 | % | 26,573 | 100.0 | % | 65,547 | 100.0 | % | |||||||||||
Total non-federally insured loans | $ | 175,202 | $ | 27,478 | $ | 67,670 |
|
As of June 30, 2015 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes issued in asset-backed securitizations: | |||||||
Bonds and notes based on indices | $ | 25,754,105 | 0.10% - 6.90% | 8/26/19 - 8/26/52 | |||
Bonds and notes based on auction | 1,171,515 | 1.06% - 2.09% | 3/22/32 - 11/26/46 | ||||
Total variable-rate bonds and notes | 26,925,620 | ||||||
FFELP warehouse facilities | 1,190,705 | 0.19% - 0.30% | 6/11/17 - 4/29/18 | ||||
Private education loan warehouse facility | 89,265 | 0.31% | 12/26/16 | ||||
Unsecured line of credit | 100,000 | 1.69% | 6/30/19 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 57,582 | 3.66% | 9/15/61 | ||||
Other borrowings | 79,336 | 1.69% - 5.10% | 11/11/15 - 10/31/16 | ||||
28,442,508 | |||||||
Discount on bonds and notes payable | (372,085 | ) | |||||
Total | $ | 28,070,423 |
As of December 31, 2014 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes issued in asset-backed securitizations: | |||||||
Bonds and notes based on indices | $ | 25,713,431 | 0.19% - 6.90% | 5/25/18 - 8/26/52 | |||
Bonds and notes based on auction | 1,311,669 | 0.47% - 2.17% | 3/22/32 - 11/26/46 | ||||
Total variable-rate bonds and notes | 27,025,100 | ||||||
FFELP warehouse facilities | 1,241,665 | 0.16% - 0.26% | 1/17/16 - 6/11/17 | ||||
Unsecured line of credit | — | — | 6/30/19 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 71,688 | 3.63% | 9/15/61 | ||||
Other borrowings | 81,969 | 1.67% - 5.10% | 11/11/15 - 12/31/18 | ||||
28,420,422 | |||||||
Discount on bonds and notes payable | (393,072 | ) | |||||
Total | $ | 28,027,350 |
NHELP-III (a) | NFSLW-I (b) | NHELP-II | Total | ||||||||||
Maximum financing amount | $ | 750,000 | 750,000 | 500,000 | 2,000,000 | ||||||||
Amount outstanding | 282,005 | 571,084 | 337,616 | 1,190,705 | |||||||||
Amount available | $ | 467,995 | 178,916 | 162,384 | 809,295 | ||||||||
Expiration of liquidity provisions | April 29, 2016 | July 30, 2015 | December 17, 2015 | ||||||||||
Final maturity date | April 29, 2018 | June 11, 2017 | December 17, 2017 | ||||||||||
Maximum advance rates | 92.2 - 95.0% | 92.0 - 98.0% | 91.0 - 97.0% | ||||||||||
Minimum advance rates | 92.2 - 95.0% | 84.0 - 90.0% | 91.0 - 97.0% | ||||||||||
Advanced as equity support | $ | 7,751 | 27,211 | 18,808 | 53,770 |
(a) | On April 30, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to April 29, 2016, and to change the final maturity date to April 29, 2018. |
(b) | On May 14, 2015, the Company amended the agreement for this warehouse facility to extend the expiration of the liquidity provisions to July 30, 2015. On July 10, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $875.0 million, extend the expiration of the liquidity provisions to July 8, 2016, and extend the maturity date to July 9, 2018. The maximum financing amount is scheduled to decrease by $125.0 million on March 31, 2016. |
2015-1 | 2015-2 | 2015-3 | Total | ||||||||||||||||||||||||||
Class A-1 notes | Class A-2 notes | 2015-2 total | Class A-1 notes | Class A-2 notes | Class A-3 notes | 2015-3 total | |||||||||||||||||||||||
Date securities issued | 2/27/15 | 3/26/15 | 3/26/15 | 3/26/15 | 5/21/15 | 5/21/15 | 5/21/15 | 5/21/15 | |||||||||||||||||||||
Total original principal amount | $ | 566,346 | 122,500 | 584,500 | 722,000 | 82,500 | 270,000 | 41,400 | 401,400 | $ | 1,689,746 | ||||||||||||||||||
Class A senior notes: | |||||||||||||||||||||||||||||
Total original principal amount | $ | 553,232 | 122,500 | 584,500 | 707,000 | 82,500 | 270,000 | 41,400 | 393,900 | 1,654,132 | |||||||||||||||||||
Bond discount | — | — | — | — | — | (380 | ) | (1,095 | ) | (1,475 | ) | (1,475 | ) | ||||||||||||||||
Issue price | $ | 553,232 | 122,500 | 584,500 | 707,000 | 82,500 | 269,620 | 40,305 | 392,425 | 1,652,657 | |||||||||||||||||||
Cost of funds (1-month LIBOR plus:) | 0.59 | % | 0.27 | % | 0.60 | % | 0.30 | % | 0.60 | % | 0.90 | % | |||||||||||||||||
Final maturity date | 4/25/41 | 3/25/20 | 9/25/42 | 1/27/25 | 2/26/46 | 6/25/49 | |||||||||||||||||||||||
Class B subordinated notes: | |||||||||||||||||||||||||||||
Total original principal amount | $ | 13,114 | 15,000 | 7,500 | 35,614 | ||||||||||||||||||||||||
Bond discount | (1,157 | ) | (1,793 | ) | (968 | ) | (3,918 | ) | |||||||||||||||||||||
Issue price | $ | 11,957 | 13,207 | 6,532 | 31,696 | ||||||||||||||||||||||||
Cost of funds (1-month LIBOR plus:) | 1.50 | % | 1.50 | % | 1.50 | % | |||||||||||||||||||||||
Final maturity date | 6/25/46 | 5/25/49 | 6/27/50 |
Par value | Purchase price | Gain | Par value | Purchase price | Gain | |||||||||||||
Three months ended | ||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||
Unsecured debt - Hybrid Securities | $ | 2,255 | 1,781 | 474 | — | — | — | |||||||||||
Asset-backed securities | 22,146 | 21,105 | 1,041 | 200 | 182 | 18 | ||||||||||||
$ | 24,401 | 22,886 | 1,515 | 200 | 182 | 18 | ||||||||||||
Six months ended | ||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||
Unsecured debt - Hybrid Securities | $ | 14,106 | 11,108 | 2,998 | — | — | — | |||||||||||
Asset-backed securities | 22,146 | 21,105 | 1,041 | 1,550 | 1,493 | 57 | ||||||||||||
$ | 36,252 | 32,213 | 4,039 | 1,550 | 1,493 | 57 |
|
As of June 30, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
Maturity | Notional amount | Notional amount | |||||||
2016 | $ | 4,000,000 | $ | — | |||||
2021 | — | 250,000 | |||||||
2022 | 800,000 | 1,900,000 | |||||||
2023 | 1,250,000 | 3,650,000 | |||||||
2024 | — | 250,000 | |||||||
2026 | 300,000 | 800,000 | |||||||
2028 | — | 100,000 | |||||||
2036 | — | 700,000 | |||||||
2039 | — | 150,000 | |||||||
$ | 6,350,000 | $ | 7,800,000 |
As of June 30, 2015 | As of December 31, 2014 | |||||||||||||
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||
2015 | $ | 500,000 | 0.71 | % | $ | 1,100,000 | 0.89 | % | ||||||
2016 | 750,000 | 0.85 | 750,000 | 0.85 | ||||||||||
2017 | 1,850,000 | 0.83 | 1,250,000 | 0.86 | ||||||||||
2018 | 100,000 | 1.02 | — | — | ||||||||||
2025 | 100,000 | 2.32 | — | — | ||||||||||
$ | 3,300,000 | 0.87 | % | $ | 3,100,000 | 0.87 | % |
(a) | For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Re-measurement of Euro Notes | $ | (14,671 | ) | 2,751 | 33,538 | 1,798 | ||||||
Change in fair value of cross-currency interest rate swap | 13,933 | (2,999 | ) | (35,873 | ) | (3,037 | ) | |||||
Total impact to consolidated statements of income - income (expense) (a) | $ | (738 | ) | (248 | ) | (2,335 | ) | (1,239 | ) |
(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. |
Fair value of asset derivatives | Fair value of liability derivatives | |||||||||||
As of | As of | As of | As of | |||||||||
June 30, 2015 | December 31, 2014 | June 30, 2015 | December 31, 2014 | |||||||||
1:3 basis swaps | $ | 14,071 | 53,549 | 71 | — | |||||||
Interest rate swaps - floor income hedges | 7,262 | 5,165 | 4,470 | 5,034 | ||||||||
Interest rate swap option - floor income hedge | 6,148 | 5,678 | — | — | ||||||||
Interest rate swaps - hybrid debt hedges | — | — | 6,264 | 7,353 | ||||||||
Interest rate caps | 2,735 | — | — | — | ||||||||
Cross-currency interest rate swap | — | — | 56,328 | 20,455 | ||||||||
Total | $ | 30,216 | 64,392 | 67,133 | 32,842 |
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 pledged (received) | Net asset (liability) | |||||||||
Balance as of June 30, 2015 | $ | 30,216 | (6,801 | ) | 2,046 | 25,461 | |||||||
Balance as of December 31, 2014 | 64,392 | (12,387 | ) | — | 52,005 |
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 (received) | Net asset (liability) | |||||||||
Balance as of June 30, 2015 | $ | (67,133 | ) | 6,801 | (9,091 | ) | (69,423 | ) | |||||
Balance as of December 31, 2014 | (32,842 | ) | 12,387 | (1,454 | ) | (21,909 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Settlements: | ||||||||||||
1:3 basis swaps | $ | 123 | 858 | 389 | 1,739 | |||||||
Interest rate swaps - floor income hedges | (5,019 | ) | (6,974 | ) | (10,034 | ) | (13,924 | ) | ||||
Interest rate swaps - hybrid debt hedges | (253 | ) | (256 | ) | (505 | ) | (508 | ) | ||||
Cross-currency interest rate swap | (293 | ) | 158 | (507 | ) | 250 | ||||||
Total settlements - (expense) income | (5,442 | ) | (6,214 | ) | (10,657 | ) | (12,443 | ) | ||||
Change in fair value: | ||||||||||||
1:3 basis swaps | 1,428 | 11,910 | 12,398 | 13,020 | ||||||||
Interest rate swaps - floor income hedges | 7,534 | (2,813 | ) | 2,662 | 545 | |||||||
Interest rate swap option - floor income hedge | 1,381 | — | 470 | — | ||||||||
Interest rate swaps - hybrid debt hedges | 2,540 | (1,065 | ) | 1,087 | (2,578 | ) | ||||||
Interest rate caps | (201 | ) | — | (201 | ) | — | ||||||
Cross-currency interest rate swap | 13,933 | (2,999 | ) | (35,873 | ) | (3,037 | ) | |||||
Total change in fair value - income (expense) | 26,615 | 5,033 | (19,457 | ) | 7,950 | |||||||
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income | (14,671 | ) | 2,751 | 33,538 | 1,798 | |||||||
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense) | $ | 6,502 | 1,570 | 3,424 | (2,695 | ) |
|
As of June 30, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses (a) | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||
Investments (at fair value): | |||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||
Student loan asset-backed and other debt securities (b) | $ | 92,192 | 4,137 | (608 | ) | 95,721 | 131,589 | 6,204 | (236 | ) | 137,557 | ||||||||||||||
Equity securities | 846 | 1,734 | (58 | ) | 2,522 | 1,553 | 2,216 | (33 | ) | 3,736 | |||||||||||||||
Total available-for-sale investments | $ | 93,038 | 5,871 | (666 | ) | 98,243 | 133,142 | 8,420 | (269 | ) | 141,293 | ||||||||||||||
Trading investments: | |||||||||||||||||||||||||
Student loan asset-backed securities | 6,443 | 7,830 | |||||||||||||||||||||||
Equity securities | 13,084 | — | |||||||||||||||||||||||
Total trading investments | 19,527 | 7,830 | |||||||||||||||||||||||
Total available-for-sale and trading investments | 117,770 | 149,123 | |||||||||||||||||||||||
Other Investments and Notes Receivable (not measured at fair value): | |||||||||||||||||||||||||
Investments accounted for under the cost and equity methods | 82,281 | 36,991 | |||||||||||||||||||||||
Notes receivable | 31,321 | 30,643 | |||||||||||||||||||||||
Other | 14,376 | 18,952 | |||||||||||||||||||||||
Total investments and notes receivable | $ | 245,748 | 235,709 |
(a) | As of June 30, 2015, 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, 2015, 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. |
|
Weighted average remaining useful life as of June 30, 2015 (months) | As of June 30, 2015 | As of December 31, 2014 | ||||||
Amortizable intangible assets: | ||||||||
Customer relationships (net of accumulated amortization of $20,278 and $17,361, respectively) | 213 | $ | 24,413 | 27,330 | ||||
Trade names (net of accumulated amortization of $534 and $272, respectively) | 227 | 5,888 | 6,150 | |||||
Computer software (net of accumulated amortization of $3,048 and $1,896, respectively) | 37 | 5,817 | 6,969 | |||||
Content (net of accumulated amortization of $450 and $0, respectively) | 18 | 1,350 | 1,800 | |||||
Covenants not to compete (net of accumulated amortization of $38 and $21, respectively) | 107 | 316 | 333 | |||||
Total - amortizable intangible assets | 180 | $ | 37,784 | 42,582 |
2015 (July 1 - December 31) | $ | 4,797 | |
2016 | 6,249 | ||
2017 | 3,752 | ||
2018 | 3,533 | ||
2019 | 2,861 | ||
2020 and thereafter | 16,592 | ||
$ | 37,784 |
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Total | |||||||||||
Balance as of December 31, 2014 and June 30, 2015 | $ | 8,596 | 67,168 | 41,883 | 8,553 | 126,200 |
|
Three months ended June 30, 2015 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 13 | 1 | 176,279 | 1,814 | (385 | ) | 177,722 | ||||||||||
Interest expense | — | — | 71,441 | 1,570 | (385 | ) | 72,626 | |||||||||||
Net interest income | 13 | 1 | 104,838 | 244 | — | 105,096 | ||||||||||||
Less provision for loan losses | — | — | 2,150 | — | — | 2,150 | ||||||||||||
Net interest income after provision for loan losses | 13 | 1 | 102,688 | 244 | — | 102,946 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 63,833 | — | — | — | — | 63,833 | ||||||||||||
Intersegment servicing revenue | 12,223 | — | — | — | (12,223 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 27,686 | — | — | — | 27,686 | ||||||||||||
Enrollment services revenue | — | — | — | 17,161 | — | 17,161 | ||||||||||||
Other income | — | — | 3,950 | 3,554 | — | 7,504 | ||||||||||||
Gain on sale of loans and debt repurchases | — | — | 1,041 | 474 | — | 1,515 | ||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | 9,404 | 2,540 | — | 11,944 | ||||||||||||
Derivative settlements, net | — | — | (5,189 | ) | (253 | ) | — | (5,442 | ) | |||||||||
Total other income | 76,056 | 27,686 | 9,206 | 23,476 | (12,223 | ) | 124,201 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 31,585 | 13,583 | 524 | 13,095 | — | 58,787 | ||||||||||||
Cost to provide enrollment services | — | — | — | 11,162 | — | 11,162 | ||||||||||||
Loan servicing fees | — | — | 7,420 | — | — | 7,420 | ||||||||||||
Depreciation and amortization | 527 | 2,195 | — | 3,779 | — | 6,501 | ||||||||||||
Other | 15,376 | 4,112 | 1,270 | 11,200 | — | 31,958 | ||||||||||||
Intersegment expenses, net | 11,566 | 2,785 | 12,398 | (14,526 | ) | (12,223 | ) | — | ||||||||||
Total operating expenses | 59,054 | 22,675 | 21,612 | 24,710 | (12,223 | ) | 115,828 | |||||||||||
Income (loss) before income taxes and corporate overhead allocation | 17,015 | 5,012 | 90,282 | (990 | ) | — | 111,319 | |||||||||||
Corporate overhead allocation | (2,294 | ) | (918 | ) | (1,147 | ) | 4,359 | — | — | |||||||||
Income before income taxes | 14,721 | 4,094 | 89,135 | 3,369 | — | 111,319 | ||||||||||||
Income tax (expense) benefit | (5,594 | ) | (1,556 | ) | (33,871 | ) | 665 | — | (40,356 | ) | ||||||||
Net income | 9,127 | 2,538 | 55,264 | 4,034 | — | 70,963 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 54 | — | 54 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 9,127 | 2,538 | 55,264 | 3,980 | — | 70,909 | |||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 9 | 3 | 175,562 | 2,036 | (662 | ) | 176,948 | ||||||||||
Interest expense | — | — | 67,936 | 1,961 | (662 | ) | 69,235 | |||||||||||
Net interest income | 9 | 3 | 107,626 | 75 | — | 107,713 | ||||||||||||
Less provision for loan losses | — | — | 1,500 | — | — | 1,500 | ||||||||||||
Net interest income after provision for loan losses | 9 | 3 | 106,126 | 75 | — | 106,213 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 66,460 | — | — | — | — | 66,460 | ||||||||||||
Intersegment servicing revenue | 13,800 | — | — | — | (13,800 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 21,834 | — | — | — | 21,834 | ||||||||||||
Enrollment services revenue | — | — | — | 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 | 7,404 | 29,644 | (13,800 | ) | 125,342 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 30,082 | 11,112 | 570 | 12,124 | — | 53,888 | ||||||||||||
Cost to provide enrollment services | — | — | — | 13,311 | — | 13,311 | ||||||||||||
Loan servicing fees | — | — | 7,317 | — | — | 7,317 | ||||||||||||
Depreciation and amortization | 438 | 1,845 | — | 2,931 | — | 5,214 | ||||||||||||
Other | 16,975 | 2,956 | 1,528 | 11,601 | — | 33,060 | ||||||||||||
Intersegment expenses, net | 9,356 | 1,404 | 13,968 | (10,928 | ) | (13,800 | ) | — | ||||||||||
Total operating expenses | 56,851 | 17,317 | 23,383 | 29,039 | (13,800 | ) | 112,790 | |||||||||||
Income before income taxes and corporate overhead allocation | 23,418 | 4,520 | 90,147 | 680 | — | 118,765 | ||||||||||||
Corporate overhead allocation | (2,060 | ) | (687 | ) | (1,249 | ) | 3,996 | — | — | |||||||||
Income before income taxes | 21,358 | 3,833 | 88,898 | 4,676 | — | 118,765 | ||||||||||||
Income tax (expense) benefit | (8,116 | ) | (1,456 | ) | (33,781 | ) | 275 | — | (43,078 | ) | ||||||||
Net income | 13,242 | 2,377 | 55,117 | 4,951 | — | 75,687 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 693 | — | 693 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 13,242 | 2,377 | 55,117 | 4,258 | — | 74,994 | |||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 20 | 3 | 348,702 | 3,967 | (821 | ) | 351,871 | ||||||||||
Interest expense | — | — | 141,981 | 3,020 | (821 | ) | 144,180 | |||||||||||
Net interest income | 20 | 3 | 206,721 | 947 | — | 207,691 | ||||||||||||
Less provision for loan losses | — | — | 4,150 | — | — | 4,150 | ||||||||||||
Net interest income after provision for loan losses | 20 | 3 | 202,571 | 947 | — | 203,541 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 121,644 | — | — | — | — | 121,644 | ||||||||||||
Intersegment servicing revenue | 25,094 | — | — | — | (25,094 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 62,366 | — | — | — | 62,366 | ||||||||||||
Enrollment services revenue | — | — | — | 35,024 | — | 35,024 | ||||||||||||
Other income | — | — | 8,526 | 5,896 | — | 14,422 | ||||||||||||
Gain on sale of loans and debt repurchases | — | — | 1,392 | 2,998 | — | 4,390 | ||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | 12,994 | 1,087 | — | 14,081 | ||||||||||||
Derivative settlements, net | — | — | (10,152 | ) | (505 | ) | — | (10,657 | ) | |||||||||
Total other income | 146,738 | 62,366 | 12,760 | 44,500 | (25,094 | ) | 241,270 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 65,288 | 26,904 | 1,065 | 26,580 | — | 119,837 | ||||||||||||
Cost to provide enrollment services | — | — | — | 22,864 | — | 22,864 | ||||||||||||
Loan servicing fees | — | — | 15,036 | — | — | 15,036 | ||||||||||||
Depreciation and amortization | 973 | 4,390 | — | 6,800 | — | 12,163 | ||||||||||||
Other | 29,976 | 7,914 | 2,407 | 20,859 | — | 61,156 | ||||||||||||
Intersegment expenses, net | 21,266 | 5,399 | 25,438 | (27,009 | ) | (25,094 | ) | — | ||||||||||
Total operating expenses | 117,503 | 44,607 | 43,946 | 50,094 | (25,094 | ) | 231,056 | |||||||||||
Income (loss) before income taxes and corporate overhead allocation | 29,255 | 17,762 | 171,385 | (4,647 | ) | — | 213,755 | |||||||||||
Corporate overhead allocation | (4,447 | ) | (1,780 | ) | (2,225 | ) | 8,452 | — | — | |||||||||
Income before income taxes | 24,808 | 15,982 | 169,160 | 3,805 | — | 213,755 | ||||||||||||
Income tax (expense) benefit | (9,428 | ) | (6,074 | ) | (64,280 | ) | 1,796 | — | (77,986 | ) | ||||||||
Net income | 15,380 | 9,908 | 104,880 | 5,601 | — | 135,769 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 95 | — | 95 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 15,380 | 9,908 | 104,880 | 5,506 | — | 135,674 | |||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 20 | 3 | 332,565 | 4,694 | (1,459 | ) | 335,823 | ||||||||||
Interest expense | — | — | 127,412 | 3,286 | (1,459 | ) | 129,239 | |||||||||||
Net interest income | 20 | 3 | 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 | 201,153 | 1,408 | — | 202,584 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 131,217 | — | — | — | — | 131,217 | ||||||||||||
Intersegment servicing revenue | 28,021 | — | — | — | (28,021 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 47,069 | — | — | — | 47,069 | ||||||||||||
Enrollment services revenue | — | — | — | 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 | 9,107 | 63,857 | (28,021 | ) | 251,250 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 59,481 | 21,139 | 1,179 | 24,573 | — | 106,372 | ||||||||||||
Cost to provide enrollment services | — | — | — | 27,786 | — | 27,786 | ||||||||||||
Loan servicing fees | — | — | 12,720 | — | — | 12,720 | ||||||||||||
Depreciation and amortization | 857 | 3,273 | — | 5,867 | — | 9,997 | ||||||||||||
Other | 32,625 | 5,603 | 3,271 | 21,785 | — | 63,284 | ||||||||||||
Intersegment expenses, net | 18,519 | 2,824 | 28,339 | (21,661 | ) | (28,021 | ) | — | ||||||||||
Total operating expenses | 111,482 | 32,839 | 45,509 | 58,350 | (28,021 | ) | 220,159 | |||||||||||
Income before income taxes and corporate overhead allocation | 47,776 | 14,233 | 164,751 | 6,915 | — | 233,675 | ||||||||||||
Corporate overhead allocation | (3,920 | ) | (1,307 | ) | (2,578 | ) | 7,805 | — | — | |||||||||
Income before income taxes | 43,856 | 12,926 | 162,173 | 14,720 | — | 233,675 | ||||||||||||
Income tax (expense) benefit | (16,665 | ) | (4,911 | ) | (61,625 | ) | (488 | ) | — | (83,689 | ) | |||||||
Net income | 27,191 | 8,015 | 100,548 | 14,232 | — | 149,986 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 1,206 | — | 1,206 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 27,191 | 8,015 | 100,548 | 13,026 | — | 148,780 | |||||||||||
|
|
|
As of June 30, 2015 | As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||
Assets: | ||||||||||||||||||
Investments (available-for-sale and trading): | ||||||||||||||||||
Student loan asset-backed securities | $ | — | 101,821 | 101,821 | — | 145,000 | 145,000 | |||||||||||
Equity securities | 15,606 | — | 15,606 | 3,736 | — | 3,736 | ||||||||||||
Debt securities | 343 | — | 343 | 387 | — | 387 | ||||||||||||
Total investments (available-for-sale and trading) | 15,949 | 101,821 | 117,770 | 4,123 | 145,000 | 149,123 | ||||||||||||
Fair value of derivative instruments | — | 30,216 | 30,216 | — | 64,392 | 64,392 | ||||||||||||
Total assets | $ | 15,949 | 132,037 | 147,986 | 4,123 | 209,392 | 213,515 | |||||||||||
Liabilities: | ||||||||||||||||||
Fair value of derivative instruments | $ | — | 67,133 | 67,133 | — | 32,842 | 32,842 | |||||||||||
Total liabilities | $ | — | 67,133 | 67,133 | — | 32,842 | 32,842 |
As of June 30, 2015 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 28,824,415 | 28,095,775 | — | — | 28,824,415 | |||||||||
Cash and cash equivalents | 182,280 | 182,280 | 182,280 | — | — | ||||||||||
Investments (available-for-sale and trading) | 117,770 | 117,770 | 15,949 | 101,821 | — | ||||||||||
Notes receivable | 28,644 | 31,321 | — | 28,644 | — | ||||||||||
Restricted cash | 848,479 | 848,479 | 848,479 | — | — | ||||||||||
Restricted cash – due to customers | 117,820 | 117,820 | 117,820 | — | — | ||||||||||
Restricted investments | 9,374 | 9,374 | 9,374 | — | — | ||||||||||
Accrued interest receivable | 364,211 | 364,211 | — | 364,211 | — | ||||||||||
Derivative instruments | 30,216 | 30,216 | — | 30,216 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 27,661,342 | 28,070,423 | — | 27,661,342 | — | ||||||||||
Accrued interest payable | 28,859 | 28,859 | — | 28,859 | — | ||||||||||
Due to customers | 117,820 | 117,820 | 117,820 | — | — | ||||||||||
Derivative instruments | 67,133 | 67,133 | — | 67,133 | — |
As of December 31, 2014 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 28,954,226 | 28,005,195 | — | — | 28,954,226 | |||||||||
Cash and cash equivalents | 130,481 | 130,481 | 130,481 | — | — | ||||||||||
Investments (available-for-sale and trading) | 149,123 | 149,123 | 4,123 | 145,000 | — | ||||||||||
Notes receivable | 28,832 | 30,643 | — | 28,832 | — | ||||||||||
Restricted cash | 800,164 | 800,164 | 800,164 | — | — | ||||||||||
Restricted cash – due to customers | 118,488 | 118,488 | 118,488 | — | — | ||||||||||
Restricted investments | 50,276 | 50,276 | 50,276 | — | — | ||||||||||
Accrued interest receivable | 351,588 | 351,588 | — | 351,588 | — | ||||||||||
Derivative instruments | 64,392 | 64,392 | — | 64,392 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 27,809,997 | 28,027,350 | — | 27,809,997 | — | ||||||||||
Accrued interest payable | 25,904 | 25,904 | — | 25,904 | — | ||||||||||
Due to customers | 118,488 | 118,488 | 118,488 | — | — | ||||||||||
Derivative instruments | 32,842 | 32,842 | — | 32,842 | — |
|
|
|
|
As of | As of | |||||
June 30, 2015 | December 31, 2014 | |||||
Federally insured loans | ||||||
Stafford and other | $ | 6,574,079 | 6,030,825 | |||
Consolidation | 21,564,569 | 22,165,605 | ||||
Total | 28,138,648 | 28,196,430 | ||||
Private education loans | 175,202 | 27,478 | ||||
28,313,850 | 28,223,908 | |||||
Loan discount, net of unamortized loan premiums and deferred origination costs (a) | (168,051 | ) | (169,813 | ) | ||
Allowance for loan losses – federally insured loans | (36,762 | ) | (39,170 | ) | ||
Allowance for loan losses – private education loans | (13,262 | ) | (9,730 | ) | ||
$ | 28,095,775 | 28,005,195 |
(a) | As of June 30, 2015 and December 31, 2014, "loan discount, net of unamortized loan premiums and deferred origination costs" included $33.1 million and $28.8 million, respectively, of non-accretable discount associated with purchased loans of $9.5 billion and $8.5 billion, respectively. |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Balance at beginning of period | $ | 51,161 | 54,628 | 48,900 | 55,122 | |||||||
Provision for loan losses: | ||||||||||||
Federally insured loans | 2,000 | 2,000 | 4,000 | 5,000 | ||||||||
Private education loans | 150 | (500 | ) | 150 | (1,000 | ) | ||||||
Total provision for loan losses | 2,150 | 1,500 | 4,150 | 4,000 | ||||||||
Charge-offs: | ||||||||||||
Federally insured loans | (3,259 | ) | (4,138 | ) | (6,408 | ) | (7,769 | ) | ||||
Private education loans | (446 | ) | (598 | ) | (1,122 | ) | (1,019 | ) | ||||
Total charge-offs | (3,705 | ) | (4,736 | ) | (7,530 | ) | (8,788 | ) | ||||
Recoveries - private education loans | 238 | 339 | 492 | 710 | ||||||||
Purchase (sale) of federally insured and private education loans, net | — | 150 | (230 | ) | 250 | |||||||
Transfer from repurchase obligation related to private education loans repurchased | 180 | 586 | 4,242 | 1,173 | ||||||||
Balance at end of period | $ | 50,024 | 52,467 | 50,024 | 52,467 | |||||||
Allocation of the allowance for loan losses: | ||||||||||||
Federally insured loans | $ | 36,762 | 40,921 | 36,762 | 40,921 | |||||||
Private education loans | 13,262 | 11,546 | 13,262 | 11,546 | ||||||||
Total allowance for loan losses | $ | 50,024 | 52,467 | 50,024 | 52,467 |
As of June 30, 2015 | As of December 31, 2014 | As of June 30, 2014 | ||||||||||||||||||
Federally insured loans: | ||||||||||||||||||||
Loans in-school/grace/deferment | $ | 2,634,088 | $ | 2,805,228 | $ | 3,095,741 | ||||||||||||||
Loans in forbearance | 3,118,774 | 3,288,412 | 3,593,891 | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 19,055,994 | 85.2 | % | 18,460,279 | 83.5 | % | 19,164,660 | 84.0 | % | |||||||||||
Loans delinquent 31-60 days | 950,055 | 4.2 | 1,043,119 | 4.8 | 1,026,046 | 4.5 | ||||||||||||||
Loans delinquent 61-90 days | 612,657 | 2.7 | 588,777 | 2.7 | 674,918 | 3.0 | ||||||||||||||
Loans delinquent 91-120 days | 355,636 | 1.6 | 404,905 | 1.8 | 376,068 | 1.5 | ||||||||||||||
Loans delinquent 121-270 days | 1,051,843 | 4.7 | 1,204,405 | 5.4 | 1,133,527 | 5.0 | ||||||||||||||
Loans delinquent 271 days or greater | 359,601 | 1.6 | 401,305 | 1.8 | 447,264 | 2.0 | ||||||||||||||
Total loans in repayment | 22,385,786 | 100.0 | % | 22,102,790 | 100.0 | % | 22,822,483 | 100.0 | % | |||||||||||
Total federally insured loans | $ | 28,138,648 | $ | 28,196,430 | $ | 29,512,115 | ||||||||||||||
Private education loans: | ||||||||||||||||||||
Loans in-school/grace/deferment | $ | 5,268 | $ | 905 | $ | 2,123 | ||||||||||||||
Loans in forbearance | 142 | — | — | |||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||
Loans current | 161,355 | 95.0 | % | 18,390 | 69.2 | % | 57,048 | 87.1 | % | |||||||||||
Loans delinquent 31-60 days | 1,407 | 0.8 | 1,078 | 4.1 | 1,008 | 1.5 | ||||||||||||||
Loans delinquent 61-90 days | 1,647 | 1.0 | 1,035 | 3.9 | 1,867 | 2.8 | ||||||||||||||
Loans delinquent 91 days or greater | 5,383 | 3.2 | 6,070 | 22.8 | 5,624 | 8.6 | ||||||||||||||
Total loans in repayment | 169,792 | 100.0 | % | 26,573 | 100.0 | % | 65,547 | 100.0 | % | |||||||||||
Total non-federally insured loans | $ | 175,202 | $ | 27,478 | $ | 67,670 |
|
As of June 30, 2015 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes issued in asset-backed securitizations: | |||||||
Bonds and notes based on indices | $ | 25,754,105 | 0.10% - 6.90% | 8/26/19 - 8/26/52 | |||
Bonds and notes based on auction | 1,171,515 | 1.06% - 2.09% | 3/22/32 - 11/26/46 | ||||
Total variable-rate bonds and notes | 26,925,620 | ||||||
FFELP warehouse facilities | 1,190,705 | 0.19% - 0.30% | 6/11/17 - 4/29/18 | ||||
Private education loan warehouse facility | 89,265 | 0.31% | 12/26/16 | ||||
Unsecured line of credit | 100,000 | 1.69% | 6/30/19 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 57,582 | 3.66% | 9/15/61 | ||||
Other borrowings | 79,336 | 1.69% - 5.10% | 11/11/15 - 10/31/16 | ||||
28,442,508 | |||||||
Discount on bonds and notes payable | (372,085 | ) | |||||
Total | $ | 28,070,423 |
As of December 31, 2014 | |||||||
Carrying amount | Interest rate range | Final maturity | |||||
Variable-rate bonds and notes issued in asset-backed securitizations: | |||||||
Bonds and notes based on indices | $ | 25,713,431 | 0.19% - 6.90% | 5/25/18 - 8/26/52 | |||
Bonds and notes based on auction | 1,311,669 | 0.47% - 2.17% | 3/22/32 - 11/26/46 | ||||
Total variable-rate bonds and notes | 27,025,100 | ||||||
FFELP warehouse facilities | 1,241,665 | 0.16% - 0.26% | 1/17/16 - 6/11/17 | ||||
Unsecured line of credit | — | — | 6/30/19 | ||||
Unsecured debt - Junior Subordinated Hybrid Securities | 71,688 | 3.63% | 9/15/61 | ||||
Other borrowings | 81,969 | 1.67% - 5.10% | 11/11/15 - 12/31/18 | ||||
28,420,422 | |||||||
Discount on bonds and notes payable | (393,072 | ) | |||||
Total | $ | 28,027,350 |
NHELP-III (a) | NFSLW-I (b) | NHELP-II | Total | ||||||||||
Maximum financing amount | $ | 750,000 | 750,000 | 500,000 | 2,000,000 | ||||||||
Amount outstanding | 282,005 | 571,084 | 337,616 | 1,190,705 | |||||||||
Amount available | $ | 467,995 | 178,916 | 162,384 | 809,295 | ||||||||
Expiration of liquidity provisions | April 29, 2016 | July 30, 2015 | December 17, 2015 | ||||||||||
Final maturity date | April 29, 2018 | June 11, 2017 | December 17, 2017 | ||||||||||
Maximum advance rates | 92.2 - 95.0% | 92.0 - 98.0% | 91.0 - 97.0% | ||||||||||
Minimum advance rates | 92.2 - 95.0% | 84.0 - 90.0% | 91.0 - 97.0% | ||||||||||
Advanced as equity support | $ | 7,751 | 27,211 | 18,808 | 53,770 |
(a) | On April 30, 2015, the Company amended the agreement for this warehouse facility to change the expiration date for the liquidity provisions to April 29, 2016, and to change the final maturity date to April 29, 2018. |
(b) | On May 14, 2015, the Company amended the agreement for this warehouse facility to extend the expiration of the liquidity provisions to July 30, 2015. On July 10, 2015, the Company amended the agreement for this warehouse facility to temporarily increase the maximum financing amount to $875.0 million, extend the expiration of the liquidity provisions to July 8, 2016, and extend the maturity date to July 9, 2018. The maximum financing amount is scheduled to decrease by $125.0 million on March 31, 2016. |
2015-1 | 2015-2 | 2015-3 | Total | ||||||||||||||||||||||||||
Class A-1 notes | Class A-2 notes | 2015-2 total | Class A-1 notes | Class A-2 notes | Class A-3 notes | 2015-3 total | |||||||||||||||||||||||
Date securities issued | 2/27/15 | 3/26/15 | 3/26/15 | 3/26/15 | 5/21/15 | 5/21/15 | 5/21/15 | 5/21/15 | |||||||||||||||||||||
Total original principal amount | $ | 566,346 | 122,500 | 584,500 | 722,000 | 82,500 | 270,000 | 41,400 | 401,400 | $ | 1,689,746 | ||||||||||||||||||
Class A senior notes: | |||||||||||||||||||||||||||||
Total original principal amount | $ | 553,232 | 122,500 | 584,500 | 707,000 | 82,500 | 270,000 | 41,400 | 393,900 | 1,654,132 | |||||||||||||||||||
Bond discount | — | — | — | — | — | (380 | ) | (1,095 | ) | (1,475 | ) | (1,475 | ) | ||||||||||||||||
Issue price | $ | 553,232 | 122,500 | 584,500 | 707,000 | 82,500 | 269,620 | 40,305 | 392,425 | 1,652,657 | |||||||||||||||||||
Cost of funds (1-month LIBOR plus:) | 0.59 | % | 0.27 | % | 0.60 | % | 0.30 | % | 0.60 | % | 0.90 | % | |||||||||||||||||
Final maturity date | 4/25/41 | 3/25/20 | 9/25/42 | 1/27/25 | 2/26/46 | 6/25/49 | |||||||||||||||||||||||
Class B subordinated notes: | |||||||||||||||||||||||||||||
Total original principal amount | $ | 13,114 | 15,000 | 7,500 | 35,614 | ||||||||||||||||||||||||
Bond discount | (1,157 | ) | (1,793 | ) | (968 | ) | (3,918 | ) | |||||||||||||||||||||
Issue price | $ | 11,957 | 13,207 | 6,532 | 31,696 | ||||||||||||||||||||||||
Cost of funds (1-month LIBOR plus:) | 1.50 | % | 1.50 | % | 1.50 | % | |||||||||||||||||||||||
Final maturity date | 6/25/46 | 5/25/49 | 6/27/50 |
Par value | Purchase price | Gain | Par value | Purchase price | Gain | |||||||||||||
Three months ended | ||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||
Unsecured debt - Hybrid Securities | $ | 2,255 | 1,781 | 474 | — | — | — | |||||||||||
Asset-backed securities | 22,146 | 21,105 | 1,041 | 200 | 182 | 18 | ||||||||||||
$ | 24,401 | 22,886 | 1,515 | 200 | 182 | 18 | ||||||||||||
Six months ended | ||||||||||||||||||
June 30, 2015 | June 30, 2014 | |||||||||||||||||
Unsecured debt - Hybrid Securities | $ | 14,106 | 11,108 | 2,998 | — | — | — | |||||||||||
Asset-backed securities | 22,146 | 21,105 | 1,041 | 1,550 | 1,493 | 57 | ||||||||||||
$ | 36,252 | 32,213 | 4,039 | 1,550 | 1,493 | 57 |
|
As of June 30, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
Maturity | Notional amount | Notional amount | |||||||
2016 | $ | 4,000,000 | $ | — | |||||
2021 | — | 250,000 | |||||||
2022 | 800,000 | 1,900,000 | |||||||
2023 | 1,250,000 | 3,650,000 | |||||||
2024 | — | 250,000 | |||||||
2026 | 300,000 | 800,000 | |||||||
2028 | — | 100,000 | |||||||
2036 | — | 700,000 | |||||||
2039 | — | 150,000 | |||||||
$ | 6,350,000 | $ | 7,800,000 |
As of June 30, 2015 | As of December 31, 2014 | |||||||||||||
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||
2015 | $ | 500,000 | 0.71 | % | $ | 1,100,000 | 0.89 | % | ||||||
2016 | 750,000 | 0.85 | 750,000 | 0.85 | ||||||||||
2017 | 1,850,000 | 0.83 | 1,250,000 | 0.86 | ||||||||||
2018 | 100,000 | 1.02 | — | — | ||||||||||
2025 | 100,000 | 2.32 | — | — | ||||||||||
$ | 3,300,000 | 0.87 | % | $ | 3,100,000 | 0.87 | % |
(a) | For all interest rate derivatives, the Company receives discrete three-month LIBOR. |
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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Re-measurement of Euro Notes | $ | (14,671 | ) | 2,751 | 33,538 | 1,798 | ||||||
Change in fair value of cross-currency interest rate swap | 13,933 | (2,999 | ) | (35,873 | ) | (3,037 | ) | |||||
Total impact to consolidated statements of income - income (expense) (a) | $ | (738 | ) | (248 | ) | (2,335 | ) | (1,239 | ) |
(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. |
Fair value of asset derivatives | Fair value of liability derivatives | |||||||||||
As of | As of | As of | As of | |||||||||
June 30, 2015 | December 31, 2014 | June 30, 2015 | December 31, 2014 | |||||||||
1:3 basis swaps | $ | 14,071 | 53,549 | 71 | — | |||||||
Interest rate swaps - floor income hedges | 7,262 | 5,165 | 4,470 | 5,034 | ||||||||
Interest rate swap option - floor income hedge | 6,148 | 5,678 | — | — | ||||||||
Interest rate swaps - hybrid debt hedges | — | — | 6,264 | 7,353 | ||||||||
Interest rate caps | 2,735 | — | — | — | ||||||||
Cross-currency interest rate swap | — | — | 56,328 | 20,455 | ||||||||
Total | $ | 30,216 | 64,392 | 67,133 | 32,842 |
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 pledged (received) | Net asset (liability) | |||||||||
Balance as of June 30, 2015 | $ | 30,216 | (6,801 | ) | 2,046 | 25,461 | |||||||
Balance as of December 31, 2014 | 64,392 | (12,387 | ) | — | 52,005 |
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 (received) | Net asset (liability) | |||||||||
Balance as of June 30, 2015 | $ | (67,133 | ) | 6,801 | (9,091 | ) | (69,423 | ) | |||||
Balance as of December 31, 2014 | (32,842 | ) | 12,387 | (1,454 | ) | (21,909 | ) |
Three months ended June 30, | Six months ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
Settlements: | ||||||||||||
1:3 basis swaps | $ | 123 | 858 | 389 | 1,739 | |||||||
Interest rate swaps - floor income hedges | (5,019 | ) | (6,974 | ) | (10,034 | ) | (13,924 | ) | ||||
Interest rate swaps - hybrid debt hedges | (253 | ) | (256 | ) | (505 | ) | (508 | ) | ||||
Cross-currency interest rate swap | (293 | ) | 158 | (507 | ) | 250 | ||||||
Total settlements - (expense) income | (5,442 | ) | (6,214 | ) | (10,657 | ) | (12,443 | ) | ||||
Change in fair value: | ||||||||||||
1:3 basis swaps | 1,428 | 11,910 | 12,398 | 13,020 | ||||||||
Interest rate swaps - floor income hedges | 7,534 | (2,813 | ) | 2,662 | 545 | |||||||
Interest rate swap option - floor income hedge | 1,381 | — | 470 | — | ||||||||
Interest rate swaps - hybrid debt hedges | 2,540 | (1,065 | ) | 1,087 | (2,578 | ) | ||||||
Interest rate caps | (201 | ) | — | (201 | ) | — | ||||||
Cross-currency interest rate swap | 13,933 | (2,999 | ) | (35,873 | ) | (3,037 | ) | |||||
Total change in fair value - income (expense) | 26,615 | 5,033 | (19,457 | ) | 7,950 | |||||||
Re-measurement of Euro Notes (foreign currency transaction adjustment) - (expense) income | (14,671 | ) | 2,751 | 33,538 | 1,798 | |||||||
Derivative market value and foreign currency adjustments and derivative settlements, net - income (expense) | $ | 6,502 | 1,570 | 3,424 | (2,695 | ) |
|
As of June 30, 2015 | As of December 31, 2014 | ||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses (a) | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||||||||||||
Investments (at fair value): | |||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||
Student loan asset-backed and other debt securities (b) | $ | 92,192 | 4,137 | (608 | ) | 95,721 | 131,589 | 6,204 | (236 | ) | 137,557 | ||||||||||||||
Equity securities | 846 | 1,734 | (58 | ) | 2,522 | 1,553 | 2,216 | (33 | ) | 3,736 | |||||||||||||||
Total available-for-sale investments | $ | 93,038 | 5,871 | (666 | ) | 98,243 | 133,142 | 8,420 | (269 | ) | 141,293 | ||||||||||||||
Trading investments: | |||||||||||||||||||||||||
Student loan asset-backed securities | 6,443 | 7,830 | |||||||||||||||||||||||
Equity securities | 13,084 | — | |||||||||||||||||||||||
Total trading investments | 19,527 | 7,830 | |||||||||||||||||||||||
Total available-for-sale and trading investments | 117,770 | 149,123 | |||||||||||||||||||||||
Other Investments and Notes Receivable (not measured at fair value): | |||||||||||||||||||||||||
Investments accounted for under the cost and equity methods | 82,281 | 36,991 | |||||||||||||||||||||||
Notes receivable | 31,321 | 30,643 | |||||||||||||||||||||||
Other | 14,376 | 18,952 | |||||||||||||||||||||||
Total investments and notes receivable | $ | 245,748 | 235,709 |
(a) | As of June 30, 2015, 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, 2015, 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. |
|
Weighted average remaining useful life as of June 30, 2015 (months) | As of June 30, 2015 | As of December 31, 2014 | ||||||
Amortizable intangible assets: | ||||||||
Customer relationships (net of accumulated amortization of $20,278 and $17,361, respectively) | 213 | $ | 24,413 | 27,330 | ||||
Trade names (net of accumulated amortization of $534 and $272, respectively) | 227 | 5,888 | 6,150 | |||||
Computer software (net of accumulated amortization of $3,048 and $1,896, respectively) | 37 | 5,817 | 6,969 | |||||
Content (net of accumulated amortization of $450 and $0, respectively) | 18 | 1,350 | 1,800 | |||||
Covenants not to compete (net of accumulated amortization of $38 and $21, respectively) | 107 | 316 | 333 | |||||
Total - amortizable intangible assets | 180 | $ | 37,784 | 42,582 |
2015 (July 1 - December 31) | $ | 4,797 | |
2016 | 6,249 | ||
2017 | 3,752 | ||
2018 | 3,533 | ||
2019 | 2,861 | ||
2020 and thereafter | 16,592 | ||
$ | 37,784 |
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Total | |||||||||||
Balance as of December 31, 2014 and June 30, 2015 | $ | 8,596 | 67,168 | 41,883 | 8,553 | 126,200 |
|
Three months ended June 30, 2015 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 13 | 1 | 176,279 | 1,814 | (385 | ) | 177,722 | ||||||||||
Interest expense | — | — | 71,441 | 1,570 | (385 | ) | 72,626 | |||||||||||
Net interest income | 13 | 1 | 104,838 | 244 | — | 105,096 | ||||||||||||
Less provision for loan losses | — | — | 2,150 | — | — | 2,150 | ||||||||||||
Net interest income after provision for loan losses | 13 | 1 | 102,688 | 244 | — | 102,946 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 63,833 | — | — | — | — | 63,833 | ||||||||||||
Intersegment servicing revenue | 12,223 | — | — | — | (12,223 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 27,686 | — | — | — | 27,686 | ||||||||||||
Enrollment services revenue | — | — | — | 17,161 | — | 17,161 | ||||||||||||
Other income | — | — | 3,950 | 3,554 | — | 7,504 | ||||||||||||
Gain on sale of loans and debt repurchases | — | — | 1,041 | 474 | — | 1,515 | ||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | 9,404 | 2,540 | — | 11,944 | ||||||||||||
Derivative settlements, net | — | — | (5,189 | ) | (253 | ) | — | (5,442 | ) | |||||||||
Total other income | 76,056 | 27,686 | 9,206 | 23,476 | (12,223 | ) | 124,201 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 31,585 | 13,583 | 524 | 13,095 | — | 58,787 | ||||||||||||
Cost to provide enrollment services | — | — | — | 11,162 | — | 11,162 | ||||||||||||
Loan servicing fees | — | — | 7,420 | — | — | 7,420 | ||||||||||||
Depreciation and amortization | 527 | 2,195 | — | 3,779 | — | 6,501 | ||||||||||||
Other | 15,376 | 4,112 | 1,270 | 11,200 | — | 31,958 | ||||||||||||
Intersegment expenses, net | 11,566 | 2,785 | 12,398 | (14,526 | ) | (12,223 | ) | — | ||||||||||
Total operating expenses | 59,054 | 22,675 | 21,612 | 24,710 | (12,223 | ) | 115,828 | |||||||||||
Income (loss) before income taxes and corporate overhead allocation | 17,015 | 5,012 | 90,282 | (990 | ) | — | 111,319 | |||||||||||
Corporate overhead allocation | (2,294 | ) | (918 | ) | (1,147 | ) | 4,359 | — | — | |||||||||
Income before income taxes | 14,721 | 4,094 | 89,135 | 3,369 | — | 111,319 | ||||||||||||
Income tax (expense) benefit | (5,594 | ) | (1,556 | ) | (33,871 | ) | 665 | — | (40,356 | ) | ||||||||
Net income | 9,127 | 2,538 | 55,264 | 4,034 | — | 70,963 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 54 | — | 54 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 9,127 | 2,538 | 55,264 | 3,980 | — | 70,909 | |||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 9 | 3 | 175,562 | 2,036 | (662 | ) | 176,948 | ||||||||||
Interest expense | — | — | 67,936 | 1,961 | (662 | ) | 69,235 | |||||||||||
Net interest income | 9 | 3 | 107,626 | 75 | — | 107,713 | ||||||||||||
Less provision for loan losses | — | — | 1,500 | — | — | 1,500 | ||||||||||||
Net interest income after provision for loan losses | 9 | 3 | 106,126 | 75 | — | 106,213 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 66,460 | — | — | — | — | 66,460 | ||||||||||||
Intersegment servicing revenue | 13,800 | — | — | — | (13,800 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 21,834 | — | — | — | 21,834 | ||||||||||||
Enrollment services revenue | — | — | — | 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 | 7,404 | 29,644 | (13,800 | ) | 125,342 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 30,082 | 11,112 | 570 | 12,124 | — | 53,888 | ||||||||||||
Cost to provide enrollment services | — | — | — | 13,311 | — | 13,311 | ||||||||||||
Loan servicing fees | — | — | 7,317 | — | — | 7,317 | ||||||||||||
Depreciation and amortization | 438 | 1,845 | — | 2,931 | — | 5,214 | ||||||||||||
Other | 16,975 | 2,956 | 1,528 | 11,601 | — | 33,060 | ||||||||||||
Intersegment expenses, net | 9,356 | 1,404 | 13,968 | (10,928 | ) | (13,800 | ) | — | ||||||||||
Total operating expenses | 56,851 | 17,317 | 23,383 | 29,039 | (13,800 | ) | 112,790 | |||||||||||
Income before income taxes and corporate overhead allocation | 23,418 | 4,520 | 90,147 | 680 | — | 118,765 | ||||||||||||
Corporate overhead allocation | (2,060 | ) | (687 | ) | (1,249 | ) | 3,996 | — | — | |||||||||
Income before income taxes | 21,358 | 3,833 | 88,898 | 4,676 | — | 118,765 | ||||||||||||
Income tax (expense) benefit | (8,116 | ) | (1,456 | ) | (33,781 | ) | 275 | — | (43,078 | ) | ||||||||
Net income | 13,242 | 2,377 | 55,117 | 4,951 | — | 75,687 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 693 | — | 693 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 13,242 | 2,377 | 55,117 | 4,258 | — | 74,994 | |||||||||||
Six months ended June 30, 2015 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 20 | 3 | 348,702 | 3,967 | (821 | ) | 351,871 | ||||||||||
Interest expense | — | — | 141,981 | 3,020 | (821 | ) | 144,180 | |||||||||||
Net interest income | 20 | 3 | 206,721 | 947 | — | 207,691 | ||||||||||||
Less provision for loan losses | — | — | 4,150 | — | — | 4,150 | ||||||||||||
Net interest income after provision for loan losses | 20 | 3 | 202,571 | 947 | — | 203,541 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 121,644 | — | — | — | — | 121,644 | ||||||||||||
Intersegment servicing revenue | 25,094 | — | — | — | (25,094 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 62,366 | — | — | — | 62,366 | ||||||||||||
Enrollment services revenue | — | — | — | 35,024 | — | 35,024 | ||||||||||||
Other income | — | — | 8,526 | 5,896 | — | 14,422 | ||||||||||||
Gain on sale of loans and debt repurchases | — | — | 1,392 | 2,998 | — | 4,390 | ||||||||||||
Derivative market value and foreign currency adjustments, net | — | — | 12,994 | 1,087 | — | 14,081 | ||||||||||||
Derivative settlements, net | — | — | (10,152 | ) | (505 | ) | — | (10,657 | ) | |||||||||
Total other income | 146,738 | 62,366 | 12,760 | 44,500 | (25,094 | ) | 241,270 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 65,288 | 26,904 | 1,065 | 26,580 | — | 119,837 | ||||||||||||
Cost to provide enrollment services | — | — | — | 22,864 | — | 22,864 | ||||||||||||
Loan servicing fees | — | — | 15,036 | — | — | 15,036 | ||||||||||||
Depreciation and amortization | 973 | 4,390 | — | 6,800 | — | 12,163 | ||||||||||||
Other | 29,976 | 7,914 | 2,407 | 20,859 | — | 61,156 | ||||||||||||
Intersegment expenses, net | 21,266 | 5,399 | 25,438 | (27,009 | ) | (25,094 | ) | — | ||||||||||
Total operating expenses | 117,503 | 44,607 | 43,946 | 50,094 | (25,094 | ) | 231,056 | |||||||||||
Income (loss) before income taxes and corporate overhead allocation | 29,255 | 17,762 | 171,385 | (4,647 | ) | — | 213,755 | |||||||||||
Corporate overhead allocation | (4,447 | ) | (1,780 | ) | (2,225 | ) | 8,452 | — | — | |||||||||
Income before income taxes | 24,808 | 15,982 | 169,160 | 3,805 | — | 213,755 | ||||||||||||
Income tax (expense) benefit | (9,428 | ) | (6,074 | ) | (64,280 | ) | 1,796 | — | (77,986 | ) | ||||||||
Net income | 15,380 | 9,908 | 104,880 | 5,601 | — | 135,769 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 95 | — | 95 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 15,380 | 9,908 | 104,880 | 5,506 | — | 135,674 | |||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||
Student Loan and Guaranty Servicing | Tuition Payment Processing and Campus Commerce | Asset Generation and Management | Corporate and Other Activities | Eliminations | Total | |||||||||||||
Total interest income | $ | 20 | 3 | 332,565 | 4,694 | (1,459 | ) | 335,823 | ||||||||||
Interest expense | — | — | 127,412 | 3,286 | (1,459 | ) | 129,239 | |||||||||||
Net interest income | 20 | 3 | 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 | 201,153 | 1,408 | — | 202,584 | ||||||||||||
Other income: | ||||||||||||||||||
Loan and guaranty servicing revenue | 131,217 | — | — | — | — | 131,217 | ||||||||||||
Intersegment servicing revenue | 28,021 | — | — | — | (28,021 | ) | — | |||||||||||
Tuition payment processing, school information, and campus commerce revenue | — | 47,069 | — | — | — | 47,069 | ||||||||||||
Enrollment services revenue | — | — | — | 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 | 9,107 | 63,857 | (28,021 | ) | 251,250 | |||||||||||
Operating expenses: | ||||||||||||||||||
Salaries and benefits | 59,481 | 21,139 | 1,179 | 24,573 | — | 106,372 | ||||||||||||
Cost to provide enrollment services | — | — | — | 27,786 | — | 27,786 | ||||||||||||
Loan servicing fees | — | — | 12,720 | — | — | 12,720 | ||||||||||||
Depreciation and amortization | 857 | 3,273 | — | 5,867 | — | 9,997 | ||||||||||||
Other | 32,625 | 5,603 | 3,271 | 21,785 | — | 63,284 | ||||||||||||
Intersegment expenses, net | 18,519 | 2,824 | 28,339 | (21,661 | ) | (28,021 | ) | — | ||||||||||
Total operating expenses | 111,482 | 32,839 | 45,509 | 58,350 | (28,021 | ) | 220,159 | |||||||||||
Income before income taxes and corporate overhead allocation | 47,776 | 14,233 | 164,751 | 6,915 | — | 233,675 | ||||||||||||
Corporate overhead allocation | (3,920 | ) | (1,307 | ) | (2,578 | ) | 7,805 | — | — | |||||||||
Income before income taxes | 43,856 | 12,926 | 162,173 | 14,720 | — | 233,675 | ||||||||||||
Income tax (expense) benefit | (16,665 | ) | (4,911 | ) | (61,625 | ) | (488 | ) | — | (83,689 | ) | |||||||
Net income | 27,191 | 8,015 | 100,548 | 14,232 | — | 149,986 | ||||||||||||
Net income attributable to noncontrolling interest | — | — | — | 1,206 | — | 1,206 | ||||||||||||
Net income attributable to Nelnet, Inc. | $ | 27,191 | 8,015 | 100,548 | 13,026 | — | 148,780 | |||||||||||
|
As of June 30, 2015 | As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||
Assets: | ||||||||||||||||||
Investments (available-for-sale and trading): | ||||||||||||||||||
Student loan asset-backed securities | $ | — | 101,821 | 101,821 | — | 145,000 | 145,000 | |||||||||||
Equity securities | 15,606 | — | 15,606 | 3,736 | — | 3,736 | ||||||||||||
Debt securities | 343 | — | 343 | 387 | — | 387 | ||||||||||||
Total investments (available-for-sale and trading) | 15,949 | 101,821 | 117,770 | 4,123 | 145,000 | 149,123 | ||||||||||||
Fair value of derivative instruments | — | 30,216 | 30,216 | — | 64,392 | 64,392 | ||||||||||||
Total assets | $ | 15,949 | 132,037 | 147,986 | 4,123 | 209,392 | 213,515 | |||||||||||
Liabilities: | ||||||||||||||||||
Fair value of derivative instruments | $ | — | 67,133 | 67,133 | — | 32,842 | 32,842 | |||||||||||
Total liabilities | $ | — | 67,133 | 67,133 | — | 32,842 | 32,842 |
As of June 30, 2015 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 28,824,415 | 28,095,775 | — | — | 28,824,415 | |||||||||
Cash and cash equivalents | 182,280 | 182,280 | 182,280 | — | — | ||||||||||
Investments (available-for-sale and trading) | 117,770 | 117,770 | 15,949 | 101,821 | — | ||||||||||
Notes receivable | 28,644 | 31,321 | — | 28,644 | — | ||||||||||
Restricted cash | 848,479 | 848,479 | 848,479 | — | — | ||||||||||
Restricted cash – due to customers | 117,820 | 117,820 | 117,820 | — | — | ||||||||||
Restricted investments | 9,374 | 9,374 | 9,374 | — | — | ||||||||||
Accrued interest receivable | 364,211 | 364,211 | — | 364,211 | — | ||||||||||
Derivative instruments | 30,216 | 30,216 | — | 30,216 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 27,661,342 | 28,070,423 | — | 27,661,342 | — | ||||||||||
Accrued interest payable | 28,859 | 28,859 | — | 28,859 | — | ||||||||||
Due to customers | 117,820 | 117,820 | 117,820 | — | — | ||||||||||
Derivative instruments | 67,133 | 67,133 | — | 67,133 | — |
As of December 31, 2014 | |||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||
Financial assets: | |||||||||||||||
Student loans receivable | $ | 28,954,226 | 28,005,195 | — | — | 28,954,226 | |||||||||
Cash and cash equivalents | 130,481 | 130,481 | 130,481 | — | — | ||||||||||
Investments (available-for-sale and trading) | 149,123 | 149,123 | 4,123 | 145,000 | — | ||||||||||
Notes receivable | 28,832 | 30,643 | — | 28,832 | — | ||||||||||
Restricted cash | 800,164 | 800,164 | 800,164 | — | — | ||||||||||
Restricted cash – due to customers | 118,488 | 118,488 | 118,488 | — | — | ||||||||||
Restricted investments | 50,276 | 50,276 | 50,276 | — | — | ||||||||||
Accrued interest receivable | 351,588 | 351,588 | — | 351,588 | — | ||||||||||
Derivative instruments | 64,392 | 64,392 | — | 64,392 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Bonds and notes payable | 27,809,997 | 28,027,350 | — | 27,809,997 | — | ||||||||||
Accrued interest payable | 25,904 | 25,904 | — | 25,904 | — | ||||||||||
Due to customers | 118,488 | 118,488 | 118,488 | — | — | ||||||||||
Derivative instruments | 32,842 | 32,842 | — | 32,842 | — |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|