Segment Reporting |
Segment Reporting See note 14 of the notes to consolidated financial statements included in the 2018 Annual Report for a description of the Company's operating segments. The following tables include the results of each of the Company's operating segments reconciled to the consolidated financial statements. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, 2019 | | | | | | | | | | | | | | | Loan Servicing and Systems | | | Education Technology, Services, and Payment Processing | | | Communications | | | Asset Generation and Management | | | Corporate and Other Activities | | | Eliminations | | | Total | | Total interest income | $ | 532 | | | 3,499 | | | — | | | 233,225 | | | 2,859 | | | (1,171) | | | 238,945 | | Interest expense | 51 | | | 12 | | | — | | | 171,485 | | | 2,110 | | | (1,171) | | | 172,488 | | Net interest income (expense) | 481 | | | 3,487 | | | — | | | 61,740 | | | 749 | | | — | | | 66,457 | | Less provision for loan losses | — | | | — | | | — | | | 10,000 | | | — | | | — | | | 10,000 | | Net interest income (loss) after provision for loan losses | 481 | | | 3,487 | | | — | | | 51,740 | | | 749 | | | — | | | 56,457 | | Other income: | | | | | | | | | | | | | | Loan servicing and systems revenue | 113,286 | | | — | | | — | | | — | | | — | | | — | | | 113,286 | | Intersegment servicing revenue | 11,611 | | | — | | | — | | | — | | | — | | | (11,611) | | | — | | Education technology, services, and payment processing revenue | — | | | 74,251 | | | — | | | — | | | — | | | — | | | 74,251 | | Communications revenue | — | | | — | | | 16,470 | | | — | | | — | | | — | | | 16,470 | | Other income | 2,291 | | | — | | | 532 | | | 3,384 | | | 7,231 | | | — | | | 13,439 | | | | | | | | | | | | | | | | Derivative settlements, net | — | | | — | | | — | | | 7,298 | | | — | | | — | | | 7,298 | | Derivative market value adjustments, net | — | | | — | | | — | | | (5,630) | | | — | | | — | | | (5,630) | | Total other income | 127,188 | | | 74,251 | | | 17,002 | | | 5,052 | | | 7,231 | | | (11,611) | | | 219,114 | | Cost of services: | | | | | | | | | | | | | | Cost to provide education technology, services, and payment processing services | — | | | 25,671 | | | — | | | — | | | — | | | — | | | 25,671 | | Cost to provide communications services | — | | | — | | | 5,236 | | | — | | | — | | | — | | | 5,236 | | Total cost of services | — | | | 25,671 | | | 5,236 | | | — | | | — | | | — | | | 30,907 | | Operating expenses: | | | | | | | | | | | | | | Salaries and benefits | 69,209 | | | 23,826 | | | 5,763 | | | 394 | | | 17,479 | | | — | | | 116,670 | | Depreciation and amortization | 8,565 | | | 2,997 | | | 10,926 | | | — | | | 5,212 | | | — | | | 27,701 | | Loan servicing fees to third parties | — | | | — | | | — | | | 3,382 | | | — | | | — | | | 3,382 | | Other expenses | 16,686 | | | 5,325 | | | 3,842 | | | 15,672 | | | 13,422 | | | — | | | 54,947 | | Intersegment expenses, net | 12,955 | | | 3,194 | | | 701 | | | 11,678 | | | (16,917) | | | (11,611) | | | — | | Total operating expenses | 107,415 | | | 35,342 | | | 21,232 | | | 31,126 | | | 19,196 | | | (11,611) | | | 202,700 | | Income (loss) before income taxes | 20,254 | | | 16,725 | | | (9,466) | | | 25,666 | | | (11,216) | | | — | | | 41,964 | | Income tax (expense) benefit | (4,861) | | | (4,014) | | | 2,272 | | | (6,160) | | | 3,935 | | | — | | | (8,829) | | Net income (loss) | 15,393 | | | 12,711 | | | (7,194) | | | 19,506 | | | (7,281) | | | — | | | 33,135 | | Net loss (income) attributable to noncontrolling interests | — | | | — | | | — | | | — | | | 77 | | | — | | | 77 | | Net income (loss) attributable to Nelnet, Inc. | $ | 15,393 | | | 12,711 | | | (7,194) | | | 19,506 | | | (7,204) | | | — | | | 33,212 | | | | | | | | | | | | | | | | Total assets as of September 30, 2019 | $ | 222,606 | | | 413,076 | | | 306,743 | | | 22,520,688 | | | 685,998 | | | (212,392) | | | 23,936,719 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended September 30, 2018 | | | | | | | | | | | | | | | Loan Servicing and Systems | | | Education Technology, Services, and Payment Processing | | | Communications | | | Asset Generation and Management | | Corporate and Other Activities | | | Eliminations | | | Total | | Total interest income | $ | 381 | | | 1,513 | | | 1 | | | 236,039 | | | 6,860 | | | (4,846) | | | 239,948 | | Interest expense | — | | | 3 | | | 4,174 | | | 176,874 | | | 3,968 | | | (4,846) | | | 180,175 | | Net interest income (expense) | 381 | | | 1,510 | | | (4,173) | | | 59,165 | | | 2,892 | | | — | | | 59,773 | | Less provision for loan losses | — | | | — | | | — | | | 10,500 | | | — | | | — | | | 10,500 | | Net interest income (loss) after provision for loan losses | 381 | | | 1,510 | | | (4,173) | | | 48,665 | | | 2,892 | | | — | | | 49,273 | | Other income: | | | | | | | | | | | | | | Loan servicing and systems revenue | 112,579 | | | — | | | — | | | — | | | — | | | — | | | 112,579 | | Intersegment servicing revenue | 12,290 | | | — | | | — | | | — | | | — | | | (12,290) | | | — | | Education technology, services, and payment processing revenue | — | | | 58,409 | | | — | | | — | | | — | | | — | | | 58,409 | | Communications revenue | — | | | — | | | 11,818 | | | — | | | — | | | — | | | 11,818 | | Other income | 1,948 | | | — | | | 950 | | | 3,267 | | | 10,508 | | | — | | | 16,673 | | | | | | | | | | | | | | | | Derivative settlements, net | — | | | — | | | — | | | 22,448 | | | (124) | | | — | | | 22,324 | | Derivative market value adjustments, net | — | | | — | | | — | | | (6,056) | | | 830 | | | — | | | (5,226) | | Total other income | 126,817 | | | 58,409 | | | 12,768 | | | 19,659 | | | 11,214 | | | (12,290) | | | 216,577 | | Cost of services: | | | | | | | | | | | | | | Cost to provide education technology, services, and payment processing services | — | | | 19,087 | | | — | | | — | | | — | | | — | | | 19,087 | | Cost to provide communications services | — | | | — | | | 4,310 | | | — | | | — | | | — | | | 4,310 | | Total cost of services | — | | | 19,087 | | | 4,310 | | | — | | | — | | | — | | | 23,397 | | Operating expenses: | | | | | | | | | | | | | | Salaries and benefits | 70,440 | | | 19,972 | | | 4,554 | | | 424 | | | 18,782 | | | — | | | 114,172 | | Depreciation and amortization | 8,957 | | | 3,435 | | | 6,167 | | | — | | | 4,433 | | | — | | | 22,992 | | Loan servicing fees to third parties | — | | | — | | | — | | | 3,087 | | | — | | | — | | | 3,087 | | Other expenses | 19,638 | | | 4,943 | | | 3,151 | | | 845 | | | 16,616 | | | — | | | 45,194 | | Intersegment expenses, net | 15,029 | | | 2,494 | | | 598 | | | 12,378 | | | (18,208) | | | (12,290) | | | — | | Total operating expenses | 114,064 | | | 30,844 | | | 14,470 | | | 16,734 | | | 21,623 | | | (12,290) | | | 185,445 | | Income (loss) before income taxes | 13,134 | | | 9,988 | | | (10,185) | | | 51,590 | | | (7,517) | | | — | | | 57,008 | | Income tax (expense) benefit | (3,152) | | | (2,397) | | | 2,444 | | | (12,381) | | | 1,604 | | | — | | | (13,882) | | Net income (loss) | 9,982 | | | 7,591 | | | (7,741) | | | 39,209 | | | (5,913) | | | — | | | 43,126 | | Net loss (income) attributable to noncontrolling interests | — | | | — | | | — | | | — | | | (199) | | | — | | | (199) | | Net income (loss) attributable to Nelnet, Inc. | $ | 9,982 | | | 7,591 | | | (7,741) | | | 39,209 | | | (6,112) | | | — | | | 42,927 | | | | | | | | | | | | | | | | Total assets as of September 30, 2018 | $ | 276,153 | | | 243,497 | | | 271,370 | | | 23,927,156 | | | 723,985 | | | (337,236) | | | 25,104,925 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2019 | | | | | | | | | | | | | | | Loan Servicing and Systems | | | Education Technology, Services, and Payment Processing | | | Communications | | | Asset Generation and Management | | Corporate and Other Activities | | | Eliminations | | | Total | | Total interest income | $ | 1,579 | | | 7,175 | | | 3 | | | 723,388 | | | 7,170 | | | (2,995) | | | 736,319 | | Interest expense | 70 | | | 32 | | | — | | | 544,319 | | | 9,796 | | | (2,995) | | | 551,221 | | Net interest income (expense) | 1,509 | | | 7,143 | | | 3 | | | 179,069 | | | (2,626) | | | — | | | 185,098 | | Less provision for loan losses | — | | | — | | | — | | | 26,000 | | | — | | | — | | | 26,000 | | Net interest income (loss) after provision for loan losses | 1,509 | | | 7,143 | | | 3 | | | 153,069 | | | (2,626) | | | — | | | 159,098 | | Other income: | | | | | | | | | | | | | | Loan servicing and systems revenue | 342,169 | | | — | | | — | | | — | | | — | | | — | | | 342,169 | | Intersegment servicing revenue | 35,426 | | | — | | | — | | | — | | | — | | | (35,426) | | | — | | Education technology, services, and payment processing revenue | — | | | 213,753 | | | — | | | — | | | — | | | — | | | 213,753 | | Communications revenue | — | | | — | | | 46,770 | | | — | | | — | | | — | | | 46,770 | | Other income | 6,642 | | | — | | | 1,019 | | | 11,796 | | | 19,200 | | | — | | | 38,658 | | | | | | | | | | | | | | | | Derivative settlements, net | — | | | — | | | — | | | 39,306 | | | — | | | — | | | 39,306 | | Derivative market value adjustments, net | — | | | — | | | — | | | (73,265) | | | — | | | — | | | (73,265) | | Total other income | 384,237 | | | 213,753 | | | 47,789 | | | (22,163) | | | 19,200 | | | (35,426) | | | 607,391 | | Cost of services: | | | | | | | | | | | | | | Cost to provide education technology, services, and payment processing services | — | | | 62,601 | | | — | | | — | | | — | | | — | | | 62,601 | | Cost to provide communications services | — | | | — | | | 15,096 | | | — | | | — | | | — | | | 15,096 | | Total cost of services | — | | | 62,601 | | | 15,096 | | | — | | | — | | | — | | | 77,697 | | Operating expenses: | | | | | | | | | | | | | | Salaries and benefits | 201,924 | | | 69,656 | | | 15,692 | | | 1,153 | | | 50,517 | | | — | | | 338,942 | | Depreciation and amortization | 26,236 | | | 9,832 | | | 26,025 | | | — | | | 14,305 | | | — | | | 76,398 | | Loan servicing fees to third parties | — | | | — | | | — | | | 9,431 | | | — | | | — | | | 9,431 | | Other expenses | 52,732 | | | 16,440 | | | 11,184 | | | 19,667 | | | 38,107 | | | — | | | 138,131 | | Intersegment expenses, net | 40,317 | | | 9,642 | | | 2,081 | | | 35,630 | | | (52,244) | | | (35,426) | | | — | | Total operating expenses | 321,209 | | | 105,570 | | | 54,982 | | | 65,881 | | | 50,685 | | | (35,426) | | | 562,902 | | Income (loss) before income taxes | 64,537 | | | 52,725 | | | (22,286) | | | 65,025 | | | (34,111) | | | — | | | 125,890 | | Income tax (expense) benefit | (15,489) | | | (12,654) | | | 5,349 | | | (15,606) | | | 11,971 | | | — | | | (26,429) | | Net income (loss) | 49,048 | | | 40,071 | | | (16,937) | | | 49,419 | | | (22,140) | | | — | | | 99,461 | | Net loss (income) attributable to noncontrolling interests | — | | | — | | | — | | | — | | | (38) | | | — | | | (38) | | Net income (loss) attributable to Nelnet, Inc. | $ | 49,048 | | | 40,071 | | | (16,937) | | | 49,419 | | | (22,178) | | | — | | | 99,423 | | | | | | | | | | | | | | | | Total assets as of September 30, 2019 | $ | 222,606 | | | 413,076 | | | 306,743 | | | 22,520,688 | | | 685,998 | | | (212,392) | | | 23,936,719 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine months ended September 30, 2018 | | | | | | | | | | | | | | | Loan Servicing and Systems | | | Education Technology, Services, and Payment Processing | | | Communications | | | Asset Generation and Management | | Corporate and Other Activities | | | Eliminations | | | Total | | Total interest income | $ | 931 | | | 2,927 | | | 3 | | | 662,881 | | | 17,673 | | | (12,420) | | | 671,995 | | Interest expense | — | | | 3 | | | 9,987 | | | 480,729 | | | 8,875 | | | (12,420) | | | 487,174 | | Net interest income (expense) | 931 | | | 2,924 | | | (9,984) | | | 182,152 | | | 8,798 | | | — | | | 184,821 | | Less provision for loan losses | — | | | — | | | — | | | 18,000 | | | — | | | — | | | 18,000 | | Net interest income (loss) after provision for loan losses | 931 | | | 2,924 | | | (9,984) | | | 164,152 | | | 8,798 | | | — | | | 166,821 | | Other income: | | | | | | | | | | | | | | Loan servicing and systems revenue | 327,265 | | | — | | | — | | | — | | | — | | | — | | | 327,265 | | Intersegment servicing revenue | 34,670 | | | — | | | — | | | — | | | — | | | (34,670) | | | — | | Education technology, services, and payment processing revenue | — | | | 167,372 | | | — | | | — | | | — | | | — | | | 167,372 | | Communications revenue | — | | | — | | | 31,327 | | | — | | | — | | | — | | | 31,327 | | Other income | 5,196 | | | — | | | 950 | | | 9,391 | | | 29,272 | | | — | | | 44,808 | | | | | | | | | | | | | | | | Derivative settlements, net | — | | | — | | | — | | | 51,428 | | | (410) | | | — | | | 51,018 | | Derivative market value adjustments, net | — | | | — | | | — | | | 47,070 | | | 2,839 | | | — | | | 49,909 | | Total other income | 367,131 | | | 167,372 | | | 32,277 | | | 107,889 | | | 31,701 | | | (34,670) | | | 671,699 | | Cost of services: | | | | | | | | | | | | | | Cost to provide education technology, services, and payment processing services | — | | | 44,087 | | | — | | | — | | | — | | | — | | | 44,087 | | Cost to provide communications services | — | | | — | | | 11,892 | | | — | | | — | | | — | | | 11,892 | | Total cost of services | — | | | 44,087 | | | 11,892 | | | — | | | — | | | — | | | 55,979 | | Operating expenses: | | | | | | | | | | | | | | Salaries and benefits | 198,411 | | | 58,552 | | | 13,284 | | | 1,183 | | | 50,502 | | | — | | | 321,932 | | Depreciation and amortization | 23,237 | | | 10,062 | | | 16,585 | | | — | | | 13,058 | | | — | | | 62,943 | | Loan servicing fees to third parties | — | | | — | | | — | | | 9,428 | | | — | | | — | | | 9,428 | | Other expenses | 51,591 | | | 14,950 | | | 8,811 | | | 2,982 | | | 40,686 | | | — | | | 119,020 | | Intersegment expenses, net | 43,968 | | | 7,630 | | | 1,802 | | | 34,943 | | | (53,672) | | | (34,670) | | | — | | Total operating expenses | 317,207 | | | 91,194 | | | 40,482 | | | 48,536 | | | 50,574 | | | (34,670) | | | 513,323 | | Income (loss) before income taxes | 50,855 | | | 35,015 | | | (30,081) | | | 223,505 | | | (10,075) | | | — | | | 269,218 | | Income tax (expense) benefit | (12,399) | | | (8,404) | | | 7,220 | | | (53,641) | | | 3,855 | | | — | | | (63,369) | | Net income (loss) | 38,456 | | | 26,611 | | | (22,861) | | | 169,864 | | | (6,220) | | | — | | | 205,849 | | Net loss (income) attributable to noncontrolling interests | 808 | | | — | | | — | | | — | | | (371) | | | — | | | 438 | | Net income (loss) attributable to Nelnet, Inc. | $ | 39,264 | | | 26,611 | | | (22,861) | | | 169,864 | | | (6,591) | | | — | | | 206,287 | | | | | | | | | | | | | | | | Total assets as of September 30, 2018 | $ | 276,153 | | | 243,497 | | | 271,370 | | | 23,927,156 | | | 723,985 | | | (337,236) | | | 25,104,925 | |
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