Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | NAVI |
Entity Registrant Name | NAVIENT CORP |
Entity Central Index Key | 1,593,538 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 264,627,306 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Investments | ||
Available-for-sale | $ 2 | $ 2 |
Other | 360 | 386 |
Total investments | 362 | 388 |
Cash and cash equivalents | 1,622 | 1,518 |
Restricted cash and cash equivalents | 3,386 | 3,128 |
Goodwill and acquired intangible assets, net | 798 | 810 |
Other assets | 3,604 | 4,025 |
Total assets | 108,949 | 114,991 |
Liabilities | ||
Short-term borrowings | 4,752 | 4,771 |
Long-term borrowings | 98,690 | 105,012 |
Other liabilities | 1,762 | 1,723 |
Total liabilities | 105,204 | 111,506 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.01 per share, 1.125 billion shares authorized: 445 million and 440 million shares issued, respectively | 4 | 4 |
Additional paid-in capital | 3,134 | 3,077 |
Accumulated other comprehensive income (net of tax expense of $65 and $36, respectively) | 203 | 61 |
Retained earnings | 3,114 | 3,004 |
Total Navient Corporation stockholders’ equity before treasury stock | 6,455 | 6,146 |
Less: Common stock held in treasury at cost: 180 million and 177 million shares, respectively | (2,741) | (2,692) |
Total Navient Corporation stockholders’ equity | 3,714 | 3,454 |
Noncontrolling interest | 31 | 31 |
Total equity | 3,745 | 3,485 |
Total liabilities and equity | 108,949 | 114,991 |
FFELP Loans [Member] | ||
Assets | ||
Loans, net | 76,609 | 81,703 |
Private Education Loans [Member] | ||
Assets | ||
Loans, net | 22,568 | 23,419 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Assets | ||
Loans, net | 92,934 | 98,596 |
Investments | ||
Restricted cash | 3,326 | 3,091 |
Other assets, net | 1,245 | 1,160 |
Liabilities | ||
Short-term borrowings | 2,251 | 2,906 |
Long-term borrowings | 85,310 | 89,317 |
Net assets of consolidated variable interest entities | 9,944 | 10,624 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loans [Member] | ||
Assets | ||
Loans, net | 73,107 | 77,710 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loans [Member] | ||
Assets | ||
Loans, net | $ 19,827 | $ 20,886 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for loans losses | $ 1,389 | $ 1,367 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued | 445,000,000 | 440,000,000 |
Tax expense for accumulated other comprehensive income | $ 65 | $ 36 |
Common stock held in treasury | 180,000,000 | 177,000,000 |
FFELP Loans [Member] | ||
Allowance for loans losses | $ 82 | $ 60 |
Private Education Loans [Member] | ||
Allowance for loans losses | $ 1,297 | $ 1,297 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Cash and investments | $ 24 | $ 10 | $ 41 | $ 17 |
Total interest income | 1,227 | 1,070 | 2,399 | 2,085 |
Total interest expense | 929 | 719 | 1,773 | 1,394 |
Net interest income | 298 | 351 | 626 | 691 |
Less: provisions for loan losses | 112 | 105 | 199 | 212 |
Net interest income after provisions for loan losses | 186 | 246 | 427 | 479 |
Other income (loss): | ||||
Servicing revenue | 71 | 70 | 140 | 146 |
Asset recovery and business processing revenue | 99 | 111 | 207 | 210 |
Other income (loss) | 13 | 6 | 1 | (1) |
Losses on debt repurchases | (7) | (8) | ||
Gains (losses) on derivative and hedging activities, net | (40) | (25) | 8 | (41) |
Total other income | 136 | 162 | 348 | 314 |
Expenses: | ||||
Salaries and benefits | 125 | 124 | 259 | 253 |
Other operating expenses | 76 | 106 | 217 | 216 |
Total operating expenses | 201 | 230 | 476 | 469 |
Goodwill and acquired intangible asset impairment and amortization expense | 6 | 6 | 16 | 11 |
Restructuring/other reorganization expenses | 2 | 9 | ||
Total expenses | 209 | 236 | 501 | 480 |
Income before income tax expense | 113 | 172 | 274 | 313 |
Income tax expense | 30 | 60 | 64 | 113 |
Net income attributable to Navient Corporation | $ 83 | $ 112 | $ 210 | $ 200 |
Basic earnings per common share attributable to Navient Corporation | $ 0.31 | $ 0.40 | $ 0.79 | $ 0.70 |
Average common shares outstanding | 265 | 280 | 264 | 284 |
Diluted earnings per common share attributable to Navient Corporation | $ 0.31 | $ 0.39 | $ 0.78 | $ 0.69 |
Average common and common equivalent shares outstanding | 269 | 285 | 269 | 291 |
Dividends per common share attributable to Navient Corporation | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
FFELP Loans [Member] | ||||
Interest income: | ||||
Total interest income | $ 760 | $ 668 | $ 1,483 | $ 1,298 |
Less: provisions for loan losses | 40 | 10 | 50 | 20 |
Private Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 442 | 386 | 873 | 760 |
Less: provisions for loan losses | 72 | 95 | 149 | 190 |
Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | $ 1 | $ 6 | $ 2 | $ 10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 83 | $ 112 | $ 210 | $ 200 |
Other comprehensive income (loss): | ||||
Gains (losses) on derivatives | 42 | (24) | 173 | 1 |
Reclassification adjustments for derivative (gains) losses included in net income (interest expense) | (1) | (1) | ||
Total gains (losses) on derivatives | 41 | (24) | 172 | 1 |
Income tax (expense) benefit | (11) | 9 | (43) | |
Other comprehensive income (loss), net of tax expense (benefit) | 30 | (15) | 129 | 1 |
Total comprehensive income attributable to Navient Corporation | $ 113 | $ 97 | $ 339 | $ 201 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Common Stock Shares Outstanding [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total Stockholders' Equity [Member] | Noncontrolling Interest [Member] |
Beginning Balance, Value at Dec. 31, 2016 | $ 3,723 | $ 4 | $ (2,223) | $ 3,022 | $ 6 | $ 2,890 | $ 3,699 | $ 24 | |
Beginning Balance, Shares at Dec. 31, 2016 | 436,037,666 | (145,173,548) | 290,864,118 | ||||||
Comprehensive income: | |||||||||
Net income | 200 | 200 | 200 | ||||||
Other comprehensive income (loss), net of tax | 1 | 1 | 1 | ||||||
Total comprehensive income | 201 | 201 | |||||||
Cash dividends: | |||||||||
Common stock | (91) | (91) | (91) | ||||||
Dividend equivalent units related to employee stock-based compensation plans | (2) | (2) | (2) | ||||||
Issuance of common shares | $ 15 | 15 | 15 | ||||||
Issuance of common shares, Shares | 3,150,312 | 3,150,312 | 3,150,312 | ||||||
Stock-based compensation expense | $ 19 | 19 | 19 | ||||||
Common stock repurchased | (275) | $ (275) | $ (275) | (275) | |||||
Common stock repurchased, Shares | (18,300,007) | (18,300,007) | |||||||
Shares repurchased related to employee stock-based compensation plans | $ (26) | $ (26) | (26) | ||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (1,610,155) | (1,610,155) | (1,610,155) | ||||||
Ending Balance, Value at Jun. 30, 2017 | $ 3,564 | $ 4 | $ (2,524) | 3,056 | 7 | 2,997 | 3,540 | 24 | |
Ending Balance, Shares at Jun. 30, 2017 | 439,187,978 | (165,083,710) | 274,104,268 | ||||||
Beginning Balance, Value at Mar. 31, 2017 | 3,672 | $ 4 | $ (2,355) | 3,047 | 22 | 2,930 | 3,648 | 24 | |
Beginning Balance, Shares at Mar. 31, 2017 | 438,832,176 | (153,891,120) | 284,941,056 | ||||||
Comprehensive income: | |||||||||
Net income | 112 | 112 | 112 | ||||||
Other comprehensive income (loss), net of tax | (15) | (15) | (15) | ||||||
Total comprehensive income | 97 | 97 | |||||||
Cash dividends: | |||||||||
Common stock | (45) | (45) | (45) | ||||||
Issuance of common shares | $ 3 | 3 | 3 | ||||||
Issuance of common shares, Shares | 355,802 | 355,802 | 355,802 | ||||||
Stock-based compensation expense | $ 6 | 6 | 6 | ||||||
Common stock repurchased | (165) | $ (165) | (165) | ||||||
Common stock repurchased, Shares | (10,936,715) | (10,936,715) | |||||||
Shares repurchased related to employee stock-based compensation plans | $ (4) | $ (4) | (4) | ||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (255,875) | (255,875) | (255,875) | ||||||
Ending Balance, Value at Jun. 30, 2017 | $ 3,564 | $ 4 | $ (2,524) | 3,056 | 7 | 2,997 | 3,540 | 24 | |
Ending Balance, Shares at Jun. 30, 2017 | 439,187,978 | (165,083,710) | 274,104,268 | ||||||
Beginning Balance, Value at Dec. 31, 2017 | 3,485 | $ 4 | $ (2,692) | 3,077 | 61 | 3,004 | 3,454 | 31 | |
Beginning Balance, Shares at Dec. 31, 2017 | 439,718,145 | (176,667,573) | 263,050,572 | ||||||
Comprehensive income: | |||||||||
Net income | 210 | 210 | 210 | ||||||
Other comprehensive income (loss), net of tax | 129 | 129 | 129 | ||||||
Total comprehensive income | 339 | 339 | |||||||
Cash dividends: | |||||||||
Common stock | (85) | (85) | (85) | ||||||
Dividend equivalent units related to employee stock-based compensation plans | (2) | (2) | (2) | ||||||
Issuance of common shares | $ 39 | 39 | 39 | ||||||
Issuance of common shares, Shares | 5,134,238 | 5,134,238 | 5,134,238 | ||||||
Stock-based compensation expense | $ 18 | 18 | 18 | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (49) | $ (49) | (49) | ||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (3,557,504) | (3,557,504) | (3,557,504) | ||||||
Reclassification from adoption of ASU No. 2018-02 | $ (13) | 13 | (13) | ||||||
Ending Balance, Value at Jun. 30, 2018 | 3,745 | $ 4 | $ (2,741) | 3,134 | 203 | 3,114 | 3,714 | 31 | |
Ending Balance, Shares at Jun. 30, 2018 | 444,852,383 | (180,225,077) | 264,627,306 | ||||||
Beginning Balance, Value at Mar. 31, 2018 | 3,668 | $ 4 | $ (2,740) | 3,127 | 173 | 3,073 | 3,637 | 31 | |
Beginning Balance, Shares at Mar. 31, 2018 | 444,739,212 | (180,132,708) | 264,606,504 | ||||||
Comprehensive income: | |||||||||
Net income | 83 | 83 | 83 | ||||||
Other comprehensive income (loss), net of tax | 30 | 30 | 30 | ||||||
Total comprehensive income | 113 | 113 | |||||||
Cash dividends: | |||||||||
Common stock | (42) | (42) | (42) | ||||||
Issuance of common shares | $ 1 | 1 | 1 | ||||||
Issuance of common shares, Shares | 113,171 | 113,171 | 113,171 | ||||||
Stock-based compensation expense | $ 6 | 6 | 6 | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (1) | $ (1) | (1) | ||||||
Shares repurchased related to employee stock-based compensation plans, Shares | (92,369) | (92,369) | (92,369) | ||||||
Ending Balance, Value at Jun. 30, 2018 | $ 3,745 | $ 4 | $ (2,741) | $ 3,134 | $ 203 | $ 3,114 | $ 3,714 | $ 31 | |
Ending Balance, Shares at Jun. 30, 2018 | 444,852,383 | (180,225,077) | 264,627,306 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Dividends per common share attributable to Navient Corporation | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Retained Earnings [Member] | ||||
Dividends per common share attributable to Navient Corporation | 0.16 | 0.16 | 0.32 | 0.32 |
Total Stockholders' Equity [Member] | ||||
Dividends per common share attributable to Navient Corporation | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Operating activities | |||
Net income | $ 83 | $ 210 | $ 200 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses on debt repurchases | 7 | 8 | |
Goodwill and acquired intangible asset impairment and amortization expense | 6 | 16 | 11 |
Stock-based compensation expense | 18 | 19 | |
Mark-to-market (gains) losses on derivative and hedging activities | (63) | 21 | |
Less: provisions for loan losses | 112 | 199 | 212 |
(Increase) decrease in accrued interest receivable | (121) | 28 | |
Increase in accrued interest payable | 86 | 17 | |
Decrease in other assets | 160 | 99 | |
(Decrease) increase in other liabilities | (31) | 23 | |
Total net cash provided by operating activities | 482 | 630 | |
Investing activities | |||
Education loans acquired | (1,555) | (5,711) | |
Reduction of education loans: | |||
Installment payments | 7,340 | 7,751 | |
Other investing activities, net | (38) | (180) | |
Proceeds from maturities of other securities | 9 | 15 | |
Total net cash provided by investing activities | 5,756 | 1,875 | |
Financing activities | |||
Borrowings collateralized by loans in trust — issued | 5,443 | 4,090 | |
Borrowings collateralized by loans in trust — repaid | (6,791) | (7,190) | |
Long-term notes issued | 495 | 1,353 | |
Long-term notes repaid | (1,443) | (818) | |
Other financing activities, net | (46) | (37) | |
Common stock repurchased | (275) | ||
Common dividends paid | (85) | (91) | |
Total net cash used in financing activities | (5,876) | (2,601) | |
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 362 | (96) | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 4,646 | 4,712 | |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | 5,008 | 5,008 | 4,616 |
Cash disbursements made (refunds received) for: | |||
Interest | 1,618 | 1,379 | |
Income taxes paid | 24 | 103 | |
Income taxes received | (2) | ||
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | |||
Cash and cash equivalents | 1,622 | 1,622 | 1,153 |
Restricted cash and restricted cash equivalents | 3,386 | 3,386 | 3,463 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period | $ 5,008 | 5,008 | 4,616 |
Asset-backed Securities, Securitized Loans and Receivables [Member] | |||
Financing activities | |||
Asset-backed commercial paper conduits, net | $ (3,449) | $ 367 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of Navient have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of Navient and its majority-owned and controlled subsidiaries and those Variable Interest Entities (“VIEs”) for which we are the primary beneficiary, after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”). Definitions for certain capitalized terms used but not otherwise defined in this Quarterly Report on Form 10-Q can be found in our 2017 Form 10-K. Reclassifications Certain reclassifications have been made to the balances as of and for the three and six months ended June 30, 2017 to be consistent with classifications adopted for 2018, and had no effect on net income, total assets, or total liabilities. Recently Issued Accounting Pronouncements Effective in 2018 Revenue Recognition As of January 1, 2018, we adopted Accounting Standard Codification (“ASC”) 606, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to its customers. The contract transaction price is allocated to each distinct contractual performance obligation and recognized as revenue at a point in time or over time when or as the good or service is provided to the customer and the performance obligation is satisfied. Generally, our performance obligations are satisfied over time. In conjunction with our implementation plan, we identified revenue streams related to asset recovery and other business processing within our Federal Education Loans and Business Processing segments that are within the scope of the new standard and reviewed related contracts. We determined there was no material change in the timing of our recognition of our asset recovery and business processing revenue or expenses and we did not record a cumulative adjustment as of January 1, 2018 as a result of the adoption of ASC 606. In connection with adopting ASC 606, we recognized $9 million of revenue and $6 million of expenses in the six months ended June 30, 2018 related to a contract in our Business Processing segment that would have not been recognized under the prior accounting standard until later in 2018. 1. The new guidance does not apply to financial instruments and transfers and servicing that are accounted for under other U.S. GAAP. Accordingly, the new revenue recognition guidance does not have an impact on our recognition of revenue and costs associated with our loan portfolios, investments, derivatives and servicing contracts. However, we considered the ASC 606 principal versus agent guidance with respect to certain asset recovery guarantor servicing contracts pursuant to which we serve in a portfolio management role and use third-party collection agencies. We determined that we are required under the new accounting standard to reflect payments to third-party collection agencies as revenue and operating expense. Under the prior accounting standards, we netted payments to third-party collection agencies against revenue. We adopted the new accounting standard using the “cumulative effect transition adjustment” which results in prospectively making this change in 2018. This change in accounting policy resulted in both asset recovery revenue and operating expense in the Federal Education Loan segment being $18 million higher for the six months ended June 30, 2018, with no impact on net income. See “Note 11 – Revenue from Contracts with Customers” for the new required disclosures. Classification and Measurement On January 5, 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which reconsiders the classification and measurement of financial instruments. The new standard requires certain equity instruments be measured at fair value, with fair value changes recognized in earnings. In addition, the standard requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. It was effective for the Company as of January 1, 2018. The adoption of this new accounting standard is immaterial to our consolidated financial statements and footnote disclosures. Intra-Entity Transfer of Assets On October 24, 2016, the FASB issued ASU No. 2016-16, “Income Taxes — Intra-Entity Transfer of Assets Other and Inventory,” which requires recognition of the income tax consequences of an intra-entity transfer of non-inventory assets when the transfer occurs. The new standard was effective for the Company as of January 1, 2018. The adoption of this new accounting standard is immaterial to our consolidated financial statements and footnote disclosures. Income Taxes On February 14, 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows reclassification from Accumulated Other Comprehensive Income (Loss) (“AOCI”), as required by ASC No. 740, “Income Taxes,” to retained earnings for the residual tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) enacted on December 22, 2017. The new standard is effective for the Company as of January 1, 2019. However, early adoption is permitted and the Company adopted the standard on January 1, 2018, resulting in a decrease of $13 million to retained earnings due to the reclassification of AOCI to retained earnings. 1. Effective in 2019 Leases On February 25, 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must be recognized as assets and liabilities on the balance sheet of the lessee. A right-of-use asset and lease obligation will be recorded for all leases with a term exceeding twelve months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption must be calculated using the applicable incremental borrowing rate at the date of adoption. The standard allows the option to apply the new guidance prospectively at the effective date, without adjustment to comparative periods presented with certain practical expedients available. It will be effective for the Company as of January 1, 2019. Early adoption is permitted. We continue to assess the impact that adopting this new accounting standard will have on our consolidated financial statements and footnote disclosures, but expect it to be immaterial. Hedging Activities On August 28, 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging,” which is intended to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and are intended to better align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The new standard will be effective for the Company as of January 1, 2019. We are currently assessing the impact this new standard will have on our consolidated financial statements and footnote disclosures, but expect it to be immaterial. Effective in 2020 Allowance for Loan Losses On June 16, 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses,” which requires measurement and recognition of an allowance for loan loss that estimates remaining expected credit losses for financial assets held at the reporting date. Our current allowance for loan loss is an incurred loss model. As a result, we expect the new guidance will result in an increase to our allowance for loan losses. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for the Company as of January 1, 2020, and will primarily impact the allowance for loan losses related to our Private Education Loans and FFELP Loans. Early adoption is permitted on January 1, 2019. This standard represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for the allowance for loan losses. We are currently evaluating the impact of adopting this accounting standard on our consolidated financial statements and footnote disclosures. |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | 2. Our provisions for loan losses represent the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses, net of expected recoveries, in the held-for-investment loan portfolios. The evaluation of the provisions for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We segregate our Private Education Loan portfolio into two classes of loans in monitoring and assessing credit risk — Troubled Debt Restructurings (“TDRs”) and Non-TDRs. We believe that the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. 2. Allowance for Loan Losses Metrics Three Months Ended June 30, 2018 (Dollars in millions) FFELP Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 59 $ 1,298 $ 10 $ 1,367 Total provision 40 72 — 112 Charge-offs (1) (17 ) (75 ) — (92 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .11 % 1.34 % 2.63 % Allowance coverage of charge-offs 1.2 4.3 5.1 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.54 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.54 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,238 $ 22,289 $ 73 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Three Months Ended June 30, 2017 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 64 $ 1,311 $ 16 $ 1,391 Total provision 10 95 — 105 Charge-offs (1) (13 ) (122 ) (1 ) (136 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 61 $ 1,286 $ 15 $ 1,362 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,153 $ 10 $ 1,163 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 61 133 5 199 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 61 $ 1,286 $ 15 $ 1,362 Loans Ending Balance: Individually evaluated for impairment - TDR $ — 11,020 31 $ 11,051 Collectively evaluated for impairment Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 81,984 12,467 174 94,625 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,463 2,755 — 6,218 Purchased Credit Impaired Loans (3) — 261 — 261 Ending total loans (4) $ 85,447 $ 26,503 $ 205 $ 112,155 Charge-offs as a percentage of average loans in repayment .08 % 2.25 % 2.37 % Allowance coverage of charge-offs 1.1 2.6 3.3 Allowance as a percentage of the ending total loan balance .07 % 4.85 % 7.49 % Allowance as a percentage of the ending loans in repayment .09 % 5.45 % 7.49 % Ending total loans (4) $ 85,447 $ 26,503 $ 205 Average loans in repayment $ 68,915 $ 21,621 $ 197 Ending loans in repayment $ 70,095 $ 23,613 $ 205 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2017. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $47 million and $419 million, respectively, as of June 30, 2017 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2017. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Six Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 60 $ 1,297 $ 10 $ 1,367 Total provision 50 149 — 199 Charge-offs (1) (28 ) (153 ) — (181 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .09 % 1.37 % 1.13 % Allowance coverage of charge-offs 1.5 4.2 11.9 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.21 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.21 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,940 $ 22,474 $ 72 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Six Months Ended June 30, 2017 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 67 $ 1,351 $ 15 $ 1,433 Total provision 20 190 2 212 Charge-offs (1) (26 ) (259 ) (2 ) (287 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 61 $ 1,286 $ 15 $ 1,362 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,153 $ 10 $ 1,163 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 61 133 5 199 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 61 $ 1,286 $ 15 $ 1,362 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 11,020 $ 31 $ 11,051 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 81,984 12,467 174 94,625 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,463 2,755 — 6,218 Purchased Credit Impaired Loans (3) — 261 — 261 Ending total loans (4) $ 85,447 $ 26,503 $ 205 $ 112,155 Charge-offs as a percentage of average loans in repayment .08 % 2.40 % 2.22 % Allowance coverage of charge-offs 1.2 2.5 3.7 Allowance as a percentage of the ending total loan balance .07 % 4.85 % 7.49 % Allowance as a percentage of the ending loans in repayment .09 % 5.45 % 7.49 % Ending total loans (4) $ 85,447 $ 26,503 $ 205 Average loans in repayment $ 69,108 $ 21,706 $ 185 Ending loans in repayment $ 70,095 $ 23,613 $ 205 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2017. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $47 million and $419 million, respectively, as of June 30, 2017 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2017. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Key Credit Quality Indicators FFELP Loans are substantially insured and guaranteed as to their principal and accrued interest in the event of default. The key credit quality indicator for this portfolio is loan status. The impact of changes in loan status is incorporated quarterly into the allowance for loan losses calculation. FFELP Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 4,372 $ 4,711 Loans in forbearance (2) 8,728 8,533 Loans in repayment and percentage of each status: Loans current 54,780 87.0 % 59,264 87.3 % Loans delinquent 31-60 days (3) 2,344 3.7 2,638 3.9 Loans delinquent 61-90 days (3) 1,110 1.8 1,763 2.6 Loans delinquent greater than 90 days (3) 4,718 7.5 4,188 6.2 Total FFELP Loans in repayment 62,952 100 % 67,853 100 % Total FFELP Loans, gross 76,052 81,097 FFELP Loan unamortized premium 639 666 Total FFELP Loans 76,691 81,763 FFELP Loan allowance for losses (82 ) (60 ) FFELP Loans, net $ 76,609 $ 81,703 Percentage of FFELP Loans in repayment 82.8 % 83.7 % Delinquencies as a percentage of FFELP Loans in repayment 13.0 % 12.7 % FFELP Loans in forbearance as a percentage of loans in repayment and forbearance 12.2 % 11.2 % (1) Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships. (2) Loans for customers who have used their allowable deferment time or do not qualify for deferment, that need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. 2. For Private Education Loans, the key credit quality indicators are FICO scores, school type, the existence of a cosigner, the loan status and loan seasoning. The FICO scores and school type are assessed at origination. The other Private Education Loan key quality indicators can change and are incorporated quarterly into the allowance for loan losses calculation. The following table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private Education Loan portfolio stratified by the key credit quality indicators. Private Education Loan Credit Quality Indicators TDR June 30, 2018 December 31, 2017 (Dollars in millions) Balance (2) % of Balance Balance (2) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 9,436 92 % $ 9,647 92 % FICO below 640 860 8 889 8 Total $ 10,296 100 % $ 10,536 100 % School Type: Not-for-profit $ 8,096 79 % $ 8,247 78 % For-profit 2,200 21 2,289 22 Total $ 10,296 100 % $ 10,536 100 % Cosigners: With cosigner $ 6,340 62 % $ 6,441 61 % Without cosigner 3,956 38 4,095 39 Total $ 10,296 100 % $ 10,536 100 % Seasoning (1) 1-12 payments $ 412 4 % $ 506 5 % 13-24 payments 542 5 644 6 25-36 payments 792 8 947 9 37-48 payments 1,108 11 1,271 12 More than 48 payments 6,993 68 6,691 63 Not yet in repayment 449 4 477 5 Total $ 10,296 100 % $ 10,536 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Balance equals the gross Private Education Loans. 2. Private Education Loan Credit Quality Indicators Non-TDR June 30, 2018 December 31, 2017 (Dollars in millions) Balance (2) % of Balance Balance (2) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 13,144 96 % $ 13,752 96 % FICO below 640 548 4 592 4 Total $ 13,692 100 % $ 14,344 100 % School Type: Not-for-profit $ 11,817 86 % $ 12,431 87 % For-profit 1,875 14 1,913 13 Total $ 13,692 100 % $ 14,344 100 % Cosigners: With cosigner $ 8,020 59 % $ 9,193 64 % Without cosigner 5,672 41 5,151 36 Total $ 13,692 100 % $ 14,344 100 % Seasoning (1) 1-12 payments $ 2,004 15 % $ 1,424 10 % 13-24 payments 637 5 437 3 25-36 payments 355 2 466 3 37-48 payments 537 4 867 6 More than 48 payments 9,679 71 10,566 74 Not yet in repayment 480 3 584 4 Total $ 13,692 100 % $ 14,344 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Balance equals the gross Private Education Loans. 2. TDR Private Education Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 449 $ 477 Loans in forbearance (2) 690 681 Loans in repayment and percentage of each status: Loans current 8,041 87.8 % 8,333 88.9 % Loans delinquent 31-60 days (3) 370 4.1 351 3.7 Loans delinquent 61-90 days (3) 215 2.3 207 2.2 Loans delinquent greater than 90 days (3) 531 5.8 487 5.2 Total TDR loans in repayment 9,157 100 % 9,378 100 % Total TDR loans, gross 10,296 10,536 TDR loans unamortized discount (220 ) (225 ) Total TDR loans 10,076 10,311 TDR loans receivable for partially charged-off loans 383 385 TDR loans allowance for losses (1,142 ) (1,171 ) TDR loans, net $ 9,317 $ 9,525 Percentage of TDR loans in repayment 88.9 % 89.0 % Delinquencies as a percentage of TDR loans in repayment 12.2 % 11.1 % Loans in forbearance as a percentage of TDR loans in repayment and forbearance 7.0 % 6.8 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. 2. Non-TDR Private Education Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 480 $ 584 Loans in forbearance (2) 195 214 Loans in repayment and percentage of each status: Loans current 12,826 98.5 % 13,257 97.9 % Loans delinquent 31-60 days (3) 83 .6 120 .9 Loans delinquent 61-90 days (3) 37 .3 59 .4 Loans delinquent greater than 90 days (3) 71 .6 110 .8 Total non-TDR loans in repayment 13,017 100 % 13,546 100 % Total non-TDR loans, gross 13,692 14,344 Non-TDR loans unamortized discount (627 ) (699 ) Total non-TDR loans 13,065 13,645 Non-TDR loans receivable for partially charged-off loans 341 375 Non-TDR loans allowance for losses (155 ) (126 ) Non-TDR loans, net $ 13,251 $ 13,894 Percentage of non-TDR loans in repayment 95.1 % 94.4 % Delinquencies as a percentage of non-TDR loans in repayment 1.5 % 2.1 % Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance 1.5 % 1.6 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. 2. Receivable for Partially Charged-Off Private Education Loans At the end of each month, for loans that are 212 or more days past due, we charge off the estimated loss of a defaulted loan balance. We refer to the remaining loan balance as the “receivable for partially charged-off loans.” Actual recoveries are applied against this receivable balance. If actual periodic recoveries are less than expected, the difference is immediately charged off through the allowance for Private Education Loan losses. The following table summarizes the activity in the receivable for partially charged-off Private Education Loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Receivable at beginning of period $ 741 $ 800 $ 760 $ 815 Expected future recoveries of current period defaults (1) 19 29 38 63 Recoveries (2) (36 ) (40 ) (74 ) (84 ) Charge-offs (3) — (5 ) — (10 ) Receivable at end of period $ 724 $ 784 $ 724 $ 784 (1) Represents our estimate of the amount to be collected in the future. (2) Current period cash collections. (3) Represents the current period recovery shortfall — the difference between what was expected to be collected and what was actually collected. These amounts are included in total charge-offs as reported in the “Allowance for Private Education Loan Losses” table. Troubled Debt Restructurings (“TDRs”) We sometimes modify the terms of loans for customers experiencing financial difficulty. Where we have granted either a forbearance of greater than three months, an interest rate reduction or an extended repayment plan, these are classified as TDRs. Approximately 63 percent and 61 percent of the loans granted forbearance have qualified as a TDR loan at June 30, 2018 and December 31, 2017, respectively. 2. At June 30, 2018 and December 31, 2017, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. (Dollars in millions) June 30, 2018 December 31, 2017 Recorded investment (1) $ 10,655 $ 10,890 Total ending loans (2) $ 10,679 $ 10,921 Related allowance $ 1,142 $ 1,171 (1) Recorded investment is equal to the unpaid principal balance (which includes the receivable for partially charged-off loans), accrued interest and unamortized discount. (2) Total ending loans includes the receivable for partially charged-off loans. The following tables provide the average recorded investment and interest income recognized for our TDR loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Average recorded investment $ 10,733 $ 11,012 $ 10,794 $ 11,052 Interest income recognized $ 187 $ 176 $ 367 $ 348 The following table provides the amount of loans modified in the periods presented that resulted in a TDR. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Modified loans (1) $ 137 $ 203 $ 307 $ 418 Charge-offs (2) $ 60 $ 94 $ 120 $ 200 Payment default $ 33 $ 47 $ 70 $ 101 (1) Represents period ending balance of loans that have been modified during the period and resulted in a TDR. (2) Represents loans that charged off that were classified as TDRs. 2. Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. (Dollars in millions) Total Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2018 TDR $ 198 $ 27 $ 22 Non-TDR 167 4 1 Total $ 365 $ 31 $ 23 December 31, 2017 TDR $ 196 $ 20 $ 20 Non-TDR 187 4 6 Total $ 383 $ 24 $ 26 |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | 3. The following table summarizes our borrowings. June 30, 2018 December 31, 2017 (Dollars in millions) Short Term Long Term Total Short Term Long Term Total Unsecured borrowings: Senior unsecured debt (1) $ 2,235 $ 10,771 $ 13,006 $ 1,306 $ 12,624 $ 13,930 Total unsecured borrowings 2,235 10,771 13,006 1,306 12,624 13,930 Secured borrowings: FFELP Loan securitizations — 69,786 69,786 — 71,208 71,208 Private Education Loan securitizations (2) 960 12,507 13,467 686 12,646 13,332 FFELP Loan — other facilities 593 4,533 5,126 1,536 6,830 8,366 Private Education Loan — other facilities 698 1,485 2,183 684 1,710 2,394 Other (3) 276 — 276 538 — 538 Total secured borrowings 2,527 88,311 90,838 3,444 92,394 95,838 Total before hedge accounting adjustments 4,762 99,082 103,844 4,750 105,018 109,768 Hedge accounting adjustments (10 ) (392 ) (402 ) 21 (6 ) 15 Total $ 4,752 $ 98,690 $ 103,442 $ 4,771 $ 105,012 $ 109,783 (1) Includes principal amount of $2.2 billion and $1.3 billion of short-term debt as of June 30, 2018 and December 31, 2017, respectively. Includes principal amount of $10.9 billion and $12.7 billion of long-term debt as of June 30, 2018 and December 31, 2017, respectively. (2) Includes $960 million and $686 million of short-term debt related to the Private Education Loan asset-backed securitization repurchase facilities (“Repurchase Facilities”) as of June 30, 2018 and December 31, 2017, respectively. Includes $1.8 billion and $1.3 billion of long-term debt related to the Repurchase Facilities as of June 30, 2018, and December 31, 2017, respectively. (3) “Other” primarily includes the obligation to return cash collateral held related to derivative exposures. 3. Variable Interest Entities We consolidated the following financing VIEs as of June 30, 2018 and December 31, 2017, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2018 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations $ — $ 69,786 $ 69,786 $ 70,574 $ 2,472 $ 1,452 $ 74,498 Private Education Loan securitizations (1) 960 12,507 13,467 16,868 656 218 17,742 FFELP Loan — other facilities 593 1,907 2,500 2,533 102 74 2,709 Private Education Loan — other facilities 698 1,485 2,183 2,959 96 28 3,083 Total before hedge accounting adjustments 2,251 85,685 87,936 92,934 3,326 1,772 98,032 Hedge accounting adjustments — (375 ) (375 ) — — (527 ) (527 ) Total $ 2,251 $ 85,310 $ 87,561 $ 92,934 $ 3,326 $ 1,245 $ 97,505 December 31, 2017 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations $ — $ 71,208 $ 71,208 $ 72,145 $ 2,335 $ 1,078 $ 75,558 Private Education Loan securitizations (1) 686 12,646 13,332 17,739 484 237 18,460 FFELP Loan — other facilities 1,536 3,999 5,535 5,565 204 156 5,925 Private Education Loan — other facilities 684 1,710 2,394 3,147 68 31 3,246 Total before hedge accounting adjustments 2,906 89,563 92,469 98,596 3,091 1,502 103,189 Hedge accounting adjustments — (246 ) (246 ) — — (342 ) (342 ) Total $ 2,906 $ 89,317 $ 92,223 $ 98,596 $ 3,091 $ 1,160 $ 102,847 (1) Includes $960 million of short-term debt, $1.8 billion of long-term debt and $170 million of restricted cash related to the Repurchase Facilities as of June 30, 2018. Includes $686 million of short-term debt, $1.3 billion of long-term debt and $96 million of restricted cash related to the Repurchase Facilities as of December 31, 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 4. Our risk management strategy and use of and accounting for derivatives have not materially changed from that discussed in our 2017 Form 10-K. Please refer to “Note 7 — Derivative Financial Instruments” in our 2017 Form 10-K for a full discussion. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at June 30, 2018 and December 31, 2017, and their impact on other comprehensive income and earnings for the three and six months ended June 30, 2018 and 2017. 4. Impact of Derivatives on Consolidated Balance Sheet Cash Flow Fair Value Trading Total (Dollars in millions) Hedged Risk Exposure Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ 95 $ 168 $ 290 $ 8 $ 7 $ 176 $ 392 Cross-currency interest rate swaps Foreign currency and interest rate — — 24 88 — — 24 88 Total derivative assets (2) — 95 192 378 8 7 200 480 Derivative Liabilities: Interest rate swaps Interest rate — (16 ) (59 ) (102 ) (64 ) (71 ) (123 ) (189 ) Floor Income Contracts Interest rate — — — — (40 ) (74 ) (40 ) (74 ) Cross-currency interest rate swaps Foreign currency and interest rate — — (553 ) (410 ) (39 ) (44 ) (592 ) (454 ) Other (3) Interest rate — — — — (12 ) (18 ) (12 ) (18 ) Total derivative liabilities (2) — (16 ) (612 ) (512 ) (155 ) (207 ) (767 ) (735 ) Net total derivatives $ — $ 79 $ (420 ) $ (134 ) $ (147 ) $ (200 ) $ (567 ) $ (255 ) (1) Fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements, and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities (Dollar in millions) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Gross position $ 200 $ 480 $ (767 ) $ (735 ) Impact of master netting agreements (31 ) (42 ) 31 42 Derivative values with impact of master netting agreements (as carried on balance sheet) 169 438 (736 ) (693 ) Cash collateral (held) pledged (268 ) (536 ) 217 235 Net position $ (99 ) $ (98 ) $ (519 ) $ (458 ) (3) million of our common shares outstanding. This forward contract was entered into in May 2018 and settled on July 2, 2018. At settlement, Navient delivered $60 million cash in exchange for 4.3 million common shares. 4. The above fair values at June 30, 2018 reflect rule changes adopted by clearing organizations that require entities to treat derivative assets, liabilities and the related variation margin as a settlement of the derivative position for legal and accounting purposes, rather than recording these positions on a gross basis with a related collateral receivable or payable. As a result, the tables above reflect a reduction of $274 million of derivative assets and $203 million of derivative liabilities as of June 30, 2018, that previously were reported on a gross basis but are now settled and not subject to collateral. The above fair values also include adjustments when necessary for counterparty credit risk for both when we are exposed to the counterparty, net of collateral postings, and when the counterparty is exposed to us, net of collateral postings. The net adjustments decreased the asset position at June 30, 2018 and December 31, 2017 by $16 million and $6 million, respectively. In addition, the above fair values reflect adjustments for illiquid derivatives as indicated by a wide bid/ask spread in the interest rate indices to which the derivatives are indexed. These adjustments decreased the overall net asset positions at June 30, 2018 and December 31, 2017 by $24 million and $30 million, respectively. Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Notional Values: Interest rate swaps $ 25.7 $ 24.1 $ 11.7 $ 12.4 $ 76.3 $ 72.0 $ 113.7 $ 108.5 Floor Income Contracts — — — — 27.9 21.9 27.9 21.9 Cross-currency interest rate swaps — — 4.8 6.7 .3 .3 5.1 7.0 Other (1) — — — — .4 .5 .4 .5 Total derivatives $ 25.7 $ 24.1 $ 16.5 $ 19.1 $ 104.9 $ 94.7 $ 147.1 $ 137.9 (1) “Other” includes derivatives related to our Total Return Swap Facility, as well as a forward contract outstanding as of June 30, 2018 to purchase $60 million of our common shares outstanding. 4. Impact of Derivatives on Consolidated Statements of Income Total Gains (Losses) (1) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Fair Value Hedges: (2) Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ (71 ) $ 18 $ (258 ) $ (66 ) Gains (losses) recognized in net income on hedged items 66 (38 ) 290 23 Net fair value hedge ineffectiveness gains (losses) (5 ) (20 ) 32 (43 ) Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives (283 ) 459 (207 ) 577 Gains (losses) recognized in net income on hedged items 257 (442 ) 128 (604 ) Net fair value hedge ineffectiveness gains (losses) (26 ) 17 (79 ) (27 ) Total fair value hedges (31 ) (3 ) (47 ) (70 ) Cash Flow Hedges: (2) Interest rate swaps (3) — — — — Total cash flow hedges — — — — Trading Interest rate swaps (4 ) (3 ) 18 10 Floor income contracts 10 (5 ) 33 28 Cross currency interest rate swaps (14 ) (6 ) 2 5 Other (1 ) (8 ) 2 (14 ) Total trading derivatives (9 ) (22 ) 55 29 Gains (losses) on derivative and hedging activities, net $ (40 ) $ (25 ) $ 8 $ (41 ) (1) Recorded in “Gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. (2) The accrued interest income (expense) on fair value hedges and cash flow hedges is recorded in net interest income (expense) and is excluded from this table. (3) Represents ineffectiveness related to cash flow hedges. 4. Collateral Collateral held and pledged related to derivative exposures between us and our derivative counterparties are detailed in the following table: (Dollars in millions) June 30, 2018 December 31, 2017 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 268 $ 536 Securities at fair value — corporate derivatives (not recorded in financial statements) (1) — — Securities at fair value — on-balance sheet securitization derivatives (not recorded in financial statements) (2) 109 297 Total collateral held $ 377 $ 833 Derivative asset at fair value including accrued interest $ 204 $ 618 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 217 $ 235 Total collateral pledged $ 217 $ 235 Derivative liability at fair value including accrued interest and premium receivable $ 684 $ 659 (1) (2) The trusts do not have the ability to sell or re-pledge securities they hold as collateral. Our corporate derivatives contain credit contingent features. At our current unsecured credit rating, we have fully collateralized our corporate derivative liability position (including accrued interest and net of premiums receivable) of $112 million with our counterparties. Downgrades in our unsecured credit rating would not result in any additional collateral requirements, except to increase the frequency of collateral calls. Trust related derivatives do not contain credit contingent features related to our or the trusts’ credit ratings. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | 5. The following table provides the detail of our other assets. (Dollars in millions) June 30, 2018 December 31, 2017 Accrued interest receivable, net $ 1,945 $ 1,965 Benefit and insurance-related investments 485 481 Income tax asset, net current and deferred 293 380 Derivatives at fair value 169 438 Fixed assets, net 144 156 Accounts receivable 104 108 Other loans, net 69 59 Other 395 438 Total $ 3,604 $ 4,025 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations, Goodwill and Acquired Intangible Assets | 6. Business Combinations, Goodwill and Acquired Intangible Assets Acquisitions are accounted for under the acquisition method of accounting as defined in ASC 805, “Business Combinations.” The Company allocates the purchase price to the fair value of the acquired tangible assets, liabilities and identifiable intangible assets as of the acquisition date as determined by an independent appraiser. Goodwill resulting from our acquisitions is assigned to a reporting unit or units. A reporting unit is the same or one level below an operating segment. As discussed in “Note 12 – Segment Reporting," we have the following new reportable operating segments effective first-quarter 2018: Federal Education Loans, Consumer Lending, Business Processing and Other. As a result of this change in our reporting structure, our reporting units with goodwill as of June 30, 2018 include (1) FFELP Loans within the Federal Education Loans reportable operating segment, (2) Private Education Loans (Other) and Private Education Refinance Loans (inclusive of what formerly constituted our Earnest reporting unit), both of which are included in our Consumer Lending reportable operating segment, and (3) Government Services (formerly our Gila reporting unit) and Healthcare Services, both of which are included in our Business Processing reportable operating segment. There was no change in our allocation of goodwill as a result of this change in reportable operating segments and reporting units. Acquisition of Earnest In November 2017, Navient acquired a 95 percent majority controlling interest in Earnest for approximately $149 million in cash. Earnest is a leading financial technology and education finance company that originates Private Education Refinance Loans. We have engaged an independent appraiser to assist in the valuation of the assets acquired and liabilities assumed including identifiable intangible assets, primarily the trade name and developed technology. We anticipate the purchase price allocation will be completed in the third quarter 2018. The preliminary estimate of goodwill is $89 million. The results of operations of Earnest have been included in Navient’s consolidated financial statements since the acquisition date and are reflected in Navient’s Consumer Lending segment and its Private Education Refinance Loans reporting unit. Navient has not disclosed the pro forma impact of this acquisition to the results of operations for the three and six months ended June 30, 2018 and 2017, as the pro forma impact was deemed immaterial. Acquisition of Duncan Solutions In July 2017, Navient acquired a 100 percent controlling interest in Duncan Solutions for approximately $86 million in cash. Duncan Solutions is a leading transportation revenue management company serving municipalities and toll authorities, offering a range of technology-enabled products and services to support its clients’ parking and tolling operations. We engaged an independent appraiser to assist in the valuation of the assets acquired and liabilities assumed including identifiable intangible assets, primarily customer relationships, the trade name and developed technology. In July 2018, the Company finalized its purchase price allocation for Duncan Solutions, which resulted in an excess purchase price over the fair value of net assets acquired, or goodwill, of $39 million. The results of operations of Duncan Solutions have been included in Navient’s consolidated financial statements since the acquisition date and are reflected in Navient’s Business Processing segment and its Government Services reporting unit. Navient has not disclosed the pro forma impact of this acquisition to the results of operations for the three and six months ended June 30, 2018 and 2017, as the pro forma impact was deemed immaterial. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 7. The following table summarizes common share repurchases and issuances. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Common stock repurchased (1) — 10,936,715 — 18,300,007 Average purchase price per share $ — $ 15.10 $ — $ 15.04 Shares repurchased related to employee stock-based compensation plans (2) 92,369 255,875 3,557,504 1,610,155 Average purchase price per share $ 14.53 $ 15.70 $ 13.77 $ 15.58 Common shares issued (3) 113,171 355,802 5,134,238 3,150,312 (1) Common shares purchased under our share repurchase program. (2) Comprises shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on June 29, 2018 was $13.03. Dividend and Share Repurchase Program In June 2018, we paid a common stock dividend of $0.16 per share. As of June 30, 2018, the remaining common share repurchase authority was $160 million. We entered into a derivative contract in May 2018 to purchase $60 million of common shares. We settled this contract in July 2018 by delivering $60 million in cash in exchange for 4.3 million common shares, resulting in a remaining common share repurchase authority of $100 million. In the six months ended June 30, 2017, we repurchased 18.3 million shares of common stock for $275 million. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 8. Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2018 2017 2018 2017 Numerator: Net income attributable to Navient Corporation $ 83 $ 112 $ 210 $ 200 Denominator: Weighted average shares used to compute basic EPS 265 280 264 284 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, derivative contracts and Employee Stock Purchase Plan (“ESPP”) (1) 4 5 5 7 Dilutive potential common shares (2) 4 5 5 7 Weighted average shares used to compute diluted EPS 269 285 269 291 Basic earnings per common share attributable to Navient Corporation $ .31 $ .40 $ .79 $ .70 Diluted earnings per common share attributable to Navient Corporation $ .31 $ .39 $ .78 $ .69 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method, and derivative contracts determined by the reverse treasury stock method. (2) For the three months ended June 30, 2018 and 2017, securities covering approximately 10 million and 5 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2018 and 2017, securities covering approximately 10 million and 5 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9 . We use estimates of fair value in applying various accounting standards in our financial statements. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Please refer to “Note 12 — Fair Value Measurements” in our 2017 Form 10-K for a full discussion. During the three and six months ended June 30, 2018, there were no significant transfers of financial instruments between levels, or changes in our methodology or assumptions used to value our financial instruments. 9. The following table summarizes the valuation of our financial instruments that are marked-to-market on a recurring basis. Fair Value Measurements on a Recurring Basis June 30, 2018 December 31, 2017 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments: Agency residential mortgage- backed securities $ — $ — $ — $ — $ — $ — $ — $ — Other — 2 — 2 — 2 — 2 Total available-for-sale investments — 2 — 2 — 2 — 2 Derivative instruments: (1) Interest rate swaps — 169 7 176 — 388 4 392 Cross-currency interest rate swaps — — 24 24 — — 88 88 Total derivative assets (2) — 169 31 200 — 388 92 480 Total $ — $ 171 $ 31 $ 202 $ — $ 390 $ 92 $ 482 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ (83 ) $ (40 ) $ (123 ) $ — $ (144 ) $ (45 ) $ (189 ) Floor Income Contracts — (40 ) — (40 ) — (74 ) — (74 ) Cross-currency interest rate swaps — (39 ) (553 ) (592 ) — (44 ) (410 ) (454 ) Other — (4 ) (8 ) (12 ) — — (18 ) (18 ) Total derivative liabilities (2) — (166 ) (601 ) (767 ) — (262 ) (473 ) (735 ) Total $ — $ (166 ) $ (601 ) $ (767 ) $ — $ (262 ) $ (473 ) $ (735 ) (1) Fair value of derivative instruments excludes accrued interest and the value of collateral. (2) See “Note 4—Derivative Financial Instruments” for a reconciliation of gross positions without the impact of master netting agreements to the balance sheet classification. (3) Borrowings which are the hedged items in a fair value hedge relationship and which are adjusted for changes in value due to benchmark interest rates only are not carried at full fair value and are not reflected in this table. 9. The following tables summarize the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. Three Months Ended June 30, 2018 2017 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (37 ) $ (246 ) $ (12 ) $ (295 ) $ (42 ) $ (1,125 ) $ (16 ) $ (1,183 ) Total gains/(losses): Included in earnings (1) 3 (314 ) 3 (308 ) (7 ) 430 (8 ) 415 Included in other comprehensive income — — — — — — — — Settlements 1 31 1 33 1 29 2 32 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (33 ) $ (529 ) $ (8 ) $ (570 ) $ (48 ) $ (666 ) $ (22 ) $ (736 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 4 $ (283 ) $ 4 $ (275 ) $ (6 ) $ 459 $ (6 ) $ 447 Six Months Ended June 30, 2018 2017 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (41 ) $ (322 ) $ (18 ) $ (381 ) $ (46 ) $ (1,243 ) $ (13 ) $ (1,302 ) Total gains/(losses): Included in earnings (1) 6 (265 ) 6 (253 ) (5 ) 519 (13 ) 501 Included in other comprehensive income — — — — — — — — Settlements 2 58 4 64 3 58 4 65 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (33 ) $ (529 ) $ (8 ) $ (570 ) $ (48 ) $ (666 ) $ (22 ) $ (736 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 7 $ (180 ) $ 10 $ (163 ) $ (2 ) $ 516 $ (9 ) $ 505 (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Gains (losses) on derivative and hedging activities, net $ (277 ) $ 444 $ (195 ) $ 559 Interest expense (31 ) (29 ) (58 ) (58 ) Total $ (308 ) $ 415 $ (253 ) $ 501 (2) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. 9. The following table presents the significant inputs that are unobservable or from inactive markets used in the recurring valuations of the level 3 financial instruments detailed above. (Dollars in millions) Fair Value at June 30, 2018 Valuation Technique Input Range (Weighted Average) Derivatives Prime/LIBOR basis swaps $ (33 ) Discounted cash flow Constant Prepayment Rate 6% Bid/ask adjustment to .08% — .08% discount rate (.08%) Cross-currency interest rate swaps (529 ) Discounted cash flow Constant Prepayment Rate 4% Other (8 ) Total $ (570 ) The significant inputs that are unobservable or from inactive markets related to our level 3 derivatives detailed in the table above would be expected to have the following impacts to the valuations: • Prime/LIBOR basis swaps — These swaps do not actively trade in the markets as indicated by a wide bid/ask spread. A wider bid/ask spread will result in a decrease in the overall valuation. In addition, the unobservable inputs include Constant Prepayment Rates of the underlying securitization trust the swap references. A decrease in this input will result in a longer weighted average life of the swap which will increase the value for swaps in a gain position and decrease the value for swaps in a loss position, everything else equal. The opposite is true for an increase in the input. • Cross-currency interest rate swaps — The unobservable inputs used in these valuations are Constant Prepayment Rates of the underlying securitization trust the swap references. A decrease in this input will result in a longer weighted average life of the swap. All else equal in a typical currency market, this will result in a decrease to the valuation due to the delay in the cash flows of the currency exchanges as well as diminished liquidity in the forward exchange markets as you increase the term. The opposite is true for an increase in the input. 9. The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2018 December 31, 2017 (Dollars in millions) Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets FFELP Loans $ 76,761 $ 76,609 $ 152 $ 82,271 $ 81,703 $ 568 Private Education Loans 23,648 22,568 1,080 24,421 23,419 1,002 Cash and investments (1) 5,370 5,370 — 5,034 5,034 — Total earning assets 105,779 104,547 1,232 111,726 110,156 1,570 Interest-bearing liabilities Short-term borrowings 4,782 4,752 (30 ) 4,783 4,771 (12 ) Long-term borrowings 98,883 98,690 (193 ) 104,921 105,012 91 Total interest-bearing liabilities 103,665 103,442 (223 ) 109,704 109,783 79 Derivative financial instruments Floor Income Contracts (40 ) (40 ) — (74 ) (74 ) — Interest rate swaps 53 53 — 203 203 — Cross-currency interest rate swaps (568 ) (568 ) — (366 ) (366 ) — Other (12 ) (12 ) — (18 ) (18 ) — Excess of net asset fair value over carrying value $ 1,009 $ 1,649 (1) “Cash and investments” includes available-for-sale investments that consist of investments that are primarily agency securities whose cost basis is $2 million and $2 million at June 30, 2018 and December 31, 2017, respectively, versus a fair value of $2 million and $2 million at June 30, 2018 and December 31, 2017, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Legal Proceedings The Company has been named as defendant in a number of putative class action cases alleging violations of various state and federal consumer protection laws, including the Telephone Consumer Protection Act (“TCPA”), the Consumer Financial Protection Act of 2010 (“CFPA”), the Fair Credit Reporting Act (“FCRA”), the Fair Debt Collection Practices Act (“FDCPA”) and various other state consumer protection laws. 10. In January 2017, the CFPB and Attorneys General for the State of Illinois and the State of Washington initiated civil actions naming Navient Corporation and several of its subsidiaries as defendants alleging violations of certain Federal and State consumer protection statutes, including the CFPA, the FCPA, FCRA, FDCPA and various state consumer protection laws. In October 2017, the Attorney General for the Commonwealth of Pennsylvania initiated a civil action against Navient Corporation and Navient Solutions, LLC, containing similar alleged violations of the CFPA and the Pennsylvania Unfair Trade Practices and Consumer Protection Law. Additionally, the Attorneys General for the States of California and Mississippi recently initiated similar actions against the Company and certain subsidiaries alleging violations of various state and federal consumer protection laws. We refer to the Illinois, Pennsylvania, Washington, California and Mississippi Attorneys General collectively as the “State Attorneys General.” In addition to these matters, a number of lawsuits have been filed by nongovernmental parties or, in the future, may be filed by additional governmental or nongovernmental parties seeking damages or other remedies related to similar issues raised by the CFPB and the State Attorneys General. As the Company has previously stated, we believe the suits improperly seek to impose penalties on Navient based on new, unannounced servicing standards applied retroactively only against one servicer, and that the allegations are false. We therefore have denied these allegations and intend to vigorously defend against the allegations in each of these cases. For additional information on these civil actions, please refer to section entitled “Regulatory Matters” below. At this point in time, the Company is unable to anticipate the timing of a resolution or the ultimate impact that these legal proceedings may have on the Company’s consolidated financial position, liquidity, results of operation or cash flows. As a result, it is not possible at this time to estimate a range of potential exposure, if any, for amounts that may be payable in connection with these matters and reserves have not been established. It is possible that an adverse ruling or rulings may have a material adverse impact on the Company. Regulatory Matters In addition, Navient and its subsidiaries are subject to examination or regulation by the SEC, CFPB, FFIEC, ED and various state agencies as part of its ordinary course of business. Items or matters similar to or different from those described above may arise during the course of those examinations. We also routinely receive inquiries or requests from various regulatory bodies or government agencies concerning our business or our assets. Generally, the Company endeavors to cooperate with each such inquiry or request. As previously disclosed, the Company and various of its subsidiaries have been subject to the following investigations and inquiries: • In December 2013, Navient received Civil Investigative Demands (“CIDs”) issued by the Illinois Attorney General, the Washington Attorney General and multiple other state Attorneys General. According to the CIDs, the investigations were initiated to ascertain whether any practices declared to be unlawful under the Consumer Fraud and Deceptive Business Practices Act have occurred or are about to occur. The Company subsequently received separate but similar CIDs or subpoenas from the Attorneys General of the District of Columbia, Kansas and Colorado. • In April 2014, Solutions received a CID from the Consumer Financial Protection Bureau (the “CFPB”) as part of the CFPB’s separate investigation regarding allegations relating to Navient’s disclosures and assessment of late fees and other matters. Navient has received a series of supplemental CIDs on these matters. In August 2015, Solutions received a letter from the CFPB notifying Solutions that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise (“NORA”) process, the CFPB’s Office of Enforcement was considering recommending that the CFPB take legal action against Solutions. The NORA letter related to a previously disclosed investigation into Solutions’ disclosures and assessment of late fees and other matters and states that, in connection with any action, the CFPB may seek restitution, civil monetary penalties and corrective action against Solutions. The Company responded to the NORA letter in September 2015. • In November 2014, Navient’s subsidiary, Pioneer Credit Recovery, Inc. (“Pioneer”), received a CID from the CFPB as part of an investigation regarding Pioneer’s activities relating to rehabilitation loans and collection of defaulted student debt. 10. • In December 2014, Solutions received a subpoena from the New York Department of Financial Services (the “NY DFS”) as part of the NY DFS’s inquiry with regard to whether persons or entities have engaged in fraud or misconduct with respect to a financial product or service under New York Financial Services Law or other laws. The CFPB, Washington Attorney General and Illinois Attorney General lawsuits relate to matters which were covered under the CIDs or the NORA letter discussed above. In addition, various State Attorneys General have filed suits alleging violations of various state and federal consumer protection laws covering matters similar to those covered by the CIDs or the NORA letter. For more information about these cases, see the section above entitled “Legal Proceedings.” As stated above, we have denied these allegations and intend to vigorously defend against the allegations in each of these cases. With respect to alleged civil violations of the Servicemembers Civil Relief Act (the “SCRA”), Navient Solutions, LLC (“Solutions”), a wholly owned subsidiary of Navient, and Sallie Mae Bank entered into a consent order with the U.S. Department of Justice (“DOJ”) in May 2014. The DOJ consent order (the “DOJ Order”) covers all loans either owned by Sallie Mae Bank or serviced by Solutions from November 28, 2005 until the effective date of the settlement. The Company believes it has fulfilled the terms of the DOJ order, including the monetary portions of the order. The total reserves established by the Company in 2013 and 2014 to cover these costs were $177 million, and as of June 30, 2018, substantially all of this amount had been paid. The final cost of these proceedings will remain uncertain until the remaining consent order is lifted or terminates in accordance with its terms in late 2018. Under the terms of the Separation Agreement between the Company and SLM BankCo, Navient has agreed to indemnify SLM BankCo for all claims, actions, damages, losses or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM BankCo occurring prior to the Spin-Off other than those specifically excluded in the Separation and Distribution Agreement. As a result, subject to the terms, conditions and limitations set forth in the Separation and Distribution Agreement, Navient has agreed to indemnify and hold harmless Sallie Mae and its subsidiaries, including Sallie Mae Bank, from liabilities arising out of the regulatory matters and CFPB and State Attorneys General lawsuits mentioned above, other than fines or penalties directly levied against Sallie Mae Bank and other matters specifically excluded. Navient has no additional reserves related to indemnification matters with SLM BankCo as of June 30, 2018. OIG Audit The Office of the Inspector General (the “OIG”) of ED commenced an audit regarding Special Allowance Payments (“SAP”) on September 10, 2007. In September 2013, we received the final audit determination of Federal Student Aid (the “Final Audit Determination”) on the final audit report issued by the OIG in August 2009 related to this audit. The Final Audit Determination concurred with the final audit report issued by the OIG and instructed us to make adjustment to our government billing to reflect the policy determination. In August 2016, we filed our notice of appeal to the Administrative Actions and Appeals Service Group of ED. A hearing was held in April 2017 and a ruling has not yet been issued. We continue to believe that our SAP billing practices were proper, considering then-existing ED guidance and lack of applicable regulations. The Company established a reserve for this matter in 2014 as part of the total reserve for pending regulatory matters discussed previously and does not believe, at this time, that an adverse ruling would have a material effect on the Company as a whole. 10. Commitments and Contingencies (Continued) Contingencies As of June 30, 2018, we concluded that a contingency loss was no longer probable of occurring. Accordingly, the related $40 million contingency reserve was released as a reduction of operating expenses. In the ordinary course of business, we and our subsidiaries are defendants in or parties to pending and threatened legal actions and proceedings including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment and other laws. In certain of these actions and proceedings, claims for substantial monetary damage are asserted against us and our subsidiaries. We and our subsidiaries are also subject to potential unasserted claims by third parties. In the ordinary course of business, we and our subsidiaries are subject to regulatory examinations, information gathering requests, inquiries and investigations. In connection with formal and informal inquiries in these cases, we and our subsidiaries receive requests, subpoenas and orders for documents, testimony and information in connection with various aspects of our regulated activities. We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. In view of the inherent difficulty of predicting the outcome of such litigation and regulatory matters, we cannot predict what the eventual outcome of the pending matters will be, what the timing or the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties, if any, related to each pending matter may be. Based on current knowledge, reserves have been established for certain litigation, regulatory matters, and unasserted contract claims where the loss is both probable and estimable. Based on current knowledge, management does not believe that loss contingencies, if any, arising from pending investigations, litigation or regulatory matters will have a material adverse effect on our consolidated financial position, liquidity, results of operations or cash flows, except as otherwise disclosed. |
Revenue from Contract with Cust
Revenue from Contract with Customer | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customer | 11. Revenue from Contracts with Customers We account for contract revenue in accordance with ASC 606. Contract revenue earned by our Federal Education Loans segment is derived from asset recovery activities related to the collection of delinquent education loans on behalf of the Department of Education, Guarantor agencies and other institutions. Revenue earned by our Business Processing segment is derived from government services, which includes receivables management services and account processing solutions, and healthcare services, which includes revenue cycle management services. Most of our revenue is derived from long-term contracts, the duration of which is expected to span more than one year. These contracts are billable monthly, as services are rendered, based on a percentage of the balance collected or the transaction processed, a flat fee per transaction or a stated rate per the service performed. In accordance with ASC 606, the unit of account is a contractual performance obligation, a promise to provide a distinct good or service to a customer. The transaction price is allocated to each distinct performance obligation when or as the good or service is transferred to the customer and the obligation is satisfied. Distinct performance obligations are identified based on the services specified in the contract that are capable of being distinct such that the customer can benefit from the service on its own or together with other resources that are available from the Company or a third party, and are also distinct in the context of the contract such that the transfer of the services is separately identifiable from other services promised in the contract. Most of our contracts include integrated service offerings that include obligations that are not separately identifiable and distinct in the context of our contracts. Accordingly, our contracts generally have a single performance obligation. A limited number of full service offerings include multiple performance obligations. 11. Revenue from Contracts with Customers (Continued) Substantially all our revenue from contracts with customers is variable revenue which is recognized over time as our customers receive and consume the benefit of our services in an amount consistent with monthly billings. Accordingly, we do not disclose variable consideration associated with the remaining performance obligation as we have recognized revenue in the amount we have the right to invoice for services performed. Our fees correspond to the value the customer has realized from our performance of each increment of the service (for example, an individual transaction processed or collection of a past due balance). The following tables illustrate the disaggregation of revenue from contracts with customers according to service type and client type by reportable operating segment. Revenue by Service Type Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 19 $ — $ 19 $ 39 $ — $ 39 Government services — 41 41 — 94 94 Healthcare services — 24 24 — 44 44 Total $ 19 $ 65 $ 84 $ 39 $ 138 $ 177 Revenue by Client Type Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 1 $ 2 $ 3 $ 2 $ 3 $ 5 Guarantor agencies 15 — 15 31 — 31 Other institutions 3 — 3 6 — 6 State and local government — 23 23 — 49 49 Tolling authorities — 16 16 — 42 42 Hospitals and other healthcare providers — 24 24 — 44 44 Total $ 19 $ 65 $ 84 $ 39 $ 138 $ 177 As of January 1, 2018 and June 30, 2018, there was $63 million and $70 million, respectively, of net accounts receivable related to these contracts. Navient had no material contract assets or contract liabilities. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. In the fourth quarter of 2017, Navient entered the Private Education Refinance Loan origination market. This new activity changed the way the Company manages the business, reviews operating performance and allocates resources. This resulted in the following four new reportable operating segments, effective first-quarter 2018: (1) Federal Education Loans (2) Consumer Lending (3) Business Processing and (4) Other. In connection with this change in reportable operating segments, there was also a change in how unallocated overhead is defined. 12. Segment Reporting (Continued) The following table shows the realignment of our business lines (operating segments) from the prior reportable operating segments to the new reportable operating segments: Business Lines New Reportable Operating Segment Prior Reportable Operating Segment FFELP Loans Federal Education Loans FFELP Loans Federal Education Loans Servicing Federal Education Loans Business Services Federal Education Loans Asset Recovery Federal Education Loans Business Services Private Education Refinance Loans Consumer Lending Private Education Loans Private Education Loans – Other Consumer Lending Private Education Loans Other Consumer Loans Consumer Lending Other Non-Education Government Services Business Processing Business Services Non-Education Healthcare Services Business Processing Business Services Unallocated Overhead Expenses Other Other Corporate Liquidity Portfolio Other Other These segments meet the quantitative thresholds for reportable operating segments. Accordingly, the results of operations of these reportable operating segments are presented separately. The underlying operating segments are used by the Company’s chief operating decision maker to manage the business, review operating performance and allocate resources, and qualify to be aggregated as part of the primary reportable operating segments. As discussed further below, we measure the profitability of our operating segments based on Core Earnings net income. Accordingly, information regarding our reportable operating segments is provided on a Core Earnings basis. As a result of this change in segment reporting in the first quarter of 2018, prior periods have been recast for comparison purposes. Federal Education Loans Segment In its Federal Education Loans segment, Navient holds and acquires FFELP Loans and performs servicing and asset recovery services on its own loan portfolio, federal education loans owned by the Department of Education and other institutions. In this segment, we generate revenue primarily through net interest income on the FFELP Loan portfolio (after provision for loan losses) as well as servicing and asset recovery services revenue. This segment is expected to generate significant amounts of earnings and cash flow over the remaining life of the portfolio. The following table includes GAAP basis asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2018 December 31, 2017 FFELP Loans, net $ 76,609 $ 81,703 Cash and investments (1) 2,732 2,821 Other 2,209 2,601 Total assets $ 81,550 $ 87,125 (1) Includes restricted cash and investments. 12. Consumer Lending Segment In its Consumer Lending segment, Navient holds, originates and acquires consumer loans and performs servicing activities on its own loan portfolio. Originations and acquisitions leverage our servicing scale and generate incremental earnings and cash flow. In this segment, we generate revenue primarily through net interest income on the Private Education Loan portfolio (after provision for loan losses). This segment is expected to generate significant amounts of earnings and cash flow over the remaining life of the portfolio. The following table includes GAAP basis asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2018 December 31, 2017 Private Education Loans, net $ 22,568 $ 23,419 Cash and investments (1) 803 706 Other 1,149 1,143 Total assets $ 24,520 $ 25,268 (1) Includes restricted cash and investments. Business Processing Segment In its Business Processing segment, Navient performs business processing services for over 600 non-education related government and healthcare clients. Government services include receivables management services and account processing solutions. With over $11 billion of inventory, our integrated solutions technology and superior data driven approach allows state governments, agencies, court systems, municipalities and toll authorities to reduce their operating expenses while maximizing revenue opportunities. Healthcare services include revenue cycle outsourcing, accounts receivable management, extended business office support and consulting engagements. We offer customizable solutions for our clients that include non-profit/religious-affiliated hospital systems, teaching hospitals, urban medical centers, for-profit healthcare systems, critical access hospitals, children’s hospitals and large physician groups. At June 30, 2018 and December 31, 2017, the Business Processing segment had total assets of $474 million and $466 million, respectively, on a GAAP basis. Other Segment Our Other segment primarily consists of the following activities: our corporate liquidity portfolio and the repurchase of debt, unallocated overhead (corporate overhead and certain information technology costs), restructuring/other reorganization expenses, regulatory-related costs, and the deferred tax asset remeasurement loss recognized due to the enactment of the TCJA in the fourth quarter of 2017. Unallocated corporate overhead is comprised of costs primarily related to certain executive management, the board of directors, accounting, finance, legal, human resources, compliance and risk management, and stock-based compensation expense. Unallocated information technology costs are related to infrastructure and operations. At June 30, 2018 and December 31, 2017, the Other segment had total assets of $2.4 billion and $2.1 billion, respectively, on a GAAP basis. 12. Measure of Profitability We prepare financial statements and present financial results in accordance with GAAP. However, we also evaluate our business segments and present financial results on a basis that differs from GAAP. We refer to this different basis of presentation as Core Earnings. We provide this Core Earnings basis of presentation on a consolidated basis for each business segment because this is what we review internally when making management decisions regarding our performance and how we allocate resources. We also refer to this information in our presentations with credit rating agencies, lenders and investors. Because our Core Earnings basis of presentation corresponds to our segment financial presentations, we are required by GAAP to provide Core Earnings disclosure in the notes to our consolidated financial statements for our business segments. Core Earnings are not a substitute for reported results under GAAP. We use Core Earnings to manage our business segments because Core Earnings reflect adjustments to GAAP financial results for two items, discussed below, that are mostly due to timing factors generally beyond the control of management. Accordingly, we believe that Core Earnings provide management with a useful basis from which to better evaluate results from ongoing operations against the business plan or against results from prior periods. Consequently, we disclose this information because we believe it provides investors with additional information regarding the operational and performance indicators that are most closely assessed by management. When compared to GAAP results, the two items we remove from our Core Earnings presentations are: 1. Mark-to-market gains/losses resulting from our use of derivative instruments to hedge our economic risks that do not qualify for hedge accounting treatment or do qualify for hedge accounting treatment but result in ineffectiveness; and 2. The accounting for goodwill and acquired intangible assets. While GAAP provides a uniform, comprehensive basis of accounting, for the reasons described above, our Core Earnings basis of presentation does not. Core Earnings are subject to certain general and specific limitations that investors should carefully consider. For example, there is no comprehensive, authoritative guidance for management reporting. Our Core Earnings are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies. Accordingly, our Core Earnings presentation does not represent a comprehensive basis of accounting. Investors, therefore, may not be able to compare our performance with that of other financial services companies based upon Core Earnings. Core Earnings results are only meant to supplement GAAP results by providing additional information regarding the operational and performance indicators that are most closely used by management, our board of directors, credit rating agencies, lenders and investors to assess performance. 12. Segment Results and Reconciliations to GAAP Three Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 775 $ 442 $ — $ — $ 1,217 $ 3 $ (18 ) $ (15 ) $ 1,202 Other loans 1 — — — 1 — — — 1 Cash and investments 12 3 — 9 24 — — — 24 Total interest income 788 445 — 9 1,242 3 (18 ) (15 ) 1,227 Total interest expense 622 252 — 49 923 10 (4 ) 6 929 Net interest income (loss) 166 193 — (40 ) 319 (7 ) (14 ) (21 ) 298 Less: provisions for loan losses 40 72 — — 112 — — — 112 Net interest income (loss) after provisions for loan losses 126 121 — (40 ) 207 (7 ) (14 ) (21 ) 186 Other income (loss): Servicing revenue 68 3 — — 71 — — — 71 Asset recovery and business processing revenue 34 — 65 — 99 — — — 99 Other income (loss) — — — 3 3 7 (37 ) (30 ) (27 ) Losses on debt repurchases — — — (7 ) (7 ) — — — (7 ) Total other income (loss) 102 3 65 (4 ) 166 7 (37 ) (30 ) 136 Expenses: Direct operating expenses 36 39 54 — 129 — — — 129 Overhead expenses — — — 72 72 — — — 72 Operating expenses 36 39 54 72 201 — — — 201 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 36 39 54 74 203 — 6 6 209 Income (loss) before income tax expense (benefit) 192 85 11 (118 ) 170 — (57 ) (57 ) 113 Income tax expense (benefit) (2) 44 19 3 (27 ) 39 — (9 ) (9 ) 30 Net income (loss) $ 148 $ 66 $ 8 $ (91 ) $ 131 $ — $ (48 ) $ (48 ) $ 83 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2018 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (21 ) $ — $ (21 ) Total other income (loss) (30 ) — (30 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (51 ) $ (6 ) (57 ) Income tax expense (benefit) (9 ) Net income (loss) $ (48 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 12. Three Months Ended June 30, 2017 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 664 $ 386 $ — $ — $ 1,050 $ 18 $ (14 ) $ 4 $ 1,054 Other loans 6 — — — 6 — — — 6 Cash and investments 7 1 — 2 10 — — — 10 Total interest income 677 387 — 2 1,066 18 (14 ) 4 1,070 Total interest expense 498 192 — 33 723 (1 ) (3 ) (4 ) 719 Net interest income (loss) 179 195 — (31 ) 343 19 (11 ) 8 351 Less: provisions for loan losses 10 95 — — 105 — — — 105 Net interest income (loss) after provisions for loan losses 169 100 — (31 ) 238 19 (11 ) 8 246 Other income (loss): Servicing revenue 70 — — — 70 — — — 70 Asset recovery and business processing revenue 58 — 53 — 111 — — — 111 Other income (loss) — — — 4 4 (19 ) (4 ) (23 ) (19 ) Total other income (loss) 128 — 53 4 185 (19 ) (4 ) (23 ) 162 Expenses: Direct operating expenses 79 37 44 — 160 — — — 160 Overhead expenses — — — 70 70 — — — 70 Operating expenses 79 37 44 70 230 — — — 230 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Total expenses 79 37 44 70 230 — 6 6 236 Income (loss) before income tax expense (benefit) 218 63 9 (97 ) 193 — (21 ) (21 ) 172 Income tax expense (benefit) (2) 80 23 3 (36 ) 70 — (10 ) (10 ) 60 Net income (loss) $ 138 $ 40 $ 6 $ (61 ) $ 123 $ — $ (11 ) $ (11 ) $ 112 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2017 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ 8 $ — $ 8 Total other income (loss) (23 ) — (23 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (15 ) $ (6 ) (21 ) Income tax expense (benefit) (10 ) Net income (loss) $ (11 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 12. Six Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,507 $ 873 $ — $ — $ 2,380 $ 11 $ (35 ) $ (24 ) $ 2,356 Other loans 2 — — — 2 — — — 2 Cash and investments 19 6 — 16 41 — — — 41 Total interest income 1,528 879 — 16 2,423 11 (35 ) (24 ) 2,399 Total interest expense 1,193 490 — 91 1,774 4 (5 ) (1 ) 1,773 Net interest income (loss) 335 389 — (75 ) 649 7 (30 ) (23 ) 626 Less: provisions for loan losses 50 149 — — 199 — — — 199 Net interest income (loss) after provisions for loan losses 285 240 — (75 ) 450 7 (30 ) (23 ) 427 Other income (loss): Servicing revenue 134 6 — — 140 — — — 140 Asset recovery and business processing revenue 70 — 137 — 207 — — — 207 Other income (loss) 1 — — 5 6 (7 ) 10 3 9 Losses on debt repurchases — — — (8 ) (8 ) — — — (8 ) Total other income (loss) 205 6 137 (3 ) 345 (7 ) 10 3 348 Expenses: Direct operating expenses 115 95 113 — 323 — — — 323 Overhead expenses — — — 153 153 — — — 153 Operating expenses 115 95 113 153 476 — — — 476 Goodwill and acquired intangible asset impairment and amortization — — — — — — 16 16 16 Restructuring/other reorganization expenses — — — 9 9 — — — 9 Total expenses 115 95 113 162 485 — 16 16 501 Income (loss) before income tax expense (benefit) 375 151 24 (240 ) 310 — (36 ) (36 ) 274 Income tax expense (benefit) (2) 86 35 6 (55 ) 72 — (8 ) (8 ) 64 Net income (loss) $ 289 $ 116 $ 18 $ (185 ) $ 238 $ — $ (28 ) $ (28 ) $ 210 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2018 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (23 ) $ — $ (23 ) Total other income (loss) 3 — 3 Goodwill and acquired intangible asset impairment and amortization — 16 16 Total Core Earnings adjustments to GAAP $ (20 ) $ (16 ) (36 ) Income tax expense (benefit) (8 ) Net income (loss) $ (28 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 12. Six Months Ended June 30, 2017 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,288 $ 759 $ — $ — $ 2,047 $ 38 $ (27 ) $ 11 $ 2,058 Other loans 10 — — — 10 — — — 10 Cash and investments 12 2 — 3 17 — — — 17 Total interest income 1,310 761 — 3 2,074 38 (27 ) 11 2,085 Total interest expense 956 379 — 62 1,397 2 (5 ) (3 ) 1,394 Net interest income (loss) 354 382 — (59 ) 677 36 (22 ) 14 691 Less: provisions for loan losses 22 190 — — 212 — — — 212 Net interest income (loss) after provisions for loan losses 332 192 — (59 ) 465 36 (22 ) 14 479 Other income (loss): Servicing revenue 143 3 — — 146 — — — 146 Asset recovery and business processing revenue 113 — 97 — 210 — — — 210 Other income (loss) 1 — — 9 10 (36 ) (16 ) (52 ) (42 ) Total other income (loss) 257 3 97 9 366 (36 ) (16 ) (52 ) 314 Expenses: Direct operating expenses 168 72 82 — 322 — — — 322 Overhead expenses — — — 147 147 — — — 147 Operating expenses 168 72 82 147 469 — — — 469 Goodwill and acquired intangible asset impairment and amortization — — — — — — 11 11 11 Total expenses 168 72 82 147 469 — 11 11 480 Income (loss) before income tax expense (benefit) 421 123 15 (197 ) 362 — (49 ) (49 ) 313 Income tax expense (benefit) (2) 153 45 6 (72 ) 132 — (19 ) (19 ) 113 Net income (loss) $ 268 $ 78 $ 9 $ (125 ) $ 230 $ — $ (30 ) $ (30 ) $ 200 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2017 (Dollars in millions) Net Impact of Derivative Accounting Net Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ 14 $ — $ 14 Total other income (loss) (52 ) — (52 ) Goodwill and acquired intangible asset impairment and amortization — 11 11 Total Core Earnings adjustments to GAAP $ (38 ) $ (11 ) (49 ) Income tax expense (benefit) (19 ) Net income (loss) $ (30 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. 12. Summary of Core Earnings Adjustments to GAAP Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) $ (51 ) $ (15 ) $ (20 ) $ (38 ) Net impact of goodwill and acquired intangible assets (2) (6 ) (6 ) (16 ) (11 ) Net tax effect (3) 9 10 8 19 Total Core Earnings adjustments to GAAP $ (48 ) $ (11 ) $ (28 ) $ (30 ) (1) Derivative accounting: (2) Goodwill and acquired intangible assets: (3) Net tax effect: |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of Navient have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of Navient and its majority-owned and controlled subsidiaries and those Variable Interest Entities (“VIEs”) for which we are the primary beneficiary, after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Form 10-K”). Definitions for certain capitalized terms used but not otherwise defined in this Quarterly Report on Form 10-Q can be found in our 2017 Form 10-K. |
Reclassifications | Reclassifications Certain reclassifications have been made to the balances as of and for the three and six months ended June 30, 2017 to be consistent with classifications adopted for 2018, and had no effect on net income, total assets, or total liabilities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Effective in 2018 Revenue Recognition As of January 1, 2018, we adopted Accounting Standard Codification (“ASC”) 606, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to its customers. The contract transaction price is allocated to each distinct contractual performance obligation and recognized as revenue at a point in time or over time when or as the good or service is provided to the customer and the performance obligation is satisfied. Generally, our performance obligations are satisfied over time. In conjunction with our implementation plan, we identified revenue streams related to asset recovery and other business processing within our Federal Education Loans and Business Processing segments that are within the scope of the new standard and reviewed related contracts. We determined there was no material change in the timing of our recognition of our asset recovery and business processing revenue or expenses and we did not record a cumulative adjustment as of January 1, 2018 as a result of the adoption of ASC 606. In connection with adopting ASC 606, we recognized $9 million of revenue and $6 million of expenses in the six months ended June 30, 2018 related to a contract in our Business Processing segment that would have not been recognized under the prior accounting standard until later in 2018. 1. The new guidance does not apply to financial instruments and transfers and servicing that are accounted for under other U.S. GAAP. Accordingly, the new revenue recognition guidance does not have an impact on our recognition of revenue and costs associated with our loan portfolios, investments, derivatives and servicing contracts. However, we considered the ASC 606 principal versus agent guidance with respect to certain asset recovery guarantor servicing contracts pursuant to which we serve in a portfolio management role and use third-party collection agencies. We determined that we are required under the new accounting standard to reflect payments to third-party collection agencies as revenue and operating expense. Under the prior accounting standards, we netted payments to third-party collection agencies against revenue. We adopted the new accounting standard using the “cumulative effect transition adjustment” which results in prospectively making this change in 2018. This change in accounting policy resulted in both asset recovery revenue and operating expense in the Federal Education Loan segment being $18 million higher for the six months ended June 30, 2018, with no impact on net income. See “Note 11 – Revenue from Contracts with Customers” for the new required disclosures. Classification and Measurement On January 5, 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which reconsiders the classification and measurement of financial instruments. The new standard requires certain equity instruments be measured at fair value, with fair value changes recognized in earnings. In addition, the standard requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. It was effective for the Company as of January 1, 2018. The adoption of this new accounting standard is immaterial to our consolidated financial statements and footnote disclosures. Intra-Entity Transfer of Assets On October 24, 2016, the FASB issued ASU No. 2016-16, “Income Taxes — Intra-Entity Transfer of Assets Other and Inventory,” which requires recognition of the income tax consequences of an intra-entity transfer of non-inventory assets when the transfer occurs. The new standard was effective for the Company as of January 1, 2018. The adoption of this new accounting standard is immaterial to our consolidated financial statements and footnote disclosures. Income Taxes On February 14, 2018, the FASB issued ASU No. 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows reclassification from Accumulated Other Comprehensive Income (Loss) (“AOCI”), as required by ASC No. 740, “Income Taxes,” to retained earnings for the residual tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) enacted on December 22, 2017. The new standard is effective for the Company as of January 1, 2019. However, early adoption is permitted and the Company adopted the standard on January 1, 2018, resulting in a decrease of $13 million to retained earnings due to the reclassification of AOCI to retained earnings. 1. Effective in 2019 Leases On February 25, 2016, the FASB issued ASU No. 2016-02, “Leases,” which requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve-month term, these arrangements must be recognized as assets and liabilities on the balance sheet of the lessee. A right-of-use asset and lease obligation will be recorded for all leases with a term exceeding twelve months, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption must be calculated using the applicable incremental borrowing rate at the date of adoption. The standard allows the option to apply the new guidance prospectively at the effective date, without adjustment to comparative periods presented with certain practical expedients available. It will be effective for the Company as of January 1, 2019. Early adoption is permitted. We continue to assess the impact that adopting this new accounting standard will have on our consolidated financial statements and footnote disclosures, but expect it to be immaterial. Hedging Activities On August 28, 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging,” which is intended to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The amendments expand and refine hedge accounting for both nonfinancial and financial risk components and are intended to better align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The new standard will be effective for the Company as of January 1, 2019. We are currently assessing the impact this new standard will have on our consolidated financial statements and footnote disclosures, but expect it to be immaterial. Effective in 2020 Allowance for Loan Losses On June 16, 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses,” which requires measurement and recognition of an allowance for loan loss that estimates remaining expected credit losses for financial assets held at the reporting date. Our current allowance for loan loss is an incurred loss model. As a result, we expect the new guidance will result in an increase to our allowance for loan losses. The standard is to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The standard is effective for the Company as of January 1, 2020, and will primarily impact the allowance for loan losses related to our Private Education Loans and FFELP Loans. Early adoption is permitted on January 1, 2019. This standard represents a significant departure from existing GAAP, and may result in material changes to the Company’s accounting for the allowance for loan losses. We are currently evaluating the impact of adopting this accounting standard on our consolidated financial statements and footnote disclosures. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Metrics Three Months Ended June 30, 2018 (Dollars in millions) FFELP Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 59 $ 1,298 $ 10 $ 1,367 Total provision 40 72 — 112 Charge-offs (1) (17 ) (75 ) — (92 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment — TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .11 % 1.34 % 2.63 % Allowance coverage of charge-offs 1.2 4.3 5.1 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.54 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.54 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,238 $ 22,289 $ 73 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. Three Months Ended June 30, 2017 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 64 $ 1,311 $ 16 $ 1,391 Total provision 10 95 — 105 Charge-offs (1) (13 ) (122 ) (1 ) (136 ) Reclassification of interest reserve (2) — 2 — 2 Ending balance $ 61 $ 1,286 $ 15 $ 1,362 Allowance Ending Balance: Individually evaluated for impairment — TDR $ — $ 1,153 $ 10 $ 1,163 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 61 133 5 199 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 61 $ 1,286 $ 15 $ 1,362 Loans Ending Balance: Individually evaluated for impairment - TDR $ — 11,020 31 $ 11,051 Collectively evaluated for impairment Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 81,984 12,467 174 94,625 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,463 2,755 — 6,218 Purchased Credit Impaired Loans (3) — 261 — 261 Ending total loans (4) $ 85,447 $ 26,503 $ 205 $ 112,155 Charge-offs as a percentage of average loans in repayment .08 % 2.25 % 2.37 % Allowance coverage of charge-offs 1.1 2.6 3.3 Allowance as a percentage of the ending total loan balance .07 % 4.85 % 7.49 % Allowance as a percentage of the ending loans in repayment .09 % 5.45 % 7.49 % Ending total loans (4) $ 85,447 $ 26,503 $ 205 Average loans in repayment $ 68,915 $ 21,621 $ 197 Ending loans in repayment $ 70,095 $ 23,613 $ 205 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2017. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $47 million and $419 million, respectively, as of June 30, 2017 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2017. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Six Months Ended June 30, 2018 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 60 $ 1,297 $ 10 $ 1,367 Total provision 50 149 — 199 Charge-offs (1) (28 ) (153 ) — (181 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 82 $ 1,297 $ 10 $ 1,389 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,142 $ 9 $ 1,151 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 82 155 1 238 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 82 $ 1,297 $ 10 $ 1,389 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 10,679 $ 28 $ 10,707 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 73,018 11,411 51 84,480 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,034 2,386 — 5,420 Purchased Credit Impaired Loans (3) — 236 — 236 Ending total loans (4) $ 76,052 $ 24,712 $ 79 $ 100,843 Charge-offs as a percentage of average loans in repayment .09 % 1.37 % 1.13 % Allowance coverage of charge-offs 1.5 4.2 11.9 Allowance as a percentage of the ending total loan balance .11 % 5.25 % 12.21 % Allowance as a percentage of the ending loans in repayment .13 % 5.85 % 12.21 % Ending total loans (4) $ 76,052 $ 24,712 $ 79 Average loans in repayment $ 64,940 $ 22,474 $ 72 Ending loans in repayment $ 62,952 $ 22,174 $ 79 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2018. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $40 million and $362 million, respectively, as of June 30, 2018 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2018. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. 2. Six Months Ended June 30, 2017 (Dollars in millions) FFELP Loans Private Education Loans Other Loans Total Allowance for Loan Losses Beginning balance $ 67 $ 1,351 $ 15 $ 1,433 Total provision 20 190 2 212 Charge-offs (1) (26 ) (259 ) (2 ) (287 ) Reclassification of interest reserve (2) — 4 — 4 Ending balance $ 61 $ 1,286 $ 15 $ 1,362 Allowance Ending Balance: Individually evaluated for impairment - TDR $ — $ 1,153 $ 10 $ 1,163 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 61 133 5 199 Purchased Non-Credit Impaired Loans acquired at a discount (3) — — — — Purchased Credit Impaired Loans (3) — — — — Ending total allowance $ 61 $ 1,286 $ 15 $ 1,362 Loans Ending Balance: Individually evaluated for impairment - TDR $ — $ 11,020 $ 31 $ 11,051 Collectively evaluated for impairment: Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans 81,984 12,467 174 94,625 Purchased Non-Credit Impaired Loans acquired at a discount (3) 3,463 2,755 — 6,218 Purchased Credit Impaired Loans (3) — 261 — 261 Ending total loans (4) $ 85,447 $ 26,503 $ 205 $ 112,155 Charge-offs as a percentage of average loans in repayment .08 % 2.40 % 2.22 % Allowance coverage of charge-offs 1.2 2.5 3.7 Allowance as a percentage of the ending total loan balance .07 % 4.85 % 7.49 % Allowance as a percentage of the ending loans in repayment .09 % 5.45 % 7.49 % Ending total loans (4) $ 85,447 $ 26,503 $ 205 Average loans in repayment $ 69,108 $ 21,706 $ 185 Ending loans in repayment $ 70,095 $ 23,613 $ 205 (1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-off loans which represents the difference between what was expected to be recovered and any shortfalls in what was actually recovered in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion. (2) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance. (3) The Purchased Credit Impaired Loans’ losses are not provided for by the allowance for loan losses in the above table as these loans are separately reserved for, if needed. No allowance for loan losses has been established for these loans as of June 30, 2017. The losses of the Purchased Non-Credit Impaired Loans acquired at a discount are not provided for by the allowance for loan losses in the above table as the remaining purchased discount associated with the FFELP and Private Education Loans of $47 million and $419 million, respectively, as of June 30, 2017 is greater than the incurred losses and as a result no allowance for loan losses has been established for these loans as of June 30, 2017. (4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans. |
Age Analysis of Past Due Loans Delinquencies | FFELP Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 4,372 $ 4,711 Loans in forbearance (2) 8,728 8,533 Loans in repayment and percentage of each status: Loans current 54,780 87.0 % 59,264 87.3 % Loans delinquent 31-60 days (3) 2,344 3.7 2,638 3.9 Loans delinquent 61-90 days (3) 1,110 1.8 1,763 2.6 Loans delinquent greater than 90 days (3) 4,718 7.5 4,188 6.2 Total FFELP Loans in repayment 62,952 100 % 67,853 100 % Total FFELP Loans, gross 76,052 81,097 FFELP Loan unamortized premium 639 666 Total FFELP Loans 76,691 81,763 FFELP Loan allowance for losses (82 ) (60 ) FFELP Loans, net $ 76,609 $ 81,703 Percentage of FFELP Loans in repayment 82.8 % 83.7 % Delinquencies as a percentage of FFELP Loans in repayment 13.0 % 12.7 % FFELP Loans in forbearance as a percentage of loans in repayment and forbearance 12.2 % 11.2 % (1) Loans for customers who may still be attending school or engaging in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation, as well as loans for customers who have requested and qualify for other permitted program deferments such as military, unemployment, or economic hardships. (2) Loans for customers who have used their allowable deferment time or do not qualify for deferment, that need additional time to obtain employment or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. TDR Private Education Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 449 $ 477 Loans in forbearance (2) 690 681 Loans in repayment and percentage of each status: Loans current 8,041 87.8 % 8,333 88.9 % Loans delinquent 31-60 days (3) 370 4.1 351 3.7 Loans delinquent 61-90 days (3) 215 2.3 207 2.2 Loans delinquent greater than 90 days (3) 531 5.8 487 5.2 Total TDR loans in repayment 9,157 100 % 9,378 100 % Total TDR loans, gross 10,296 10,536 TDR loans unamortized discount (220 ) (225 ) Total TDR loans 10,076 10,311 TDR loans receivable for partially charged-off loans 383 385 TDR loans allowance for losses (1,142 ) (1,171 ) TDR loans, net $ 9,317 $ 9,525 Percentage of TDR loans in repayment 88.9 % 89.0 % Delinquencies as a percentage of TDR loans in repayment 12.2 % 11.1 % Loans in forbearance as a percentage of TDR loans in repayment and forbearance 7.0 % 6.8 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Non-TDR Private Education Loan Delinquencies June 30, 2018 December 31, 2017 (Dollars in millions) Balance % Balance % Loans in-school/grace/deferment (1) $ 480 $ 584 Loans in forbearance (2) 195 214 Loans in repayment and percentage of each status: Loans current 12,826 98.5 % 13,257 97.9 % Loans delinquent 31-60 days (3) 83 .6 120 .9 Loans delinquent 61-90 days (3) 37 .3 59 .4 Loans delinquent greater than 90 days (3) 71 .6 110 .8 Total non-TDR loans in repayment 13,017 100 % 13,546 100 % Total non-TDR loans, gross 13,692 14,344 Non-TDR loans unamortized discount (627 ) (699 ) Total non-TDR loans 13,065 13,645 Non-TDR loans receivable for partially charged-off loans 341 375 Non-TDR loans allowance for losses (155 ) (126 ) Non-TDR loans, net $ 13,251 $ 13,894 Percentage of non-TDR loans in repayment 95.1 % 94.4 % Delinquencies as a percentage of non-TDR loans in repayment 1.5 % 2.1 % Loans in forbearance as a percentage of non- TDR loans in repayment and forbearance 1.5 % 1.6 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans, e.g., residency periods for medical students or a grace period for bar exam preparation. (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors such as disaster relief, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Loans Modified Accounts for TDR | The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. (Dollars in millions) June 30, 2018 December 31, 2017 Recorded investment (1) $ 10,655 $ 10,890 Total ending loans (2) $ 10,679 $ 10,921 Related allowance $ 1,142 $ 1,171 (1) Recorded investment is equal to the unpaid principal balance (which includes the receivable for partially charged-off loans), accrued interest and unamortized discount. (2) Total ending loans includes the receivable for partially charged-off loans. |
Entity Loan Modification Program [Member] | |
Loans Modified Accounts for TDR | The following table provides the amount of loans modified in the periods presented that resulted in a TDR. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Modified loans (1) $ 137 $ 203 $ 307 $ 418 Charge-offs (2) $ 60 $ 94 $ 120 $ 200 Payment default $ 33 $ 47 $ 70 $ 101 (1) Represents period ending balance of loans that have been modified during the period and resulted in a TDR. (2) Represents loans that charged off that were classified as TDRs. |
Troubled Debt Restructuring Loans [Member] | |
Average Recorded Investment and Interest Income Recognized for TDR | The following tables provide the average recorded investment and interest income recognized for our TDR loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Average recorded investment $ 10,733 $ 11,012 $ 10,794 $ 11,052 Interest income recognized $ 187 $ 176 $ 367 $ 348 |
Private Education Loans [Member] | |
Private Education Loan Portfolio Stratified by Key Credit Quality Indicators | The following table highlights the principal balance (excluding the receivable for partially charged-off loans) of our Private Education Loan portfolio stratified by the key credit quality indicators. Private Education Loan Credit Quality Indicators TDR June 30, 2018 December 31, 2017 (Dollars in millions) Balance (2) % of Balance Balance (2) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 9,436 92 % $ 9,647 92 % FICO below 640 860 8 889 8 Total $ 10,296 100 % $ 10,536 100 % School Type: Not-for-profit $ 8,096 79 % $ 8,247 78 % For-profit 2,200 21 2,289 22 Total $ 10,296 100 % $ 10,536 100 % Cosigners: With cosigner $ 6,340 62 % $ 6,441 61 % Without cosigner 3,956 38 4,095 39 Total $ 10,296 100 % $ 10,536 100 % Seasoning (1) 1-12 payments $ 412 4 % $ 506 5 % 13-24 payments 542 5 644 6 25-36 payments 792 8 947 9 37-48 payments 1,108 11 1,271 12 More than 48 payments 6,993 68 6,691 63 Not yet in repayment 449 4 477 5 Total $ 10,296 100 % $ 10,536 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Balance equals the gross Private Education Loans. Private Education Loan Credit Quality Indicators Non-TDR June 30, 2018 December 31, 2017 (Dollars in millions) Balance (2) % of Balance Balance (2) % of Balance Credit Quality Indicators Original Winning FICO Scores: FICO 640 and above $ 13,144 96 % $ 13,752 96 % FICO below 640 548 4 592 4 Total $ 13,692 100 % $ 14,344 100 % School Type: Not-for-profit $ 11,817 86 % $ 12,431 87 % For-profit 1,875 14 1,913 13 Total $ 13,692 100 % $ 14,344 100 % Cosigners: With cosigner $ 8,020 59 % $ 9,193 64 % Without cosigner 5,672 41 5,151 36 Total $ 13,692 100 % $ 14,344 100 % Seasoning (1) 1-12 payments $ 2,004 15 % $ 1,424 10 % 13-24 payments 637 5 437 3 25-36 payments 355 2 466 3 37-48 payments 537 4 867 6 More than 48 payments 9,679 71 10,566 74 Not yet in repayment 480 3 584 4 Total $ 13,692 100 % $ 14,344 100 % (1) Number of months in active repayment for which a scheduled payment was received. (2) Balance equals the gross Private Education Loans. |
Receivable for Partially Charged-Off Private Education Loans | The following table summarizes the activity in the receivable for partially charged-off Private Education Loans. Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Receivable at beginning of period $ 741 $ 800 $ 760 $ 815 Expected future recoveries of current period defaults (1) 19 29 38 63 Recoveries (2) (36 ) (40 ) (74 ) (84 ) Charge-offs (3) — (5 ) — (10 ) Receivable at end of period $ 724 $ 784 $ 724 $ 784 (1) Represents our estimate of the amount to be collected in the future. (2) Current period cash collections. (3) Represents the current period recovery shortfall — the difference between what was expected to be collected and what was actually collected. These amounts are included in total charge-offs as reported in the “Allowance for Private Education Loan Losses” table. |
Accrued Interest Receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. (Dollars in millions) Total Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2018 TDR $ 198 $ 27 $ 22 Non-TDR 167 4 1 Total $ 365 $ 31 $ 23 December 31, 2017 TDR $ 196 $ 20 $ 20 Non-TDR 187 4 6 Total $ 383 $ 24 $ 26 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The following table summarizes our borrowings. June 30, 2018 December 31, 2017 (Dollars in millions) Short Term Long Term Total Short Term Long Term Total Unsecured borrowings: Senior unsecured debt (1) $ 2,235 $ 10,771 $ 13,006 $ 1,306 $ 12,624 $ 13,930 Total unsecured borrowings 2,235 10,771 13,006 1,306 12,624 13,930 Secured borrowings: FFELP Loan securitizations — 69,786 69,786 — 71,208 71,208 Private Education Loan securitizations (2) 960 12,507 13,467 686 12,646 13,332 FFELP Loan — other facilities 593 4,533 5,126 1,536 6,830 8,366 Private Education Loan — other facilities 698 1,485 2,183 684 1,710 2,394 Other (3) 276 — 276 538 — 538 Total secured borrowings 2,527 88,311 90,838 3,444 92,394 95,838 Total before hedge accounting adjustments 4,762 99,082 103,844 4,750 105,018 109,768 Hedge accounting adjustments (10 ) (392 ) (402 ) 21 (6 ) 15 Total $ 4,752 $ 98,690 $ 103,442 $ 4,771 $ 105,012 $ 109,783 (1) Includes principal amount of $2.2 billion and $1.3 billion of short-term debt as of June 30, 2018 and December 31, 2017, respectively. Includes principal amount of $10.9 billion and $12.7 billion of long-term debt as of June 30, 2018 and December 31, 2017, respectively. (2) Includes $960 million and $686 million of short-term debt related to the Private Education Loan asset-backed securitization repurchase facilities (“Repurchase Facilities”) as of June 30, 2018 and December 31, 2017, respectively. Includes $1.8 billion and $1.3 billion of long-term debt related to the Repurchase Facilities as of June 30, 2018, and December 31, 2017, respectively. (3) “Other” primarily includes the obligation to return cash collateral held related to derivative exposures. |
Financing VIEs | We consolidated the following financing VIEs as of June 30, 2018 and December 31, 2017, as we are the primary beneficiary. As a result, these VIEs are accounted for as secured borrowings. June 30, 2018 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations $ — $ 69,786 $ 69,786 $ 70,574 $ 2,472 $ 1,452 $ 74,498 Private Education Loan securitizations (1) 960 12,507 13,467 16,868 656 218 17,742 FFELP Loan — other facilities 593 1,907 2,500 2,533 102 74 2,709 Private Education Loan — other facilities 698 1,485 2,183 2,959 96 28 3,083 Total before hedge accounting adjustments 2,251 85,685 87,936 92,934 3,326 1,772 98,032 Hedge accounting adjustments — (375 ) (375 ) — — (527 ) (527 ) Total $ 2,251 $ 85,310 $ 87,561 $ 92,934 $ 3,326 $ 1,245 $ 97,505 December 31, 2017 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding (Dollars in millions) Short Term Long Term Total Loans Cash Other Assets Total Secured Borrowings — VIEs: FFELP Loan securitizations $ — $ 71,208 $ 71,208 $ 72,145 $ 2,335 $ 1,078 $ 75,558 Private Education Loan securitizations (1) 686 12,646 13,332 17,739 484 237 18,460 FFELP Loan — other facilities 1,536 3,999 5,535 5,565 204 156 5,925 Private Education Loan — other facilities 684 1,710 2,394 3,147 68 31 3,246 Total before hedge accounting adjustments 2,906 89,563 92,469 98,596 3,091 1,502 103,189 Hedge accounting adjustments — (246 ) (246 ) — — (342 ) (342 ) Total $ 2,906 $ 89,317 $ 92,223 $ 98,596 $ 3,091 $ 1,160 $ 102,847 (1) Includes $960 million of short-term debt, $1.8 billion of long-term debt and $170 million of restricted cash related to the Repurchase Facilities as of June 30, 2018. Includes $686 million of short-term debt, $1.3 billion of long-term debt and $96 million of restricted cash related to the Repurchase Facilities as of December 31, 2017. |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Impact of Derivatives on Consolidated Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at June 30, 2018 and December 31, 2017, and their impact on other comprehensive income and earnings for the three and six months ended June 30, 2018 and 2017. Impact of Derivatives on Consolidated Balance Sheet Cash Flow Fair Value Trading Total (Dollars in millions) Hedged Risk Exposure Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Fair Values (1) Derivative Assets: Interest rate swaps Interest rate $ — $ 95 $ 168 $ 290 $ 8 $ 7 $ 176 $ 392 Cross-currency interest rate swaps Foreign currency and interest rate — — 24 88 — — 24 88 Total derivative assets (2) — 95 192 378 8 7 200 480 Derivative Liabilities: Interest rate swaps Interest rate — (16 ) (59 ) (102 ) (64 ) (71 ) (123 ) (189 ) Floor Income Contracts Interest rate — — — — (40 ) (74 ) (40 ) (74 ) Cross-currency interest rate swaps Foreign currency and interest rate — — (553 ) (410 ) (39 ) (44 ) (592 ) (454 ) Other (3) Interest rate — — — — (12 ) (18 ) (12 ) (18 ) Total derivative liabilities (2) — (16 ) (612 ) (512 ) (155 ) (207 ) (767 ) (735 ) Net total derivatives $ — $ 79 $ (420 ) $ (134 ) $ (147 ) $ (200 ) $ (567 ) $ (255 ) (1) Fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements, and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: |
Gross Positions with Impact of Master Netting Agreements | The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities (Dollar in millions) June 30, 2018 December 31, 2017 June 30, 2018 December 31, 2017 Gross position $ 200 $ 480 $ (767 ) $ (735 ) Impact of master netting agreements (31 ) (42 ) 31 42 Derivative values with impact of master netting agreements (as carried on balance sheet) 169 438 (736 ) (693 ) Cash collateral (held) pledged (268 ) (536 ) 217 235 Net position $ (99 ) $ (98 ) $ (519 ) $ (458 ) (3) million of our common shares outstanding. This forward contract was entered into in May 2018 and settled on July 2, 2018. At settlement, Navient delivered $60 million cash in exchange for 4.3 million common shares. |
Derivative Notional Values | Cash Flow Fair Value Trading Total (Dollars in billions) Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Notional Values: Interest rate swaps $ 25.7 $ 24.1 $ 11.7 $ 12.4 $ 76.3 $ 72.0 $ 113.7 $ 108.5 Floor Income Contracts — — — — 27.9 21.9 27.9 21.9 Cross-currency interest rate swaps — — 4.8 6.7 .3 .3 5.1 7.0 Other (1) — — — — .4 .5 .4 .5 Total derivatives $ 25.7 $ 24.1 $ 16.5 $ 19.1 $ 104.9 $ 94.7 $ 147.1 $ 137.9 (1) “Other” includes derivatives related to our Total Return Swap Facility, as well as a forward contract outstanding as of June 30, 2018 to purchase $60 million of our common shares outstanding. |
Impact of Derivatives on Consolidated Statements of Income | 4. Impact of Derivatives on Consolidated Statements of Income Total Gains (Losses) (1) Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Fair Value Hedges: (2) Interest Rate Swaps Gains (losses) recognized in net income on derivatives $ (71 ) $ 18 $ (258 ) $ (66 ) Gains (losses) recognized in net income on hedged items 66 (38 ) 290 23 Net fair value hedge ineffectiveness gains (losses) (5 ) (20 ) 32 (43 ) Cross currency interest rate swaps Gains (losses) recognized in net income on derivatives (283 ) 459 (207 ) 577 Gains (losses) recognized in net income on hedged items 257 (442 ) 128 (604 ) Net fair value hedge ineffectiveness gains (losses) (26 ) 17 (79 ) (27 ) Total fair value hedges (31 ) (3 ) (47 ) (70 ) Cash Flow Hedges: (2) Interest rate swaps (3) — — — — Total cash flow hedges — — — — Trading Interest rate swaps (4 ) (3 ) 18 10 Floor income contracts 10 (5 ) 33 28 Cross currency interest rate swaps (14 ) (6 ) 2 5 Other (1 ) (8 ) 2 (14 ) Total trading derivatives (9 ) (22 ) 55 29 Gains (losses) on derivative and hedging activities, net $ (40 ) $ (25 ) $ 8 $ (41 ) (1) Recorded in “Gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. (2) The accrued interest income (expense) on fair value hedges and cash flow hedges is recorded in net interest income (expense) and is excluded from this table. (3) Represents ineffectiveness related to cash flow hedges. |
Collateral Held and Pledged | Collateral held and pledged related to derivative exposures between us and our derivative counterparties are detailed in the following table: (Dollars in millions) June 30, 2018 December 31, 2017 Collateral held: Cash (obligation to return cash collateral is recorded in short-term borrowings) $ 268 $ 536 Securities at fair value — corporate derivatives (not recorded in financial statements) (1) — — Securities at fair value — on-balance sheet securitization derivatives (not recorded in financial statements) (2) 109 297 Total collateral held $ 377 $ 833 Derivative asset at fair value including accrued interest $ 204 $ 618 Collateral pledged to others: Cash (right to receive return of cash collateral is recorded in investments) $ 217 $ 235 Total collateral pledged $ 217 $ 235 Derivative liability at fair value including accrued interest and premium receivable $ 684 $ 659 (1) (2) The trusts do not have the ability to sell or re-pledge securities they hold as collateral. |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table provides the detail of our other assets. (Dollars in millions) June 30, 2018 December 31, 2017 Accrued interest receivable, net $ 1,945 $ 1,965 Benefit and insurance-related investments 485 481 Income tax asset, net current and deferred 293 380 Derivatives at fair value 169 438 Fixed assets, net 144 156 Accounts receivable 104 108 Other loans, net 69 59 Other 395 438 Total $ 3,604 $ 4,025 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Common Share Repurchases and Issuances | The following table summarizes common share repurchases and issuances. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Common stock repurchased (1) — 10,936,715 — 18,300,007 Average purchase price per share $ — $ 15.10 $ — $ 15.04 Shares repurchased related to employee stock-based compensation plans (2) 92,369 255,875 3,557,504 1,610,155 Average purchase price per share $ 14.53 $ 15.70 $ 13.77 $ 15.58 Common shares issued (3) 113,171 355,802 5,134,238 3,150,312 (1) Common shares purchased under our share repurchase program. (2) Comprises shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (3) Common shares issued under our various compensation and benefit plans. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Common Share | Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2018 2017 2018 2017 Numerator: Net income attributable to Navient Corporation $ 83 $ 112 $ 210 $ 200 Denominator: Weighted average shares used to compute basic EPS 265 280 264 284 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, derivative contracts and Employee Stock Purchase Plan (“ESPP”) (1) 4 5 5 7 Dilutive potential common shares (2) 4 5 5 7 Weighted average shares used to compute diluted EPS 269 285 269 291 Basic earnings per common share attributable to Navient Corporation $ .31 $ .40 $ .79 $ .70 Diluted earnings per common share attributable to Navient Corporation $ .31 $ .39 $ .78 $ .69 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under applicable ESPPs, determined by the treasury stock method, and derivative contracts determined by the reverse treasury stock method. (2) For the three months ended June 30, 2018 and 2017, securities covering approximately 10 million and 5 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the six months ended June 30, 2018 and 2017, securities covering approximately 10 million and 5 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis | The following table summarizes the valuation of our financial instruments that are marked-to-market on a recurring basis. Fair Value Measurements on a Recurring Basis June 30, 2018 December 31, 2017 (Dollars in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments: Agency residential mortgage- backed securities $ — $ — $ — $ — $ — $ — $ — $ — Other — 2 — 2 — 2 — 2 Total available-for-sale investments — 2 — 2 — 2 — 2 Derivative instruments: (1) Interest rate swaps — 169 7 176 — 388 4 392 Cross-currency interest rate swaps — — 24 24 — — 88 88 Total derivative assets (2) — 169 31 200 — 388 92 480 Total $ — $ 171 $ 31 $ 202 $ — $ 390 $ 92 $ 482 Liabilities (3) Derivative instruments (1) Interest rate swaps $ — $ (83 ) $ (40 ) $ (123 ) $ — $ (144 ) $ (45 ) $ (189 ) Floor Income Contracts — (40 ) — (40 ) — (74 ) — (74 ) Cross-currency interest rate swaps — (39 ) (553 ) (592 ) — (44 ) (410 ) (454 ) Other — (4 ) (8 ) (12 ) — — (18 ) (18 ) Total derivative liabilities (2) — (166 ) (601 ) (767 ) — (262 ) (473 ) (735 ) Total $ — $ (166 ) $ (601 ) $ (767 ) $ — $ (262 ) $ (473 ) $ (735 ) (1) Fair value of derivative instruments excludes accrued interest and the value of collateral. (2) See “Note 4—Derivative Financial Instruments” for a reconciliation of gross positions without the impact of master netting agreements to the balance sheet classification. (3) Borrowings which are the hedged items in a fair value hedge relationship and which are adjusted for changes in value due to benchmark interest rates only are not carried at full fair value and are not reflected in this table. |
Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis | 9. The following tables summarize the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. Three Months Ended June 30, 2018 2017 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (37 ) $ (246 ) $ (12 ) $ (295 ) $ (42 ) $ (1,125 ) $ (16 ) $ (1,183 ) Total gains/(losses): Included in earnings (1) 3 (314 ) 3 (308 ) (7 ) 430 (8 ) 415 Included in other comprehensive income — — — — — — — — Settlements 1 31 1 33 1 29 2 32 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (33 ) $ (529 ) $ (8 ) $ (570 ) $ (48 ) $ (666 ) $ (22 ) $ (736 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 4 $ (283 ) $ 4 $ (275 ) $ (6 ) $ 459 $ (6 ) $ 447 Six Months Ended June 30, 2018 2017 Derivative instruments Derivative instruments (Dollars in millions) Interest Rate Cross Currency Interest Rate Swaps Other Total Derivative Instruments Interest Rate Swaps Cross Currency Interest Rate Swaps Other Total Derivative Instruments Balance, beginning of period $ (41 ) $ (322 ) $ (18 ) $ (381 ) $ (46 ) $ (1,243 ) $ (13 ) $ (1,302 ) Total gains/(losses): Included in earnings (1) 6 (265 ) 6 (253 ) (5 ) 519 (13 ) 501 Included in other comprehensive income — — — — — — — — Settlements 2 58 4 64 3 58 4 65 Transfers in and/or out of level 3 — — — — — — — — Balance, end of period $ (33 ) $ (529 ) $ (8 ) $ (570 ) $ (48 ) $ (666 ) $ (22 ) $ (736 ) Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date (2) $ 7 $ (180 ) $ 10 $ (163 ) $ (2 ) $ 516 $ (9 ) $ 505 (1) “Included in earnings” is comprised of the following amounts recorded in the specified line item in the consolidated statements of income: |
Included in Earnings | Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Gains (losses) on derivative and hedging activities, net $ (277 ) $ 444 $ (195 ) $ 559 Interest expense (31 ) (29 ) (58 ) (58 ) Total $ (308 ) $ 415 $ (253 ) $ 501 (2) Recorded in “gains (losses) on derivative and hedging activities, net” in the consolidated statements of income. |
Unobservable Data Used in Recurring Valuations of Level 3 | 9. The following table presents the significant inputs that are unobservable or from inactive markets used in the recurring valuations of the level 3 financial instruments detailed above. (Dollars in millions) Fair Value at June 30, 2018 Valuation Technique Input Range (Weighted Average) Derivatives Prime/LIBOR basis swaps $ (33 ) Discounted cash flow Constant Prepayment Rate 6% Bid/ask adjustment to .08% — .08% discount rate (.08%) Cross-currency interest rate swaps (529 ) Discounted cash flow Constant Prepayment Rate 4% Other (8 ) Total $ (570 ) |
Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2018 December 31, 2017 (Dollars in millions) Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets FFELP Loans $ 76,761 $ 76,609 $ 152 $ 82,271 $ 81,703 $ 568 Private Education Loans 23,648 22,568 1,080 24,421 23,419 1,002 Cash and investments (1) 5,370 5,370 — 5,034 5,034 — Total earning assets 105,779 104,547 1,232 111,726 110,156 1,570 Interest-bearing liabilities Short-term borrowings 4,782 4,752 (30 ) 4,783 4,771 (12 ) Long-term borrowings 98,883 98,690 (193 ) 104,921 105,012 91 Total interest-bearing liabilities 103,665 103,442 (223 ) 109,704 109,783 79 Derivative financial instruments Floor Income Contracts (40 ) (40 ) — (74 ) (74 ) — Interest rate swaps 53 53 — 203 203 — Cross-currency interest rate swaps (568 ) (568 ) — (366 ) (366 ) — Other (12 ) (12 ) — (18 ) (18 ) — Excess of net asset fair value over carrying value $ 1,009 $ 1,649 (1) “Cash and investments” includes available-for-sale investments that consist of investments that are primarily agency securities whose cost basis is $2 million and $2 million at June 30, 2018 and December 31, 2017, respectively, versus a fair value of $2 million and $2 million at June 30, 2018 and December 31, 2017, respectively. |
Revenue from Contract with Cu29
Revenue from Contract with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue from Contracts with Customers | The following tables illustrate the disaggregation of revenue from contracts with customers according to service type and client type by reportable operating segment. Revenue by Service Type Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal Education Loan asset recovery services $ 19 $ — $ 19 $ 39 $ — $ 39 Government services — 41 41 — 94 94 Healthcare services — 24 24 — 44 44 Total $ 19 $ 65 $ 84 $ 39 $ 138 $ 177 Revenue by Client Type Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (Dollars in millions) Federal Education Loans Business Processing Total Revenue Federal Education Loans Business Processing Total Revenue Federal government $ 1 $ 2 $ 3 $ 2 $ 3 $ 5 Guarantor agencies 15 — 15 31 — 31 Other institutions 3 — 3 6 — 6 State and local government — 23 23 — 49 49 Tolling authorities — 16 16 — 42 42 Hospitals and other healthcare providers — 24 24 — 44 44 Total $ 19 $ 65 $ 84 $ 39 $ 138 $ 177 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Results and Reconciliations to GAAP | Three Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 775 $ 442 $ — $ — $ 1,217 $ 3 $ (18 ) $ (15 ) $ 1,202 Other loans 1 — — — 1 — — — 1 Cash and investments 12 3 — 9 24 — — — 24 Total interest income 788 445 — 9 1,242 3 (18 ) (15 ) 1,227 Total interest expense 622 252 — 49 923 10 (4 ) 6 929 Net interest income (loss) 166 193 — (40 ) 319 (7 ) (14 ) (21 ) 298 Less: provisions for loan losses 40 72 — — 112 — — — 112 Net interest income (loss) after provisions for loan losses 126 121 — (40 ) 207 (7 ) (14 ) (21 ) 186 Other income (loss): Servicing revenue 68 3 — — 71 — — — 71 Asset recovery and business processing revenue 34 — 65 — 99 — — — 99 Other income (loss) — — — 3 3 7 (37 ) (30 ) (27 ) Losses on debt repurchases — — — (7 ) (7 ) — — — (7 ) Total other income (loss) 102 3 65 (4 ) 166 7 (37 ) (30 ) 136 Expenses: Direct operating expenses 36 39 54 — 129 — — — 129 Overhead expenses — — — 72 72 — — — 72 Operating expenses 36 39 54 72 201 — — — 201 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Restructuring/other reorganization expenses — — — 2 2 — — — 2 Total expenses 36 39 54 74 203 — 6 6 209 Income (loss) before income tax expense (benefit) 192 85 11 (118 ) 170 — (57 ) (57 ) 113 Income tax expense (benefit) (2) 44 19 3 (27 ) 39 — (9 ) (9 ) 30 Net income (loss) $ 148 $ 66 $ 8 $ (91 ) $ 131 $ — $ (48 ) $ (48 ) $ 83 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2018 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (21 ) $ — $ (21 ) Total other income (loss) (30 ) — (30 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (51 ) $ (6 ) (57 ) Income tax expense (benefit) (9 ) Net income (loss) $ (48 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Three Months Ended June 30, 2017 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 664 $ 386 $ — $ — $ 1,050 $ 18 $ (14 ) $ 4 $ 1,054 Other loans 6 — — — 6 — — — 6 Cash and investments 7 1 — 2 10 — — — 10 Total interest income 677 387 — 2 1,066 18 (14 ) 4 1,070 Total interest expense 498 192 — 33 723 (1 ) (3 ) (4 ) 719 Net interest income (loss) 179 195 — (31 ) 343 19 (11 ) 8 351 Less: provisions for loan losses 10 95 — — 105 — — — 105 Net interest income (loss) after provisions for loan losses 169 100 — (31 ) 238 19 (11 ) 8 246 Other income (loss): Servicing revenue 70 — — — 70 — — — 70 Asset recovery and business processing revenue 58 — 53 — 111 — — — 111 Other income (loss) — — — 4 4 (19 ) (4 ) (23 ) (19 ) Total other income (loss) 128 — 53 4 185 (19 ) (4 ) (23 ) 162 Expenses: Direct operating expenses 79 37 44 — 160 — — — 160 Overhead expenses — — — 70 70 — — — 70 Operating expenses 79 37 44 70 230 — — — 230 Goodwill and acquired intangible asset impairment and amortization — — — — — — 6 6 6 Total expenses 79 37 44 70 230 — 6 6 236 Income (loss) before income tax expense (benefit) 218 63 9 (97 ) 193 — (21 ) (21 ) 172 Income tax expense (benefit) (2) 80 23 3 (36 ) 70 — (10 ) (10 ) 60 Net income (loss) $ 138 $ 40 $ 6 $ (61 ) $ 123 $ — $ (11 ) $ (11 ) $ 112 (1) Core Earnings adjustments to GAAP: Three Months Ended June 30, 2017 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ 8 $ — $ 8 Total other income (loss) (23 ) — (23 ) Goodwill and acquired intangible asset impairment and amortization — 6 6 Total Core Earnings adjustments to GAAP $ (15 ) $ (6 ) (21 ) Income tax expense (benefit) (10 ) Net income (loss) $ (11 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Six Months Ended June 30, 2018 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,507 $ 873 $ — $ — $ 2,380 $ 11 $ (35 ) $ (24 ) $ 2,356 Other loans 2 — — — 2 — — — 2 Cash and investments 19 6 — 16 41 — — — 41 Total interest income 1,528 879 — 16 2,423 11 (35 ) (24 ) 2,399 Total interest expense 1,193 490 — 91 1,774 4 (5 ) (1 ) 1,773 Net interest income (loss) 335 389 — (75 ) 649 7 (30 ) (23 ) 626 Less: provisions for loan losses 50 149 — — 199 — — — 199 Net interest income (loss) after provisions for loan losses 285 240 — (75 ) 450 7 (30 ) (23 ) 427 Other income (loss): Servicing revenue 134 6 — — 140 — — — 140 Asset recovery and business processing revenue 70 — 137 — 207 — — — 207 Other income (loss) 1 — — 5 6 (7 ) 10 3 9 Losses on debt repurchases — — — (8 ) (8 ) — — — (8 ) Total other income (loss) 205 6 137 (3 ) 345 (7 ) 10 3 348 Expenses: Direct operating expenses 115 95 113 — 323 — — — 323 Overhead expenses — — — 153 153 — — — 153 Operating expenses 115 95 113 153 476 — — — 476 Goodwill and acquired intangible asset impairment and amortization — — — — — — 16 16 16 Restructuring/other reorganization expenses — — — 9 9 — — — 9 Total expenses 115 95 113 162 485 — 16 16 501 Income (loss) before income tax expense (benefit) 375 151 24 (240 ) 310 — (36 ) (36 ) 274 Income tax expense (benefit) (2) 86 35 6 (55 ) 72 — (8 ) (8 ) 64 Net income (loss) $ 289 $ 116 $ 18 $ (185 ) $ 238 $ — $ (28 ) $ (28 ) $ 210 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2018 (Dollars in millions) Net Derivative Accounting Net Impact of Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ (23 ) $ — $ (23 ) Total other income (loss) 3 — 3 Goodwill and acquired intangible asset impairment and amortization — 16 16 Total Core Earnings adjustments to GAAP $ (20 ) $ (16 ) (36 ) Income tax expense (benefit) (8 ) Net income (loss) $ (28 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. Six Months Ended June 30, 2017 Adjustments (Dollars in millions) Federal Education Loans Consumer Lending Business Processing Other Total Core Earnings Reclassi- fications Additions/ (Subtractions) Total Adjustments (1) Total GAAP Interest income: Education loans $ 1,288 $ 759 $ — $ — $ 2,047 $ 38 $ (27 ) $ 11 $ 2,058 Other loans 10 — — — 10 — — — 10 Cash and investments 12 2 — 3 17 — — — 17 Total interest income 1,310 761 — 3 2,074 38 (27 ) 11 2,085 Total interest expense 956 379 — 62 1,397 2 (5 ) (3 ) 1,394 Net interest income (loss) 354 382 — (59 ) 677 36 (22 ) 14 691 Less: provisions for loan losses 22 190 — — 212 — — — 212 Net interest income (loss) after provisions for loan losses 332 192 — (59 ) 465 36 (22 ) 14 479 Other income (loss): Servicing revenue 143 3 — — 146 — — — 146 Asset recovery and business processing revenue 113 — 97 — 210 — — — 210 Other income (loss) 1 — — 9 10 (36 ) (16 ) (52 ) (42 ) Total other income (loss) 257 3 97 9 366 (36 ) (16 ) (52 ) 314 Expenses: Direct operating expenses 168 72 82 — 322 — — — 322 Overhead expenses — — — 147 147 — — — 147 Operating expenses 168 72 82 147 469 — — — 469 Goodwill and acquired intangible asset impairment and amortization — — — — — — 11 11 11 Total expenses 168 72 82 147 469 — 11 11 480 Income (loss) before income tax expense (benefit) 421 123 15 (197 ) 362 — (49 ) (49 ) 313 Income tax expense (benefit) (2) 153 45 6 (72 ) 132 — (19 ) (19 ) 113 Net income (loss) $ 268 $ 78 $ 9 $ (125 ) $ 230 $ — $ (30 ) $ (30 ) $ 200 (1) Core Earnings adjustments to GAAP: Six Months Ended June 30, 2017 (Dollars in millions) Net Impact of Derivative Accounting Net Goodwill and Acquired Intangible Assets Total Net interest income (loss) after provisions for loan losses $ 14 $ — $ 14 Total other income (loss) (52 ) — (52 ) Goodwill and acquired intangible asset impairment and amortization — 11 11 Total Core Earnings adjustments to GAAP $ (38 ) $ (11 ) (49 ) Income tax expense (benefit) (19 ) Net income (loss) $ (30 ) (2) Income taxes are based on a percentage of net income before tax for the individual reportable segment. |
Core Earnings Adjustments to GAAP | Summary of Core Earnings Adjustments to GAAP Three Months Ended June 30, Six Months Ended June 30, (Dollars in millions) 2018 2017 2018 2017 Core Earnings adjustments to GAAP: Net impact of derivative accounting (1) $ (51 ) $ (15 ) $ (20 ) $ (38 ) Net impact of goodwill and acquired intangible assets (2) (6 ) (6 ) (16 ) (11 ) Net tax effect (3) 9 10 8 19 Total Core Earnings adjustments to GAAP $ (48 ) $ (11 ) $ (28 ) $ (30 ) (1) Derivative accounting: (2) Goodwill and acquired intangible assets: (3) Net tax effect: |
Federal Education Loans [Member] | |
Asset Information for Loans Segment | The following table includes GAAP basis asset information for our Federal Education Loans segment. (Dollars in millions) June 30, 2018 December 31, 2017 FFELP Loans, net $ 76,609 $ 81,703 Cash and investments (1) 2,732 2,821 Other 2,209 2,601 Total assets $ 81,550 $ 87,125 (1) Includes restricted cash and investments. |
Consumer Lending [Member] | |
Asset Information for Loans Segment | The following table includes GAAP basis asset information for our Consumer Lending segment. (Dollars in millions) June 30, 2018 December 31, 2017 Private Education Loans, net $ 22,568 $ 23,419 Cash and investments (1) 803 706 Other 1,149 1,143 Total assets $ 24,520 $ 25,268 (1) Includes restricted cash and investments. |
Significant Accounting Polici31
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Contract with customer, revenue recognized | $ 84,000,000 | $ 177,000,000 |
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (13,000,000) | |
Business Processing [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Contract with customer, revenue recognized | 65,000,000 | 138,000,000 |
Federal Education Loans [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Contract with customer, revenue recognized | 19,000,000 | 39,000,000 |
ASU 2014-09 [Member] | Business Processing [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Contract with customer, revenue recognized | 9,000,000 | |
Expenses recognized from contract with customer | 6,000,000 | |
ASU 2014-09 [Member] | Federal Education Loans [Member] | Difference Before and After Topic 606 [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Effect of change in accounting policy on asset recovery | $ 18,000,000 | 18,000,000 |
Effect of change in accounting policy on operating expense | 18,000,000 | |
Effect of change in accounting policy on net income | $ 0 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - Loan | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Percentage of loans granted forbearance that migrated to TDR classification | 63.00% | 61.00% |
Payment default period for TDRs | 60 days past due | |
Minimum [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Delinquency period (in days) | 212 days | |
Private Education Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of classes of loans | 2 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)SecurityLoan | Jun. 30, 2017USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | Jun. 30, 2017USD ($)SecurityLoan | |
Allowance for Loan Losses | ||||
Beginning balance | $ 1,367 | $ 1,391 | $ 1,367 | $ 1,433 |
Total provision | 112 | 105 | 199 | 212 |
Charge-offs | (92) | (136) | (181) | (287) |
Reclassification of interest reserve | 2 | 2 | 4 | 4 |
Ending balance | 1,389 | 1,362 | 1,389 | 1,362 |
Allowance Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 1,151 | 1,163 | 1,151 | 1,163 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 238 | 199 | 238 | 199 |
Ending balance | 1,389 | 1,362 | 1,389 | 1,362 |
Loans Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 10,707 | 11,051 | 10,707 | 11,051 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 84,480 | 94,625 | 84,480 | 94,625 |
Purchased Non-Credit Impaired Loans acquired at a discount | 5,420 | 6,218 | 5,420 | 6,218 |
Purchased Credit Impaired Loans | 236 | 261 | 236 | 261 |
Ending total loans | 100,843 | 112,155 | 100,843 | 112,155 |
FFELP Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 59 | 64 | 60 | 67 |
Total provision | 40 | 10 | 50 | 20 |
Charge-offs | (17) | (13) | (28) | (26) |
Ending balance | 82 | 61 | 82 | 61 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 82 | 61 | 82 | 61 |
Ending balance | 82 | 61 | 82 | 61 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 73,018 | 81,984 | 73,018 | 81,984 |
Purchased Non-Credit Impaired Loans acquired at a discount | 3,034 | 3,463 | 3,034 | 3,463 |
Ending total loans | $ 76,052 | $ 85,447 | $ 76,052 | $ 85,447 |
Charge-offs as a percentage of average loans in repayment | 0.11% | 0.08% | 0.09% | 0.08% |
Allowance coverage of charge-offs | SecurityLoan | 1.2 | 1.1 | 1.5 | 1.2 |
Allowance as a percentage of the ending total loan balance | 0.11% | 0.07% | 0.11% | 0.07% |
Allowance as a percentage of the ending loans in repayment | 0.13% | 0.09% | 0.13% | 0.09% |
Average loans in repayment | $ 64,238 | $ 68,915 | $ 64,940 | $ 69,108 |
Ending loans in repayment | 62,952 | 70,095 | 62,952 | 70,095 |
Private Education Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 1,298 | 1,311 | 1,297 | 1,351 |
Total provision | 72 | 95 | 149 | 190 |
Charge-offs | (75) | (122) | (153) | (259) |
Reclassification of interest reserve | 2 | 2 | 4 | 4 |
Ending balance | 1,297 | 1,286 | 1,297 | 1,286 |
Allowance Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 1,142 | 1,153 | 1,142 | 1,153 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 155 | 133 | 155 | 133 |
Ending balance | 1,297 | 1,286 | 1,297 | 1,286 |
Loans Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 10,679 | 11,020 | 10,679 | 11,020 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 11,411 | 12,467 | 11,411 | 12,467 |
Purchased Non-Credit Impaired Loans acquired at a discount | 2,386 | 2,755 | 2,386 | 2,755 |
Purchased Credit Impaired Loans | 236 | 261 | 236 | 261 |
Ending total loans | $ 24,712 | $ 26,503 | $ 24,712 | $ 26,503 |
Charge-offs as a percentage of average loans in repayment | 1.34% | 2.25% | 1.37% | 2.40% |
Allowance coverage of charge-offs | SecurityLoan | 4.3 | 2.6 | 4.2 | 2.5 |
Allowance as a percentage of the ending total loan balance | 5.25% | 4.85% | 5.25% | 4.85% |
Allowance as a percentage of the ending loans in repayment | 5.85% | 5.45% | 5.85% | 5.45% |
Average loans in repayment | $ 22,289 | $ 21,621 | $ 22,474 | $ 21,706 |
Ending loans in repayment | 22,174 | 23,613 | 22,174 | 23,613 |
Other Loans [Member] | ||||
Allowance for Loan Losses | ||||
Beginning balance | 10 | 16 | 10 | 15 |
Total provision | 2 | |||
Charge-offs | (1) | (2) | ||
Ending balance | 10 | 15 | 10 | 15 |
Allowance Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 9 | 10 | 9 | 10 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 1 | 5 | 1 | 5 |
Ending balance | 10 | 15 | 10 | 15 |
Loans Ending Balance: | ||||
Ending Balance: Individually evaluated for impairment — TDR | 28 | 31 | 28 | 31 |
Collectively evaluated for impairment: | ||||
Excluding Purchased Non-Credit Impaired Loans acquired at a discount and Purchased Credit Impaired Loans | 51 | 174 | 51 | 174 |
Ending total loans | $ 79 | $ 205 | $ 79 | $ 205 |
Charge-offs as a percentage of average loans in repayment | 2.63% | 2.37% | 1.13% | 2.22% |
Allowance coverage of charge-offs | SecurityLoan | 5.1 | 3.3 | 11.9 | 3.7 |
Allowance as a percentage of the ending total loan balance | 12.54% | 7.49% | 12.21% | 7.49% |
Allowance as a percentage of the ending loans in repayment | 12.54% | 7.49% | 12.21% | 7.49% |
Average loans in repayment | $ 73 | $ 197 | $ 72 | $ 185 |
Ending loans in repayment | $ 79 | $ 205 | $ 79 | $ 205 |
Allowance for Loan Losses - A34
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
FFELP Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loans acquired | $ 0 | $ 0 | $ 0 | $ 0 |
Loans receivable, discount | 40,000,000 | 47,000,000 | 40,000,000 | 47,000,000 |
Private Education Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loans acquired | 0 | 0 | 0 | 0 |
Loans receivable, discount | $ 362,000,000 | $ 419,000,000 | $ 362,000,000 | $ 419,000,000 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Loans in repayment and percentage of each status: | ||||||
Loans allowance for losses | $ (1,389) | $ (1,367) | $ (1,367) | $ (1,362) | $ (1,391) | $ (1,433) |
FFELP Loans [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Total loans in repayment | 62,952 | 70,095 | ||||
Loans allowance for losses | (82) | (60) | $ (59) | $ (61) | $ (64) | $ (67) |
Loans, net | 76,609 | 81,703 | ||||
Credit Concentration Risk [Member] | Private Education Loans - TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | 10,296 | 10,536 | ||||
Loans in repayment and percentage of each status: | ||||||
Loans current | 8,041 | 8,333 | ||||
Total loans in repayment | 9,157 | 9,378 | ||||
Loans unamortized premium (discount) | (220) | (225) | ||||
Total loans | 10,076 | 10,311 | ||||
Loans receivable for partially charged-off loans | 383 | 385 | ||||
Loans allowance for losses | (1,142) | (1,171) | ||||
Loans, net | $ 9,317 | $ 9,525 | ||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | $ 13,692 | $ 14,344 | ||||
Loans in repayment and percentage of each status: | ||||||
Total loans in repayment | 13,017 | 13,546 | ||||
Loans unamortized premium (discount) | (627) | (699) | ||||
Total loans | 13,065 | 13,645 | ||||
Loans receivable for partially charged-off loans | 341 | 375 | ||||
Loans allowance for losses | (155) | (126) | ||||
Loans, net | $ 13,251 | $ 13,894 | ||||
Credit Concentration Risk [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 370 | $ 351 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 83 | $ 120 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 4.10% | 3.70% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 0.60% | 0.90% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 215 | $ 207 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 37 | $ 59 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 2.30% | 2.20% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 0.30% | 0.40% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 531 | $ 487 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 71 | $ 110 | ||||
Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 5.80% | 5.20% | ||||
Credit Concentration Risk [Member] | Financing Receivables, 90 Days Past Due [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 0.60% | 0.80% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Current [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans current | $ 12,826 | $ 13,257 | ||||
Credit Concentration Risk [Member] | Financing Receivables, Current [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 87.80% | 88.90% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Current [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 98.50% | 97.90% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Loans In Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 88.90% | 89.00% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Loans In Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 95.10% | 94.40% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 12.20% | 11.10% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 1.50% | 2.10% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 7.00% | 6.80% | ||||
Credit Concentration Risk [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Accounts Receivable [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 1.50% | 1.60% | ||||
Credit Concentration Risk [Member] | School/Grace/Deferment [Member] | Private Education Loans - TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | $ 449 | $ 477 | ||||
Credit Concentration Risk [Member] | School/Grace/Deferment [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | 480 | 584 | ||||
Credit Concentration Risk [Member] | Forbearance [Member] | Private Education Loans - TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | 690 | 681 | ||||
Credit Concentration Risk [Member] | Forbearance [Member] | Private Education Loans - Non-TDR [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | 195 | 214 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | 76,052 | 81,097 | ||||
Loans in repayment and percentage of each status: | ||||||
Loans current | 54,780 | 59,264 | ||||
Total loans in repayment | 62,952 | 67,853 | ||||
Loans unamortized premium (discount) | 639 | 666 | ||||
Total loans | 76,691 | 81,763 | ||||
Loans allowance for losses | (82) | (60) | ||||
Loans, net | $ 76,609 | $ 81,703 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 100.00% | 100.00% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 2,344 | $ 2,638 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 31 to 60 Days Past Due [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 3.70% | 3.90% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 1,110 | $ 1,763 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 61 to 90 Days Past Due [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 1.80% | 2.60% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 90 Days Past Due [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 4,718 | $ 4,188 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, 90 Days Past Due [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent, percentage | 7.50% | 6.20% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, Current [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 87.00% | 87.30% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, Loans In Repayment [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 82.80% | 83.70% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, Delinquent Loans in Repayment [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 13.00% | 12.70% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Financing Receivables, Forbearance, Loans In Repayment [Member] | Accounts Receivable [Member] | ||||||
Loans in repayment and percentage of each status: | ||||||
Dimensions of concentration risk | 12.20% | 11.20% | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | School/Grace/Deferment [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | $ 4,372 | $ 4,711 | ||||
Credit Concentration Risk [Member] | FFELP Loans [Member] | Forbearance [Member] | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Total loans, gross | $ 8,728 | $ 8,533 |
Allowance for Loan Losses - Pri
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Private Education Loans - TDR [Member] | Original Winning FICO Scores [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 10,296 | $ 10,536 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - TDR [Member] | Original Winning FICO Scores [Member] | FICO 640 and Above [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,436 | $ 9,647 |
Total Private Education Loan Credit Quality Indicators, Percent | 92.00% | 92.00% |
Private Education Loans - TDR [Member] | Original Winning FICO Scores [Member] | FICO Below 640 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 860 | $ 889 |
Total Private Education Loan Credit Quality Indicators, Percent | 8.00% | 8.00% |
Private Education Loans - TDR [Member] | School Type [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 10,296 | $ 10,536 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - TDR [Member] | School Type [Member] | Not For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 8,096 | $ 8,247 |
Total Private Education Loan Credit Quality Indicators, Percent | 79.00% | 78.00% |
Private Education Loans - TDR [Member] | School Type [Member] | For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 2,200 | $ 2,289 |
Total Private Education Loan Credit Quality Indicators, Percent | 21.00% | 22.00% |
Private Education Loans - TDR [Member] | Cosigners [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 10,296 | $ 10,536 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - TDR [Member] | Cosigners [Member] | With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 6,340 | $ 6,441 |
Total Private Education Loan Credit Quality Indicators, Percent | 62.00% | 61.00% |
Private Education Loans - TDR [Member] | Cosigners [Member] | Without Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 3,956 | $ 4,095 |
Total Private Education Loan Credit Quality Indicators, Percent | 38.00% | 39.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 10,296 | $ 10,536 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | 1-12 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 412 | $ 506 |
Total Private Education Loan Credit Quality Indicators, Percent | 4.00% | 5.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | 13-24 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 542 | $ 644 |
Total Private Education Loan Credit Quality Indicators, Percent | 5.00% | 6.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | 25-36 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 792 | $ 947 |
Total Private Education Loan Credit Quality Indicators, Percent | 8.00% | 9.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | 37-48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 1,108 | $ 1,271 |
Total Private Education Loan Credit Quality Indicators, Percent | 11.00% | 12.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | More than 48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 6,993 | $ 6,691 |
Total Private Education Loan Credit Quality Indicators, Percent | 68.00% | 63.00% |
Private Education Loans - TDR [Member] | Seasoning [Member] | Not Yet in Repayment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 449 | $ 477 |
Total Private Education Loan Credit Quality Indicators, Percent | 4.00% | 5.00% |
Private Education Loans - Non-TDR [Member] | Original Winning FICO Scores [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,692 | $ 14,344 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDR [Member] | Original Winning FICO Scores [Member] | FICO 640 and Above [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,144 | $ 13,752 |
Total Private Education Loan Credit Quality Indicators, Percent | 96.00% | 96.00% |
Private Education Loans - Non-TDR [Member] | Original Winning FICO Scores [Member] | FICO Below 640 [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 548 | $ 592 |
Total Private Education Loan Credit Quality Indicators, Percent | 4.00% | 4.00% |
Private Education Loans - Non-TDR [Member] | School Type [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,692 | $ 14,344 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDR [Member] | School Type [Member] | Not For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 11,817 | $ 12,431 |
Total Private Education Loan Credit Quality Indicators, Percent | 86.00% | 87.00% |
Private Education Loans - Non-TDR [Member] | School Type [Member] | For Profit [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 1,875 | $ 1,913 |
Total Private Education Loan Credit Quality Indicators, Percent | 14.00% | 13.00% |
Private Education Loans - Non-TDR [Member] | Cosigners [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,692 | $ 14,344 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDR [Member] | Cosigners [Member] | With Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 8,020 | $ 9,193 |
Total Private Education Loan Credit Quality Indicators, Percent | 59.00% | 64.00% |
Private Education Loans - Non-TDR [Member] | Cosigners [Member] | Without Cosigner [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 5,672 | $ 5,151 |
Total Private Education Loan Credit Quality Indicators, Percent | 41.00% | 36.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 13,692 | $ 14,344 |
Total Private Education Loan Credit Quality Indicators, Percent | 100.00% | 100.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | 1-12 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 2,004 | $ 1,424 |
Total Private Education Loan Credit Quality Indicators, Percent | 15.00% | 10.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | 13-24 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 637 | $ 437 |
Total Private Education Loan Credit Quality Indicators, Percent | 5.00% | 3.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | 25-36 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 355 | $ 466 |
Total Private Education Loan Credit Quality Indicators, Percent | 2.00% | 3.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | 37-48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 537 | $ 867 |
Total Private Education Loan Credit Quality Indicators, Percent | 4.00% | 6.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | More than 48 Payments [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 9,679 | $ 10,566 |
Total Private Education Loan Credit Quality Indicators, Percent | 71.00% | 74.00% |
Private Education Loans - Non-TDR [Member] | Seasoning [Member] | Not Yet in Repayment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total Private Education Loan Credit Quality Indicators | $ 480 | $ 584 |
Total Private Education Loan Credit Quality Indicators, Percent | 3.00% | 4.00% |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Receivable for Partially Charged-Off Private Education Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Charge-offs | $ 92 | $ 136 | $ 181 | $ 287 |
Private Education Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Receivable at beginning of period | 23,419 | |||
Charge-offs | 75 | 122 | 153 | 259 |
Receivable at end of period | 22,568 | 22,568 | ||
Private Education Loans [Member] | Loans Receivable For Partially Charged Off Loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Receivable at beginning of period | 741 | 800 | 760 | 815 |
Expected future recoveries of current period defaults | 19 | 29 | 38 | 63 |
Recoveries | (36) | (40) | (74) | (84) |
Charge-offs | (5) | (10) | ||
Receivable at end of period | $ 724 | $ 784 | $ 724 | $ 784 |
Allowance for Loan Losses - R38
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
TDR Loans, Recorded investment | $ 10,655 | $ 10,890 |
TDR loans, Total ending loans | 10,679 | 10,921 |
TDR Loans, Related allowance | $ 1,142 | $ 1,171 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Receivables [Abstract] | ||||
Impaired financing receivable, Average recorded investment | $ 10,733 | $ 11,012 | $ 10,794 | $ 11,052 |
Impaired financing receivable, Interest income recognized | $ 187 | $ 176 | $ 367 | $ 348 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans Modified Accounts for TDR (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Receivables [Abstract] | ||||
Modified loans | $ 137 | $ 203 | $ 307 | $ 418 |
Charge-offs | 60 | 94 | 120 | 200 |
Payment default | $ 33 | $ 47 | $ 70 | $ 101 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | $ 1,945 | $ 1,965 |
Private Education Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 365 | 383 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 23 | 26 |
Private Education Loans [Member] | TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 198 | 196 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 22 | 20 |
Private Education Loans [Member] | Non-TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 167 | 187 |
Accrued Interest Receivable, Allowance for Uncollectible Interest | 1 | 6 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 31 | 24 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | 27 | 20 |
Accrued Interest Receivable, Greater Than 90 Days Past Due [Member] | Private Education Loans [Member] | Non-TDR [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accrued Interest Receivable | $ 4 | $ 4 |
Borrowings - Company's Borrowin
Borrowings - Company's Borrowings (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 4,752 | $ 4,771 |
Long-term borrowings | 98,690 | 105,012 |
Total | 103,442 | 109,783 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 4,762 | 4,750 |
Long-term borrowings | 99,082 | 105,018 |
Total | 103,844 | 109,768 |
Total Before Hedge Accounting Adjustments [Member] | Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 2,235 | 1,306 |
Long-term borrowings | 10,771 | 12,624 |
Total | 13,006 | 13,930 |
Total Before Hedge Accounting Adjustments [Member] | Total Unsecured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 2,235 | 1,306 |
Long-term borrowings | 10,771 | 12,624 |
Total | 13,006 | 13,930 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 69,786 | 71,208 |
Total | 69,786 | 71,208 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Securitizations [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 960 | 686 |
Long-term borrowings | 12,507 | 12,646 |
Total | 13,467 | 13,332 |
Total Before Hedge Accounting Adjustments [Member] | FFELP Loan - Other Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 593 | 1,536 |
Long-term borrowings | 4,533 | 6,830 |
Total | 5,126 | 8,366 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan - Other Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 698 | 684 |
Long-term borrowings | 1,485 | 1,710 |
Total | 2,183 | 2,394 |
Total Before Hedge Accounting Adjustments [Member] | Other [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 276 | 538 |
Total | 276 | 538 |
Total Before Hedge Accounting Adjustments [Member] | Secured Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | 2,527 | 3,444 |
Long-term borrowings | 88,311 | 92,394 |
Total | 90,838 | 95,838 |
Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | (10) | 21 |
Long-term borrowings | (392) | (6) |
Total | $ (402) | $ 15 |
Borrowings - Company's Borrow43
Borrowings - Company's Borrowings (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short-term Debt | $ 4,752 | $ 4,771 |
Long-term debt | 98,690 | 105,012 |
Total Before Hedge Accounting Adjustments [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | 4,762 | 4,750 |
Long-term debt | 99,082 | 105,018 |
Total Before Hedge Accounting Adjustments [Member] | Private Education Loan Securitizations Repurchase Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt | 960 | 686 |
Long-term debt | 1,800 | 1,300 |
Total Before Hedge Accounting Adjustments [Member] | Short Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | 2,200 | 1,300 |
Total Before Hedge Accounting Adjustments [Member] | Long Term Senior Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt principal amount | $ 10,900 | $ 12,700 |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | $ 4,752 | $ 4,771 |
Long-term borrowings | 98,690 | 105,012 |
Total | 103,442 | 109,783 |
Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 4,762 | 4,750 |
Long-term borrowings | 99,082 | 105,018 |
Total | 103,844 | 109,768 |
Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | (10) | 21 |
Long-term borrowings | (392) | (6) |
Total | (402) | 15 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 2,251 | 2,906 |
Long-term borrowings | 85,310 | 89,317 |
Total | 87,561 | 92,223 |
Loans | 92,934 | 98,596 |
Cash | 3,326 | 3,091 |
Other assets, Net | 1,245 | 1,160 |
Total Carrying Amount of Assets Securing Debt Outstanding | 97,505 | 102,847 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Long-term borrowings | 69,786 | 71,208 |
Total | 69,786 | 71,208 |
Loans | 70,574 | 72,145 |
Cash | 2,472 | 2,335 |
Other assets, Net | 1,452 | 1,078 |
Total Carrying Amount of Assets Securing Debt Outstanding | 74,498 | 75,558 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan Securitizations [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 960 | 686 |
Long-term borrowings | 12,507 | 12,646 |
Total | 13,467 | 13,332 |
Loans | 16,868 | 17,739 |
Cash | 656 | 484 |
Other assets, Net | 218 | 237 |
Total Carrying Amount of Assets Securing Debt Outstanding | 17,742 | 18,460 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | FFELP Loan - Other Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 593 | 1,536 |
Long-term borrowings | 1,907 | 3,999 |
Total | 2,500 | 5,535 |
Loans | 2,533 | 5,565 |
Cash | 102 | 204 |
Other assets, Net | 74 | 156 |
Total Carrying Amount of Assets Securing Debt Outstanding | 2,709 | 5,925 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Private Education Loan - Other Facilities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 698 | 684 |
Long-term borrowings | 1,485 | 1,710 |
Total | 2,183 | 2,394 |
Loans | 2,959 | 3,147 |
Cash | 96 | 68 |
Other assets, Net | 28 | 31 |
Total Carrying Amount of Assets Securing Debt Outstanding | 3,083 | 3,246 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Total Before Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Short-term borrowings | 2,251 | 2,906 |
Long-term borrowings | 85,685 | 89,563 |
Total | 87,936 | 92,469 |
Loans | 92,934 | 98,596 |
Cash | 3,326 | 3,091 |
Other assets, Net | 1,772 | 1,502 |
Total Carrying Amount of Assets Securing Debt Outstanding | 98,032 | 103,189 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | Hedge Accounting Adjustments [Member] | ||
Securities Financing Transaction [Line Items] | ||
Long-term borrowings | (375) | (246) |
Total | (375) | (246) |
Other assets, Net | (527) | (342) |
Total Carrying Amount of Assets Securing Debt Outstanding | $ (527) | $ (342) |
Borrowings - Financing VIEs (Pa
Borrowings - Financing VIEs (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Long-term debt | $ 98,690 | $ 105,012 |
Short-term Debt | 4,752 | 4,771 |
Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Long-term debt | 85,310 | 89,317 |
Short-term Debt | 2,251 | 2,906 |
Restricted cash | 3,326 | 3,091 |
Private Education Loan Securitizations Repurchase Facilities [Member] | Assets and Liabilities of Consolidated Variable Interest Entities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Long-term debt | 1,800 | 1,300 |
Short-term Debt | 960 | 686 |
Restricted cash | $ 170 | $ 96 |
Derivative Financial Instrume46
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Assets: | ||
Derivative assets | $ 200 | $ 480 |
Derivative Liabilities: | ||
Derivative liabilities | (767) | (735) |
Net total derivatives | (567) | (255) |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Assets: | ||
Derivative assets | 95 | |
Derivative Liabilities: | ||
Derivative liabilities | (16) | |
Net total derivatives | 79 | |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 192 | 378 |
Derivative Liabilities: | ||
Derivative liabilities | (612) | (512) |
Net total derivatives | (420) | (134) |
Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 8 | 7 |
Derivative Liabilities: | ||
Derivative liabilities | (155) | (207) |
Net total derivatives | (147) | (200) |
Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 176 | 392 |
Derivative Liabilities: | ||
Derivative liabilities | (123) | (189) |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative Assets: | ||
Derivative assets | 95 | |
Derivative Liabilities: | ||
Derivative liabilities | (16) | |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 168 | 290 |
Derivative Liabilities: | ||
Derivative liabilities | (59) | (102) |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Assets: | ||
Derivative assets | 8 | 7 |
Derivative Liabilities: | ||
Derivative liabilities | (64) | (71) |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative Assets: | ||
Derivative assets | 24 | 88 |
Derivative Liabilities: | ||
Derivative liabilities | (592) | (454) |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative Assets: | ||
Derivative assets | 24 | 88 |
Derivative Liabilities: | ||
Derivative liabilities | (553) | (410) |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (39) | (44) |
Floor Income Contracts [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (40) | (74) |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (40) | (74) |
Other [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | (12) | (18) |
Other [Member] | Trading [Member] | ||
Derivative Liabilities: | ||
Derivative liabilities | $ (12) | $ (18) |
Derivative Financial Instrume47
Derivative Financial Instruments - Gross Positions without Impact of Master Netting Agreements (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives Fair Value [Line Items] | ||
Derivative assets | $ 200 | $ 480 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Assets | 169 | 438 |
Cash collateral (held) pledged, Assets | (268) | (536) |
Derivative liabilities | (767) | (735) |
Cash collateral (held) pledged, Liabilities | 217 | 235 |
Other Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 200 | 480 |
Impact of master netting agreements, Assets | (31) | (42) |
Derivative values with impact of master netting agreements (as carried on balance sheet), Assets | 169 | 438 |
Cash collateral (held) pledged, Assets | (268) | (536) |
Net position, Assets | (99) | (98) |
Other Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | (767) | (735) |
Impact of master netting agreements, Liabilities | 31 | 42 |
Derivative values with impact of master netting agreements (as carried on balance sheet), Liabilities | (736) | (693) |
Cash collateral (held) pledged, Liabilities | 217 | 235 |
Net position, Liabilities | $ (519) | $ (458) |
Derivative Financial Instrume48
Derivative Financial Instruments - Gross Positions without Impact of Master Netting Agreements (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | Jul. 02, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | May 31, 2018 |
Derivatives Fair Value [Line Items] | |||||
Cash paid in settlement of common shares purchase | $ 275 | ||||
Forward Contract [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Derivative to purchase common shares | $ 60 | ||||
Forward Contract [Member] | Subsequent Event [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Cash paid in settlement of common shares purchase | $ 60 | ||||
Common shares repurchased | 4.3 | ||||
Interest Rate Swaps [Member] | Forward Contract [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Derivative to purchase common shares | $ 60 | ||||
Derivative entered date | May 31, 2018 | ||||
Derivative settlement date | Jul. 2, 2018 | ||||
Interest Rate Swaps [Member] | Forward Contract [Member] | Subsequent Event [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Cash paid in settlement of common shares purchase | $ 60 | ||||
Common shares repurchased | 4.3 |
Derivative Financial Instrume49
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reduction of derivative assets | $ 274 | |
Reduction of derivative liabilities | 203 | |
Decrease in valuation due to net credit risk adjustments | 16 | $ 6 |
Decrease in valuation due to liquidity adjustments | 24 | 30 |
Derivative liability at fair value including accrued interest and premium receivable | 684 | $ 659 |
Counterparty [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative liability at fair value including accrued interest and premium receivable | $ 112 |
Derivative Financial Instrume50
Derivative Financial Instruments - Derivative Notional Values (Detail) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 147,100,000,000 | $ 137,900,000,000 |
Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 25,700,000,000 | 24,100,000,000 |
Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 16,500,000,000 | 19,100,000,000 |
Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 104,900,000,000 | 94,700,000,000 |
Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 113,700,000,000 | 108,500,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Cash Flow [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 25,700,000,000 | 24,100,000,000 |
Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 11,700,000,000 | 12,400,000,000 |
Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 76,300,000,000 | 72,000,000,000 |
Floor Income Contracts [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 27,900,000,000 | 21,900,000,000 |
Floor Income Contracts [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 27,900,000,000 | 21,900,000,000 |
Cross-Currency Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 5,100,000,000 | 7,000,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Designated as Hedging Instrument [Member] | Fair Value [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 4,800,000,000 | 6,700,000,000 |
Cross-Currency Interest Rate Swaps [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 300,000,000 | 300,000,000 |
Other [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | 400,000,000 | 500,000,000 |
Other [Member] | Trading [Member] | ||
Derivative [Line Items] | ||
Total Derivative Notional Values | $ 400,000,000 | $ 500,000,000 |
Derivative Financial Instrume51
Derivative Financial Instruments - Derivative Notional Values (Parenthetical) (Detail) - Forward Contract [Member] - USD ($) $ in Millions | Jun. 30, 2018 | May 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Derivative to purchase common shares | $ 60 | |
Interest Rate Swaps [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative to purchase common shares | $ 60 |
Derivative Financial Instrume52
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (40) | $ (25) | $ 8 | $ (41) |
Designated as Hedging Instrument [Member] | Fair Value [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in net income on derivatives | (71) | 18 | (258) | (66) |
Gains (losses) recognized in net income on hedged items | 66 | (38) | 290 | 23 |
Net fair value hedge ineffectiveness gains (losses) | (5) | (20) | 32 | (43) |
Designated as Hedging Instrument [Member] | Fair Value [Member] | Cross-Currency Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in net income on derivatives | (283) | 459 | (207) | 577 |
Gains (losses) recognized in net income on hedged items | 257 | (442) | 128 | (604) |
Net fair value hedge ineffectiveness gains (losses) | (26) | 17 | (79) | (27) |
Gains (losses) on derivative and hedging activities, net | (31) | (3) | (47) | (70) |
Trading [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | (9) | (22) | 55 | 29 |
Trading [Member] | Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | (4) | (3) | 18 | 10 |
Trading [Member] | Cross-Currency Interest Rate Swaps [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | (14) | (6) | 2 | 5 |
Trading [Member] | Floor Income Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | 10 | (5) | 33 | 28 |
Trading [Member] | Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (1) | $ (8) | $ 2 | $ (14) |
Derivative Financial Instrume53
Derivative Financial Instruments - Collateral Held and Pledged (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Collateral held: | ||
Cash (obligation to return cash collateral is recorded in short-term borrowings) | $ 268 | $ 536 |
Securities at fair value — on-balance sheet securitization derivatives (not recorded in financial statements) | 109 | 297 |
Total collateral held | 377 | 833 |
Derivative asset at fair value including accrued interest | 204 | 618 |
Collateral pledged to others: | ||
Cash (right to receive return of cash collateral is recorded in investments) | 217 | 235 |
Total collateral pledged | 217 | 235 |
Derivative liability at fair value including accrued interest and premium receivable | $ 684 | $ 659 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Accrued interest receivable, net | $ 1,945 | $ 1,965 |
Benefit and insurance-related investments | 485 | 481 |
Income tax asset, net current and deferred | 293 | 380 |
Derivatives at fair value | 169 | 438 |
Fixed assets, net | 144 | 156 |
Accounts receivable | 104 | 108 |
Other loans, net | 69 | 59 |
Other | 395 | 438 |
Total | $ 3,604 | $ 4,025 |
Business Combinations, Goodwi55
Business Combinations, Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 2017 | Jul. 31, 2017 | Jun. 30, 2018 | Jul. 31, 2018 | |
Earnest [Member] | ||||
Business Acquisition [Line Items] | ||||
Controlling interest percentage | 95.00% | |||
Payments to acquire business, cash | $ 149 | |||
Business acquisition, effective date of acquisition | Nov. 30, 2017 | |||
Goodwill | $ 89 | |||
Duncan Solutions [Member] | ||||
Business Acquisition [Line Items] | ||||
Controlling interest percentage | 100.00% | |||
Payments to acquire business, cash | $ 86 | |||
Business acquisition, effective date of acquisition | Jul. 31, 2017 | |||
Duncan Solutions [Member] | Subsequent Event [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 39 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Share Repurchases and Issuances (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Average purchase price per share | $ 15.10 | $ 15.04 | ||
Shares repurchased related to employee stock-based compensation plans | 92,369 | 255,875 | 3,557,504 | 1,610,155 |
Average purchase price per share | $ 14.53 | $ 15.70 | $ 13.77 | $ 15.58 |
Common shares issued | 113,171 | 355,802 | 5,134,238 | 3,150,312 |
Common Stock Shares Outstanding [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Common stock repurchased | 10,936,715 | 18,300,007 | ||
Shares repurchased related to employee stock-based compensation plans | 92,369 | 255,875 | 3,557,504 | 1,610,155 |
Common shares issued | 113,171 | 355,802 | 5,134,238 | 3,150,312 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 29, 2018 | May 31, 2018 | |
Class of Stock [Line Items] | ||||||||
Common stock dividend paid | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.32 | $ 0.32 | |||
Cash paid in settlement of common shares purchase | $ 275,000,000 | |||||||
Purchase price of common stock repurchased on open market | $ 165,000,000 | $ 275,000,000 | ||||||
Forward Contract [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Derivative to purchase common shares | $ 60,000,000 | |||||||
Forward Contract [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Cash paid in settlement of common shares purchase | $ 60,000,000 | |||||||
Common shares repurchased | 4,300,000 | |||||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Closing price of common stock | $ 13.03 | |||||||
Authorized common share repurchased program remaining available amount | $ 160,000,000 | $ 160,000,000 | $ 160,000,000 | |||||
Common Stock [Member] | Forward Contract [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Authorized common share repurchased program remaining available amount | $ 100,000,000 | |||||||
Common Stock Shares Outstanding [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares repurchased | 10,936,715 | 18,300,007 | ||||||
Purchase price of common stock repurchased on open market | $ 275,000,000 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income attributable to Navient Corporation | $ 83 | $ 112 | $ 210 | $ 200 |
Denominator: | ||||
Weighted average shares used to compute basic EPS | 265 | 280 | 264 | 284 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, derivative contracts and Employee Stock Purchase Plan (“ESPP”)(1) | 4 | 5 | 5 | 7 |
Dilutive potential common shares | 4 | 5 | 5 | 7 |
Weighted average shares used to compute diluted EPS | 269 | 285 | 269 | 291 |
Basic earnings per common share attributable to Navient Corporation | $ 0.31 | $ 0.40 | $ 0.79 | $ 0.70 |
Diluted earnings per common share attributable to Navient Corporation | $ 0.31 | $ 0.39 | $ 0.78 | $ 0.69 |
Earnings per Common Share - S59
Earnings per Common Share - Schedule of Earnings per Common Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Securities not included in the computation of diluted earnings per share | 10 | 5 | 10 | 5 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale investments: | ||
Available-for-sale investments | $ 2 | $ 2 |
Derivative assets | 200 | 480 |
Derivative liabilities | (767) | (735) |
Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 176 | 392 |
Derivative liabilities | (123) | (189) |
Cross-Currency Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 24 | 88 |
Derivative liabilities | (592) | (454) |
Floor Income Contracts [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (40) | (74) |
Other [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (12) | (18) |
Fair Value Measurements Recurring [Member] | ||
Available-for-sale investments: | ||
Available-for-sale investments | 2 | 2 |
Derivative assets | 200 | 480 |
Total | 202 | 482 |
Derivative liabilities | (767) | (735) |
Total | (767) | (735) |
Fair Value Measurements Recurring [Member] | Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 176 | 392 |
Derivative liabilities | (123) | (189) |
Fair Value Measurements Recurring [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 24 | 88 |
Derivative liabilities | (592) | (454) |
Fair Value Measurements Recurring [Member] | Floor Income Contracts [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (40) | (74) |
Fair Value Measurements Recurring [Member] | Other [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (12) | (18) |
Fair Value Measurements Recurring [Member] | Other [Member] | ||
Available-for-sale investments: | ||
Available-for-sale investments | 2 | 2 |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | ||
Available-for-sale investments: | ||
Available-for-sale investments | 2 | 2 |
Derivative assets | 169 | 388 |
Total | 171 | 390 |
Derivative liabilities | (166) | (262) |
Total | (166) | (262) |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 169 | 388 |
Derivative liabilities | (83) | (144) |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (39) | (44) |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | Floor Income Contracts [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (40) | (74) |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | Other [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | (4) | |
Fair Value Measurements Recurring [Member] | Level 2 [Member] | Other [Member] | ||
Available-for-sale investments: | ||
Available-for-sale investments | 2 | 2 |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 31 | 92 |
Total | 31 | 92 |
Derivative liabilities | (601) | (473) |
Total | (601) | (473) |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 7 | 4 |
Derivative liabilities | (40) | (45) |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Available-for-sale investments: | ||
Derivative assets | 24 | 88 |
Derivative liabilities | (553) | (410) |
Fair Value Measurements Recurring [Member] | Level 3 [Member] | Other [Member] | ||
Available-for-sale investments: | ||
Derivative liabilities | $ (8) | $ (18) |
Fair Value Measurements - Chang
Fair Value Measurements - Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | $ (295) | $ (1,183) | $ (381) | $ (1,302) |
Total gains/(losses): | ||||
Included in earnings | (308) | 415 | (253) | 501 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 33 | 32 | 64 | 65 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (570) | (736) | (570) | (736) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | (275) | 447 | (163) | 505 |
Interest Rate Swaps [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (37) | (42) | (41) | (46) |
Total gains/(losses): | ||||
Included in earnings | 3 | (7) | 6 | (5) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 1 | 1 | 2 | 3 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (33) | (48) | (33) | (48) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | 4 | (6) | 7 | (2) |
Cross-Currency Interest Rate Swaps [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (246) | (1,125) | (322) | (1,243) |
Total gains/(losses): | ||||
Included in earnings | (314) | 430 | (265) | 519 |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 31 | 29 | 58 | 58 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (529) | (666) | (529) | (666) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | (283) | 459 | (180) | 516 |
Other [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance, beginning of period | (12) | (16) | (18) | (13) |
Total gains/(losses): | ||||
Included in earnings | 3 | (8) | 6 | (13) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Settlements | 1 | 2 | 4 | 4 |
Transfers in and/or out of level 3 | 0 | 0 | 0 | 0 |
Balance, end of period | (8) | (22) | (8) | (22) |
Change in mark-to-market gains/(losses) relating to instruments still held at the reporting date | $ 4 | $ (6) | $ 10 | $ (9) |
Fair Value Measurements - Inclu
Fair Value Measurements - Included in Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (308) | $ 415 | $ (253) | $ 501 |
Gain (Losses) on Derivative Instruments [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | (277) | 444 | (195) | 559 |
Interest Expense [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Gains (losses) on derivative and hedging activities, net | $ (31) | $ (29) | $ (58) | $ (58) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Data Used in Recurring Valuations of Level 3 (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Interest Rate Swaps [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ 53 | $ 203 |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (568) | (366) |
Other [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (12) | $ (18) |
Level 3 [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | (570) | |
Level 3 [Member] | Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ (529) | |
Discounted cash flow | Discounted Cash Flow, Constant Prepayment Rate | |
Constant prepayment rate | 4.00% | |
Level 3 [Member] | Other [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ (8) | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative financial instruments, Fair Value | $ (33) | |
Discounted cash flow | Discounted Cash Flow, Constant Prepayment Rate | |
Constant prepayment rate | 6.00% | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Minimum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Bid/ask adjustment to discount rate | 0.08% | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Maximum [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Bid/ask adjustment to discount rate | 0.08% | |
Level 3 [Member] | Prime/LIBOR Basis Swaps [Member] | Interest Rate Swaps [Member] | Weighted Average [Member] | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Bid/ask adjustment to discount rate | 0.08% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total earning assets, Carrying Value | $ 104,547 | $ 110,156 |
Short-term borrowings, Carrying Value | 4,752 | 4,771 |
Long-term borrowings, Carrying Value | 98,690 | 105,012 |
Total | 103,442 | 109,783 |
Total earning assets, Fair Value | 105,779 | 111,726 |
Short-term borrowings, Fair Value | 4,782 | 4,783 |
Long-term borrowings, Fair Value | 98,883 | 104,921 |
Total interest-bearing liabilities, Fair Value | 103,665 | 109,704 |
FFELP Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, Carrying Value | 76,609 | 81,703 |
Loans receivable, Fair Value | 76,761 | 82,271 |
Floor Income Contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (40) | (74) |
Derivative financial instruments, Fair Value | (40) | (74) |
Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | 53 | 203 |
Derivative financial instruments, Fair Value | 53 | 203 |
Cross-Currency Interest Rate Swaps [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (568) | (366) |
Derivative financial instruments, Fair Value | (568) | (366) |
Other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative financial instruments, Carrying Value | (12) | (18) |
Derivative financial instruments, Fair Value | (12) | (18) |
Private Education Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, Carrying Value | 22,568 | 23,419 |
Loans receivable, Fair Value | 23,648 | 24,421 |
Difference [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total earning assets, Fair Value | 1,232 | 1,570 |
Short-term borrowings, Fair Value | (30) | (12) |
Long-term borrowings, Fair Value | (193) | 91 |
Total interest-bearing liabilities, Fair Value | (223) | 79 |
Excess of net asset fair value over carrying value | 1,009 | 1,649 |
Difference [Member] | FFELP Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable, Fair Value | 152 | 568 |
Difference [Member] | Private Education Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans receivable, Fair Value | 1,080 | 1,002 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and investments | 5,370 | 5,034 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and investments | $ 5,370 | $ 5,034 |
Fair Value Measurements - Fai65
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Available-for-sale investments, cost basis | $ 2 | $ 2 |
Available-for-sale investments, fair value | $ 2 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | |||
Total reserves established during year | $ 177,000,000 | $ 177,000,000 | |
Unasserted Claim [Member] | |||
Loss Contingencies [Line Items] | |||
Contingency reserve | $ 40,000,000 | ||
SLM BankCo [Member] | Indemnification Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Reserve for estimated amounts and costs incurred | $ 0 |
Revenue from Contract with Cu67
Revenue from Contract with Customers - Summary of Disaggregation of Revenue from Contracts with Customers (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | $ 84 | $ 177 |
Federal Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 3 | 5 |
Guarantor Agencies [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 15 | 31 |
Other Institutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 3 | 6 |
State and Local Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 23 | 49 |
Tolling Authorities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 16 | 42 |
Hospitals and Other Healthcare Providers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 24 | 44 |
Federal Education Loans [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 19 | 39 |
Federal Education Loans [Member] | Federal Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 1 | 2 |
Federal Education Loans [Member] | Guarantor Agencies [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 15 | 31 |
Federal Education Loans [Member] | Other Institutions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 3 | 6 |
Business Processing [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 65 | 138 |
Business Processing [Member] | Federal Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 2 | 3 |
Business Processing [Member] | State and Local Government [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 23 | 49 |
Business Processing [Member] | Tolling Authorities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 16 | 42 |
Business Processing [Member] | Hospitals and Other Healthcare Providers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 24 | 44 |
Federal Education Loan Asset Recovery Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 19 | 39 |
Federal Education Loan Asset Recovery Services [Member] | Federal Education Loans [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 19 | 39 |
Government Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 41 | 94 |
Government Services [Member] | Business Processing [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 41 | 94 |
Healthcare Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | 24 | 44 |
Healthcare Services [Member] | Business Processing [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total Revenue | $ 24 | $ 44 |
Revenue from Contract with Cu68
Revenue from Contract with Customers - Additional Information (Detail) - USD ($) | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | $ 104,000,000 | $ 108,000,000 | |
ASU 2014-09 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable | 70,000,000 | $ 63,000,000 | |
Contract assets | 0 | ||
Contract liability | $ 0 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)SegmentClient | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable operating segments | Segment | 4 | |
Accounts Receivable | $ 104 | $ 108 |
Total assets | $ 108,949 | 114,991 |
Business Processing [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of clients for business processing services | Client | 600 | |
Total assets | $ 474 | 466 |
Business Processing [Member] | Nonfederal Education Loan [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts Receivable | 11,000 | |
Other Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,400 | $ 2,100 |
Segment Reporting - Asset Infor
Segment Reporting - Asset Information for Loans Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Other | $ 3,604 | $ 4,025 |
Total assets | 108,949 | 114,991 |
Federal Education Loans [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 76,609 | 81,703 |
Cash and investments | 2,732 | 2,821 |
Other | 2,209 | 2,601 |
Total assets | 81,550 | 87,125 |
Consumer Lending [Member] | ||
Segment Reporting Information [Line Items] | ||
Loans, net | 22,568 | 23,419 |
Cash and investments | 803 | 706 |
Other | 1,149 | 1,143 |
Total assets | $ 24,520 | $ 25,268 |
Segment Reporting - Segment Res
Segment Reporting - Segment Results and Reconciliations to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Cash and investments | $ 24 | $ 10 | $ 41 | $ 17 |
Total interest income | 1,227 | 1,070 | 2,399 | 2,085 |
Total interest expense | 929 | 719 | 1,773 | 1,394 |
Net interest income | 298 | 351 | 626 | 691 |
Less: provisions for loan losses | 112 | 105 | 199 | 212 |
Net interest income after provisions for loan losses | 186 | 246 | 427 | 479 |
Other income (loss): | ||||
Servicing revenue | 71 | 70 | 140 | 146 |
Asset recovery and business processing revenue | 99 | 111 | 207 | 210 |
Other income (loss) | (27) | (19) | 9 | (42) |
Losses on debt repurchases | (7) | (8) | ||
Total other income | 136 | 162 | 348 | 314 |
Expenses: | ||||
Direct operating expenses | 129 | 160 | 323 | 322 |
Overhead expenses | 72 | 70 | 153 | 147 |
Total operating expenses | 201 | 230 | 476 | 469 |
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Restructuring/other reorganization expenses | 2 | 9 | ||
Total expenses | 209 | 236 | 501 | 480 |
Income before income tax expense | 113 | 172 | 274 | 313 |
Income tax expense (benefit) | 30 | 60 | 64 | 113 |
Net income (loss) | 83 | 112 | 210 | 200 |
Education Loan Portfolio [Member] | ||||
Interest income: | ||||
Total interest income | 1,202 | 1,054 | 2,356 | 2,058 |
Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 6 | 2 | 10 |
Operating Segments [Member] | ||||
Interest income: | ||||
Cash and investments | 24 | 10 | 41 | 17 |
Total interest income | 1,242 | 1,066 | 2,423 | 2,074 |
Total interest expense | 923 | 723 | 1,774 | 1,397 |
Net interest income | 319 | 343 | 649 | 677 |
Less: provisions for loan losses | 112 | 105 | 199 | 212 |
Net interest income after provisions for loan losses | 207 | 238 | 450 | 465 |
Other income (loss): | ||||
Servicing revenue | 71 | 70 | 140 | 146 |
Asset recovery and business processing revenue | 99 | 111 | 207 | 210 |
Other income (loss) | 3 | 4 | 6 | 10 |
Losses on debt repurchases | (7) | (8) | ||
Total other income | 166 | 185 | 345 | 366 |
Expenses: | ||||
Direct operating expenses | 129 | 160 | 323 | 322 |
Overhead expenses | 72 | 70 | 153 | 147 |
Total operating expenses | 201 | 230 | 476 | 469 |
Restructuring/other reorganization expenses | 2 | 9 | ||
Total expenses | 203 | 230 | 485 | 469 |
Income before income tax expense | 170 | 193 | 310 | 362 |
Income tax expense (benefit) | 39 | 70 | 72 | 132 |
Net income (loss) | 131 | 123 | 238 | 230 |
Operating Segments [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Cash and investments | 12 | 7 | 19 | 12 |
Total interest income | 788 | 677 | 1,528 | 1,310 |
Total interest expense | 622 | 498 | 1,193 | 956 |
Net interest income | 166 | 179 | 335 | 354 |
Less: provisions for loan losses | 40 | 10 | 50 | 22 |
Net interest income after provisions for loan losses | 126 | 169 | 285 | 332 |
Other income (loss): | ||||
Servicing revenue | 68 | 70 | 134 | 143 |
Asset recovery and business processing revenue | 34 | 58 | 70 | 113 |
Other income (loss) | 1 | 1 | ||
Total other income | 102 | 128 | 205 | 257 |
Expenses: | ||||
Direct operating expenses | 36 | 79 | 115 | 168 |
Total operating expenses | 36 | 79 | 115 | 168 |
Total expenses | 36 | 79 | 115 | 168 |
Income before income tax expense | 192 | 218 | 375 | 421 |
Income tax expense (benefit) | 44 | 80 | 86 | 153 |
Net income (loss) | 148 | 138 | 289 | 268 |
Operating Segments [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Cash and investments | 3 | 1 | 6 | 2 |
Total interest income | 445 | 387 | 879 | 761 |
Total interest expense | 252 | 192 | 490 | 379 |
Net interest income | 193 | 195 | 389 | 382 |
Less: provisions for loan losses | 72 | 95 | 149 | 190 |
Net interest income after provisions for loan losses | 121 | 100 | 240 | 192 |
Other income (loss): | ||||
Servicing revenue | 3 | 6 | 3 | |
Total other income | 3 | 6 | 3 | |
Expenses: | ||||
Direct operating expenses | 39 | 37 | 95 | 72 |
Total operating expenses | 39 | 37 | 95 | 72 |
Total expenses | 39 | 37 | 95 | 72 |
Income before income tax expense | 85 | 63 | 151 | 123 |
Income tax expense (benefit) | 19 | 23 | 35 | 45 |
Net income (loss) | 66 | 40 | 116 | 78 |
Operating Segments [Member] | Business Processing [Member] | ||||
Other income (loss): | ||||
Asset recovery and business processing revenue | 65 | 53 | 137 | 97 |
Total other income | 65 | 53 | 137 | 97 |
Expenses: | ||||
Direct operating expenses | 54 | 44 | 113 | 82 |
Total operating expenses | 54 | 44 | 113 | 82 |
Total expenses | 54 | 44 | 113 | 82 |
Income before income tax expense | 11 | 9 | 24 | 15 |
Income tax expense (benefit) | 3 | 3 | 6 | 6 |
Net income (loss) | 8 | 6 | 18 | 9 |
Operating Segments [Member] | Other Segment [Member] | ||||
Interest income: | ||||
Cash and investments | 9 | 2 | 16 | 3 |
Total interest income | 9 | 2 | 16 | 3 |
Total interest expense | 49 | 33 | 91 | 62 |
Net interest income | (40) | (31) | (75) | (59) |
Net interest income after provisions for loan losses | (40) | (31) | (75) | (59) |
Other income (loss): | ||||
Other income (loss) | 3 | 4 | 5 | 9 |
Losses on debt repurchases | (7) | (8) | ||
Total other income | (4) | 4 | (3) | 9 |
Expenses: | ||||
Overhead expenses | 72 | 70 | 153 | 147 |
Total operating expenses | 72 | 70 | 153 | 147 |
Restructuring/other reorganization expenses | 2 | 9 | ||
Total expenses | 74 | 70 | 162 | 147 |
Income before income tax expense | (118) | (97) | (240) | (197) |
Income tax expense (benefit) | (27) | (36) | (55) | (72) |
Net income (loss) | (91) | (61) | (185) | (125) |
Operating Segments [Member] | Education Loan Portfolio [Member] | ||||
Interest income: | ||||
Total interest income | 1,217 | 1,050 | 2,380 | 2,047 |
Operating Segments [Member] | Education Loan Portfolio [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 775 | 664 | 1,507 | 1,288 |
Operating Segments [Member] | Education Loan Portfolio [Member] | Consumer Lending [Member] | ||||
Interest income: | ||||
Total interest income | 442 | 386 | 873 | 759 |
Operating Segments [Member] | Other Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 6 | 2 | 10 |
Operating Segments [Member] | Other Loans [Member] | Federal Education Loans [Member] | ||||
Interest income: | ||||
Total interest income | 1 | 6 | 2 | 10 |
Adjustments [Member] | Reclassifications [Member] | ||||
Interest income: | ||||
Total interest income | 3 | 18 | 11 | 38 |
Total interest expense | 10 | (1) | 4 | 2 |
Net interest income | (7) | 19 | 7 | 36 |
Net interest income after provisions for loan losses | (7) | 19 | 7 | 36 |
Other income (loss): | ||||
Other income (loss) | 7 | (19) | (7) | (36) |
Total other income | 7 | (19) | (7) | (36) |
Adjustments [Member] | Additions (Subtractions) [Member] | ||||
Interest income: | ||||
Total interest income | (18) | (14) | (35) | (27) |
Total interest expense | (4) | (3) | (5) | (5) |
Net interest income | (14) | (11) | (30) | (22) |
Net interest income after provisions for loan losses | (14) | (11) | (30) | (22) |
Other income (loss): | ||||
Other income (loss) | (37) | (4) | 10 | (16) |
Total other income | (37) | (4) | 10 | (16) |
Expenses: | ||||
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Total expenses | 6 | 6 | 16 | 11 |
Income before income tax expense | (57) | (21) | (36) | (49) |
Income tax expense (benefit) | (9) | (10) | (8) | (19) |
Net income (loss) | (48) | (11) | (28) | (30) |
Adjustments [Member] | Total Adjustments [Member] | ||||
Interest income: | ||||
Total interest income | (15) | 4 | (24) | 11 |
Total interest expense | 6 | (4) | (1) | (3) |
Net interest income | (21) | 8 | (23) | 14 |
Net interest income after provisions for loan losses | (21) | 8 | (23) | 14 |
Other income (loss): | ||||
Other income (loss) | (30) | (23) | 3 | (52) |
Total other income | (30) | (23) | 3 | (52) |
Expenses: | ||||
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Total expenses | 6 | 6 | 16 | 11 |
Income before income tax expense | (57) | (21) | (36) | (49) |
Income tax expense (benefit) | (9) | (10) | (8) | (19) |
Net income (loss) | (48) | (11) | (28) | (30) |
Adjustments [Member] | Education Loan Portfolio [Member] | Reclassifications [Member] | ||||
Interest income: | ||||
Total interest income | 3 | 18 | 11 | 38 |
Adjustments [Member] | Education Loan Portfolio [Member] | Additions (Subtractions) [Member] | ||||
Interest income: | ||||
Total interest income | (18) | (14) | (35) | (27) |
Adjustments [Member] | Education Loan Portfolio [Member] | Total Adjustments [Member] | ||||
Interest income: | ||||
Total interest income | $ (15) | $ 4 | $ (24) | $ 11 |
Segment Reporting - Segment R72
Segment Reporting - Segment Result and Reconciliations to GAAP - Core Earnings Adjustments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | $ 186 | $ 246 | $ 427 | $ 479 |
Total other income (loss) | 136 | 162 | 348 | 314 |
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Income tax expense (benefit) | 30 | 60 | 64 | 113 |
Net income attributable to Navient Corporation | 83 | 112 | 210 | 200 |
Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | (21) | 8 | (23) | 14 |
Total other income (loss) | (30) | (23) | 3 | (52) |
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Total Core Earnings adjustments to GAAP | (57) | (21) | (36) | (49) |
Income tax expense (benefit) | (9) | (10) | (8) | (19) |
Net income attributable to Navient Corporation | (48) | (11) | (28) | (30) |
Net Impact of Goodwill and Acquired Intangible Assets [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Goodwill and acquired intangible asset impairment and amortization | 6 | 6 | 16 | 11 |
Total Core Earnings adjustments to GAAP | (6) | (6) | (16) | (11) |
Net Impact of Derivative Accounting [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net interest income (loss) after provisions for loan losses | (21) | 8 | (23) | 14 |
Total other income (loss) | (30) | (23) | 3 | (52) |
Total Core Earnings adjustments to GAAP | $ (51) | $ (15) | $ (20) | $ (38) |
Segment Reporting - Core Earnin
Segment Reporting - Core Earnings Adjustments to GAAP (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Core Earnings adjustments to GAAP: | ||||
Net tax effect | $ (30) | $ (60) | $ (64) | $ (113) |
Net income attributable to Navient Corporation | 83 | 112 | 210 | 200 |
Total Adjustments [Member] | Adjustments [Member] | ||||
Core Earnings adjustments to GAAP: | ||||
Core Earnings adjustments to GAAP | (57) | (21) | (36) | (49) |
Net tax effect | 9 | 10 | 8 | 19 |
Net income attributable to Navient Corporation | (48) | (11) | (28) | (30) |
Net Impact of Goodwill and Acquired Intangible Assets [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Core Earnings adjustments to GAAP: | ||||
Core Earnings adjustments to GAAP | (6) | (6) | (16) | (11) |
Net Impact of Derivative Accounting [Member] | Total Adjustments [Member] | Adjustments [Member] | ||||
Core Earnings adjustments to GAAP: | ||||
Core Earnings adjustments to GAAP | $ (51) | $ (15) | $ (20) | $ (38) |
Segment Reporting - Core Earn74
Segment Reporting - Core Earnings Adjustments to GAAP (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Segment Reporting [Abstract] | |
Amount that will be equal to mark-to-market gain or loss over the life of the contract | $ 0 |