Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the year ended December 31, 2017.



	As of December 31, 2017				As of December 31, 2016
	Level 1		Level 2	Total	Level 1	Level 2	Total
Assets:
Investments (available-for-sale and trading): (a)
Student loan and other asset-backed securities	$	—	76,866	76,866	—	103,780	103,780
Equity securities	3,928		—	3,928	2,694	—	2,694
Debt securities	108		—	108	119	—	119
Total investments (available-for-sale and trading)	4,036		76,866	80,902	2,813	103,780	106,593
Derivative instruments (b)	—		818	818	—	87,531	87,531
Total assets	$	4,036	77,684	81,720	2,813	191,311	194,124
Liabilities:
Derivative instruments (b):	$	—	7,063	7,063	—	77,826	77,826
Total liabilities	$	—	7,063	7,063	—	77,826	77,826

(a)

Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and include investments traded on an active exchange, such as the New York Stock Exchange, and corporate bonds, mortgage-backed securities, U.S. government bonds, and U.S. Treasury securities that trade in active markets. Level 2 investments include student loan asset-backed securities. The fair value for the student loan asset-backed securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk.


(b)	All derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves, forward foreign currency exchange rates, and volatilities from active markets.

When determining the fair value of derivatives, the Company takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty.

Fair Value, by Balance Sheet Grouping

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. During the first quarter of 2016, the Company recognized certain adjustments to the provisional amounts recorded at December 31, 2015 that were needed to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The net impact of these adjustments was an increase to goodwill, and the adjustments had no impact on operating results.



Cash and cash equivalents	$	334
Restricted cash	850
Accounts receivable	1,935
Property and equipment	32,479
Other assets	371
Intangible assets	11,410
Excess cost over fair value of net assets acquired (goodwill)	21,112
Other liabilities	(4,587		)
Bonds and notes payable	(13,904		)
Net assets acquired	50,000
Minority interest	(3,750		)
Total consideration paid by the Company	$	46,250

The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:



	As of December 31, 2017
	Fair value		Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$	23,106,440	21,814,507	—	—	23,106,440
Cash and cash equivalents	66,752		66,752	66,752	—	—
Investments (available-for-sale)	80,902		80,902	4,036	76,866	—
Notes receivable	16,393		16,393	—	16,393	—
Restricted cash	688,193		688,193	688,193	—	—
Restricted cash – due to customers	187,121		187,121	187,121	—	—
Accrued interest receivable	430,385		430,385	—	430,385	—
Derivative instruments	818		818	—	818	—
Financial liabilities:
Bonds and notes payable	21,521,463		21,356,573	—	21,521,463	—
Accrued interest payable	50,039		50,039	—	50,039	—
Due to customers	187,121		187,121	187,121	—	—
Derivative instruments	7,063		7,063	—	7,063	—



	As of December 31, 2016
	Fair value		Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$	25,653,581	24,903,724	—	—	25,653,581
Cash and cash equivalents	69,654		69,654	69,654	—	—
Investments (available-for-sale and trading)	106,593		106,593	2,813	103,780	—
Notes receivable	17,031		17,031	—	17,031	—
Restricted cash	980,961		980,961	980,961	—	—
Restricted cash – due to customers	119,702		119,702	119,702	—	—
Accrued interest receivable	391,264		391,264	—	391,264	—
Derivative instruments	87,531		87,531	—	87,531	—
Financial liabilities:
Bonds and notes payable	24,220,996		24,668,490	—	24,220,996	—
Accrued interest payable	45,677		45,677	—	45,677	—
Due to customers	119,702		119,702	119,702	—	—
Derivative instruments	77,826		77,826	—	77,826	—