XML 164 R45.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Reconciliations of statutory U.S. federal income tax rates to our effective tax rate | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Statutory rate |  | 21.0 | % |  | 21.0 | % |  | 35.0 | %
Tax reform |  | — |  |  | (0.3 | ) |  | 3.1 |
State tax, net of federal benefit |  | 3.9 |  |  | 3.8 |  |  | 2.6 |
Business tax credits |  | (3.5 | ) |  | (0.5 | ) |  | (0.1 | )
Reverse federal impact of indemnification adjustments |  | 0.3 |  |  | 3.5 |  |  | 2.5 |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit |  | (0.1 | ) |  | (15.9 | ) |  | (2.0 | )
Excess tax benefits/deficiencies for employee stock-based compensation, federal and state, net of federal benefit |  | (0.3 | ) |  | (0.6 | ) |  | (1.7 | )
Impact of state rate change on net deferred tax liabilities, net of federal benefit |  | — |  |  | (0.4 | ) |  | 0.6 |
State, valuation allowance adjustments on net operating losses |  | 0.1 |  |  | 0.4 |  |  | 0.2 |
Other, net |  | 0.9 |  |  | 1.9 |  |  | 1.0 |
Effective tax rate |  | 22.3 | % |  | 12.9 | % |  | 41.2 | %
Components of provision for income tax expense (benefit) | Income tax expense consists of:
|  | December 31,
|  | 2019 |  | 2018 |  | 2017
Current provision: |  |  |  |  |  |
Federal |  | $ | 150,800 |  |  | $ | 102,516 |  |  | $ | 248,191 |
State |  | 24,378 |  |  | 32,638 |  |  | 13,092 |
Total current provision |  | 175,178 |  |  | 135,154 |  |  | 261,283 |
Deferred benefit: |  |  |  |  |  |
Federal |  | (8,240 | ) |  | (57,076 | ) |  | (58,124 | )
State |  | (1,474 | ) |  | (6,225 | ) |  | (628 | )
Total deferred benefit |  | (9,714 | ) |  | (63,301 | ) |  | (58,752 | )
Provision for income tax expense |  | $ | 165,464 |  |  | $ | 71,853 |  |  | $ | 202,531 |
Schedule of deferred tax assets and liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below.
|  | December 31,
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |
Loan reserves |  | $ | 109,369 |  |  | $ | 85,100 |
Stock-based compensation plans |  | 10,022 |  |  | 9,312 |
Deferred revenue |  | 1,017 |  |  | 1,081 |
Operating loss carryovers |  | — |  |  | — |
Accrued expenses not currently deductible |  | 12,599 |  |  | 12,896 |
Net unrealized losses |  | 2,124 |  |  | — |
Unrecorded tax benefits |  | 6,049 |  |  | 5,106 |
Market value adjustments on student loans, investments and derivatives |  | — |  |  | 1,460 |
Other |  | 874 |  |  | 953 |
Total deferred tax assets |  | 142,054 |  |  | 115,908 |
Deferred tax liabilities: |  |  |  |
Fixed assets |  | 10,475 |  |  | 7,150 |
Acquired intangible assets |  | 5,453 |  |  | 5,179 |
Market value adjustments on student loans, investments and derivatives |  | 3,175 |  |  | — |
Net unrealized gains |  | — |  |  | 3,436 |
Federal deferred for state receivable |  | 5,368 |  |  | 2,083 |
Student loan premiums and discounts, net |  | 3,398 |  |  | 1,971 |
Other |  | 285 |  |  | 285 |
Total deferred tax liabilities |  | 28,154 |  |  | 20,104 |
Net deferred tax assets |  | $ | 113,900 |  |  | $ | 95,804 |
Summary of changes in unrecognized tax benefits | The following table summarizes changes in unrecognized tax benefits:
|  | December 31,
|  | 2019 |  | 2018 |  | 2017
Unrecognized tax benefits at beginning of year |  | $ | 52,159 |  |  | $ | 131,608 |  |  | $ | 152,581 |
Increases resulting from tax positions taken during a prior period |  | 12,333 |  |  | 4,121 |  |  | 7,482 |
Decreases resulting from tax positions taken during a prior period |  | (851 | ) |  | — |  |  | (7,025 | )
Increases resulting from tax positions taken during the current period |  | 4,572 |  |  | 3,169 |  |  | 1,656 |
Decreases related to settlements with taxing authorities |  | (8,670 | ) |  | (601 | ) |  | (3,594 | )
Reductions related to the lapse of statute of limitations |  | (6,034 | ) |  | (86,138 | ) |  | (19,492 | )
Unrecognized tax benefits at end of year |  | $ | 53,509 |  |  | $ | 52,159 |  |  | $ | 131,608 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=117331294&loc=d3e36027-109320 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration