NAVIENT CORP New Standards Disclosure

Recently Issued Accounting Pronouncements

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes – Improvements to Income Tax Disclosures,” which requires companies to disclose additional information in specified categories regarding reconciliation of the effective tax rate to the statutory rate for federal, state, and foreign income taxes. The ASU also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. This guidance is effective for the current fiscal year and has been implemented prospectively.

Income Statement Expense Disaggregation

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures.” This update requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant expense caption presented on the income statement within continuing operations that represent functional or natural expense classifications. This guidance will become effective beginning after December 15, 2026, for annual reporting periods, and for interim reporting periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company continues to assess the impact of the income statement disclosure requirements.

Internal-Use Software

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles – Goodwill and Other – Internal-Use Software – Targeted Improvements to the Accounting for Internal-Use Software.” This update considers different methods of software development and clarifies and expands the requirements for capitalization of software costs. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company continues to assess the impact to our accounting policies and financial statements.

Interim Reporting

In December 2025, the FASB issued ASU No. 2025-11, “Interim Reporting – Narrow Scope Improvements,” which clarifies interim disclosure requirements and the applicability of Topic 270 (Interim Reporting). This guidance will be effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. Upon adoption, the guidance can be applied prospectively or retrospectively. The Company continues to assess the impact of the interim reporting disclosure requirements.