Bread Financial (BFH) 10-K 13 Feb 25 2024 FY Annual report Financial data

Cover Page

Cover Page - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2024	Feb. 07, 2025	Jun. 30, 2024
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2024
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-15749
Entity Registrant Name	BREAD FINANCIAL HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3095 Loyalty Circle
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BFH
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction Flag	false
Entity Shell Company	false
Entity Public Float			$ 2.2
Entity Common Stock, Shares Outstanding		49,092,356
Documents Incorporated by Reference	Certain information called for by Part III is incorporated by reference to certain sections of the Proxy Statement for the 2025 Annual Meeting of our stockholders, which will be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2024.
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Entity Central Index Key	0001101215
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2024
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Columbus, Ohio

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Interest income
Interest and fees on loans		$ 4,820	$ 4,961	$ 4,615
Interest on cash and investment securities		204	184	69
Total interest income		5,024	5,145	4,684
Interest expense
Interest on deposits		608	541	243
Interest on borrowings		352	338	260
Total interest expense		960	879	503
Net interest income		4,064	4,266	4,181
Non-interest income
Interchange revenue, net of retailer share arrangements		(381)	(335)	(469)
Gain on portfolio sale		11	230	0
Other		144	128	114
Total non-interest income		(226)	23	(355)
Total net interest and non-interest income		3,838	4,289	3,826
Provision for credit losses		1,397	1,229	1,594
Total net interest and non-interest income, after provision for credit losses		2,441	3,060	2,232
Non-interest expenses
Employee compensation and benefits		897	867	779
Card and processing expenses		326	428	359
Information processing and communication		300	301	274
Marketing expenses		147	161	180
Depreciation and amortization		90	116	113
Other		300	219	227
Total non-interest expenses		2,060	2,092	1,932
Income from continuing operations before income taxes		381	968	300
Provision for income taxes		102	231	76
Income from continuing operations		279	737	224
Loss from discontinued operations, net of income taxes	[1]	(2)	(19)	(1)
Net income		$ 277	$ 718	$ 223
Basic income per share (Note 21)
Income from continuing operations (in dollars per share)		$ 5.63	$ 14.79	$ 4.48
Loss from discontinued operations (in dollars per share)		(0.05)	(0.40)	(0.01)
Net income per share (in dollars per share)		5.58	14.39	4.47
Diluted income per share (Note 21)
Income from continuing operations (in dollars per share)		5.54	14.74	4.47
Loss from discontinued operations (in dollars per share)		(0.05)	(0.40)	(0.01)
Net income per share (in dollars per share)		$ 5.49	$ 14.34	$ 4.46
Weighted average common shares outstanding (Note 21)
Basic (in shares)		49.6	49.8	49.9
Diluted (in shares)		50.4	50	50
[1] Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 277	$ 718	$ 223
Other comprehensive (loss) income
Unrealized (loss) gain on available-for-sale debt securities	(4)	2	(25)
Tax benefit	1	0	6
Unrealized (loss) gain on available-for-sale debt securities, net of tax	(3)	2	(19)
Other comprehensive (loss) income, net of tax	(3)	2	(19)
Total comprehensive income, net of tax	$ 274	$ 720	$ 204

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
ASSETS
Cash and cash equivalents	$ 3,679	$ 3,590
Credit card and other loans
Total credit card and other loans (includes loans available to settle obligations of consolidated variable interest entities: 2024, $12,408; 2023, $12,844)	18,896	19,333
Allowance for credit losses	(2,241)	(2,328)
Credit card and other loans, net	16,655	17,005
Investments (Fair value: 2024 and 2023, $217)	266	253
Property and equipment, net	142	167
Goodwill and intangible assets, net	746	762
Other assets	1,403	1,364
Total assets	22,891	23,141
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	13,082	13,620
Debt issued by consolidated variable interest entities	4,558	3,898
Long-term and other debt	999	1,394
Other liabilities	1,201	1,311
Total liabilities	19,840	20,223
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, $0.01 par value; authorized, 200.0 million shares; issued: 2024, 49.1 million shares; 2023, 49.3 million shares	1	1
Additional paid-in capital	2,073	2,169
Retained earnings	999	767
Accumulated other comprehensive loss	(22)	(19)
Total stockholders’ equity	3,051	2,918
Total liabilities and stockholders’ equity	$ 22,891	$ 23,141

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Credit card and loan receivables restricted for securitization investors	$ 12,408	$ 12,844
Investments fair value	$ 217	$ 217
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares (in shares)	200	200
Common stock, issued shares (in shares)	49.1	49.3
Variable Interest Entity, Primary Beneficiay
Credit card and loan receivables restricted for securitization investors	$ 12,408	$ 12,844

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	[1]	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment	[1]	Accumulated Other Comprehensive Loss
Balance (in shares) at Dec. 31, 2021				49.8
Beginning balance at Dec. 31, 2021	$ 2,086			$ 1	$ 2,174	$ (87)			$ (2)
Increase (Decrease) in Stockholders' Equity
Net income	223					223
Other comprehensive (loss) income	(19)								(19)
Stock-based compensation	33				33
Repurchase of common stock (in shares)				(0.2)
Repurchase of common stock	(12)				(12)
Dividends and dividend equivalent rights declared	(43)					(43)
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)				0.3
Issuance of shares to employees, net of shares withheld for employee taxes	(3)				(3)
Balance (in shares) at Dec. 31, 2022				49.9
Ending balance at Dec. 31, 2022	2,265			$ 1	2,192	93			(21)
Increase (Decrease) in Stockholders' Equity
Net income	718					718
Other comprehensive (loss) income	2								2
Stock-based compensation	44				44
Capped call transactions for convertible senior notes due 2028, net of tax	(30)				(30)
Repurchase of common stock (in shares)				(0.9)
Repurchase of common stock	(35)				(35)
Dividends and dividend equivalent rights declared	(44)					(44)
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)				0.3
Issuance of shares to employees, net of shares withheld for employee taxes	(2)				(2)
Balance (in shares) at Dec. 31, 2023				49.3
Ending balance at Dec. 31, 2023	2,918	$ 0		$ 1	2,169	767	$ (1)		(19)
Increase (Decrease) in Stockholders' Equity
Net income	277					277
Other comprehensive (loss) income	(3)								(3)
Stock-based compensation	$ 54				54
Repurchase of common stock (in shares)	(1)			(1)
Repurchase of common stock	$ (55)				(55)
Repurchases of Convertible Notes	(88)				(88)
Dividends and dividend equivalent rights declared	(44)					(44)
Issuance of shares to employees, net of shares withheld for employee taxes (in shares)				0.8
Issuance of shares to employees, net of shares withheld for employee taxes	(7)				(7)
Balance (in shares) at Dec. 31, 2024				49.1
Ending balance at Dec. 31, 2024	$ 3,051			$ 1	$ 2,073	$ 999			$ (22)
[1] Represents the cumulative effect, net of tax, of adopting the proportional amortization method of accounting for our tax credit investment. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements.

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.84	$ 0.84	$ 0.84

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 277	$ 718	$ 223
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	1,397	1,229	1,594
Depreciation and amortization	90	116	113
Deferred income taxes	(85)	(68)	(245)
Non-cash stock compensation	54	44	33
Amortization of deferred financing costs	21	26	24
Amortization of deferred origination costs	92	92	86
Gain on portfolio sale	(11)	(230)	0
Loss on debt extinguishment and repurchased Convertible Notes	117	7	0
Change in other operating assets and liabilities
Change in other assets	42	28	(134)
Change in other liabilities	(109)	0	87
Other	(26)	25	67
Net cash provided by operating activities	1,859	1,987	1,848
CASH FLOWS FROM INVESTING ACTIVITIES
Change in credit card and other loans	(840)	(1,154)	(3,222)
Proceeds from sale of credit card loan portfolios	101	2,499	0
Purchases of credit card loan portfolios	(377)	(473)	(1,804)
Purchases of investments	(31)	(50)	(43)
Maturities of investments	14	14	30
Other, including capital expenditures	(36)	(48)	(72)
Net cash (used in) provided by investing activities	(1,169)	788	(5,111)
CASH FLOWS FROM FINANCING ACTIVITIES
Unsecured borrowings under debt agreements	300	1,401	218
Repayments/maturities of unsecured borrowings under debt agreements	(894)	(1,882)	(319)
Debt issued by consolidated variable interest entities	2,390	2,592	4,248
Repayments/maturities of debt issued by consolidated variable interest entities	(1,727)	(4,807)	(3,587)
Net (decrease) increase in deposits	(541)	(209)	2,778
Payment of deferred financing costs	(15)	(63)	(13)
Payment of capped call transactions	0	(39)	0
Dividends paid	(43)	(42)	(43)
Repurchase of common stock	(55)	(35)	(12)
Other	(7)	(2)	(3)
Net cash (used in) provided by financing activities	(592)	(3,086)	3,267
Change in cash, cash equivalents and restricted cash	98	(311)	4
Cash, cash equivalents and restricted cash at beginning of period	3,616	3,927	3,923
Cash, cash equivalents and restricted cash at end of period	3,714	3,616	3,927
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for interest	922	861	466
Cash paid during the year for income taxes, net	227	292	338
Cash and cash equivalents reconciliation
Cash and cash equivalents	3,679	3,590	3,891
Restricted cash included within Other Assets	35	26	36
Total cash, cash equivalents and restricted cash	$ 3,714	$ 3,616	$ 3,927

DESCRIPTION OF BUSINESS, BASIS

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF THE BUSINESS We are a tech-forward financial services company that provides simple, personalized payment, lending, and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers. Our partner base consists of large consumer-based businesses, including well-known brands such as (alphabetically) AAA, Academy Sports + Outdoors, Caesars, Dell Technologies, Hard Rock International, the NFL, Saks Fifth Avenue, Signet, Ulta and Victoria’s Secret, as well as small- and medium-sized businesses (SMBs). Our partner base is well diversified across a broad range of industries and retail verticals, including travel and entertainment, health and beauty, jewelry, sporting goods, home goods, technology and electronics and the industry in which we first began, specialty apparel. We believe our comprehensive suite of payment, lending and saving solutions, along with our related marketing and data and analytics, allows us to offer products relevant across all customer segments (Gen Z, Millennial, Gen X and Baby Boomers). The breadth and quality of our product and service offerings, coupled with our customer-centric approach, have enabled us to establish and maintain long-standing partner relationships. We operate our business through a single reportable segment, with our primary source of revenue being from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners. Throughout this report, unless stated or the context implies otherwise, the terms “Bread Financial”, “BFH”, the “Company”, “we”, “our” or “us” refer to Bread Financial Holdings, Inc. and its subsidiaries on a consolidated basis. References to “Parent Company” refer to Bread Financial Holdings, Inc. on a parent-only standalone basis. In addition, in this report we may refer to the retailers and other companies with whom we do business as our “partners”, “brand partners”, or “clients”, provided that the use of the term “partner”, “partnering” or any similar term does not mean or imply a formal legal partnership, and is not meant in any way to alter the terms of Bread Financial’s relationship with any third parties. We offer our credit products through our insured depository institution subsidiaries, Comenity Bank and Comenity Capital Bank, which together are referred to herein as the “Banks”. BASIS OF PRESENTATION These audited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The audited Consolidated Financial Statements also include amounts that relate to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. Such amounts have been classified within Discontinued operations and primarily relate to the after-tax impact of contractual indemnification and tax-related matters. For additional information about our previously disclosed discontinued operations please refer to Note 22, “Discontinued Operations and Bank Holding Company Financial Presentation” to the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. SIGNIFICANT ACCOUNTING POLICIES We present our accounting policies within the Notes to the audited Consolidated Financial Statements to which they relate; the table below lists such accounting policies and the related Notes. The remaining significant accounting policies applied are included following the table. Significant Accounting Policy Note Number Note Title Credit Card and Other Loans Note 2 Credit Card and Other Loans Allowance for Credit Losses Note 3 Allowance for Credit Losses Transfers of Financial Assets Note 4 Securitizations Investments Note 5 Investments Goodwill Note 6 Goodwill and Intangible Assets, Net Intangible Assets, Net Note 6 Goodwill and Intangible Assets, Net Leases Note 8 Leases Derivatives Note 12 Derivatives and Hedging Activities Stock Compensation Expense Note 19 Stockholders' Equity Income Taxes Note 20 Income Taxes Earnings Per Share Note 21 Earnings Per Share Principles of Consolidation The accompanying audited Consolidated Financial Statements include the accounts of BFH and all subsidiaries in which we have a controlling financial interest. For voting interest entities, a controlling financial interest is determined when we are able to exercise control over the operating and financial decisions of the investee. For variable interest entities (VIEs), which are themselves determined based on the amount and characteristics of the equity in the entity, we have a controlling financial interest when we are determined to be the primary beneficiary. The primary beneficiary is the party having both the power to exercise control over the activities that most significantly impact the VIE’s financial performance, as well as the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. We are the primary beneficiary of our master securitization trusts and therefore consolidate these securitization trusts within our audited Consolidated Financial Statements. In cases where we do not have a controlling financial interest, but we are able to exert significant influence over the operating and financial decisions of the entity, we account for such investments under the equity method. All intercompany transactions have been eliminated. Segment Reporting We operate as a single reportable segment, where we manage our business and assess financial performance on a consolidated basis. Our single reportable segment's primary source of revenue is from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners. Our primary expense is Provision for credit losses driven by Net principal losses from our various credit card and other loan products. Our key metrics include the growth in and yield on our credit card and other loan portfolios, Net interest margin, operating leverage and Efficiency ratio, our various capital ratios, and credit-related ratios such as our Delinquency rate, Net principal loss rate and Reserve rate. Our Chief Operating Decision Maker (CODM) regularly receives and reviews consolidated operating results and uses our key metrics to evaluate the performance of the Company, focusing primarily on Income from continuing operations before income taxes from the Consolidated Statements of Income, to make decisions regarding the allocation of resources and assessment of performance. The function of CODM is performed by our President and Chief Executive Officer. Amounts Based on Estimates and Judgments The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments about future events that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the audited Consolidated Financial Statements, as well as the reported amounts of income and expenses during the reporting periods. The most significant of those estimates and judgments relate to our Allowance for credit losses, Provision for income taxes and Goodwill; actual results could differ. Consolidated Statements of Income Our primary source of revenue is from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners. The following describes our recognition policies across the various sources of revenue we earn. Interest and fees on loans : Represents revenue earned on customer accounts owned by us, and is recognized in the period earned in accordance with the contractual provisions of the credit agreements. Interest and fees continue to accrue on all accounts, except in limited circumstances, until the account balance and all related interest and fees are paid or charged-off, which happens in the month during which an account becomes 180 days past due for credit card loans or 120 days past due for other loans, which consist primarily of our pay-over-time products, which include installment loans and “split-pay” offerings. Charge-offs for unpaid interest and fees, as well as any adjustments to the Allowance for credit losses associated with unpaid interest and fees, are recorded as a reduction of Interest and fees on loans. Direct loan origination costs on Credit card and other loans are deferred and amortized on a straight-line basis over a one-year period for credit card loans, or for other loans, over the life of the loan; and are recorded as a reduction of Interest and fees on loans. As of December 31, 2024 and 2023, the remaining unamortized deferred direct loan origination costs were $45 million and $60 million, respectively, and included in Total credit card and other loans. Interest on cash and investment securities: Represents revenue earned on cash and cash equivalents as well as investments in debt securities, and is recognized in the period earned. Interchange revenue, net of retailer share arrangements: Represents revenue earned from merchants, including our brand partners, and cardholders from processing and servicing accounts, and is recognized as such services are performed. Revenue earned from merchants, including our brand partners, primarily consists of merchant and interchange fees, which are transaction fees charged to the merchant for the processing of credit card transactions and are recognized at the time the cardholder transaction occurs. Costs of cardholder reward arrangements are recognized when the rewards are earned by the cardholders and are generally classified as a reduction of revenue with the related liability included in Other liabilities on the Consolidated Balance Sheets. Our credit card program agreements may also provide for royalty payments, or retailer share arrangements, to our brand partners based on purchase volume or if certain contractual incentives are met, such as if the economic performance of the program exceeds a contractually defined threshold, or for new accounts acquired. These amounts are recorded as a reduction of revenue in the period incurred. Other non-interest income: Represents ancillary revenues earned from cardholders, consisting primarily of monthly fees from the purchase of certain payment protection products, which are recognized based on the average cardholder account balance over time and can be cancelled at any point by the cardholder, as well as gains or losses on the sales of loan portfolios, and losses from our equity method investment in Loyalty Ventures Inc. (LVI). Contract costs: We recognize as an asset contract costs, such as up-front payments made pursuant to contractual agreements with brand partners. Such costs are deferred and recognized on a straight-line basis over the term of the related agreement. Depending on the nature of the contract costs, the amortization is recorded as a reduction to Non-interest income, or as a charge to Non-interest expenses, in the Consolidated Statements of Income. Amortization of contract costs recorded as a reduction of Interchange revenue, net of retailer share arrangements, was $51 million, $59 million and $72 million for the years ended December 31, 2024, 2023 and 2022, respectively; amortization of contract costs recorded across various Non-interest expense categories totaled $12 million in each of those same years. As of December 31, 2024 and 2023, the remaining unamortized contract costs were $228 million and $285 million, respectively, and are included in Other assets on the Consolidated Balance Sheets. We perform an impairment assessment when events or changes in circumstances indicate that the carrying amount of our contract costs may not be recoverable. No impairment charges were recognized during either of the years ended December 31, 2024 or 2022. However, for the year ended December 31, 2023 we recognized a $7 million impairment charge in Other non-interest expenses in our Consolidated Statements of Income for certain of our deferred contract costs. Interest expense: Represents interest incurred primarily to fund Credit card and other loans, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided between Interest on deposits, which relates to interest expense on Deposits taken from customers, and Interest on borrowings, which relates to interest expense on our Long-term and other debt. Card and processing expenses: Primarily represents costs incurred in relation to customer service activities, including embossing, and postage and mailing, as well as fraud and credit bureau inquiries. These costs are expensed as incurred. Information processing and communication expenses: Represents costs incurred in relation to data processing, and software license and maintenance charges. These costs are expensed as incurred. Marketing expenses: Represents costs incurred in campaign development and initial placement of advertising, which are expensed in the period in which the advertising first takes place. Other marketing expenses are expensed as incurred. Consolidated Balance Sheets Cash and cash equivalents: Includes cash and due from banks, interest-bearing cash balances such as those invested in money market funds, as well as other highly liquid short-term investments with an original maturity of three months or less, along with restricted cash. As of December 31, 2024 and 2023, respectively, cash and due from banks was $330 million and $410 million, interest-bearing cash balances were $3.1 billion and $2.9 billion, and short-term investments were $272 million and $250 million. Restricted cash primarily includes cash restricted for principal and interest repayments of debt issued by our consolidated VIEs, as well as other restricted amounts including cash pledged to collateralize our derivative contracts. Restricted cash is recorded in Other assets on the Consolidated Balance Sheets and totaled $35 million and $26 million as of December 31, 2024 and 2023, respectively. Property and equipment : Furniture, equipment, buildings and leasehold improvements are carried at cost less accumulated depreciation, and depreciation is recognized on a straight-line basis. Costs incurred during construction are capitalized; depreciation begins once the asset is placed in service and is also recognized on a straight-line basis. Our furniture and equipment is depreciated over the estimated useful lives of the assets, which range from less than one year to 10 years, while leasehold improvements are depreciated over the lesser of the remaining terms of the respective leases, or the useful lives of the improvements, and range from less than one year to 20 years. Depreciation expense, including purchased software, totaled $20 million, $19 million and $19 million for the years ended December 31, 2024, 2023 and 2022, respectively. Costs associated with the acquisition or development of internal-use software are also capitalized and recorded in Property and equipment. Once the internal-use software is ready for its intended use, the cost is amortized on a straight-line basis over the software’s estimated useful life. As of December 31, 2024, our internal-use software has estimated useful lives ranging from one year to 10 years. As of December 31, 2024 and 2023, the net amount of unamortized capitalized internal-use software costs included in Property and equipment on the Consolidated Balance Sheets was $71 million and $78 million, respectively. Amortization expense on capitalized internal-use software costs totaled $35 million, $60 million and $68 million for the years ended December 31, 2024, 2023 and 2022, respectively. We review long-lived assets and asset groups for impairment whenever events or circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. No impairment was recognized during the years ended December 31, 2024, 2023 and 2022. CONCENTRATIONS We depend on a limited number of large partner relationships for a significant portion of our revenue. As of and for the year ended December 31, 2024, our five largest credit card programs (based on Total net interest and non-interest income) accounted for approximately 48% of our Total net interest and non-interest income excluding the gain on sale and 38% of our End-of-period credit card and other loans. In particular, our programs with (alphabetically) Signet Jewelers, Ulta Beauty and Victoria’s Secret & Co. and its retail affiliates, each accounted for 10% or more of our Total net interest and non-interest income for the year ended December 31, 2024. A decrease in business from, or the loss of, any of our significant partners for any reason, could have a material adverse effect on our business. RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS Accounting Standards Recently Adopted Standard Guidance Timing and Financial Statement Impact Investments – Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Expands the election to apply the proportional amortization method of accounting to tax credit investments beyond low-income-housing tax credit investments, when certain conditions are met. Adopted under the modified retrospective method on January 1, 2024, which resulted in an insignificant decrease to retained earnings. Adoption did not have a significant impact on our results of operations, financial position, regulatory risk-based capital, or on our operational processes, controls and governance in support of the new guidance. Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023 Requires interim and annual disclosure of significant segment expense categories and amounts that are regularly provided to the CODM, as well as disclosure of the aggregate amount and description of other segment items beyond significant segment expenses. Adopted effective with this report. Adoption did not significantly impact our disclosures for our single reportable segment, our financial reporting, or our operational processes, controls, and governance in support of the new guidance. Accounting Standards Recently Issued but Not Yet Adopted Standard Guidance Timing and Financial Statement Impact Income Taxes: Improvements to Income Tax Disclosures Issued December 2023 Requires greater disaggregation of rate reconciliation and income taxes paid information, as well as other changes intended to enhance the transparency and decision-usefulness of income tax disclosures. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2025. Early adoption is permitted, although we did not early adopt. Adoption will require enhancements to our income tax disclosures but is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance. Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November 2024 Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. Effective January 1, 2026. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting as the new guidance aligns with our recent accounting for the repurchases of certain of our Convertible Senior Notes due 2028. Additionally, adoption is not expected to have a significant impact on our operational processes, controls and governance in support of the new guidance. Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November 2024 Requires disaggregated disclosure of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories in disclosures within the notes to the Consolidated Financial Statements. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.

CREDIT CARD AND OTHER LOANS

CREDIT CARD AND OTHER LOANS	12 Months Ended
	Dec. 31, 2024
Receivables [Abstract]
CREDIT CARD AND OTHER LOANS	CREDIT CARD AND OTHER LOANS Our payment and lending solutions result in the origination of Credit card and other loans, which are recorded at the time a borrower enters into a point-of-sale transaction with a merchant. Credit card loans represent revolving lines of credit and have a range of terms that include credit limits, interest rates and fees, which can be revised over time based on new information about the cardholder, in accordance with applicable regulations and the governing terms and conditions. Cardholders choosing to make a payment of less than the full balance due, instead of paying in full, are subject to finance charges and are required to make monthly payments based on pre-established amounts. Other loans, which consist primarily of our pay-over-time products, which include installment loans and “split-pay” offerings, have a range of fixed terms such as interest rates, fees and repayment periods, and borrowers are required to make pre-established monthly payments over the term of the loan in accordance with the applicable terms and conditions. Credit card and other loans include principal and any related accrued interest and fees and are presented on the Consolidated Balance Sheets net of the Allowance for credit losses. We continue to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off. We generally classify our Credit card and other loans as held for investment. We sell a majority of our credit card loans originated by Comenity Bank (CB) and by Comenity Capital Bank (CCB), to certain of our master securitization trusts (the Trusts), which are consolidated VIEs, and therefore these loans are restricted for securitization investors. All new originations of Credit card and other loans are determined to be held for investment at origination because we have the intent and ability to hold them for the foreseeable future. In determining what constitutes the foreseeable future, we consider the average life and homogenous nature of our Credit card and other loans. In assessing whether our Credit card and other loans continue to be held for investment, we also consider capital levels and scheduled maturities of funding instruments used. The assertion regarding the intent and ability to hold Credit card and other loans for the foreseeable future can be made with a high degree of certainty given the maturity distribution of our direct-to-consumer (DTC or retail) deposits and other funding instruments; the demonstrated ability to replace maturing time-based deposits and other borrowings with new deposits or borrowings; and historic payment activity on Credit card and other loans. Due to the homogenous nature of our credit card loans, amounts are classified as held for investment on a brand partner portfolio basis. From time to time certain credit card loans are classified as held for sale, as determined on a brand partner portfolio basis. We carry held for sale loans at the lower of aggregate cost or fair value and continue to recognize finance charges on an accrual basis. Cash flows associated with Credit card and other loans originated or purchased for investment are classified as Cash flows from investing activities, regardless of any subsequent change in intent and ability. The following table provides Credit card and other loans, as of December 31: 2024 2023 (Millions) Credit card loans $ 18,586 $ 18,999 Other loans 310 334 Total credit card and other loans (1)(2) 18,896 19,333 Less: Allowance for credit losses (2,241) (2,328) Credit card and other loans, net $ 16,655 $ 17,005 __________________________________ (1) Includes $12.4 billion and $12.8 billion of Credit card and other loans available to settle obligations of consolidated VIEs as of December 31, 2024 and 2023, respectively. (2) Includes $378 million and $371 million of accrued interest and fees that have not yet been billed to cardholders as of December 31, 2024 and 2023, respectively. Credit Card and Other Loans Aging The following table provides the delinquency trends of our Credit card and other loans portfolio, based on the amortized cost, as of the dates presented: Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1) 31 to 60 Days Past Due 61 to 90 Days Past Due 91 or more Days Past Due Total Total Total (Millions) December 31, 2024 $ 369 $ 288 $ 730 $ 1,387 $ 17,105 $ 18,492 December 31, 2023 $ 422 $ 323 $ 809 $ 1,554 $ 17,373 $ 18,927 ______________________________ (1) Other loans delinquencies have been included with credit card loan delinquencies in the table above, as amounts were insignificant as of each period presented. As permitted by GAAP, the primary difference between the amortized cost basis included in the table above and the carrying value of our Credit card and other loans relates to the exclusion of unbilled finance charges and fees from the amortized cost basis. As of December 31, 2024 and 2023, accrued interest and fees that have not yet been billed to cardholders were $378 million and $371 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets. From time to time we may re-age cardholders’ accounts, with the intent of assisting delinquent cardholders who have experienced financial difficulties but who demonstrate both an ability and willingness to repay the amounts due, this practice affects credit card loan delinquencies and principal losses. Accounts meeting specific defined criteria are re-aged when the cardholder makes one or more consecutive payments aggregating to a certain pre-defined amount of their account balance. Upon re-aging, the outstanding balance of a delinquent account is returned to current status. Our re-aged accounts as a percentage of Total credit card and other loans represented 4.1%, 2.6% and 1.4%, for the years ended December 31, 2024, 2023, and 2022 respectively. Our re-aging practices comply with regulatory guidelines. Credit Quality Indicators for Our Credit Card and Other Loans Given the nature of our business, the credit quality of our assets, in particular our Credit card and other loans, is a key determinant underlying our ongoing financial performance and overall financial condition. When it comes to our Credit card and other loans portfolio, we closely monitor Delinquency rates and Net principal loss rates, which reflect, among other factors, our underwriting, the inherent credit risk in our portfolio and the success of our collection and recovery efforts. These rates also reflect, more broadly, the general macroeconomic conditions, including the compounding effect of persistent inflation relative to wage growth, and higher interest rates. Our Delinquency and Net principal loss rates are also impacted by the size of our Credit card and other loans portfolio, which serves as the denominator in the calculation of these rates. Accordingly, changes in the size of our portfolio (whether due to credit tightening, acquisitions or dispositions of portfolios or otherwise) may cause movements in our Delinquency and Net principal loss rates that are not necessarily indicative of the underlying credit quality of the overall portfolio. Delinquencies: An account is contractually delinquent if we do not receive the minimum payment due by the specified due date. Our policy is to continue to accrue interest and fee income on all accounts, except in limited circumstances, until the balance and all related interest and fees are paid or charged-off. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent; based upon the level of risk indicated, a collection strategy is deployed. If after exhausting all in-house collection efforts we are unable to collect on the account, we may engage collection agencies or outside attorneys to continue those efforts, or sell the charged-off balances. The Delinquency rate is calculated by dividing outstanding principal balances that are contractually delinquent (i.e., principal balances greater than 30 days past due) as of the end of the period, by the outstanding principal amount of Credit card and other loans as of the same period-end. As of December 31, 2024 and 2023, our Delinquency rates were 5.9% and 6.5%, respectively. Net Principal Losses: Our net principal losses include the principal amount of losses that are deemed uncollectible, less recoveries, and exclude charged-off interest, fees and third-party fraud losses (including synthetic fraud). Charged-off interest and fees reduce Interest and fees on loans, while third-party fraud losses are recorded in Card and processing expenses. Our credit card loans, including unpaid interest and fees, are generally charged-off in the month during which an account becomes 180 days past due. Our pay-over-time products, which include installment loans and “split-pay” offerings, including unpaid interest, are generally charged-off when a loan becomes 120 days past due. However, in the case of a customer bankruptcy or death, Credit card and other loans, including unpaid interest and fees, as applicable, are charged-off 60 days after receipt of the notification of the bankruptcy or death, but in any case no later than 180 days past due for credit card loans and 120 days past due for installment loans and “split-pay” offerings. We record the actual losses for unpaid interest and fees as a reduction to Interest and fees on loans, which were $1,027 million, $954 million and $651 million for the years ended December 31, 2024, 2023 and 2022, respectively. The Net principal loss rate is calculated by dividing net principal losses for the period by the Average credit card and other loans for the same period. Beginning in January 2024, we revised the calculation of Average credit card and other loans to more closely align with industry practice by incorporating an average daily balance. Prior to 2024, Average credit card and other loans represent the average balance of the loans at the beginning and end of each month, averaged over the periods indicated. For the years ended December 31, 2024 and 2023, our Net principal loss rates were 8.2% and 7.5%, respectively. Overall Credit Quality: As part of our credit risk management activities for our credit card loans portfolio, we assess overall credit quality by reviewing information from credit bureaus and other sources relating to our cardholders’ broader credit performance. We utilize VantageScore (Vantage) credit scores to assist in our assessment of credit quality. Vantage credit scores are obtained at origination of the account and are refreshed monthly thereafter to assist in predicting customer behavior. We categorize these Vantage credit scores into the following three credit score categories: (i) 661 or higher, which are considered the strongest credits and therefore have the lowest credit risk; (ii) 601 to 660, considered to have moderate credit risk; and (iii) 600 or less, which are considered weaker credits and therefore have the highest credit risk. In certain limited circumstances there are customer accounts for which a Vantage score is not available and we use alternative sources to assess credit risk and predict behavior. The table below excludes less than 0.1% of the total credit card loans balance as of both December 31, 2024 and 2023, representing those customer accounts for which a Vantage credit score is not available. The following table reflects the distribution of credit card loans by Vantage score as of December 31: Vantage 2024 2023 661 or 601 to 600 or 661 or 601 to 600 or Credit card loans 58 % 27 % 15 % 57 % 27 % 16 % As part of our credit risk management activities for our Other loans portfolio, we also assess overall credit quality by reviewing information from credit bureaus. We have historically utilized Fair Isaac Corporation (FICO) credit scores to assist in our assessment of the credit quality for our Other loans portfolio, but in early 2024 we completed a transition to Vantage scoring. The scoring scale produced by both FICO and Vantage is similar in that scores of 600 or less are considered weaker scores and as per our categorization method would have the highest credit risk. The amortized cost basis of Other loans totaled $298 million and $317 million as of December 31, 2024 and 2023, respectively. As of December 31, 2024, approximately 84% of these loans were originated with customers with scores of 661 or above, and correspondingly approximately 16% of these loans were originated with customers with scores below 661. Similarly, as of December 31, 2023, approximately 82% and 18% of these loans were originated with customers with FICO scores of 661 or above, and below 661, respectively. Modified Credit Card Loans Consumer Relief Programs As part of our collections strategy, we may offer temporary and short term programs in order to improve the likelihood of collections and meet the needs of our customers. For example, as a result of hurricanes Helene and Milton in 2024 we froze delinquency progression for cardholders in Federal Emergency Management Agency identified impact zones for one billing cycle. Our modifications, for customers who have requested assistance and meet certain qualifying requirements, come in the form of reduced payment requirements, interest rate reductions and late fee waivers. We do not offer programs involving the forgiveness of principal. These temporary loan modifications may assist in cases where we believe the customer will recover from the short-term hardship and resume scheduled payments. Under these consumer relief programs, those accounts receiving relief may not advance to the next delinquency cycle, including charge-off, in the same time frame that would have occurred had the relief not been granted. We evaluate our consumer relief programs to determine if they represent a more than insignificant delay in payment granted to borrowers experiencing financial difficulty, in which case they would then be considered a Loan Modification. Loans in these short term programs that are determined to be Loan Modifications, will be included as such in the disclosure below. Credit Card Loans – Modifications for Borrowers Experiencing Financial Difficulty (Loan Modifications) In instances where cardholders are experiencing financial difficulty, we may modify our credit card loans with the intention of minimizing losses and improving collectability, while providing cardholders with financial relief; such credit card loans are classified as Loan Modifications, exclusive of the temporary, short-term consumer relief programs described above. Loan Modifications include concessions consisting primarily of a reduced minimum payment, late fee waiver, and/or an interest rate reduction. The majority of concessions remain in place for a period no longer than 12 months; however, for certain modifications the concessions remain in place through the payoff of the credit card loans if the cardholder complies with the terms of the program. Loan Modification concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments, and the cardholder’s ability to make future purchases is either limited, or suspended until the cardholder successfully exits from the modification program. In accordance with the terms of our workout programs, the credit agreement reverts back to its original contractual terms (including the contractual interest rate) when the customer exits the program, which is either when all payments have been made in accordance with the program, or when the customer defaults out of the program. Loan Modifications are collectively evaluated for impairment on a pooled basis in measuring the appropriate Allowance for credit losses. The following table provides information relating to credit card loans to borrowers experiencing financial difficulty that were granted a concession under a Loan Modification program during the years ended December 31: 2024 2023 Account Balances (1) % of Total Credit Card Loans Weighted Average Interest Rate Reduction (% points) Account Balances (1) % of Total Credit Card Loans Weighted Average Interest Rate Reduction (% points) (Millions, except percentages) Credit card loans $ 303 1.7 % 22.0 % $ 269 1.4 % 19.2 % __________________________________ (1) Represents the outstanding balances as of December 31, 2024 and 2023, respectively, of all Loan Modifications undertaken in the past twelve months, for credit card loans that remain in modification programs on December 31, 2024 and 2023, respectively. The outstanding balances include principal, accrued interest and fees. Interest income on these impaired credit card loans is accounted for in the same manner as non-impaired credit card loans, and cash collections are allocated according to the same payment hierarchy methodology applied for credit card loans not in Loan Modification programs. The following table provides the performance of our credit card loans that were modified within the 12 months prior to the dates presented and remain in a Loan Modification program as of the dates presented: Aging Analysis of Delinquent Amortized Cost Loan Modifications – Credit Card Loans 31 to 60 Days Past Due 61 to 90 Days Past Due 91 or more Days Past Due Total Total Total (Millions) December 31, 2024 $ 21 $ 18 $ 22 $ 61 $ 242 $ 303 December 31, 2023 $ 17 $ 16 $ 22 $ 55 $ 214 $ 269 The following table provides additional information regarding credit card Loan Modifications that have subsequently defaulted within 12 months of their modification dates for the years ended December 31; the probability of default is factored into the Allowance for credit losses: 2024 2023 Number of Outstanding Number of Outstanding (Millions, except for Number of modifications) Loan Modifications that subsequently defaulted 15,663 $ 29 14,196 $ 23 Unfunded Lending Commitments We manage potential credit risk in unfunded lending commitments by reviewing each potential customer’s credit application and evaluating the applicant’s financial history and ability and perceived willingness to repay. Credit card loans are made primarily on an unsecured basis, and our Cardholders reside throughout the U.S. and are not significantly concentrated in any one geographic area. We manage our potential risk in credit commitments by limiting the total amount of credit, both by individual customer and across our credit card loan portfolio, by monitoring the size and maturity of our loan portfolio and applying consistent risk-based underwriting standards reflective of current and anticipated macroeconomic conditions. We have the unilateral ability to cancel or reduce unused credit card lines at any time. Unused credit card lines available to cardholders totaled approximately $103 billion and $113 billion as of December 31, 2024 and 2023, respectively. While this amount represented the total available unused credit card lines, we have not experienced and do not anticipate that all cardholders will access their entire available line at any given point in time. Portfolio Sales As of December 31, 2024 and 2023, there were no credit card loans held for sale. In late April 2024 we sold a credit card loan portfolio for cash consideration of $102 million. We recognized a gain on sale in April 2024 that was subsequently adjusted during the second half of 2024 to recognize an incremental amount due to us under the purchase and sale agreement. We previously announced the non-renewal of our contract with BJ’s Wholesale Club (BJ’s) and the sale of the BJ’s portfolio, which closed in late February 2023, for a total purchase price of $2.5 billion on a loan portfolio of $2.3 billion, resulting in a $230 million Gain on portfolio sale. Portfolio Acquisitions In August 2024, we acquired a credit card loan portfolio for cash consideration of $378 million.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	12 Months Ended
	Dec. 31, 2024
Credit Loss [Abstract]
ALLOWANCE FOR CREDIT LOSSES	ALLOWANCE FOR CREDIT LOSSES The Allowance for credit losses represents our estimate of expected credit losses over the estimated life of our Credit card and other loans, incorporating future macroeconomic forecasts in addition to information about past events and current conditions. Our estimate under the Current Expected Credit Loss (CECL) approach is significantly influenced by the composition, characteristics and quality of our portfolio of Credit card and other loans, as well as the prevailing economic conditions and forecasts utilized. The Allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. Principal losses, net of recoveries are deducted from the Allowance for credit losses. Losses of unpaid interest and fees as well as any adjustments to the Allowance for credit losses associated with unpaid interest and fees are recorded as a reduction to Interest and fees on loans. The Allowance for credit losses is maintained through an adjustment to the Provision for credit losses and is evaluated for appropriateness on a quarterly basis. In estimating our Allowance for credit losses, for each identified segment of loans sharing similar risk characteristics, management uses modeling and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. This modeling uses historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships, to determine expected credit performance. Our quantitative estimate of expected credit losses under CECL is impacted by certain forecasted macroeconomic variables. We consider the macroeconomic forecast used to be reasonable and supportable over the estimated life of the Credit card and other loans portfolio, with no reversion period. In addition to the quantitative estimate of expected credit losses, we also incorporate qualitative adjustments for certain factors such as Company-specific risks, changes in current macroeconomic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the Allowance for credit losses reflects our best estimate of current expected credit losses. Credit Card Loans We use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. We have evaluated multiple risk characteristics across our credit card loans portfolio, and determined delinquency status and overall credit quality to be the most significant characteristics for estimating expected credit losses. To estimate our Allowance for credit losses, we segment our credit card loans on the basis of delinquency status, credit quality risk score and product. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. In determining the estimated life of our credit card loans, payments were applied to the measurement date balance with no payments allocated to future purchase activity. We use a combination of First In First Out and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) methodologies to model balance paydown. Other Loans We measure our Allowance for credit losses on Other loans, consisting primarily of our installment loans and “split-pay” offerings, using a statistical model to estimate projected losses over the remaining terms of the loans, inclusive of an assumption for prepayments. The model is based on the historical statistical relationship between loan loss performance and certain macroeconomic data pooled based on credit quality risk score, term of the underlying loans, vintage and geographic location. As of December 31, 2024 and 2023, the Allowance for credit losses on Other loans was $30 million and $32 million, respectively. Allowance for Credit Losses Rollforward The following table provides our Allowance for credit losses for our Credit card and other loans. The amount of the related Allowance for credit losses on Other loans is insignificant and therefore has been included in the table below for the periods presented: 2024 2023 2022 (Millions) Beginning balance $ 2,328 $ 2,464 $ 1,832 Provision for credit losses (1) 1,397 1,229 1,594 Change in the estimate for uncollectible unpaid interest and fees 5 10 10 Net principal losses (2) (1,489) (1,375) (972) Ending balance $ 2,241 $ 2,328 $ 2,464 ______________________________ (1) Provision for credit losses includes a build/release for the Allowance for credit losses, as well as replenishment of Net principal losses. (2) Net principal losses are presented net of recoveries of $367 million, $332 million and $187 million for the years ended December 31, 2024, 2023 and 2022, respectively. Net principal losses for the years ended December 31, 2023 and 2022 include an adjustment of $10 million and $5 million, respectively, related to the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency; no such adjustment was made in the current period. For the year ended December 31, 2024, the factors that influenced the decrease in the Allowance for credit losses are lower Credit card and other loans, as well as a modest decrease in the reserve rate over the period. Overall, our reserve rate is nominally lower, 11.9% as of December 31, 2024 compared with 12.0% as of December 31, 2023, reflecting conservative weightings on the economic scenarios in our credit reserve modeling given the wide range of potential 2025 macroeconomic outcomes, which we intend to maintain until we see sustained improvement in delinquencies and an improved macroeconomic outlook.

SECURITIZATIONS

SECURITIZATIONS	12 Months Ended
	Dec. 31, 2024
Offsetting [Abstract]
SECURITIZATIONS	SECURITIZATIONS We account for transfers of financial assets as either sales or financings. Transfers of financial assets that are accounted for as a sale are removed from the Consolidated Balance Sheets with any realized gain or loss reflected in the Consolidated Statements of Income during the period in which the sale occurs. Transfers of financial assets that are not accounted for as a sale are treated as a financing. We regularly securitize the majority of our credit card loans through the transfer of those loans to one of our Trusts. We perform the decision making for the Trusts, as well as servicing the cardholder accounts that generate the credit card loans held by the Trusts. In our capacity as a servicer, we administer the loans, collect payments and charge-off uncollectible balances. Servicing fees are earned by a subsidiary, which are eliminated in consolidation. The Trusts are consolidated VIEs because they have insufficient equity at risk to finance their activities – the issuance of debt securities and notes, collateralized by the underlying credit card loans. Because we perform the decision making and servicing for the Trusts, we have the power to direct the activities that most significantly impact the Trusts’ economic performance (the collection of the underlying credit card loans). In addition, we hold all of the variable interests in the Trusts, with the exception of the liabilities held by third-parties. These variable interests provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to the Trusts. As a result of these considerations, we are deemed to be the primary beneficiary of the Trusts and therefore consolidate the Trusts. The Trusts issue debt securities and notes, which are non-recourse to us. The collections on the securitized credit card loans held by the Trusts are available only for payment of those debt securities and notes, or other obligations arising in the securitization transactions. For our securitized credit card loans, during the initial phase of a securitization reinvestment period, we generally retain principal collections in exchange for the transfer of additional credit card loans into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors’ share of principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum. Under the Indentures of each Trust and their Indenture Supplements, we are required to maintain minimum interests in our Trusts ranging from 4% to 10% of the securitized credit card loans. This requirement is met through a transferor’s interest and is supplemented through excess funding deposits which represent cash amounts deposited with the trustee of the securitizations. Cash collateral, restricted deposits are generally released proportionately as investors are repaid. Under the terms of the Trusts, the occurrence of certain triggering events associated with the performance of the securitized credit card loans in each Trust could result in certain required actions, including payment of Trust expenses, the establishment of reserve funds, or early amortization of the debt securities and/or notes, in a worst-case scenario. During the years ended December 31, 2024, 2023 and 2022, no such triggering events occurred. The following tables provide the total securitized credit card loans, and related delinquencies, and net principal losses of securitized credit card loans for the periods presented: December 31, 2024 December 31, 2023 (Millions) Total credit card loans – available to settle obligations of consolidated VIEs $ 12,408 $ 12,844 Of which: principal amount of credit card loans 91 days or more past due $ 305 $ 323 Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022 (Millions) Net principal losses of securitized credit card loans $ 852 $ 801 $ 554

INVESTMENTS

INVESTMENTS	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
INVESTMENTS	INVESTMENTS Investments include investment securities and various other investments primarily held by the Banks for Community Reinvestment Act (CRA) purposes. Investment securities consist of available-for-sale (AFS) debt securities, which are mortgage-backed securities and municipal bonds, and equity securities, which are mutual funds. Investment securities are carried at fair value on the Consolidated Balance Sheets. We also have other investments, which primarily include a portfolio of investments in certain limited partnerships and limited liability companies accounted for under the equity method, and therefore are recorded at cost and adjusted each period for our share of the investee’s earnings or losses, less any impairment. Other investments also include an insignificant tax credit investment where we elected to apply the proportional amortization method of accounting, for which the impacts of both the amortization of the investment and income tax benefits are fully recognized in the Provision for income taxes. The following table provides a summary of our Investments as of December 31: 2024 2023 (Millions) Investment securities Available-for-sale debt securities $ 170 $ 171 Equity securities 47 46 Total investment securities 217 217 Equity method and other investments 49 36 Total Investments $ 266 $ 253 For AFS debt securities in an unrealized loss position, any estimated credit losses are recognized in the Consolidated Statements of Income by establishing or adjusting an existing Allowance for credit losses for such losses. We typically invest in highly-rated securities with low probabilities of default; therefore, we did not have an Allowance for credit losses as of either December 31, 2024 or 2023, and did not recognize any credit losses for the periods presented. Any unrealized gains, or any portion of an AFS debt security’s non-credit-related unrealized losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. Realized gains and losses are recorded in Other non-interest expenses in the Consolidated Statements of Income upon disposition of the AFS debt security, using the specific identification method. Gains and losses on investments in equity securities and CRA-related equity method investments are recorded in Other non-interest expenses in the Consolidated Statements of Income. The table below provides unrealized gains and losses on AFS debt securities as of December 31: 2024 2023 Amortized Unrealized Unrealized Fair Value Amortized Unrealized Unrealized Fair Value (Millions) Available-for-sale securities $ 195 $ — $ (25) $ 170 $ 192 $ — $ (21) $ 171 Total $ 195 $ — $ (25) $ 170 $ 192 $ — $ (21) $ 171 The following tables provide information about AFS debt securities in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position, as of December 31: 2024 Less than 12 months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Millions) Available-for-sale securities $ 27 $ — $ 140 $ (25) $ 167 $ (25) Total $ 27 $ — $ 140 $ (25) $ 167 $ (25) 2023 Less than 12 months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Millions) Available-for-sale securities $ 23 $ — $ 141 $ (21) $ 164 $ (21) Total $ 23 $ — $ 141 $ (21) $ 164 $ (21) As of December 31, 2024, our AFS debt securities included mortgage-backed securities, which do not have a single maturity date, with an amortized cost and estimated fair value of $167 million and $145 million, respectively, and municipal bonds, all of which have a maturity date greater than ten years, with an amortized cost and estimated fair value of $28 million and $25 million, respectively. There were no realized gains or losses from the sale of any investment securities for the years ended December 31, 2024, 2023 and 2022.

GOODWILL AND INTANGIBLE ASSETS,

GOODWILL AND INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS, NET	GOODWILL AND INTANGIBLE ASSETS, NET Goodwill Goodwill is recognized for business acquisitions when the purchase price is higher than the fair value of acquired net assets. Goodwill is not amortized but is tested for impairment at least annually. We evaluate goodwill for impairment annually as of July 1, or more frequently if events or circumstances arise that would more likely than not reduce the fair value of our single reporting unit below its carrying value. We have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of our reporting unit is less than its carrying value. Alternatively, we can perform a more detailed quantitative assessment of goodwill impairment. Qualitative factors considered in evaluating goodwill impairment include macroeconomic conditions, industry and market considerations, our overall financial performance and other relevant entity-specific factors, and/or a sustained decrease in our share price. If, after assessing these qualitative factors we conclude that it is not more likely than not that the fair value of our reporting unit is less than its carrying amount, then the quantitative goodwill impairment test is not necessary. However, if the qualitative factors indicate it is more likely than not that the fair value of our reporting unit is less than its carrying amount, or we elect to skip the qualitative assessment, we would perform a quantitative impairment test. The quantitative test compares the fair value of our reporting unit with its current carrying amount, including goodwill. When measuring the fair value we use widely accepted valuation techniques, leveraging a combination of the income approach based on discounted cash flows and the market approach based on valuation multiples. The key assumptions used to determine the fair value are primarily unobservable inputs (i.e., Level 3 inputs as defined under GAAP) including internally developed forecasts to estimate future cash flows, growth rates and discount rates, as well as market valuation multiples (for the market approach). Estimated cash flows are based on internal forecasts grounded in historical performance and future expectations. To discount the estimated cash flows, we use the expected cost of equity taking into account a combination of industry and Company-specific factors we believe a third-party market participant would incorporate. We believe the discount rate applied appropriately reflects the risks and uncertainties in the financial markets generally and specifically in our internally developed forecasts. When using valuation multiples under the market approach, we apply comparable publicly traded companies’ multiples (e.g., price to tangible book value or return on tangible equity) to our reporting unit’s operating results. For the years ended December 31, 2024 and 2023, we performed a quantitative assessment in connection with our annual goodwill impairment evaluation and concluded that the fair value of our reporting unit was in excess of its carrying value. For the year ended December 31, 2022, we performed a qualitative assessment and determined that it was more likely than not that the fair value of our reporting unit exceeded its carrying value. Goodwill was $634 million as of December 31, 2024, 2023 and 2022. No goodwill impairment was recognized during any of those years, and there were no accumulated goodwill impairment losses as of December 31, 2024. Intangible Assets, net Our identifiable intangible assets consist of both amortizable and non-amortizable intangible assets. Definite-lived intangible assets are subject to amortization and are amortized on a straight-line basis over their estimated useful lives; indefinite-lived intangible assets are not amortized. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable; recognizing an impairment if the carrying amount is not recoverable and exceeds the fair value of the asset or asset group. Intangible assets consisted of the following as of December 31: 2024 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 221 $ (113) $ 108 3-13 years Non-compete agreements 2 (2) — 5 years 223 (115) 108 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 227 $ (115) $ 112 2023 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 231 $ (108) $ 123 5-13 years Non-compete agreements 2 (1) 1 5 years $ 233 $ (109) $ 124 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 237 $ (109) $ 128 Amortization expense related to intangible assets was approximately $35 million, $37 million and $26 million for the years ended December 31, 2024, 2023 and 2022, respectively. The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows for the years ending December 31: (Millions) 2025 30 2026 29 2027 24 2028 7 2029 7 Thereafter 11 108

OTHER ASSETS

OTHER ASSETS	12 Months Ended
	Dec. 31, 2024
Other Assets [Abstract]
OTHER ASSETS	OTHER ASSETS The following provides a summary of Other assets as of December 31: 2024 2023 (Millions) Deferred tax asset, net $ 708 $ 629 Deferred contract costs (1) 228 285 Accounts receivable, net (2) 145 144 Right-of-use assets – operating leases 87 98 Restricted cash (3) 35 26 Other (4) 200 182 Total other assets $ 1,403 $ 1,364 ______________________________ (1) See Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” for discussion of impairment of certain deferred contract costs. (2) Primarily related to federal, state and foreign income tax receivables (including a tax-related receivable in the amount of approximately $50 million, net, which we are entitled to receive through LVI), and amounts receivable from various brand partners. (3) Restricted cash primarily includes cash restricted for principal and interest repayments of debt issued by our consolidated VIEs, as well as other restricted amounts including cash pledged to collateralize our derivative contracts. (4) Primarily comprised of prepaid expenses and non-income-based tax receivables.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
LEASES	LEASES We have various operating leases for facilities and equipment which are recorded as lease-related assets (i.e., right-of-use assets) and liabilities for those leases with terms greater than 12 months. We do not have any finance leases. We determine if an arrangement is a lease or contains a lease at inception, and we do not separate lease and non-lease components. Right-of-use assets are recognized as of the lease commencement date at amounts equal to the respective lease liabilities, adjusted for any prepaid lease payments, initial direct costs and lease incentives. Our lease liabilities are recognized as of the lease commencement date, or upon modification of the lease, at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate (as the rate implicit in the lease is typically not readily determinable). Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred. As of December 31, 2024 and 2023, the weighted average discount rate applied was 7.0% and 6.9%, respectively. As of December 31, 2024, our leases have remaining lease terms ranging from one year, to up to 14 years, some of which may include renewal options; the weighted average remaining lease term was 7.5 years and 8.4 years as of December 31, 2024 and 2023, respectively. Leases with an initial term of 12 months or less are not recognized on the Consolidated Balance Sheets; lease expense for these leases is recognized on a straight-line basis over the lease terms. As with other long-lived assets, right-of-use assets are reviewed for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable. Total lease expense for the years ended December 31, 2024, 2023 and 2022 was $14 million, $25 million, and $13 million, respectively, including variable lease costs and sublease income, which were insignificant. Supplemental lease-related cash flow information was as follows for the years ended December 31: 2024 2023 2022 (Millions) Cash paid for amounts included in the measurement of lease liabilities – operating cash flows $ 29 $ 27 $ 23 Right-of-use assets obtained in exchange for operating leases – non-cash $ 9 $ 37 $ — Future maturities of our operating lease liabilities, by year, were as follows as of December 31, 2024: (Millions) 2025 $ 24 2026 24 2027 22 2028 20 2029 19 Thereafter 61 Total undiscounted lease liabilities 170 Less: Amount representing interest (42) Total present value of minimum lease payments $ 128

DEPOSITS

DEPOSITS	12 Months Ended
	Dec. 31, 2024
Other Liabilities Disclosure [Abstract]
DEPOSITS	. DEPOSITS Deposits were categorized as interest-bearing or non-interest-bearing as follows, as of December 31: 2024 2023 (Millions) Interest-bearing $ 13,055 $ 13,594 Non-interest-bearing (including cardholder credit balances) 27 26 Total deposits $ 13,082 $ 13,620 Deposits by deposit type were as follows as of December 31: 2024 2023 (Millions) Savings accounts Direct-to-consumer (retail) $ 3,226 $ 2,863 Wholesale 3,601 3,734 Certificates of deposit Direct-to-consumer (retail) 4,461 3,591 Wholesale 1,767 3,406 Cardholder credit balances 27 26 Total deposits $ 13,082 $ 13,620 The scheduled maturities of certificates of deposit were as follows as of December 31, 2024: (Millions) 2025 (1) $ 4,769 2026 581 2027 660 2028 187 2029 31 Thereafter — Total certificates of deposit $ 6,228 ______________________________ (1) The 2025 balance includes $3 million in unamortized debt issuance costs, which are associated with the entire portfolio of certificates of deposit. As of December 31, 2024 and 2023, deposits that exceeded applicable Federal Deposit Insurance Corporation (FDIC) insurance limits, which are generally $250,000 per depositor, per insured bank, per ownership category, were estimated to be $574 million (4% of Total deposits) and $509 million (4% of Total deposits), respectively. The measurement of estimated uninsured deposits aligns with regulatory guidelines.

BORROWINGS OF LONG-TERM AND OTH

BORROWINGS OF LONG-TERM AND OTHER DEBT	12 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
BORROWINGS OF LONG-TERM AND OTHER DEBT	BORROWINGS OF LONG-TERM AND OTHER DEBT Long-term and other debt consisted of the following as of December 31: Description 2024 2023 Contractual Maturities Interest Rates (Millions, except percentages) Long-term and other debt: Revolving line of credit $ — $ — October 2028 (1) Senior notes due 2026 100 500 January 2026 7.00% Convertible senior notes due 2028 10 316 June 2028 4.25% Senior notes due 2029 900 600 March 2029 9.75% Subtotal 1,010 1,416 Less: Unamortized debt issuance costs 11 22 Total long-term and other debt $ 999 $ 1,394 Debt issued by consolidated VIEs: Fixed rate asset-backed term note securities $ 1,350 $ 350 Various – May 2026 to Jul. 2027 4.62% to 5.47% Conduit asset-backed securities 3,213 3,550 Various – Feb. 2025 to Oct. 2025 (2) Subtotal 4,563 3,900 Less: Unamortized debt issuance costs 5 2 Total debt issued by consolidated VIEs $ 4,558 $ 3,898 Total borrowings of long-term and other debt $ 5,557 $ 5,292 ______________________________ (1) The interest rate is based upon the Secured Overnight Financing Rate (SOFR) plus an applicable margin. (2) The interest rate is based upon SOFR, or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. As of December 31, 2024, the interest rates ranged from 5.48% to 5.60% with a weighted average rate of 5.54%. As of December 31, 2023, the interest rates ranged from 6.36% to 6.59% with a weighted average rate of 6.48%. Certain of our long-term debt agreements include various restrictive financial and non-financial covenants. If we do not comply with certain of these covenants and an event of default occurs and remains uncured, the maturity of amounts outstanding may be accelerated and become payable, and, with respect to our credit agreement, the associated commitments may be terminated. As of December 31, 2024, we were in compliance with all such covenants. Long-term and Other Debt Throughout 2024, we engaged in a number of financing-related transactions, including offering additional 9.750% Senior Notes due 2029, reducing our Parent Company debt, amending our Revolving Credit Facility to extend the maturity date, entering into separate privately negotiated repurchase agreements with a limited number of holders of our 4.25% Convertible Senior Notes Due 2028, and offering asset-backed term notes through one of our securitization trusts. Each of these transactions, as well as other matters relating to our liquidity and capital resources during the year, are described in more detail below. Credit Agreement In June 2023, we entered into our credit agreement with Parent Company, as borrower, certain of our domestic subsidiaries, as guarantors, JPMorgan Chase Bank, N.A., as administrative agent and lender, and various other financial institutions, as lenders, which provides for a $700 million senior unsecured revolving credit facility (the Revolving Credit Facility). In October 2024, we amended our Revolving Credit Facility to extend the maturity date to October 2028, as well as to delete the provisions relating to our prior term loan facility (which was repaid in full and terminated in December 2023) and make certain other amendments. As of December 31, 2024, our Revolving Credit Facility was undrawn and all $700 million remained available for future borrowings under the Revolving Credit Facility. Senior Notes Due 2026, 2028 and 2029 The Senior Notes set forth below are each governed by their respective indenture that include usual and customary negative covenants and events of default. These Senior Notes are unsecured and are guaranteed on a senior unsecured basis by certain of our existing and future domestic restricted subsidiaries that incur or in any other manner become liable for any debt under our domestic credit facilities, including the Revolving Credit Facility. 7.000% Senior Notes due 2026 In September 2020, we issued and sold $500 million aggregate principal amount of 7.000% Senior Notes due January 15, 2026 (the Senior Notes due 2026). The Senior Notes due 2026 accrue interest on the outstanding principal amount at the rate of 7.000% per annum from September 22, 2020, payable semi-annually in arrears, on March 15 and September 15 of each year, beginning on March 15, 2021. The Senior Notes due 2026 will mature on January 15, 2026, subject to earlier repurchase or redemption. In January 2024, we redeemed $400 million in aggregate principal amount of the Senior Notes due 2026 with the net proceeds from the January 2024 offering of Senior Notes due 2029, together with $100 million of cash on hand. See “— 9.750% Senior Notes due 2029” below. Further, in January 2025, with cash on hand we redeemed the remaining $100 million in aggregate principal amount of our Senior Notes due 2026. 4.25% Convertible Senior Notes Due 2028 In June 2023, we issued and sold $316 million aggregate principal amount of 4.25% Convertible Senior Notes due 2028 (the Convertible Notes). The Convertible Notes bear interest at an annual rate of 4.25%, payable semi-annually in arrears on June 15 and December 15 of each year. The Convertible Notes mature on June 15, 2028, unless earlier repurchased, redeemed or converted. The Convertible Notes are convertible, under certain conditions, until March 15, 2028, and on or after such date without condition, at an initial conversion rate of 26.0247 shares of our common stock per $1,000 principal amount of Convertible Notes, subject to adjustment, which represents a 25% conversion premium based on the last reported sale price of our common stock of $30.74 on June 8, 2023 prior to issuing the Convertible Notes. Upon any such conversion, we will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock (at our election), in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. At our option, we may redeem for cash, all or a portion of the Convertible Notes on or after June 21, 2026, and before the 51st scheduled trading day before the maturity date, but only if the closing price of our common stock reaches specified targets as defined in the indenture governing the Convertible Notes. The redemption price will equal 100% of the principal amount of the redeemed Convertible Notes plus accrued interest, if any. If we experience a fundamental change, as defined in the indenture governing the Convertible Notes, the note holders may require us to purchase for cash all or a portion of their notes, subject to specified exceptions, at a price equal to 100% of the principal amount of the Convertible Notes plus any accrued and unpaid interest. In connection with the issuance of the Convertible Notes, we entered into privately negotiated capped call (Capped Call) transactions with certain financial institution counterparties. These transactions are expected generally to reduce potential dilution to our common stock upon any conversion of Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount of the Convertible Notes, with such reduction and/or offset subject to a cap, based on the cap price. The base price of the Capped Call transactions is $38.43, representing a premium of 25% over the last reported sale price of our common stock of $30.74 on June 8, 2023, while the cap price is initially $61.48, which represents a premium of 100% over that same sale price on June 8, 2023. Within the share price range of $38.43 to $61.48 the Capped Call transactions provide economic value to us from the counterparties, upon maturity or earlier conversion. The Capped Call transactions met the conditions under the related accounting guidance for equity classification and are not measured at fair value on a recurring basis; the price paid of $39 million was recorded in Additional paid-in capital, net of tax, in the Consolidated Balance Sheet. In August 2024 we entered into separate, privately-negotiated repurchase agreements with a limited number of Convertible Note holders to repurchase $238 million aggregate principal amount of outstanding Convertible Notes (the August Repurchases). Subsequently, in September and November of 2024, certain holders of Convertible Notes separately approached us to repurchase Convertible Notes, and we entered into additional separate, privately-negotiated repurchase agreements with such holders of Convertible Notes, repurchasing $68 million aggregate principal amount of outstanding Convertible Notes (the Subsequent Repurchases and, together with the August Repurchases, the Repurchases). The final aggregate purchase price, or settlement value, for the Repurchases was $486 million, which was funded with cash on hand. In connection with the Repurchases, we recognized a $107 million inducement expense in Other non-interest expenses representing the total settlement value, inclusive of transaction fees, in excess of the total conversion value (calculated in accordance with the indenture governing the Convertible Notes), as well as an $88 million reduction in Additional paid-in capital (APIC) related to the total conversion value paid in excess of the carrying value of the Convertible Notes repurchased and a deferred tax impact. Prior to the repurchases of Convertible Notes described above, the embedded conversion feature within the Convertible Notes was both, considered indexed to the Company’s own equity, and met the equity classification conditions; therefore it did not require accounting as a derivative under GAAP. Upon entering into the repurchase agreements that themselves required cash settlement of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes, the embedded conversion feature for those particular Convertible Notes no longer met the equity classification conditions; therefore requiring bifurcation and derivative accounting. Of the total $107 million recognized in Other non-interest expenses, $53 million represented the mark-to-market on the embedded conversion features over the measurement period from the date the repurchase agreements were executed until settlement thereof. These fair value adjustments were determined using the daily volume-weighted average price per share of Parent Company’s common stock over the measurement period. As all of the repurchases were negotiated and settled during the second half of 2024, there were no embedded conversion features requiring bifurcation and derivative accounting as of December 31, 2024. Following the settlement of these repurchases, $10 million of Convertible Notes remained outstanding as of December 31, 2024. For these Convertible Notes, the embedded conversion feature is both, considered indexed to the Company’s own equity, and meets the equity classification conditions; therefore not requiring derivative accounting. We may, from time to time, seek to retire or repurchase our remaining outstanding Convertible Notes through cash purchases or exchanges for other securities, in open market purchases, tender offers, privately negotiated transactions or otherwise. During the fourth quarter of 2024, the Convertible Notes became convertible at the option of the holders (and the Convertible Notes have remained convertible during the first quarter of 2025) due to the last reported sales price per share of Parent Company’s common stock having exceeded 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding quarter (i.e., the quarters ended September 30, 2024 and December 31, 2024) (the Common Stock Sale Price Condition). The Common Stock Sale Price Condition is remeasured each quarter, so the Convertible Notes may continue or cease to be convertible in future quarters depending on the performance of our stock price. Upon any such conversion, we will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock (at our election), in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. As of the date of this report, we have not received any conversion requests. All of the Capped Call transactions continue to remain outstanding, notwithstanding the repurchases noted above. Although we do not trade or speculate in derivatives, we may seek to opportunistically terminate the Capped Call transactions (in full or in part from time to time) or leave the Capped Call transactions outstanding, possibly until maturity, in any such case with the objective of optimizing the shareholder value we receive under these transactions. 9.750% Senior Notes due 2029 In January 2024, we issued and sold an additional $300 million aggregate principal amount of 9.750% Senior Notes due 2029 (Senior Notes due 2029) at an issue price of 101.00% of principal plus accrued interest from December 22, 2023. The Senior Notes due 2029 issued in January 2024 were issued as additional notes under the same indenture pursuant to which the initial $600 million of Senior Notes due 2029 were issued in December 2023. The Senior Notes due 2029 that were issued in both December 2023 and January 2024 constitute a single series of notes and have the same terms, other than the issue date and issue price. The Senior Notes due 2029 accrue interest on the outstanding principal amount at the rate of 9.750% per annum from December 22, 2023, payable semi-annually in arrears, on March 15 and September 15 of each year, beginning on March 15, 2024. The Senior Notes due 2029 will mature on March 15, 2029, unless subject to earlier repurchase or redemption. We used the proceeds of the January 2024 offering of Senior Notes due 2029, together with $100 million of cash on hand, to fund the redemption of $400 million in aggregate principal amount of our outstanding 7.000% Senior Notes due 2026. Debt Issued by Consolidated VIEs An asset-backed security is a security whose value and income payments are derived from and collateralized by a specified pool of underlying assets – in our case, our credit card loans. The sale of the pool of underlying assets to general investors is accomplished through a securitization process. We regularly sell our credit card loans to our Trusts, which are consolidated. The liabilities of these consolidated VIEs include asset-backed securities for which creditors, or beneficial interest holders, do not have recourse to our general credit. Conduit Facilities We maintained committed syndicated bank Conduit Facilities to support the funding of our credit card loans for our Trusts. Borrowings outstanding under each private Conduit Facility bear interest at a margin above SOFR, or the asset-backed commercial paper costs of each individual conduit provider. The table below summarizes our conduit capacities, borrowings and maturities for the periods presented: (Millions) December 31, 2023 Commitment December 31, 2024 Conduit Facilities Capacity Drawn (6) Change Capacity Drawn (6) Maturity Date (7) Comenity Bank WFNMNT 2009-VFN (1) $ 2,650 $ 2,015 $ — $ 2,650 $ 1,955 October 2025 WFNMT 2009-VFC1 (2) 275 260 (275) — 141 — Comenity Capital Bank WFCMNT 2009-VFN (3) 2,250 1,025 — 2,250 867 February 2025 CCAST 2023-VFN1 (4) 250 250 — 250 250 September 2025 CCAST 2024-VFN1 (5) — — 200 200 — February 2025 Total $ 5,425 $ 3,550 $ (75) $ 5,350 $ 3,213 ______________________________ (1) 2009-VFN Conduit issued under World Financial Network Credit Card Master Note Trust (WFNMNT). (2) 2009-VFC1 Conduit issued under World Financial Network Credit Card Master Trust III (WFNMT). In October 2024, the revolving period of the 2009-VFC1 Conduit expired and the Conduit Facility entered controlled amortization, meaning the period in which principal collections are accumulated to pay down the outstanding principal amount of the notes issued under the Conduit Facility. (3) 2009-VFN Conduit issued under World Financial Capital Master Note Trust (WFCMNT). In February 2025, the 2009-VFN Conduit commitment will be reduced by $250 million to $2 billion, and the Maturity Date will be extended to February 2026. (4) 2023-VFN1 Conduit issued under Comenity Capital Asset Securitization Trust (CCAST). (5) 2024-VFN1 Conduit issued under CCAST. In February 2025, the 2024-VFN1 Conduit will be retired pursuant to the terms of a termination, consent and waiver agreement. (6) Amounts drawn do not include $1.1 billion and $1.2 billion of debt issued by the Trusts as of December 31, 2024 and 2023, respectively, which were not sold, but were retained by us as a credit enhancement and therefore have been eliminated from the Total. (7) Maturity Date with respect to conduit borrowings means the date on which the revolving period for the applicable Conduit Facility expires. The revolving period may be extended or renewed (unless an early amortization event occurs prior to the Maturity Date). Absent the extension or renewal of the revolving period, the Conduit Facility shall enter controlled amortization on the Maturity Date and may no longer be drawn upon. Fixed Rate Asset-Backed Term Notes In May 2024, WFNMNT issued $570 million of Series 2024-A public term asset-backed notes, which mature in April 2027. The offering consisted of $500 million of Class A notes with a fixed interest rate of 5.47% per year, $44 million of zero coupon Class M notes, and $26 million of zero coupon Class B notes. The Class M and B notes were retained by us and eliminated from the Consolidated Balance Sheet. In addition, in August 2024 WFNMNT issued $500 million of Series 2024-B public term asset-backed notes, which mature in July 2027. The offering consisted of $500 million of Class A notes with a fixed interest rate of 4.62% per year. Maturities The future principal payments for our Long-term and other debt are as follows, as of December 31, 2024: Year Long-Term and Other Debt Debt Issued by Consolidated VIEs Total (Millions) 2025 $ — $ 3,213 $ 3,213 2026 100 350 450 2027 — 1,000 1,000 2028 10 — 10 2029 900 — 900 Thereafter — — — Total maturities 1,010 4,563 5,573 Unamortized debt issuance costs (11) (5) (16) $ 999 $ 4,558 $ 5,557

OTHER LIABILITIES

OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2024
Other Liabilities [Abstract]
OTHER LIABILITIES	OTHER LIABILITIES The following provides a summary of Other liabilities as of December 31: 2024 2023 (Millions) Accounts payable and other brand partner liabilities $ 326 $ 422 Accrued liabilities (1) 295 273 Long-term tax reserves 250 286 Operating lease liabilities 128 148 Other (2) 202 182 Total other liabilities $ 1,201 $ 1,311 ______________________________ (1) Primarily related to accrued payroll and benefits, marketing, taxes and professional services expenses. (2)

DERIVATIVES AND HEDGING ACTIVIT

DERIVATIVES AND HEDGING ACTIVITIES	12 Months Ended
	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVES AND HEDGING ACTIVITIES	DERIVATIVES AND HEDGING ACTIVITIES From time to time, we use derivative financial instruments to manage our exposure to various financial risks; we do not trade or speculate in derivatives. Subject to the criteria set forth in GAAP, we will either designate our derivatives in qualifying hedging relationships, or as economic hedges should the criteria in GAAP not be met. All derivatives that we enter into are recognized at fair value in our Consolidated Balance Sheets, where our derivative receivables are included in Other assets and our derivative payables are included in Other liabilities. As permitted by GAAP, when a legally enforceable master netting agreement exists between us and the derivative counterparty, we present derivative receivables and derivative payables with the same counterparty on a net basis in the Consolidated Balance Sheets, including any related cash collateral receivables and payables. Risk Management Objectives of Using Derivatives We enter into derivative transactions to support our overall risk management activities. Our primary risks stem from the impact on our earnings and economic value of equity due to changes in interest rates, and to a lesser extent, changes in foreign exchange rates. Beginning in October 2024, we manage our interest rate sensitivity in part by changing the duration and re-pricing characteristics of a portion of our variable rate credit card loan portfolio by using interest rate swaps. We also use foreign currency forwards to limit our earnings and capital exposures to foreign exchange risk by hedging our limited exposures denominated in foreign currencies, in particular, Canadian dollars. We designate our interest rate swaps as qualifying accounting cash flow hedges, and account for our foreign currency forwards as economic hedges (as the criteria under GAAP for designation have not been met). See below for additional information on our use of derivatives and how we account for them: • Cash flow hedges: We designate derivatives as cash flow hedges when they are used to manage our exposure to variability in cash flows attributable to changes in contractually specified interest rates on our variable-rate credit card loans. Changes in the fair value of derivatives designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss. Those amounts are reclassified into our Consolidated Statements of Income in the same period during which the hedged forecasted interest accruals impact earnings, and are presented in the same line item as the earnings effect of the hedged items (i.e., Interest and fees on loans). Specifically, we entered into receive-fixed, pay-floating interest rate swaps to modify the interest rate characteristics of designated credit card loans from a floating rate to a fixed rate in order to reduce the impact of changes in forecasted future cash flows due to fluctuations in market interest rates. As of December 31, 2024, we had outstanding interest rate swaps with a total notional amount of $1.5 billion and the maximum period over which forecasted interest accruals were hedged with these interest rate swaps was approximately 1.8 years. The impacts of our cash flow hedges were insignificant to the Consolidated Financial Statements for the periods presented on both a gross basis and, where applicable, a net basis. Additionally, within the next 12 months, we expect to reclassify an insignificant loss recognized in Accumulated other comprehensive loss as of December 31, 2024 into our Consolidated Statements of Income. The actual amount reclassified into earnings may vary due to market conditions and adjustments made as part of our ongoing risk management strategy. • Economic hedges: Our economic hedges use derivatives to hedge the risk of changes in foreign currency exchange rates. Changes in the fair value of derivatives used in economic hedges are recognized in Other non-interest expense in our Consolidated Statements of Income. As of December 31, 2024 and 2023, we had outstanding foreign currency forwards with a total notional amount of $73 million and $79 million, respectively. The impacts of our economic hedges were insignificant to the Consolidated Financial Statements for the periods presented. The notional amounts disclosed above are not exchanged on our derivatives. While these notional amounts provide an indication of the volume of our derivative activity, they significantly exceed, in our view, the possible losses that could arise from the associated transactions.

OTHER NON-INTEREST INCOME AND O

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES	12 Months Ended
	Dec. 31, 2024
Other Non-Interest Income and Other Non-Interest Expenses [Abstract]
OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSE	OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES The following table provides the components of Other non-interest income for the years ended December 31: 2024 2023 2022 (Millions) Payment protection products $ 120 $ 132 $ 154 Loss from equity method investment — (6) (44) Other 24 2 4 Total other non-interest income $ 144 $ 128 $ 114 The following table provides the components of Other non-interest expenses for the years ended December 31: 2024 2023 2022 (Millions) Professional services and regulatory fees $ 112 $ 128 $ 142 Repurchased Convertible Notes 107 — — Occupancy expense 22 22 23 Other (1) 59 69 62 Total other non-interest expense $ 300 $ 219 $ 227 ______________________________ (1) Primarily related to costs associated with various other individually insignificant operating activities.

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
FAIR VALUES OF FINANCIAL INSTRUMENTS	FAIR VALUES OF FINANCIAL INSTRUMENTS Fair value is defined under GAAP as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; with such a transaction based on the principal market, or in the absence of a principal market the most advantageous market for the specific instrument. GAAP provides for a three-level fair value hierarchy that classifies the inputs to valuation techniques used to measure fair value, defined as follows: Level 1: Inputs that are unadjusted quoted prices for identical assets or liabilities in active markets that the entity can access. Level 2: Inputs, other than those included within Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, or inputs other than quoted prices that are observable for the asset or liability. Level 3: Inputs that are unobservable (e.g., internally derived assumptions) and reflect an entity’s assumptions about estimates market participants would use in pricing the asset or liability based on the best information available under the circumstances. In particular, Level 3 inputs and valuation techniques involve judgment and as a result are not necessarily indicative of amounts we would realize in a current market exchange. The use of different assumptions or estimation techniques may have a material effect on the estimated fair value amounts. We monitor the market conditions and evaluate the fair value hierarchy levels at least quarterly. For the years ended December 31, 2024 and 2023, there were no transfers into or out of Level 3, and no transfers between Levels 1 and 2. The following table summarizes the carrying values and fair values of our financial assets and financial liabilities as of December 31: 2024 2023 Carrying Fair Carrying Fair (Millions) Financial assets Credit card and other loans, net $ 16,655 $ 19,011 $ 17,005 $ 19,802 Investment securities 217 217 217 217 Financial liabilities Deposits 13,082 13,087 13,620 13,583 Debt issued by consolidated VIEs 4,558 4,572 3,898 3,900 Long-term and other debt 999 1,085 1,394 1,457 Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Credit card and other loans, net: Our Credit card and other loans are recorded at amortized cost, less the Allowance for credit losses, on the Consolidated Balance Sheets. In estimating the fair values, we use a discounted cash flow model (i.e., Level 3 inputs), primarily because a comparable whole loan sales market for similar loans does not exist, and therefore there is a lack of observable pricing inputs. We use various internally derived inputs, including projected income, discount rates and forecasted write-offs. Economic value attributable to future loans generated by the cardholder accounts is not included in the fair values. Investment securities: Investment securities consist of AFS debt securities, including both mortgage-backed securities and municipal bonds, as well as equity securities, which are mutual funds, and are recorded at fair value on the Consolidated Balance Sheets. Quoted prices of identical or similar investment securities in active markets are used to estimate the fair values (i.e., Level 1 or Level 2 inputs). Derivative assets and liabilities : We use derivatives to manage our interest rate and foreign currency risk exposures. When quoted market prices are available and used to value our derivatives, we classify them as Level 1. However, the majority of our derivatives do not have readily available quoted market prices. Therefore, we value most of our derivatives using vendor-based models. We primarily rely on market observable inputs for these models, including, for example, interest rate yield curves and currency rates. These inputs can vary depending on the type of derivatives and nature of the underlying rate, price or index upon which the value of the derivative is based. We typically classify derivatives as Level 2 as significant inputs can be observed in a liquid market and the model itself does not require significant judgment. Our derivatives are included in Other assets or Other liabilities on the Consolidated Balance Sheets. The fair value impacts of our derivative assets and liabilities were insignificant to the Consolidated Financial Statements for the periods presented on both a gross basis and, where applicable, a net basis. Deposits: Money market and other non-maturity deposits carrying values approximate their fair values because they are short-term in duration and have no defined maturity. GAAP requires that the fair values of deposit liabilities with no stated maturities equal their carrying values and does not permit recognition of the inherent funding value of the instruments. Certificates of deposit are recorded at their historical issuance cost on the Consolidated Balance Sheets, adjusted for unamortized fees, with the fair value being estimated based on the currently observable market rates available to us for similar deposits with similar remaining maturities (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets. Debt issued by consolidated VIEs: We record Debt issued by our consolidated VIEs at amortized cost (including unamortized fees, issuance costs, premiums and discounts, where applicable) on the Consolidated Balance Sheets. Fair value is estimated based on the currently observable market rates available to us for similar debt instruments with similar remaining maturities or quoted market prices for the same transaction (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets. Long-term and other debt: We record Long-term and other debt at amortized cost (including unamortized fees, issuance costs, premiums and discounts, where applicable) on the Consolidated Balance Sheets. The fair value is estimated based on the currently observable market rates available to us for similar debt instruments with similar remaining maturities, or quoted market prices for the same transaction (i.e., Level 2 inputs). Interest payable is included within Other liabilities on the Consolidated Balance Sheets. Financial Instruments Measured at Fair Value on a Recurring Basis The following tables summarize our financial instruments measured at fair value on a recurring basis, categorized by the fair value hierarchy described in the preceding paragraphs, as of December 31: 2024 Total Level 1 Level 2 Level 3 (Millions) Investment securities $ 217 $ 47 $ 170 $ — Total assets measured at fair value $ 217 $ 47 $ 170 $ — 2023 Total Level 1 Level 2 Level 3 (Millions) Investment securities $ 217 $ 46 $ 171 $ — Total assets measured at fair value $ 217 $ 46 $ 171 $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including equity method investments, property and equipment, right-of-use assets, deferred contract costs, goodwill and intangible assets. These assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances, such as upon impairment. We did not have any impairments for the year ended December 31, 2024. For the year ended December 31, 2022, we wrote off $44 million of our equity method investment in LVI, with the remaining $6 million of our investment written off during the year ended December 31, 2023. Financial Instruments Disclosed but Not Carried at Fair Value The fair values of financial instruments that are measured at amortized cost are estimates, and require management’s judgment; therefore, these fair value estimates may not be indicative of future fair values, nor can our fair value be estimated by aggregating all of the amounts presented. The following tables summarize our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31: 2024 Fair Value Level 1 Level 2 Level 3 (Millions) Financial assets Credit card and other loans, net $ 19,011 $ — $ — $ 19,011 Total $ 19,011 $ — $ — $ 19,011 Financial liabilities Deposits $ 13,087 $ — $ 13,087 $ — Debt issued by consolidated VIEs 4,572 — 4,572 — Long-term and other debt 1,085 — 1,085 — Total $ 18,744 $ — $ 18,744 $ — 2023 Fair Value Level 1 Level 2 Level 3 (Millions) Financial assets Credit card and other loans, net $ 19,802 $ — $ — $ 19,802 Total $ 19,802 $ — $ — $ 19,802 Financial liabilities Deposits $ 13,583 $ — $ 13,583 $ — Debt issued by consolidated VIEs 3,900 — 3,900 — Long-term and other debt 1,457 — 1,457 — Total $ 18,940 $ — $ 18,940 $ —

REGULATORY MATTERS AND CAPITAL

REGULATORY MATTERS AND CAPITAL ADEQUACY	12 Months Ended
	Dec. 31, 2024
Regulated Operations [Abstract]
REGULATORY MATTERS AND CAPITAL ADEQUACY	REGULATORY MATTERS AND CAPITAL ADEQUACY Regulatory Matters Our business is subject to extensive federal and state laws and regulations, as well as related regulation and supervision, including by the FDIC, CFPB and other federal and state authorities. Pending and future laws and regulations (federal and state) may adversely impact our business. Without limiting the foregoing, CB is subject to various regulatory capital requirements administered by the State of Delaware and the FDIC. CCB is also subject to various regulatory capital requirements administered by the State of Utah and the FDIC. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by our regulators. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, both Banks must meet specific capital guidelines that involve quantitative measures of their assets and liabilities as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by these regulators about components, risk weightings and other factors. In addition, both Banks are limited in the amounts they can pay as dividends to the Parent Company. Quantitative measures, established by regulations to ensure capital adequacy, require the Banks to maintain minimum amounts and ratios of Tier 1 capital to average assets, and Common equity tier 1, Tier 1 capital and Total capital, all to risk weighted assets. Failure to meet these minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by the Banks’ regulators that if undertaken, could have a direct material effect on CB’s and/or CCB’s operating activities, as well as our operating activities. Based on these regulations, as of December 31, 2024 and 2023, each Bank met all capital requirements to which it was subject, and maintained capital ratios in excess of the minimums required to qualify as well capitalized. The Banks seek to maintain capital levels and ratios in excess of the minimum regulatory requirements inclusive of the 2.5% Capital Conservation Buffer. Although Bread Financial is not a bank holding company as defined under the Bank Holding Company Act, we seek to maintain capital levels and ratios in excess of the minimums required for bank holding companies. As of December 31, 2024 the actual capital ratios and minimum ratios for each Bank, as well as Bread Financial, are as follows: Actual Ratio Minimum Ratio for Minimum Ratio to be Total Company Common equity tier 1 capital ratio (1) 12.4 % 4.5 % 6.5 % Tier 1 capital ratio (2) 12.4 6.0 8.0 Total risk-based capital ratio (3) 13.8 8.0 10.0 Tier 1 leverage capital ratio (4) 11.5 4.0 5.0 Total risk-weighted assets (5) $ 19,928 Comenity Bank Common equity tier 1 capital ratio (1) 16.5 % 4.5 % 6.5 % Tier 1 capital ratio (2) 16.5 6.0 8.0 Total risk-based capital ratio (3) 17.9 8.0 10.0 Tier 1 leverage capital ratio (4) 15.3 4.0 5.0 Comenity Capital Bank Common equity tier 1 capital ratio (1) 15.4 % 4.5 % 6.5 % Tier 1 capital ratio (2) 15.4 6.0 8.0 Total risk-based capital ratio (3) 16.7 8.0 10.0 Tier 1 leverage capital ratio (4) 14.3 4.0 5.0 __________________________________ (1) Common equity tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders' equity has been reduced, primarily by Goodwill and intangible assets, net. (2) Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders' equity has been reduced, primarily by Goodwill and intangible assets, net. (3) Total risk-based capital ratio represents total capital divided by total risk-weighted assets. In the calculation of total capital, we follow the Basel III Standardized Approach and therefore tier 1 capital has been increased by tier 2 capital, which for us is the allowable portion of the Allowance for credit losses. (4) Tier 1 leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments. (5) Total risk-weighted assets are generally measured by allocating assets, and specified off-balance sheet exposures, to various risk categories as defined by the Basel III Standardized Approach. We are also involved, from time to time, in reviews, investigations, subpoenas, supervisory actions and other proceedings (both formal and informal) by governmental agencies regarding our business, which could subject us to significant fines, penalties, obligations to change our business practices, significant restrictions on our existing business or ability to develop new business, cease-and-desist orders, safety-and-soundness directives or other requirements resulting in increased expenses, diminished income and damage to our reputation. On November 20, 2023, following the consent of the Board of Managers of Comenity Servicing LLC (the Servicer), the FDIC issued a consent order to the Servicer. The Servicer is not one of our Bank subsidiaries, but is our wholly-owned subsidiary that services substantially all of our loans. The consent order arose out of the June 2022 transition of our credit card processing services to strategic outsourcing partners and addresses certain shortcomings in the Servicer’s information technology (IT) systems development, project management, business continuity management, cloud operations, and third-party oversight. The Servicer entered into the consent order for the purpose of resolving these matters without admitting or denying any violations of law or regulation set forth in the order. The consent order does not contain any monetary penalties or fines. The Servicer continues to take significant steps to strengthen the organization’s IT governance and address the other issues identified in the consent order, working diligently to ensure that all requirements of the consent order are satisfied. Without limiting the generality of the foregoing, the Servicer has taken steps to address each provision within the consent order and continues to comply with each ongoing requirement. The Servicer is committed to complying with the longer-term requirements of the consent order, including the enhancement of its compliance management processes and related corporate governance, compliance with the applicable system conversion requirements, and enhanced risk management and reporting. The Servicer has submitted nearly all of the required deliverables under the consent order to the FDIC for its review and consideration. The Board of Directors of each of the Banks continue to oversee the Servicer’s compliance with the requirements of the consent order and provide effective challenge to the Servicer’s management toward that end. On August 22, 2024, each Bank entered into an agreement with the FDIC to pay civil money penalties (CMPs) of $1 million per Bank. The CMPs, which have been paid in full, arose out of the June 2022 transition of our credit card processing services to strategic outsourcing partners and were related to disruptions to the Banks’ customer reward programs and automatic payments following the transition. These issues were self-identified and remediated timely, and the Banks provided full cooperation with the regulators throughout their examination. The Banks’ agreements to pay the CMPs did not require admission of wrongdoing, and there are no operational limitations on the Banks or our business associated with the CMPs.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time we are subject to various lawsuits, claims, disputes, or potential claims or disputes, and other proceedings, arising in the ordinary course of business that we believe, based on our current knowledge, will not have a material adverse effect on our business, consolidated financial condition or liquidity, including claims and lawsuits alleging breaches of our contractual obligations, arbitrations, class actions and other litigation, arising in connection with our business activities. However, in light of the uncertainties involved in such matters, including the fact that some pending legal proceedings are at preliminary stages or seek an indeterminate amount of damages, penalties or fines, it is possible that the outcome of legal proceedings could have a material impact on our results of operations. Certain legal proceedings involving us or our subsidiaries are described further below. On February 20, 2024, we and our general counsel were named as defendants in an adversary proceeding filed by the liquidating trustee in LVI’s Chapter 11 bankruptcy case in the United States Bankruptcy Court for the Southern District of Texas, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc. , Case No. 24-03027 (Bankr. S.D. Tex.), alleging actual and constructive fraudulent transfers, among other claims, in connection with our spinoff of LVI. Also on February 20, 2024, the liquidating trustee filed an action in the United States District Court for the District of Delaware against us, each of the members of our Board of Directors at the time of the spinoff, and certain members of our management team, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc. , Case No. 24-cv-00226-RGA (D. Del.), alleging certain breaches of fiduciary duties (and aiding and abetting breaches of fiduciary duties) in connection with the spinoff. Subsequently, the liquidating trustee voluntarily dismissed without prejudice the complaint in the District of Delaware and commenced on March 20, 2024 a substantially similar action in Delaware Chancery Court, captioned Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc. , Case No. 2024-0277-MTZ (Del. Ch.), against the same parties and asserting the same claims. Among other things, in each of the Texas and Delaware actions, the liquidating trustee seeks damages in the amount of approximately $750 million plus interest, fees and expenses. We and certain current and former members of our management team have also been named as defendants in other litigation matters relating to the LVI spinoff. LoyaltyOne, Co. (the LVI subsidiary that operated its Canadian AIR MILES business) filed suit against us and our general counsel in the Ontario Superior Court of Justice in Canada on October 18, 2023, in an action captioned LoyaltyOne, Co. v. Bread Financial Holdings, Inc. et al . The lawsuit asserts that our general counsel, in his capacity as a pre-spinoff director of LoyaltyOne, Co., breached various fiduciary duties owed to LoyaltyOne, Co. in connection with the LVI spinoff and certain other transactions, and that Bread Financial assisted in and benefited from those breaches. The lawsuit seeks damages in the amount of $775 million. LoyaltyOne, Co. is also contesting our entitlement to certain potential tax refunds under the tax matters agreement, in proceedings pursuant to the Canadian Companies’ Creditors Arrangement Act in the Commercial List of the Ontario Superior Court of Justice, captioned In re Matter of a Plan of Compromise or Arrangement of LoyaltyOne, Co., Case No. CV-23-00696017-00CL (the Tax Matters Dispute). In July 2024, the judge presiding over the Tax Matters Dispute issued an order in our favor, and LoyaltyOne, Co. has filed a motion for leave to appeal that order, which is pending with Court of Appeal for Ontario as of the date of this report. Finally, on April 27, 2023, we and certain current and former members of our management team were named as defendants in a putative federal securities class action filed in the United States District Court for the Southern District of Ohio, captioned Newtyn Partners, LP v. Alliance Data Systems n/k/a Bread Financial Holdings, Inc. , Case No. 23-cv-1451-EAS (S.D. Ohio), concerning disclosures made about LVI’s business prior to the spinoff. The lead plaintiff in this matter filed an amended complaint on March 21, 2024 and is seeking, among other things, a class action designation and an award of damages in an amount to be proven at trial, plus fees and expenses. In all these actions related to the spinoff, we believe the allegations contained in the complaints are without merit and intend to defend the cases. We cannot predict at this point the length of time that these actions will be ongoing or the liability, if any, which may arise therefrom. Some matters pending against us specify the damages sought, others seek an unspecified amount of damages or are at very early stages of the legal process. In matters where the amount of damages claimed against us are stated, the claimed amount may be exaggerated and/or unsupported. While some matters have not yet progressed sufficiently through discovery or have had development of important factual information and legal issues to enable us to estimate an amount of loss or a range of possible loss, other matters may have progressed sufficiently to enable an estimate of an amount of loss, or a range of possible loss. We accrue for a loss contingency when it is both probable that a loss has occurred, and the amount of loss can be reasonably estimated; however, there may be instances in which an exposure to a loss contingency exceeds our accrual. On a quarterly basis we evaluate developments in the legal proceedings against us that could cause an increase or decrease in the amount of the accrual that has been previously recorded.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2024
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Employee Stock Purchase Plan In March 2015, our Board of Directors adopted the 2015 Employee Stock Purchase Plan (the 2015 ESPP), which was subsequently approved by our stockholders on June 3, 2015. The 2015 ESPP became effective July 1, 2015 with no definitive expiration date; however, our Board of Directors may at any time and for any reason terminate or amend the 2015 ESPP. No employee may purchase more than $25,000 worth of stock under the 2015 ESPP in any calendar year, and no employee may purchase stock under the 2015 ESPP if such purchase would cause the employee to own more than 5% of the voting rights or value of our common stock. The 2015 ESPP provides for six-month offering periods, commencing on the first trading day of the first and third calendar quarter of each year and ending on the last trading day of each subsequent calendar quarter. The purchase price of the common stock upon exercise is 85% of the fair market value of shares on the applicable purchase date as determined by averaging the high and low trading prices of the last trading day of each six-month period as defined above. An employee elects to participate and have contributions deducted through payroll deductions. The 2015 ESPP also provides for the issuance of any remaining shares available for issuance under our 2005 Employee Stock Purchase Plan, which were 441,327 shares as of June 30, 2015. The 2015 ESPP reserved an additional 1,000,000 shares of our common stock for issuance under the 2015 Plan, bringing the maximum number of shares reserved for issuance under the 2015 ESPP to 1,441,327 shares, subject to adjustment as provided in the 2015 ESPP. During the year ended December 31, 2024, we issued 107,590 shares of common stock under the 2015 ESPP at a weighted-average issue price of $43.69. Since the 2015 ESPP became effective on July 1, 2015, 920,999 shares of common stock have been issued, with 520,328 shares therefore available for issuance. 401(k) Retirement Savings Plan The Bread Financial 401(k) Plan (the Plan), as amended, is a defined contribution plan that is qualified under Section 401(k) of the Internal Revenue Code of 1986. The Plan is an IRS-approved safe harbor plan design that eliminates the need for most discrimination testing. Eligible employees can participate in the Plan immediately upon joining BFH and begin receiving Company matching contributions and safe-harbor non-elective contributions. The Plan covers U.S. employees of BFH who are at least 18 years old, employees of one of our wholly-owned subsidiaries and any other subsidiary or affiliated organization that adopts the Plan; employees of BFH and all of its U.S. subsidiaries are currently covered. The Plan permits eligible employees to make Roth elective deferrals, which are included in the employee’s taxable income at the time of contribution, but not when distributed. Regular, or Non-Roth elective deferrals made by employees, together with our contributions to the Plan, and income earned on these contributions, are not taxable until withdrawn from the Plan. In 2023, we expanded our contributions to the Plan with an automatic annual deposit for eligible employees. We now automatically deposit three percent of an employee’s eligible annual pay in their 401(k) account on an annual basis, regardless of their contributions. In addition, we match an employee’s contribution fifty cents-per-dollar, up to six percent of the employee’s eligible annual compensation. For the years ended December 31, 2024, 2023 and 2022, our matching contributions were $29 million, $30 million and $17 million, respectively. Participants in the Plan can direct their contributions and our matching contribution to numerous investment options, including our common stock. On July 20, 2001, we registered 1,500,000 shares of our common stock for issuance in accordance with the Plan pursuant to a Registration Statement on Form S-8, File No. 333-65556. As of December 31, 2024, 143,633 of such shares remain available for issuance. Executive Deferred Compensation Plan We also maintain an Executive Deferred Compensation Plan (EDCP). The EDCP permits a defined group of management and highly compensated employees to defer on a pre-tax basis a portion of their base salary and incentive compensation (as defined in the EDCP) payable for services rendered. Deferrals under the EDCP are unfunded and subject to the claims of our creditors. Each participant in the EDCP is 100% vested in their account, and account balances accrue interest at a rate established and adjusted periodically by the Compensation & Human Capital committee of our Board of Directors. As of December 31, 2024 and 2023, our outstanding liability related to the EDCP, which was included in Other liabilities on the Consolidated Balance Sheets, was $25 million and $24 million, respectively.

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 31, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS	CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in each component of Accumulated other comprehensive loss, net of tax effects, are as follows for the periods presented: Net Unrealized Gains (Losses) on AFS Securities Foreign Currency Translation Losses Accumulated other comprehensive loss (Millions) Balance as of December 31, 2021 $ 1 $ (3) $ (2) Changes in other comprehensive loss (19) — (19) Balance as of December 31, 2022 $ (18) $ (3) $ (21) Changes in other comprehensive income 2 — 2 Balance as of December 31, 2023 $ (16) $ (3) $ (19) Changes in other comprehensive loss (3) — (3) Balance as of December 31, 2024 $ (19) $ (3) $ (22)

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2024
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Stock Repurchase Programs On February 21, 2024, our Board of Directors approved a stock repurchase program to acquire up to $30 million in shares of our outstanding common stock in the open market during the period ended December 31, 2024. On December 2, 2024, our Board of Directors approved a $25 million increase to this stock repurchase program, increasing the total authorized amount of shares to be repurchased from $30 million to $55 million during the period ended December 31, 2024. The rationale for this repurchase program, and the amount thereof, was to offset a portion of the impact of dilution associated with issuances of employee restricted stock units. During the year ended December 31, 2024, under the authorized stock repurchase program, we acquired a total of 1.0 million shares of our common stock for $55 million. Following their repurchase, these 1.0 million shares ceased to be outstanding shares of common stock and are now treated as authorized but unissued shares of common stock. Stock Compensation Plans We have adopted equity compensation plans to advance the interests of BFH by rewarding certain employees for their contributions to the financial success of BFH and thereby motivating them to continue to make such contributions in the future. The 2020 Omnibus Incentive Plan (the 2020 Plan) became effective July 1, 2020 and reserved 2,400,000 shares of common stock for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock unit awards (RSUs), performance share awards, cash incentive awards, deferred stock units, and other stock-based and cash-based awards to selected officers, employees, non-employee directors and consultants performing services for us or our affiliates, with only employees being eligible to receive incentive stock options. The 2020 Plan expires on June 30, 2030; provided that, pursuant to the terms of the 2022 Omnibus Incentive Plan (as defined below), no new grants are permitted to be made under the 2020 Plan. The 2022 Omnibus Incentive Plan (the 2022 Plan) became effective July 1, 2022 and reserved 3,075,000 shares of common stock for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance share awards, cash incentive awards, deferred stock units, and other stock-based and cash-based awards to selected officers, employees, non-employee directors and consultants performing services for us or our affiliates, with only employees being eligible to receive incentive stock options. The 2022 Plan expires on June 30, 2032; provided that, pursuant to the terms of the 2024 Omnibus Incentive Plan (as defined below), no new grants are permitted to be made under the 2022 Plan, and all of the shares that remained available for grant under the 2022 Plan (203,687 shares) were rolled over into the 2024 Plan under the terms thereof, together with any shares that may be forfeited under the outstanding equity awards under the 2022 Plan, as discussed in more detail below. In April 2024, our Board of Directors adopted the 2024 Omnibus Incentive Plan (the 2024 Plan), which was subsequently approved by our stockholders on May 14, 2024. The 2024 Plan became effective May 14, 2024 and expires on May 13, 2034. The 2024 Plan reserves 5,000,000 new shares of common stock for grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance share awards, cash incentive awards, deferred stock units, and other stock-based and cash-based awards to selected officers, employees, non-employee directors and consultants performing services for us or our affiliates, with only employees being eligible to receive incentive stock options. In addition, the 2024 Plan (i) permitted us to roll over the shares that remained available for grant under the 2022 Plan at the time the 2024 Plan was approved (203,687 shares as of May 14, 2024) and (ii) permits us to roll over and re-issue shares that are forfeited under outstanding equity awards under the 2022 Plan (a total of 2,463,907 shares were subject to outstanding equity awards as of May 14, 2024). The maximum amount that may be awarded to any independent member of our Board of Directors in any one calendar year may not exceed $1 million. On May 14, 2024 we registered up to an aggregate of 7,667,594 shares of our common stock authorized for issuance in accordance with the 2024 Plan pursuant to a Registration Statement on Form S-8, File No. 333-279495. Terms of all awards under the 2024 Plan are determined by the Board of Directors or the Compensation & Human Capital Committee of the Board of Directors or its designee at the time of award. Stock Compensation Expense Stock-based compensation expense is measured at the grant date of the award, based on the fair value of the award, and is recognized ratably over the requisite service period. Stock-based compensation expense recognized in Employee compensation and benefits expense in the Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 was $54 million , $44 million and $33 million, respectively, with corresponding income tax benefits of $9 million , $8 million and $5 million, respectively. As the amount of stock-based compensation expense recognized is based on awards ultimately expected to vest, the amount recognized in the Consolidated Statements of Income has been reduced for estimated forfeitures. We estimate forfeitures at each grant date based on historical experience, with forfeiture estimates to be revised, if necessary, in subsequent periods should actual forfeitures differ from those estimates; forfeitures were estimated at 5% for each of the years ended December 31, 2024, 2023 and 2022. As of December 31, 2024, there was approximately $56 million of unrecognized expense, adjusted for estimated forfeitures, related to non-vested, stock-based equity awards granted to employees, which is expected to be recognized over a weighted average remaining period of approximatel y 1.9 years. Restricted Stock Unit Awards The following table summarizes RSUs activity for our equity compensation plans: Market- Based (1) Performance- Based (1) Service- Total Weighted Balance as of December 31, 2021 19,067 91,416 648,952 759,435 $ 89.14 Shares granted — 82,513 766,178 848,691 63.22 Shares vested — (8,983) (218,077) (227,060) 78.23 Shares forfeited (19,067) — (89,390) (108,457) 65.83 Balance as of December 31, 2022 — 164,946 1,107,663 1,272,609 $ 68.86 Shares granted — 175,587 1,172,465 1,348,052 38.02 Shares vested — (9,254) (434,049) (443,303) 67.49 Shares forfeited — — (87,527) (87,527) 53.82 Balance as of December 31, 2023 — 331,279 1,758,552 2,089,831 $ 49.89 Shares granted — 243,312 1,307,833 1,551,145 37.78 Shares vested — (95,133) (730,635) (825,768) 56.58 Shares forfeited — — (68,012) (68,012) 43.39 Balance as of December 31, 2024 — 479,458 2,267,738 2,747,196 $ 41.54 Outstanding and Expected to Vest 2,648,763 $ 41.80 ______________________________ (1) Shares granted reflect a 100% target attainment of the respective market-based or performance-based metric. Shares forfeited include those RSUs forfeited as a result of BFH not meeting the respective market-based or performance-based metric conditions. For Service-based and Performance-based awards, the fair value of the RSUs was estimated using our closing share price on the date of grant. Service-based RSUs typically vest ratably over a three-year period. Performance-based RSUs typically cliff vest at the end of three years, if specified performance measures tied to our financial performance are met, which are measured annually over the three-year period. The predefined vesting criteria typically permit a range from 0% to 150% to be earned. Accruals of compensation cost for an award with a performance condition are based on the probable outcome of that performance condition. For RSUs vested during the years ended December 31, 2024, 2023 and 2022, the total fair value, based upon our stock price at the date the RSUs vested, was $47 million , $30 million and $18 million, respectively. As of December 31, 2024, the aggregate intrinsic value of RSUs outstanding and expected to vest was $162 million. Dividends For the years ended December 31, 2024, 2023 and 2022, we paid $43 million, $42 million and $43 million, respectively, in dividends to holders of our common stock. On January 30, 2025, our Board of Directors declared a quarterly cash dividend of $0.21 per share on our common stock, payable on March 21, 2025, to stockholders of record at the close of business on February 14, 2025.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES We file income tax returns in federal, state, local and foreign jurisdictions, as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions. Differences between the audited Consolidated Financial Statements and tax bases of assets and liabilities give rise to deferred tax assets and liabilities, which measure the future tax effects of items recognized in the audited Consolidated Financial Statements. Changes in deferred income tax assets and liabilities associated with components of Stockholders’ equity are charged or credited directly to Stockholders’ equity. Otherwise, changes in deferred income tax assets and liabilities are included as a component of Provision for income taxes. The effect on deferred income tax assets and liabilities attributable to changes in enacted tax rates is charged or credited to Provision for income taxes in the period of enactment. Deferred tax assets require certain estimates and judgments in order to determine whether it is more likely than not that all or a portion of the benefit of a deferred tax asset will not be realized. In evaluating our deferred tax assets on a quarterly basis as new facts and circumstances emerge, we analyze and estimate the impact of future taxable income, reversing temporary differences and available tax planning strategies. Uncertainties can lead to changes in the ultimate realization of deferred tax assets. A liability for unrecognized tax benefits, representing the difference between a tax position taken or expected to be taken in a tax return and the benefit recognized in the audited Consolidated Financial Statements, inherently requires estimates and judgments. A tax position is recognized only when it is more likely than not to be sustained, based purely on its technical merits after examination by the relevant taxing authority, and the amount recognized is the benefit we believe is more likely than not to be realized upon ultimate settlement. We evaluate our tax positions as new facts and circumstances become available, making adjustments to unrecognized tax benefits as appropriate. Uncertainties can mean the tax benefits ultimately realized differ from amounts previously recognized, with any differences recorded in Provision for income taxes, along with amounts for estimated interest and penalties. The components of our Income from continuing operations before income taxes and Provision for income taxes included in the Consolidated Statements of Income were as follows for the years ended December 31: 2024 2023 2022 (Millions) Components of Income from continuing operations before income taxes Domestic $ 375 $ 964 $ 297 Foreign 6 4 3 Total Income from continuing operations before income taxes $ 381 $ 968 $ 300 Components of Provision for income taxes Current Federal $ 156 $ 261 $ 279 State 29 37 41 Foreign 2 1 1 Total current income tax expense 187 299 321 Deferred Federal (73) (65) (200) State (10) (2) (44) Foreign (2) (1) (1) Total deferred income tax benefit (85) (68) (245) Total Provision for income taxes $ 102 $ 231 $ 76 A reconciliation of our expected income tax expense computed by applying the federal statutory rate to Income from continuing operations before income taxes, to the recorded Provision for income taxes, is as follows for the years ended December 31: 2024 2023 2022 (Millions) Expected expense at statutory rate $ 80 $ 203 $ 63 Increase (decrease) in income taxes resulting from: State and local income taxes, net of federal benefit 15 27 (2) Non-deductible expenses 29 8 6 IRC Section 199, net of tax reserves — — 4 Basis difference in unconsolidated subsidiaries — — (8) Valuation allowance (1) (5) 16 Audit Resolutions (20) — — Other (1) (2) (3) Total $ 102 $ 231 $ 76 For the year ended December 31, 2024, the increase in the non-deductible expenses from prior periods is primarily related to the non-deductible portion of our repurchased Convertible Notes transactions. We also utilized a portion of our capital loss, and therefore released the associated portion of valuation allowance against it. In addition, our tax expense decreased by approximately $20 million as a result of favorable audit resolutions. For the year ended December 31, 2023, we utilized a portion of our capital loss, and therefore released the associated portion of the valuation allowance against it. For the year ended December 31, 2022, we increased our reserve for Internal Revenue Code (IRC) Section 199 deductions by approximately $4 million as a result of an unfavorable court ruling. In addition, we recorded an income tax benefit (deferred tax asset) of approximately $8 million related to the initial recognition of the basis difference in an unconsolidated subsidiary, against which we recorded a $16 million valuation allowance as of December 31, 2022. The following table provides the significant components of Deferred tax assets and liabilities as of December 31: 2024 2023 (Millions) Deferred tax assets Deferred revenue $ 12 $ 14 Allowance for credit losses 534 554 Net operating loss carryforwards and other carryforwards 48 51 Operating lease liabilities 29 34 Research & development expenses 53 36 Accrued expenses and other 87 79 Total deferred tax assets 763 768 Valuation allowance (19) (21) Deferred tax assets, net of valuation allowance 744 747 Deferred tax liabilities Deferred income $ 2 $ 73 Depreciation — 12 Right of use assets 19 22 Intangible assets 15 11 Total deferred tax liabilities 36 118 Net deferred tax assets $ 708 $ 629 Amounts recognized on the Consolidated Balance Sheets: Other assets $ 708 $ 629 As of December 31, 2024, included in our U.S. tax returns are approximately $113 million of U.S. federal net operating loss carryovers (NOLs) and federal capital losses of approximately $48 million to offset capital gains. With the exception of NOLs generated after December 31, 2017, these attributes expire at various times through the year 2033. As of December 31, 2024, we have state NOLs of approximately $233 million and state credits of approximately $1 million, both available to offset future state taxable income, as well as state capital losses of approximately $15 million to offset capital gains. With the exception of some state NOLs generated after December 31, 2017, these NOLs, credits and capital losses will expire at various times through the year 2042. As of December 31, 2024, we have tax credits in foreign jurisdictions of approximately $4 million available to offset future tax liabilities. These credits expire at various times through the year 2039. As well, in 2024 we recorded a tax expense of approximately $7 million in Additional paid-in capital related to the tax impact of the repurchased Convertible Notes, specifically, the write-off of the associated deferred tax asset. In addition, in 2023 we recorded a tax benefit of approximately $9 million in Additional paid-in capital to establish the deferred tax asset associated with the Capped Call transactions, which continue to remain outstanding. We use the portfolio approach relating to the release of stranded tax effects recorded in Accumulated other comprehensive loss. The following table presents changes in unrecognized tax benefits: (Millions) Balance as of December 31, 2021 $ 247 Increases related to prior years’ tax positions 8 Decreases related to prior years’ tax positions (25) Increases related to current year tax positions 14 Settlements during the period (2) Balance as of December 31, 2022 $ 242 Increases related to prior years’ tax positions 1 Decreases related to prior years’ tax positions (11) Increases related to current year tax positions 13 Settlements during the period (10) Lapses of applicable statutes of limitations (20) Balance as of December 31, 2023 $ 215 Increases related to prior years’ tax positions 1 Decreases related to prior years’ tax positions (40) Increases related to current year tax positions 9 Settlements during the period (21) Lapses of applicable statutes of limitations (10) Balance as of December 31, 2024 $ 154 We recognize potential accrued interest and penalties related to unrecognized tax benefits in Provision for income taxes. We have potential cumulative interest and penalties with respect to unrecognized tax benefits of approximately $86 million, $84 million and $74 million as of December 31, 2024, 2023 and 2022, respectively. For those same years we recorded approximately a $2 million expense, $9 million expense and $1 million benefit, respectively, in Provision for income taxes for potential interest and penalties for unrecognized tax benefits. As of December 31, 2024, 2023 and 2022, we had unrecognized tax benefits of approximately $200 million, $226 million and $238 million, respectively, that, if recognized, would impact the effective tax rate. We do not anticipate a significant change to the total amount of unrecognized tax benefits over the next twelve months. We file income tax returns in U.S. federal, state and foreign jurisdictions, as applicable. U.S. federal income tax returns are no longer subject to examination for years before 2015, and with a few exceptions, state and local income tax returns are no longer subject to examination for years before 2015. Foreign income tax returns are no longer subject to examination for years before 2018.

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE Basic earnings (losses) per share (EPS) is based only on the weighted average number of common shares outstanding, excluding any dilutive effects of unvested restricted stock awards or other dilutive securities. Diluted EPS is based on (i) the weighted average number of common and potentially dilutive common shares (unvested restricted stock awards outstanding during the year), pursuant to the Treasury Stock method, and (ii) the potential conversion of the Convertible Notes, pursuant to the If-converted method. The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the years ended December 31: 2024 2023 2022 (Millions, except per share amounts) Numerator Income from continuing operations $ 279 $ 737 $ 224 Loss from discontinued operations, net of income taxes (1) (2) (19) (1) Net income $ 277 $ 718 $ 223 Denominator Weighted average common stock outstanding – basic 49.6 49.8 49.9 Weighted average effect of dilutive securities Add: net effect of dilutive unvested restricted stock awards (2) 0.7 0.2 0.1 Add: dilutive effect of Convertible Notes (3)(4) 0.1 0.0 0.0 Weighted average common stock outstanding – diluted 50.4 50.0 50.0 Basic EPS Income from continuing operations $ 5.63 $ 14.79 $ 4.48 Loss from discontinued operations $ (0.05) $ (0.40) $ (0.01) Net income per share $ 5.58 $ 14.39 $ 4.47 Diluted EPS Income from continuing operations $ 5.54 $ 14.74 $ 4.47 Loss from discontinued operations $ (0.05) $ (0.40) $ (0.01) Net income per share $ 5.49 $ 14.34 $ 4.46 ______________________________ (1) Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements. (2) As the effect would have been anti-dilutive, for the years ended December 31, 2024, 2023 and 2022, approximately 0.6 million, 1.2 million, and 0.9 million, respectively, restricted stock awards were excluded from each calculation of weighted average dilutive common shares. (3) Holders of the Convertible Notes may convert their notes under certain conditions until March 15, 2028, and on or after such date without condition. Upon any such conversion, we will repay the aggregate principal amount of the Convertible Notes in cash, and pay or deliver, as the case may be, cash, shares of our common stock or a combination of both (at our election), in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes. At our option, we may redeem for cash, all or a portion of the Convertible Notes on or after June 21, 2026, and before the 51st scheduled trading day before the maturity date, but only if the closing price of our common stock reaches specified targets as defined in the indenture governing the Convertible Notes. We may also, from time to time, retire or purchase all or a portion of the outstanding Convertible Notes through cash purchases or exchanges for other securities, in open market purchases, tender offers, privately negotiated transactions or otherwise. (4) In connection with the issuance of the Convertible Notes, we entered into privately negotiated Capped Calls with certain financial institution counterparties. These transactions are expected generally to reduce potential dilution to our common stock upon any conversion of Convertible Notes and/or offset certain cash payments we may be required to make in excess of the principal amount of the Convertible Notes upon conversion, redemption or repurchase thereof, with such reduction and/or offset subject to a cap of $61.48 per share. Diluted weighted average common stock does not include the impact of the Capped Calls we entered into concurrently with the issuance of the Convertible Notes, as the effect would have been anti-dilutive. If shares were delivered to us under the Capped Calls, those shares would offset, up to the cap, the dilutive effect of the shares that we would issue upon conversion of the Convertible Notes.

PARENT COMPANY FINANCIAL STATEM

PARENT COMPANY FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
PARENT COMPANY FINANCIAL STATEMENTS	PARENT COMPANY FINANCIAL STATEMENTS The following Parent Company financial statements are provided in accordance with the rules of the SEC, which require such disclosure when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets. Certain of our subsidiaries may be restricted in distributing cash or other assets to the Parent Company, which could be utilized to service our indebtedness. The stand-alone parent-only financial statements are presented below. Parent Company – Condensed Balance Sheets December 31, 2024 2023 (Millions) Assets Cash and cash equivalents $ 21 $ 2 Investment in subsidiaries 3,195 3,615 Intercompany receivables, net 773 612 Other assets 123 147 Total assets $ 4,112 $ 4,376 Liabilities Long-term and other debt $ 999 $ 1,394 Other liabilities 62 64 Total liabilities 1,061 1,458 Stockholders’ equity 3,051 2,918 Total liabilities and stockholders’ equity $ 4,112 $ 4,376 Parent Company – Condensed Statements of Income Years Ended December 31, 2024 2023 2022 (Millions) Total interest income $ 11 $ 12 $ 11 Total interest expense 116 111 107 Net interest expense (105) (99) (96) Dividends from subsidiaries 910 1,063 382 Loss from equity method investment — (6) (44) Total net interest and non-interest income 805 958 242 Total non-interest expenses 121 12 1 Income before income taxes and equity in undistributed net income of subsidiaries 684 946 241 Benefit for income taxes 38 31 22 Income before equity in undistributed net income of subsidiaries 722 977 263 Equity in undistributed net loss of subsidiaries (445) (259) (40) Net income $ 277 $ 718 $ 223 Parent Company – Condensed Statements of Comprehensive Income Years Ended December 31, 2024 2023 2022 (Millions) Net income $ 277 $ 718 $ 223 Other comprehensive loss, net of tax — — (3) Total comprehensive income, net of tax $ 277 $ 718 $ 220 Parent Company – Condensed Statements of Cash Flows Years Ended December 31, 2024 2023 2022 (Millions) Net cash used in operating activities $ (182) $ (422) $ (219) Cash flows from investing activities: Dividends received 910 1,063 383 Net cash provided by investing activities 910 1,063 383 Cash flows from financing activities: Borrowings under debt agreements 300 1,401 218 Repayments of borrowings under debt agreements (894) (1,882) (319) Payment of deferred financing costs (10) (45) — Payment of capped call transactions — (39) — Dividends paid (43) (42) (43) Repurchase of common stock (55) (35) (12) Other (7) (2) (3) Net cash used in financing activities (709) (644) (159) Change in cash, cash equivalents and restricted cash 19 (3) 5 Cash, cash equivalents and restricted cash at beginning of year 2 5 — Cash, cash equivalents and restricted cash at end of year $ 21 $ 2 $ 5 Non-cash financing activities related to the Parent Company – Condensed Statements of Cash Flows for the year ended December 31, 2024 include the impact to Additional paid-in capital related to the debt issuance costs from the repurchased Convertible Notes. Non-cash investing activities related to the Parent Company – Condensed Statements of Cash Flows for the year ended December 31, 2023 include a $318 million non-cash dividend in the form of an intercompany return of capital from Bread Financial Payments, Inc. to the Parent Company. Non-cash investing and financing activities related to the Parent Company – Condensed Statements of Cash Flows for the year ended December 31, 2022 included the dissolution of a subsidiary, ADS Foreign Holdings, Inc.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net (loss) income	$ 277	$ 718	$ 223

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Insider Trading Policies and Pr

Insider Trading Policies and Procedures	12 Months Ended
	Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Cybersecurity Risk Management a

Cybersecurity Risk Management and Strategy Disclosure	12 Months Ended
	Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]	As noted above under “Risk Management”, we maintain an information and cybersecurity risk management program, which is led by our CISO and is designed to protect the confidentiality, integrity and availability of critical information and information systems. The program is designed based on the NIST CSF ; provided that t his does not imply that we meet any particular technical standards, specifications or requirements, only that we use the NIST CSF as a guide to help us identify, assess and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is integrated into our overall ERM program, and shares common methodologies, reporting channels and governance processes that apply across the ERM program to other legal, compliance, strategic, operational, and financial risk areas. Our cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment; • a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; • the use of external service providers, where appropriate, to assess, test, train or otherwise assist with aspects of our security controls; • security tools deployed in the IT environment for protection against and monitoring for suspicious activity; • cybersecurity awareness training of our employees, including incident response personnel, and senior management; • a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and • a third-party risk management process for service providers, suppliers, and vendors. We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations or financial condition. We face certain ongoing risks from cybersecurity threats such as loss or theft of data, ransomware or other disruptive attacks from financially motivated bad actors, and third-party supply chain issues that, if realized, are reasonably likely to materially affect us, including our operations, business strategy, results of operations, and financial condition. For further discussion, see “Item 1A. Risk Factors – Risk Management” and “Item 1A. Risk Factors – Cybersecurity, Technology and Vendor Risks”.
Cybersecurity Risk Management Processes Integrated [Flag]	true
Cybersecurity Risk Management Processes Integrated [Text Block]	The program is designed based on the NIST CSF ; provided that t his does not imply that we meet any particular technical standards, specifications or requirements, only that we use the NIST CSF as a guide to help us identify, assess and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is integrated into our overall ERM program, and shares common methodologies, reporting channels and governance processes that apply across the ERM program to other legal, compliance, strategic, operational, and financial risk areas. Our cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment; • a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; • the use of external service providers, where appropriate, to assess, test, train or otherwise assist with aspects of our security controls; • security tools deployed in the IT environment for protection against and monitoring for suspicious activity; • cybersecurity awareness training of our employees, including incident response personnel, and senior management; • a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and • a third-party risk management process for service providers, suppliers, and vendors.
Cybersecurity Risk Management Third Party Engaged [Flag]	true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag]	true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag]	false
Cybersecurity Risk Board of Directors Oversight [Text Block]	Cybersecurity Governance Our Board of Directors considers cybersecurity risk to be a critical part of its risk oversight function and has delegated to the Risk & Technology Committee primary oversight of cybersecurity and other information technology risks. The Audit Committee also reviews cybersecurity matters as part of its oversight of major financial risk exposures . The Risk & Technology Committee oversees management’s implementation of our cybersecurity risk management program, and receives regular reports from management on our cybersecurity risks. In addition, management updates the Risk & Technology Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential. The Risk & Technology Committee periodically reports to the Board of Directors regarding its activities, including those related to cybersecurity. As part of its oversight of major financial risk exposures , the Audit Committee also reviews with management and our internal and independent auditors our risk assessments and risk management program, including with respect to cybersecurity. Board members receive presentations on cybersecurity topics from our CISO or external experts as part of the Board’s continuing education on topics that impact public companies. Our management team, including our CISO, CRO and CORO, is responsible for assessing and managing our material risks from cybersecurity threats. Our management team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants. Our CISO works closely with our CRO and CORO, who are responsible for providing effective oversight and challenge to the activities of our CISO. Our CISO, who reports to our Executive Vice President and Chief Technology Officer, has 25 years of cybersecurity and information security experience across a number of regulated industries, including financial services, healthcare and defense and national security. Our CISO has been a Certified Information System Security Professional (CISSP) for over 20 years and serves on the governing body of various organizations focused on technology and cybersecurity, including as an Advisory Council Member to the Harvard Business Review and a Governing Board Member of Evanta, an organization of peer-CISOs. Each of our CRO (who reports to our Chief Executive Officer) and CORO (who reports to our CRO) has over 20 years of financial services experience in operations and risk management. Our management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, and, as appropriate, provides briefings from internal security personnel, threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us, and alerts and reports produced by security tools deployed in the IT environment.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]	Our Board of Directors considers cybersecurity risk to be a critical part of its risk oversight function and has delegated to the Risk & Technology Committee primary oversight of cybersecurity and other information technology risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]	The Risk & Technology Committee oversees management’s implementation of our cybersecurity risk management program, and receives regular reports from management on our cybersecurity risks. In addition, management updates the Risk & Technology Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Cybersecurity Risk Role of Management [Text Block]	The Audit Committee also reviews cybersecurity matters as part of its oversight of major financial risk exposures . The Risk & Technology Committee oversees management’s implementation of our cybersecurity risk management program, and receives regular reports from management on our cybersecurity risks. In addition, management updates the Risk & Technology Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Cybersecurity Risk Management Positions or Committees Responsible [Flag]	true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]	The Risk & Technology Committee periodically reports to the Board of Directors regarding its activities, including those related to cybersecurity. As part of its oversight of major financial risk exposures , the Audit Committee also reviews with management and our internal and independent auditors our risk assessments and risk management program, including with respect to cybersecurity. Board members receive presentations on cybersecurity topics from our CISO or external experts as part of the Board’s continuing education on topics that impact public companies. Our management team, including our CISO, CRO and CORO, is responsible for assessing and managing our material risks from cybersecurity threats. Our management team has primary responsibility for our overall cybersecurity risk
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]	. Each of our CRO (who reports to our Chief Executive Officer) and CORO (who reports to our CRO) has over 20 years of financial services experience in operations and risk management.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]	The Risk & Technology Committee periodically reports to the Board of Directors regarding its activities, including those related to cybersecurity. As part of its oversight of major financial risk exposures , the Audit Committee also reviews with management and our internal and independent auditors our risk assessments and risk management program, including with respect to cybersecurity. Board members receive presentations on cybersecurity topics from our CISO or external experts as part of the Board’s continuing education on topics that impact public companies.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag]	true

DESCRIPTION OF BUSINESS, BASI_2

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	BASIS OF PRESENTATION
Principles of Consolidation	Principles of Consolidation The accompanying audited Consolidated Financial Statements include the accounts of BFH and all subsidiaries in which we have a controlling financial interest. For voting interest entities, a controlling financial interest is determined when we are able to exercise control over the operating and financial decisions of the investee. For variable interest entities (VIEs), which are themselves determined based on the amount and characteristics of the equity in the entity, we have a controlling financial interest when we are determined to be the primary beneficiary. The primary beneficiary is the party having both the power to exercise control over the activities that most significantly impact the VIE’s financial performance, as well as the obligation to absorb the losses of, or the right to receive the benefits from, the VIE that could potentially be significant to that VIE. We are the primary beneficiary of our master securitization trusts and therefore consolidate these securitization trusts within our audited Consolidated Financial Statements. In cases where we do not have a controlling financial interest, but we are able to exert significant influence over the operating and financial decisions of the entity, we account for such investments under the equity method. All intercompany transactions have been eliminated.
Segment Reporting	Segment Reporting We operate as a single reportable segment, where we manage our business and assess financial performance on a consolidated basis. Our single reportable segment's primary source of revenue is from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners. Our primary expense is Provision for credit losses driven by Net principal losses from our various credit card and other loan products. Our key metrics include the growth in and yield on our credit card and other loan portfolios, Net interest margin, operating leverage and Efficiency ratio, our various capital ratios, and credit-related ratios such as our Delinquency rate, Net principal loss rate and Reserve rate. Our Chief Operating Decision Maker (CODM) regularly receives and reviews consolidated operating results and uses our key metrics to evaluate the performance of the Company, focusing primarily on Income from continuing operations before income taxes from the Consolidated Statements of Income, to make decisions regarding the allocation of resources and assessment of performance. The function of CODM is performed by our President and Chief Executive Officer.
Amounts Based on Estimates and Judgments	Amounts Based on Estimates and Judgments The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments about future events that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the audited Consolidated Financial Statements, as well as the reported amounts of income and expenses during the reporting periods. The most significant of those estimates and judgments relate to our Allowance for credit losses, Provision for income taxes and Goodwill; actual results could differ.
Revenue	Consolidated Statements of Income Our primary source of revenue is from Interest and fees on loans from our various credit card and other loan products, and to a lesser extent from contractual relationships with our brand partners. The following describes our recognition policies across the various sources of revenue we earn. Interest and fees on loans : Represents revenue earned on customer accounts owned by us, and is recognized in the period earned in accordance with the contractual provisions of the credit agreements. Interest and fees continue to accrue on all accounts, except in limited circumstances, until the account balance and all related interest and fees are paid or charged-off, which happens in the month during which an account becomes 180 days past due for credit card loans or 120 days past due for other loans, which consist primarily of our pay-over-time products, which include installment loans and “split-pay” offerings. Charge-offs for unpaid interest and fees, as well as any adjustments to the Allowance for credit losses associated with unpaid interest and fees, are recorded as a reduction of Interest and fees on loans. Direct loan origination costs on Credit card and other loans are deferred and amortized on a straight-line basis over a one-year period for credit card loans, or for other loans, over the life of the loan; and are recorded as a reduction of Interest and fees on loans. As of December 31, 2024 and 2023, the remaining unamortized deferred direct loan origination costs were $45 million and $60 million, respectively, and included in Total credit card and other loans. Interest on cash and investment securities: Represents revenue earned on cash and cash equivalents as well as investments in debt securities, and is recognized in the period earned. Interchange revenue, net of retailer share arrangements: Represents revenue earned from merchants, including our brand partners, and cardholders from processing and servicing accounts, and is recognized as such services are performed. Revenue earned from merchants, including our brand partners, primarily consists of merchant and interchange fees, which are transaction fees charged to the merchant for the processing of credit card transactions and are recognized at the time the cardholder transaction occurs. Costs of cardholder reward arrangements are recognized when the rewards are earned by the cardholders and are generally classified as a reduction of revenue with the related liability included in Other liabilities on the Consolidated Balance Sheets. Our credit card program agreements may also provide for royalty payments, or retailer share arrangements, to our brand partners based on purchase volume or if certain contractual incentives are met, such as if the economic performance of the program exceeds a contractually defined threshold, or for new accounts acquired. These amounts are recorded as a reduction of revenue in the period incurred. Other non-interest income: Represents ancillary revenues earned from cardholders, consisting primarily of monthly fees from the purchase of certain payment protection products, which are recognized based on the average cardholder account balance over time and can be cancelled at any point by the cardholder, as well as gains or losses on the sales of loan portfolios, and losses from our equity method investment in Loyalty Ventures Inc. (LVI). Contract costs: We recognize as an asset contract costs, such as up-front payments made pursuant to contractual agreements with brand partners. Such costs are deferred and recognized on a straight-line basis over the term of the related agreement. Depending on the nature of the contract costs, the amortization is recorded as a reduction to Non-interest income, or as a charge to Non-interest expenses, in the Consolidated Statements of Income. Amortization of contract costs recorded as a reduction of Interchange revenue, net of retailer share arrangements, was $51 million, $59 million and $72 million for the years ended December 31, 2024, 2023 and 2022, respectively; amortization of contract costs recorded across various Non-interest expense categories totaled $12 million in each of those same years. As of December 31, 2024 and 2023, the remaining unamortized contract costs were $228 million and $285 million, respectively, and are included in Other assets on the Consolidated Balance Sheets. We perform an impairment assessment when events or changes in circumstances indicate that the carrying amount of our contract costs may not be recoverable. No impairment charges were recognized during either of the years ended December 31, 2024 or 2022. However, for the year ended December 31, 2023 we recognized a $7 million impairment charge in Other non-interest expenses in our Consolidated Statements of Income for certain of our deferred contract costs. Interest expense: Represents interest incurred primarily to fund Credit card and other loans, general corporate purposes and liquidity needs, and is recognized as incurred. Interest expense is divided between Interest on deposits, which relates to interest expense on Deposits taken from customers, and Interest on borrowings, which relates to interest expense on our Long-term and other debt. Card and processing expenses: Primarily represents costs incurred in relation to customer service activities, including embossing, and postage and mailing, as well as fraud and credit bureau inquiries. These costs are expensed as incurred. Information processing and communication expenses: Represents costs incurred in relation to data processing, and software license and maintenance charges. These costs are expensed as incurred. Marketing expenses: Represents costs incurred in campaign development and initial placement of advertising, which are expensed in the period in which the advertising first takes place. Other marketing expenses are expensed as incurred.
Cash and Cash Equivalents and Restricted Cash	Cash and cash equivalents:
Property and Equipment	Property and equipment
Property and Equipment: Impairment	We review long-lived assets and asset groups for impairment whenever events or circumstances indicate their carrying amounts may not be recoverable. An impairment is recognized if the carrying amount is not recoverable and exceeds the asset or asset group’s fair value. No impairment was recognized during the years ended December 31, 2024, 2023 and 2022.
Concentrations	CONCENTRATIONS We depend on a limited number of large partner relationships for a significant portion of our revenue. As of and for the year ended December 31, 2024, our five largest credit card programs (based on Total net interest and non-interest income) accounted for approximately 48% of our Total net interest and non-interest income excluding the gain on sale and 38% of our End-of-period credit card and other loans. In particular, our programs with (alphabetically) Signet Jewelers, Ulta Beauty and Victoria’s Secret & Co. and its retail affiliates, each accounted for 10% or more of our Total net interest and non-interest income for the year ended December 31, 2024. A decrease in business from, or the loss of, any of our significant partners for any reason, could have a material adverse effect on our business.
Recently Adopted and Recently Issued Accounting Standards	RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS Accounting Standards Recently Adopted Standard Guidance Timing and Financial Statement Impact Investments – Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Expands the election to apply the proportional amortization method of accounting to tax credit investments beyond low-income-housing tax credit investments, when certain conditions are met. Adopted under the modified retrospective method on January 1, 2024, which resulted in an insignificant decrease to retained earnings. Adoption did not have a significant impact on our results of operations, financial position, regulatory risk-based capital, or on our operational processes, controls and governance in support of the new guidance. Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023 Requires interim and annual disclosure of significant segment expense categories and amounts that are regularly provided to the CODM, as well as disclosure of the aggregate amount and description of other segment items beyond significant segment expenses. Adopted effective with this report. Adoption did not significantly impact our disclosures for our single reportable segment, our financial reporting, or our operational processes, controls, and governance in support of the new guidance. Accounting Standards Recently Issued but Not Yet Adopted Standard Guidance Timing and Financial Statement Impact Income Taxes: Improvements to Income Tax Disclosures Issued December 2023 Requires greater disaggregation of rate reconciliation and income taxes paid information, as well as other changes intended to enhance the transparency and decision-usefulness of income tax disclosures. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2025. Early adoption is permitted, although we did not early adopt. Adoption will require enhancements to our income tax disclosures but is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance. Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November 2024 Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. Effective January 1, 2026. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting as the new guidance aligns with our recent accounting for the repurchases of certain of our Convertible Senior Notes due 2028. Additionally, adoption is not expected to have a significant impact on our operational processes, controls and governance in support of the new guidance. Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November 2024 Requires disaggregated disclosure of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories in disclosures within the notes to the Consolidated Financial Statements. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.
Credit Card and Other Loans	Our payment and lending solutions result in the origination of Credit card and other loans, which are recorded at the time a borrower enters into a point-of-sale transaction with a merchant. Credit card loans represent revolving lines of credit and have a range of terms that include credit limits, interest rates and fees, which can be revised over time based on new information about the cardholder, in accordance with applicable regulations and the governing terms and conditions. Cardholders choosing to make a payment of less than the full balance due, instead of paying in full, are subject to finance charges and are required to make monthly payments based on pre-established amounts. Other loans, which consist primarily of our pay-over-time products, which include installment loans and “split-pay” offerings, have a range of fixed terms such as interest rates, fees and repayment periods, and borrowers are required to make pre-established monthly payments over the term of the loan in accordance with the applicable terms and conditions. Credit card and other loans include principal and any related accrued interest and fees and are presented on the Consolidated Balance Sheets net of the Allowance for credit losses. We continue to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off. We generally classify our Credit card and other loans as held for investment. We sell a majority of our credit card loans originated by Comenity Bank (CB) and by Comenity Capital Bank (CCB), to certain of our master securitization trusts (the Trusts), which are consolidated VIEs, and therefore these loans are restricted for securitization investors. All new originations of Credit card and other loans are determined to be held for investment at origination because we have the intent and ability to hold them for the foreseeable future. In determining what constitutes the foreseeable future, we consider the average life and homogenous nature of our Credit card and other loans. In assessing whether our Credit card and other loans continue to be held for investment, we also consider capital levels and scheduled maturities of funding instruments used. The assertion regarding the intent and ability to hold Credit card and other loans for the foreseeable future can be made with a high degree of certainty given the maturity distribution of our direct-to-consumer (DTC or retail) deposits and other funding instruments; the demonstrated ability to replace maturing time-based deposits and other borrowings with new deposits or borrowings; and historic payment activity on Credit card and other loans. Due to the homogenous nature of our credit card loans, amounts are classified as held for investment on a brand partner portfolio basis. From time to time certain credit card loans are classified as held for sale, as determined on a brand partner portfolio basis. We carry held for sale loans at the lower of aggregate cost or fair value and continue to recognize finance charges on an accrual basis. Cash flows associated with Credit card and other loans originated or purchased for investment are classified as Cash flows from investing activities, regardless of any subsequent change in intent and ability.
Financing Receivable	Credit Card Loans We use a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. We have evaluated multiple risk characteristics across our credit card loans portfolio, and determined delinquency status and overall credit quality to be the most significant characteristics for estimating expected credit losses. To estimate our Allowance for credit losses, we segment our credit card loans on the basis of delinquency status, credit quality risk score and product. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. In determining the estimated life of our credit card loans, payments were applied to the measurement date balance with no payments allocated to future purchase activity. We use a combination of First In First Out and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) methodologies to model balance paydown.
Transfers of Financial Assets	SECURITIZATIONS We account for transfers of financial assets as either sales or financings. Transfers of financial assets that are accounted for as a sale are removed from the Consolidated Balance Sheets with any realized gain or loss reflected in the Consolidated Statements of Income during the period in which the sale occurs. Transfers of financial assets that are not accounted for as a sale are treated as a financing. We regularly securitize the majority of our credit card loans through the transfer of those loans to one of our Trusts. We perform the decision making for the Trusts, as well as servicing the cardholder accounts that generate the credit card loans held by the Trusts. In our capacity as a servicer, we administer the loans, collect payments and charge-off uncollectible balances. Servicing fees are earned by a subsidiary, which are eliminated in consolidation. The Trusts are consolidated VIEs because they have insufficient equity at risk to finance their activities – the issuance of debt securities and notes, collateralized by the underlying credit card loans. Because we perform the decision making and servicing for the Trusts, we have the power to direct the activities that most significantly impact the Trusts’ economic performance (the collection of the underlying credit card loans). In addition, we hold all of the variable interests in the Trusts, with the exception of the liabilities held by third-parties. These variable interests provide us with the right to receive benefits and the obligation to absorb losses, which could be significant to the Trusts. As a result of these considerations, we are deemed to be the primary beneficiary of the Trusts and therefore consolidate the Trusts. The Trusts issue debt securities and notes, which are non-recourse to us. The collections on the securitized credit card loans held by the Trusts are available only for payment of those debt securities and notes, or other obligations arising in the securitization transactions. For our securitized credit card loans, during the initial phase of a securitization reinvestment period, we generally retain principal collections in exchange for the transfer of additional credit card loans into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors’ share of principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum.
Goodwill	Goodwill was $634 million as of December 31, 2024, 2023 and 2022. No goodwill impairment was recognized during any of those years, and there were no accumulated goodwill impairment losses as of December 31, 2024.
Intangible Assets, Net	Our identifiable intangible assets consist of both amortizable and non-amortizable intangible assets. Definite-lived intangible assets are subject to amortization and are amortized on a straight-line basis over their estimated useful lives; indefinite-lived intangible assets are not amortized. We review long-lived assets and asset groups, including intangible assets, for impairment whenever events and circumstances indicate their carrying amounts may not be recoverable; recognizing an impairment if the carrying amount is not recoverable and exceeds the fair value of the asset or asset group.
Leases	We have various operating leases for facilities and equipment which are recorded as lease-related assets (i.e., right-of-use assets) and liabilities for those leases with terms greater than 12 months. We do not have any finance leases. We determine if an arrangement is a lease or contains a lease at inception, and we do not separate lease and non-lease components. Right-of-use assets are recognized as of the lease commencement date at amounts equal to the respective lease liabilities, adjusted for any prepaid lease payments, initial direct costs and lease incentives. Our lease liabilities are recognized as of the lease commencement date, or upon modification of the lease, at the present value of the contractual fixed lease payments, discounted using our incremental borrowing rate (as the rate implicit in the lease is typically not readily determinable). Operating lease expense is recognized on a straight-line basis over the lease term, while variable lease payments are expensed as incurred.
Stock Compensation Expense	Stock-based compensation expense is measured at the grant date of the award, based on the fair value of the award, and is recognized ratably over the requisite service period. Stock-based compensation expense recognized in Employee compensation and benefits expense in the Consolidated Statements of Income for the years ended December 31, 2024, 2023 and 2022 was $54 million , $44 million and $33 million, respectively, with corresponding income tax benefits of $9 million , $8 million and $5 million, respectively.
Income Taxes	We file income tax returns in federal, state, local and foreign jurisdictions, as applicable. Provisions for current income tax liabilities are calculated and accrued on income and expense amounts expected to be included in the income tax returns for the current year. Income taxes reported in earnings also include deferred income tax provisions and provisions for uncertain tax positions.
Earnings Per Share	Basic earnings (losses) per share (EPS) is based only on the weighted average number of common shares outstanding, excluding any dilutive effects of unvested restricted stock awards or other dilutive securities. Diluted EPS is based on (i) the weighted average number of common and potentially dilutive common shares

DESCRIPTION OF BUSINESS, BASI_3

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Schedule of other significant accounting policies	We present our accounting policies within the Notes to the audited Consolidated Financial Statements to which they relate; the table below lists such accounting policies and the related Notes. The remaining significant accounting policies applied are included following the table. Significant Accounting Policy Note Number Note Title Credit Card and Other Loans Note 2 Credit Card and Other Loans Allowance for Credit Losses Note 3 Allowance for Credit Losses Transfers of Financial Assets Note 4 Securitizations Investments Note 5 Investments Goodwill Note 6 Goodwill and Intangible Assets, Net Intangible Assets, Net Note 6 Goodwill and Intangible Assets, Net Leases Note 8 Leases Derivatives Note 12 Derivatives and Hedging Activities Stock Compensation Expense Note 19 Stockholders' Equity Income Taxes Note 20 Income Taxes Earnings Per Share Note 21 Earnings Per Share
New Accounting Pronouncements	Accounting Standards Recently Adopted Standard Guidance Timing and Financial Statement Impact Investments – Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023 Expands the election to apply the proportional amortization method of accounting to tax credit investments beyond low-income-housing tax credit investments, when certain conditions are met. Adopted under the modified retrospective method on January 1, 2024, which resulted in an insignificant decrease to retained earnings. Adoption did not have a significant impact on our results of operations, financial position, regulatory risk-based capital, or on our operational processes, controls and governance in support of the new guidance. Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023 Requires interim and annual disclosure of significant segment expense categories and amounts that are regularly provided to the CODM, as well as disclosure of the aggregate amount and description of other segment items beyond significant segment expenses. Adopted effective with this report. Adoption did not significantly impact our disclosures for our single reportable segment, our financial reporting, or our operational processes, controls, and governance in support of the new guidance. Accounting Standards Recently Issued but Not Yet Adopted Standard Guidance Timing and Financial Statement Impact Income Taxes: Improvements to Income Tax Disclosures Issued December 2023 Requires greater disaggregation of rate reconciliation and income taxes paid information, as well as other changes intended to enhance the transparency and decision-usefulness of income tax disclosures. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2025. Early adoption is permitted, although we did not early adopt. Adoption will require enhancements to our income tax disclosures but is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance. Debt – Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments Issued November 2024 Improves the relevance and consistency in application of the induced conversion guidance for (a) convertible debt instruments with cash conversion features and (b) debt instruments that are not currently convertible. Effective January 1, 2026. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting as the new guidance aligns with our recent accounting for the repurchases of certain of our Convertible Senior Notes due 2028. Additionally, adoption is not expected to have a significant impact on our operational processes, controls and governance in support of the new guidance. Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures: Disaggregation of Income Statement Expenses Issued November 2024 Requires disaggregated disclosure of certain income statement expenses on the face of the Consolidated Statements of Income, and further disaggregation of certain expense captions into specified categories in disclosures within the notes to the Consolidated Financial Statements. Effective beginning with our Annual Report on Form 10-K for the year ending December 31, 2027, and effective for interim reporting periods beginning in 2028. Early adoption is permitted, although we do not plan to early adopt. Adoption is not expected to have a significant impact on our financial reporting, or on our operational processes, controls and governance in support of the new guidance.

CREDIT CARD AND OTHER LOANS (Ta

CREDIT CARD AND OTHER LOANS (Tables)	12 Months Ended
	Dec. 31, 2024
Receivables [Abstract]
Schedule of components of credit card and other loans	The following table provides Credit card and other loans, as of December 31: 2024 2023 (Millions) Credit card loans $ 18,586 $ 18,999 Other loans 310 334 Total credit card and other loans (1)(2) 18,896 19,333 Less: Allowance for credit losses (2,241) (2,328) Credit card and other loans, net $ 16,655 $ 17,005 __________________________________ (1) Includes $12.4 billion and $12.8 billion of Credit card and other loans available to settle obligations of consolidated VIEs as of December 31, 2024 and 2023, respectively. (2) Includes $378 million and $371 million of accrued interest and fees that have not yet been billed to cardholders as of December 31, 2024 and 2023, respectively.
Schedule of aging analysis of total credit card and other loans portfolio at amortized cost	The following table provides the delinquency trends of our Credit card and other loans portfolio, based on the amortized cost, as of the dates presented: Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1) 31 to 60 Days Past Due 61 to 90 Days Past Due 91 or more Days Past Due Total Total Total (Millions) December 31, 2024 $ 369 $ 288 $ 730 $ 1,387 $ 17,105 $ 18,492 December 31, 2023 $ 422 $ 323 $ 809 $ 1,554 $ 17,373 $ 18,927 ______________________________ (1) Other loans delinquencies have been included with credit card loan delinquencies in the table above, as amounts were insignificant as of each period presented. As permitted by GAAP, the primary difference between the amortized cost basis included in the table above and the carrying value of our Credit card and other loans relates to the exclusion of unbilled finance charges and fees from the amortized cost basis. As of December 31, 2024 and 2023, accrued interest and fees that have not yet been billed to cardholders were $378 million and $371 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets. The following table provides the performance of our credit card loans that were modified within the 12 months prior to the dates presented and remain in a Loan Modification program as of the dates presented: Aging Analysis of Delinquent Amortized Cost Loan Modifications – Credit Card Loans 31 to 60 Days Past Due 61 to 90 Days Past Due 91 or more Days Past Due Total Total Total (Millions) December 31, 2024 $ 21 $ 18 $ 22 $ 61 $ 242 $ 303 December 31, 2023 $ 17 $ 16 $ 22 $ 55 $ 214 $ 269
Schedule of composition of obligor credit quality	The following table reflects the distribution of credit card loans by Vantage score as of December 31: Vantage 2024 2023 661 or 601 to 600 or 661 or 601 to 600 or Credit card loans 58 % 27 % 15 % 57 % 27 % 16 %
Schedule of information on credit card loans that are considered troubled debt restructurings	The following table provides information relating to credit card loans to borrowers experiencing financial difficulty that were granted a concession under a Loan Modification program during the years ended December 31: 2024 2023 Account Balances (1) % of Total Credit Card Loans Weighted Average Interest Rate Reduction (% points) Account Balances (1) % of Total Credit Card Loans Weighted Average Interest Rate Reduction (% points) (Millions, except percentages) Credit card loans $ 303 1.7 % 22.0 % $ 269 1.4 % 19.2 % __________________________________ (1) Represents the outstanding balances as of December 31, 2024 and 2023, respectively, of all Loan Modifications undertaken in the past twelve months, for credit card loans that remain in modification programs on December 31, 2024 and 2023, respectively. The outstanding balances include principal, accrued interest and fees. The following table provides additional information regarding credit card Loan Modifications that have subsequently defaulted within 12 months of their modification dates for the years ended December 31; the probability of default is factored into the Allowance for credit losses: 2024 2023 Number of Outstanding Number of Outstanding (Millions, except for Number of modifications) Loan Modifications that subsequently defaulted 15,663 $ 29 14,196 $ 23

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	12 Months Ended
	Dec. 31, 2024
Credit Loss [Abstract]
Schedule of Company's allowance for loan loss	The following table provides our Allowance for credit losses for our Credit card and other loans. The amount of the related Allowance for credit losses on Other loans is insignificant and therefore has been included in the table below for the periods presented: 2024 2023 2022 (Millions) Beginning balance $ 2,328 $ 2,464 $ 1,832 Provision for credit losses (1) 1,397 1,229 1,594 Change in the estimate for uncollectible unpaid interest and fees 5 10 10 Net principal losses (2) (1,489) (1,375) (972) Ending balance $ 2,241 $ 2,328 $ 2,464 ______________________________ (1) Provision for credit losses includes a build/release for the Allowance for credit losses, as well as replenishment of Net principal losses. (2) Net principal losses are presented net of recoveries of $367 million, $332 million and $187 million for the years ended December 31, 2024, 2023 and 2022, respectively. Net principal losses for the years ended December 31, 2023 and 2022 include an adjustment of $10 million and $5 million, respectively, related to the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency; no such adjustment was made in the current period.

SECURITIZATIONS (Tables)

SECURITIZATIONS (Tables)	12 Months Ended
	Dec. 31, 2024
Offsetting [Abstract]
Schedule of securitized credit card receivables, delinquencies and net charge-offs	The following tables provide the total securitized credit card loans, and related delinquencies, and net principal losses of securitized credit card loans for the periods presented: December 31, 2024 December 31, 2023 (Millions) Total credit card loans – available to settle obligations of consolidated VIEs $ 12,408 $ 12,844 Of which: principal amount of credit card loans 91 days or more past due $ 305 $ 323 Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022 (Millions) Net principal losses of securitized credit card loans $ 852 $ 801 $ 554

INVESTMENTS (Tables)

INVESTMENTS (Tables)	12 Months Ended
	Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of Investment	The following table provides a summary of our Investments as of December 31: 2024 2023 (Millions) Investment securities Available-for-sale debt securities $ 170 $ 171 Equity securities 47 46 Total investment securities 217 217 Equity method and other investments 49 36 Total Investments $ 266 $ 253
Schedule of gain (loss) on investments	The table below provides unrealized gains and losses on AFS debt securities as of December 31: 2024 2023 Amortized Unrealized Unrealized Fair Value Amortized Unrealized Unrealized Fair Value (Millions) Available-for-sale securities $ 195 $ — $ (25) $ 170 $ 192 $ — $ (21) $ 171 Total $ 195 $ — $ (25) $ 170 $ 192 $ — $ (21) $ 171
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	The following tables provide information about AFS debt securities in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position, as of December 31: 2024 Less than 12 months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Millions) Available-for-sale securities $ 27 $ — $ 140 $ (25) $ 167 $ (25) Total $ 27 $ — $ 140 $ (25) $ 167 $ (25) 2023 Less than 12 months 12 Months or Greater Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Millions) Available-for-sale securities $ 23 $ — $ 141 $ (21) $ 164 $ (21) Total $ 23 $ — $ 141 $ (21) $ 164 $ (21)

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of finite-lived intangible assets	Intangible assets consisted of the following as of December 31: 2024 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 221 $ (113) $ 108 3-13 years Non-compete agreements 2 (2) — 5 years 223 (115) 108 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 227 $ (115) $ 112 2023 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 231 $ (108) $ 123 5-13 years Non-compete agreements 2 (1) 1 5 years $ 233 $ (109) $ 124 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 237 $ (109) $ 128
Schedule of indefinite-lived intangible assets	Intangible assets consisted of the following as of December 31: 2024 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 221 $ (113) $ 108 3-13 years Non-compete agreements 2 (2) — 5 years 223 (115) 108 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 227 $ (115) $ 112 2023 Gross Accumulated Amortization Net Useful Life (Millions) Definite-Lived Assets Premium on purchased credit card loan portfolios $ 231 $ (108) $ 123 5-13 years Non-compete agreements 2 (1) 1 5 years $ 233 $ (109) $ 124 Indefinite-Lived Assets Tradename 4 — 4 Indefinite life Total intangible assets $ 237 $ (109) $ 128
Schedule of estimated amortization expense related to intangible assets	The estimated amortization expense related to intangible assets for the next five years and thereafter is as follows for the years ending December 31: (Millions) 2025 30 2026 29 2027 24 2028 7 2029 7 Thereafter 11 108

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	12 Months Ended
	Dec. 31, 2024
Other Assets [Abstract]
Schedule of other assets	The following provides a summary of Other assets as of December 31: 2024 2023 (Millions) Deferred tax asset, net $ 708 $ 629 Deferred contract costs (1) 228 285 Accounts receivable, net (2) 145 144 Right-of-use assets – operating leases 87 98 Restricted cash (3) 35 26 Other (4) 200 182 Total other assets $ 1,403 $ 1,364 ______________________________ (1) See Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” for discussion of impairment of certain deferred contract costs. (2) Primarily related to federal, state and foreign income tax receivables (including a tax-related receivable in the amount of approximately $50 million, net, which we are entitled to receive through LVI), and amounts receivable from various brand partners. (3) Restricted cash primarily includes cash restricted for principal and interest repayments of debt issued by our consolidated VIEs, as well as other restricted amounts including cash pledged to collateralize our derivative contracts. (4) Primarily comprised of prepaid expenses and non-income-based tax receivables.

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Schedule of lease cost	Supplemental lease-related cash flow information was as follows for the years ended December 31: 2024 2023 2022 (Millions) Cash paid for amounts included in the measurement of lease liabilities – operating cash flows $ 29 $ 27 $ 23 Right-of-use assets obtained in exchange for operating leases – non-cash $ 9 $ 37 $ —
Schedule of maturities of lease liabilities	Future maturities of our operating lease liabilities, by year, were as follows as of December 31, 2024: (Millions) 2025 $ 24 2026 24 2027 22 2028 20 2029 19 Thereafter 61 Total undiscounted lease liabilities 170 Less: Amount representing interest (42) Total present value of minimum lease payments $ 128

DEPOSITS (Tables)

DEPOSITS (Tables)	12 Months Ended
	Dec. 31, 2024
Other Liabilities Disclosure [Abstract]
Deposit by type	Deposits were categorized as interest-bearing or non-interest-bearing as follows, as of December 31: 2024 2023 (Millions) Interest-bearing $ 13,055 $ 13,594 Non-interest-bearing (including cardholder credit balances) 27 26 Total deposits $ 13,082 $ 13,620 Deposits by deposit type were as follows as of December 31: 2024 2023 (Millions) Savings accounts Direct-to-consumer (retail) $ 3,226 $ 2,863 Wholesale 3,601 3,734 Certificates of deposit Direct-to-consumer (retail) 4,461 3,591 Wholesale 1,767 3,406 Cardholder credit balances 27 26 Total deposits $ 13,082 $ 13,620
Time deposit maturities	The scheduled maturities of certificates of deposit were as follows as of December 31, 2024: (Millions) 2025 (1) $ 4,769 2026 581 2027 660 2028 187 2029 31 Thereafter — Total certificates of deposit $ 6,228 ______________________________ (1)

BORROWINGS OF LONG-TERM AND O_2

BORROWINGS OF LONG-TERM AND OTHER DEBT (Tables)	12 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Schedule of debt	Long-term and other debt consisted of the following as of December 31: Description 2024 2023 Contractual Maturities Interest Rates (Millions, except percentages) Long-term and other debt: Revolving line of credit $ — $ — October 2028 (1) Senior notes due 2026 100 500 January 2026 7.00% Convertible senior notes due 2028 10 316 June 2028 4.25% Senior notes due 2029 900 600 March 2029 9.75% Subtotal 1,010 1,416 Less: Unamortized debt issuance costs 11 22 Total long-term and other debt $ 999 $ 1,394 Debt issued by consolidated VIEs: Fixed rate asset-backed term note securities $ 1,350 $ 350 Various – May 2026 to Jul. 2027 4.62% to 5.47% Conduit asset-backed securities 3,213 3,550 Various – Feb. 2025 to Oct. 2025 (2) Subtotal 4,563 3,900 Less: Unamortized debt issuance costs 5 2 Total debt issued by consolidated VIEs $ 4,558 $ 3,898 Total borrowings of long-term and other debt $ 5,557 $ 5,292 ______________________________ (1) The interest rate is based upon the Secured Overnight Financing Rate (SOFR) plus an applicable margin. (2) The interest rate is based upon SOFR, or the asset-backed commercial paper costs of each individual conduit provider plus an applicable margin. As of December 31, 2024, the interest rates ranged from 5.48% to 5.60% with a weighted average rate of 5.54%. As of December 31, 2023, the interest rates ranged from 6.36% to 6.59% with a weighted average rate of 6.48%.
Schedule of conduit facilities	The table below summarizes our conduit capacities, borrowings and maturities for the periods presented: (Millions) December 31, 2023 Commitment December 31, 2024 Conduit Facilities Capacity Drawn (6) Change Capacity Drawn (6) Maturity Date (7) Comenity Bank WFNMNT 2009-VFN (1) $ 2,650 $ 2,015 $ — $ 2,650 $ 1,955 October 2025 WFNMT 2009-VFC1 (2) 275 260 (275) — 141 — Comenity Capital Bank WFCMNT 2009-VFN (3) 2,250 1,025 — 2,250 867 February 2025 CCAST 2023-VFN1 (4) 250 250 — 250 250 September 2025 CCAST 2024-VFN1 (5) — — 200 200 — February 2025 Total $ 5,425 $ 3,550 $ (75) $ 5,350 $ 3,213 ______________________________ (1) 2009-VFN Conduit issued under World Financial Network Credit Card Master Note Trust (WFNMNT). (2) 2009-VFC1 Conduit issued under World Financial Network Credit Card Master Trust III (WFNMT). In October 2024, the revolving period of the 2009-VFC1 Conduit expired and the Conduit Facility entered controlled amortization, meaning the period in which principal collections are accumulated to pay down the outstanding principal amount of the notes issued under the Conduit Facility. (3) 2009-VFN Conduit issued under World Financial Capital Master Note Trust (WFCMNT). In February 2025, the 2009-VFN Conduit commitment will be reduced by $250 million to $2 billion, and the Maturity Date will be extended to February 2026. (4) 2023-VFN1 Conduit issued under Comenity Capital Asset Securitization Trust (CCAST). (5) 2024-VFN1 Conduit issued under CCAST. In February 2025, the 2024-VFN1 Conduit will be retired pursuant to the terms of a termination, consent and waiver agreement. (6) Amounts drawn do not include $1.1 billion and $1.2 billion of debt issued by the Trusts as of December 31, 2024 and 2023, respectively, which were not sold, but were retained by us as a credit enhancement and therefore have been eliminated from the Total. (7) Maturity Date with respect to conduit borrowings means the date on which the revolving period for the applicable Conduit Facility expires. The revolving period may be extended or renewed (unless an early amortization event occurs prior to the Maturity Date). Absent the extension or renewal of the revolving period, the Conduit Facility shall enter controlled amortization on the Maturity Date and may no longer be drawn upon.
Schedule of maturities	The future principal payments for our Long-term and other debt are as follows, as of December 31, 2024: Year Long-Term and Other Debt Debt Issued by Consolidated VIEs Total (Millions) 2025 $ — $ 3,213 $ 3,213 2026 100 350 450 2027 — 1,000 1,000 2028 10 — 10 2029 900 — 900 Thereafter — — — Total maturities 1,010 4,563 5,573 Unamortized debt issuance costs (11) (5) (16) $ 999 $ 4,558 $ 5,557

OTHER LIABILITIES (Tables)

OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2024
Other Liabilities [Abstract]
Schedule of other liabilities	The following provides a summary of Other liabilities as of December 31: 2024 2023 (Millions) Accounts payable and other brand partner liabilities $ 326 $ 422 Accrued liabilities (1) 295 273 Long-term tax reserves 250 286 Operating lease liabilities 128 148 Other (2) 202 182 Total other liabilities $ 1,201 $ 1,311 ______________________________ (1) Primarily related to accrued payroll and benefits, marketing, taxes and professional services expenses. (2) Primarily comprised of cardholder rewards liabilities and long-term unearned revenue.

OTHER NON-INTEREST INCOME AND_2

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2024
Other Non-Interest Income and Other Non-Interest Expenses [Abstract]
Components of other non-interest income	The following table provides the components of Other non-interest income for the years ended December 31: 2024 2023 2022 (Millions) Payment protection products $ 120 $ 132 $ 154 Loss from equity method investment — (6) (44) Other 24 2 4 Total other non-interest income $ 144 $ 128 $ 114
Components of other non-interest expenses	The following table provides the components of Other non-interest expenses for the years ended December 31: 2024 2023 2022 (Millions) Professional services and regulatory fees $ 112 $ 128 $ 142 Repurchased Convertible Notes 107 — — Occupancy expense 22 22 23 Other (1) 59 69 62 Total other non-interest expense $ 300 $ 219 $ 227 ______________________________ (1) Primarily related to costs associated with various other individually insignificant operating activities.

FAIR VALUES OF FINANCIAL INST_2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of estimated fair value of Company's financial instruments	The following table summarizes the carrying values and fair values of our financial assets and financial liabilities as of December 31: 2024 2023 Carrying Fair Carrying Fair (Millions) Financial assets Credit card and other loans, net $ 16,655 $ 19,011 $ 17,005 $ 19,802 Investment securities 217 217 217 217 Financial liabilities Deposits 13,082 13,087 13,620 13,583 Debt issued by consolidated VIEs 4,558 4,572 3,898 3,900 Long-term and other debt 999 1,085 1,394 1,457
Schedule of assets and liabilities carried at fair value measured on recurring basis	The following tables summarize our financial instruments measured at fair value on a recurring basis, categorized by the fair value hierarchy described in the preceding paragraphs, as of December 31: 2024 Total Level 1 Level 2 Level 3 (Millions) Investment securities $ 217 $ 47 $ 170 $ — Total assets measured at fair value $ 217 $ 47 $ 170 $ — 2023 Total Level 1 Level 2 Level 3 (Millions) Investment securities $ 217 $ 46 $ 171 $ — Total assets measured at fair value $ 217 $ 46 $ 171 $ —
Schedule of assets and liabilities disclosed but not carried at fair value	The following tables summarize our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of December 31: 2024 Fair Value Level 1 Level 2 Level 3 (Millions) Financial assets Credit card and other loans, net $ 19,011 $ — $ — $ 19,011 Total $ 19,011 $ — $ — $ 19,011 Financial liabilities Deposits $ 13,087 $ — $ 13,087 $ — Debt issued by consolidated VIEs 4,572 — 4,572 — Long-term and other debt 1,085 — 1,085 — Total $ 18,744 $ — $ 18,744 $ — 2023 Fair Value Level 1 Level 2 Level 3 (Millions) Financial assets Credit card and other loans, net $ 19,802 $ — $ — $ 19,802 Total $ 19,802 $ — $ — $ 19,802 Financial liabilities Deposits $ 13,583 $ — $ 13,583 $ — Debt issued by consolidated VIEs 3,900 — 3,900 — Long-term and other debt 1,457 — 1,457 — Total $ 18,940 $ — $ 18,940 $ —

REGULATORY MATTERS AND CAPITA_2

REGULATORY MATTERS AND CAPITAL ADEQUACY (Tables)	12 Months Ended
	Dec. 31, 2024
Regulated Operations [Abstract]
Schedule of actual capital ratios and minimum ratios	As of December 31, 2024 the actual capital ratios and minimum ratios for each Bank, as well as Bread Financial, are as follows: Actual Ratio Minimum Ratio for Minimum Ratio to be Total Company Common equity tier 1 capital ratio (1) 12.4 % 4.5 % 6.5 % Tier 1 capital ratio (2) 12.4 6.0 8.0 Total risk-based capital ratio (3) 13.8 8.0 10.0 Tier 1 leverage capital ratio (4) 11.5 4.0 5.0 Total risk-weighted assets (5) $ 19,928 Comenity Bank Common equity tier 1 capital ratio (1) 16.5 % 4.5 % 6.5 % Tier 1 capital ratio (2) 16.5 6.0 8.0 Total risk-based capital ratio (3) 17.9 8.0 10.0 Tier 1 leverage capital ratio (4) 15.3 4.0 5.0 Comenity Capital Bank Common equity tier 1 capital ratio (1) 15.4 % 4.5 % 6.5 % Tier 1 capital ratio (2) 15.4 6.0 8.0 Total risk-based capital ratio (3) 16.7 8.0 10.0 Tier 1 leverage capital ratio (4) 14.3 4.0 5.0 __________________________________ (1) Common equity tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders' equity has been reduced, primarily by Goodwill and intangible assets, net. (2) Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. In the calculation of tier 1 capital, we follow the Basel III Standardized Approach and therefore Total stockholders' equity has been reduced, primarily by Goodwill and intangible assets, net. (3) Total risk-based capital ratio represents total capital divided by total risk-weighted assets. In the calculation of total capital, we follow the Basel III Standardized Approach and therefore tier 1 capital has been increased by tier 2 capital, which for us is the allowable portion of the Allowance for credit losses. (4) Tier 1 leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments. (5) Total risk-weighted assets are generally measured by allocating assets, and specified off-balance sheet exposures, to various risk categories as defined by the Basel III Standardized Approach.

CHANGES IN ACCUMULATED OTHER _2

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 31, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects	The changes in each component of Accumulated other comprehensive loss, net of tax effects, are as follows for the periods presented: Net Unrealized Gains (Losses) on AFS Securities Foreign Currency Translation Losses Accumulated other comprehensive loss (Millions) Balance as of December 31, 2021 $ 1 $ (3) $ (2) Changes in other comprehensive loss (19) — (19) Balance as of December 31, 2022 $ (18) $ (3) $ (21) Changes in other comprehensive income 2 — 2 Balance as of December 31, 2023 $ (16) $ (3) $ (19) Changes in other comprehensive loss (3) — (3) Balance as of December 31, 2024 $ (19) $ (3) $ (22)

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of performance-based and service-based restricted stock unit awards	The following table summarizes RSUs activity for our equity compensation plans: Market- Based (1) Performance- Based (1) Service- Total Weighted Balance as of December 31, 2021 19,067 91,416 648,952 759,435 $ 89.14 Shares granted — 82,513 766,178 848,691 63.22 Shares vested — (8,983) (218,077) (227,060) 78.23 Shares forfeited (19,067) — (89,390) (108,457) 65.83 Balance as of December 31, 2022 — 164,946 1,107,663 1,272,609 $ 68.86 Shares granted — 175,587 1,172,465 1,348,052 38.02 Shares vested — (9,254) (434,049) (443,303) 67.49 Shares forfeited — — (87,527) (87,527) 53.82 Balance as of December 31, 2023 — 331,279 1,758,552 2,089,831 $ 49.89 Shares granted — 243,312 1,307,833 1,551,145 37.78 Shares vested — (95,133) (730,635) (825,768) 56.58 Shares forfeited — — (68,012) (68,012) 43.39 Balance as of December 31, 2024 — 479,458 2,267,738 2,747,196 $ 41.54 Outstanding and Expected to Vest 2,648,763 $ 41.80 ______________________________ (1) Shares granted reflect a 100% target attainment of the respective market-based or performance-based metric. Shares forfeited include those RSUs forfeited as a result of BFH not meeting the respective market-based or performance-based metric conditions.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of components of income before income taxes and components of income tax expense	The components of our Income from continuing operations before income taxes and Provision for income taxes included in the Consolidated Statements of Income were as follows for the years ended December 31: 2024 2023 2022 (Millions) Components of Income from continuing operations before income taxes Domestic $ 375 $ 964 $ 297 Foreign 6 4 3 Total Income from continuing operations before income taxes $ 381 $ 968 $ 300 Components of Provision for income taxes Current Federal $ 156 $ 261 $ 279 State 29 37 41 Foreign 2 1 1 Total current income tax expense 187 299 321 Deferred Federal (73) (65) (200) State (10) (2) (44) Foreign (2) (1) (1) Total deferred income tax benefit (85) (68) (245) Total Provision for income taxes $ 102 $ 231 $ 76
Summary of reconciliation of recorded federal provision for income taxes to the expected amount computed by applying the federal statutory rate	A reconciliation of our expected income tax expense computed by applying the federal statutory rate to Income from continuing operations before income taxes, to the recorded Provision for income taxes, is as follows for the years ended December 31: 2024 2023 2022 (Millions) Expected expense at statutory rate $ 80 $ 203 $ 63 Increase (decrease) in income taxes resulting from: State and local income taxes, net of federal benefit 15 27 (2) Non-deductible expenses 29 8 6 IRC Section 199, net of tax reserves — — 4 Basis difference in unconsolidated subsidiaries — — (8) Valuation allowance (1) (5) 16 Audit Resolutions (20) — — Other (1) (2) (3) Total $ 102 $ 231 $ 76
Summary of deferred tax assets and liabilities	The following table provides the significant components of Deferred tax assets and liabilities as of December 31: 2024 2023 (Millions) Deferred tax assets Deferred revenue $ 12 $ 14 Allowance for credit losses 534 554 Net operating loss carryforwards and other carryforwards 48 51 Operating lease liabilities 29 34 Research & development expenses 53 36 Accrued expenses and other 87 79 Total deferred tax assets 763 768 Valuation allowance (19) (21) Deferred tax assets, net of valuation allowance 744 747 Deferred tax liabilities Deferred income $ 2 $ 73 Depreciation — 12 Right of use assets 19 22 Intangible assets 15 11 Total deferred tax liabilities 36 118 Net deferred tax assets $ 708 $ 629 Amounts recognized on the Consolidated Balance Sheets: Other assets $ 708 $ 629
Summary of reconciliation of unrecognized tax benefits	The following table presents changes in unrecognized tax benefits: (Millions) Balance as of December 31, 2021 $ 247 Increases related to prior years’ tax positions 8 Decreases related to prior years’ tax positions (25) Increases related to current year tax positions 14 Settlements during the period (2) Balance as of December 31, 2022 $ 242 Increases related to prior years’ tax positions 1 Decreases related to prior years’ tax positions (11) Increases related to current year tax positions 13 Settlements during the period (10) Lapses of applicable statutes of limitations (20) Balance as of December 31, 2023 $ 215 Increases related to prior years’ tax positions 1 Decreases related to prior years’ tax positions (40) Increases related to current year tax positions 9 Settlements during the period (21) Lapses of applicable statutes of limitations (10) Balance as of December 31, 2024 $ 154

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted net income per share	The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the years ended December 31: 2024 2023 2022 (Millions, except per share amounts) Numerator Income from continuing operations $ 279 $ 737 $ 224 Loss from discontinued operations, net of income taxes (1) (2) (19) (1) Net income $ 277 $ 718 $ 223 Denominator Weighted average common stock outstanding – basic 49.6 49.8 49.9 Weighted average effect of dilutive securities Add: net effect of dilutive unvested restricted stock awards (2) 0.7 0.2 0.1 Add: dilutive effect of Convertible Notes (3)(4) 0.1 0.0 0.0 Weighted average common stock outstanding – diluted 50.4 50.0 50.0 Basic EPS Income from continuing operations $ 5.63 $ 14.79 $ 4.48 Loss from discontinued operations $ (0.05) $ (0.40) $ (0.01) Net income per share $ 5.58 $ 14.39 $ 4.47 Diluted EPS Income from continuing operations $ 5.54 $ 14.74 $ 4.47 Loss from discontinued operations $ (0.05) $ (0.40) $ (0.01) Net income per share $ 5.49 $ 14.34 $ 4.46 ______________________________ (1) Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements. (2) As the effect would have been anti-dilutive, for the years ended December 31, 2024, 2023 and 2022, approximately 0.6 million, 1.2 million, and 0.9 million, respectively, restricted stock awards were excluded from each calculation of weighted average dilutive common shares. (3) Holders of the Convertible Notes may convert their notes under certain conditions until March 15, 2028, and on or after such date without condition. Upon any such conversion, we will repay the aggregate principal amount of the Convertible Notes in cash, and pay or deliver, as the case may be, cash, shares of our common stock or a combination of both (at our election), in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount of the Convertible Notes. At our option, we may redeem for cash, all or a portion of the Convertible Notes on or after June 21, 2026, and before the 51st scheduled trading day before the maturity date, but only if the closing price of our common stock reaches specified targets as defined in the indenture governing the Convertible Notes. We may also, from time to time, retire or purchase all or a portion of the outstanding Convertible Notes through cash purchases or exchanges for other securities, in open market purchases, tender offers, privately negotiated transactions or otherwise. (4) In connection with the issuance of the Convertible Notes, we entered into privately negotiated Capped Calls with certain financial institution counterparties. These transactions are expected generally to reduce potential dilution to our common stock upon any conversion of Convertible Notes and/or offset certain cash payments we may be required to make in excess of the principal amount of the Convertible Notes upon conversion, redemption or repurchase thereof, with such reduction and/or offset subject to a cap of $61.48 per share. Diluted weighted average common stock does not include the impact of the Capped Calls we entered into concurrently with the issuance of the Convertible Notes, as the effect would have been anti-dilutive. If shares were delivered to us under the Capped Calls, those shares would offset, up to the cap, the dilutive effect of the shares that we would issue upon conversion of the Convertible Notes.

PARENT COMPANY FINANCIAL STAT_2

PARENT COMPANY FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of balance sheets	Parent Company – Condensed Balance Sheets December 31, 2024 2023 (Millions) Assets Cash and cash equivalents $ 21 $ 2 Investment in subsidiaries 3,195 3,615 Intercompany receivables, net 773 612 Other assets 123 147 Total assets $ 4,112 $ 4,376 Liabilities Long-term and other debt $ 999 $ 1,394 Other liabilities 62 64 Total liabilities 1,061 1,458 Stockholders’ equity 3,051 2,918 Total liabilities and stockholders’ equity $ 4,112 $ 4,376
Schedule of statements of income	Parent Company – Condensed Statements of Income Years Ended December 31, 2024 2023 2022 (Millions) Total interest income $ 11 $ 12 $ 11 Total interest expense 116 111 107 Net interest expense (105) (99) (96) Dividends from subsidiaries 910 1,063 382 Loss from equity method investment — (6) (44) Total net interest and non-interest income 805 958 242 Total non-interest expenses 121 12 1 Income before income taxes and equity in undistributed net income of subsidiaries 684 946 241 Benefit for income taxes 38 31 22 Income before equity in undistributed net income of subsidiaries 722 977 263 Equity in undistributed net loss of subsidiaries (445) (259) (40) Net income $ 277 $ 718 $ 223
Schedule of statements of comprehensive income	Parent Company – Condensed Statements of Comprehensive Income Years Ended December 31, 2024 2023 2022 (Millions) Net income $ 277 $ 718 $ 223 Other comprehensive loss, net of tax — — (3) Total comprehensive income, net of tax $ 277 $ 718 $ 220
Schedule of statements of cash flows	Parent Company – Condensed Statements of Cash Flows Years Ended December 31, 2024 2023 2022 (Millions) Net cash used in operating activities $ (182) $ (422) $ (219) Cash flows from investing activities: Dividends received 910 1,063 383 Net cash provided by investing activities 910 1,063 383 Cash flows from financing activities: Borrowings under debt agreements 300 1,401 218 Repayments of borrowings under debt agreements (894) (1,882) (319) Payment of deferred financing costs (10) (45) — Payment of capped call transactions — (39) — Dividends paid (43) (42) (43) Repurchase of common stock (55) (35) (12) Other (7) (2) (3) Net cash used in financing activities (709) (644) (159) Change in cash, cash equivalents and restricted cash 19 (3) 5 Cash, cash equivalents and restricted cash at beginning of year 2 5 — Cash, cash equivalents and restricted cash at end of year $ 21 $ 2 $ 5

DESCRIPTION OF BUSINESS, BASI_4

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Line Items]
Period for which interest and fee income accrue until balance, interest and fees paid or charged off	180 days
Period for which interest and fee income accrue until balance, interest and other fees are paid or charged off on installment loan receivables	120 days
Amortization term of direct loan amortization costs	1 year
Unamortized deferred costs related to loan origination	$ 45,000,000	$ 60,000,000
Unamortized contract costs	228,000,000	285,000,000
Impairment of contract costs	0	7,000,000	$ 0
Cash and due from banks	330,000,000	410,000,000
Interest-bearing deposits	3,100,000,000	2,900,000,000
Short-term investments	272,000,000	250,000,000
Restricted cash	35,000,000	26,000,000
Depreciation	20,000,000	19,000,000	19,000,000
Unamortized capitalized software costs	71,000,000	78,000,000
Amortization on capitalized software	35,000,000	60,000,000	68,000,000
Impairment charges	$ 0	0	0
Minimum | Furniture and Equipment
Accounting Policies [Line Items]
Estimated useful life	1 year
Minimum | Leasehold Improvements
Accounting Policies [Line Items]
Estimated useful life	1 year
Minimum | Internal-Use Software
Accounting Policies [Line Items]
Estimated useful life	1 year
Maximum | Furniture and Equipment
Accounting Policies [Line Items]
Estimated useful life	10 years
Maximum | Leasehold Improvements
Accounting Policies [Line Items]
Estimated useful life	20 years
Maximum | Internal-Use Software
Accounting Policies [Line Items]
Estimated useful life	10 years
Customer Concentration Risk | Revenue Benchmark | Five Largest Credit Card Programs
Accounting Policies [Line Items]
Concentration risk	48%
Customer Concentration Risk | Liabilities, Total | Five Largest Credit Card Programs
Accounting Policies [Line Items]
Concentration risk	38%
Interchange Revenue, Net of Retailer Share Arrangements
Accounting Policies [Line Items]
Amortization of contract costs	$ 51,000,000	59,000,000	72,000,000
Non-Interest Expenses
Accounting Policies [Line Items]
Amortization of contract costs	$ 12,000,000	$ 12,000,000	$ 12,000,000

CREDIT CARD AND OTHER LOANS - F

CREDIT CARD AND OTHER LOANS - Financing Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	$ 18,896	$ 19,333
Less: Allowance for credit losses	(2,241)	(2,328)	$ (2,464)	$ (1,832)
Credit card and other loans, net	16,655	17,005
Credit card and loan receivables restricted for securitization investors	12,408	12,844
Unbilled to cardholders	378	371
Variable Interest Entity, Primary Beneficiay
Financing Receivable, Allowance for Credit Loss [Line Items]
Credit card and loan receivables restricted for securitization investors	12,408	12,844
Credit card loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	18,586	18,999
Other loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans	310	334
Less: Allowance for credit losses	$ (30)	$ (32)

CREDIT CARD AND OTHER LOANS - A

CREDIT CARD AND OTHER LOANS - Amortized Cost Basis Credit Card and Loan Receivables (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	$ 18,492	$ 18,927
Unbilled to cardholders	378	371
Total
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	1,387	1,554
31 to 60 Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	369	422
61 to 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	288	323
91 or more Days Past Due
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	730	809
Total Current
Financing Receivable, Past Due [Line Items]
Total credit card and other loans	$ 17,105	$ 17,373

CREDIT CARD AND OTHER LOANS - N

CREDIT CARD AND OTHER LOANS - Narrative (Details) $ in Millions	1 Months Ended				12 Months Ended
	Aug. 31, 2024 USD ($)	Apr. 30, 2024 USD ($)	Oct. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Dec. 31, 2024 USD ($) loan	Dec. 31, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Re-aged accounts as percentage of total credit card and loan receivables					4.10%	2.60%	1.40%
Number of days a loan is contractually past due before resulting in charge-off					30 days
Delinquency rate					5.90%	6.50%
Actual charge-offs for unpaid interest and fees					$ 1,027	$ 954	$ 651
Net principal loss rate					8.20%	7.50%
Percentage of financing receivable outstanding					0.10%	0.10%
Total credit card and other loans					$ 18,492	$ 18,927
Unused credit card lines available to cardholders					$ 103,000	$ 113,000
Credit card loans held for sale | loan					0	0
Proceeds from sale of credit card loan portfolios					$ 101	$ 2,499	0
Gain on sales of credit card portfolio					11	230	$ 0
BJs Wholesale Club (BJs)
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans				$ 2,300
Proceeds from sale of credit card loan portfolios				2,500
Gain on sales of credit card portfolio				$ 230
Other loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Total credit card and other loans					$ 298	$ 317
Other loans | FICO Score, From 660 and Above
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of total amortized cost basis of revolving loan receivables outstanding					84	82
Other loans | FICO Score Below 660
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of total amortized cost basis of revolving loan receivables outstanding					16
Other loans | FICO Score, From 660 and Below
Financing Receivable, Allowance for Credit Loss [Line Items]
Percentage of total amortized cost basis of revolving loan receivables outstanding						18
Credit card loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Proceeds from sale of credit card loan portfolios		$ 102
Payments to acquire loans receivable	$ 378		$ 388

CREDIT CARD AND OTHER LOANS - C

CREDIT CARD AND OTHER LOANS - Credit Quality on Amortized Cost Basis (Details) - Credit card loans - No Score	Dec. 31, 2024	Dec. 31, 2023
661 or Higher
Financing Receivable, Credit Quality Indicator [Line Items]
Credit card loans	58%	57%
601 to 660
Financing Receivable, Credit Quality Indicator [Line Items]
Credit card loans	27%	27%
600 or Less
Financing Receivable, Credit Quality Indicator [Line Items]
Credit card loans	15%	16%

CREDIT CARD AND OTHER LOANS -_2

CREDIT CARD AND OTHER LOANS - Credit Cards (Details) - Credit Card Loans - Contractual Interest Rate Reduction - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Account Balances	$ 303	$ 269
% of Total Credit Card Loans	1.70%	1.40%
Weighted Average Interest Rate Reduction (% points)	22%	19.20%

CREDIT CARD AND OTHER LOANS -_3

CREDIT CARD AND OTHER LOANS - Aging Analysis (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 303	$ 269
Total
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	61	55
31 to 60 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	21	17
61 to 90 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	18	16
91 or more Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	22	22
Total Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Amortized cost basis	$ 242	$ 214

CREDIT CARD AND OTHER LOANS - T

CREDIT CARD AND OTHER LOANS - Troubled Debt Restructurings (Details) - Consumer Portfolio Segment - Troubled debt restructurings that subsequently defaulted - credit card and loan receivables $ in Millions	12 Months Ended
	Dec. 31, 2024 USD ($) modification	Dec. 31, 2023 USD ($) modification
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | modification	15,663	14,196
Outstanding Balance | $	$ 29	$ 23

ALLOWANCE FOR CREDIT LOSSES - N

ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	$ 2,241	$ 2,328	$ 2,464	$ 1,832
Portfolio reserve rates	11.90%	12%
Other loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit loss	$ 30	$ 32

ALLOWANCE FOR CREDIT LOSSES - R

ALLOWANCE FOR CREDIT LOSSES - Rollforward (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 2,328	$ 2,464	$ 1,832
Provision for credit losses	1,397	1,229	1,594
Change in the estimate for uncollectible unpaid interest and fees	5	10	10
Net principal losses	(1,489)	(1,375)	(972)
Ending balance	2,241	2,328	2,464
Recovery	$ 367	332	187
Recovery adjustment		$ 10	$ 5

SECURITIZATIONS (Details)

SECURITIZATIONS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Offsetting Assets [Line Items]
Total credit card loans – available to settle obligations of consolidated VIEs	$ 12,408	$ 12,844
Of which: principal amount of credit card loans 91 days or more past due	305	323
Net principal losses of securitized credit card loans	$ 852	$ 801	$ 554
Minimum
Offsetting Assets [Line Items]
Minimum interests requirement (as a percent)	4%
Maximum
Offsetting Assets [Line Items]
Minimum interests requirement (as a percent)	10%

INVESTMENTS - Investments (Deta

INVESTMENTS - Investments (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Available-for-sale debt securities	$ 170	$ 171
Equity securities	47	46
Total investment securities	217	217
Equity method and other investments	49	36
Total Investments	$ 266	$ 253

INVESTMENTS - Amortized Cost (D

INVESTMENTS - Amortized Cost (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Amortized Cost	$ 195	$ 192
Unrealized Gains	0	0
Unrealized Losses	(25)	(21)
Fair Value	$ 170	$ 171

INVESTMENTS - Continuous Loss P

INVESTMENTS - Continuous Loss Position (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Less than 12 months, Fair Value	$ 27	$ 23
Less than 12 months, Unrealized Losses	0	0
12 Months or Greater, Fair Value	140	141
12 Months or Greater, Unrealized Losses	(25)	(21)
Fair Value	167	164
Unrealized Losses	$ (25)	$ (21)

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]
AFS Allowance for credit losses	$ 0	$ 0
Gains or losses from the sale of AFS securities	0	$ 0	$ 0
Collateralized Mortgage-Backed Securities
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale, mortgage-backed securities with no stated maturities, amortized cost	167,000,000
Available-for-sale, mortgage-backed securities with no stated maturities, fair value	145,000,000
Municipal Bonds
Debt Securities, Available-for-Sale [Line Items]
Available-for-sale, mortgage-backed securities with stated maturities - greater than ten years, amortized cost	28,000,000
Available-for-sale, mortgage-backed securities with stated maturities - greater than ten years, fair value	$ 25,000,000

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 634,000,000	$ 634,000,000	$ 634,000,000
Goodwill impairment	0	0	0
Accumulated goodwill impairment losses	0
Amortization of intangible assets	$ 35,000,000	$ 37,000,000	$ 26,000,000

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS, NET - Finite Lived Assets and Indefinite Lived Assets (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 223	$ 233
Accumulated Amortization	(115)	(109)
Net	108	124
Total Intangible Assets
Gross Assets	227	237
Accumulated Amortization	(115)	(109)
Net	112	128
Tradename
Indefinite-lived Intangible Assets [Line Items]
Tradename	4	4
Premium on purchased credit card loan portfolios
Finite-Lived Intangible Assets [Line Items]
Gross Assets	221	231
Accumulated Amortization	(113)	(108)
Net	108	123
Total Intangible Assets
Accumulated Amortization	$ (113)	$ (108)
Premium on purchased credit card loan portfolios | Minimum
Finite-Lived Intangible Assets [Line Items]
Useful Life	3 years	5 years
Premium on purchased credit card loan portfolios | Maximum
Finite-Lived Intangible Assets [Line Items]
Useful Life	13 years	13 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Assets	$ 2	$ 2
Accumulated Amortization	(2)	(1)
Net	$ 0	$ 1
Useful Life	5 years	5 years
Total Intangible Assets
Accumulated Amortization	$ (2)	$ (1)

GOODWILL AND INTANGIBLE ASSET_5

GOODWILL AND INTANGIBLE ASSETS, NET - Maturity Schedule (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Estimated amortization expense related to intangible assets for the next five years and thereafter
2025	$ 30
2026	29
2027	24
2028	7
2029	7
Thereafter	11
Net	$ 108	$ 124

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Other Assets [Line Items]
Deferred tax asset, net	$ 708	$ 629
Deferred contract costs	228	285
Accounts receivable, net	145	144
Right-of-use assets – operating leases	$ 87	$ 98
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Total other assets	Total other assets
Restricted cash	$ 35	$ 26
Other	200	182
Total other assets	1,403	$ 1,364
LVI
Other Assets [Line Items]
Restricted cash	$ 50

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Weighted-average discount rate : operating leases	7%	6.90%
Weighted-average remaining lease term (in years): operating leases	7 years 6 months	8 years 4 months 24 days
Lease cost	$ 14	$ 25	$ 13
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease terms	1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease terms	14 years

LEASES - Supplemental lease inf

LEASES - Supplemental lease information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Supplemental cash flow information related to leases was as follows:
Cash paid for amounts included in the measurement of lease liabilities – operating cash flows	$ 29	$ 27	$ 23
Right-of-use assets obtained in exchange for operating leases – non-cash	$ 9	$ 37	$ 0

LEASES - Maturities of lease li

LEASES - Maturities of lease liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Lease liabilities
2025	$ 24
2026	24
2027	22
2028	20
2029	19
Thereafter	61
Total undiscounted lease liabilities	170
Less: Amount representing interest	(42)
Total present value of minimum lease payments	$ 128	$ 148

DEPOSITS - Interest and Non-Int

DEPOSITS - Interest and Non-Interest Bearing (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Interest-bearing	$ 13,055	$ 13,594
Cardholder credit balances	27	26
Total deposits	$ 13,082	$ 13,620

DEPOSITS - Deposits by Type (De

DEPOSITS - Deposits by Type (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Deposit Liability [Line Items]
Certificates of deposit	$ 6,228
Cardholder credit balances	27	$ 26
Total deposits	13,082	13,620
Direct-to-consumer (retail)
Deposit Liability [Line Items]
Savings accounts	3,226	2,863
Certificates of deposit	4,461	3,591
Wholesale
Deposit Liability [Line Items]
Savings accounts	3,601	3,734
Certificates of deposit	1,767	3,406
Cardholder credit balances
Deposit Liability [Line Items]
Cardholder credit balances	$ 27	$ 26

DEPOSITS - Maturity of Deposits

DEPOSITS - Maturity of Deposits (Details) $ in Millions	Dec. 31, 2024 USD ($)
Other Liabilities [Abstract]
2025	$ 4,769
2026	581
2027	660
2028	187
2029	31
Thereafter	0
Certificates of deposit	6,228
Time deposits, unamortized debt discount	$ 3

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Other Liabilities [Abstract]
Time deposits, at or above FDIC insurance limit	$ 574	$ 509
Time deposits, at or above FDIC insurance limit of total deposits	4%	4%

BORROWINGS OF LONG-TERM AND O_3

BORROWINGS OF LONG-TERM AND OTHER DEBT - Schedule of Long Term Debt and Other Debt (Details) - USD ($) $ in Millions	Dec. 31, 2024	Jan. 31, 2024	Dec. 31, 2023	Sep. 30, 2020
Long-term and other debt:
Long-term and other debt	$ 1,010
Less: Unamortized debt issuance costs	11
Total long-term and other debt	999		$ 1,394
Debt issued by consolidated VIEs:
Debt issued by consolidated VIEs	1,100		1,200
Less: Unamortized debt issuance costs	5
Total debt issued by consolidated VIEs	4,558		3,898
Total borrowings of long-term and other debt	5,557		5,292
Long-term and other debt
Long-term and other debt:
Long-term and other debt	1,010		1,416
Less: Unamortized debt issuance costs	11		22
Total long-term and other debt	999		1,394
Convertible Debt
Long-term and other debt:
Long-term and other debt	$ 10		316
Debt issued by consolidated VIEs:
Interest Rates	4.25%
Senior notes due 2026 | Senior Notes
Long-term and other debt:
Long-term and other debt	$ 100		500
Debt issued by consolidated VIEs:
Interest Rates	7%	7%		7%
Senior notes due 2029 | Senior Notes
Long-term and other debt:
Long-term and other debt	$ 900		600
Debt issued by consolidated VIEs:
Interest Rates	9.75%	9.75%
Debt issued by consolidated VIEs
Debt issued by consolidated VIEs:
Debt issued by consolidated VIEs	$ 4,563		3,900
Less: Unamortized debt issuance costs	5		2
Total debt issued by consolidated VIEs	4,558		3,898
Fixed rate asset-backed term note securities
Debt issued by consolidated VIEs:
Debt issued by consolidated VIEs	$ 1,350		350
Fixed rate asset-backed term note securities | Minimum
Debt issued by consolidated VIEs:
Interest Rates	4.62%
Fixed rate asset-backed term note securities | Maximum
Debt issued by consolidated VIEs:
Interest Rates	5.47%
Conduit asset-backed securities
Debt issued by consolidated VIEs:
Debt issued by consolidated VIEs	$ 3,213		$ 3,550
Weighted average interest rate	5.54%		6.48%
Conduit asset-backed securities | Minimum
Debt issued by consolidated VIEs:
Interest Rates	5.48%		6.36%
Conduit asset-backed securities | Maximum
Debt issued by consolidated VIEs:
Interest Rates	5.60%		6.59%
Revolving Credit Facility | Line of Credit
Long-term and other debt:
Long-term and other debt	$ 0		$ 0

BORROWINGS OF LONG-TERM AND O_4

BORROWINGS OF LONG-TERM AND OTHER DEBT - Narrative (Details)

1 Months Ended

3 Months Ended

12 Months Ended

Jun. 13, 2023

Aug. 31, 2024 USD ($)

Jan. 31, 2024 USD ($)

Jun. 30, 2023 USD ($) trading_day $ / shares

Dec. 31, 2024 USD ($) trading_day $ / shares

Dec. 31, 2024 USD ($) trading_day $ / shares

Jan. 31, 2025 USD ($)

Nov. 30, 2024 USD ($)

May 31, 2024 USD ($)

Dec. 31, 2023 USD ($)

Dec. 22, 2023 USD ($)

Jun. 08, 2023 $ / shares

Sep. 30, 2020 USD ($)

Debt Instrument [Line Items]

Debt instrument, inducement expense

$ 107,000,000

Embedded derivative, loss on embedded derivative

53,000,000

Long-term and other debt

$ 1,010,000,000

1,010,000,000

Revolving Credit Facility

Debt Instrument [Line Items]

Remaining borrowing capacity

$ 700,000,000

$ 700,000,000

Convertible Debt

Debt Instrument [Line Items]

Stated interest rate

4.25%

4.25%

Debt amount issued

$ 238,000,000

$ 68,000,000

Repurchase amount

486,000,000

Conversion price (usd per share) | $ / shares

$ 38.43

$ 38.43

Additional paid-in capital related to the induced conversion premium

88,000,000

Long-term and other debt

$ 10,000,000

$ 10,000,000

$ 316,000,000

Threshold percentage of stock price trigger

130%

Threshold trading days | trading_day

20

Threshold consecutive trading days | trading_day

30

Convertible Debt | Other Non-interest Expense

Debt Instrument [Line Items]

Debt instrument, inducement expense

107,000,000

2023 Credit Agreement | Revolving Credit Facility

Debt Instrument [Line Items]

Maximum borrowing capacity

$ 700,000,000

7.000% Senior Notes due 2026

Debt Instrument [Line Items]

Repurchase amount

$ 400,000,000

7.000% Senior Notes due 2026 | Senior Notes

Debt Instrument [Line Items]

Stated interest rate

7%

7%

7%

7%

Debt amount issued

$ 500,000,000

Repurchase amount

$ 400,000,000

Repurchase amount, cash portion

100,000,000

Long-term and other debt

$ 100,000,000

$ 100,000,000

500,000,000

7.000% Senior Notes due 2026 | Senior Notes | Subsequent Event

Debt Instrument [Line Items]

Repurchase amount

$ 100,000,000

4.250% Convertible Senior Notes Due 2028

Debt Instrument [Line Items]

Conversion price premium

25%

Share price (usd per share) | $ / shares

$ 30.74

$ 30.74

Stock price trigger (usd per share) | $ / shares

$ 38.43

Convertible debt carrying amount of equity component

$ 39,000,000

4.250% Convertible Senior Notes Due 2028 | Minimum

Debt Instrument [Line Items]

Stock price trigger (usd per share) | $ / shares

$ 38.43

4.250% Convertible Senior Notes Due 2028 | Maximum

Debt Instrument [Line Items]

Stock price trigger (usd per share) | $ / shares

$ 61.48

4.250% Convertible Senior Notes Due 2028 | Convertible Debt

Debt Instrument [Line Items]

Stated interest rate

4.25%

Debt amount issued

$ 316,000,000

Conversion ratio

0.0260247

Conversion price premium

100%

Threshold for redemption, days prior to maturity | trading_day

51

51

Conversion price (usd per share) | $ / shares

$ 61.48

4.250% Convertible Senior Notes Due 2028 | Debt Conversion Terms One

Debt Instrument [Line Items]

Redemption price

100%

4.250% Convertible Senior Notes Due 2028 | Debt Conversion Terms One | Convertible Debt

Debt Instrument [Line Items]

Threshold for redemption, days prior to maturity | trading_day

51

4.250% Convertible Senior Notes Due 2028 | Debt Conversion Terms Two

Debt Instrument [Line Items]

Redemption price

100%

9.750% Senior Notes due 2029

Debt Instrument [Line Items]

Repurchase amount, cash portion

$ 100,000,000

9.750% Senior Notes due 2029 | Senior Notes

Debt Instrument [Line Items]

Stated interest rate

9.75%

9.75%

9.75%

Debt amount issued

$ 300,000,000

$ 600,000,000

Redemption price

101%

Long-term and other debt

$ 900,000,000

$ 900,000,000

$ 600,000,000

Series 2023-A Asset-Backed Term Notes

Debt Instrument [Line Items]

Debt amount issued

$ 570,000,000

Series 2023-A Asset-Backed Term Notes - Class A

Debt Instrument [Line Items]

Stated interest rate

5.47%

Debt amount issued

$ 500,000,000

Series 2023-A Asset-Backed Term Notes - Class M

Debt Instrument [Line Items]

Debt amount issued

44,000,000

Series 2023-A Asset-Backed Term Notes - Class B

Debt Instrument [Line Items]

Debt amount issued

$ 26,000,000

Series 2024 B Asset Backed Term Notes

Debt Instrument [Line Items]

Debt amount issued

$ 500,000,000

Series 2024-B Asset-Backed Term Notes - Class A

Debt Instrument [Line Items]

Stated interest rate

4.62%

Debt amount issued

$ 500,000,000

BORROWINGS OF LONG-TERM AND O_5

BORROWINGS OF LONG-TERM AND OTHER DEBT - Conduit Facilities (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2025	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Drawn		$ 1,100	$ 1,200
2009-VFN Conduit Facility | Subsequent Event
Debt Instrument [Line Items]
Capacity	$ 2,000
Commitment change increase (decrease)	$ (250)
Comenity Bank | Line of Credit | WFNMNT 2009-VFN
Debt Instrument [Line Items]
Capacity		2,650	2,650
Drawn		1,955	2,015
Commitment change increase (decrease)		0
Comenity Bank | Line of Credit | WFNMT 2009-VFC1
Debt Instrument [Line Items]
Capacity		0	275
Drawn		141	260
Commitment change increase (decrease)		(275)
Comenity Capital Bank | Line of Credit
Debt Instrument [Line Items]
Capacity		5,350	5,425
Drawn		3,213	3,550
Commitment change increase (decrease)		(75)
Comenity Capital Bank | Line of Credit | WFCMNT 2009-VFN
Debt Instrument [Line Items]
Capacity		2,250	2,250
Drawn		867	1,025
Commitment change increase (decrease)		0
Comenity Capital Bank | Line of Credit | CCAST 2023-VFN1
Debt Instrument [Line Items]
Capacity		250	250
Drawn		250	250
Commitment change increase (decrease)		0
Comenity Capital Bank | Line of Credit | CCAST 2024-VFN1
Debt Instrument [Line Items]
Capacity		200	0
Drawn		0	$ 0
Commitment change increase (decrease)		$ 200

BORROWINGS OF LONG-TERM AND O_6

BORROWINGS OF LONG-TERM AND OTHER DEBT - Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Long-Term and Other Debt
2025	$ 0
2026	100
2027	0
2028	10
2029	900
Thereafter	0
Total maturities	1,010
Unamortized debt issuance costs	(11)
Total long-term and other debt	999	$ 1,394
Debt Issued by Consolidated VIEs
2025	3,213
2026	350
2027	1,000
2028	0
2029	0
Thereafter	0
Total maturities	4,563
Unamortized debt issuance costs	(5)
Total debt issued by consolidated VIEs	4,558	$ 3,898
2025	3,213
2026	450
2027	1,000
2028	10
2029	900
Thereafter	0
Total maturities	5,573
Unamortized debt issuance costs	(16)
Long-term debt and other debt	$ 5,557

OTHER LIABILITIES (Details)

OTHER LIABILITIES (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Other Liabilities [Abstract]
Accounts payable and other brand partner liabilities	$ 326	$ 422
Accrued liabilities	295	273
Long-term tax reserves	250	286
Operating lease liabilities	$ 128	$ 148
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Total other liabilities	Total other liabilities
Other	$ 202	$ 182
Total other liabilities	$ 1,201	$ 1,311

DERIVATIVES AND HEDGING ACTIV_2

DERIVATIVES AND HEDGING ACTIVITIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Not Designated as Hedging Instrument, Economic Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 73,000,000	$ 79,000,000
Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional amount	$ 1,500,000,000
Derivative, hedged interest rate swaps term	1 year 9 months 18 days

OTHER NON-INTEREST INCOME AND_3

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Other Noninterest Income [Abstract]
Payment protection products	$ 120	$ 132	$ 154
Loss from equity method investment	0	(6)	(44)
Other	24	2	4
Total other non-interest income	144	128	114
Other Noninterest Expenses [Abstract]
Professional services and regulatory fees	112	128	142
Repurchased Convertible Notes	107	0	0
Occupancy expense	22	22	23
Other	59	69	62
Total other non-interest expense	$ 300	$ 219	$ 227

FAIR VALUES OF FINANCIAL INST_3

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value of Instruments (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Financial assets
Credit card and other loans, net	$ 19,011	$ 19,802
Investment securities	217	217
Financial liabilities
Deposits	13,087	13,583
Debt issued by consolidated VIEs	4,572	3,900
Carrying Amount
Financial assets
Credit card and other loans, net	16,655	17,005
Investment securities	217	217
Financial liabilities
Deposits	13,082	13,620
Debt issued by consolidated VIEs	4,558	3,898
Long-term and other debt	999	1,394
Fair Value
Financial assets
Credit card and other loans, net	19,011	19,802
Investment securities	217	217
Financial liabilities
Deposits	13,087	13,583
Debt issued by consolidated VIEs	4,572	3,900
Long-term and other debt	$ 1,085	$ 1,457

FAIR VALUES OF FINANCIAL INST_4

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Assets disclosed at fair value
Investment securities	$ 217	$ 217
Total assets measured at fair value	217	217
Level 1
Assets disclosed at fair value
Investment securities	47	46
Total assets measured at fair value	47	46
Level 2
Assets disclosed at fair value
Investment securities	170	171
Total assets measured at fair value	170	171
Level 3
Assets disclosed at fair value
Investment securities	0	0
Total assets measured at fair value	$ 0	$ 0

FAIR VALUES OF FINANCIAL INST_5

FAIR VALUES OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Loyalty Ventures Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity method investment, other than temporary impairment	$ 0	$ 6,000,000	$ 44,000,000

FAIR VALUES OF FINANCIAL INST_6

FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Financial assets
Credit card and other loans, net	$ 19,011	$ 19,802
Total assets measured at fair value	19,011	19,802
Financial liabilities
Deposits	13,087	13,583
Debt issued by consolidated VIEs	4,572	3,900
Long-term and other debt	1,085	1,457
Total liabilities measured at fair value	18,744	18,940
Level 1
Financial assets
Credit card and other loans, net	0	0
Total assets measured at fair value	0	0
Financial liabilities
Deposits	0	0
Debt issued by consolidated VIEs	0	0
Long-term and other debt	0	0
Total liabilities measured at fair value	0	0
Level 2
Financial assets
Credit card and other loans, net	0	0
Total assets measured at fair value	0	0
Financial liabilities
Deposits	13,087	13,583
Debt issued by consolidated VIEs	4,572	3,900
Long-term and other debt	1,085	1,457
Total liabilities measured at fair value	18,744	18,940
Level 3
Financial assets
Credit card and other loans, net	19,011	19,802
Total assets measured at fair value	19,011	19,802
Financial liabilities
Deposits	0	0
Debt issued by consolidated VIEs	0	0
Long-term and other debt	0	0
Total liabilities measured at fair value	$ 0	$ 0

REGULATORY MATTERS AND CAPITA_3

REGULATORY MATTERS AND CAPITAL ADEQUACY - Actual Capital Ratios and Minimum Ratios (Details) $ in Millions	Dec. 31, 2024 USD ($)
Tier 1 Leverage Capital Ratio
Total risk-weighted asset, Actual	$ 19,928
Combined Banks
Common equity tier 1 capital ratio
Actual Ratio	0.124
Minimum Ratio for Capital Adequacy Purposes	4.50%
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	6.50%
Tier 1 capital ratio
Actual Ratio	0.124
Minimum Ratio for Capital Adequacy Purposes	0.060
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.080
Total risk-based capital ratio
Actual Ratio	0.138
Minimum Ratio for Capital Adequacy Purposes	0.080
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.100
Tier 1 Leverage Capital Ratio
Actual Ratio	0.115
Minimum Ratio for Capital Adequacy Purposes	0.040
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.050
Comenity Bank
Common equity tier 1 capital ratio
Actual Ratio	0.165
Minimum Ratio for Capital Adequacy Purposes	6%
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	8%
Tier 1 capital ratio
Actual Ratio	0.165
Minimum Ratio for Capital Adequacy Purposes	0.045
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.065
Total risk-based capital ratio
Actual Ratio	0.179
Minimum Ratio for Capital Adequacy Purposes	0.080
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.100
Tier 1 Leverage Capital Ratio
Actual Ratio	0.153
Minimum Ratio for Capital Adequacy Purposes	0.040
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.050
Comenity Capital Bank
Common equity tier 1 capital ratio
Actual Ratio	0.154
Minimum Ratio for Capital Adequacy Purposes	6%
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	8%
Tier 1 capital ratio
Actual Ratio	0.154
Minimum Ratio for Capital Adequacy Purposes	0.045
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.065
Total risk-based capital ratio
Actual Ratio	0.167
Minimum Ratio for Capital Adequacy Purposes	0.080
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.100
Tier 1 Leverage Capital Ratio
Actual Ratio	0.143
Minimum Ratio for Capital Adequacy Purposes	0.040
Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions	0.050

REGULATORY MATTERS AND CAPITA_4

REGULATORY MATTERS AND CAPITAL ADEQUACY - Narrative (Details) $ in Millions	Aug. 22, 2024 USD ($)
Comenity Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Agreement with FDIC to pay penalty	$ 1
Comenity Capital Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Agreement with FDIC to pay penalty	$ 1

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Oct. 18, 2024	Feb. 20, 2024
Pirinate Consulting Group, LLC v. Bread Financial Holdings, Inc.,
Loss Contingencies [Line Items]
Loss contingency, damages sought		$ 750
LoyaltyOne, Co. v. Bread Financial Holdings, Inc. et al
Loss Contingencies [Line Items]
Loss contingency, damages sought	$ 775

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Jul. 01, 2015	Jun. 30, 2015	Jul. 20, 2001
Defined Contribution Plan Disclosure [Line Items]
Employee contribution	3%
Percent of matching contribution	50%
Percentage of employees' contribution matched by employer	6%
Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Number of shares available for issuance (in shares)	143,633
Minimum age limit of employees covered by the plan	18 years
Company's matching and discretionary contributions	$ 29,000,000	$ 30,000,000	$ 17,000,000
Number of shares registered for issuance (in shares)						1,500,000
Supplemental Employee Retirement Plan
Defined Contribution Plan Disclosure [Line Items]
Vested percentage	100%
Deferred compensation liability	$ 25,000,000	$ 24,000,000
2015 Employee Stock Purchase Plan | Employee Stock
Defined Contribution Plan Disclosure [Line Items]
Maximum amount of common stock permitted to be purchased annually per employee	$ 25,000
Maximum percentage of voting power after purchase of common stock under ESPP	5%
Offering period under ESPP	6 months
Purchase price of common stock as a percentage of fair market value of shares	85%
Number of shares available for issuance (in shares)	520,328			1,000,000	1,441,327
Number of shares issued under the ESPP (in shares)	107,590
Weighted-average issue price of shares issued under the ESPP (in dollars per share)	$ 43.69
Number of shares issued under the ESPP since the inception of the plan (in shares)	920,999
2005 Employee Stock Purchase Plan | Employee Stock
Defined Contribution Plan Disclosure [Line Items]
Number of shares available for issuance (in shares)					441,327

CHANGES IN ACCUMULATED OTHER _3

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 2,918	$ 2,265	$ 2,086
Changes in other comprehensive (loss) income	(3)	2	(19)
Ending balance	3,051	2,918	2,265
Accumulated other comprehensive loss
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(19)	(21)	(2)
Ending balance	(22)	(19)	(21)
Net Unrealized Gains (Losses) on AFS Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16)	(18)	1
Changes in other comprehensive (loss) income	(3)	2	(19)
Ending balance	(19)	(16)	(18)
Foreign Currency Translation Losses
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(3)	(3)	(3)
Changes in other comprehensive (loss) income	0	0	0
Ending balance	$ (3)	$ (3)	$ (3)

STOCKHOLDERS' EQUITY - Stock Re

STOCKHOLDERS' EQUITY - Stock Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 02, 2024	Feb. 21, 2024
Stockholders' Equity Note [Abstract]
Stock repurchase program, authorized amount	$ 55,000				$ 30,000
Stock repurchase program, authorized increase amount				$ 25,000
Number of shares repurchased (in shares)	1
Total cost of shares repurchased	$ 55,000	$ 35,000	$ 12,000

STOCKHOLDERS' EQUITY - Stock Co

STOCKHOLDERS' EQUITY - Stock Compensation Plans and Expense (Details) - USD ($)	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	May 14, 2024	Jul. 01, 2022	Jun. 22, 2022	Dec. 31, 2021	Jul. 01, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)				7,667,594
Maximum award amount	$ 1,000,000
Stock-based compensation expense	54,000,000	$ 44,000,000	$ 33,000,000
Income tax benefits related to stock-based compensation expense	$ 9,000,000	$ 8,000,000	$ 5,000,000
Forfeiture rate (as a percent)	5%	5%	5%
Unrecognized expenses	$ 56,000,000
Approximate weighted average period for recognizing expenses	1 year 10 months 24 days
2020 Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares of common stock reserved for grant (in shares)								2,400,000
2022 Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)						3,075,000
Number of shares available for issuance (in shares)				203,687	203,687
Nonvested (in shares)				2,463,907
2024 Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock reserved for future issuance (in shares)				5,000,000
Service-based restricted stock unit awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonvested (in shares)	2,267,738	1,758,552	1,107,663				648,952
Award vesting period	3 years
Performance-based restricted stock unit awards
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonvested (in shares)	479,458	331,279	164,946				91,416
Award vesting period	3 years
Performance-based restricted stock unit awards | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Earned percentage	0%
Performance-based restricted stock unit awards | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Earned percentage	150%
Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Nonvested (in shares)	2,747,196	2,089,831	1,272,609				759,435
Total fair value of units vested	$ 47,000,000	$ 30,000,000	$ 18,000,000
Aggregate intrinsic value of units outstanding and expected to vest	$ 162,000,000

STOCKHOLDERS' EQUITY - Dividend

STOCKHOLDERS' EQUITY - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Jan. 30, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Dividends paid		$ 43	$ 42	$ 43
Subsequent Event [Line Items]
Dividends paid		$ 43	$ 42	$ 43
Cash dividend declared (usd per share)		$ 0.84	$ 0.84	$ 0.84
Subsequent Event
Subsequent Event [Line Items]
Cash dividend declared (usd per share)	$ 0.21

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock Unit Awards and Stock Options (Details) - $ / shares	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Restricted Stock Units
Number of Shares
Balance at the beginning of the period (in shares)	2,089,831	1,272,609	759,435
Shares granted (in shares)	1,551,145	1,348,052	848,691
Shares vested (in shares)	(825,768)	(443,303)	(227,060)
Shares forfeited (in shares)	(68,012)	(87,527)	(108,457)
Balance at the end of the period (in shares)	2,747,196	2,089,831	1,272,609
Outstanding and Expected to Vest (in shares)	2,648,763
Weighted Average Fair Value
Balance at the beginning of the period (in dollars per share)	$ 49.89	$ 68.86	$ 89.14
Shares granted (in dollars per share)	37.78	38.02	63.22
Shares vested (in dollars per share)	56.58	67.49	78.23
Shares forfeited (in dollars per share)	43.39	53.82	65.83
Balance at the end of the period (in dollars per share)	41.54	$ 49.89	$ 68.86
Outstanding and Expected to Vest (in dollars per share)	$ 41.80
Market-based restricted stock unit awards
Number of Shares
Balance at the beginning of the period (in shares)	0	0	19,067
Shares granted (in shares)	0	0	0
Shares vested (in shares)	0	0	0
Shares forfeited (in shares)	0	0	(19,067)
Balance at the end of the period (in shares)	0	0	0
Weighted Average Fair Value
Attainment percentage	100%	100%	100%
Performance-based restricted stock unit awards
Number of Shares
Balance at the beginning of the period (in shares)	331,279	164,946	91,416
Shares granted (in shares)	243,312	175,587	82,513
Shares vested (in shares)	(95,133)	(9,254)	(8,983)
Shares forfeited (in shares)	0	0	0
Balance at the end of the period (in shares)	479,458	331,279	164,946
Weighted Average Fair Value
Attainment percentage	100%	100%	100%
Service-based restricted stock unit awards
Number of Shares
Balance at the beginning of the period (in shares)	1,758,552	1,107,663	648,952
Shares granted (in shares)	1,307,833	1,172,465	766,178
Shares vested (in shares)	(730,635)	(434,049)	(218,077)
Shares forfeited (in shares)	(68,012)	(87,527)	(89,390)
Balance at the end of the period (in shares)	2,267,738	1,758,552	1,107,663

INCOME TAXES - Schedule of Comp

INCOME TAXES - Schedule of Components of Tax (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Components of Income from continuing operations before income taxes
Domestic	$ 375	$ 964	$ 297
Foreign	6	4	3
Income from continuing operations before income taxes	381	968	300
Current
Federal	156	261	279
State	29	37	41
Foreign	2	1	1
Total current income tax expense	187	299	321
Federal
Federal	(73)	(65)	(200)
State	(10)	(2)	(44)
Foreign	(2)	(1)	(1)
Total deferred income tax benefit	(85)	(68)	(245)
Total Provision for income taxes	$ 102	$ 231	$ 76

INCOME TAXES - Reconciliation (

INCOME TAXES - Reconciliation (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Expected expense at statutory rate	$ 80	$ 203	$ 63
Increase (decrease) in income taxes resulting from:
State and local income taxes, net of federal benefit	15	27	(2)
Non-deductible expenses	29	8	6
IRC Section 199, net of tax reserves	0	0	4
Basis difference in unconsolidated subsidiaries	0	0	(8)
Valuation allowance	(1)	(5)	16
Audit Resolutions	(20)	0	0
Other	(1)	(2)	(3)
Total Provision for income taxes	$ 102	$ 231	$ 76

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Favorable audit resolutions	$ 20	$ 0	$ 0
IRC Section 199, net of tax reserves	0	0	4
Deferred tax assets, unconsolidated subsidiaries			8
Valuation allowance	(1)	(5)	16
Issuance of shares to employees, net of shares withheld for employee taxes expense	7	2	3
Cumulative interest and penalties with respect to unrecognized tax benefits	86	84	74
Potential interest and penalties with respect to unrecognized tax benefits, expense (benefit)	2	9	(1)
Unrecognized tax benefits, if recognized, would impact effective tax rate	200	226	238
Additional Paid-In Capital
Operating Loss Carryforwards [Line Items]
Issuance of shares to employees, net of shares withheld for employee taxes expense	7	2	$ 3
APIC, capped call transactions for convertible senior notes, benefit		$ 9
Capital Loss Carryforward
Operating Loss Carryforwards [Line Items]
Capital loss carryforward	15
Domestic Tax Jurisdiction
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	113
Capital loss carryforward	48
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Net operating loss carryovers	233
Tax credits	1
Foreign Tax Jurisdiction
Operating Loss Carryforwards [Line Items]
Tax credits	$ 4

INCOME TAXES - Deferred Tax Ass

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2024	Dec. 31, 2023
Deferred tax assets
Deferred revenue	$ 12	$ 14
Allowance for credit losses	534	554
Net operating loss carryforwards and other carryforwards	48	51
Operating lease liabilities	29	34
Research & development expenses	53	36
Accrued expenses and other	87	79
Total deferred tax assets	763	768
Valuation allowance	(19)	(21)
Deferred tax assets, net of valuation allowance	744	747
Deferred tax liabilities
Deferred income	2	73
Depreciation	0	12
Right of use assets	19	22
Intangible assets	15	11
Total deferred tax liabilities	36	118
Net deferred tax assets	708	629
Deferred Tax Assets [Line Items]
Deferred tax asset, net	708	629
Other Assets
Deferred tax liabilities
Net deferred tax assets	708	629
Deferred Tax Assets [Line Items]
Deferred tax asset, net	$ 708	$ 629

INCOME TAXES - Unrecognized Tax

INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]
Balance at the beginning of the period	$ 215	$ 242	$ 247
Increases related to prior years’ tax positions	1	1	8
Decreases related to prior years’ tax positions	(40)	(11)	(25)
Increases related to current year tax positions	9	13	14
Settlements during the period	(21)	(10)	(2)
Lapses of applicable statutes of limitations	(10)	(20)
Balance at the end of the period	$ 154	$ 215	$ 242

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) $ / shares in Units, shares in Millions, $ in Millions		12 Months Ended
		Dec. 31, 2024 USD ($) trading_day $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Jun. 30, 2023 $ / shares
Numerator:
Income from continuing operations | $		$ 279	$ 737	$ 224
Loss from discontinued operations, net of income taxes | $	[1]	(2)	(19)	(1)
Net income | $		$ 277	$ 718	$ 223
Denominator:
Weighted average common stock outstanding- basic (in shares) | shares		49.6	49.8	49.9
Add: net effect of dilutive unvested restricted stock awards (in shares) | shares		0.7	0.2	0.1
Add: net effect of dilutive unvested restricted stock awards (in shares) | shares		0.1	0	0
Weighted average common stock outstanding - diluted (in shares) | shares		50.4	50	50
Basic EPS
Income from continuing operations (in dollars per share)		$ 5.63	$ 14.79	$ 4.48
Loss from discontinued operations (in dollars per share)		(0.05)	(0.40)	(0.01)
Net income per share (in dollars per share)		5.58	14.39	4.47
Diluted EPS
Income from continuing operations (in dollars per share)		5.54	14.74	4.47
Loss from discontinued operations (in dollars per share)		(0.05)	(0.40)	(0.01)
Net income per share (in dollars per share)		$ 5.49	$ 14.34	$ 4.46
Share awards excluded in the computation of diluted earnings per share (in shares) | shares		0.6	1.2	0.9
Convertible Debt
Diluted EPS
Conversion price (usd per share)		$ 38.43
Convertible Debt | 4.250% Convertible Senior Notes Due 2028
Diluted EPS
Threshold for redemption, days prior to maturity | trading_day		51
Conversion price (usd per share)					$ 61.48
Convertible Debt | Capped Call Transaction
Diluted EPS
Cap price (in dollars per share)		$ 61.48
[1] Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements.

PARENT COMPANY FINANCIAL STAT_3

PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Assets:
Cash and cash equivalents	$ 3,679	$ 3,590	$ 3,891
Other assets	1,403	1,364
Total assets	22,891	23,141
Liabilities:
Long-term and other debt	999	1,394
Other liabilities	1,201	1,311
Total liabilities	19,840	20,223
Stockholders’ equity	3,051	2,918	2,265	$ 2,086
Total liabilities and stockholders’ equity	22,891	23,141
Statements of Income
Total interest income	5,024	5,145	4,684
Net interest income	4,064	4,266	4,181
Loss from equity method investment	0	(6)	(44)
Total net interest and non-interest income	3,838	4,289	3,826
Total non-interest expenses	2,060	2,092	1,932
Income from continuing operations before income taxes	381	968	300
Benefit for income taxes	(102)	(231)	(76)
Net income	277	718	223
Other comprehensive (loss) income
Net income	277	718	223
Other comprehensive loss, net of tax	(3)	2	(19)
Total comprehensive income, net of tax	274	720	204
Statements of Cash Flows
Net cash used in operating activities	1,859	1,987	1,848
Cash flows from investing activities:
Net cash (used in) provided by investing activities	(1,169)	788	(5,111)
Cash flows from financing activities:
Payment of deferred financing costs	(15)	(63)	(13)
Payment of capped call transactions	0	(39)	0
Dividends paid	(43)	(42)	(43)
Repurchase of common stock	(55)	(35)	(12)
Other	(7)	(2)	(3)
Net cash (used in) provided by financing activities	(592)	(3,086)	3,267
Change in cash, cash equivalents and restricted cash	98	(311)	4
Cash, cash equivalents and restricted cash at end of period	3,714	3,616	3,927
Cash, cash equivalents and restricted cash at beginning of period	3,616	3,927	3,923
Bread Financial Payments, Inc.
Non-cash investing items
Equity method investment		318
Parent Company
Assets:
Cash and cash equivalents	21	2
Investment in subsidiaries	3,195	3,615
Intercompany receivables, net	773	612
Other assets	123	147
Total assets	4,112	4,376
Liabilities:
Long-term and other debt	999	1,394
Other liabilities	62	64
Total liabilities	1,061	1,458
Stockholders’ equity	3,051	2,918
Total liabilities and stockholders’ equity	4,112	4,376
Statements of Income
Total interest income	11	12	11
Total interest expense	116	111	107
Net interest income	(105)	(99)	(96)
Dividends from subsidiaries	910	1,063	382
Loss from equity method investment	0	(6)	(44)
Total net interest and non-interest income	805	958	242
Total non-interest expenses	121	12	1
Income from continuing operations before income taxes	684	946	241
Benefit for income taxes	38	31	22
Income before equity in undistributed net income of subsidiaries	722	977	263
Equity in undistributed net loss of subsidiaries	(445)	(259)	(40)
Net income	277	718	223
Other comprehensive (loss) income
Net income	277	718	223
Other comprehensive loss, net of tax	0	0	(3)
Total comprehensive income, net of tax	277	718	220
Statements of Cash Flows
Net cash used in operating activities	(182)	(422)	(219)
Cash flows from investing activities:
Dividends received	910	1,063	383
Net cash (used in) provided by investing activities	910	1,063	383
Cash flows from financing activities:
Borrowings under debt agreements	300	1,401	218
Repayments of borrowings under debt agreements	(894)	(1,882)	(319)
Payment of deferred financing costs	(10)	(45)	0
Payment of capped call transactions	0	(39)	0
Dividends paid	(43)	(42)	(43)
Repurchase of common stock	(55)	(35)	(12)
Other	(7)	(2)	(3)
Net cash (used in) provided by financing activities	(709)	(644)	(159)
Change in cash, cash equivalents and restricted cash	19	(3)	5
Cash, cash equivalents and restricted cash at end of period	21	2	5
Cash, cash equivalents and restricted cash at beginning of period	$ 2	$ 5	$ 0