Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Santander Consumer USA Holdings Inc. | |
Entity Central Index Key | 1,580,608 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 359,351,215 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents - $18,909 and $106,295 held at affiliates, respectively | $ 81,435 | $ 527,805 |
Finance receivables held for sale, net | 933,380 | 2,210,421 |
Finance receivables held for investment, net | 24,839,583 | 22,394,286 |
Restricted cash - $341 and $2,529 held at affiliates, respectively | 2,130,130 | 2,553,902 |
Accrued interest receivable | 304,538 | 340,618 |
Leased vehicles, net | 13,183,793 | 10,160,327 |
Furniture and equipment, net of accumulated depreciation of $67,823 and $55,525, respectively | 62,852 | 69,609 |
Federal, state and other income taxes receivable | 99,308 | 95,060 |
Related party taxes receivable | 467 | 467 |
Goodwill | 74,056 | 74,056 |
Intangible assets, net of amortization of $43,906 and $36,616, respectively | 32,177 | 29,734 |
Due from affiliates | 9,814 | 33,270 |
Other assets | 1,055,422 | 913,244 |
Total assets | 42,806,955 | 39,402,799 |
Liabilities: | ||
Notes payable — credit facilities | 5,632,053 | 4,848,316 |
Notes payable — secured structured financings | 24,867,297 | 22,557,895 |
Notes payable — related party | 3,003,529 | 3,754,223 |
Accrued interest payable | 44,555 | 38,529 |
Accounts payable and accrued expenses | 453,834 | 429,531 |
Deferred tax liabilities, net | 1,138,088 | 892,415 |
Due to affiliates | 69,804 | 82,382 |
Other liabilities | 456,580 | 333,806 |
Total liabilities | 35,665,740 | 32,937,097 |
Commitments and contingencies (Notes 5 and 10) | ||
Equity: | ||
Common stock, $0.01 par value - 1,100,000,000 shares authorized; 0 and 360,779,465 shares issued and 0 and 360,527,463 shares outstanding, respectively | 3,593 | 3,605 |
Additional paid-in capital | 1,647,738 | 1,681,558 |
Accumulated other comprehensive income, net | 56,601 | 44,262 |
Retained earnings | 5,433,283 | 4,736,277 |
Total stockholders’ equity | 7,141,215 | 6,465,702 |
Total liabilities and equity | 42,806,955 | 39,402,799 |
Assets | ||
Restricted cash | 1,570,773 | 1,995,557 |
Finance receivables held for sale, net | 0 | 1,106,393 |
Finance receivables held for investment, net | 23,948,565 | 21,681,882 |
Leased vehicles, net | 13,183,793 | 10,160,327 |
Various other assets | 721,765 | 747,101 |
Total assets | 39,424,896 | 35,691,260 |
Liabilities | ||
Notes payable | 31,243,698 | 28,467,942 |
Various other liabilities | 113,193 | 197,969 |
Total liabilities | $ 31,356,891 | $ 28,665,911 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash and cash equivalents held for affiliates | $ 18,909 | $ 106,295 |
Restricted cash held for affiliates | 341 | 2,529 |
Accumulated depreciation | 67,823 | 55,525 |
Accumulated amortization | $ 43,906 | $ 36,616 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,100,000,000 | 1,100,000,000 |
Common stock, shares issued | 361,986,423 | 360,779,465 |
Common stock, shares outstanding | 359,346,730 | 360,527,463 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Interest on finance receivables and loans | $ 1,227,129 | $ 1,218,299 | $ 3,606,675 | $ 3,680,533 |
Leased vehicle income | 583,097 | 457,932 | 1,625,272 | 1,305,429 |
Other finance and interest income | 8,522 | 6,385 | 24,153 | 15,415 |
Total finance and other interest income | 1,818,748 | 1,682,616 | 5,256,100 | 5,001,377 |
Interest expense — Including $40,868, $35,132, $126,541 and $109,648 to affiliates, respectively | 285,583 | 250,674 | 800,564 | 711,134 |
Leased vehicle expense | 389,076 | 339,581 | 1,108,094 | 927,976 |
Net finance and other interest income | 1,144,089 | 1,092,361 | 3,347,442 | 3,362,267 |
Provision for credit losses | 597,914 | 571,012 | 1,514,799 | 1,765,518 |
Net finance and other interest income after provision for credit losses | 546,175 | 521,349 | 1,832,643 | 1,596,749 |
Profit sharing | 1,652 | 5,945 | 18,882 | 22,333 |
Net finance and other interest income after provision for credit losses and profit sharing | 544,523 | 515,404 | 1,813,761 | 1,574,416 |
Investment losses, net — Including $4,218, $29,081, $24,298 and $22,900 from affiliates, respectively | (86,320) | (52,592) | (255,474) | (228,513) |
Servicing fee income — Including $12,158, $2,739, $33,605 and $8,627 from affiliates, respectively | 26,409 | 28,673 | 80,129 | 92,310 |
Fees, commissions, and other — Including $4,303, $225 and $5,072 and $830 from affiliates, respectively | 84,552 | 82,866 | 247,423 | 275,025 |
Total other income | 24,641 | 58,947 | 72,078 | 138,822 |
Compensation expense | 119,722 | 134,169 | 360,325 | 398,325 |
Repossession expense | 62,189 | 66,877 | 197,930 | 205,445 |
Other operating costs — Including $2,473, $1,037, $7,468 and $3,403 to affiliates, respectively | 90,431 | 96,857 | 278,949 | 281,626 |
Total operating expenses | 272,342 | 297,903 | 837,204 | 885,396 |
Income before income taxes | 296,822 | 276,448 | 1,048,635 | 827,842 |
Income tax expense | 64,874 | 77,879 | 237,047 | 232,484 |
Net income | 231,948 | 198,569 | 811,588 | 595,358 |
Other comprehensive income (loss): | ||||
Change in unrealized gains (losses) on cash flow hedges, net of tax of ($2,078), $201, $903 and $297, respectively | (5,848) | (379) | 6,190 | (778) |
Comprehensive income | $ 226,100 | $ 198,190 | $ 817,778 | $ 594,580 |
Net income per common share (basic) (in usd per share) | $ 0.64 | $ 0.55 | $ 2.25 | $ 1.66 |
Net income per common share (diluted) (in usd per share) | 0.64 | 0.55 | 2.24 | 1.65 |
Dividend declared per common share (in usd per share) | $ 0.20 | $ 0 | $ 0.30 | $ 0 |
Weighted average common shares (basic) (in shares) | 360,725,330 | 359,619,083 | 360,898,973 | 359,397,063 |
Weighted average common shares (diluted) (in shares) | 361,445,223 | 360,460,353 | 361,714,123 | 360,069,449 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Interest expense to affiliates | $ 40,868 | $ 35,132 | $ 126,541 | $ 109,648 |
Investment losses, net from affiliates | 4,218 | 29,081 | 24,298 | 22,900 |
Servicing fee income from affiliates | 12,158 | 2,739 | 33,605 | 8,627 |
Fees, commissions and other from affiliates | 4,303 | 225 | 5,072 | 830 |
Other operating costs to affiliates | 2,473 | 1,037 | 7,468 | 3,403 |
Change in unrealized gains (losses) on cash flow hedges, tax | $ (2,078) | $ 201 | $ 903 | $ 297 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2016 | 358,908,000 | ||||
Beginning balance at Dec. 31, 2016 | $ 5,238,619 | $ 3,589 | $ 1,657,611 | $ 28,259 | $ 3,549,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 138,891 | ||||
Ending balance at Mar. 31, 2017 | 5,414,462 | ||||
Beginning balance (in shares) at Dec. 31, 2016 | 358,908,000 | ||||
Beginning balance at Dec. 31, 2016 | 5,238,619 | $ 3,589 | 1,657,611 | 28,259 | 3,549,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 396,788 | ||||
Ending balance at Jun. 30, 2017 | 5,667,420 | ||||
Beginning balance (in shares) at Dec. 31, 2016 | 358,908,000 | ||||
Beginning balance at Dec. 31, 2016 | 5,238,619 | $ 3,589 | 1,657,611 | 28,259 | 3,549,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment upon adoption of ASU | 26,552 | 1,439 | 25,113 | ||
Stock issued in connection with employee incentive compensation plans (in shares) | 871,000 | ||||
Stock issued in connection with employee incentive compensation plans | 1,591 | $ 9 | 1,582 | ||
Stock-based compensation expense | 12,166 | 12,166 | |||
Purchase of treasury stock (in shares) | (29,000) | ||||
Purchase of treasury stock | (404) | (404) | |||
Tax sharing with affiliate | (2) | (2) | |||
Net income | 595,358 | 595,358 | |||
Other comprehensive income (loss), net of taxes | (778) | (778) | |||
Ending balance (in shares) at Sep. 30, 2017 | 359,750,000 | ||||
Ending balance at Sep. 30, 2017 | 5,873,102 | $ 3,598 | 1,672,392 | 27,481 | 4,169,631 |
Beginning balance (in shares) at Dec. 31, 2016 | 358,908,000 | ||||
Beginning balance at Dec. 31, 2016 | 5,238,619 | $ 3,589 | 1,657,611 | 28,259 | 3,549,160 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 1,172,807 | ||||
Ending balance (in shares) at Dec. 31, 2017 | 360,527,463 | 360,527,000 | |||
Ending balance at Dec. 31, 2017 | $ 6,465,702 | $ 3,605 | 1,681,558 | 44,262 | 4,736,277 |
Beginning balance at Mar. 31, 2017 | 5,414,462 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 257,898 | ||||
Ending balance at Jun. 30, 2017 | 5,667,420 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 198,569 | ||||
Ending balance (in shares) at Sep. 30, 2017 | 359,750,000 | ||||
Ending balance at Sep. 30, 2017 | $ 5,873,102 | $ 3,598 | 1,672,392 | 27,481 | 4,169,631 |
Beginning balance (in shares) at Dec. 31, 2017 | 360,527,463 | 360,527,000 | |||
Beginning balance at Dec. 31, 2017 | $ 6,465,702 | $ 3,605 | 1,681,558 | 44,262 | 4,736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 244,614 | ||||
Ending balance at Mar. 31, 2018 | $ 6,713,532 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 360,527,463 | 360,527,000 | |||
Beginning balance at Dec. 31, 2017 | $ 6,465,702 | $ 3,605 | 1,681,558 | 44,262 | 4,736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 579,640 | ||||
Ending balance at Jun. 30, 2018 | $ 7,033,635 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 360,527,463 | 360,527,000 | |||
Beginning balance at Dec. 31, 2017 | $ 6,465,702 | $ 3,605 | 1,681,558 | 44,262 | 4,736,277 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment upon adoption of ASU | 0 | 6,149 | (6,149) | ||
Stock issued in connection with employee incentive compensation plans (in shares) | 1,208,000 | ||||
Stock issued in connection with employee incentive compensation plans | 5,724 | $ 12 | 5,712 | ||
Stock-based compensation expense | 6,892 | 6,892 | |||
Purchase of treasury stock (in shares) | (2,388,000) | ||||
Purchase of treasury stock | (50,179) | $ (24) | (50,155) | ||
Dividends | (108,433) | (108,433) | |||
Tax sharing with affiliate | 3,731 | 3,731 | |||
Net income | 811,588 | 811,588 | |||
Other comprehensive income (loss), net of taxes | $ 6,190 | 6,190 | |||
Ending balance (in shares) at Sep. 30, 2018 | 359,346,730 | 359,347,000 | |||
Ending balance at Sep. 30, 2018 | $ 7,141,215 | $ 3,593 | 1,647,738 | 56,601 | 5,433,283 |
Beginning balance at Mar. 31, 2018 | 6,713,532 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 335,026 | ||||
Ending balance at Jun. 30, 2018 | $ 7,033,635 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Purchase of treasury stock (in shares) | (2,387,691,000) | ||||
Net income | $ 231,948 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 359,346,730 | 359,347,000 | |||
Ending balance at Sep. 30, 2018 | $ 7,141,215 | $ 3,593 | $ 1,647,738 | $ 56,601 | $ 5,433,283 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 811,588 | $ 595,358 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Derivative mark to market | (12,999) | (7,694) |
Provision for credit losses | 1,514,799 | 1,765,518 |
Depreciation and amortization | 1,211,386 | 1,013,738 |
Accretion of discount | (127,238) | (193,473) |
Originations and purchases of receivables held for sale | (1,790,552) | (2,773,407) |
Proceeds from sales of and collections on receivables held for sale | 3,043,148 | 3,032,688 |
Change in revolving personal loans, net | (147,976) | (139,358) |
Investment losses, net | 255,474 | 228,513 |
Stock-based compensation | 6,892 | 12,166 |
Deferred tax expense | 242,361 | 257,385 |
Changes in assets and liabilities: | ||
Accrued interest receivable | 22,599 | 11,986 |
Accounts receivable | 9,828 | (6,049) |
Federal income tax and other taxes | (4,257) | (24,823) |
Other assets | (77,235) | (61,765) |
Accrued interest payable | 8,151 | (86) |
Other liabilities | 113,602 | (28,176) |
Due to/from affiliates | 6,062 | 27,858 |
Net cash provided by operating activities | 5,085,633 | 3,710,379 |
Cash flows from investing activities: | ||
Originations of and disbursements on finance receivables held for investment | (11,856,650) | (8,448,231) |
Purchases of portfolios of finance receivables held for investment | (183,824) | (228,843) |
Collections on finance receivables held for investment | 8,035,336 | 7,700,586 |
Proceeds from sale of loans held for investment | 0 | 135,577 |
Leased vehicles purchased | (7,678,161) | (4,718,388) |
Manufacturer incentives received | 785,499 | 787,093 |
Proceeds from sale of leased vehicles | 2,722,688 | 1,807,729 |
Change in revolving personal loans, net | 70,861 | 57,761 |
Purchases of furniture and equipment | (7,065) | (15,113) |
Sales of furniture and equipment | 95 | 747 |
Other investing activities | (10,070) | (5,852) |
Net cash used in investing activities | (8,121,291) | (2,926,934) |
Cash flows from financing activities: | ||
Proceeds from notes payable related to secured structured financings — net of debt issuance costs | 12,870,460 | 12,272,344 |
Payments on notes payable related to secured structured financings | (10,586,031) | (10,638,153) |
Proceeds from unsecured notes payable | 0 | 6,165,000 |
Payments on unsecured notes payable | 0 | (4,885,577) |
Proceeds from notes payable | 20,179,195 | 15,466,611 |
Payments on notes payable | (20,145,458) | (19,129,562) |
Proceeds from stock option exercises, gross | 5,962 | 4,970 |
Dividends paid | (108,433) | 0 |
Shares repurchased | (50,179) | 0 |
Net cash provided by (used in) financing activities | 2,165,516 | (744,367) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (870,142) | 39,078 |
Cash and cash equivalent and restricted cash — Beginning of period | 3,081,707 | 2,917,479 |
Cash and cash equivalents and restricted cash — End of period | 2,211,565 | 2,956,557 |
Noncash investing and financing transactions: | ||
Transfer of notes payable between secured and unsecured notes payable | $ 0 | $ 495,991 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Supplemental cash flow information: | ||||
Cash and cash equivalents | $ 81,435 | $ 527,805 | $ 397,311 | |
Restricted cash | 2,130,130 | 2,553,902 | 2,559,246 | |
Total cash and cash equivalents and restricted cash | $ 2,211,565 | $ 3,081,707 | $ 2,956,557 | $ 2,917,479 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices | Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices SC, or the Company, is the holding company for SC Illinois, and its subsidiaries, a specialized consumer finance company focused on vehicle finance and third-party servicing. The Company’s primary business is the indirect origination and securitization of retail installment contracts, principally, through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. Since May 2013, under the Chrysler Agreement with FCA, the Company has been FCA's preferred provider for consumer loans and leases and Dealer Loans. Under the Chrysler Agreement, the Company offers a full spectrum of auto financing products and services to FCA customers and dealers under the Chrysler Capital brand. These products and services include consumer retail installment contracts and leases, as well as Dealer Loans for inventory, construction, real estate, working capital and revolving lines of credit. Retail installment contracts and vehicle leases entered into with FCA customers, as part of the Chrysler Agreement, represent a significant concentration of those portfolios and there is a risk that the Chrysler Agreement could be terminated prior to its expiration date. Termination of the Chrysler Agreement could result in a decrease in the amount of new retail installment contracts and vehicle leases entered into with FCA customers as well as Dealer Loans. In June 2018, the Company announced that it was in exploratory discussions with FCA regarding the future of FCA’s U.S. finance operations. FCA has announced its intention to establish a captive U.S. auto finance unit and indicated that acquiring Chrysler Capital is one option it will consider. Under the Chrysler Agreement, FCA has the option to acquire, for fair market value, an equity participation in the business offering and providing the financial services contemplated by the Chrysler Agreement. The likelihood, timing and structure of any such transaction, and the likelihood that the Chrysler Agreement will terminate, cannot be reasonably determined. In July 2018, in order to facilitate discussions regarding the Chrysler Agreement, FCA and the Company entered into a tolling agreement pursuant to which the parties agreed to preserve their respective rights, claims and defenses under the Chrysler Agreement as they existed on April 30, 2018. The Company also originates vehicle loans through a web-based direct lending program, purchases vehicle retail installment contracts from other lenders, and services automobile and recreational and marine vehicle portfolios for other lenders. Additionally, the Company has other relationships through which it provides personal loans, private-label revolving lines of credit and other consumer finance products. As of September 30, 2018 , the Company was owned approximately 68.3% by SHUSA, a subsidiary of Santander, and approximately 31.7% by other shareholders. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered VIEs. The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements as of September 30, 2018 and December 31, 2017 , and for the three and nine months ended September 30, 2018 and 2017 , have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the 2017 Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, impairment, fair value, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. Corrections to Previously Reported Amounts In connection with preparing its financial statements for the quarter ended September 30, 2018, the Company identified and corrected two immaterial errors. To correct the errors, the Company has prepared its consolidated financial statement as of and for the period ended September 30, 2018 on a corrected basis and revised its comparative consolidated financial statements included within. The matters giving rise to the corrections are summarized below: • For core retail auto loans originated after January 1, 2017, as previously disclosed, the Company had determined past due status using a 90% required minimum payment threshold, while continuing to use a 50% threshold to report past due status on core retail auto loans originated prior to that date. The Company treated the change as a change in estimate. In Q3 2018, the Company determined that a borrower's payment of 50% of the contractual amount was not sufficient to qualify as substantially all of the contractual payments due, and historically a 90% required minimum payment threshold should be used for all loans and our prior reporting was in error. Therefore, the consolidated financial statements and related delinquency disclosures have been corrected to be on that basis. • On January 1, 2017, as previously disclosed, the Company prospectively began classifying as non-accrual loans (1) any loans designated as TDRs and 60+ days past due at the time of TDR and (2) any loans less than 60 days past due at the time of TDR that had a third instance of deferral. These TDR loans were also placed on a cost recovery basis from that time forward and not returned to accrual status until there was sustained evidence of collectability. The Company treated the change as a change in estimate. In Q3 2018, the Company determined the changes in both nonaccrual designation and cost recovery basis were in error and, in turn, has corrected the error by reverting to its accounting policy at December 31, 2016 whereby loans are placed on non-accrual when they are 60+ days past due status, and reversing the impacts of the change going back to January 1, 2017. The following tables summarize the impacts of the corrections on the Company’s Consolidated Balance Sheet: June 30, 2018 March 31, 2018 December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Assets Finance receivable held for investment, net 24,096,770 (39,606 ) 24,057,164 22,587,358 (35,712 ) 22,551,646 22,427,769 (33,483 ) 22,394,286 Accrued interest receivable 286,164 23,658 309,822 269,258 19,264 288,522 326,640 13,978 340,618 Total assets $ 41,173,136 $ (15,948 ) $ 41,157,188 $ 40,045,188 $ (16,448 ) $ 40,028,740 $ 39,422,304 $ (19,505 ) $ 39,402,799 Liabilities and Equity Liabilities: Deferred tax liabilities, net 1,079,557 (3,849 ) 1,075,708 966,444 (3,965 ) 962,479 897,121 (4,706 ) 892,415 Total liabilities $ 34,127,402 $ (3,849 ) $ 34,123,553 $ 33,319,173 $ (3,965 ) $ 33,315,208 $ 32,941,803 $ (4,706 ) $ 32,937,097 Total stockholders' equity 7,045,734 (12,099 ) 7,033,635 6,726,015 (12,483 ) 6,713,532 6,480,501 (14,799 ) 6,465,702 Total liabilities and equity $ 41,173,136 $ (15,948 ) $ 41,157,188 $ 40,045,188 $ (16,448 ) $ 40,028,740 $ 39,422,304 $ (19,505 ) $ 39,402,799 September 30, 2017 June 30, 2017 March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Assets Finance receivable held for investment, net 22,667,203 (29,211 ) 22,637,992 23,634,914 (21,165 ) 23,613,749 23,444,625 (9,373 ) 23,435,252 Accrued interest receivable 330,554 9,744 340,298 330,710 3,023 333,733 306,742 2,123 308,865 Total assets $ 38,765,557 $ (19,467 ) $ 38,746,090 $ 39,507,482 $ (18,142 ) $ 39,489,340 $ 39,061,940 $ (7,250 ) $ 39,054,690 Liabilities and Equity Liabilities: Deferred tax liabilities, net 1,515,932 (7,335 ) 1,508,597 1,419,820 (6,829 ) 1,412,991 1,342,055 (2,714 ) 1,339,341 Total liabilities $ 32,880,323 $ (7,335 ) $ 32,872,988 $ 33,828,749 $ (6,829 ) $ 33,821,920 $ 33,642,942 $ (2,714 ) $ 33,640,228 Total stockholders' equity 5,885,234 (12,132 ) 5,873,102 5,678,733 (11,313 ) 5,667,420 5,418,998 (4,536 ) 5,414,462 Total liabilities and equity $ 38,765,557 $ (19,467 ) $ 38,746,090 $ 39,507,482 $ (18,142 ) $ 39,489,340 $ 39,061,940 $ (7,250 ) $ 39,054,690 The following tables summarize the impacts of the corrections on the Consolidated Statements of Income and Comprehensive Income: Six months ended June 30, 2018 Three months ended June 30, 2018 Three months ended March 31, 2018 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 2,270,673 108,873 2,379,546 1,156,536 54,470 1,211,006 1,114,137 54,403 1,168,540 Provision for credit losses 811,570 105,315 916,885 352,575 53,969 406,544 458,995 51,346 510,341 Income (loss) before income taxes 748,255 3,558 751,813 448,645 501 449,146 299,610 3,057 302,667 Income tax expense 171,315 857 172,172 114,004 116 114,120 57,311 741 58,052 Net income (loss) 576,940 2,700 579,640 334,641 385 335,026 242,299 2,315 244,614 Net income (loss) per common share (basic) $ 1.60 $ 0.01 $ 1.61 $ 0.93 $ — $ 0.93 $ 0.67 $ 0.01 $ 0.68 Net income (loss) per common share (diluted) $ 1.59 $ 0.01 $ 1.60 $ 0.92 $ 0.01 $ 0.93 $ 0.67 $ 0.01 $ 0.68 For the year ended December 31, 2017 Nine months ended September 30, 2017 Three months ended September 30, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 4,755,678 89,945 4,845,623 3,626,497 54,036 3,680,533 1,185,059 33,240 1,218,299 Provision for credit losses 2,254,361 109,450 2,363,811 1,692,015 73,503 1,765,518 536,447 34,565 571,012 Income (loss) before income taxes 823,514 (19,505 ) 804,009 847,309 (19,467 ) 827,842 277,773 (1,325 ) 276,448 Income tax expense (364,092 ) (4,706 ) (368,798 ) 239,819 (7,335 ) 232,484 78,385 (506 ) 77,879 Net income (loss) 1,187,606 (14,799 ) 1,172,807 607,490 (12,132 ) 595,358 199,388 (819 ) 198,569 Net income (loss) per common share (basic) $ 3.30 $ (0.04 ) $ 3.26 $ 1.69 $ (0.03 ) $ 1.66 $ 0.55 $ — $ 0.55 Net income (loss) per common share (diluted) $ 3.30 $ (0.04 ) $ 3.26 $ 1.69 $ (0.04 ) $ 1.65 $ 0.55 $ — $ 0.55 Six months ended June 30, 2017 Three months ended June 30, 2017 Three months ended March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 2,441,438 20,796 2,462,234 1,232,252 (8,167 ) 1,224,085 1,209,186 28,963 1,238,149 Provision for credit losses 1,155,568 38,938 1,194,506 520,555 2,725 523,280 635,013 36,213 671,226 Income (loss) before income taxes 569,536 (18,142 ) 551,394 348,108 (10,892 ) 337,216 221,428 (7,250 ) 214,178 Income tax expense 161,434 (6,829 ) 154,605 83,433 (4,115 ) 79,318 78,001 (2,714 ) 75,287 Net income (loss) 408,102 (11,314 ) 396,788 264,675 (6,777 ) 257,898 143,427 (4,536 ) 138,891 Net income (loss) per common share (basic) $ 1.14 $ (0.04 ) $ 1.10 $ 0.74 $ (0.02 ) $ 0.72 $ 0.40 $ (0.01 ) $ 0.39 Net income (loss) per common share (diluted) $ 1.13 $ (0.03 ) $ 1.10 $ 0.74 $ (0.02 ) $ 0.72 $ 0.40 $ (0.01 ) $ 0.39 The following tables summarize the impacts of the corrections on the Consolidated Statement of Cash Flows: Six months ended June 30, 2018 Three months ended March 31, 2018 For the year ended December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Net cash provided by operating activities 3,413,047 99,192 3,512,239 1,835,235 49,117 1,884,352 3,766,605 75,968 3,842,573 Net cash used in investing activities (4,773,776 ) (99,192 ) (4,872,968 ) (1,528,057 ) (49,117 ) (1,577,174 ) (3,415,591 ) (75,968 ) (3,491,559 ) Nine months ended September 30, 2017 Six months ended June 30, 2017 Three months ended March 31, 2017 Reported (a) Corrections Revised Reported (a) Corrections Revised Reported (a) Corrections Revised Net cash provided by operating activities 3,666,086 44,293 3,710,379 2,215,804 17,773 2,233,577 1,464,010 26,840 1,490,850 Net cash used in investing activities (2,882,641 ) (44,293 ) (2,926,934 ) (2,352,925 ) (17,773 ) (2,370,698 ) (1,165,288 ) (26,840 ) (1,192,128 ) (a) Adjusted for ASU 2016-18 Statement of Cash Flows (Topic 230) for periods ended September 30, 2017, June 30, 2017, and March 31, 2017 In addition to the revision of the Company’s consolidated financial statements, information within the footnotes to the consolidated statements has been revised to reflect the correction of the errors discussed above. The following table summarizes the impacts of the corrections of those items, including table disclosures in Note 4 Credit Loss Allowance and Credit Quality: June 30, 2018 March 31, 2018 December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised TDR - Unpaid principal balance $ 5,958,564 $ 139,716 $ 6,098,280 $ 5,998,768 $ 97,110 $ 6,095,878 $ 6,261,894 $ 52,141 $ 6,314,035 TDR - Impairment 1,496,580 167,642 1,664,222 1,595,465 120,667 1,716,132 1,731,320 72,812 1,804,132 TDR allowance ratio 25.1 % 2.2 % 27.3 % 26.6 % 1.6 % 28.2 % 27.6 % 1.0 % 28.6 % Nonaccrual loans TDRs 1,554,860 (957,705 ) 597,155 1,346,148 (781,215 ) 564,933 1,390,373 (583,435 ) 806,938 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,535,166 116,651 2,651,817 2,238,425 95,020 2,333,445 2,827,678 130,517 2,958,195 Delinquent principal over 59 days 1,151,410 83,092 1,234,502 1,089,648 72,663 1,162,311 1,544,583 101,206 1,645,789 Total delinquent principal 3,686,576 199,743 3,886,319 3,328,073 167,683 3,495,756 4,372,261 231,723 4,603,984 September 30, 2017 June 30, 2017 March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised TDR - Unpaid principal balance $ 6,276,659 $ 24,499 $ 6,301,158 $ 5,880,317 $ 9,978 $ 5,890,295 $ 5,788,390 $ 1,251 $ 5,789,641 TDR - Impairment 1,782,114 40,400 1,822,514 1,686,159 18,337 1,704,496 1,604,489 8,033 1,612,522 TDR allowance ratio 28.4 % 0.5 % 28.9 % 28.7 % 0.3 % 29.0 % 27.7 % 0.1 % 27.8 % Nonaccrual loans TDRs Not applicable, since disclosure started in Q4'2017 Not applicable, since disclosure started in Q4'2017 Not applicable, since disclosure started in Q4'2017 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,580,226 114,104 2,694,330 2,709,606 133,781 2,843,387 2,345,995 98,728 2,444,723 Delinquent principal over 59 days 1,464,543 76,580 1,541,123 1,417,461 92,946 1,510,407 1,153,369 72,318 1,225,687 Total delinquent principal 4,044,769 190,684 4,235,453 4,127,067 226,727 4,353,794 3,499,364 171,046 3,670,410 Business Segment Information The Company has one reportable segment: Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and Dealer Loans, as well as financial products and services related to recreational vehicles, and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations. Accounting Policies There have been no material changes in the Company's accounting policies from those disclosed in Part II, Item 8 - Financial Statements and Supplementary Data in the 2017 Annual Report on Form 10-K. Recently Adopted Accounting Standards Since January 1, 2018, the Company adopted the following Financial Accounting Standards Board (FASB) Accounting Standards Updates (ASUs): • ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as amended . This ASU, requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It includes a five-step process to assist an entity in achieving the main principles of revenue recognition under ASC 606. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans, securities, and derivatives), it did not have a material impact on the elements of the Company's Consolidated Statements of Operations most closely associated with leases and financial instruments (such as interest income, interest expense and investment gains and losses). All other revenue streams in the scope of the new standard were not material. The Company adopted this standard as of January 1, 2018 using a modified retrospective approach. The adoption of this standard did not require any adjustments to the opening balance of retained earnings as of January 1, 2018. • ASU 2016-18, Statement of Cash Flows (Topic 230) . Restricted Cash (A consensus of the FASB Emerging Issues Task Force) , which requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown on the statement of cash flows and that the statement of cash flows explain changes in restricted cash during the period. The Company adopted this standard as of January 1, 2018 using retrospective approach. The impact of this adoption was disclosure only for periods presented on the Company's Statements of Cash Flows. • ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The new guidance amends the hedge accounting model to enable entities to more accurately reflect their risk management activities in the financial statements. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line in which the earnings effect of the hedged item is reported. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company elected to early adopt this standard as of January 1, 2018 using modified retrospective approach. The adoption of this standard did not require any adjustments to the opening balance of retained earnings for cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness. • ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company elected to early adopt this standard as of January 1, 2018 and reclassified $6,149 stranded income tax effects from accumulated other comprehensive income to retained earnings. The adoption of the following ASUs did not have an impact on the Company's business, financial position or results of operations. • ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as amended • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments • ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory • ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business • ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets • ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost • ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting • ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 • ASU 2018-06, Codification Improvements to Topic 942, Financial Services—Depository and Lending Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . The primary effect of the ASU is to replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The ASU is effective on January 1, 2019, with early adoption permitted. The Company is currently in the process of reviewing its lease contracts and examining the practical expedients and accounting policy elections provided in the ASU, as well as ensuring the Company's control environment and reporting processes reflect the requirements of the ASU. Upon adoption, for our operating leases where the Company is the lessee (primarily our facilities leases), the Company's balance sheet will include a right-of-use asset and lease liability that will be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition, the Company will no longer capitalize certain initial direct costs in connection with lease originations where it is the lessor. The ASU will be applied on a modified retrospective basis with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Comparative periods presented in the financial statement and associated required disclosures will continue to be presented in accordance with Topic 840. The Company currently plans to adopt the ASU on January 1, 2019. The Company does not anticipate that the adoption of the ASU will have a material impact to our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in material changes to the Company’s credit and capital reserves. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In addition to those described in detail above, the Company is also in the process of evaluating the following ASUs and does not expect them to have a material impact on the Company's business, financial position, results of operations or disclosures: • ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force) • ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception • ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting • ASU 2018-09, Codification Improvements |
Finance Receivables (As Revised
Finance Receivables (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Finance Receivables (As Revised) | Finance Receivables (As Revised) Held For Investment Finance receivables held for investment, net is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail installment contracts acquired individually (a) (b) $ 24,784,966 $ 22,329,026 Purchased receivables-Credit Impaired 20,673 27,839 Receivables from dealers 14,787 15,623 Personal loans 2,507 4,459 Capital lease receivables (Note 3) 16,650 17,339 Finance receivables held for investment, net $ 24,839,583 $ 22,394,286 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As at September 30, 2018 and December 31, 2017 , $14,138 and $22,124 of loans were recorded at fair value (Note 13). (b) During the three months ended September 30, 2018 , the Company purchased finance receivables from a third party lender for $67,249 . The unpaid principal balance of these loans as of the acquisition date was $74,086 . The Company determined that the acquired loans were non-credit impaired loans because they either did not have evidence of credit quality deterioration or it was not probable that the Company would not collect all contractually required payments, which was evaluated using a number of factors including the loan’s delinquency status, borrower’s credit status, and roll rates. Accordingly, these loans are accounted for in accordance with ASC 310 - 20. Under ASC 310-20, the difference between the loan's principal balance, at the time of purchase, and the fair value is recognized as an adjustment of yield over the life of the loan. All other policies related to interest income, calculation of allowance for loan losses, and recognizing TDRs would be similar to retail installment contracts acquired individually and are originated by the Company. The Company's held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, 2018 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 22,483,913 $ 5,759,094 $ 14,942 $ 3,266 Credit loss allowance - specific — (1,559,808 ) — — Credit loss allowance - collective (1,740,862 ) — (155 ) (897 ) Discount (191,421 ) (48,787 ) — — Capitalized origination costs and fees 77,832 5,005 — 138 Net carrying balance $ 20,629,462 $ 4,155,504 $ 14,787 $ 2,507 December 31, 2017 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 19,679,082 $ 6,314,035 $ 15,787 $ 6,887 Credit loss allowance - specific — (1,804,132 ) — — Credit loss allowance - collective (1,540,315 ) — (164 ) (2,565 ) Discount (309,191 ) (74,832 ) — (1 ) Capitalized origination costs and fees 58,638 5,741 — 138 Net carrying balance $ 17,888,214 $ 4,440,812 $ 15,623 $ 4,459 Retail installment contracts Retail installment contracts are collateralized by vehicle titles, and the Company has the right to repossess the vehicle in the event the consumer defaults on the payment terms of the contract. Most of the Company’s retail installment contracts held for investment are pledged against warehouse lines or securitization bonds (Note 5). Most of the borrowers on the Company’s retail installment contracts held for investment are retail consumers; however, $524,772 and $641,158 of the unpaid principal balance represented fleet contracts with commercial borrowers as of September 30, 2018 and December 31, 2017 , respectively. During the nine months ended September 30, 2018 and 2017 , the Company originated $6,452,924 and $5,168,089 , respectively, in Chrysler Capital loans which represented 48% and 46% , respectively, of the total retail installment contract originations (unpaid principal balance). As of September 30, 2018 and December 31, 2017 , the Company's carrying value of auto retail installment contract portfolio consisted of $8,684,860 and $8,249,803 , respectively, of Chrysler Capital loans which represents 35% and 37% , respectively, of the Company's carrying value of auto retail installment contract portfolio. As of September 30, 2018 , borrowers on the Company’s retail installment contracts held for investment are located in Texas ( 16% ), Florida ( 11% ), California ( 9% ), Georgia ( 6% ) and other states each individually representing less than 5% of the Company’s total portfolio. Purchased receivables - Credit impaired Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Outstanding balance $ 32,642 $ 43,474 Outstanding recorded investment, net of impairment 20,833 28,069 Changes in accretable yield on the Company’s purchased receivables portfolios-credit impaired for the periods indicated were as follows: For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Balance — beginning of period $ 18,368 $ 87,994 $ 19,464 $ 107,041 Accretion of accretable yield (1,974 ) (5,223 ) (7,059 ) (26,670 ) Disposals/transfers — (62,183 ) — (62,183 ) Reclassifications from (to) nonaccretable difference (a) 2,111 1,648 6,100 4,048 Balance — end of period $ 18,505 $ 22,236 $ 18,505 $ 22,236 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. During the three and nine months ended September 30, 2018 and 2017 , the Company did not acquire any vehicle loan portfolios for which it was probable at acquisition that not all contractually required payments would be collected. However, during the three months ended September 30, 2018 and 2017 , the Company recognized certain retail installment contracts with an unpaid principal balance of zero and for the nine months ended September 30, 2018 and 2017 , the Company recognized certain retail installment contracts with an unpaid principal balance of $115,959 and $226,613 , respectively, held by non-consolidated securitization Trusts, under optional clean-up calls (Note 6). Following the initial recognition of these loans at fair value, the performing loans in the portfolio are carried at amortized cost, net of allowance for credit losses. The Company elected the fair value option for all non-performing loans acquired (more than 60 days delinquent as of re-recognition date), for which it was probable that not all contractually required payments would be collected (Note 13). Receivable from Dealers The receivables from dealers held for investment are all Chrysler Agreement-related. As of September 30, 2018 , borrowers on these dealer receivables are located in Virginia ( 63% ), New York ( 27% ) and Missouri ( 10% ). Held For Sale The carrying value of the Company's finance receivables held for sale, net is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail installment contracts acquired individually $ — $ 1,148,332 Personal loans 933,380 1,062,089 Finance receivables held for sale, net $ 933,380 $ 2,210,421 Sales of retail installment contracts and proceeds from sales of charged-off assets for the three and nine months ended September 30, 2018 and 2017 were as follows: For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Sales of retail installment contracts to third parties $ — $ — $ — $ 260,568 Sale of retail installment contracts to affiliates 274,609 1,347,010 2,905,922 2,583,341 Proceeds from sales of charged-off assets to third parties 3,845 27,954 38,720 76,746 From time to time, the Company retains servicing of retail installment contracts and leases sold to third parties. Total contracts sold to unrelated third parties and/or serviced as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2017 Serviced balance of retail installment contracts and leases $ 4,294,459 $ 5,771,085 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Leases | Leases The Company originates operating and capital leases, which are separately accounted for and recorded on the Company's condensed consolidated balance sheets. Operating leases are reported as leased vehicles, net, while capital leases are included in finance receivables held for investment, net. Operating Leases Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of September 30, 2018 and December 31, 2017 : September 30, December 31, Leased vehicles $ 17,635,911 $ 14,285,769 Less: accumulated depreciation (3,249,421 ) (3,110,167 ) Depreciated net capitalized cost 14,386,490 11,175,602 Manufacturer subvention payments, net of accretion (1,262,906 ) (1,042,477 ) Origination fees and other costs 60,209 27,202 Net book value $ 13,183,793 $ 10,160,327 The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of September 30, 2018 : Remainder of 2018 $ 603,824 2019 2,033,861 2020 1,358,993 2021 375,454 2022 13,027 Thereafter — Total $ 4,385,159 Capital Leases Certain leases originated by the Company are accounted for as capital leases, as the contractual residual values are nominal amounts. Capital lease receivables, net consisted of the following as of September 30, 2018 and December 31, 2017 : September 30, December 31, Gross investment in capital leases $ 24,214 $ 27,234 Origination fees and other 164 124 Less: unearned income (4,264 ) (4,377 ) Net investment in capital leases before allowance 20,114 22,981 Less: allowance for lease losses (3,464 ) (5,642 ) Net investment in capital leases $ 16,650 $ 17,339 The following summarizes the future minimum lease payments due to the Company as lessor under capital leases as of September 30, 2018 : Remainder of 2018 $ 2,261 2019 7,322 2020 5,944 2021 4,383 2022 3,386 Thereafter 918 Total $ 24,214 |
Credit Loss Allowance and Credi
Credit Loss Allowance and Credit Quality (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Credit Loss Allowance and Credit Quality (As Revised) | Credit Loss Allowance and Credit Quality (As Revised) Credit Loss Allowance The Company estimates the allowance for credit losses on individually acquired retail installment contracts (including loans acquired from third party lenders that are considered to have no credit deterioration at acquisition) and personal loans held for investment, not classified as TDRs, based on delinquency status, historical loss experience, estimated values of underlying collateral, when applicable, and various economic factors. In developing the allowance, the Company utilizes a loss emergence period assumption, a loss given default assumption applied to recorded investment, and a probability of default assumption. The loss emergence period assumption represents the average length of time between when a loss event is first estimated to have occurred and when the account is charged-off. The recorded investment represents unpaid principal balance adjusted for unaccreted net discounts, subvention from manufacturers, and origination costs. Under this approach, the resulting allowance represents the expected net losses of recorded investment inherent in the portfolio. The Company uses a transition based Markov model for estimating the allowance for credit losses on individually acquired retail installment contracts. This model utilizes the recently observed loan transition rates from various loan statuses, including delinquency and accounting statuses from performing to charge off, to forecast future losses. For loans classified as TDRs, impairment is generally measured based on the present value of expected future cash flows discounted at the original effective interest rate. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. The amount of the allowance is equal to the difference between the loan’s impaired value and the recorded investment. The Company maintains a general credit loss allowance for receivables from dealers based on risk ratings and individually evaluates loans for specific impairment as necessary. As of September 30, 2018 and 2017 , the credit loss allowance for receivables from dealers is comprised entirely of general allowance as none of these receivables have been determined to be individually impaired. The activity in the credit loss allowance for individually acquired retail installment contracts and Dealer Loans for the three and nine months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 $ 1,771,309 $ 1,704,496 $ 713 $ 4,362 Provision for credit losses 380,496 217,447 (3 ) (135 ) 140,315 429,677 (546 ) 1,134 Charge-offs (a) (701,393 ) (524,429 ) — (414 ) (711,495 ) (507,066 ) — (1,976 ) Recoveries 410,045 202,568 — 330 399,522 195,407 — 205 Balance — end of period $ 1,740,862 $ 1,559,808 $ 155 $ 897 $ 1,599,651 $ 1,822,514 $ 167 $ 3,725 (a) For the three months ended September 30, 2018 and September 30, 2017 , charge-offs for retail installment contracts acquired individually includes approximately $5 million and $18 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,540,315 $ 1,804,132 $ 164 $ 2,565 $ 1,799,760 $ 1,611,295 $ 724 $ — Provision for credit losses 930,595 585,771 (9 ) (320 ) 671,471 1,084,926 (557 ) 10,275 Charge-offs (a) (1,962,220 ) (1,484,482 ) — (2,177 ) (2,105,835 ) (1,459,239 ) — (7,194 ) Recoveries 1,232,172 654,387 — 829 1,234,255 585,532 — 644 Balance — end of period $ 1,740,862 $ 1,559,808 $ 155 $ 897 $ 1,599,651 $ 1,822,514 $ 167 $ 3,725 (a) For the nine months ended September 30, 2018 and September 30, 2017 , charge-offs for retail installment contracts acquired individually includes approximately $19 million and $66 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. The Company estimates lease losses on the capital lease receivable portfolio based on delinquency status and loss experience to date, as well as various economic factors. The activity in the lease loss allowance for capital leases for the three and nine months ended September 30, 2018 and 2017 was as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance — beginning of period $ 3,582 $ 6,367 $ 5,642 $ 9,988 Provision for lease losses 109 432 (1,239 ) (597 ) Charge-offs (1,614 ) (2,655 ) (4,755 ) (9,415 ) Recoveries 1,387 1,462 3,816 5,630 Balance — end of period $ 3,464 $ 5,606 $ 3,464 $ 5,606 There was no impairment activity noted for purchased receivable-credit impaired portfolio for the three and nine months ended September 30, 2018 and September 30, 2017 . Delinquencies Retail installment contracts and personal amortizing term loans are classified as non-performing (or nonaccrual) when they are greater than 60 days past due as to contractual principal or interest payments. Dealer receivables are classified as non-performing when they are greater than 90 days past due. At the time a loan is placed in non-performing (nonaccrual) status, previously accrued and uncollected interest is reversed against interest income. If an account is returned to a performing (accrual) status, the Company returns to accruing interest on the loan. The Company considers an account delinquent when an obligor fails to pay substantially all (defined as 90% ) of the scheduled payment by the due date. In each case, the period of delinquency is based on the number of days payments are contractually past due. The accrual of interest on personal loans continues until the loan is charged off. The unpaid principal balance on personal loans (including revolving personal loans) 90 days or more past due and still accruing totaled $125,287 and $130,034 as of September 30, 2018 and December 31, 2017 , respectively. A summary of delinquencies as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,975,844 $ 2,618 $ 2,978,462 Delinquent principal over 59 days (a) 1,560,736 1,750 1,562,486 Total delinquent principal $ 4,536,580 $ 4,368 $ 4,540,948 December 31, 2017 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,953,203 $ 4,992 $ 2,958,195 Delinquent principal over 59 days (a) 1,642,934 2,855 1,645,789 Total delinquent principal $ 4,596,137 $ 7,847 $ 4,603,984 (a) Interest is generally accrued until 60 days past due in accordance with the Company's accounting policy for retail installment contracts. In addition, retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Amount Percent (a) Amount Percent (a) Non-TDR $ 701,017 2.5 % $ 691,256 2.7 % TDR 725,202 2.6 % 806,938 3.1 % Total nonaccrual principal $ 1,426,219 5.0 % $ 1,498,194 5.8 % (a) Percent of unpaid principal balance of retail installment contracts individually held for investment. The balances in the above tables reflect total unpaid principal balance rather than net recorded investment before allowance. As of September 30, 2018 and December 31, 2017 , there were no receivables from dealers that were 30 days or more delinquent. As of September 30, 2018 and December 31, 2017 , there were zero and $1,701 , respectively, of retail installment contracts held for sale that were 30 days or more delinquent. Credit Quality Indicators FICO ® Distribution — A summary of the credit risk profile of the Company’s retail installment contracts held for investment by FICO ® distribution, determined at origination, as of September 30, 2018 and December 31, 2017 was as follows: FICO ® Band September 30, 2018 (b) December 31, 2017 (b) Commercial (a) 1.9% 2.5% No-FICOs 11.2% 11.2% <540 20.4% 21.9% 540-599 32.7% 32.0% 600-639 18.0% 17.3% >640 15.8% 15.1% (a) No FICO score is obtained on loans to commercial borrowers. (b) Percentages are based on unpaid principal balance. Commercial Lending — The Company's risk department performs a credit analysis and classifies certain loans over an internal threshold based on the commercial lending classifications described in Part II, Item 8 - Financial Statements and Supplementary Data (Note 4) in the 2017 Annual Report on Form 10-K. Fleet loan credit quality indicators for retail installment contracts held for investment with commercial borrowers as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, Pass $ 9,290 $ 12,276 Special Mention 4,391 5,324 Substandard 338 715 Doubtful — — Loss — — Total (Unpaid principal balance) $ 14,019 $ 18,315 Commercial loan credit quality indicators for receivables from dealers held for investment as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, Pass $ 14,925 $ 14,130 Special Mention 17 1,657 Substandard — — Doubtful — — Loss — — Total (Unpaid principal balance) $ 14,942 $ 15,787 Troubled Debt Restructurings In certain circumstances, the Company modifies the terms of its finance receivables to troubled borrowers. Modifications may include a temporary reduction in monthly payment, reduction in interest rate, an extension of the maturity date, rescheduling of future cash flows, or a combination thereof. A modification of finance receivable terms is considered a TDR if the Company grants a concession to a borrower for economic or legal reasons related to the debtor’s financial difficulties that would not otherwise have been considered. Management considers TDRs to include all individually acquired retail installment contracts that have been modified at least once, deferred for a period of 90 days or more, or deferred at least twice. Additionally, restructurings through bankruptcy proceedings are deemed to be TDRs. The purchased receivables portfolio-credit impaired, operating and capital leases, and loans held for sale, including personal loans, are excluded from the scope of the applicable guidance. The Company's TDR balance as of September 30, 2018 and December 31, 2017 primarily consisted of loans that had been deferred or modified to receive a temporary reduction in monthly payment. As of September 30, 2018 and December 31, 2017 , there were no receivables from dealers classified as a TDR. For loans not classified as TDRs, the Company generally estimates an appropriate allowance for credit losses based on delinquency status, the Company’s historical loss experience, estimated values of underlying collateral, and various economic factors. Once a loan has been classified as a TDR, it is generally assessed for impairment based on the present value of expected future cash flows discounted at the loan's original effective interest rate considering all available evidence. For loans that are considered collateral-dependent, such as certain bankruptcy modifications, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. The table below presents the Company’s TDRs as of September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail Installment Contracts Outstanding recorded investment (a) $ 5,746,081 $ 6,328,159 Impairment (1,559,808 ) (1,804,132 ) Outstanding recorded investment, net of impairment $ 4,186,273 $ 4,524,027 (a) As of September 30, 2018 , the outstanding recorded investment excludes $84.6 million of collateral-dependent bankruptcy TDRs that have been written down by $34.3 million to fair value less cost to sell. As of December 31, 2017 , the outstanding recorded investment excludes $64.7 million of collateral-dependent bankruptcy TDRs that have been written down by $29.2 million to fair value less cost to sell. A summary of the Company’s delinquent TDRs at September 30, 2018 and December 31, 2017 , is as follows: September 30, December 31, 2017 Retail Installment Contracts (a) Principal, 30-59 days past due $ 1,326,903 $ 1,422,101 Delinquent principal over 59 days 804,161 893,708 Total delinquent TDR principal $ 2,131,064 $ 2,315,809 (a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance. Average recorded investment and interest income recognized on TDR loans are as follows: Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 5,968,689 $ 6,167,737 Interest income recognized $ 257,168 $ 258,882 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 6,167,812 $ 5,964,045 Interest income recognized $ 808,230 $ 765,724 The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs (including collateral-dependent bankruptcy TDRs) that occurred for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Outstanding recorded investment before TDR $ 471,482 $ 1,123,080 Outstanding recorded investment after TDR $ 472,392 $ 1,122,450 Number of contracts (not in thousands) 28,004 66,001 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Outstanding recorded investment before TDR $ 1,779,855 $ 2,778,407 Outstanding recorded investment after TDR $ 1,780,494 $ 2,776,006 Number of contracts (not in thousands) 105,643 160,098 Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2018 and 2017 are summarized in the following table: Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 163,483 $ 197,953 Number of contracts (not in thousands) 9,924 11,219 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 503,309 $ 600,117 Number of contracts (not in thousands) 30,171 33,735 (a) For TDR modifications and TDR modifications that subsequently defaults, the allowance methodology remains unchanged; however, the transition rates of the TDR loans are adjusted to reflect the respective risks. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facilities The following table presents information regarding credit facilities as of September 30, 2018 and December 31, 2017 : September 30, 2018 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2019 $ 75,984 $ 500,000 6.41% $ 108,816 $ 2,357 Warehouse line Various (a) 352,945 1,250,000 4.27% 525,663 — Warehouse line (b) August 2020 3,370,243 4,150,000 3.20% 4,614,029 4,464 Warehouse line (c) October 2019 244,277 1,800,000 5.51% 342,305 15 Repurchase facility (d) (e) December 2018 81,810 81,810 3.99% 121,070 12,951 Repurchase facility (d) December 2018 50,720 51,770 3.61% 63,600 — Repurchase facility (d) December 2018 139,190 139,895 3.30% 173,980 — Warehouse line November 2019 963,599 1,000,000 3.05% 1,356,132 1 Warehouse line (f) October 2019 28,265 400,000 8.63% 39,928 4 Warehouse line November 2019 325,020 500,000 3.08% 370,346 464 Warehouse line (g) October 2018 — 300,000 2.39% 219,148 315 Total facilities with third parties 5,632,053 10,173,475 7,935,017 20,571 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note March 2019 300,000 300,000 3.66% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note (h) March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit July 2021 — 500,000 4.34% — — Line of credit March 2019 — 3,000,000 4.97% — — Total facilities with Santander and related subsidiaries 3,000,000 6,500,000 — — Total revolving credit facilities $ 8,632,053 $ 16,673,475 $ 7,935,017 $ 20,571 (a) One-half of the outstanding balance on this facility matures in March 2019 and remaining balance matures in March 2020. (b) This line is held exclusively for financing of Chrysler Capital leases. The Commitment amount was increased to $4.4 billion in November 2018. (c) The Commitment amount of this warehouse line was increased to $2.05 billion in October 2018. (d) These repurchase facilities are collateralized by securitization notes payable retained by the Company. These facilities have rolling maturities of up to one year . As the borrower, we are exposed to liquidity risk due to changes in the market value of the retained securities pledged. In some instances, we place or receive cash collateral with counterparties under collateral arrangements associated with our repurchase agreements. (e) This repurchase facility was settled and terminated in October 2018. (f) This warehouse line was settled and terminated in October 2018. (g) The maturity of this warehouse line was extended to January 2019. (h) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of September 30, 2018 and December 31, 2017 was $3,529 and $4,223 , respectively, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt. December 31, 2017 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line January 2018 $ 336,484 $ 500,000 2.87% $ 473,208 $ — Warehouse line Various 339,145 1,250,000 2.53% 461,353 12,645 Warehouse line August 2019 2,044,843 3,900,000 2.96% 2,929,890 53,639 Warehouse line December 2018 — 300,000 1.49% — — Warehouse line October 2019 226,577 1,800,000 4.95% 311,336 6,772 Repurchase facility Various 325,775 325,775 3.24% 474,188 13,842 Repurchase facility April 2018 202,311 202,311 2.67% 264,120 — Repurchase facility March 2018 147,500 147,500 3.91% 222,108 — Repurchase facility March 2018 68,897 68,897 3.04% 95,762 — Warehouse line November 2019 403,999 1,000,000 2.66% 546,782 14,729 Warehouse line October 2019 81,865 400,000 4.09% 114,021 3,057 Warehouse line November 2019 435,220 500,000 1.92% 521,365 16,866 Warehouse line October 2018 235,700 300,000 2.84% 289,634 10,474 Total facilities with third parties 4,848,316 10,694,483 6,703,767 132,024 Facilities with Santander and related subsidiaries: Line of credit December 2018 — 1,000,000 3.09% — — Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note March 2019 300,000 300,000 2.67% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit December 2018 750,000 750,000 1.33% — — Line of credit March 2019 — 3,000,000 3.94% — — Total facilities with Santander and related subsidiaries 3,750,000 7,750,000 — — Total revolving credit facilities $ 8,598,316 $ 18,444,483 $ 6,703,767 $ 132,024 Facilities with Third Parties The warehouse lines and repurchase facilities are fully collateralized by a designated portion of the Company’s retail installment contracts (Note 2), leased vehicles (Note 3), securitization notes payables and residuals retained by the Company. Facilities with Santander and Related Subsidiaries Lines of Credit Through SHUSA, Santander provides the Company with $3,000,000 of committed revolving credit that can be drawn on an unsecured basis. In July 2018, SHUSA provided a $500,000 unsecured revolving line of credit to SC. Promissory Notes Through SHUSA, Santander provides the Company with $3,000,000 of unsecured promissory notes. Secured Structured Financings The following table presents information regarding secured structured financings as of September 30, 2018 and December 31, 2017 : September 30, 2018 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2014 Securitizations August 2020 - April 2022 $ 434,595 $ 3,541,020 1.16% - 1.63% $ 552,276 $ 103,712 2015 Securitizations April 2021 - June 2023 1,922,671 9,054,732 1.33% - 2.29% 2,266,085 297,123 2016 Securitizations February 2022 - March 2024 2,448,623 7,462,790 1.63% - 2.80% 3,243,607 298,765 2017 Securitizations July 2022 - February 2025 4,900,963 9,296,570 1.35% - 2.52% 6,888,692 378,480 2018 Securitizations December 2022 - January 2026 9,940,913 11,197,440 2.41% - 3.53% 12,400,287 448,249 Public Securitizations (a) 19,647,765 40,552,552 25,350,947 1,526,329 2011 Private issuance September 2028 105,182 1,700,000 1.46% 230,698 92 2013 Private issuances August 2021-September 2024 1,031,720 2,044,054 1.28% - 1.38% 2,203,204 4,634 2015 Private issuances July 2019 - September 2021 1,238,515 2,058,187 0.88% - 2.80% 406,236 2,840 2016 Private issuances May 2020 - September 2024 596,893 3,050,000 1.55% - 2.86% 1,115,725 2,244 2017 Private issuances April 2021 - September 2021 840,138 1,600,000 1.85% - 2.44% 1,190,795 6,238 2018 Private issuance June 2022 - January 2023 1,407,084 1,000,002 2.42% - 2.89% 1,869,961 21,313 Privately issued amortizing notes (c) 5,219,532 11,452,243 7,016,619 37,361 Total secured structured financings $ 24,867,297 $ 52,004,795 $ 32,367,566 $ 1,563,690 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company's collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 were paid in full. December 31, 2017 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2013 Securitizations January 2019 - March 2021 $ 418,806 $ 4,239,700 0.89% - 1.59% $ 544,948 $ 125,696 2014 Securitizations February 2020 - April 2022 1,150,422 6,391,020 1.16% - 1.72% 1,362,814 210,937 2015 Securitizations September 2019 - January 2023 2,484,051 9,171,332 1.33% - 2.29% 3,465,671 366,062 2016 Securitizations April 2022 - March 2024 3,596,822 7,462,790 1.63% - 2.80% 4,798,807 344,899 2017 Securitizations April 2023 - September 2024 7,343,157 9,535,800 2.01% - 2.52% 9,701,381 422,865 Public Securitizations 14,993,258 36,800,642 19,873,621 1,470,459 2011 Private issuance September 2028 281,946 1,700,000 1.46% 398,051 20,356 2013 Private issuances August 2021 - September 2024 2,292,279 2,044,054 1.28% - 1.38% 3,719,148 155,066 2014 Private issuances March 2018 - November 2021 117,730 1,538,087 1.05% - 1.40% 231,997 9,552 2015 Private issuances November 2018 - September 2021 2,009,627 2,305,062 0.88% - 4.09% 988,247 55,451 2016 Private issuances May 2020 - September 2024 1,489,464 3,050,000 1.55% - 2.86% 2,147,988 89,460 2017 Private issuances April 2021 - September 2021 1,373,591 1,641,079 1.85% - 2.27% 1,747,227 47,415 Privately issued amortizing notes 7,564,637 12,278,282 9,232,658 377,300 Total secured structured financings $ 22,557,895 $ 49,078,924 $ 29,106,279 $ 1,847,759 Most of the Company’s secured structured financings are in the form of public, SEC-registered securitizations. The Company also executes private securitizations under Rule 144A of the Securities Act and periodically issues private term amortizing notes, which are structured similarly to securitizations but are acquired by banks and conduits. The Company’s securitizations and private issuances are collateralized by vehicle retail installment contracts and loans or leases. As of September 30, 2018 and December 31, 2017 , the Company had private issuances of notes backed by vehicle leases totaling $5,812,107 and $3,710,377 , respectively. Unamortized debt issuance costs are amortized as interest expense over the terms of the related notes payable using the effective interest method and are classified as a discount to the related recorded debt balance. Amortized debt issuance costs were $11,015 and $9,489 for the three months ended September 30, 2018 and 2017 , respectively, and $27,515 and $26,595 for the nine months ended September 30, 2018 and 2017 , respectively. For securitizations, the term takes into consideration the expected execution of the contractual call option, if applicable. Amortization of premium or accretion of discount on notes payable is also included in interest expense using the effective interest method over the estimated remaining life of the notes. Total interest expense on secured structured financings for the three months ended September 30, 2018 and 2017 was $198,184 and $152,950 , respectively. Total interest expense on secured structured financings for the nine months ended September 30, 2018 and 2017 was $521,775 and $409,968 , respectively. |
Variable Interest Entities (As
Variable Interest Entities (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity Disclosure [Abstract] | |
Variable Interest Entities (As Revised) | Variable Interest Entities (As Revised) The Company transfers retail installment contracts and vehicle leases into newly formed Trusts that then issue one or more classes of notes payable backed by the collateral. The Company’s continuing involvement with these Trusts is in the form of servicing the assets and, generally, through holding residual interests in the Trusts. The Trusts are considered VIEs under U.S. GAAP and the Company may or may not consolidate these VIEs on the condensed consolidated balance sheets. For further description of the Company’s securitization activities, involvement with VIEs and accounting policies regarding consolidation of VIEs, see Part II, Item 8 - Financial Statements and Supplementary Data (Note 7) in the 2017 Annual Report on Form 10-K. On-balance sheet variable interest entities The Company retains servicing rights for receivables transferred to the Trusts and receives a monthly servicing fee on the outstanding principal balance. Supplemental fees, such as late charges, for servicing the receivables are reflected in fees, commissions and other income. As of September 30, 2018 and December 31, 2017 , the Company was servicing $27,273,176 and $26,300,311 , respectively, of gross retail installment contracts that have been transferred to consolidated Trusts. The remainder of the Company’s retail installment contracts remain unpledged. A summary of the cash flows received from consolidated securitization trusts during the three and nine months ended September 30, 2018 and 2017 , is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Assets securitized $ 5,414,393 $ 2,998,430 $ 19,167,290 $ 15,395,158 Net proceeds from new securitizations (a) $ 4,014,928 $ 2,936,719 $ 12,073,124 $ 11,998,611 Net proceeds from sale of retained bonds 203,704 — 797,336 273,733 Cash received for servicing fees (b) 229,520 228,131 659,210 653,048 Net distributions from Trusts (b) 860,024 666,179 2,186,010 2,073,965 Total cash received from Trusts $ 5,308,176 $ 3,831,029 $ 15,715,680 $ 14,999,357 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. Off-balance sheet variable interest entities During the three and nine months ended September 30, 2018 the Company sold $274,609 and $2,905,922 , respectively, of gross retail installment contracts to VIEs in off-balance sheet securitizations for a loss (excluding lower of cost or market adjustments, if any) of $656 and $20,736 , respectively. During the three and nine months ended September 30, 2017 the Company sold $1,347,010 and $2,583,341 respectively, of gross retail installment contracts to VIEs in off-balance sheet securitizations for a loss of $6,846 and $13,026 , respectively. The losses are recorded in investment losses, net in the accompanying condensed consolidated statements of income. These transactions were executed under securitization platforms with Santander. S antander, as a majority owned affiliate, holds eligible vertical interest in Notes and Certificates of not less than 5% to comply with the Dodd-Frank Act risk retention rules. As of September 30, 2018 and December 31, 2017 , the Company was servicing $4,657,059 and $3,428,248 , respectively, of gross retail installment contracts that have been sold in off-balance sheet securitizations and were subject to an optional clean-up call. The portfolio was comprised as follows: September 30, 2018 December 31, SPAIN $ 3,835,018 $ 2,024,016 Total serviced for related parties 3,835,018 2,024,016 Chrysler Capital securitizations 822,041 1,404,232 Total serviced for third parties 822,041 1,404,232 Total serviced for others portfolio $ 4,657,059 $ 3,428,248 Other than repurchases of sold assets due to standard representations and warranties, the Company has no exposure to loss as a result of its involvement with these VIEs. A summary of the cash flows received from off-balance sheet securitization trusts during the three and nine months ended September 30, 2018 and 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Receivables securitized (a) $ 274,609 $ 1,347,010 $ 2,905,922 $ 2,583,341 Net proceeds from new securitizations $ 274,855 $ 1,347,430 $ 2,909,794 $ 2,588,227 Cash received for servicing fees 11,896 12,309 32,590 25,677 Total cash received from securitization trusts $ 286,751 $ 1,359,739 $ 2,942,384 $ 2,613,904 (a) Represents the unpaid principal balance at the time of original securitization. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivatives financial instruments such as interest rate swaps, interest rate caps and the corresponding options written in order to offset the interest rate caps to manage the Company's exposure to changing interest rates. The Company uses both derivatives that qualify for hedge accounting treatment and economic hedges. In addition, the Company is the holder of a warrant that gives it the right, if certain vesting conditions are satisfied, to purchase additional shares in a company in which it has a cost method investment. This warrant was issued in 2012 and is carried at its estimated fair value of zero at September 30, 2018 and December 31, 2017 . The underlying notional amounts and aggregate fair values of these derivatives financial instruments at September 30, 2018 and December 31, 2017 , are as follows: September 30, 2018 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,068,100 $ 70,091 $ 70,091 $ — Interest rate swap agreements not designated as hedges 2,567,000 19,367 19,367 — Interest rate cap agreements 8,343,345 178,752 178,752 — Options for interest rate cap agreements 8,343,345 (178,752 ) — (178,752 ) December 31, 2017 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,926,900 $ 45,986 $ 45,986 $ — Interest rate swap agreements not designated as hedges 1,736,400 9,596 9,596 — Interest rate cap agreements 10,906,081 103,721 135,830 (32,109 ) Options for interest rate cap agreements 10,906,081 (103,659 ) 32,165 (135,824 ) See Note 13 for disclosure of fair value and balance sheet location of the Company's derivative financial instruments. The Company enters into legally enforceable master netting agreements that reduce risk by permitting netting of transactions, such as derivatives and collateral posting, with the same counterparty on the occurrence of certain events. A master netting agreement allows two counterparties the ability to net-settle amounts under all contracts, including any related collateral posted, through a single payment. The right to offset and certain terms regarding the collateral process, such as valuation, credit events and settlement, are contained in ISDA master agreements. The Company has elected to present derivative balances on a gross basis even if the derivative is subject to a legally enforceable master netting (ISDA) agreement. Collateral that is received or pledged for these transactions is disclosed within the “Gross amounts not offset in the Condensed Consolidated Balance Sheet” section of the tables below. Information on the offsetting of derivative assets and derivative liabilities due to the right of offset was as follows, as of September 30, 2018 and December 31, 2017 : Gross Amounts Not Offset in the Assets Presented Cash Net September 30, 2018 Interest rate swaps - third party (b) $ 89,458 $ (60,262 ) $ 29,196 Interest rate caps - third party 178,752 (87,692 ) 91,060 Total derivatives subject to a master netting arrangement or similar arrangement 268,210 (147,954 ) 120,256 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 268,210 $ (147,954 ) $ 120,256 Total financial assets $ 268,210 $ (147,954 ) $ 120,256 December 31, 2017 Interest rate swaps - Santander and affiliates $ 8,621 $ (3,461 ) $ 5,160 Interest rate swaps - third party 46,961 (448 ) 46,513 Interest rate caps - Santander and affiliates 18,201 (12,240 ) 5,961 Interest rate caps - third party 149,794 (55,835 ) 93,959 Total derivatives subject to a master netting arrangement or similar arrangement 223,577 (71,984 ) 151,593 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 223,577 $ (71,984 ) $ 151,593 Total financial assets $ 223,577 $ (71,984 ) $ 151,593 (a) Cash collateral received is reported in Other liabilities or Due to affiliate, as applicable, in the consolidated balance sheet. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. Gross Amounts Not Offset in the Liabilities Presented Cash Net September 30, 2018 Back to back - third party 178,752 (178,752 ) — Total derivatives subject to a master netting arrangement or similar arrangement 178,752 (178,752 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 178,752 $ (178,752 ) $ — Total financial liabilities $ 178,752 $ (178,752 ) $ — December 31, 2017 Back to back - Santander & affiliates 18,201 (18,201 ) — Back to back - third party 149,732 (133,540 ) 16,192 Total derivatives subject to a master netting arrangement or similar arrangement 167,933 (151,741 ) 16,192 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 167,933 $ (151,741 ) $ 16,192 Total financial liabilities $ 167,933 $ (151,741 ) $ 16,192 (a) Cash collateral pledged is reported in Other assets or Due from affiliate, as applicable, in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of cash pledged as collateral exceeds the associated financial liability. As a result, the actual amount of cash collateral pledged that is reported in Other assets or Due from affiliates may be greater than the amount shown in the table above. The gross gains (losses) reclassified from accumulated other comprehensive income (loss) to net income, are included as components of interest expense. The impacts on the condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 3,244 $ 11,170 Total $ — $ 3,244 $ 11,170 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (2,566 ) Three Months Ended September 30, 2017 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (2,061 ) $ (882 ) $ 1,461 Interest rate swap agreements designated as fair value hedges $ (1,232 ) $ — $ — Total $ (3,293 ) $ (882 ) $ 1,461 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,723 Nine Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 38,085 $ 24,843 Total $ — $ 38,085 $ 24,843 Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ (12,305 ) Nine Months Ended September 30, 2017 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (11,573 ) $ 4,233 $ (3,158 ) Total $ (11,573 ) $ 4,233 $ (3,158 ) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,297 The Company estimates that approximately $45,633 of unrealized gains included in accumulated other comprehensive income (loss) will be reclassified to interest expense within the next twelve months. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets were comprised as follows: September 30, December 31, Vehicles (a) $ 279,843 $ 293,546 Manufacturer subvention payments receivable (b) 141,025 83,910 Upfront fee (b) 68,750 80,000 Derivative assets at fair value (c) 268,210 196,755 Derivative - third party collateral 184,458 149,805 Prepaids 27,828 40,830 Accounts receivable 29,362 38,583 Other 55,946 29,815 Other assets $ 1,055,422 $ 913,244 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the Chrysler Agreement. The fee is being amortized into finance and other interest income over a ten -year term. As the preferred financing provider for FCA, the Company is entitled to subvention payments on loans and leases with below-market customer payments. Exercise of the equity option in the Chrysler agreement by FCA would require SC to evaluate whether the remaining unamortized balance of the upfront fee should be impaired. To date, FCA has not exercised its equity option. (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 7 to these Condensed Consolidated Financial Statements for the detail of these amounts. |
Income Taxes (As Revised)
Income Taxes (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes (As Revised) | Income Taxes (As Revised) The Company recorded income tax expense of $64,874 ( 21.9% effective tax rate) and $77,879 ( 28.2% effective tax rate) during the three months ended September 30, 2018 and 2017 , respectively. The Company recorded income tax expense of $237,047 ( 22.6% effective tax rate) and $232,484 ( 28.1% effective tax rate) during the nine months ended September 30, 2018 and 2017 , respectively. The Company is a party to a tax sharing agreement requiring that the unitary state tax liability among affiliates included in unitary state tax returns be allocated using the hypothetical separate company tax calculation method. The Company had a net receivable from affiliates under the tax sharing agreement of $467 at September 30, 2018 and December 31, 2017 , which was included in related party taxes receivable in the condensed consolidated balance sheet. The Company provides U.S. income taxes on earnings of foreign subsidiaries unless the subsidiaries' earnings are considered indefinitely reinvested outside of the United States. As of December 31, 2017 and September 30, 2018 , the Company has no earnings that are considered indefinitely reinvested. During the nine months ended September 30, 2018 , the Company adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This standard requires entities to reclassify from accumulated other comprehensive income to retained earnings stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The Company reclassified $6,149 related to stranded tax effects. The Company applies an aggregate portfolio approach whereby income tax effects from accumulated other comprehensive income are released only when an entire portfolio (i.e., all related units of account) of a particular type is liquidated, sold or extinguished. Significant judgment is required in evaluating and reserving for uncertain tax positions. Although management believes adequate reserves have been established for all uncertain tax positions, the final outcomes of these matters may differ. Management does not believe the outcome of any uncertain tax position, individually or combined, will have a material effect on the Company's business, financial position or results of operations. The reserve for uncertain tax positions, as well as associated penalties and interest, is a component of the income tax provision. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table summarizes liabilities recorded for commitments and contingencies as of September 30, 2018 and December 31, 2017 , all of which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency September 30, 2018 December 31, 2017 Chrysler Agreement Revenue-sharing and gain-sharing payments $ 12,270 $ 6,580 Agreement with Bank of America Servicer performance fee 6,700 8,072 Agreement with CBP Loss-sharing payments 4,464 5,625 Other Contingencies Consumer arrangements 11,957 6,326 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 110,000 108,800 Following is a description of the agreements and legal matters pursuant to which the liabilities in the preceding table were recorded. Chrysler Agreement Under terms of the Chrysler Agreement, the Company must make revenue sharing payments to FCA and also must make gain-sharing payments to FCA when residual gains on leased vehicles exceed a specified threshold. The Company had accrued $12,270 and $ 6,580 at September 30, 2018 and December 31, 2017 , respectively, related to these obligations. The Chrysler Agreement requires, among other things, that the Company bear the risk of loss on loans originated pursuant to the agreement, but also that FCA shares in any residual gains and losses from consumer leases. The Chrysler agreement also requires that the Company maintain at least $5.0 billion in funding available for Floorplan Loans and $4.5 billion of financing dedicated to FCA retail financing. In turn, FCA must provide designated minimum threshold percentages of its subvention business to the Company. The Chrysler Agreement is subject to early termination in certain circumstances, including the failure by either party to comply with certain of their ongoing obligations under the Chrysler Agreement. These obligations include the Company's meeting specified escalating penetration rates for the first five years of the agreement. The Company did not meet these penetration rates. Also, FCA has the option to acquire, for fair market value, an equity participation in the business offering and providing the financial services contemplated by the Chrysler Agreement. If FCA exercises its equity option, the Chrysler Agreement were to terminate, or the Company otherwise is unable to realize the expected benefits of its relationship with FCA, there could be a materially adverse impact to the Company’s business, financial condition, results of operations, profitability, loan and lease volume, the credit quality of its portfolio, liquidity, funding and growth, and the Company's ability to implement its business strategy could be materially adversely affected. Agreement with Bank of America Until January 2017, the Company had a flow agreement with Bank of America whereby the Company was committed to selling up to $300,000 of eligible loans to the bank each month. The Company retains servicing on all sold loans and may receive or pay a servicer performance payment based on an agreed-upon formula if performance on the sold loans is better or worse, respectively, than expected performance at time of sale. Servicer performance payments are due six years from the cut-off date of each loan sale. The Company had accrued $6,700 and $8,072 at September 30, 2018 and December 31, 2017 , respectively, related to this obligation. Agreement with CBP Until May 1, 2017, the Company sold loans to CBP under terms of a flow agreement and predecessor sale agreements. The Company retained servicing on the sold loans and will owe CBP a loss-sharing payment capped at 0.5% of the original pool balance if losses exceed a specified threshold, established on a pool-by-pool basis. Loss-sharing payments are due the month in which net losses exceed the established threshold of each loan sale. The Company had accrued $4,464 and $5,625 at September 30, 2018 and December 31, 2017 , respectively, related to the loss-sharing obligation. Other Contingencies The Company is or may be subject to potential liability under various other contingent exposures. The Company had accrued $11,957 and $6,326 at September 30, 2018 and December 31, 2017 , respectively, for other miscellaneous contingencies. Legal and regulatory proceedings Periodically, the Company is party to, or otherwise involved in, various lawsuits and other legal proceedings that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of any such lawsuit, regulatory matter and legal proceeding, particularly where the claimants seek very large or indeterminate damages or where the matters present novel legal theories or involve a large number of parties, the Company generally cannot predict the eventual outcome of the pending matters, the timing of the ultimate resolution of the matters, or the eventual loss, fines or penalties related to the matter. Further, it is reasonably possible that actual outcomes or losses may differ materially from the Company's current assessments and estimates and any adverse resolution of any of these matters against it could materially and adversely affect the Company's business, financial condition and results of operation. In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation, regulatory matters and other legal proceedings when those matters present material loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation, regulatory matter or other legal proceeding develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether the matter presents a material loss contingency that is probable and estimable. If a determination is made during a given quarter that a material loss contingency is probable and estimable, an accrued liability is established during such quarter with respect to such loss contingency. The Company continues to monitor the matter for further developments that could affect the amount of the accrued liability previously established. As of September 30, 2018 , the Company has accrued aggregate legal and regulatory liabilities of $110,000 . Further, the Company believes that the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for legal and regulatory proceedings is up to $200,000 as of September 30, 2018 . Set forth below are descriptions of the material lawsuits, regulatory matters and other legal proceedings to which the Company is subject. Securities Class Action and Shareholder Derivative Lawsuits • Deka Lawsuit: The Company is a defendant in a purported securities class action lawsuit (the Deka Lawsuit) in the United States District Court, Northern District of Texas, captioned Deka Investment GmbH et al. v. Santander Consumer USA Holdings Inc. et al., No. 3:15-cv-2129-K. The Deka Lawsuit, which was filed in August 26, 2014, was brought against the Company, certain of its current and former directors and executive officers and certain institutions that served as underwriters in the Company’s IPO on behalf of a class consisting of those who purchased or otherwise acquired our securities between January 23, 2014 and June 12, 2014. The complaint alleges, among other things, that our IPO registration statement and prospectus and certain subsequent public disclosures violated federal securities laws by containing misleading statements concerning the Company’s ability to pay dividends and the adequacy of the Company’s compliance systems and oversight. In December 2015, the Company and the individual defendants moved to dismiss the lawsuit, which was denied. In December 2016, the plaintiffs moved to certify the proposed classes. On in July 2017, the court entered an order staying the Deka Lawsuit pending the resolution of the appeal of a class certification order in In re Cobalt Int’l Energy, Inc. Sec. Litig., No. H-14-3428, 2017 U.S. Dist. LEXIS 91938 (S.D. Tex. June 15, 2017). In October 2018, the court vacated the order staying the Deka Lawsuit and ordered that merits discovery in the Deka Lawsuit be stayed until the court ruled on the issue of class certification. • Feldman Lawsuit: In October 2015, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Feldman v. Jason A. Kulas, et al., C.A. No. 11614 (the Feldman Lawsuit). The Feldman Lawsuit names as defendants current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the current and former director defendants breached their fiduciary duties in connection with overseeing the Company’s nonprime vehicle lending practices, resulting in harm to the Company. The complaint seeks unspecified damages and equitable relief. In December 2015, the Feldman Lawsuit was stayed pending the resolution of the Deka Lawsuit. • Parmelee Lawsuit: The Company is a defendant in two purported securities class actions lawsuits that were filed in March and April 2016 in the United States District Court, Northern District of Texas. The lawsuits were consolidated and are now captioned Parmelee v. Santander Consumer USA Holdings Inc. et al., No. 3:16-cv-783. The lawsuits were filed against the Company and certain of its current and former directors and executive officers on behalf of a class consisting of all those who purchased or otherwise acquired our securities between February 3, 2015 and March 15, 2016. The complaint alleges that the Company violated federal securities laws by making false or misleading statements, as well as failing to disclose material adverse facts, in its periodic reports filed under the Exchange Act and certain other public disclosures, in connection with, among other things, the Company’s change in its methodology for estimating its allowance for credit losses and correction of such allowance for prior periods. In March 2017, the Company filed a motion to dismiss the lawsuit. In January 2018, the court granted the Company’s motion as to defendant Ismail Dawood (the Company’s former Chief Financial Officer) and denied the motion as to all other defendants. In July 2018, the lead plaintiff filed an unopposed motion for preliminary approval of a class action settlement of the lawsuit for a cash payment of $9,500 . In September 2018, the court entered an order granting the motion for preliminary approval of the settlement of the lawsuit. • Jackie888 Lawsuit: In September 2016, a shareholder derivative complaint was filed in the Court of Chancery of the State of Delaware, captioned Jackie888, Inc. v. Jason Kulas, et al., C.A. # 12775 (the Jackie888 Lawsuit). The Jackie888 Lawsuit names as defendants current and former members of the Board, and names the Company as a nominal defendant. The complaint alleges, among other things, that the defendants breached their fiduciary duties in connection with the Company’s accounting practices and controls. The complaint seeks unspecified damages and equitable relief. In April 2017, the Jackie888 Lawsuit was stayed pending the resolution of the Deka Lawsuit. Consumer Lending Cases The Company is also party to various lawsuits pending in federal and state courts alleging violations of state and federal consumer lending laws, including, without limitation, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, Fair Credit Reporting Act, Section 5 of the Federal Trade Commission Act, the Telephone Consumer Protection Act, the Truth in Lending Act, wrongful repossession laws, usury laws and laws related to unfair and deceptive acts or practices. In general, these cases seek damages and equitable and/or other relief. Regulatory Investigations and Proceedings The Company is party to, or is periodically otherwise involved in, reviews, investigations, examinations and proceedings (both formal and informal), and information-gathering requests, by government and self-regulatory agencies, including the FRBB, the CFPB, the DOJ, the SEC, the FTC and various state regulatory and enforcement agencies. Currently, such matters include, but are not limited to, the following: • The Company received a civil subpoena from the DOJ, under FIRREA, requesting the production of documents and communications that, among other things, relate to the underwriting and securitization of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the subpoena and has otherwise cooperated with the DOJ with respect to this matter. • In October 2014, the Company received a subpoena from the SEC commencing an investigation into the Company’s securitization practices. In June 2016, the SEC served an additional subpoena on the Company requesting documents related to the Company’s securitizations practices as well as the Company’s financial restatements. The Company has produced documents responsive to these subpoenas, and the SEC has taken testimony from certain of the Company’s employees. The Company has cooperated and has engaged in discussions to resolve these matters with the SEC. • In October 2014, May 2015, July 2015 and February 2017, the Company received subpoenas and/or Civil Investigative Demands (CIDs) from the Attorneys General of California, Illinois, Oregon, New Jersey, Maryland and Washington under the authority of each state's consumer protection statutes. The Company has been informed that these states serve as an executive committee on behalf of a group of 32 state Attorneys General. The subpoenas and/or CIDs from the executive committee states contain broad requests for information and the production of documents related to the Company’s underwriting, securitization, servicing and collection of nonprime vehicle loans. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the Attorneys General with respect to this matter. • In February 2016, the CFPB issued a supervisory letter relating to its investigation of the Company’s compliance systems, Board and senior management oversight, consumer complaint handling, marketing of GAP coverage and loan deferral disclosure practices. The Company subsequently received a series of CIDs from the CFPB requesting information and testimony regarding the Company’s marketing of GAP coverage and loan deferral disclosure practices. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the CFPB with respect to this matter. • In August 2017, the Company received a CID from the CFPB. The stated purpose of the CID is to determine whether the Company has complied with the Fair Credit Reporting Act and related regulations. The Company has responded to these requests within the deadlines specified in the CIDs and has otherwise cooperated with the CFPB with respect to this matter. These matters are ongoing and could in the future result in the imposition of damages, fines or other penalties. No assurance can be given that the ultimate outcome of these matters or any resulting proceedings would not materially and adversely affect the Company’s business, financial condition and results of operations. • 2017 Written Agreement with the Federal Reserve In March 2017, the Company and SHUSA entered into a written agreement with the FRBB. Under the terms of the agreement, the Company is required to enhance its compliance risk management program, Board oversight of risk management and senior management oversight of risk management, and SHUSA is required to enhance its oversight of the Company's management and operations. • Mississippi Attorney General Lawsuit In January 2017, the Attorney General of Mississippi filed a lawsuit against the Company in the Chancery Court of the First Judicial District of Hinds County, Mississippi, captioned State of Mississippi ex rel. Jim Hood, Attorney General of the State of Mississippi v. Santander Consumer USA Inc., C.A. # G-2017-28. The complaint alleges that the Company engaged in unfair and deceptive business practices to induce Mississippi consumers to apply for loans that they could not afford. The complaint asserts claims under the Mississippi Consumer Protection Act (the MCPA) and seeks unspecified civil penalties, equitable relief and other relief. In March 2017, the Company filed motions to dismiss the lawsuit and subsequently filed a motion to stay the lawsuit pending the resolution of an interlocutory appeal relating to the MCPA before the Mississippi Supreme Court in Purdue Pharma, L.P., et al. v. State, No. 2017-IA- 00300-SCT. In September 2017, the court granted the motion to stay and ordered a stay of all proceedings, excluding discovery and final briefing on motions to dismiss. • SCRA Consent Order In February 2015, the Company entered into a consent order with the DOJ, approved by the United States District Court for the Northern District of Texas, that resolves the DOJ’s claims against the Company that certain of its repossession and collection activities during the period of time between January 2008 and February 2013 violated the Servicemembers Civil Relief Act (SCRA). T he consent order requires the Company to pay a civil fine in the amount of $55 , as well as at least $9,360 to affected servicemembers consisting of $10 per servicemember plus compensation for any lost equity (with interest) for each repossession by the Company, and $5 per servicemember for each instance where the Company sought to collect repossession-related fees on accounts where a repossession was conducted by a prior account holder. The consent order also provides for monitoring by the DOJ for the Company’s SCRA compliance for a period of five years and requires the Company to undertake certain additional remedial measures. Agreements • Bluestem The Company is party to agreements with Bluestem whereby the Company is committed to purchase certain new advances on personal revolving financings receivables, along with existing balances on accounts with new advances, originated by Bluestem for an initial term ending in April 2020 and renewable through April 2022 at Bluestem's option. As of September 30, 2018 and December 31, 2017, the total unused credit available to customers was $3.9 billion . In 2017, the Company purchased $1.2 billion of receivables, out of the $4.0 billion unused credit available to customers as of December 31, 2016. In addition, the Company purchased $263,831 of receivables related to newly opened customer accounts in 2017. During the nine months ended September 30, 2018 , the Company purchased $0.8 billion of receivables, out of the $3.9 billion unused credit available to customers as of December 31, 2017. In addition, the Company purchased $154,796 of receivables related to newly opened customer accounts during the nine months ended September 30, 2018 . Each customer account generated under the agreements generally is approved with a credit limit higher than the amount of the initial purchase, with each subsequent purchase automatically approved as long as it does not cause the account to exceed its limit and the customer is in good standing. As of September 30, 2018 and December 31, 2017 , the Company was obligated to purchase $11,941 and $11,539 , respectively, in receivables that had been originated by Bluestem but not yet purchased by the Company. The Company also is required to make a profit-sharing payment to Bluestem each month if performance exceeds a specified return threshold. During the year ended December 31, 2015, the Company and Bluestem executed an amendment that, among other provisions, increases the profit-sharing percentage retained by the Company, gives Bluestem the right to repurchase up to 9.99% of the existing portfolio at any time during the term of the agreement, and, provided that repurchase right is exercised, gives Bluestem the right to retain up to 20% of new accounts subsequently originated. • SBNA The Company also has agreements with SBNA to service recreational and marine vehicle portfolios. These agreements call for a periodic retroactive adjustment, based on cumulative return performance, of the servicing fee rate to inception of the contract. There were zero adjustments for the three and nine months ended September 30, 2018 and September 30, 2017 . The Company provided SBNA with the first right to review and approve consumer vehicle lease applications, subject to volume constraints, under terms of a flow agreement that was terminated in May 2015. The Company has indemnified SBNA for potential credit and residual losses on $48,226 of leases that had been originated by SBNA under this program but were subsequently determined not to meet SBNA’s underwriting requirements. This indemnification agreement is supported by an equal amount of cash collateral posted by the Company in an SBNA bank account. The collateral account balance is included in restricted cash in the Company's consolidated balance sheets. As of September 30, 2018 , the balance in the collateral account is zero . In January 2015, the Company additionally agreed to indemnify SBNA for residual losses, up to a cap, on certain leases originated under the flow agreement for which SBNA and the Company had differing residual value expectations at lease inception. As of September 30, 2018 and December 31, 2017 , the Company had a recorded liability of $39 and $2,206 , respectively, related to the residual losses covered under the agreement. • Others Under terms of an application transfer agreement with Nissan, the Company has the first opportunity to review for its own portfolio any credit applications turned down by the Nissan's captive finance company. The agreement does not require the Company to originate any loans, but for each loan originated the Company will pay Nissan a referral fee . In connection with the sale of retail installment contracts through securitizations and other sales, the Company has made standard representations and warranties customary to the consumer finance industry. Violations of these representations and warranties may require the Company to repurchase loans previously sold to on- or off-balance sheet Trusts or other third parties. As of September 30, 2018 , there were no loans that were the subject of a demand to repurchase or replace for breach of representations and warranties for the Company's asset-backed securities or other sales. In the opinion of management, the potential exposure of other recourse obligations related to the Company’s retail installment contract sales agreements is not expected to have a material adverse effect on the Company’s business, financial position, results of operations, or cash flows. Santander has provided guarantees on the covenants, agreements, and obligations of the Company under the governing documents of its warehouse lines and privately issued amortizing notes. These guarantees are limited to the obligations of the Company as servicer. In November 2015, the Company executed a forward flow asset sale agreement with a third party under terms of which the Company committed to sell $350,000 in charged off loan receivables in bankruptcy status on a quarterly basis . However, any sale more than $275,000 is subject to a market price check. The remaining aggregate commitment as of September 30, 2018 and December 31, 2017 , not subject to market price check was $78,466 and $98,858 , respectively. Leases The Company has entered into various operating leases, primarily for office space and computer equipment. Lease expense incurred totaled $2,571 and $7,661 for the three and nine months ended September 30, 2018 , respectively and $2,773 and $8,240 for the three and nine months ended September 30, 2017 respectively. The remaining obligations under lease commitments at September 30, 2018 are as follows: Years ended December 31, 2018 $ 3,050 2019 12,817 2020 13,080 2021 12,940 2022 12,282 Thereafter 44,663 Total $ 98,832 |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Related-party transactions not otherwise disclosed in these footnotes to the condensed consolidated financial statements include the following: Credit Facilities Interest expense, including unused fees, for affiliate lines/letters of credit for the three and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Line of credit agreement with Santander - New York Branch (Note 5) $ 1,512 $ 8,158 $ 11,620 $ 46,624 Debt facilities with SHUSA (Note 5) 38,460 26,211 110,868 59,105 Accrued interest for affiliate lines/letters of credit at September 30, 2018 and December 31, 2017 , was as follows: September 30, December 31, 2017 Line of credit agreement with Santander - New York Branch (Note 5) $ — $ 1,435 Debt facilities with SHUSA (Note 5) 18,449 18,670 In August 2015, under an agreement with Santander, the Company agreed to begin incurring a fee of 12.5 basis points (per annum) on certain warehouse lines, as they renew, for which Santander provides a guarantee of the Company's servicing obligations. The Company recognized guarantee fee expense of $1,129 and $4,747 for the three and nine months ended September 30, 2018 , respectively, and $1,672 and $4,620 for the three and nine months ended September 30, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had $1,645 and $7,598 of related fees payable to Santander, respectively. Derivatives The Company has derivative financial instruments with Santander and affiliates with outstanding notional amounts of zero and $3,734,400 at September 30, 2018 and December 31, 2017 , respectively (Note 7). The Company had a collateral overage on derivative liabilities with Santander and affiliates of zero and $1,622 at September 30, 2018 and December 31, 2017 , respectively. Interest and mark-to-market adjustments on these agreements totaled $234 and $1,227 for the three months ended September 30, 2018 and 2017 , respectively, and $694 and $1,443 for the nine months ended September 30, 2018 and 2017 , respectively. Lease origination and servicing agreement In June 2014, the Company executed a bulk sale of Chrysler Capital automobile leases to SBNA. As part of the sale, the Company retained servicing rights on all of the leases sold to SBNA. In addition, during 2014 and until May 2015, the Company was party to a flow agreement with SBNA whereby SBNA had the first right to review and approve Chrysler Capital consumer vehicle lease applications. The Company received an origination fee on all leases originated under this agreement and continues to service these vehicles leases. Pursuant to the Chrysler Agreement, the Company pays FCA on behalf of SBNA for residual gains and losses on the flowed leases. Servicing fee income recognized on leases serviced for SBNA totaled $59 and $1,066 for the three months ended September 30, 2018 and 2017 , respectively, and $1,407 and $4,115 for the nine months ended September 30, 2018 and 2017 , respectively. Other information on the consumer vehicle lease portfolio serviced for SBNA as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, Total serviced portfolio $ 809 $ 321,629 Origination and servicing fees receivable 17 2,067 Revenue share reimbursement receivable 238 1,548 In June 2014, the Company entered into an indemnification agreement with SBNA whereby the Company indemnifies SBNA for any credit or residual losses on a pool of $48,226 in leases originated under the flow agreement. The covered leases are non-conforming units because they did not meet SBNA’s credit criteria at origination. At the time of the agreement, the Company established a $48,226 collateral account with SBNA in restricted cash that will be released over time to SBNA, in the case of losses, and the Company, in the case of payments and sale proceeds. As of September 30, 2018 and December 31, 2017 , the balance in the collateral account is zero and $18 , respectively. The Company recognized zero indemnification expense for the three and nine months ended September 30, 2018 and 2017 . Also, in January 2015, the Company agreed to indemnify SBNA for residual losses, up to a cap, on certain leases originated under the flow agreement between September 24, 2014 and May 9, 2015 for which SBNA and the Company had differing residual value expectations at lease inception. At the time of the agreement, the Company established a collateral account held by SBNA to cover the expected losses, as of September 30, 2018 and December 31, 2017 , the balance in the collateral account was $40 and $2,210 , respectively. As of September 30, 2018 and December 31, 2017 , the Company had a recorded liability of $39 and $2,206 respectively, related to the residual losses covered under the agreement. Retail Installment Contracts and RV Marine The Company also has agreements with SBNA to service auto retail installment contracts and recreational and marine vehicle portfolios. In addition, during the three months ended September 30, 2017, the Company sold certain receivables previously acquired with deteriorated credit quality to SBNA. The Company will continue to perform the servicing of these assets. Servicing fee income recognized under these agreements totaled $684 and $887 for the three months ended September 30, 2018 and 2017 , respectively, and $2,479 and $2,658 for the nine months ended September 30, 2018 and 2017 , respectively. Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, Total serviced portfolio $ 411,664 $ 522,219 Cash collections due to owner 16,776 12,306 Servicing fees receivable 763 943 Dealer Lending The Company is required to permit SBNA a first right to review and assess Chrysler Capital dealer lending opportunities, and SBNA is required to pay the Company origination fee and annual renewal fee for each loan. The agreement also transferred the servicing of all Chrysler Capital receivables from dealers, including receivables held by SBNA and by the Company, from the Company to SBNA. The Company may provide advance funding for dealer loans originated by SBNA, which is reimbursed to the Company by SBNA. The Company had no outstanding receivable from SBNA as of September 30, 2018 and December 31, 2017 for such advances. Other information related to the above transactions with SBNA as of September 30, 2018 and December 31, 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Origination and renewal fee income from SBNA (a) $ 871 $ 603 $ 2,943 $ 2,148 Servicing fees expenses charged by SBNA (b) 19 21 59 77 (a) As of September 30, 2018 and December 31, 2017 , the Company had origination and renewal fees receivable from SBNA of $326 and $369 , respectively. (b) As of September 30, 2018 and December 31, 2017 , the Company had $9 and $9 , respectively, of servicing fees payable to SBNA, respectively . Under the agreement with SBNA, the Company may originate retail consumer loans in connection with sales of vehicles that are collaterally held against floorplan loans by SBNA. Upon origination, the Company remits payment to SBNA, who settles the transaction with the dealer. The Company owed SBNA $7,420 and $4,481 related to such originations as of September 30, 2018 and December 31, 2017 , respectively. The Company received a $9,000 referral fee in connection with sourcing and servicing arrangement and is amortizing the fee into income over the ten -year term of the agreement through July 1, 2022, the termination date of the agreement. As of September 30, 2018 and December 31, 2017 , the unamortized fee balance was $4,275 and $4,950 , respectively. The Company recognized $225 and $675 of income related to the referral fee for the three and nine months ended September 30, 2018 and 2017 , respectively. Origination Support Services Beginning in 2018, the Company agreed to provide SBNA with origination support services in connection with the processing, underwriting and purchase of retail loans, primarily from Chrysler dealers. In addition, the Company agreed to perform the servicing for any loans originated on SBNA’s behalf. During the three and nine months ended September 30, 2018 , the Company facilitated the purchase of $685 million and $738 million of retail installment contacts, respectively. The Company recognized referral fee and servicing fee income of $4,564 and $4,952 , respectively, for the three and nine months ended September 30, 2018 of which $5,247 is receivable as of September 30, 2018 . In addition, beginning in 2016, the Company agreed to pay SBNA a market rate-based fee expense for payments made at SBNA retail branch locations for accounts originated or serviced by the Company and the costs associated with modifying the Advanced Teller platform to the payments. The Company incurred $86 and $62 for these services during the three months ended September 30, 2018 and 2017 , respectively, and $427 and $178 for the nine months ended September 30, 2018 and 2017 , respectively. Securitizations On March 29, 2017, the Company entered into a Master Securities Purchase Agreement (MSPA) with Santander, whereby the Company has the option to sell a contractually determined amount of eligible prime loans to Santander, through the SPAIN securitization platform, for a term ending in December 2018. The Company provides servicing on all loans originated under this arrangement. For the nine months ended September 30, 2017 , the Company sold $2,583,341 of loans under this MSPA arrangement. The MSPA was amended in early 2018 and under this amended agreement, the Company sold $2,905,922 of prime loans at fair value to Santander for the nine months ended September 30, 2018 . Other information relating to SPAIN securitization platform for the three and nine months ended September 30, 2018 and September 30, 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Servicing fee income $ 9,972 $ 529 $ 25,793 $ 1,419 Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) 4,218 6,846 24,298 13,026 Servicing fee receivable as of September 30, 2018 and December 31, 2017 was $3,304 and $1,848 , respectively. The Company had $22,451 and $12,961 of collections due to Santander as of September 30, 2018 and December 31, 2017 , respectively. Santander Investment Securities Inc. (SIS), an affiliated entity, serves as co-manager on certain of the Company’s securitizations. Amounts paid to SIS as co-manager for the three months ended September 30, 2018 and 2017 , totaled $139 and $100 , respectively, and totaled $997 and $1,259 for the nine months ended September 30, 2018 and 2017 , respectively, and are included in debt issuance costs in the accompanying condensed consolidated financial statements. CEO and other employee compensation In August 2017, the Board of the Company announced the appointment of Scott Powell as President and CEO. During the nine months ended September 30, 2018 , the Company accrued $2,569 as its share of compensation expense based on time allocation between his services to the Company and SHUSA. In addition, certain employees of the Company and SHUSA, provide services to each other. For the nine months ended September 30, 2018 , the Company owed SHUSA approximately $407 and SHUSA owed the Company approximately $360 for such services. Other related-party transactions As of September 30, 2018 , Jason Kulas, the Company's former CEO, had an equity investment in a property in which the Company leases 373,000 square feet as its corporate headquarters. For the three months ended September 30, 2018 and 2017 , the Company recorded $1,180 and $1,275 , respectively, in lease expenses on this property. For the nine months ended September 30, 2018 and 2017 , the Company recorded $3,582 and $3,836 , respectively, in lease expenses on this property. The Company subleases approximately 13,000 square feet of its corporate office space to SBNA. For the three months ended September 30, 2018 and 2017 , the Company recorded $40 and $41 respectively, in sublease revenue on this property. For the nine months ended September 30, 2018 and 2017 , the Company recorded $122 and $122 respectively, in sublease revenue on this property. Future minimum lease payments over the remainder of the 9 -year term of the lease, which extends through 2026, total $57,268 . The Company's wholly-owned subsidiary, Santander Consumer International Puerto Rico, LLC (SCI), opened deposit accounts with Banco Santander Puerto Rico, an affiliated entity. As of September 30, 2018 and December 31, 2017 , SCI had cash of $19,211 and $106,596 , respectively, on deposit with Banco Santander Puerto Rico. Beginning in 2017, the Company and SBNA entered into a Credit Card Agreement (Card Agreement) whereby SBNA will provide credit card services for travel and related business expenses and for vendor payments. This service is at zero cost but generate rebates based on purchases made. As of September 30, 2018 , the activities associated with the program were insignificant. Effective April 2017, the Company contracted Aquanima, a Santander affiliate, to provide procurement services. Expenses incurred and paid for totaled $378 and $142 for the three months ended September 30, 2018 and 2017 , respectively and $1,136 and $354 for the nine months ended September 30, 2018 and 2017 , respectively. The Company partners with SHUSA to place Cyber Liability Insurance in which participating national entities share $150 million aggregate limits. The Company repays SHUSA for the Company’s equitably allocated portion of insurance premiums and fees. Expenses incurred totaled $92 and $78 for the three months ended September 30, 2018 and 2017 , respectively and $277 and $234 for the nine months ended September 30, 2018 and 2017 , respectively. In addition the Company partners with SHUSA for various other insurance products. Expenses incurred totaled $195 and $163 for the three months ended September 30, 2018 and 2017 , respectively, and $520 and $444 for the nine months ended September 30, 2018 and 2017 , respectively. |
Computation of Basic and Dilute
Computation of Basic and Diluted Earnings per Common Share (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Common Share (As Revised) | Computation of Basic and Diluted Earnings per Common Share (As Revised) Earnings per common share (EPS) is computed using the two-class method required for participating securities. Restricted stock awards are considered to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of a declaration of a dividend on the Company's common shares. The calculation of diluted EPS excludes 114,124 and 778,019 employee stock options for the three months ended September 30, 2018 and 2017 , respectively and 178,062 and 778,019 for nine months ended September 30, 2018 and 2017 , respectively, as the effect of exercise or settlement of those securities would be anti-dilutive. RSUs of zero for the three and nine months ended September 30, 2018 and zero and 620,625 for the three and nine ended September 30, 2017 , respectively, were excluded from the calculation of diluted EPS as the effect of exercise or settlement of those securities would be anti-dilutive. The following table represents EPS numbers for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Earnings per common share Net income $ 231,948 $ 198,569 $ 811,588 $ 595,358 Weighted average number of common shares outstanding before restricted participating shares (in thousands) 360,725 359,496 360,899 359,274 Weighted average number of participating restricted common shares outstanding (in thousands) — 123 — 123 Weighted average number of common shares outstanding (in thousands) 360,725 359,619 360,899 359,397 Earnings per common share $ 0.64 $ 0.55 $ 2.25 $ 1.66 Earnings per common share - assuming dilution Net income $ 231,948 $ 198,569 $ 811,588 $ 595,358 Weighted average number of common shares outstanding (in thousands) 360,725 359,619 360,899 359,397 Effect of employee stock-based awards (in thousands) 720 841 815 672 Weighted average number of common shares outstanding - assuming dilution (in thousands) 361,445 360,460 361,714 360,069 Earnings per common share - assuming dilution $ 0.64 $ 0.55 $ 2.24 $ 1.65 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (As Revised) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments (As Revised) | Fair Value of Financial Instruments (As Revised) Fair value measurement requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs and also establishes a fair value hierarchy that categorizes the inputs to valuation techniques used to measure fair value into three levels as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that can be accessed as of the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 inputs are those other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 inputs are those that are unobservable for the asset or liability and are used to measure fair value to the extent relevant observable inputs are not available. Financial Instruments Disclosed, But Not Carried, At Fair Value The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at September 30, 2018 and December 31, 2017 , and the level within the fair value hierarchy: September 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 81,435 $ 81,435 $ 81,435 $ — $ — Finance receivables held for investment, net (b) 24,645,638 25,911,405 — — 25,911,405 Restricted cash (a) 2,130,130 2,130,130 2,130,130 — — Total $ 26,857,203 $ 28,122,970 $ 2,211,565 $ — $ 25,911,405 Liabilities: Notes payable — credit facilities (c) $ 5,632,053 $ 5,632,053 $ — $ — $ 5,632,053 Notes payable — secured structured financings (d) 24,867,297 24,919,860 — 18,222,814 6,697,046 Notes payable — related party (e) 3,003,529 2,939,929 — — 2,939,929 Total $ 33,502,879 $ 33,491,842 $ — $ 18,222,814 $ 15,269,028 December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 527,805 $ 527,805 $ 527,805 $ — $ — Finance receivables held for investment, net (b) 22,250,586 24,340,739 — — 24,340,739 Restricted cash (a) 2,553,902 2,553,902 2,553,902 — — Total $ 25,332,293 $ 27,422,446 $ 3,081,707 $ — $ 24,340,739 Liabilities: Notes payable — credit facilities (c) $ 4,848,316 $ 4,848,316 $ — $ — $ 4,848,316 Notes payable — secured structured financings (d) 22,557,895 22,688,381 — 12,275,408 10,412,973 Notes payable — related party (e) 3,754,223 3,754,223 — — 3,754,223 Total $ 31,160,434 $ 31,290,920 $ — $ 12,275,408 $ 19,015,512 (a) Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments are determined as follows: • Retail installment contracts held for investment and purchased receivables — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations. • Capital lease receivables — Capital lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. • Receivables from dealers and personal loans held for investment — Receivables from dealers and personal loans held for investment are carried at amortized cost, net of credit loss allowance. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (d) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company's publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, including historical default rates, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs. (e) Notes payable — related party — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company's unsecured cost of funds since the time of issuance and weighted average life of these notes. Financial Instruments Measured At Fair Value On A Recurring Basis The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 , and the level within the fair value hierarchy: Fair Value Measurements at September 30, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 178,752 $ — $ 178,752 $ — Other assets — cash flow hedging interest rate swaps (a) 70,091 — 70,091 — Other assets — trading interest rate swaps (a) 19,367 — 19,367 — Other liabilities — trading options for interest rate caps (a) 178,752 — 178,752 — Retail installment contracts acquired individually (b) 14,138 — — 14,138 Fair Value Measurements at December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 129,718 $ — $ 129,718 $ — Due from affiliates — trading interest rate caps (a) 6,112 — 6,112 — Other assets — cash flow hedging interest rate swaps (a) 39,036 — 39,036 — Due from affiliates — cash flow hedging interest rate swaps (a) 6,950 — 6,950 — Other assets — trading interest rate swaps (a) 7,925 — 7,925 — Due from affiliates — trading interest rate swaps (a) 1,671 — 1,671 — Other assets — trading options for interest rate caps (a) 20,075 — 20,075 — Due from affiliates — trading options for interest rate caps (a) 12,090 — 12,090 — Other liabilities — trading options for interest rate caps (a) 129,712 — 129,712 — Due to affiliates — trading options for interest rate caps (a) 6,112 — 6,112 — Other liabilities — trading interest rate caps (a) 20,019 — 20,019 — Due to affiliates — trading interest rate caps (a) 12,090 — 12,090 — Retail installment contracts acquired individually (b) 22,124 — — 22,124 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 7). (b) For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the condensed consolidated statement of income. The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Balance — beginning of period $ 17,182 $ 30,489 $ 22,124 $ 24,495 Additions / issuances — — 3,276 19,727 Net collection activities (3,245 ) (6,517 ) (12,775 ) (23,640 ) Gains recognized in earnings 201 827 1,513 4,217 Balance — end of period $ 14,138 $ 24,799 $ 14,138 $ 24,799 All total return settlement payments were made as of September 30, 2017, and the derivative instrument has been settled. The following table presents the changes in the total return settlement balance, which was classified as Level 3, for the three and nine months ended September 30, 2017 : Three Months Ended Nine Months Ended Balance — beginning of period $ 31,123 $ 30,618 (Gains)/losses recognized in earnings — 505 Settlements (31,123 ) (31,123 ) Balance — end of period $ — $ — The Company did not have any transfers between Levels 1 and 2 during the three and nine months ended September 30, 2018 and 2017 . There were no amounts transferred into or out of Level 3 during the three and nine months ended September 30, 2018 and 2017 . Financial Instruments Measured At Fair Value On A Nonrecurring Basis The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 , and are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2018 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the nine months ended September 30, 2018 Other assets — vehicles (a) $ 279,843 $ — $ 279,843 $ — $ — Personal loans held for sale (b) 933,380 — — 933,380 221,463 Retail installment contracts held for sale (c) — — — — 15,098 Auto loans impaired due to bankruptcy (d) 179,807 — 179,807 — 93,846 Fair Value Measurements at December 31, 2017 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the year ended December 31, 2017 Other assets — vehicles (a) $ 293,546 $ — $ 293,546 $ — $ — Personal loans held for sale (b) 1,062,089 — — 1,062,089 374,374 Retail installment contracts held for sale (c) 1,148,332 — — 1,148,332 11,686 Auto loans impaired due to bankruptcy (d) 121,578 — 121,578 — 75,194 ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates (principal and interest), discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. (c) Represents retail installment contract held for sale reserved for future SPAIN transactions. As the SPAIN ABS platform matures with several market executions over the last few quarters, the fair value of these installment contracts are estimated based on contractual pricing methodology used for previous SPAIN transactions. This pricing methodology includes consideration of significant unobservable inputs including investor return expectations (i.e., yield), expected lifetime cumulative net loss and weighted average life of the retail installment contracts. At December 31, 2017 , the estimated fair value was calculated based on a DCF analysis in which the Company used significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns. The change in methodology did not have a material impact on the fair value mark of the retail installments contacts held for sale. (d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. Quantitative Information about Level 3 Fair Value Measurements The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at September 30, 2018 and December 31, 2017 : Financial Instruments Fair Value at September 30, 2018 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 14,138 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 933,380 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Financial Instruments Fair Value at December 31, 2017 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 22,124 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 1,062,089 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-20% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Retail installment contracts held for sale $ 1,148,332 Discounted Cash Flow Discount Rate 3%-6% Default Rate 3%-4% Prepayment Rate 15%-20% Loss Severity Rate 50%-60% |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has granted stock options to certain executives, other employees, and independent directors under the Company's 2011 Management Equity Plan (the MEP), which enabled the Company to make stock option awards up to a total of approximately 29 million common shares (net of shares canceled and forfeited). The MEP expired in January 2015 and the Company will not grant any further awards under the MEP. The Company has granted stock options, restricted stock awards and restricted stock units (RSUs) under the Omnibus Incentive Plan (the Plan), which was established in 2013 and enables the Company to grant awards of cash and of non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, RSUs, and other awards that may be settled in or based upon the value of the Company's common stock up to a total of 5,192,641 common shares. The Plan was amended and restated as of June 16, 2016. Stock options granted under the MEP and the Plan have an exercise price based on the estimated fair market value of the Company’s common stock on the grant date. The stock options expire ten years after grant date and include both time vesting options and performance vesting options. The fair value of the stock options is amortized into expense over the vesting period as time and performance vesting conditions are met. Compensation expense related to the 583,890 shares of restricted stock that the Company has issued to certain executives is recognized over a five -year vesting period, with zero and $(220) recorded for the three months ended September 30, 2018 and 2017 , and zero and $139 for the nine months ended September 30, 2018 and 2017 , respectively. The Company recognized $6,892 and $12,166 related to stock options and restricted stock units within compensation expense for the nine months ended September 30, 2018 and 2017 , respectively. In addition, the Company recognizes forfeitures of awards as they occur. A summary of the Company’s stock options and related activity as of and for the nine months ended September 30, 2018 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2018 1,695,008 $ 12.39 4.7 $ 12,058 Granted — — — — Exercised (831,461 ) 9.51 — 7,583 Expired (76,885 ) 23.59 — — Forfeited (99,602 ) 23.13 — — Options outstanding at September 30, 2018 687,060 13.06 4.1 5,206 Options exercisable at September 30, 2018 605,905 $ 12.17 3.8 $ 5,024 In connection with compensation restrictions imposed on certain executive officers and other employees by the European Central Bank under the Capital Requirements Directive IV prudential rules, which require a portion of such officers' and employees' variable compensation to be paid in the form of equity, the Company periodically grants RSUs. Under the Plan, a portion of these RSUs vest immediately upon grant, and a portion vest annually over the following three or five years and subject to the achievement of certain performance conditions as applicable. After the shares subject to the RSUs vest and are settled, they are subject to transfer and sale restrictions for one year . In addition, the Company grants RSUs to certain officers and employees as part of variable compensation and these RSUs vest over three years . The Company also has granted certain directors RSUs that vest either upon the earlier of the first anniversary of grant date or the first stockholder meeting following the grant date. RSUs are valued based upon the fair market value on the date of the grant. A summary of the Company’s Restricted Stock Units and performance stock units and related activity as of and for the nine months ended September 30, 2018 is as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2018 650,252 $ 12.68 1.0 $ 12,108 Granted 617,279 16.48 — — Vested (509,421 ) 14.18 — 8,362 Forfeited/canceled (33,866 ) 12.54 — — Unvested as of September 30, 2018 724,244 14.82 1.3 14,514 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Repurchases and Treasury Stock In July 2018, the Board approved purchases by the Company up to $200 million , excluding commissions, of its outstanding common stock through June 2019. The following table presents the number of shares purchased during the three months ended September 30, 2018 , the average price paid per share and the dollar value of shares that may yet be purchased pursuant to the Company's repurchase authorization. Period Total Number of Shares Purchased Average Price paid per Share Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs July 1 - July 31 — $ — $ 200,000 August 1 - August 31 1,359,893 20.63 171,945 September 1 - September 30 1,027,798 21.35 150,000 Total 2,387,691 $ 20.94 During the three months ended September 30, 2018 , the Company purchased 2,387,691 shares of its common stock under its share repurchase program at a cost of approximately $50 million , excluding commissions. As of September 30, 2018 , the Company was authorized to purchase additional shares of common stock having a cost of approximately $150 million . The Company had 2,639,693 and 252,002 shares of treasury stock outstanding, with a cost of $55,549 and $5,370 as of September 30, 2018 , and December 31, 2017 , respectively. Prior to the IPO, the Company repurchased 3,154 shares as a result of an employee leaving the Company. Additionally, 248,848 shares were withheld to cover income taxes related to stock issued in connection with employee incentive compensation plans. Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2018 and 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Beginning balance, unrealized gains (losses) on cash flow hedges $ 62,449 $ 27,860 $ 44,262 $ 28,259 Other comprehensive income (loss) before reclassifications (gross) (a) 1,814 1,061 31,749 (3,062 ) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) (7,662 ) (1,440 ) (19,410 ) 2,284 Ending balance, unrealized gains (losses) on cash flow hedges $ 56,601 $ 27,481 $ 56,601 $ 27,481 (a) Includes impact of accumulated other comprehensive income reclassified to Retained earnings, primarily comprised of $6,149 as a result of the adoption of ASU 2018-02. Refer to Note 1 for further discussion. Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and nine months ended September 30, 2018 and 2017 consist of the following: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (11,170 ) Interest expense $ (1,461 ) Interest expense Tax expense (benefit) 3,508 21 Net of tax $ (7,662 ) $ (1,440 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (24,843 ) Interest expense $ 3,158 Interest expense Tax expense (benefit) 5,433 (874 ) Net of tax $ (19,410 ) $ 2,284 Dividends The Company paid a cash dividend of $0.20 per share in August 2018 and has declared a cash dividend of $0.20 per share, to be paid on November 15, 2018, to shareholders of record as of the close of business on November 10, 2018. |
Investment Losses, Net
Investment Losses, Net | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Losses, Net | Investment Losses, Net When the Company sells retail installment contracts acquired individually, personal loans or leases to unrelated third parties or to VIEs and determines that such sale meets the applicable criteria for sale accounting, the Company recognizes a gain or loss for the difference between the cash proceeds and carrying value of the assets sold. The gain or loss is recorded in investment gains (losses), net. Lower of cost or market adjustments on the recorded investment of finance receivables held for sale are also recorded in investment gains (losses), net. Investment gains (losses), net was comprised of the following for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Gain (loss) on sale of loans and leases $ (1,918 ) $ 29,974 $ (20,710 ) $ 16,913 Lower of cost or market adjustments (86,847 ) (84,718 ) (236,561 ) (246,522 ) Other gains, (losses and impairments), net 2,445 2,152 1,797 1,096 $ (86,320 ) $ (52,592 ) $ (255,474 ) $ (228,513 ) The lower of cost or market adjustments for the three and nine months ended September 30, 2018 and 2017 included $100,324 , $295,629 , $112,055 , and $336,413 in customer default activity, respectively, and net favorable adjustments of $13,495 , $59,068 , $27,337 , and $89,891 respectively, primarily related to net changes in the unpaid principal balance on the personal lending portfolio, most of which has been classified as held for sale. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its subsidiaries, including certain Trusts, which are considered VIEs. The Company also consolidates other VIEs for which it was deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. The accompanying condensed consolidated financial statements as of September 30, 2018 and December 31, 2017 , and for the three and nine months ended September 30, 2018 and 2017 , have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position, results of operations and cash flows for the periods indicated. Results of operations for the periods presented herein are not necessarily indicative of results of operations for the entire year. These financial statements should be read in conjunction with the 2017 Annual Report on Form 10-K. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosures of contingent assets and liabilities, as of the date of the financial statements and the amount of revenue and expenses during the reporting periods. Actual results could differ from those estimates and those differences may be material. These estimates include the determination of credit loss allowance, discount accretion, impairment, fair value, expected end-of-term lease residual values, values of repossessed assets, and income taxes. These estimates, although based on actual historical trends and modeling, may potentially show significant variances over time. |
Business Segment Information | Business Segment Information The Company has one reportable segment: Consumer Finance, which includes the Company’s vehicle financial products and services, including retail installment contracts, vehicle leases, and Dealer Loans, as well as financial products and services related to recreational vehicles, and marine vehicles. It also includes the Company’s personal loan and point-of-sale financing operations. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standards Since January 1, 2018, the Company adopted the following Financial Accounting Standards Board (FASB) Accounting Standards Updates (ASUs): • ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as amended . This ASU, requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It includes a five-step process to assist an entity in achieving the main principles of revenue recognition under ASC 606. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans, securities, and derivatives), it did not have a material impact on the elements of the Company's Consolidated Statements of Operations most closely associated with leases and financial instruments (such as interest income, interest expense and investment gains and losses). All other revenue streams in the scope of the new standard were not material. The Company adopted this standard as of January 1, 2018 using a modified retrospective approach. The adoption of this standard did not require any adjustments to the opening balance of retained earnings as of January 1, 2018. • ASU 2016-18, Statement of Cash Flows (Topic 230) . Restricted Cash (A consensus of the FASB Emerging Issues Task Force) , which requires that the statement of cash flows include restricted cash in the beginning and end-of-period total amounts shown on the statement of cash flows and that the statement of cash flows explain changes in restricted cash during the period. The Company adopted this standard as of January 1, 2018 using retrospective approach. The impact of this adoption was disclosure only for periods presented on the Company's Statements of Cash Flows. • ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities . The new guidance amends the hedge accounting model to enable entities to more accurately reflect their risk management activities in the financial statements. The amendments expand an entity’s ability to hedge nonfinancial and financial risk components and reduce complexity in hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line in which the earnings effect of the hedged item is reported. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company elected to early adopt this standard as of January 1, 2018 using modified retrospective approach. The adoption of this standard did not require any adjustments to the opening balance of retained earnings for cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness. • ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The new guidance is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company elected to early adopt this standard as of January 1, 2018 and reclassified $6,149 stranded income tax effects from accumulated other comprehensive income to retained earnings. The adoption of the following ASUs did not have an impact on the Company's business, financial position or results of operations. • ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, as amended • ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments • ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory • ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business • ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets • ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost • ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting • ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 • ASU 2018-06, Codification Improvements to Topic 942, Financial Services—Depository and Lending Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases . The primary effect of the ASU is to replace the existing accounting requirements for operating leases for lessees. Lessee accounting requirements for finance leases and lessor accounting requirements for operating leases and sales type and direct financing leases (sales-type and direct financing leases were both previously referred to as capital leases) are largely unchanged. The ASU is effective on January 1, 2019, with early adoption permitted. The Company is currently in the process of reviewing its lease contracts and examining the practical expedients and accounting policy elections provided in the ASU, as well as ensuring the Company's control environment and reporting processes reflect the requirements of the ASU. Upon adoption, for our operating leases where the Company is the lessee (primarily our facilities leases), the Company's balance sheet will include a right-of-use asset and lease liability that will be derecognized in a manner that effectively yields a straight-line lease expense over the lease term. In addition, the Company will no longer capitalize certain initial direct costs in connection with lease originations where it is the lessor. The ASU will be applied on a modified retrospective basis with a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Comparative periods presented in the financial statement and associated required disclosures will continue to be presented in accordance with Topic 840. The Company currently plans to adopt the ASU on January 1, 2019. The Company does not anticipate that the adoption of the ASU will have a material impact to our financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses , which changes the criteria under which credit losses are measured. The amendment introduces a new credit reserving model known as the Current Expected Credit Loss (CECL) model, which replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to establish credit loss estimates. The guidance will be effective for the fiscal year beginning after December 15, 2019, including interim periods within that year. The Company does not intend to adopt the new standard early and is currently evaluating the impact the new guidance will have on its financial position, results of operations and cash flows; however, it is expected that the new CECL model will alter the assumptions used in calculating the Company's credit losses, given the change to estimated losses for the estimated life of the financial asset, and will likely result in material changes to the Company’s credit and capital reserves. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement , which modifies the disclosure requirements on fair value measurements. The ASU removes the requirement to disclose: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This new guidance will be effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This new guidance will be effective for public companies for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that the new guidance will have on its consolidated financial statements and related disclosures. In addition to those described in detail above, the Company is also in the process of evaluating the following ASUs and does not expect them to have a material impact on the Company's business, financial position, results of operations or disclosures: • ASU 2017-06, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): Employee Benefit Plan Master Trust Reporting (a consensus of the Emerging Issues Task Force) • ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities • ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception • ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting • ASU 2018-09, Codification Improvements |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Corrections to Previously Reported Amounts | The following tables summarize the impacts of the corrections on the Company’s Consolidated Balance Sheet: June 30, 2018 March 31, 2018 December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Assets Finance receivable held for investment, net 24,096,770 (39,606 ) 24,057,164 22,587,358 (35,712 ) 22,551,646 22,427,769 (33,483 ) 22,394,286 Accrued interest receivable 286,164 23,658 309,822 269,258 19,264 288,522 326,640 13,978 340,618 Total assets $ 41,173,136 $ (15,948 ) $ 41,157,188 $ 40,045,188 $ (16,448 ) $ 40,028,740 $ 39,422,304 $ (19,505 ) $ 39,402,799 Liabilities and Equity Liabilities: Deferred tax liabilities, net 1,079,557 (3,849 ) 1,075,708 966,444 (3,965 ) 962,479 897,121 (4,706 ) 892,415 Total liabilities $ 34,127,402 $ (3,849 ) $ 34,123,553 $ 33,319,173 $ (3,965 ) $ 33,315,208 $ 32,941,803 $ (4,706 ) $ 32,937,097 Total stockholders' equity 7,045,734 (12,099 ) 7,033,635 6,726,015 (12,483 ) 6,713,532 6,480,501 (14,799 ) 6,465,702 Total liabilities and equity $ 41,173,136 $ (15,948 ) $ 41,157,188 $ 40,045,188 $ (16,448 ) $ 40,028,740 $ 39,422,304 $ (19,505 ) $ 39,402,799 September 30, 2017 June 30, 2017 March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Assets Finance receivable held for investment, net 22,667,203 (29,211 ) 22,637,992 23,634,914 (21,165 ) 23,613,749 23,444,625 (9,373 ) 23,435,252 Accrued interest receivable 330,554 9,744 340,298 330,710 3,023 333,733 306,742 2,123 308,865 Total assets $ 38,765,557 $ (19,467 ) $ 38,746,090 $ 39,507,482 $ (18,142 ) $ 39,489,340 $ 39,061,940 $ (7,250 ) $ 39,054,690 Liabilities and Equity Liabilities: Deferred tax liabilities, net 1,515,932 (7,335 ) 1,508,597 1,419,820 (6,829 ) 1,412,991 1,342,055 (2,714 ) 1,339,341 Total liabilities $ 32,880,323 $ (7,335 ) $ 32,872,988 $ 33,828,749 $ (6,829 ) $ 33,821,920 $ 33,642,942 $ (2,714 ) $ 33,640,228 Total stockholders' equity 5,885,234 (12,132 ) 5,873,102 5,678,733 (11,313 ) 5,667,420 5,418,998 (4,536 ) 5,414,462 Total liabilities and equity $ 38,765,557 $ (19,467 ) $ 38,746,090 $ 39,507,482 $ (18,142 ) $ 39,489,340 $ 39,061,940 $ (7,250 ) $ 39,054,690 The following tables summarize the impacts of the corrections on the Consolidated Statements of Income and Comprehensive Income: Six months ended June 30, 2018 Three months ended June 30, 2018 Three months ended March 31, 2018 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 2,270,673 108,873 2,379,546 1,156,536 54,470 1,211,006 1,114,137 54,403 1,168,540 Provision for credit losses 811,570 105,315 916,885 352,575 53,969 406,544 458,995 51,346 510,341 Income (loss) before income taxes 748,255 3,558 751,813 448,645 501 449,146 299,610 3,057 302,667 Income tax expense 171,315 857 172,172 114,004 116 114,120 57,311 741 58,052 Net income (loss) 576,940 2,700 579,640 334,641 385 335,026 242,299 2,315 244,614 Net income (loss) per common share (basic) $ 1.60 $ 0.01 $ 1.61 $ 0.93 $ — $ 0.93 $ 0.67 $ 0.01 $ 0.68 Net income (loss) per common share (diluted) $ 1.59 $ 0.01 $ 1.60 $ 0.92 $ 0.01 $ 0.93 $ 0.67 $ 0.01 $ 0.68 For the year ended December 31, 2017 Nine months ended September 30, 2017 Three months ended September 30, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 4,755,678 89,945 4,845,623 3,626,497 54,036 3,680,533 1,185,059 33,240 1,218,299 Provision for credit losses 2,254,361 109,450 2,363,811 1,692,015 73,503 1,765,518 536,447 34,565 571,012 Income (loss) before income taxes 823,514 (19,505 ) 804,009 847,309 (19,467 ) 827,842 277,773 (1,325 ) 276,448 Income tax expense (364,092 ) (4,706 ) (368,798 ) 239,819 (7,335 ) 232,484 78,385 (506 ) 77,879 Net income (loss) 1,187,606 (14,799 ) 1,172,807 607,490 (12,132 ) 595,358 199,388 (819 ) 198,569 Net income (loss) per common share (basic) $ 3.30 $ (0.04 ) $ 3.26 $ 1.69 $ (0.03 ) $ 1.66 $ 0.55 $ — $ 0.55 Net income (loss) per common share (diluted) $ 3.30 $ (0.04 ) $ 3.26 $ 1.69 $ (0.04 ) $ 1.65 $ 0.55 $ — $ 0.55 Six months ended June 30, 2017 Three months ended June 30, 2017 Three months ended March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Interest on finance receivable and loans 2,441,438 20,796 2,462,234 1,232,252 (8,167 ) 1,224,085 1,209,186 28,963 1,238,149 Provision for credit losses 1,155,568 38,938 1,194,506 520,555 2,725 523,280 635,013 36,213 671,226 Income (loss) before income taxes 569,536 (18,142 ) 551,394 348,108 (10,892 ) 337,216 221,428 (7,250 ) 214,178 Income tax expense 161,434 (6,829 ) 154,605 83,433 (4,115 ) 79,318 78,001 (2,714 ) 75,287 Net income (loss) 408,102 (11,314 ) 396,788 264,675 (6,777 ) 257,898 143,427 (4,536 ) 138,891 Net income (loss) per common share (basic) $ 1.14 $ (0.04 ) $ 1.10 $ 0.74 $ (0.02 ) $ 0.72 $ 0.40 $ (0.01 ) $ 0.39 Net income (loss) per common share (diluted) $ 1.13 $ (0.03 ) $ 1.10 $ 0.74 $ (0.02 ) $ 0.72 $ 0.40 $ (0.01 ) $ 0.39 The following tables summarize the impacts of the corrections on the Consolidated Statement of Cash Flows: Six months ended June 30, 2018 Three months ended March 31, 2018 For the year ended December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised Net cash provided by operating activities 3,413,047 99,192 3,512,239 1,835,235 49,117 1,884,352 3,766,605 75,968 3,842,573 Net cash used in investing activities (4,773,776 ) (99,192 ) (4,872,968 ) (1,528,057 ) (49,117 ) (1,577,174 ) (3,415,591 ) (75,968 ) (3,491,559 ) Nine months ended September 30, 2017 Six months ended June 30, 2017 Three months ended March 31, 2017 Reported (a) Corrections Revised Reported (a) Corrections Revised Reported (a) Corrections Revised Net cash provided by operating activities 3,666,086 44,293 3,710,379 2,215,804 17,773 2,233,577 1,464,010 26,840 1,490,850 Net cash used in investing activities (2,882,641 ) (44,293 ) (2,926,934 ) (2,352,925 ) (17,773 ) (2,370,698 ) (1,165,288 ) (26,840 ) (1,192,128 ) (a) Adjusted for ASU 2016-18 Statement of Cash Flows (Topic 230) for periods ended September 30, 2017, June 30, 2017, and March 31, 2017 In addition to the revision of the Company’s consolidated financial statements, information within the footnotes to the consolidated statements has been revised to reflect the correction of the errors discussed above. The following table summarizes the impacts of the corrections of those items, including table disclosures in Note 4 Credit Loss Allowance and Credit Quality: June 30, 2018 March 31, 2018 December 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised TDR - Unpaid principal balance $ 5,958,564 $ 139,716 $ 6,098,280 $ 5,998,768 $ 97,110 $ 6,095,878 $ 6,261,894 $ 52,141 $ 6,314,035 TDR - Impairment 1,496,580 167,642 1,664,222 1,595,465 120,667 1,716,132 1,731,320 72,812 1,804,132 TDR allowance ratio 25.1 % 2.2 % 27.3 % 26.6 % 1.6 % 28.2 % 27.6 % 1.0 % 28.6 % Nonaccrual loans TDRs 1,554,860 (957,705 ) 597,155 1,346,148 (781,215 ) 564,933 1,390,373 (583,435 ) 806,938 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,535,166 116,651 2,651,817 2,238,425 95,020 2,333,445 2,827,678 130,517 2,958,195 Delinquent principal over 59 days 1,151,410 83,092 1,234,502 1,089,648 72,663 1,162,311 1,544,583 101,206 1,645,789 Total delinquent principal 3,686,576 199,743 3,886,319 3,328,073 167,683 3,495,756 4,372,261 231,723 4,603,984 September 30, 2017 June 30, 2017 March 31, 2017 Reported Corrections Revised Reported Corrections Revised Reported Corrections Revised TDR - Unpaid principal balance $ 6,276,659 $ 24,499 $ 6,301,158 $ 5,880,317 $ 9,978 $ 5,890,295 $ 5,788,390 $ 1,251 $ 5,789,641 TDR - Impairment 1,782,114 40,400 1,822,514 1,686,159 18,337 1,704,496 1,604,489 8,033 1,612,522 TDR allowance ratio 28.4 % 0.5 % 28.9 % 28.7 % 0.3 % 29.0 % 27.7 % 0.1 % 27.8 % Nonaccrual loans TDRs Not applicable, since disclosure started in Q4'2017 Not applicable, since disclosure started in Q4'2017 Not applicable, since disclosure started in Q4'2017 Delinquencies for our retail installment contracts held for investment: Principal, 30-59 days past due 2,580,226 114,104 2,694,330 2,709,606 133,781 2,843,387 2,345,995 98,728 2,444,723 Delinquent principal over 59 days 1,464,543 76,580 1,541,123 1,417,461 92,946 1,510,407 1,153,369 72,318 1,225,687 Total delinquent principal 4,044,769 190,684 4,235,453 4,127,067 226,727 4,353,794 3,499,364 171,046 3,670,410 |
Finance Receivables (As Revis_2
Finance Receivables (As Revised) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Summary of Financing Receivables Held for Investment | Purchased receivables portfolios, which were acquired with deteriorated credit quality, is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Outstanding balance $ 32,642 $ 43,474 Outstanding recorded investment, net of impairment 20,833 28,069 Finance receivables held for investment, net is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail installment contracts acquired individually (a) (b) $ 24,784,966 $ 22,329,026 Purchased receivables-Credit Impaired 20,673 27,839 Receivables from dealers 14,787 15,623 Personal loans 2,507 4,459 Capital lease receivables (Note 3) 16,650 17,339 Finance receivables held for investment, net $ 24,839,583 $ 22,394,286 (a) The Company has elected the fair value option for certain retail installment contracts reported in finance receivables held for investment, net. As at September 30, 2018 and December 31, 2017 , $14,138 and $22,124 of loans were recorded at fair value (Note 13). (b) During the three months ended September 30, 2018 , the Company purchased finance receivables from a third party lender for $67,249 . The unpaid principal balance of these loans as of the acquisition date was $74,086 . The Company determined that the acquired loans were non-credit impaired loans because they either did not have evidence of credit quality deterioration or it was not probable that the Company would not collect all contractually required payments, which was evaluated using a number of factors including the loan’s delinquency status, borrower’s credit status, and roll rates. Accordingly, these loans are accounted for in accordance with ASC 310 - 20. Under ASC 310-20, the difference between the loan's principal balance, at the time of purchase, and the fair value is recognized as an adjustment of yield over the life of the loan. All other policies related to interest income, calculation of allowance for loan losses, and recognizing TDRs would be similar to retail installment contracts acquired individually and are originated by the Company. The Company's held for investment portfolio of retail installment contracts acquired individually, receivables from dealers, and personal loans is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, 2018 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 22,483,913 $ 5,759,094 $ 14,942 $ 3,266 Credit loss allowance - specific — (1,559,808 ) — — Credit loss allowance - collective (1,740,862 ) — (155 ) (897 ) Discount (191,421 ) (48,787 ) — — Capitalized origination costs and fees 77,832 5,005 — 138 Net carrying balance $ 20,629,462 $ 4,155,504 $ 14,787 $ 2,507 December 31, 2017 Retail Installment Contracts Receivables from Personal Loans Non-TDR TDR Unpaid principal balance $ 19,679,082 $ 6,314,035 $ 15,787 $ 6,887 Credit loss allowance - specific — (1,804,132 ) — — Credit loss allowance - collective (1,540,315 ) — (164 ) (2,565 ) Discount (309,191 ) (74,832 ) — (1 ) Capitalized origination costs and fees 58,638 5,741 — 138 Net carrying balance $ 17,888,214 $ 4,440,812 $ 15,623 $ 4,459 |
Changes in Accretable Yield on Purchased Receivables Portfolios | Changes in accretable yield on the Company’s purchased receivables portfolios-credit impaired for the periods indicated were as follows: For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Balance — beginning of period $ 18,368 $ 87,994 $ 19,464 $ 107,041 Accretion of accretable yield (1,974 ) (5,223 ) (7,059 ) (26,670 ) Disposals/transfers — (62,183 ) — (62,183 ) Reclassifications from (to) nonaccretable difference (a) 2,111 1,648 6,100 4,048 Balance — end of period $ 18,505 $ 22,236 $ 18,505 $ 22,236 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. |
Schedule of Carrying Values of Finance Receivables Held for Sale | The carrying value of the Company's finance receivables held for sale, net is comprised of the following at September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail installment contracts acquired individually $ — $ 1,148,332 Personal loans 933,380 1,062,089 Finance receivables held for sale, net $ 933,380 $ 2,210,421 |
Schedule of Sales of Retail Installment Contracts and Charged-off Assets | Sales of retail installment contracts and proceeds from sales of charged-off assets for the three and nine months ended September 30, 2018 and 2017 were as follows: For the Three Months Ended For the Nine Months Ended 2018 2017 2018 2017 Sales of retail installment contracts to third parties $ — $ — $ — $ 260,568 Sale of retail installment contracts to affiliates 274,609 1,347,010 2,905,922 2,583,341 Proceeds from sales of charged-off assets to third parties 3,845 27,954 38,720 76,746 |
Schedule of Servicing of Retail Installment Contracts | Total contracts sold to unrelated third parties and/or serviced as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, 2017 Serviced balance of retail installment contracts and leases $ 4,294,459 $ 5,771,085 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Summary of Leased Vehicles | Leased vehicles, net, which is comprised of leases originated under the Chrysler Agreement, consisted of the following as of September 30, 2018 and December 31, 2017 : September 30, December 31, Leased vehicles $ 17,635,911 $ 14,285,769 Less: accumulated depreciation (3,249,421 ) (3,110,167 ) Depreciated net capitalized cost 14,386,490 11,175,602 Manufacturer subvention payments, net of accretion (1,262,906 ) (1,042,477 ) Origination fees and other costs 60,209 27,202 Net book value $ 13,183,793 $ 10,160,327 |
Summary of Minimum Rental Payments under Operating Leases | The following summarizes the future minimum rental payments due to the Company as lessor under operating leases as of September 30, 2018 : Remainder of 2018 $ 603,824 2019 2,033,861 2020 1,358,993 2021 375,454 2022 13,027 Thereafter — Total $ 4,385,159 |
Schedule of Capital Lease Receivables | Capital lease receivables, net consisted of the following as of September 30, 2018 and December 31, 2017 : September 30, December 31, Gross investment in capital leases $ 24,214 $ 27,234 Origination fees and other 164 124 Less: unearned income (4,264 ) (4,377 ) Net investment in capital leases before allowance 20,114 22,981 Less: allowance for lease losses (3,464 ) (5,642 ) Net investment in capital leases $ 16,650 $ 17,339 |
Summary of Future Minimum Lease Payments for Capital Leases | The following summarizes the future minimum lease payments due to the Company as lessor under capital leases as of September 30, 2018 : Remainder of 2018 $ 2,261 2019 7,322 2020 5,944 2021 4,383 2022 3,386 Thereafter 918 Total $ 24,214 |
Credit Loss Allowance and Cre_2
Credit Loss Allowance and Credit Quality (As Revised) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of Activity in Loan Loss Allowance | The activity in the lease loss allowance for capital leases for the three and nine months ended September 30, 2018 and 2017 was as follows: Three Months Ended Nine Months Ended 2018 2017 2018 2017 Balance — beginning of period $ 3,582 $ 6,367 $ 5,642 $ 9,988 Provision for lease losses 109 432 (1,239 ) (597 ) Charge-offs (1,614 ) (2,655 ) (4,755 ) (9,415 ) Recoveries 1,387 1,462 3,816 5,630 Balance — end of period $ 3,464 $ 5,606 $ 3,464 $ 5,606 The activity in the credit loss allowance for individually acquired retail installment contracts and Dealer Loans for the three and nine months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,651,714 $ 1,664,222 $ 158 $ 1,116 $ 1,771,309 $ 1,704,496 $ 713 $ 4,362 Provision for credit losses 380,496 217,447 (3 ) (135 ) 140,315 429,677 (546 ) 1,134 Charge-offs (a) (701,393 ) (524,429 ) — (414 ) (711,495 ) (507,066 ) — (1,976 ) Recoveries 410,045 202,568 — 330 399,522 195,407 — 205 Balance — end of period $ 1,740,862 $ 1,559,808 $ 155 $ 897 $ 1,599,651 $ 1,822,514 $ 167 $ 3,725 (a) For the three months ended September 30, 2018 and September 30, 2017 , charge-offs for retail installment contracts acquired individually includes approximately $5 million and $18 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Retail Installment Contracts Acquired Individually Receivables from Dealers Personal Loans Retail Installment Contracts Acquired Individually Receivables Personal Loans Non-TDR TDR Non-TDR TDR Balance — beginning of period $ 1,540,315 $ 1,804,132 $ 164 $ 2,565 $ 1,799,760 $ 1,611,295 $ 724 $ — Provision for credit losses 930,595 585,771 (9 ) (320 ) 671,471 1,084,926 (557 ) 10,275 Charge-offs (a) (1,962,220 ) (1,484,482 ) — (2,177 ) (2,105,835 ) (1,459,239 ) — (7,194 ) Recoveries 1,232,172 654,387 — 829 1,234,255 585,532 — 644 Balance — end of period $ 1,740,862 $ 1,559,808 $ 155 $ 897 $ 1,599,651 $ 1,822,514 $ 167 $ 3,725 (a) For the nine months ended September 30, 2018 and September 30, 2017 , charge-offs for retail installment contracts acquired individually includes approximately $19 million and $66 million , respectively, for the partial write-down of loans to the collateral value less estimated costs to sell, for which a bankruptcy notice was received. There is no additional credit loss allowance on these loans. |
Summary of Delinquencies | A summary of delinquencies as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,975,844 $ 2,618 $ 2,978,462 Delinquent principal over 59 days (a) 1,560,736 1,750 1,562,486 Total delinquent principal $ 4,536,580 $ 4,368 $ 4,540,948 December 31, 2017 Retail Installment Contracts Held for Investment Loans Acquired Individually Purchased Receivables Portfolios Total Principal, 30-59 days past due $ 2,953,203 $ 4,992 $ 2,958,195 Delinquent principal over 59 days (a) 1,642,934 2,855 1,645,789 Total delinquent principal $ 4,596,137 $ 7,847 $ 4,603,984 (a) Interest is generally accrued until 60 days past due in accordance with the Company's accounting policy for retail installment contracts. |
Summary of Financing Receivables on Nonaccrual Status | In addition, retail installment contracts acquired individually held for investment that were placed on nonaccrual status, as of September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Amount Percent (a) Amount Percent (a) Non-TDR $ 701,017 2.5 % $ 691,256 2.7 % TDR 725,202 2.6 % 806,938 3.1 % Total nonaccrual principal $ 1,426,219 5.0 % $ 1,498,194 5.8 % (a) Percent of unpaid principal balance of retail installment contracts individually held for investment. |
Summary of Credit Risk Profile | A summary of the credit risk profile of the Company’s retail installment contracts held for investment by FICO ® distribution, determined at origination, as of September 30, 2018 and December 31, 2017 was as follows: FICO ® Band September 30, 2018 (b) December 31, 2017 (b) Commercial (a) 1.9% 2.5% No-FICOs 11.2% 11.2% <540 20.4% 21.9% 540-599 32.7% 32.0% 600-639 18.0% 17.3% >640 15.8% 15.1% (a) No FICO score is obtained on loans to commercial borrowers. (b) Percentages are based on unpaid principal balance. |
Summary Commercial Loan Credit Quality Indicators | Fleet loan credit quality indicators for retail installment contracts held for investment with commercial borrowers as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, Pass $ 9,290 $ 12,276 Special Mention 4,391 5,324 Substandard 338 715 Doubtful — — Loss — — Total (Unpaid principal balance) $ 14,019 $ 18,315 Commercial loan credit quality indicators for receivables from dealers held for investment as of September 30, 2018 and December 31, 2017 were as follows: September 30, December 31, Pass $ 14,925 $ 14,130 Special Mention 17 1,657 Substandard — — Doubtful — — Loss — — Total (Unpaid principal balance) $ 14,942 $ 15,787 |
Summary of TDRs | The table below presents the Company’s TDRs as of September 30, 2018 and December 31, 2017 : September 30, December 31, 2017 Retail Installment Contracts Outstanding recorded investment (a) $ 5,746,081 $ 6,328,159 Impairment (1,559,808 ) (1,804,132 ) Outstanding recorded investment, net of impairment $ 4,186,273 $ 4,524,027 (a) As of September 30, 2018 , the outstanding recorded investment excludes $84.6 million of collateral-dependent bankruptcy TDRs that have been written down by $34.3 million to fair value less cost to sell. As of December 31, 2017 , the outstanding recorded investment excludes $64.7 million of collateral-dependent bankruptcy TDRs that have been written down by $29.2 million to fair value less cost to sell. |
Summary of Delinquent TDRs | A summary of the Company’s delinquent TDRs at September 30, 2018 and December 31, 2017 , is as follows: September 30, December 31, 2017 Retail Installment Contracts (a) Principal, 30-59 days past due $ 1,326,903 $ 1,422,101 Delinquent principal over 59 days 804,161 893,708 Total delinquent TDR principal $ 2,131,064 $ 2,315,809 (a) The balances in the above table reflects total unpaid principal balance rather than net recorded investment before allowance. |
Average Recorded Investment and Income Recognized on TDR Loans | Average recorded investment and interest income recognized on TDR loans are as follows: Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 5,968,689 $ 6,167,737 Interest income recognized $ 257,168 $ 258,882 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Average outstanding recorded investment in TDRs $ 6,167,812 $ 5,964,045 Interest income recognized $ 808,230 $ 765,724 |
Summary of Financial Effects of TDRs | The following table summarizes the financial effects, excluding impacts related to credit loss allowance and impairment, of TDRs (including collateral-dependent bankruptcy TDRs) that occurred for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Outstanding recorded investment before TDR $ 471,482 $ 1,123,080 Outstanding recorded investment after TDR $ 472,392 $ 1,122,450 Number of contracts (not in thousands) 28,004 66,001 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Outstanding recorded investment before TDR $ 1,779,855 $ 2,778,407 Outstanding recorded investment after TDR $ 1,780,494 $ 2,776,006 Number of contracts (not in thousands) 105,643 160,098 |
Summary of Loan Restructuring Accounted for as TDRs | Loan restructurings accounted for as TDRs within the previous twelve months that subsequently defaulted during the three and nine months ended September 30, 2018 and 2017 are summarized in the following table: Three Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 163,483 $ 197,953 Number of contracts (not in thousands) 9,924 11,219 Nine Months Ended September 30, 2018 September 30, 2017 Retail Installment Contracts Recorded investment in TDRs that subsequently defaulted (a) $ 503,309 $ 600,117 Number of contracts (not in thousands) 30,171 33,735 (a) For TDR modifications and TDR modifications that subsequently defaults, the allowance methodology remains unchanged; however, the transition rates of the TDR loans are adjusted to reflect the respective risks. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facilities | The following table presents information regarding credit facilities as of September 30, 2018 and December 31, 2017 : September 30, 2018 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line August 2019 $ 75,984 $ 500,000 6.41% $ 108,816 $ 2,357 Warehouse line Various (a) 352,945 1,250,000 4.27% 525,663 — Warehouse line (b) August 2020 3,370,243 4,150,000 3.20% 4,614,029 4,464 Warehouse line (c) October 2019 244,277 1,800,000 5.51% 342,305 15 Repurchase facility (d) (e) December 2018 81,810 81,810 3.99% 121,070 12,951 Repurchase facility (d) December 2018 50,720 51,770 3.61% 63,600 — Repurchase facility (d) December 2018 139,190 139,895 3.30% 173,980 — Warehouse line November 2019 963,599 1,000,000 3.05% 1,356,132 1 Warehouse line (f) October 2019 28,265 400,000 8.63% 39,928 4 Warehouse line November 2019 325,020 500,000 3.08% 370,346 464 Warehouse line (g) October 2018 — 300,000 2.39% 219,148 315 Total facilities with third parties 5,632,053 10,173,475 7,935,017 20,571 Facilities with Santander and related subsidiaries: Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note March 2019 300,000 300,000 3.66% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note (h) March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit July 2021 — 500,000 4.34% — — Line of credit March 2019 — 3,000,000 4.97% — — Total facilities with Santander and related subsidiaries 3,000,000 6,500,000 — — Total revolving credit facilities $ 8,632,053 $ 16,673,475 $ 7,935,017 $ 20,571 (a) One-half of the outstanding balance on this facility matures in March 2019 and remaining balance matures in March 2020. (b) This line is held exclusively for financing of Chrysler Capital leases. The Commitment amount was increased to $4.4 billion in November 2018. (c) The Commitment amount of this warehouse line was increased to $2.05 billion in October 2018. (d) These repurchase facilities are collateralized by securitization notes payable retained by the Company. These facilities have rolling maturities of up to one year . As the borrower, we are exposed to liquidity risk due to changes in the market value of the retained securities pledged. In some instances, we place or receive cash collateral with counterparties under collateral arrangements associated with our repurchase agreements. (e) This repurchase facility was settled and terminated in October 2018. (f) This warehouse line was settled and terminated in October 2018. (g) The maturity of this warehouse line was extended to January 2019. (h) In 2017, the Company entered into an interest rate swap to hedge the interest rate risk on this fixed rate debt. This derivative was designated as fair value hedge at inception. This derivative was later terminated and the unamortized fair value hedge adjustment as of September 30, 2018 and December 31, 2017 was $3,529 and $4,223 , respectively, the amortization of which will reduce interest expense over the remaining life of the fixed rate debt. December 31, 2017 Maturity Date(s) Utilized Balance Committed Amount Effective Rate Assets Pledged Restricted Cash Pledged Facilities with third parties: Warehouse line January 2018 $ 336,484 $ 500,000 2.87% $ 473,208 $ — Warehouse line Various 339,145 1,250,000 2.53% 461,353 12,645 Warehouse line August 2019 2,044,843 3,900,000 2.96% 2,929,890 53,639 Warehouse line December 2018 — 300,000 1.49% — — Warehouse line October 2019 226,577 1,800,000 4.95% 311,336 6,772 Repurchase facility Various 325,775 325,775 3.24% 474,188 13,842 Repurchase facility April 2018 202,311 202,311 2.67% 264,120 — Repurchase facility March 2018 147,500 147,500 3.91% 222,108 — Repurchase facility March 2018 68,897 68,897 3.04% 95,762 — Warehouse line November 2019 403,999 1,000,000 2.66% 546,782 14,729 Warehouse line October 2019 81,865 400,000 4.09% 114,021 3,057 Warehouse line November 2019 435,220 500,000 1.92% 521,365 16,866 Warehouse line October 2018 235,700 300,000 2.84% 289,634 10,474 Total facilities with third parties 4,848,316 10,694,483 6,703,767 132,024 Facilities with Santander and related subsidiaries: Line of credit December 2018 — 1,000,000 3.09% — — Promissory Note December 2021 250,000 250,000 3.70% — — Promissory Note December 2022 250,000 250,000 3.95% — — Promissory Note March 2019 300,000 300,000 2.67% — — Promissory Note October 2020 400,000 400,000 3.10% — — Promissory Note May 2020 500,000 500,000 3.49% — — Promissory Note March 2022 650,000 650,000 4.20% — — Promissory Note August 2021 650,000 650,000 3.44% — — Line of credit December 2018 750,000 750,000 1.33% — — Line of credit March 2019 — 3,000,000 3.94% — — Total facilities with Santander and related subsidiaries 3,750,000 7,750,000 — — Total revolving credit facilities $ 8,598,316 $ 18,444,483 $ 6,703,767 $ 132,024 |
Summary of Secured Structured Financings | The following table presents information regarding secured structured financings as of September 30, 2018 and December 31, 2017 : September 30, 2018 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral (b) Restricted Cash 2014 Securitizations August 2020 - April 2022 $ 434,595 $ 3,541,020 1.16% - 1.63% $ 552,276 $ 103,712 2015 Securitizations April 2021 - June 2023 1,922,671 9,054,732 1.33% - 2.29% 2,266,085 297,123 2016 Securitizations February 2022 - March 2024 2,448,623 7,462,790 1.63% - 2.80% 3,243,607 298,765 2017 Securitizations July 2022 - February 2025 4,900,963 9,296,570 1.35% - 2.52% 6,888,692 378,480 2018 Securitizations December 2022 - January 2026 9,940,913 11,197,440 2.41% - 3.53% 12,400,287 448,249 Public Securitizations (a) 19,647,765 40,552,552 25,350,947 1,526,329 2011 Private issuance September 2028 105,182 1,700,000 1.46% 230,698 92 2013 Private issuances August 2021-September 2024 1,031,720 2,044,054 1.28% - 1.38% 2,203,204 4,634 2015 Private issuances July 2019 - September 2021 1,238,515 2,058,187 0.88% - 2.80% 406,236 2,840 2016 Private issuances May 2020 - September 2024 596,893 3,050,000 1.55% - 2.86% 1,115,725 2,244 2017 Private issuances April 2021 - September 2021 840,138 1,600,000 1.85% - 2.44% 1,190,795 6,238 2018 Private issuance June 2022 - January 2023 1,407,084 1,000,002 2.42% - 2.89% 1,869,961 21,313 Privately issued amortizing notes (c) 5,219,532 11,452,243 7,016,619 37,361 Total secured structured financings $ 24,867,297 $ 52,004,795 $ 32,367,566 $ 1,563,690 (a) Securitizations executed under Rule 144A of the Securities Act are included within this balance. (b) Secured structured financings may be collateralized by the Company's collateral overages of other issuances. (c) All privately issued amortizing notes issued in 2014 were paid in full. December 31, 2017 Estimated Maturity Date(s) Balance Initial Note Amounts Issued Initial Weighted Average Interest Rate Collateral Restricted Cash 2013 Securitizations January 2019 - March 2021 $ 418,806 $ 4,239,700 0.89% - 1.59% $ 544,948 $ 125,696 2014 Securitizations February 2020 - April 2022 1,150,422 6,391,020 1.16% - 1.72% 1,362,814 210,937 2015 Securitizations September 2019 - January 2023 2,484,051 9,171,332 1.33% - 2.29% 3,465,671 366,062 2016 Securitizations April 2022 - March 2024 3,596,822 7,462,790 1.63% - 2.80% 4,798,807 344,899 2017 Securitizations April 2023 - September 2024 7,343,157 9,535,800 2.01% - 2.52% 9,701,381 422,865 Public Securitizations 14,993,258 36,800,642 19,873,621 1,470,459 2011 Private issuance September 2028 281,946 1,700,000 1.46% 398,051 20,356 2013 Private issuances August 2021 - September 2024 2,292,279 2,044,054 1.28% - 1.38% 3,719,148 155,066 2014 Private issuances March 2018 - November 2021 117,730 1,538,087 1.05% - 1.40% 231,997 9,552 2015 Private issuances November 2018 - September 2021 2,009,627 2,305,062 0.88% - 4.09% 988,247 55,451 2016 Private issuances May 2020 - September 2024 1,489,464 3,050,000 1.55% - 2.86% 2,147,988 89,460 2017 Private issuances April 2021 - September 2021 1,373,591 1,641,079 1.85% - 2.27% 1,747,227 47,415 Privately issued amortizing notes 7,564,637 12,278,282 9,232,658 377,300 Total secured structured financings $ 22,557,895 $ 49,078,924 $ 29,106,279 $ 1,847,759 |
Variable Interest Entities (A_2
Variable Interest Entities (As Revised) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity Disclosure [Abstract] | |
Summary of Cash Flows Received from Consolidated Securitization Trusts | A summary of the cash flows received from consolidated securitization trusts during the three and nine months ended September 30, 2018 and 2017 , is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Assets securitized $ 5,414,393 $ 2,998,430 $ 19,167,290 $ 15,395,158 Net proceeds from new securitizations (a) $ 4,014,928 $ 2,936,719 $ 12,073,124 $ 11,998,611 Net proceeds from sale of retained bonds 203,704 — 797,336 273,733 Cash received for servicing fees (b) 229,520 228,131 659,210 653,048 Net distributions from Trusts (b) 860,024 666,179 2,186,010 2,073,965 Total cash received from Trusts $ 5,308,176 $ 3,831,029 $ 15,715,680 $ 14,999,357 (a) Includes additional advances on existing securitizations. (b) These amounts are not reflected in the accompanying condensed consolidated statements of cash flows because these cash flows are intra-company and eliminated in consolidation. A summary of the cash flows received from off-balance sheet securitization trusts during the three and nine months ended September 30, 2018 and 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Receivables securitized (a) $ 274,609 $ 1,347,010 $ 2,905,922 $ 2,583,341 Net proceeds from new securitizations $ 274,855 $ 1,347,430 $ 2,909,794 $ 2,588,227 Cash received for servicing fees 11,896 12,309 32,590 25,677 Total cash received from securitization trusts $ 286,751 $ 1,359,739 $ 2,942,384 $ 2,613,904 (a) Represents the unpaid principal balance at the time of original securitization. |
Off-balance Sheet Variable Interest Entities Portfolio | The portfolio was comprised as follows: September 30, 2018 December 31, SPAIN $ 3,835,018 $ 2,024,016 Total serviced for related parties 3,835,018 2,024,016 Chrysler Capital securitizations 822,041 1,404,232 Total serviced for third parties 822,041 1,404,232 Total serviced for others portfolio $ 4,657,059 $ 3,428,248 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Underlying Notional Amounts and Aggregate Fair Values | The underlying notional amounts and aggregate fair values of these derivatives financial instruments at September 30, 2018 and December 31, 2017 , are as follows: September 30, 2018 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,068,100 $ 70,091 $ 70,091 $ — Interest rate swap agreements not designated as hedges 2,567,000 19,367 19,367 — Interest rate cap agreements 8,343,345 178,752 178,752 — Options for interest rate cap agreements 8,343,345 (178,752 ) — (178,752 ) December 31, 2017 Notional Fair Value Asset Liability Interest rate swap agreements designated as cash flow hedges $ 4,926,900 $ 45,986 $ 45,986 $ — Interest rate swap agreements not designated as hedges 1,736,400 9,596 9,596 — Interest rate cap agreements 10,906,081 103,721 135,830 (32,109 ) Options for interest rate cap agreements 10,906,081 (103,659 ) 32,165 (135,824 ) |
Schedule of Offsetting Financial Assets | Gross Amounts Not Offset in the Assets Presented Cash Net September 30, 2018 Interest rate swaps - third party (b) $ 89,458 $ (60,262 ) $ 29,196 Interest rate caps - third party 178,752 (87,692 ) 91,060 Total derivatives subject to a master netting arrangement or similar arrangement 268,210 (147,954 ) 120,256 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 268,210 $ (147,954 ) $ 120,256 Total financial assets $ 268,210 $ (147,954 ) $ 120,256 December 31, 2017 Interest rate swaps - Santander and affiliates $ 8,621 $ (3,461 ) $ 5,160 Interest rate swaps - third party 46,961 (448 ) 46,513 Interest rate caps - Santander and affiliates 18,201 (12,240 ) 5,961 Interest rate caps - third party 149,794 (55,835 ) 93,959 Total derivatives subject to a master netting arrangement or similar arrangement 223,577 (71,984 ) 151,593 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative assets $ 223,577 $ (71,984 ) $ 151,593 Total financial assets $ 223,577 $ (71,984 ) $ 151,593 (a) Cash collateral received is reported in Other liabilities or Due to affiliate, as applicable, in the consolidated balance sheet. (b) Includes derivative instruments originally transacted with Santander and affiliates and subsequently amended to reflect clearing with central clearing counterparties. |
Schedule of Offsetting Financial Liabilities | Gross Amounts Not Offset in the Liabilities Presented Cash Net September 30, 2018 Back to back - third party 178,752 (178,752 ) — Total derivatives subject to a master netting arrangement or similar arrangement 178,752 (178,752 ) — Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 178,752 $ (178,752 ) $ — Total financial liabilities $ 178,752 $ (178,752 ) $ — December 31, 2017 Back to back - Santander & affiliates 18,201 (18,201 ) — Back to back - third party 149,732 (133,540 ) 16,192 Total derivatives subject to a master netting arrangement or similar arrangement 167,933 (151,741 ) 16,192 Total derivatives not subject to a master netting arrangement or similar arrangement — — — Total derivative liabilities $ 167,933 $ (151,741 ) $ 16,192 Total financial liabilities $ 167,933 $ (151,741 ) $ 16,192 (a) Cash collateral pledged is reported in Other assets or Due from affiliate, as applicable, in the consolidated balance sheet. In certain instances, the Company is over-collateralized since the actual amount of cash pledged as collateral exceeds the associated financial liability. As a result, the actual amount of cash collateral pledged that is reported in Other assets or Due from affiliates may be greater than the amount shown in the table above. |
Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) | The impacts on the condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 3,244 $ 11,170 Total $ — $ 3,244 $ 11,170 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (2,566 ) Three Months Ended September 30, 2017 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (2,061 ) $ (882 ) $ 1,461 Interest rate swap agreements designated as fair value hedges $ (1,232 ) $ — $ — Total $ (3,293 ) $ (882 ) $ 1,461 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,723 Nine Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 38,085 $ 24,843 Total $ — $ 38,085 $ 24,843 Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ (12,305 ) Nine Months Ended September 30, 2017 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (11,573 ) $ 4,233 $ (3,158 ) Total $ (11,573 ) $ 4,233 $ (3,158 ) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,297 |
Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) | The impacts on the condensed consolidated statements of income and comprehensive income for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 3,244 $ 11,170 Total $ — $ 3,244 $ 11,170 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (2,566 ) Three Months Ended September 30, 2017 Recognized in Earnings Gross Gains (Losses) Recognized in Accumulated Other Comprehensive Income (Loss) Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (2,061 ) $ (882 ) $ 1,461 Interest rate swap agreements designated as fair value hedges $ (1,232 ) $ — $ — Total $ (3,293 ) $ (882 ) $ 1,461 Derivative instruments not designated as hedges Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,723 Nine Months Ended September 30, 2018 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ — $ 38,085 $ 24,843 Total $ — $ 38,085 $ 24,843 Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses $ (12,305 ) Nine Months Ended September 30, 2017 Recognized in Earnings Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) Gross amount Reclassified From Accumulated Other Comprehensive Interest rate swap agreements designated as cash flow hedges $ (11,573 ) $ 4,233 $ (3,158 ) Total $ (11,573 ) $ 4,233 $ (3,158 ) Derivative instruments not designated as hedges: Losses (Gains) recognized in interest expenses (90 ) Losses (Gains) recognized in operating expenses $ 2,297 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets were comprised as follows: September 30, December 31, Vehicles (a) $ 279,843 $ 293,546 Manufacturer subvention payments receivable (b) 141,025 83,910 Upfront fee (b) 68,750 80,000 Derivative assets at fair value (c) 268,210 196,755 Derivative - third party collateral 184,458 149,805 Prepaids 27,828 40,830 Accounts receivable 29,362 38,583 Other 55,946 29,815 Other assets $ 1,055,422 $ 913,244 (a) Includes vehicles recovered through repossession as well as vehicles recovered due to lease terminations. (b) These amounts relate to the Chrysler Agreement. The Company paid a $150,000 upfront fee upon the May 2013 inception of the Chrysler Agreement. The fee is being amortized into finance and other interest income over a ten -year term. As the preferred financing provider for FCA, the Company is entitled to subvention payments on loans and leases with below-market customer payments. Exercise of the equity option in the Chrysler agreement by FCA would require SC to evaluate whether the remaining unamortized balance of the upfront fee should be impaired. To date, FCA has not exercised its equity option. (c) Derivative assets at fair value represent the gross amount of derivatives presented in the condensed consolidated financial statements. Refer to Note 7 to these Condensed Consolidated Financial Statements for the detail of these amounts. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Liabilities for Commitments and Contingencies | The following table summarizes liabilities recorded for commitments and contingencies as of September 30, 2018 and December 31, 2017 , all of which are included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheets: Agreement or Legal Matter Commitment or Contingency September 30, 2018 December 31, 2017 Chrysler Agreement Revenue-sharing and gain-sharing payments $ 12,270 $ 6,580 Agreement with Bank of America Servicer performance fee 6,700 8,072 Agreement with CBP Loss-sharing payments 4,464 5,625 Other Contingencies Consumer arrangements 11,957 6,326 Legal and regulatory proceedings Aggregate legal and regulatory liabilities 110,000 108,800 |
Schedule of Future Minimum Rental Payments for Operating Leases | The remaining obligations under lease commitments at September 30, 2018 are as follows: Years ended December 31, 2018 $ 3,050 2019 12,817 2020 13,080 2021 12,940 2022 12,282 Thereafter 44,663 Total $ 98,832 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Other information on the serviced auto loan and retail installment contract portfolios for SBNA as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, Total serviced portfolio $ 411,664 $ 522,219 Cash collections due to owner 16,776 12,306 Servicing fees receivable 763 943 Other information relating to SPAIN securitization platform for the three and nine months ended September 30, 2018 and September 30, 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Servicing fee income $ 9,972 $ 529 $ 25,793 $ 1,419 Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) 4,218 6,846 24,298 13,026 Other information related to the above transactions with SBNA as of September 30, 2018 and December 31, 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Origination and renewal fee income from SBNA (a) $ 871 $ 603 $ 2,943 $ 2,148 Servicing fees expenses charged by SBNA (b) 19 21 59 77 (a) As of September 30, 2018 and December 31, 2017 , the Company had origination and renewal fees receivable from SBNA of $326 and $369 , respectively. (b) As of September 30, 2018 and December 31, 2017 , the Company had $9 and $9 , respectively, of servicing fees payable to SBNA, respectively . Interest expense, including unused fees, for affiliate lines/letters of credit for the three and nine months ended September 30, 2018 and 2017 , was as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Line of credit agreement with Santander - New York Branch (Note 5) $ 1,512 $ 8,158 $ 11,620 $ 46,624 Debt facilities with SHUSA (Note 5) 38,460 26,211 110,868 59,105 Accrued interest for affiliate lines/letters of credit at September 30, 2018 and December 31, 2017 , was as follows: September 30, December 31, 2017 Line of credit agreement with Santander - New York Branch (Note 5) $ — $ 1,435 Debt facilities with SHUSA (Note 5) 18,449 18,670 Other information on the consumer vehicle lease portfolio serviced for SBNA as of September 30, 2018 and December 31, 2017 is as follows: September 30, December 31, Total serviced portfolio $ 809 $ 321,629 Origination and servicing fees receivable 17 2,067 Revenue share reimbursement receivable 238 1,548 |
Computation of Basic and Dilu_2
Computation of Basic and Diluted Earnings per Common Share (As Revised) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Earnings per Common Share | The following table represents EPS numbers for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended 2018 2017 2018 2017 Earnings per common share Net income $ 231,948 $ 198,569 $ 811,588 $ 595,358 Weighted average number of common shares outstanding before restricted participating shares (in thousands) 360,725 359,496 360,899 359,274 Weighted average number of participating restricted common shares outstanding (in thousands) — 123 — 123 Weighted average number of common shares outstanding (in thousands) 360,725 359,619 360,899 359,397 Earnings per common share $ 0.64 $ 0.55 $ 2.25 $ 1.66 Earnings per common share - assuming dilution Net income $ 231,948 $ 198,569 $ 811,588 $ 595,358 Weighted average number of common shares outstanding (in thousands) 360,725 359,619 360,899 359,397 Effect of employee stock-based awards (in thousands) 720 841 815 672 Weighted average number of common shares outstanding - assuming dilution (in thousands) 361,445 360,460 361,714 360,069 Earnings per common share - assuming dilution $ 0.64 $ 0.55 $ 2.24 $ 1.65 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (As Revised) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Estimates, Methods and Assumptions | The following tables present the carrying value and estimated fair value of the Company’s financial assets and liabilities disclosed, but not carried, at fair value at September 30, 2018 and December 31, 2017 , and the level within the fair value hierarchy: September 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 81,435 $ 81,435 $ 81,435 $ — $ — Finance receivables held for investment, net (b) 24,645,638 25,911,405 — — 25,911,405 Restricted cash (a) 2,130,130 2,130,130 2,130,130 — — Total $ 26,857,203 $ 28,122,970 $ 2,211,565 $ — $ 25,911,405 Liabilities: Notes payable — credit facilities (c) $ 5,632,053 $ 5,632,053 $ — $ — $ 5,632,053 Notes payable — secured structured financings (d) 24,867,297 24,919,860 — 18,222,814 6,697,046 Notes payable — related party (e) 3,003,529 2,939,929 — — 2,939,929 Total $ 33,502,879 $ 33,491,842 $ — $ 18,222,814 $ 15,269,028 December 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 Assets: Cash and cash equivalents (a) $ 527,805 $ 527,805 $ 527,805 $ — $ — Finance receivables held for investment, net (b) 22,250,586 24,340,739 — — 24,340,739 Restricted cash (a) 2,553,902 2,553,902 2,553,902 — — Total $ 25,332,293 $ 27,422,446 $ 3,081,707 $ — $ 24,340,739 Liabilities: Notes payable — credit facilities (c) $ 4,848,316 $ 4,848,316 $ — $ — $ 4,848,316 Notes payable — secured structured financings (d) 22,557,895 22,688,381 — 12,275,408 10,412,973 Notes payable — related party (e) 3,754,223 3,754,223 — — 3,754,223 Total $ 31,160,434 $ 31,290,920 $ — $ 12,275,408 $ 19,015,512 (a) Cash and cash equivalents and restricted cash — The carrying amount of cash and cash equivalents, including restricted cash, is at an approximated fair value as the instruments mature within 90 days or less and bear interest at market rates. (b) Finance receivables held for investment, net — Finance receivables held for investment, net are carried at amortized cost, net of an allowance. These receivables exclude retail installment contracts that are measured at fair value on a recurring and nonrecurring basis. The estimated fair value for the underlying financial instruments are determined as follows: • Retail installment contracts held for investment and purchased receivables — The estimated fair value is calculated based on a DCF in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates, expected recovery rates, discount rates reflective of the cost of funding, and credit loss expectations. • Capital lease receivables — Capital lease receivables are carried at gross investments, net of unearned income and allowance for lease losses. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. • Receivables from dealers and personal loans held for investment — Receivables from dealers and personal loans held for investment are carried at amortized cost, net of credit loss allowance. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements. (c) Notes payable — credit facilities — The carrying amount of notes payable related to revolving credit facilities is estimated to approximate fair value. Management believes that the terms of these credit agreements approximate market terms for similar credit agreements as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. (d) Notes payable — secured structured financings — The estimated fair value of notes payable related to secured structured financings is calculated based on market observable prices and spreads for the Company's publicly traded debt and market observed prices of similar notes issued by the Company, or recent market transactions involving similar debt with similar credit risks, which are considered level 2 inputs. The estimated fair value of notes payable related to privately issued amortizing notes is calculated based on a combination of credit enhancement review, discounted cash flow analysis and review of market observable spreads for similar liabilities. In conducting this analysis, the Company uses significant unobservable inputs on key assumptions, including historical default rates, prepayment rates, discount rates reflective of the cost of funding, and credit loss expectations, which are considered level 3 inputs. (e) Notes payable — related party — The carrying amount of floating rate notes payable to a related party is estimated to approximate fair value as the facilities are subject to short-term floating interest rates that approximate rates available to the Company. The fair value premium/discount of the fixed rate promissory notes are derived from changes in the Company's unsecured cost of funds since the time of issuance and weighted average life of these notes. |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2018 and December 31, 2017 , and the level within the fair value hierarchy: Fair Value Measurements at September 30, 2018 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 178,752 $ — $ 178,752 $ — Other assets — cash flow hedging interest rate swaps (a) 70,091 — 70,091 — Other assets — trading interest rate swaps (a) 19,367 — 19,367 — Other liabilities — trading options for interest rate caps (a) 178,752 — 178,752 — Retail installment contracts acquired individually (b) 14,138 — — 14,138 Fair Value Measurements at December 31, 2017 Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets — trading interest rate caps (a) $ 129,718 $ — $ 129,718 $ — Due from affiliates — trading interest rate caps (a) 6,112 — 6,112 — Other assets — cash flow hedging interest rate swaps (a) 39,036 — 39,036 — Due from affiliates — cash flow hedging interest rate swaps (a) 6,950 — 6,950 — Other assets — trading interest rate swaps (a) 7,925 — 7,925 — Due from affiliates — trading interest rate swaps (a) 1,671 — 1,671 — Other assets — trading options for interest rate caps (a) 20,075 — 20,075 — Due from affiliates — trading options for interest rate caps (a) 12,090 — 12,090 — Other liabilities — trading options for interest rate caps (a) 129,712 — 129,712 — Due to affiliates — trading options for interest rate caps (a) 6,112 — 6,112 — Other liabilities — trading interest rate caps (a) 20,019 — 20,019 — Due to affiliates — trading interest rate caps (a) 12,090 — 12,090 — Retail installment contracts acquired individually (b) 22,124 — — 22,124 (a) The valuation is determined using widely accepted valuation techniques including a DCF on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivative, including the period to maturity, and uses observable market-based inputs. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurement of its derivatives. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings and guarantees. The Company utilizes the exception in ASC 820-10-35-18D (commonly referred to as the “portfolio exception”) with respect to measuring counterparty credit risk for instruments (Note 7). (b) For certain retail installment contracts reported in finance receivables held for investment, net, the Company has elected the fair value option. The fair values of the retail installment contracts are estimated using a DCF model. When estimating the fair value using this model, the Company uses significant unobservable inputs on key assumptions, which includes historical default rates and adjustments to reflect prepayment rates based on available data from a comparable market securitization of similar assets, discount rates reflective of the cost of funding of debt issuance and recent historical equity yields, and recovery rates based on the average severity utilizing reported severity rates and loss severity utilizing available market data from a comparable securitized pool. Accordingly, retail installment contracts held for investment are classified as Level 3. Changes in the fair value are recorded in investment gains (losses), net in the condensed consolidated statement of income. |
Changes in Level 3 Balances, Assets | The following table presents the changes in retail installment contracts held for investment balances classified as Level 3 balances for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Balance — beginning of period $ 17,182 $ 30,489 $ 22,124 $ 24,495 Additions / issuances — — 3,276 19,727 Net collection activities (3,245 ) (6,517 ) (12,775 ) (23,640 ) Gains recognized in earnings 201 827 1,513 4,217 Balance — end of period $ 14,138 $ 24,799 $ 14,138 $ 24,799 |
Change in Level 3 Balances, Liabilities | The following table presents the changes in the total return settlement balance, which was classified as Level 3, for the three and nine months ended September 30, 2017 : Three Months Ended Nine Months Ended Balance — beginning of period $ 31,123 $ 30,618 (Gains)/losses recognized in earnings — 505 Settlements (31,123 ) (31,123 ) Balance — end of period $ — $ — |
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents the Company’s assets and liabilities that are measured at fair value on a nonrecurring basis at September 30, 2018 and December 31, 2017 , and are categorized using the fair value hierarchy: Fair Value Measurements at September 30, 2018 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the nine months ended September 30, 2018 Other assets — vehicles (a) $ 279,843 $ — $ 279,843 $ — $ — Personal loans held for sale (b) 933,380 — — 933,380 221,463 Retail installment contracts held for sale (c) — — — — 15,098 Auto loans impaired due to bankruptcy (d) 179,807 — 179,807 — 93,846 Fair Value Measurements at December 31, 2017 Total Quoted Prices Significant Significant Lower of cost or fair value expense for the year ended December 31, 2017 Other assets — vehicles (a) $ 293,546 $ — $ 293,546 $ — $ — Personal loans held for sale (b) 1,062,089 — — 1,062,089 374,374 Retail installment contracts held for sale (c) 1,148,332 — — 1,148,332 11,686 Auto loans impaired due to bankruptcy (d) 121,578 — 121,578 — 75,194 ( a) The Company estimates the fair value of its vehicles, which are obtained either through repossession or lease termination, using historical auction rates and current market levels of used car prices. (b) The estimated fair value for personal loans held for sale is calculated based on the lower of market participant view and a DCF analysis in which the Company uses significant unobservable inputs on key assumptions, including historical default rates and adjustments to reflect prepayment rates (principal and interest), discount rates reflective of the cost of funding, and credit loss expectations. The lower of cost or fair value adjustment for personal loans held for sale includes customer default activity and adjustments related to the net change in the portfolio balance during the reporting period. (c) Represents retail installment contract held for sale reserved for future SPAIN transactions. As the SPAIN ABS platform matures with several market executions over the last few quarters, the fair value of these installment contracts are estimated based on contractual pricing methodology used for previous SPAIN transactions. This pricing methodology includes consideration of significant unobservable inputs including investor return expectations (i.e., yield), expected lifetime cumulative net loss and weighted average life of the retail installment contracts. At December 31, 2017 , the estimated fair value was calculated based on a DCF analysis in which the Company used significant unobservable inputs on key assumptions, including expected default rates, prepayment rates, recovery rates, and discount rates reflective of the cost of funds and appropriate rate of returns. The change in methodology did not have a material impact on the fair value mark of the retail installments contacts held for sale. (d) For loans that are considered collateral-dependent, such as certain bankruptcy loans, impairment is measured based on the fair value of the collateral, less its estimated cost to sell. For the underlying collateral, the estimated fair value is obtained using historical auction rates and current market levels of used car prices. |
Quantitative Information About Significant Unobservable Inputs for Liabilities Measured at Fair Value | The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at September 30, 2018 and December 31, 2017 : Financial Instruments Fair Value at September 30, 2018 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 14,138 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 933,380 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Financial Instruments Fair Value at December 31, 2017 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 22,124 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 1,062,089 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-20% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Retail installment contracts held for sale $ 1,148,332 Discounted Cash Flow Discount Rate 3%-6% Default Rate 3%-4% Prepayment Rate 15%-20% Loss Severity Rate 50%-60% The following table presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and nonrecurring basis at September 30, 2018 and December 31, 2017 : Financial Instruments Fair Value at September 30, 2018 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 14,138 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 933,380 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-25% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Financial Instruments Fair Value at December 31, 2017 Valuation Technique Unobservable Inputs Range Financial Assets: Retail installment contracts held for investment $ 22,124 Discounted Cash Flow Discount Rate 8%-10% Default Rate 15%-20% Prepayment Rate 6%-8% Loss Severity Rate 50%-60% Personal loans held for sale $ 1,062,089 Lower of Market or Income Approach Market Approach Market Participant View 70%-80% Income Approach Discount Rate 15%-20% Default Rate 30%-40% Net Principal & Interest Payment Rate 70%-85% Loss Severity Rate 90%-95% Retail installment contracts held for sale $ 1,148,332 Discounted Cash Flow Discount Rate 3%-6% Default Rate 3%-4% Prepayment Rate 15%-20% Loss Severity Rate 50%-60% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Options and Related Activity | A summary of the Company’s stock options and related activity as of and for the nine months ended September 30, 2018 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2018 1,695,008 $ 12.39 4.7 $ 12,058 Granted — — — — Exercised (831,461 ) 9.51 — 7,583 Expired (76,885 ) 23.59 — — Forfeited (99,602 ) 23.13 — — Options outstanding at September 30, 2018 687,060 13.06 4.1 5,206 Options exercisable at September 30, 2018 605,905 $ 12.17 3.8 $ 5,024 |
Schedule of Nonvested Restricted Stock Units and Performance Stock Units Activity | A summary of the Company’s Restricted Stock Units and performance stock units and related activity as of and for the nine months ended September 30, 2018 is as follows: Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2018 650,252 $ 12.68 1.0 $ 12,108 Granted 617,279 16.48 — — Vested (509,421 ) 14.18 — 8,362 Forfeited/canceled (33,866 ) 12.54 — — Unvested as of September 30, 2018 724,244 14.82 1.3 14,514 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Shares Purchased | The following table presents the number of shares purchased during the three months ended September 30, 2018 , the average price paid per share and the dollar value of shares that may yet be purchased pursuant to the Company's repurchase authorization. Period Total Number of Shares Purchased Average Price paid per Share Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs July 1 - July 31 — $ — $ 200,000 August 1 - August 31 1,359,893 20.63 171,945 September 1 - September 30 1,027,798 21.35 150,000 Total 2,387,691 $ 20.94 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax | A summary of changes in accumulated other comprehensive income (loss), net of tax, for the three and nine months ended September 30, 2018 and 2017 is as follows: Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Beginning balance, unrealized gains (losses) on cash flow hedges $ 62,449 $ 27,860 $ 44,262 $ 28,259 Other comprehensive income (loss) before reclassifications (gross) (a) 1,814 1,061 31,749 (3,062 ) Amounts (gross) reclassified out of accumulated other comprehensive income (loss) (7,662 ) (1,440 ) (19,410 ) 2,284 Ending balance, unrealized gains (losses) on cash flow hedges $ 56,601 $ 27,481 $ 56,601 $ 27,481 (a) Includes impact of accumulated other comprehensive income reclassified to Retained earnings, primarily comprised of $6,149 as a result of the adoption of ASU 2018-02. Refer to Note 1 for further discussion. |
Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) | Amounts (gross) reclassified out of accumulated other comprehensive income (loss) during the three and nine months ended September 30, 2018 and 2017 consist of the following: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (11,170 ) Interest expense $ (1,461 ) Interest expense Tax expense (benefit) 3,508 21 Net of tax $ (7,662 ) $ (1,440 ) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Reclassification Amount reclassified Income statement line item Amount reclassified Income statement line item Cash flow hedges $ (24,843 ) Interest expense $ 3,158 Interest expense Tax expense (benefit) 5,433 (874 ) Net of tax $ (19,410 ) $ 2,284 |
Investment Losses, Net (Tables)
Investment Losses, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Gains (Losses), Net | Investment gains (losses), net was comprised of the following for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Gain (loss) on sale of loans and leases $ (1,918 ) $ 29,974 $ (20,710 ) $ 16,913 Lower of cost or market adjustments (86,847 ) (84,718 ) (236,561 ) (246,522 ) Other gains, (losses and impairments), net 2,445 2,152 1,797 1,096 $ (86,320 ) $ (52,592 ) $ (255,474 ) $ (228,513 ) |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Number of reportable segments | segment | 1 | |
Stranded income tax effects reclassified from AOCI to retained earnings | $ 0 | $ 26,552 |
Retained Earnings | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Stranded income tax effects reclassified from AOCI to retained earnings | (6,149) | $ 25,113 |
Accumulated Other Comprehensive Income | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Stranded income tax effects reclassified from AOCI to retained earnings | $ 6,149 | |
SHUSA | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Ownership percentage held in the Company | 68.30% | |
Public Shareholders | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Ownership percentage held in the Company | 31.70% |
Description of Business, Basi_5
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||||||||
Finance receivables held for investment, net | $ 24,839,583 | $ 24,057,164 | $ 22,551,646 | $ 22,394,286 | $ 22,637,992 | $ 23,613,749 | $ 23,435,252 | |
Accrued interest receivable | 304,538 | 309,822 | 288,522 | 340,618 | 340,298 | 333,733 | 308,865 | |
Total assets | 42,806,955 | 41,157,188 | 40,028,740 | 39,402,799 | 38,746,090 | 39,489,340 | 39,054,690 | |
Liabilities and Equity | ||||||||
Deferred tax liabilities, net | 1,138,088 | 1,075,708 | 962,479 | 892,415 | 1,508,597 | 1,412,991 | 1,339,341 | |
Total liabilities | 35,665,740 | 34,123,553 | 33,315,208 | 32,937,097 | 32,872,988 | 33,821,920 | 33,640,228 | |
Total stockholders' equity | 7,141,215 | 7,033,635 | 6,713,532 | 6,465,702 | 5,873,102 | 5,667,420 | 5,414,462 | $ 5,238,619 |
Total liabilities and equity | $ 42,806,955 | 41,157,188 | 40,028,740 | 39,402,799 | 38,746,090 | 39,489,340 | 39,054,690 | |
Reported | ||||||||
Assets | ||||||||
Finance receivables held for investment, net | 24,096,770 | 22,587,358 | 22,427,769 | 22,667,203 | 23,634,914 | 23,444,625 | ||
Accrued interest receivable | 286,164 | 269,258 | 326,640 | 330,554 | 330,710 | 306,742 | ||
Total assets | 41,173,136 | 40,045,188 | 39,422,304 | 38,765,557 | 39,507,482 | 39,061,940 | ||
Liabilities and Equity | ||||||||
Deferred tax liabilities, net | 1,079,557 | 966,444 | 897,121 | 1,515,932 | 1,419,820 | 1,342,055 | ||
Total liabilities | 34,127,402 | 33,319,173 | 32,941,803 | 32,880,323 | 33,828,749 | 33,642,942 | ||
Total stockholders' equity | 7,045,734 | 6,726,015 | 6,480,501 | 5,885,234 | 5,678,733 | 5,418,998 | ||
Total liabilities and equity | 41,173,136 | 40,045,188 | 39,422,304 | 38,765,557 | 39,507,482 | 39,061,940 | ||
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | ||||||||
Assets | ||||||||
Finance receivables held for investment, net | (39,606) | (35,712) | (33,483) | (29,211) | (21,165) | (9,373) | ||
Accrued interest receivable | 23,658 | 19,264 | 13,978 | 9,744 | 3,023 | 2,123 | ||
Total assets | (15,948) | (16,448) | (19,505) | (19,467) | (18,142) | (7,250) | ||
Liabilities and Equity | ||||||||
Deferred tax liabilities, net | (3,849) | (3,965) | (4,706) | (7,335) | (6,829) | (2,714) | ||
Total liabilities | (3,849) | (3,965) | (4,706) | (7,335) | (6,829) | (2,714) | ||
Total stockholders' equity | (12,099) | (12,483) | (14,799) | (12,132) | (11,313) | (4,536) | ||
Total liabilities and equity | $ (15,948) | $ (16,448) | $ (19,505) | $ (19,467) | $ (18,142) | $ (7,250) |
Description of Business, Basi_6
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Interest on finance receivables and loans | $ 1,227,129 | $ 1,211,006 | $ 1,168,540 | $ 1,218,299 | $ 1,224,085 | $ 1,238,149 | $ 2,379,546 | $ 2,462,234 | $ 3,606,675 | $ 3,680,533 | $ 4,845,623 |
Provision for credit losses | 597,914 | 406,544 | 510,341 | 571,012 | 523,280 | 671,226 | 916,885 | 1,194,506 | 1,514,799 | 1,765,518 | 2,363,811 |
Income (loss) before income taxes | 296,822 | 449,146 | 302,667 | 276,448 | 337,216 | 214,178 | 751,813 | 551,394 | 1,048,635 | 827,842 | 804,009 |
Income tax expense | 64,874 | 114,120 | 58,052 | 77,879 | 79,318 | 75,287 | 172,172 | 154,605 | 237,047 | 232,484 | (368,798) |
Net income | $ 231,948 | $ 335,026 | $ 244,614 | $ 198,569 | $ 257,898 | $ 138,891 | $ 579,640 | $ 396,788 | $ 811,588 | $ 595,358 | $ 1,172,807 |
Net income (loss) per common share (basic) (in usd per share) | $ 0.64 | $ 0.93 | $ 0.68 | $ 0.55 | $ 0.72 | $ 0.39 | $ 1.61 | $ 1.10 | $ 2.25 | $ 1.66 | $ 3.26 |
Net income (loss) per common share (diluted) (in usd per share) | $ 0.64 | $ 0.93 | $ 0.68 | $ 0.55 | $ 0.72 | $ 0.39 | $ 1.60 | $ 1.10 | $ 2.24 | $ 1.65 | $ 3.26 |
Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Interest on finance receivables and loans | $ 1,156,536 | $ 1,114,137 | $ 1,185,059 | $ 1,232,252 | $ 1,209,186 | $ 2,270,673 | $ 2,441,438 | $ 3,626,497 | $ 4,755,678 | ||
Provision for credit losses | 352,575 | 458,995 | 536,447 | 520,555 | 635,013 | 811,570 | 1,155,568 | 1,692,015 | 2,254,361 | ||
Income (loss) before income taxes | 448,645 | 299,610 | 277,773 | 348,108 | 221,428 | 748,255 | 569,536 | 847,309 | 823,514 | ||
Income tax expense | 114,004 | 57,311 | 78,385 | 83,433 | 78,001 | 171,315 | 161,434 | 239,819 | (364,092) | ||
Net income | $ 334,641 | $ 242,299 | $ 199,388 | $ 264,675 | $ 143,427 | $ 576,940 | $ 408,102 | $ 607,490 | $ 1,187,606 | ||
Net income (loss) per common share (basic) (in usd per share) | $ 0.93 | $ 0.67 | $ 0.55 | $ 0.74 | $ 0.40 | $ 1.60 | $ 1.14 | $ 1.69 | $ 3.30 | ||
Net income (loss) per common share (diluted) (in usd per share) | $ 0.92 | $ 0.67 | $ 0.55 | $ 0.74 | $ 0.40 | $ 1.59 | $ 1.13 | $ 1.69 | $ 3.30 | ||
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Interest on finance receivables and loans | $ 54,470 | $ 54,403 | $ 33,240 | $ (8,167) | $ 28,963 | $ 108,873 | $ 20,796 | $ 54,036 | $ 89,945 | ||
Provision for credit losses | 53,969 | 51,346 | 34,565 | 2,725 | 36,213 | 105,315 | 38,938 | 73,503 | 109,450 | ||
Income (loss) before income taxes | 501 | 3,057 | (1,325) | (10,892) | (7,250) | 3,558 | (18,142) | (19,467) | (19,505) | ||
Income tax expense | 116 | 741 | (506) | (4,115) | (2,714) | 857 | (6,829) | (7,335) | (4,706) | ||
Net income | $ 385 | $ 2,315 | $ (819) | $ (6,777) | $ (4,536) | $ 2,700 | $ (11,314) | $ (12,132) | $ (14,799) | ||
Net income (loss) per common share (basic) (in usd per share) | $ 0 | $ 0.01 | $ 0 | $ (0.02) | $ (0.01) | $ 0.01 | $ (0.04) | $ (0.03) | $ (0.04) | ||
Net income (loss) per common share (diluted) (in usd per share) | $ 0.01 | $ 0.01 | $ 0 | $ (0.02) | $ (0.01) | $ 0.01 | $ (0.03) | $ (0.04) | $ (0.04) |
Description of Business, Basi_7
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Cash Flows Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net cash provided by operating activities | $ 1,884,352 | $ 1,490,850 | $ 3,512,239 | $ 2,233,577 | $ 5,085,633 | $ 3,710,379 | $ 3,842,573 |
Net cash used in investing activities | (1,577,174) | (1,192,128) | (4,872,968) | (2,370,698) | $ (8,121,291) | (2,926,934) | (3,491,559) |
Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net cash provided by operating activities | 1,835,235 | 1,464,010 | 3,413,047 | 2,215,804 | 3,666,086 | 3,766,605 | |
Net cash used in investing activities | (1,528,057) | (1,165,288) | (4,773,776) | (2,352,925) | (2,882,641) | (3,415,591) | |
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Net cash provided by operating activities | 49,117 | 26,840 | 99,192 | 17,773 | 44,293 | 75,968 | |
Net cash used in investing activities | $ (49,117) | $ (26,840) | $ (99,192) | $ (17,773) | $ (44,293) | $ (75,968) |
Description of Business, Basi_8
Description of Business, Basis of Presentation, and Significant Accounting Policies and Practices - Impact of Error Correction on Credit Loss Allowance and Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
TDR - Unpaid principal balance | $ 6,098,280 | $ 6,095,878 | $ 6,314,035 | $ 6,301,158 | $ 5,890,295 | $ 5,789,641 | |
TDR - Impairment | $ 1,664,222 | $ 1,716,132 | $ 1,804,132 | $ 1,822,514 | $ 1,704,496 | $ 1,612,522 | |
TDR allowance ratio (as a percent) | 27.30% | 28.20% | 28.60% | 28.90% | 29.00% | 27.80% | |
Nonaccrual loans TDRs | $ 597,155 | $ 564,933 | $ 806,938 | ||||
Principal, 30-59 days past due | $ 2,978,462 | 2,651,817 | 2,333,445 | 2,958,195 | $ 2,694,330 | $ 2,843,387 | $ 2,444,723 |
Delinquent principal over 59 days | 1,562,486 | 1,234,502 | 1,162,311 | 1,645,789 | 1,541,123 | 1,510,407 | 1,225,687 |
Total delinquent principal | $ 4,540,948 | 3,886,319 | 3,495,756 | 4,603,984 | 4,235,453 | 4,353,794 | 3,670,410 |
Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
TDR - Unpaid principal balance | 5,958,564 | 5,998,768 | 6,261,894 | 6,276,659 | 5,880,317 | 5,788,390 | |
TDR - Impairment | $ 1,496,580 | $ 1,595,465 | $ 1,731,320 | $ 1,782,114 | $ 1,686,159 | $ 1,604,489 | |
TDR allowance ratio (as a percent) | 25.10% | 26.60% | 27.60% | 28.40% | 28.70% | 27.70% | |
Nonaccrual loans TDRs | $ 1,554,860 | $ 1,346,148 | $ 1,390,373 | ||||
Principal, 30-59 days past due | 2,535,166 | 2,238,425 | 2,827,678 | $ 2,580,226 | $ 2,709,606 | $ 2,345,995 | |
Delinquent principal over 59 days | 1,151,410 | 1,089,648 | 1,544,583 | 1,464,543 | 1,417,461 | 1,153,369 | |
Total delinquent principal | 3,686,576 | 3,328,073 | 4,372,261 | 4,044,769 | 4,127,067 | 3,499,364 | |
Correction on Reporting of Required Minimum Payment Threshold and Treatment in Nonaccrual Designation and Cost Recovery Basis of Loans | Corrections | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
TDR - Unpaid principal balance | 139,716 | 97,110 | 52,141 | 24,499 | 9,978 | 1,251 | |
TDR - Impairment | $ 167,642 | $ 120,667 | $ 72,812 | $ 40,400 | $ 18,337 | $ 8,033 | |
TDR allowance ratio (as a percent) | 2.20% | 1.60% | 1.00% | 0.50% | 0.30% | 0.10% | |
Nonaccrual loans TDRs | $ (957,705) | $ (781,215) | $ (583,435) | ||||
Principal, 30-59 days past due | 116,651 | 95,020 | 130,517 | $ 114,104 | $ 133,781 | $ 98,728 | |
Delinquent principal over 59 days | 83,092 | 72,663 | 101,206 | 76,580 | 92,946 | 72,318 | |
Total delinquent principal | $ 199,743 | $ 167,683 | $ 231,723 | $ 190,684 | $ 226,727 | $ 171,046 |
Finance Receivables (As Revis_3
Finance Receivables (As Revised) - Summary of Financing Receivables Held for Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Purchased receivables-Credit Impaired | $ 20,673 | $ 20,673 | $ 27,839 | |||||
Capital lease receivables | 16,650 | 16,650 | 17,339 | |||||
Finance receivables held for investment, net | 24,839,583 | 24,839,583 | $ 22,637,992 | $ 24,057,164 | $ 22,551,646 | 22,394,286 | $ 23,613,749 | $ 23,435,252 |
Purchase of finance receivables | 183,824 | $ 228,843 | ||||||
Purchased receivables portfolios acquired with deteriorated credit quality: | ||||||||
Outstanding balance | 32,642 | 32,642 | 43,474 | |||||
Outstanding recorded investment, net of impairment | 20,833 | 20,833 | 28,069 | |||||
Recurring | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Retail installment contracts acquired individually | 14,138 | 14,138 | 22,124 | |||||
Retail Installment Contracts Acquired Individually | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 24,784,966 | 24,784,966 | 22,329,026 | |||||
Purchase of finance receivables | 67,249 | |||||||
Financing receivable, net | 74,086 | 74,086 | ||||||
Retail Installment Contracts Acquired Individually | Non-TDR | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 20,629,462 | 20,629,462 | 17,888,214 | |||||
Retail Installment Contracts Acquired Individually | Non-TDR | Unpaid principal balance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 22,483,913 | 22,483,913 | 19,679,082 | |||||
Retail Installment Contracts Acquired Individually | Non-TDR | Credit loss allowance - specific | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Retail Installment Contracts Acquired Individually | Non-TDR | Credit loss allowance - collective | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (1,740,862) | (1,740,862) | (1,540,315) | |||||
Retail Installment Contracts Acquired Individually | Non-TDR | Discount | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (191,421) | (191,421) | (309,191) | |||||
Retail Installment Contracts Acquired Individually | Non-TDR | Capitalized origination costs and fees | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 77,832 | 77,832 | 58,638 | |||||
Retail Installment Contracts Acquired Individually | TDR | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 4,155,504 | 4,155,504 | 4,440,812 | |||||
Retail Installment Contracts Acquired Individually | TDR | Unpaid principal balance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 5,759,094 | 5,759,094 | 6,314,035 | |||||
Retail Installment Contracts Acquired Individually | TDR | Credit loss allowance - specific | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (1,559,808) | (1,559,808) | (1,804,132) | |||||
Retail Installment Contracts Acquired Individually | TDR | Credit loss allowance - collective | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Retail Installment Contracts Acquired Individually | TDR | Discount | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (48,787) | (48,787) | (74,832) | |||||
Retail Installment Contracts Acquired Individually | TDR | Capitalized origination costs and fees | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 5,005 | 5,005 | 5,741 | |||||
Receivables from Dealers | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 14,787 | 14,787 | 15,623 | |||||
Receivables from Dealers | Unpaid principal balance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 14,942 | 14,942 | 15,787 | |||||
Receivables from Dealers | Credit loss allowance - specific | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Receivables from Dealers | Credit loss allowance - collective | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (155) | (155) | (164) | |||||
Receivables from Dealers | Discount | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Receivables from Dealers | Capitalized origination costs and fees | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Personal Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 2,507 | 2,507 | 4,459 | |||||
Personal Loans | Unpaid principal balance | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 3,266 | 3,266 | 6,887 | |||||
Personal Loans | Credit loss allowance - specific | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | 0 | |||||
Personal Loans | Credit loss allowance - collective | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | (897) | (897) | (2,565) | |||||
Personal Loans | Discount | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | 0 | 0 | (1) | |||||
Personal Loans | Capitalized origination costs and fees | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables held for investment, net | $ 138 | $ 138 | $ 138 |
Finance Receivables (As Revis_4
Finance Receivables (As Revised) - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule Of Financing Receivables [Line Items] | |||||
Purchases of portfolios of finance receivables held for investment | $ 183,824,000 | $ 228,843,000 | |||
Loans classified as non-performing, period for classification | 60 days | ||||
Texas | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 16.00% | 16.00% | |||
Florida | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 11.00% | 11.00% | |||
California | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 9.00% | 9.00% | |||
Georgia | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 6.00% | 6.00% | |||
Other States (less than 5%) | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Retail installment contracts held for investment (as a percent) | 5.00% | 5.00% | |||
Virginia | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Percentage of remaining receivable from dealers held for investment | 63.00% | 63.00% | |||
New York | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Percentage of remaining receivable from dealers held for investment | 27.00% | 27.00% | |||
Missouri | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Percentage of remaining receivable from dealers held for investment | 10.00% | 10.00% | |||
Retail Installment Contracts | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Loans classified as non-performing, period for classification | 60 days | ||||
Retail Installment Contracts | Unpaid Principal Balance | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivables recognized in period | $ 0 | $ 0 | $ 115,959,000 | 226,613,000 | |
Chrysler Capital Loans | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Purchases of portfolios of finance receivables held for investment | 6,452,924,000 | $ 5,168,089,000 | |||
Chrysler Capital Loans | Retail Installment Contracts | Automobile Loan | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivable, net | 8,684,860,000 | $ 8,684,860,000 | $ 8,249,803,000 | ||
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 48.00% | 46.00% | |||
Chrysler Capital Loans | Credit Concentration Risk | Accounts Receivable | Automobile Loan | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Concentration risk percentage | 35.00% | 37.00% | |||
Fleet Contracts | |||||
Schedule Of Financing Receivables [Line Items] | |||||
Financing receivable, net | $ 524,772,000 | $ 524,772,000 | $ 641,158,000 |
Finance Receivables (As Revis_5
Finance Receivables (As Revised) - Changes in Accretable Yield on Purchased Receivables Portfolios Credit Impaired (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance — beginning of period | $ 18,368 | $ 87,994 | $ 19,464 | $ 107,041 |
Accretion of accretable yield | (1,974) | (5,223) | (7,059) | (26,670) |
Disposals/transfers | 0 | (62,183) | 0 | (62,183) |
Reclassifications from (to) nonaccretable difference | 2,111 | 1,648 | 6,100 | 4,048 |
Balance — end of period | $ 18,505 | $ 22,236 | $ 18,505 | $ 22,236 |
Finance Receivables (As Revis_6
Finance Receivables (As Revised) - Schedule of Carrying Values of Finance Receivables Held for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | $ 933,380 | $ 2,210,421 |
Retail installment contracts acquired individually | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | 0 | 1,148,332 |
Personal loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables held for sale, net | $ 933,380 | $ 1,062,089 |
Finance Receivables (As Revis_7
Finance Receivables (As Revised) - Schedule of Sales of Retail Installment Contracts and Charged-off Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Receivables [Abstract] | ||||
Sales of retail installment contracts to third parties | $ 0 | $ 0 | $ 0 | $ 260,568 |
Sale of retail installment contracts to affiliates | 274,609 | 1,347,010 | 2,905,922 | 2,583,341 |
Proceeds from sales of charged-off assets to third parties | $ 3,845 | $ 27,954 | $ 38,720 | $ 76,746 |
Finance Receivables (As Revis_8
Finance Receivables (As Revised) - Schedule of Servicing of Retail Installment Contracts (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Serviced balance of retail installment contracts and leases | $ 4,294,459 | $ 5,771,085 |
Leases - Summary of Leased Vehi
Leases - Summary of Leased Vehicles (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Leased vehicles | $ 17,635,911 | $ 14,285,769 |
Less: accumulated depreciation | (3,249,421) | (3,110,167) |
Depreciated net capitalized cost | 14,386,490 | 11,175,602 |
Manufacturer subvention payments, net of accretion | (1,262,906) | (1,042,477) |
Origination fees and other costs | 60,209 | 27,202 |
Net book value | $ 13,183,793 | $ 10,160,327 |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments Due to Lessor under Operating Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Leases [Abstract] | |
Remainder of 2018 | $ 603,824 |
2,019 | 2,033,861 |
2,020 | 1,358,993 |
2,021 | 375,454 |
2,022 | 13,027 |
Thereafter | 0 |
Total | $ 4,385,159 |
Leases - Summary of Capital Lea
Leases - Summary of Capital Lease Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Gross investment in capital leases | $ 24,214 | $ 27,234 |
Origination fees and other | 164 | 124 |
Less unearned income | (4,264) | (4,377) |
Net investment in capital leases before allowance | 20,114 | 22,981 |
Less: allowance for lease losses | (3,464) | (5,642) |
Net investment in capital leases | $ 16,650 | $ 17,339 |
Leases - Future Minimum Renta_2
Leases - Future Minimum Rental Receivable under Capital Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Leases [Abstract] | |
Remainder of 2018 | $ 2,261 |
2,019 | 7,322 |
2,020 | 5,944 |
2,021 | 4,383 |
2,022 | 3,386 |
Thereafter | 918 |
Total | $ 24,214 |
Credit Loss Allowance and Cre_3
Credit Loss Allowance and Credit Quality (As Revised) - Activity in Loan Loss Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Retail Installment Contracts Acquired Individually | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Write-down of loans for which a bankruptcy notice was received | $ 5,000 | $ 18,000 | $ 19,000 | $ 66,000 |
Retail Installment Contracts Acquired Individually | Non-TDR | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 1,651,714 | 1,771,309 | 1,540,315 | 1,799,760 |
Provision for credit losses | 380,496 | 140,315 | 930,595 | 671,471 |
Charge-offs | (701,393) | (711,495) | (1,962,220) | (2,105,835) |
Recoveries | 410,045 | 399,522 | 1,232,172 | 1,234,255 |
Balance — end of period | 1,740,862 | 1,599,651 | 1,740,862 | 1,599,651 |
Retail Installment Contracts Acquired Individually | TDR | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 1,664,222 | 1,704,496 | 1,804,132 | 1,611,295 |
Provision for credit losses | 217,447 | 429,677 | 585,771 | 1,084,926 |
Charge-offs | (524,429) | (507,066) | (1,484,482) | (1,459,239) |
Recoveries | 202,568 | 195,407 | 654,387 | 585,532 |
Balance — end of period | 1,559,808 | 1,822,514 | 1,559,808 | 1,822,514 |
Receivables from Dealers | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 158 | 713 | 164 | 724 |
Provision for credit losses | (3) | (546) | (9) | (557) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance — end of period | 155 | 167 | 155 | 167 |
Personal Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 1,116 | 4,362 | 2,565 | 0 |
Provision for credit losses | (135) | 1,134 | (320) | 10,275 |
Charge-offs | (414) | (1,976) | (2,177) | (7,194) |
Recoveries | 330 | 205 | 829 | 644 |
Balance — end of period | 897 | 3,725 | 897 | 3,725 |
Finance Leases Portfolio Segment | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance — beginning of period | 3,582 | 6,367 | 5,642 | 9,988 |
Provision for credit losses | 109 | 432 | (1,239) | (597) |
Charge-offs | (1,614) | (2,655) | (4,755) | (9,415) |
Recoveries | 1,387 | 1,462 | 3,816 | 5,630 |
Balance — end of period | $ 3,464 | $ 5,606 | $ 3,464 | $ 5,606 |
Credit Loss Allowance and Cre_4
Credit Loss Allowance and Credit Quality (As Revised) - Delinquencies, Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 60 days | |
Loan origination, required minimum payment, percentage of scheduled payment | 90.00% | |
Receivables from dealers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, nonperforming loans, period for classification | 90 days | |
Financing receivable, recorded investment, past due | $ 0 | $ 0 |
Personal loans | Consumer Portfolio Segment | Unfunded Loan Commitment | Unpaid Principal Balance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, 90 days past due and still accruing | 125,287,000 | 130,034,000 |
Retail installment contracts held for sale | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | $ 0 | $ 1,701,000 |
Credit Loss Allowance and Cre_5
Credit Loss Allowance and Credit Quality (As Revised) - Summary of Delinquencies (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Principal, 30-59 days past due | $ 2,978,462 | $ 2,651,817 | $ 2,333,445 | $ 2,958,195 | $ 2,694,330 | $ 2,843,387 | $ 2,444,723 |
Delinquent principal over 59 days | 1,562,486 | 1,234,502 | 1,162,311 | 1,645,789 | 1,541,123 | 1,510,407 | 1,225,687 |
Total delinquent principal | 4,540,948 | $ 3,886,319 | $ 3,495,756 | 4,603,984 | $ 4,235,453 | $ 4,353,794 | $ 3,670,410 |
Loans Acquired Individually | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Principal, 30-59 days past due | 2,975,844 | 2,953,203 | |||||
Delinquent principal over 59 days | 1,560,736 | 1,642,934 | |||||
Total delinquent principal | 4,536,580 | 4,596,137 | |||||
Purchased Receivables Portfolios | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Principal, 30-59 days past due | 2,618 | 4,992 | |||||
Delinquent principal over 59 days | 1,750 | 2,855 | |||||
Total delinquent principal | $ 4,368 | $ 7,847 | |||||
Retail Installment Contracts | |||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||||
Period for interest accrual | 60 days |
Credit Loss Allowance and Cre_6
Credit Loss Allowance and Credit Quality (As Revised) - Retail Installment Contracts Held for Investment on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
TDR | ||
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual principal | $ 725,202 | |
Retail Installment Contracts Acquired Individually, Held for Investment | ||
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual principal | $ 1,426,219 | $ 1,498,194 |
Percent | 5.00% | 5.80% |
Retail Installment Contracts Acquired Individually, Held for Investment | Non-TDR | ||
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual principal | $ 701,017 | $ 691,256 |
Percent | 2.50% | 2.70% |
Retail Installment Contracts Acquired Individually, Held for Investment | TDR | ||
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual principal | $ 806,938 | |
Percent | 2.60% | 3.10% |
Credit Loss Allowance and Cre_7
Credit Loss Allowance and Credit Quality (As Revised) - Credit Risk Profile (Details) - Retail Installment Contracts Held for Investment | Sep. 30, 2018 | Dec. 31, 2017 |
Commercial Portfolio Segment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 1.90% | 2.50% |
Consumer Portfolio Segment | No-FICOs | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 11.20% | 11.20% |
Consumer Portfolio Segment | FICO Band Less Than 540 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 20.40% | 21.90% |
Consumer Portfolio Segment | FICO Band 540-599 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 32.70% | 32.00% |
Consumer Portfolio Segment | FICO Band 600-639 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 18.00% | 17.30% |
Consumer Portfolio Segment | FICO Band Greater Than 640 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net, percentage | 15.80% | 15.10% |
Credit Loss Allowance and Cre_8
Credit Loss Allowance and Credit Quality (As Revised) - Commercial Loan Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fleet Contracts | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | $ 524,772 | $ 641,158 |
Fleet Contracts | Total (Unpaid principal balance) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 14,019 | 18,315 |
Fleet Contracts | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 9,290 | 12,276 |
Fleet Contracts | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 4,391 | 5,324 |
Fleet Contracts | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 338 | 715 |
Fleet Contracts | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 0 | 0 |
Fleet Contracts | Loss | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 0 | 0 |
Receivables From Dealers | Total (Unpaid principal balance) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 14,942 | 15,787 |
Receivables From Dealers | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 14,925 | 14,130 |
Receivables From Dealers | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 17 | 1,657 |
Receivables From Dealers | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 0 | 0 |
Receivables From Dealers | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | 0 | 0 |
Receivables From Dealers | Loss | ||
Financing Receivable Recorded Investment [Line Items] | ||
Financing receivable, net | $ 0 | $ 0 |
Credit Loss Allowance and Cre_9
Credit Loss Allowance and Credit Quality (As Revised) - Troubled Debt Restructurings, Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Retail Installment Contracts Acquired Individually | ||
Financing Receivable, Modifications [Line Items] | ||
TDRs, deferral period (or more) | 90 days | |
Receivables From Dealers | ||
Financing Receivable, Modifications [Line Items] | ||
Total TDR principal | $ 0 | $ 0 |
Credit Loss Allowance and Cr_10
Credit Loss Allowance and Credit Quality (As Revised) - Summary of TDRs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | |
Financing Receivable, Modifications [Line Items] | |||||||
Impairment | $ (1,804,132) | $ (1,664,222) | $ (1,716,132) | $ (1,822,514) | $ (1,704,496) | $ (1,612,522) | |
Retail Installment Contracts | |||||||
Financing Receivable, Modifications [Line Items] | |||||||
Outstanding recorded investment | $ 5,746,081 | 6,328,159 | |||||
Impairment | (1,559,808) | (1,804,132) | |||||
Outstanding recorded investment, net of impairment | 4,186,273 | 4,524,027 | |||||
Retail Installment Contracts | Collateral Dependent | |||||||
Financing Receivable, Modifications [Line Items] | |||||||
Outstanding recorded investment | 84,600 | 64,700 | |||||
TDR write down | $ 34,300 | $ 29,200 |
Credit Loss Allowance and Cr_11
Credit Loss Allowance and Credit Quality (As Revised) - Delinquent TDRs (Details) - Retail Installment Contracts - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Troubled Debt Restructuring Debtor Current Period [Line Items] | ||
Principal, 30-59 days past due | $ 1,326,903 | $ 1,422,101 |
Delinquent principal over 59 days | 804,161 | 893,708 |
Total delinquent TDR principal | $ 2,131,064 | $ 2,315,809 |
Credit Loss Allowance and Cr_12
Credit Loss Allowance and Credit Quality (As Revised) - Average Recorded Investment and Income Recognized on TDR Loans (Details) - Retail Installment Contracts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Modifications [Line Items] | ||||
Average outstanding recorded investment in TDRs | $ 5,968,689 | $ 6,167,737 | $ 6,167,812 | $ 5,964,045 |
Interest income recognized | $ 257,168 | $ 258,882 | $ 808,230 | $ 765,724 |
Credit Loss Allowance and Cr_13
Credit Loss Allowance and Credit Quality (As Revised) - Financial Effects of TDRs (Details) - Retail Installment Contracts $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Outstanding recorded investment before TDR | $ 471,482 | $ 1,123,080 | $ 1,779,855 | $ 2,778,407 |
Outstanding recorded investment after TDR | $ 472,392 | $ 1,122,450 | $ 1,780,494 | $ 2,776,006 |
Number of contracts | contract | 28,004 | 66,001 | 105,643 | 160,098 |
Credit Loss Allowance and Cr_14
Credit Loss Allowance and Credit Quality (As Revised) - Defaults in Loan Modifications Accounted for as TDRs (Details) - Retail Installment Contracts $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | Sep. 30, 2018USD ($)contract | Sep. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Recorded investment in TDRs that subsequently defaulted | $ | $ 163,483 | $ 197,953 | $ 503,309 | $ 600,117 |
Number of contracts | contract | 9,924 | 11,219 | 30,171 | 33,735 |
Debt - Schedule of Credit Facil
Debt - Schedule of Credit Facilities (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Nov. 07, 2018 | Oct. 31, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | ||||
Utilized Balance | $ 5,632,053,000 | $ 4,848,316,000 | ||
Unsecured Debt | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 3,000,000,000 | |||
Total revolving credit facilities | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 8,632,053,000 | 8,598,316,000 | ||
Committed Amount | 16,673,475,000 | 18,444,483,000 | ||
Assets Pledged | 7,935,017,000 | 6,703,767,000 | ||
Restricted Cash Pledged | 20,571,000 | 132,024,000 | ||
Total facilities with third parties | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 5,632,053,000 | 4,848,316,000 | ||
Committed Amount | 10,173,475,000 | 10,694,483,000 | ||
Assets Pledged | 7,935,017,000 | 6,703,767,000 | ||
Restricted Cash Pledged | $ 20,571,000 | 132,024,000 | ||
Total facilities with third parties | Securitized Notes Payable Retained by the Company | ||||
Line of Credit Facility [Line Items] | ||||
Debt term | 1 year | |||
Warehouse line, due August 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | $ 75,984,000 | 2,044,843,000 | ||
Committed Amount | $ 500,000,000 | $ 3,900,000,000 | ||
Effective Rate | 6.41% | 2.96% | ||
Assets Pledged | $ 108,816,000 | $ 2,929,890,000 | ||
Restricted Cash Pledged | 2,357,000 | 53,639,000 | ||
Warehouse line, due Various | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 352,945,000 | 339,145,000 | ||
Committed Amount | $ 1,250,000,000 | $ 1,250,000,000 | ||
Effective Rate | 4.27% | 2.53% | ||
Assets Pledged | $ 525,663,000 | $ 461,353,000 | ||
Restricted Cash Pledged | 0 | 12,645,000 | ||
Warehouse line, due August 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 3,370,243,000 | |||
Committed Amount | $ 4,150,000,000 | |||
Effective Rate | 3.20% | |||
Assets Pledged | $ 4,614,029,000 | |||
Restricted Cash Pledged | 4,464,000 | |||
Warehouse line, due August 2020 | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Committed Amount | $ 4,400,000,000 | |||
Warehouse line, due October 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 244,277,000 | 226,577,000 | ||
Committed Amount | $ 1,800,000,000 | $ 1,800,000,000 | ||
Effective Rate | 5.51% | 4.95% | ||
Assets Pledged | $ 342,305,000 | $ 311,336,000 | ||
Restricted Cash Pledged | 15,000 | 6,772,000 | ||
Warehouse line, due October 2019 | Subsequent Event | ||||
Line of Credit Facility [Line Items] | ||||
Committed Amount | $ 2,050,000,000 | |||
Repurchase facility, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 81,810,000 | |||
Committed Amount | $ 81,810,000 | |||
Effective Rate | 3.99% | |||
Assets Pledged | $ 121,070,000 | |||
Restricted Cash Pledged | 12,951,000 | |||
Repurchase facility, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 50,720,000 | |||
Committed Amount | $ 51,770,000 | |||
Effective Rate | 3.61% | |||
Assets Pledged | $ 63,600,000 | |||
Restricted Cash Pledged | 0 | |||
Repurchase facility, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 139,190,000 | |||
Committed Amount | $ 139,895,000 | |||
Effective Rate | 3.30% | |||
Assets Pledged | $ 173,980,000 | |||
Restricted Cash Pledged | 0 | |||
Warehouse line, due November 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 963,599,000 | 403,999,000 | ||
Committed Amount | $ 1,000,000,000 | $ 1,000,000,000 | ||
Effective Rate | 3.05% | 2.66% | ||
Assets Pledged | $ 1,356,132,000 | $ 546,782,000 | ||
Restricted Cash Pledged | 1,000 | 14,729,000 | ||
Warehouse line, due October 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 28,265,000 | 81,865,000 | ||
Committed Amount | $ 400,000,000 | $ 400,000,000 | ||
Effective Rate | 8.63% | 4.09% | ||
Assets Pledged | $ 39,928,000 | $ 114,021,000 | ||
Restricted Cash Pledged | 4,000 | 3,057,000 | ||
Warehouse line, due November 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 325,020,000 | 435,220,000 | ||
Committed Amount | $ 500,000,000 | $ 500,000,000 | ||
Effective Rate | 3.08% | 1.92% | ||
Assets Pledged | $ 370,346,000 | $ 521,365,000 | ||
Restricted Cash Pledged | 464,000 | 16,866,000 | ||
Warehouse line, due October 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 0 | 235,700,000 | ||
Committed Amount | $ 300,000,000 | $ 300,000,000 | ||
Effective Rate | 2.39% | 2.84% | ||
Assets Pledged | $ 219,148,000 | $ 289,634,000 | ||
Restricted Cash Pledged | 315,000 | 10,474,000 | ||
Warehouse line, due January 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 336,484,000 | |||
Committed Amount | $ 500,000,000 | |||
Effective Rate | 2.87% | |||
Assets Pledged | $ 473,208,000 | |||
Restricted Cash Pledged | 0 | |||
Warehouse line, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 0 | |||
Committed Amount | $ 300,000,000 | |||
Effective Rate | 1.49% | |||
Assets Pledged | $ 0 | |||
Restricted Cash Pledged | 0 | |||
Repurchase facility, due on Various | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 325,775,000 | |||
Committed Amount | $ 325,775,000 | |||
Effective Rate | 3.24% | |||
Assets Pledged | $ 474,188,000 | |||
Restricted Cash Pledged | 13,842,000 | |||
Repurchase facility, due April 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 202,311,000 | |||
Committed Amount | $ 202,311,000 | |||
Effective Rate | 2.67% | |||
Assets Pledged | $ 264,120,000 | |||
Restricted Cash Pledged | 0 | |||
Repurchase facility, due March 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 147,500,000 | |||
Committed Amount | $ 147,500,000 | |||
Effective Rate | 3.91% | |||
Assets Pledged | $ 222,108,000 | |||
Restricted Cash Pledged | 0 | |||
Repurchase facility, due March 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 68,897,000 | |||
Committed Amount | $ 68,897,000 | |||
Effective Rate | 3.04% | |||
Assets Pledged | $ 95,762,000 | |||
Restricted Cash Pledged | 0 | |||
Total facilities with Santander and related subsidiaries | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 3,000,000,000 | 3,750,000,000 | ||
Committed Amount | 6,500,000,000 | 7,750,000,000 | ||
Assets Pledged | 0 | 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due December 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 250,000,000 | 250,000,000 | ||
Committed Amount | $ 250,000,000 | $ 250,000,000 | ||
Effective Rate | 3.70% | 3.70% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due December 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 250,000,000 | 250,000,000 | ||
Committed Amount | $ 250,000,000 | $ 250,000,000 | ||
Effective Rate | 3.95% | 3.95% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due March 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 300,000,000 | 300,000,000 | ||
Committed Amount | $ 300,000,000 | $ 300,000,000 | ||
Effective Rate | 3.66% | 2.67% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due October 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 400,000,000 | 400,000,000 | ||
Committed Amount | $ 400,000,000 | $ 400,000,000 | ||
Effective Rate | 3.10% | 3.10% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due May 2020 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 500,000,000 | 500,000,000 | ||
Committed Amount | $ 500,000,000 | $ 500,000,000 | ||
Effective Rate | 3.49% | 3.49% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Promissory Note, due March 2022 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 650,000,000 | 650,000,000 | ||
Committed Amount | $ 650,000,000 | $ 650,000,000 | ||
Effective Rate | 4.20% | 4.20% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Fair value hedge adjustment | 3,529,000 | 4,223,000 | ||
Promissory Note, due August 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 650,000,000 | 650,000,000 | ||
Committed Amount | $ 650,000,000 | $ 650,000,000 | ||
Effective Rate | 3.44% | 3.44% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | 0 | 0 | ||
Line of credit, due July 2021 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 0 | |||
Committed Amount | $ 500,000,000 | |||
Effective Rate | 4.34% | |||
Assets Pledged | $ 0 | |||
Restricted Cash Pledged | 0 | |||
Line of credit, due March 2019 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 0 | 0 | ||
Committed Amount | $ 3,000,000,000 | $ 3,000,000,000 | ||
Effective Rate | 4.97% | 3.94% | ||
Assets Pledged | $ 0 | $ 0 | ||
Restricted Cash Pledged | $ 0 | 0 | ||
Line of credit, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 0 | |||
Committed Amount | $ 1,000,000,000 | |||
Effective Rate | 3.09% | |||
Assets Pledged | $ 0 | |||
Restricted Cash Pledged | 0 | |||
Line of credit, due December 2018 | ||||
Line of Credit Facility [Line Items] | ||||
Utilized Balance | 750,000,000 | |||
Committed Amount | $ 750,000,000 | |||
Effective Rate | 1.33% | |||
Assets Pledged | $ 0 | |||
Restricted Cash Pledged | $ 0 |
Debt - Lines of Credit (Details
Debt - Lines of Credit (Details) - USD ($) | Sep. 30, 2018 | Jul. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||
Line of credit | $ 5,632,053,000 | $ 4,848,316,000 | |
Total facilities with Santander and related subsidiaries | Retained residuals | |||
Line of Credit Facility [Line Items] | |||
Committed amount | $ 500,000,000 | ||
Unsecured Debt | |||
Line of Credit Facility [Line Items] | |||
Line of credit | $ 3,000,000,000 |
Debt - Promissory Notes (Detail
Debt - Promissory Notes (Details) - Revolving credit facilities - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Committed amount | $ 16,673,475,000 | $ 18,444,483,000 |
Secured debt | Total facilities with Santander and related subsidiaries | ||
Debt Instrument [Line Items] | ||
Committed amount | $ 3,000,000,000 |
Debt - Summary of Secured Struc
Debt - Summary of Secured Structured Financings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Balance | $ 24,867,297 | $ 22,557,895 |
Secured Structured Financings | ||
Debt Instrument [Line Items] | ||
Balance | 24,867,297 | 22,557,895 |
Initial Note Amounts Issued | 52,004,795 | 49,078,924 |
Collateral | 32,367,566 | 29,106,279 |
Restricted Cash | 1,563,690 | 1,847,759 |
Secured Structured Financings | Public securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 19,647,765 | 14,993,258 |
Initial Note Amounts Issued | 40,552,552 | 36,800,642 |
Collateral | 25,350,947 | 19,873,621 |
Restricted Cash | 1,526,329 | 1,470,459 |
Secured Structured Financings | 2013 Securitization | ||
Debt Instrument [Line Items] | ||
Balance | 418,806 | |
Initial Note Amounts Issued | 4,239,700 | |
Collateral | 544,948 | |
Restricted Cash | $ 125,696 | |
Secured Structured Financings | 2013 Securitization | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.89% | |
Secured Structured Financings | 2013 Securitization | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.59% | |
Secured Structured Financings | 2014 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | 434,595 | $ 1,150,422 |
Initial Note Amounts Issued | 3,541,020 | 6,391,020 |
Collateral | 552,276 | 1,362,814 |
Restricted Cash | $ 103,712 | $ 210,937 |
Secured Structured Financings | 2014 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.16% | 1.16% |
Secured Structured Financings | 2014 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.63% | 1.72% |
Secured Structured Financings | 2015 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,922,671 | $ 2,484,051 |
Initial Note Amounts Issued | 9,054,732 | 9,171,332 |
Collateral | 2,266,085 | 3,465,671 |
Restricted Cash | $ 297,123 | $ 366,062 |
Secured Structured Financings | 2015 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.33% | 1.33% |
Secured Structured Financings | 2015 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.29% | 2.29% |
Secured Structured Financings | 2016 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 2,448,623 | $ 3,596,822 |
Initial Note Amounts Issued | 7,462,790 | 7,462,790 |
Collateral | 3,243,607 | 4,798,807 |
Restricted Cash | $ 298,765 | $ 344,899 |
Secured Structured Financings | 2016 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.63% | 1.63% |
Secured Structured Financings | 2016 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.80% | 2.80% |
Secured Structured Financings | 2017 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 4,900,963 | $ 7,343,157 |
Initial Note Amounts Issued | 9,296,570 | 9,535,800 |
Collateral | 6,888,692 | 9,701,381 |
Restricted Cash | $ 378,480 | $ 422,865 |
Secured Structured Financings | 2017 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.35% | 2.01% |
Secured Structured Financings | 2017 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.52% | 2.52% |
Secured Structured Financings | 2018 Securitizations | ||
Debt Instrument [Line Items] | ||
Balance | $ 9,940,913 | |
Initial Note Amounts Issued | 11,197,440 | |
Collateral | 12,400,287 | |
Restricted Cash | $ 448,249 | |
Secured Structured Financings | 2018 Securitizations | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.41% | |
Secured Structured Financings | 2018 Securitizations | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 3.53% | |
Secured Structured Financings | Privately issued amortizing notes | ||
Debt Instrument [Line Items] | ||
Balance | $ 5,219,532 | $ 7,564,637 |
Initial Note Amounts Issued | 11,452,243 | 12,278,282 |
Collateral | 7,016,619 | 9,232,658 |
Restricted Cash | 37,361 | 377,300 |
Secured Structured Financings | 2011 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | 105,182 | 281,946 |
Initial Note Amounts Issued | $ 1,700,000 | $ 1,700,000 |
Initial Weighted Average Interest Rate | 1.46% | 1.46% |
Collateral | $ 230,698 | $ 398,051 |
Restricted Cash | 92 | 20,356 |
Secured Structured Financings | 2013 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | 1,031,720 | 2,292,279 |
Initial Note Amounts Issued | 2,044,054 | 2,044,054 |
Collateral | 2,203,204 | 3,719,148 |
Restricted Cash | $ 4,634 | $ 155,066 |
Secured Structured Financings | 2013 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.28% | 1.28% |
Secured Structured Financings | 2013 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.38% | 1.38% |
Secured Structured Financings | 2014 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 117,730 | |
Initial Note Amounts Issued | 1,538,087 | |
Collateral | 231,997 | |
Restricted Cash | $ 9,552 | |
Secured Structured Financings | 2014 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.05% | |
Secured Structured Financings | 2014 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.40% | |
Secured Structured Financings | 2015 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,238,515 | $ 2,009,627 |
Initial Note Amounts Issued | 2,058,187 | 2,305,062 |
Collateral | 406,236 | 988,247 |
Restricted Cash | $ 2,840 | $ 55,451 |
Secured Structured Financings | 2015 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 0.88% | 0.88% |
Secured Structured Financings | 2015 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.80% | 4.09% |
Secured Structured Financings | 2016 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 596,893 | $ 1,489,464 |
Initial Note Amounts Issued | 3,050,000 | 3,050,000 |
Collateral | 1,115,725 | 2,147,988 |
Restricted Cash | $ 2,244 | $ 89,460 |
Secured Structured Financings | 2016 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.55% | 1.55% |
Secured Structured Financings | 2016 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.86% | 2.86% |
Secured Structured Financings | 2017 Private issuances | ||
Debt Instrument [Line Items] | ||
Balance | $ 840,138 | $ 1,373,591 |
Initial Note Amounts Issued | 1,600,000 | 1,641,079 |
Collateral | 1,190,795 | 1,747,227 |
Restricted Cash | $ 6,238 | $ 47,415 |
Secured Structured Financings | 2017 Private issuances | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 1.85% | 1.85% |
Secured Structured Financings | 2017 Private issuances | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.44% | 2.27% |
Secured Structured Financings | 2018 Private issuance | ||
Debt Instrument [Line Items] | ||
Balance | $ 1,407,084 | |
Initial Note Amounts Issued | 1,000,002 | |
Collateral | 1,869,961 | |
Restricted Cash | $ 21,313 | |
Secured Structured Financings | 2018 Private issuance | Minimum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.42% | |
Secured Structured Financings | 2018 Private issuance | Maximum | ||
Debt Instrument [Line Items] | ||
Initial Weighted Average Interest Rate | 2.89% |
Debt - Secured Structured Finan
Debt - Secured Structured Financings, Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||||
Private issuance notes secured with vehicle lease | $ 5,812,107 | $ 5,812,107 | $ 3,710,377 | ||
Amortized debt issuance costs | 11,015 | $ 9,489 | 27,515 | $ 26,595 | |
Interest expense on secured structured financing | $ 198,184 | $ 152,950 | $ 521,775 | $ 409,968 |
Variable Interest Entities (A_3
Variable Interest Entities (As Revised) - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | $ 27,273,176,000 | $ 27,273,176,000 | $ 26,300,311,000 | ||
Receivables securitized | 5,414,393,000 | $ 2,998,430,000 | 19,167,290,000 | $ 15,395,158,000 | |
VIE, Not Primary Beneficiary | |||||
Securitization Financial Asset For Which Transfer Is Accounted As Sale [Line Items] | |||||
Gross retail installment contracts transferred and serviced | 4,657,059,000 | 4,657,059,000 | $ 3,428,248,000 | ||
Receivables securitized | 274,609,000 | 1,347,010,000 | 2,905,922,000 | 2,583,341,000 | |
Loss on retail installment contracts | 656,000 | $ 6,846,000 | 20,736,000 | $ 13,026,000 | |
Maximum exposure to loss, involvement with the VIE | $ 0 | $ 0 |
Variable Interest Entities (A_4
Variable Interest Entities (As Revised) - Summary of Cash Flows Received from Securitization Trusts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Assets securitized | $ 5,414,393 | $ 2,998,430 | $ 19,167,290 | $ 15,395,158 |
Net proceeds from new securitizations | 4,014,928 | 2,936,719 | 12,073,124 | 11,998,611 |
Net proceeds from sale of retained bonds | 203,704 | 0 | 797,336 | 273,733 |
Cash received for servicing fees | 229,520 | 228,131 | 659,210 | 653,048 |
Net distributions from Trusts | 860,024 | 666,179 | 2,186,010 | 2,073,965 |
Total cash received from Trusts | 5,308,176 | 3,831,029 | 15,715,680 | 14,999,357 |
VIE, Not Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Assets securitized | 274,609 | 1,347,010 | 2,905,922 | 2,583,341 |
Net proceeds from new securitizations | 274,855 | 1,347,430 | 2,909,794 | 2,588,227 |
Cash received for servicing fees | 11,896 | 12,309 | 32,590 | 25,677 |
Total cash received from Trusts | $ 286,751 | $ 1,359,739 | $ 2,942,384 | $ 2,613,904 |
Variable Interest Entities (A_5
Variable Interest Entities (As Revised) - Off-balance Sheet Variable Interest Entities Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Total serviced for others portfolio | $ 27,273,176 | $ 26,300,311 |
VIE, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Total serviced for others portfolio | 4,657,059 | 3,428,248 |
VIE, Not Primary Beneficiary | Chrysler Capital securitizations | ||
Variable Interest Entity [Line Items] | ||
Total serviced for others portfolio | 822,041 | 1,404,232 |
VIE, Not Primary Beneficiary | Third parties | ||
Variable Interest Entity [Line Items] | ||
Total serviced for others portfolio | 822,041 | 1,404,232 |
VIE, Not Primary Beneficiary | Santander | ||
Variable Interest Entity [Line Items] | ||
Total serviced for others portfolio | $ 3,835,018 | $ 2,024,016 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated unrealized gains to be reclassified from AOCI to interest expense in next 12 months | $ 45,633,000 | |
Warrant | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated fair value of warrant | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Underlying Notional Amounts and Aggregate Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Asset | $ 268,210 | $ 223,577 |
Liability | (178,752) | (167,933) |
Interest rate swaps | Not Designated As Hedges | ||
Derivative [Line Items] | ||
Notional | 2,567,000 | 1,736,400 |
Fair Value | 19,367 | 9,596 |
Asset | 19,367 | 9,596 |
Liability | 0 | 0 |
Interest rate swaps | Cash Flow Hedging | Designated as Hedges | ||
Derivative [Line Items] | ||
Notional | 4,068,100 | 4,926,900 |
Fair Value | 70,091 | 45,986 |
Asset | 70,091 | 45,986 |
Liability | 0 | 0 |
Interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 8,343,345 | 10,906,081 |
Fair Value | 178,752 | 103,721 |
Asset | 178,752 | 135,830 |
Liability | 0 | (32,109) |
Options for interest rate cap agreements | ||
Derivative [Line Items] | ||
Notional | 8,343,345 | 10,906,081 |
Fair Value | (178,752) | (103,659) |
Asset | 0 | 32,165 |
Liability | $ (178,752) | $ (135,824) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | $ 268,210 | $ 223,577 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (147,954) | (71,984) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 120,256 | 151,593 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivative assets | 268,210 | 223,577 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivative assets | 120,256 | 151,593 |
Assets Presented in the Condensed Consolidated Balance Sheet, Total financial assets | 268,210 | 223,577 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total financial assets | (147,954) | (71,984) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total financial assets | 120,256 | 151,593 |
Offsetting of Financial Liabilities | ||
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 178,752 | 167,933 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (178,752) | (151,741) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 0 | 16,192 |
Total derivatives not subject to a master netting arrangement or similar arrangement | 0 | 0 |
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivative liabilities | 178,752 | 167,933 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivative liabilities | 0 | 16,192 |
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total financial liabilities | 178,752 | 167,933 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Pledged, Total financial liabilities | (178,752) | (151,741) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total financial liabilities | 0 | 16,192 |
Interest rate swaps | Santander and Affiliates | ||
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 8,621 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (3,461) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 5,160 | |
Interest rate swaps | Third Party | ||
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 89,458 | 46,961 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (60,262) | (448) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 29,196 | 46,513 |
Interest rate caps | ||
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivative assets | 178,752 | 135,830 |
Offsetting of Financial Liabilities | ||
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivative liabilities | 0 | 32,109 |
Interest rate caps | Santander and Affiliates | ||
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 18,201 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (12,240) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 5,961 | |
Interest rate caps | Third Party | ||
Offsetting of Financial Assets | ||
Assets Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 178,752 | 149,794 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative assets | (87,692) | (55,835) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 91,060 | 93,959 |
Back to back | Santander and Affiliates | ||
Offsetting of Financial Liabilities | ||
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 18,201 | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (18,201) | |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | 0 | |
Back to back | Third Party | ||
Offsetting of Financial Liabilities | ||
Liabilities Presented in the Condensed Consolidated Balance Sheet, Total derivatives subject to a master netting arrangement or similar arrangement | 178,752 | 149,732 |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Cash Collateral Received, Total derivative liabilities | (178,752) | (133,540) |
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheet, Net Amount, Total derivatives subject to a master netting arrangement or similar arrangement | $ 0 | $ 16,192 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gross Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Designated as Hedges | Interest Rate Swaps | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ 0 | $ (3,293) | $ 0 | $ (11,573) |
Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) | 3,244 | (882) | 38,085 | 4,233 |
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income to Interest Expense | 11,170 | 1,461 | 24,843 | (3,158) |
Designated as Hedges | Interest Rate Swaps | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | 0 | (2,061) | 0 | (11,573) |
Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) | 3,244 | (882) | 38,085 | 4,233 |
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income to Interest Expense | 11,170 | 1,461 | 24,843 | (3,158) |
Designated as Hedges | Interest Rate Swaps | Fair Value Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | (1,232) | |||
Gross Gains Recognized in Accumulated Other Comprehensive Income (Loss) | 0 | |||
Gross Gains (Losses) Reclassified From Accumulated Other Comprehensive Income to Interest Expense | 0 | |||
Not Designated As Hedges | Interest Expense | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ (2,566) | (90) | $ (12,305) | (90) |
Not Designated As Hedges | Operating Expense | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in Earnings | $ 2,723 | $ 2,297 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
May 31, 2013 | Sep. 30, 2018 | Dec. 31, 2017 | |
Other Assets [Line Items] | |||
Other assets | $ 1,055,422 | $ 913,244 | |
Upfront fee | $ 150,000 | ||
Finance and other interest income amortization period | 10 years | ||
Vehicles | |||
Other Assets [Line Items] | |||
Other assets | 279,843 | 293,546 | |
Manufacturer subvention payments receivable | |||
Other Assets [Line Items] | |||
Other assets | 141,025 | 83,910 | |
Upfront fee | |||
Other Assets [Line Items] | |||
Other assets | 68,750 | 80,000 | |
Derivative assets at fair value | |||
Other Assets [Line Items] | |||
Other assets | 268,210 | 196,755 | |
Derivative - third party collateral | |||
Other Assets [Line Items] | |||
Other assets | 184,458 | 149,805 | |
Prepaids | |||
Other Assets [Line Items] | |||
Other assets | 27,828 | 40,830 | |
Accounts receivable | |||
Other Assets [Line Items] | |||
Other assets | 29,362 | 38,583 | |
Other | |||
Other Assets [Line Items] | |||
Other assets | $ 55,946 | $ 29,815 |
Income Taxes (As Revised) (Deta
Income Taxes (As Revised) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax expense | $ 64,874,000 | $ 114,120,000 | $ 58,052,000 | $ 77,879,000 | $ 79,318,000 | $ 75,287,000 | $ 172,172,000 | $ 154,605,000 | $ 237,047,000 | $ 232,484,000 | $ (368,798,000) |
Effective tax rate | 21.90% | 28.20% | 22.60% | 28.10% | |||||||
Earnings that are considered indefinitely reinvested | $ 0 | $ 0 | 0 | ||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Stranded income tax effects reclassified from AOCI to retained earnings | 0 | $ 26,552,000 | |||||||||
Related party taxes receivable | 467,000 | 467,000 | $ 467,000 | ||||||||
Retained Earnings | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Stranded income tax effects reclassified from AOCI to retained earnings | (6,149,000) | $ 25,113,000 | |||||||||
Accumulated Other Comprehensive Income | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Stranded income tax effects reclassified from AOCI to retained earnings | 6,149,000 | ||||||||||
Tax Sharing Agreement | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Related party taxes receivable | $ 467,000 | $ 467,000 |
Commitments and Contingencies -
Commitments and Contingencies - Liabilities for Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consumer arrangements | ||
Loss Contingencies [Line Items] | ||
Contingencies | $ 11,957 | $ 6,326 |
Legal and regulatory proceedings | ||
Loss Contingencies [Line Items] | ||
Contingencies | 110,000 | 108,800 |
Revenue-sharing and gain-sharing payments | Chrysler | ||
Loss Contingencies [Line Items] | ||
Commitments | 12,270 | 6,580 |
Servicer performance fee | Bank of America | ||
Loss Contingencies [Line Items] | ||
Commitments | 6,700 | 8,072 |
Loss-sharing payments | CBP | ||
Loss Contingencies [Line Items] | ||
Commitments | $ 4,464 | $ 5,625 |
Commitments and Contingencies_2
Commitments and Contingencies - Chrysler Agreement (Details) - Chrysler - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||
Funding available for FCA retail financing | $ 4,500,000,000 | |
Meeting specified escalating penetration rates, period | 5 years | |
Minimum | ||
Other Commitments [Line Items] | ||
Funding available for dealer inventory financing | $ 5,000,000,000 | |
Revenue-sharing and gain-sharing payments | ||
Other Commitments [Line Items] | ||
Amount accrued for the payments | $ 12,270,000 | $ 6,580,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Agreement with Bank of America (Details) - Bank of America - USD ($) | Jan. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | |||
Commitment to sell loans | $ 300,000,000 | ||
Servicer performance payments due, period | 6 years | ||
Servicer performance fee | |||
Other Commitments [Line Items] | |||
Commitments | $ 6,700,000 | $ 8,072,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Agreement with CBP (Details) - CBP - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||
Loans servicing, loss-sharing payment percentage | 0.50% | |
Loss-sharing payments | ||
Other Commitments [Line Items] | ||
Commitments | $ 4,464 | $ 5,625 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Consumer arrangements | ||
Other Commitments [Line Items] | ||
Accrual for miscellaneous contingencies | $ 11,957 | $ 6,326 |
Commitments and Contingencies_6
Commitments and Contingencies - Legal and Regulatory Proceedings (Details) $ in Thousands | Jan. 03, 2018claim | Feb. 28, 2015USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Parmelee Lawsuit | |||||
Loss Contingencies [Line Items] | |||||
Maximum possible loss | $ 9,500 | ||||
Number of claims dismissed | claim | 2 | ||||
Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
SCRA compliance monitoring period | 5 years | ||||
Aggregate Legal and Regulatory Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Contingencies | $ 110,000 | $ 108,800 | |||
Maximum possible loss | $ 200,000 | ||||
Civil Fine | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | $ 55 | ||||
Civil Fine to Affected Service Members | Violation of SCRA | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | 9,360 | ||||
Lost Equity for Each Repossession by SCUSA | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | 10 | ||||
SCUSA Sought to Collect Repossession-related Fees | Violation of SCRA | |||||
Loss Contingencies [Line Items] | |||||
Civil fine, amount | $ 5 |
Commitments and Contingencies_7
Commitments and Contingencies - Agreements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | May 31, 2015 | Jun. 30, 2014 | |
Other Commitments [Line Items] | ||||||||||
Purchase obligation | $ 11,941,000 | $ 11,941,000 | $ 11,539,000 | |||||||
Purchase commitment, repurchase rate (up to) | 9.99% | |||||||||
Retainer rate (up to) upon exercise of repurchase right | 20.00% | |||||||||
Servicing fees adjustment | 0 | $ 0 | 0 | $ 0 | ||||||
Repurchase requests outstanding | 0 | 0 | ||||||||
Commitment to sell charged off loan receivables in bankruptcy sale | $ 350,000 | |||||||||
Sales subject to market price check | $ 275,000 | |||||||||
Remaining aggregate commitment to sell charged off loan receivables | 78,466,000 | 78,466,000 | 98,858,000 | |||||||
SBNA | ||||||||||
Other Commitments [Line Items] | ||||||||||
Indemnification of leases | $ 48,226,000 | |||||||||
Credit loss indemnification of leases | 0 | 0 | 18,000 | $ 48,226,000 | ||||||
Indemnification liability | 39,000 | 39,000 | 2,206,000 | |||||||
Bluestem | Purchase New Advances on Personal Revolving Finance Receivable | ||||||||||
Other Commitments [Line Items] | ||||||||||
Commitments | $ 3,900,000,000 | 3,900,000,000 | 3,900,000,000 | $ 4,000,000,000 | ||||||
Purchases of receivables | 800,000,000 | 1,200,000,000 | ||||||||
Bluestem | Purchase of Receivables Related to New Opened Customer Accounts | ||||||||||
Other Commitments [Line Items] | ||||||||||
Purchases of receivables | $ 154,796,000 | $ 263,831,000 |
Commitments and Contingencies_8
Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease expense | $ 2,571 | $ 2,773 | $ 7,661 | $ 8,240 |
Commitments and Contingencies_9
Commitments and Contingencies - Future Minimum Lease Commitments (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Years ended December 31, | |
2,018 | $ 3,050 |
2,019 | 12,817 |
2,020 | 13,080 |
2,021 | 12,940 |
2,022 | 12,282 |
Thereafter | 44,663 |
Total | $ 98,832 |
Related-Party Transactions - In
Related-Party Transactions - Interest Expense and Accrued Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Santander | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | $ 1,512 | $ 8,158 | $ 11,620 | $ 46,624 | |
Accrued interest for affiliate lines/letters of credit | 0 | 0 | $ 1,435 | ||
SHUSA | |||||
Related Party Transaction [Line Items] | |||||
Interest expense for affiliate lines/letters of credit | 38,460 | $ 26,211 | 110,868 | $ 59,105 | |
Accrued interest for affiliate lines/letters of credit | $ 18,449 | $ 18,449 | $ 18,670 |
Related-Party Transactions - Cr
Related-Party Transactions - Credit Facilities (Details) - Santander - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||
Guarantee fee, basis spread (as a percent) | 0.125% | |||||
Guarantee fee expense | $ 1,129 | $ 1,672 | $ 4,747 | $ 4,620 | ||
Guarantee fee payable | $ 1,645 | $ 1,645 | $ 7,598 |
Related-Party Transactions - De
Related-Party Transactions - Derivatives (Details) - Santander and Affiliates - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Outstanding notional amount | $ 0 | $ 0 | $ 3,734,400 | ||
Collateral coverage on derivative liabilities | 0 | 0 | $ 1,622 | ||
Interest and mark-to-market adjustments | $ 234 | $ 1,227 | $ 694 | $ 1,443 |
Related-Party Transactions - Le
Related-Party Transactions - Lease Origination and Servicing Agreement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||
Sale of retail installment contracts to affiliates | $ 274,609,000 | $ 1,347,010,000 | $ 2,905,922,000 | $ 2,583,341,000 | ||
Servicing fee income | 26,409,000 | 28,673,000 | 80,129,000 | 92,310,000 | ||
SBNA | ||||||
Related Party Transaction [Line Items] | ||||||
Servicing fee income | 59,000 | 1,066,000 | 1,407,000 | 4,115,000 | ||
Credit loss indemnification of leases | 0 | 0 | $ 18,000 | $ 48,226,000 | ||
Indemnification expense | 0 | $ 0 | 0 | $ 0 | ||
Balance of collateral on lease origination | 40,000 | 40,000 | 2,210,000 | |||
Indemnification liability | $ 39,000 | $ 39,000 | $ 2,206,000 |
Related-Party Transactions - _2
Related-Party Transactions - Information on Consumer Vehicle Lease Portfolio (Details) - SBNA - Consumer Vehicle Lease - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 809 | $ 321,629 |
Origination and servicing fees receivable | 17 | 2,067 |
Revenue share reimbursement receivable | $ 238 | $ 1,548 |
Related-Party Transactions - Re
Related-Party Transactions - Retail Installment Contracts and RV Marine (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 26,409 | $ 28,673 | $ 80,129 | $ 92,310 |
SBNA | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | 59 | 1,066 | 1,407 | 4,115 |
SBNA | Serviced Auto Loan and Retail Installment | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 684 | $ 887 | $ 2,479 | $ 2,658 |
Related-Party Transactions - _3
Related-Party Transactions - Information on Serviced Auto Loan and Retail Installment Contract Portfolio (Details) - SBNA - Serviced Auto Loan and Retail Installment - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Total serviced portfolio | $ 411,664 | $ 522,219 |
Cash collections due to owner | 16,776 | 12,306 |
Servicing fees receivable | $ 763 | $ 943 |
Related-Party Transactions - _4
Related-Party Transactions - Dealer Lending (Details) - SBNA - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Referral fee | $ 9,000,000 | ||||
Referral fee, amortization period | 10 years | ||||
Unamortized fee balance | $ 4,275,000 | $ 4,275,000 | $ 4,950,000 | ||
Income related to referral fee | 225,000 | $ 675,000 | 225,000 | $ 450,000 | |
Dealer Loan Portfolio | |||||
Related Party Transaction [Line Items] | |||||
Due from related parties | 0 | 0 | 0 | ||
Loan Origination on Sales of Floorplan Inventory | |||||
Related Party Transaction [Line Items] | |||||
Due to related parties | $ 7,420,000 | $ 7,420,000 | $ 4,481,000 |
Related-Party Transactions - _5
Related-Party Transactions - Information on Transactions with SBNA (Details) - SBNA - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Servicing fees payable | $ 9 | $ 9 | $ 9 | ||
Origination and Renewal Fees | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 871 | $ 603 | 2,943 | $ 2,148 | |
Due from related parties | 326 | 326 | $ 369 | ||
Servicing Fees Expenses | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 19 | $ 21 | $ 59 | $ 77 |
Related-Party Transactions - Or
Related-Party Transactions - Origination Support Services (Details) - Affiliates - SBNA - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Purchase of Retail Installment Contracts | ||||
Related Party Transaction [Line Items] | ||||
Additions to servicing asset | $ 685,000 | $ 738,000 | ||
Referral and Servicing Fee | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 4,564 | 4,952 | ||
Due from related parties | 5,247 | 5,247 | ||
Fee for Payments Made at Retail Branch Locations | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transaction with related party | $ 86 | $ 62 | $ 427 | $ 178 |
Related-Party Transactions - Se
Related-Party Transactions - Securitizations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Santander | |||||
Related Party Transaction [Line Items] | |||||
Sale of loans securitized | $ 2,905,922 | ||||
Due from related parties | $ 3,304 | 3,304 | $ 1,848 | ||
Due to related parties | 22,451 | 22,451 | $ 12,961 | ||
Affiliates | SIS | Fees Paid for Co-Management of Certain Securitizations | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 139 | $ 100 | $ 997 | $ 1,259 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Information on SPAIN Securitization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Servicing fee income | $ 12,158 | $ 2,739 | $ 33,605 | $ 8,627 |
Santander | ||||
Related Party Transaction [Line Items] | ||||
Servicing fee income | 9,972 | 529 | 25,793 | 1,419 |
Loss (Gain) on sale, excluding lower of cost or market adjustments (if any) | $ 4,218 | $ 6,846 | $ 24,298 | $ 13,026 |
Related-Party Transactions - CE
Related-Party Transactions - CEO and Other Employee Compensation (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
SHUSA | Administrative Services | Affiliates | |
Related Party Transaction [Line Items] | |
Due to related parties | $ 407 |
Due from related parties | 360 |
Chairman and CEO | |
Related Party Transaction [Line Items] | |
Compensation expense paid | $ 2,569 |
Related-Party Transactions - _6
Related-Party Transactions - Other Related Party Transactions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||||
Lease expense | $ 2,571 | $ 2,773 | $ 7,661 | $ 8,240 | |
Future minimum payment of lease | 98,832 | 98,832 | |||
Restricted cash | $ 2,130,130 | 2,559,246 | $ 2,130,130 | 2,559,246 | $ 2,553,902 |
Chairman and CEO, President and CFO and Board Member | |||||
Related Party Transaction [Line Items] | |||||
Area of leased property (in square foot) | ft² | 373,000 | 373,000 | |||
Lease expense | $ 1,180 | 1,275 | $ 3,582 | 3,836 | |
Lease term | 9 years | 9 years | |||
Future minimum payment of lease | $ 57,268 | $ 57,268 | |||
Affiliates | SBNA | Sublease of Corporate Office Space | |||||
Related Party Transaction [Line Items] | |||||
Area of property (in square foot) | ft² | 13,000 | 13,000 | |||
Sublease revenue | $ 40 | 41 | $ 122 | 122 | |
Affiliates | SHUSA | |||||
Related Party Transaction [Line Items] | |||||
Cyber liability insurance, coverage limit | 150,000 | ||||
Affiliates | SHUSA | Allocated Portion of Insurance Premiums and Fees | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 92 | 78 | 277 | 234 | |
Affiliates | SHUSA | Various Other Insurance Products | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | 195 | 163 | 520 | 444 | |
Subsidiaries | Banco Santander Puerto Rico | Demand Deposits | |||||
Related Party Transaction [Line Items] | |||||
Restricted cash | 19,211 | 19,211 | $ 106,596 | ||
Santander | Procurement Services | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transaction with related party | $ 378 | $ 142 | $ 1,136 | $ 354 |
Computation of Basic and Dilu_3
Computation of Basic and Diluted Earnings per Common Share (As Revised) - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from computation of earnings per share (in shares) | 114,124 | 778,019 | 178,062 | 778,019 |
Restricted Stock Units (RSUs) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Awards excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 620,625 |
Computation of Basic and Dilu_4
Computation of Basic and Diluted Earnings per Common Share (As Revised) - Summary of Computation of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Earnings per common share | |||||||||||
Net income | $ 231,948 | $ 335,026 | $ 244,614 | $ 198,569 | $ 257,898 | $ 138,891 | $ 579,640 | $ 396,788 | $ 811,588 | $ 595,358 | $ 1,172,807 |
Weighted average number of common shares outstanding before restricted participating shares (in shares) | 360,725,000 | 359,496,000 | 360,899,000 | 359,274,000 | |||||||
Weighted average number of participating restricted common shares outstanding (in shares) | 0 | 123,000 | 0 | 123,000 | |||||||
Weighted average number of common shares outstanding (in shares) | 360,725,330 | 359,619,083 | 360,898,973 | 359,397,063 | |||||||
Earnings per common share (in usd per share) | $ 0.64 | $ 0.93 | $ 0.68 | $ 0.55 | $ 0.72 | $ 0.39 | $ 1.61 | $ 1.10 | $ 2.25 | $ 1.66 | $ 3.26 |
Earnings per common share - assuming dilution | |||||||||||
Net income | $ 231,948 | $ 335,026 | $ 244,614 | $ 198,569 | $ 257,898 | $ 138,891 | $ 579,640 | $ 396,788 | $ 811,588 | $ 595,358 | $ 1,172,807 |
Weighted average number of common shares outstanding (in shares) | 360,725,330 | 359,619,083 | 360,898,973 | 359,397,063 | |||||||
Effect of employee stock-based awards (in shares) | 720,000 | 841,000 | 815,000 | 672,000 | |||||||
Weighted average number of common shares outstanding - assuming dilution (in shares) | 361,445,223 | 360,460,353 | 361,714,123 | 360,069,449 | |||||||
Earnings per common share - assuming dilution (in usd per share) | $ 0.64 | $ 0.93 | $ 0.68 | $ 0.55 | $ 0.72 | $ 0.39 | $ 1.60 | $ 1.10 | $ 2.24 | $ 1.65 | $ 3.26 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (As Revised) - Summary of Fair Value Estimates, Methods and Assumptions (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | $ 81,435 | $ 527,805 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash | 2,130,130 | 2,553,902 |
Total | 2,211,565 | 3,081,707 |
Liabilities: | ||
Notes payable — credit facilities | 0 | 0 |
Notes payable — secured structured financings | 0 | 0 |
Notes payable — related party | 0 | 0 |
Total | 0 | 0 |
Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 0 | 0 |
Restricted cash | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Notes payable — credit facilities | 0 | 0 |
Notes payable — secured structured financings | 18,222,814 | 12,275,408 |
Notes payable — related party | 0 | 0 |
Total | 18,222,814 | 12,275,408 |
Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Finance receivables held for investment, net | 25,911,405 | 24,340,739 |
Restricted cash | 0 | 0 |
Total | 25,911,405 | 24,340,739 |
Liabilities: | ||
Notes payable — credit facilities | 5,632,053 | 4,848,316 |
Notes payable — secured structured financings | 6,697,046 | 10,412,973 |
Notes payable — related party | 2,939,929 | 3,754,223 |
Total | 15,269,028 | 19,015,512 |
Carrying Value | ||
Assets: | ||
Cash and cash equivalents | 81,435 | 527,805 |
Finance receivables held for investment, net | 24,645,638 | 22,250,586 |
Restricted cash | 2,130,130 | 2,553,902 |
Total | 26,857,203 | 25,332,293 |
Liabilities: | ||
Notes payable — credit facilities | 5,632,053 | 4,848,316 |
Notes payable — secured structured financings | 24,867,297 | 22,557,895 |
Notes payable — related party | 3,003,529 | 3,754,223 |
Total | 33,502,879 | 31,160,434 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 81,435 | 527,805 |
Finance receivables held for investment, net | 25,911,405 | 24,340,739 |
Restricted cash | 2,130,130 | 2,553,902 |
Total | 28,122,970 | 27,422,446 |
Liabilities: | ||
Notes payable — credit facilities | 5,632,053 | 4,848,316 |
Notes payable — secured structured financings | 24,919,860 | 22,688,381 |
Notes payable — related party | 2,939,929 | 3,754,223 |
Total | $ 33,491,842 | $ 31,290,920 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (As Revised) - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Retail installment contracts acquired individually | $ 14,138 | $ 22,124 |
Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 178,752 | 129,718 |
Due from affiliates | 6,112 | |
Other liabilities | 20,019 | |
Due to affiliates | 12,090 | |
Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 19,367 | 7,925 |
Due from affiliates | 1,671 | |
Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 70,091 | 39,036 |
Due from affiliates | 6,950 | |
Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 20,075 | |
Due from affiliates | 12,090 | |
Other liabilities | 178,752 | 129,712 |
Due to affiliates | 6,112 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Retail installment contracts acquired individually | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Other liabilities | 0 | |
Due to affiliates | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | |
Due from affiliates | 0 | |
Other liabilities | 0 | 0 |
Due to affiliates | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Retail installment contracts acquired individually | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 178,752 | 129,718 |
Due from affiliates | 6,112 | |
Other liabilities | 20,019 | |
Due to affiliates | 12,090 | |
Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 19,367 | 7,925 |
Due from affiliates | 1,671 | |
Significant Other Observable Inputs (Level 2) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 70,091 | 39,036 |
Due from affiliates | 6,950 | |
Significant Other Observable Inputs (Level 2) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 20,075 | |
Due from affiliates | 12,090 | |
Other liabilities | 178,752 | 129,712 |
Due to affiliates | 6,112 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Retail installment contracts acquired individually | 14,138 | 22,124 |
Significant Unobservable Inputs (Level 3) | Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Other liabilities | 0 | |
Due to affiliates | 0 | |
Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Significant Unobservable Inputs (Level 3) | Interest Rate Swaps | Cash Flow Hedging | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | 0 |
Due from affiliates | 0 | |
Significant Unobservable Inputs (Level 3) | Trading Options for Interest Rate Caps | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other assets | 0 | |
Due from affiliates | 0 | |
Other liabilities | $ 0 | 0 |
Due to affiliates | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments (As Revised) - Change in Level 3 Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Financial Instruments, Liabilities | Total Return Settlement | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance — beginning of period | $ 31,123 | $ 30,618 | ||
(Gains)/losses recognized in earnings | 0 | 505 | ||
Settlements | $ (31,123) | (31,123) | ||
Balance — end of period | 0 | 0 | ||
Retail Installment Contracts | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance — beginning of period | 17,182 | 30,489 | $ 22,124 | 24,495 |
Additions / issuances | 0 | 0 | 3,276 | 19,727 |
Net collection activities | (3,245) | (6,517) | (12,775) | (23,640) |
Gains recognized in earnings | 201 | 827 | 1,513 | 4,217 |
Balance — end of period | $ 14,138 | $ 24,799 | $ 14,138 | $ 24,799 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments (As Revised) - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 2,211,565 | $ 3,081,707 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 25,911,405 | 24,340,739 |
Nonrecurring | Vehicles | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 279,843 | 293,546 |
Lower of cost or fair value expense | 0 | 0 |
Nonrecurring | Vehicles | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Vehicles | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 279,843 | 293,546 |
Nonrecurring | Vehicles | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 933,380 | 1,062,089 |
Lower of cost or fair value expense | 221,463 | 374,374 |
Nonrecurring | Personal loans held for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Personal loans held for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 933,380 | 1,062,089 |
Nonrecurring | Retail installment contracts held for sale | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 1,148,332 |
Lower of cost or fair value expense | 15,098 | 11,686 |
Nonrecurring | Retail installment contracts held for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Retail installment contracts held for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Retail installment contracts held for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 1,148,332 |
Nonrecurring | Auto loans impaired due to bankruptcy | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 179,807 | 121,578 |
Lower of cost or fair value expense | 93,846 | 75,194 |
Nonrecurring | Auto loans impaired due to bankruptcy | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 0 | 0 |
Nonrecurring | Auto loans impaired due to bankruptcy | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | 179,807 | 121,578 |
Nonrecurring | Auto loans impaired due to bankruptcy | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments (As Revised) - Quantitative Information for Assets and Liabilities (Details) - Level 3 $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 25,911,405 | $ 24,340,739 |
Retail installment contracts held for investment | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 14,138 | $ 22,124 |
Retail installment contracts held for investment | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.08 | 0.08 |
Retail installment contracts held for investment | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.10 | 0.10 |
Retail installment contracts held for investment | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.15 | 0.15 |
Retail installment contracts held for investment | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.20 | 0.20 |
Retail installment contracts held for investment | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.06 | 0.06 |
Retail installment contracts held for investment | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.08 | 0.08 |
Retail installment contracts held for investment | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.50 | 0.50 |
Retail installment contracts held for investment | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.60 | 0.60 |
Personal loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 933,380 | $ 1,062,089 |
Personal loans held for sale | Market Approach | Market Participant View | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.70 | 0.70 |
Personal loans held for sale | Market Approach | Market Participant View | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.80 | 0.80 |
Personal loans held for sale | Income Approach | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.15 | 0.15 |
Personal loans held for sale | Income Approach | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.25 | 0.20 |
Personal loans held for sale | Income Approach | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.30 | 0.30 |
Personal loans held for sale | Income Approach | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.40 | 0.40 |
Personal loans held for sale | Income Approach | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.90 | 0.90 |
Personal loans held for sale | Income Approach | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.95 | 0.95 |
Personal loans held for sale | Income Approach | Net Principal & Interest Payment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.70 | 0.50 |
Personal loans held for sale | Income Approach | Net Principal & Interest Payment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.85 | 0.70 |
Retail installment contracts held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 1,148,332 | |
Retail installment contracts held for sale | Discount Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.03 | |
Retail installment contracts held for sale | Discount Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.06 | |
Retail installment contracts held for sale | Default Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.03 | |
Retail installment contracts held for sale | Default Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.04 | |
Retail installment contracts held for sale | Prepayment Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.15 | |
Retail installment contracts held for sale | Prepayment Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.20 | |
Retail installment contracts held for sale | Loss Severity Rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.50 | |
Retail installment contracts held for sale | Loss Severity Rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Inputs | 0.60 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 361,986,423 | 361,986,423 | 360,779,465 | ||||
Expiration period | 10 years | ||||||
MEP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares stock awards available for grant | 29,000,000 | ||||||
Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, shares issued | 5,192,641 | ||||||
Omnibus Incentive Plan | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares stock awards available for grant | 583,890 | 583,890 | |||||
Stock vesting period | 5 years | ||||||
Compensation expense | $ 0 | $ (220,000) | $ 0 | $ 139,000 | |||
Omnibus Incentive Plan | Stock Options and Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 6,892,000 | $ 12,166,000 | |||||
Omnibus Incentive Plan | RSUs | Certain Officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Transfer and sale restrictions period | 1 year | ||||||
Omnibus Incentive Plan | RSUs | Certain Officers and Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 3 years | ||||||
Omnibus Incentive Plan | RSUs | Vesting One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 3 years | ||||||
Omnibus Incentive Plan | RSUs | Vesting Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock vesting period | 5 years |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Stock Options and Related Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Shares | ||
Options outstanding as of beginning of period (in shares) | 1,695,008,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (831,461,000) | |
Expired (in shares) | (76,885,000) | |
Forfeited (in shares) | (99,602,000) | |
Options outstanding as of end of period (in shares) | 687,060,000 | 1,695,008,000 |
Options exercisable as of end of period (in shares) | 605,905,000 | |
Weighted Average Exercise Price | ||
Options outstanding as of beginning of period (in usd per share) | $ 12.39 | |
Granted (in usd per share) | 0 | |
Exercised (in usd per share) | 9.51 | |
Expired (in usd per share) | 23.59 | |
Forfeited (in usd per share) | 23.13 | |
Options outstanding as of end of period (in usd per share) | 13.06 | $ 12.39 |
Options exercisable, Weighted average exercise price as of end of period (in usd per share) | $ 12.17 | |
Weighted Average Remaining Contractual Term (Years) | ||
Options outstanding, Weighted average remaining contractual term (Years) | 4 years 1 month 6 days | 4 years 8 months 12 days |
Options exercisable, Weighted average remaining contractual term (Years) | 3 years 9 months 18 days | |
Aggregate Intrinsic Value | ||
Options outstanding, Aggregate intrinsic value | $ 5,206 | $ 12,058 |
Exercised, Aggregate intrinsic value | 7,583 | |
Options exercisable, Aggregate intrinsic value | $ 5,024 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Restricted Stock and Performance Stock Units (Details) - Restricted Stock and Performance Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Shares | ||
Outstanding as of beginning of period (in shares) | 650,252 | |
Granted (in shares) | 617,279 | |
Vested (in shares) | (509,421) | |
Forfeited/canceled (in shares) | (33,866) | |
Unvested as of end of period (in shares) | 724,244 | 650,252 |
Weighted Average Grant Date Fair Value | ||
Outstanding as of beginning of period (in usd per share) | $ 12.68 | |
Granted (in usd per share) | 16.48 | |
Vested (in usd per share) | 14.18 | |
Forfeited/canceled (in usd per share) | 12.54 | |
Unvested as of end of period (in usd per share) | $ 14.82 | $ 12.68 |
Weighted Average Remaining Contractual Term (Years) | 1 year 3 months 19 days | 1 year |
Aggregate Intrinsic Value | ||
Outstanding as of beginning of period | $ 12,108 | |
Vested | $ 8,362 | |
Unvested as of end of period | $ 14,514 |
Shareholders' Equity - Shares R
Shareholders' Equity - Shares Repurchased (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Aug. 31, 2018 | Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2013 | Jul. 20, 2018 | |
Equity [Abstract] | ||||||
Authorized repurchase amount | $ 200,000,000 | |||||
Total Number of Shares Purchased (in shares) | 1,027,798,000 | 1,359,893,000 | 0 | 2,387,691,000 | ||
Average Price paid per Share (in usd per share) | $ 21.35 | $ 20.63 | $ 0 | $ 20.94 | ||
Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | $ 150,000,000 | $ 171,945,000 | $ 200,000,000 | $ 150,000,000 | ||
Value of shares repurchased | 50,000,000 | |||||
Remaining authorized repurchase amount | $ 150,000,000 | $ 150,000,000 | ||||
Number of shares repurchased (in shares) | 3,154 |
Shareholders' Equity - Treasury
Shareholders' Equity - Treasury Stock (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2013 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Number of shares withheld to cover income taxes related to vesting of RSUs | 2,639,693 | 252,002 | |
Treasury stock value | $ 55,549 | $ 5,370 | |
Number of shares repurchased (in shares) | 3,154 | ||
Number of shares withheld for income tax | 248,848 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Cumulative-effect adjustment upon adoption of ASU | $ 0 | $ 26,552 | ||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | $ 7,033,635 | $ 5,667,420 | 6,465,702 | 5,238,619 |
Ending balance | 7,141,215 | 5,873,102 | 7,141,215 | 5,873,102 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | 62,449 | 27,860 | 44,262 | 28,259 |
Other comprehensive income (loss) before reclassifications (gross) (a) | 1,814 | 1,061 | 31,749 | (3,062) |
Amounts (gross) reclassified out of accumulated other comprehensive income (loss) | (7,662) | (1,440) | (19,410) | 2,284 |
Ending balance | 56,601 | 27,481 | 56,601 | 27,481 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Cumulative-effect adjustment upon adoption of ASU | 6,149 | |||
Increase (Decrease) in Accumulated Other Comprehensive Loss [Roll Forward] | ||||
Beginning balance | 44,262 | 28,259 | ||
Ending balance | $ 56,601 | $ 27,481 | $ 56,601 | $ 27,481 |
Shareholders' Equity - Reclassi
Shareholders' Equity - Reclassification of Amounts Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cash flow hedges | $ 285,583 | $ 250,674 | $ 800,564 | $ 711,134 | |||||||
Tax expense (benefit) | 64,874 | $ 114,120 | $ 58,052 | 77,879 | $ 79,318 | $ 75,287 | $ 172,172 | $ 154,605 | 237,047 | 232,484 | $ (368,798) |
Net of tax | (231,948) | $ (335,026) | $ (244,614) | (198,569) | $ (257,898) | $ (138,891) | $ (579,640) | $ (396,788) | (811,588) | (595,358) | $ (1,172,807) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Cash Flow Hedges | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income On Derivatives [Line Items] | |||||||||||
Cash flow hedges | (11,170) | (1,461) | (24,843) | 3,158 | |||||||
Tax expense (benefit) | 3,508 | 21 | 5,433 | (874) | |||||||
Net of tax | $ (7,662) | $ (1,440) | $ (19,410) | $ 2,284 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - $ / shares | Nov. 15, 2018 | Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Dividends Payable [Line Items] | ||||||
Dividend paid per common share (in usd per share) | $ 0.20 | |||||
Dividends declared, per share (in usd per share) | $ 0.20 | $ 0.20 | $ 0 | $ 0.30 | $ 0 | |
Scenario, Forecast | ||||||
Dividends Payable [Line Items] | ||||||
Dividend paid per common share (in usd per share) | $ 0.20 |
Investment Losses, Net - Schedu
Investment Losses, Net - Schedule of Investment Gains (Losses), Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gain (loss) on sale of loans and leases | $ (1,918) | $ 29,974 | $ (20,710) | $ 16,913 |
Lower of cost or market adjustments | (86,847) | (84,718) | (236,561) | (246,522) |
Other gains, (losses and impairments), net | 2,445 | 2,152 | 1,797 | 1,096 |
Investment losses, net | $ (86,320) | $ (52,592) | $ (255,474) | $ (228,513) |
Investment Losses, Net - Additi
Investment Losses, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Lower of cost or market adjustment, customer default activity | $ 100,324 | $ 112,055 | $ 295,629 | $ 336,413 |
Lower of cost or market adjustment | $ 13,495 | $ 27,337 | $ 59,068 | $ 89,891 |