Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | OneMain Holdings, Inc. | ||
Entity Central Index Key | 1,584,207 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,604,511,028 | ||
Entity Common Stock, Shares Outstanding | 134,743,720 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 939 | $ 879 |
Investment securities | 1,867 | 2,935 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $11.4 billion in 2015 and $1.9 billion in 2014) | 13,267 | 3,831 |
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.6 billion in 2015 and $2.0 billion in 2014) | 1,576 | 1,979 |
Real estate loans | 524 | 625 |
Retail sales finance | 23 | 48 |
Net finance receivables | 15,390 | 6,483 |
Unearned insurance premium and claim reserves | (662) | (217) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $431 million in 2015 and $72 million in 2014) | (587) | (176) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 14,141 | 6,090 |
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | 796 | 205 |
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $663 million in 2015 and $210 million in 2014) | 676 | 218 |
Goodwill | 1,440 | 0 |
Other intangible assets | 559 | 21 |
Other assets | 638 | 464 |
Total assets | 21,056 | 10,812 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $11.7 billion in 2015 and $3.6 billion in 2014) | 17,300 | 8,356 |
Insurance claims and policyholder liabilities | 747 | 229 |
Deferred and accrued taxes | 20 | 152 |
Other liabilities | 384 | 238 |
Total liabilities | $ 18,451 | $ 8,975 |
Commitments and contingent liabilities (Note 20) | ||
Shareholders’ equity: | ||
Common stock, par value $.01 per share; 2,000,000,000 shares authorized, 134,494,172 and 114,832,895 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ 1 | $ 1 |
Additional paid-in capital | 1,533 | 529 |
Accumulated other comprehensive income (loss) | (33) | 3 |
Retained earnings | 1,250 | 1,492 |
OneMain Holdings, Inc. shareholders’ equity | 2,751 | 2,025 |
Non-controlling interests | (146) | (188) |
Total shareholders’ equity | 2,605 | 1,837 |
Total liabilities and shareholders’ equity | $ 21,056 | $ 10,812 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Personal loans | $ 13,267 | $ 3,831 |
SpringCastle Portfolio | 1,576 | 1,979 |
Allowance for finance receivable losses | 587 | 176 |
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | 796 | 205 |
Restricted cash | 676 | 218 |
Long-term debt | $ 17,300 | $ 8,356 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 134,494,172 | 114,832,895 |
Common Stock, Shares, Outstanding | 134,494,172 | 114,832,895 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 431 | $ 72 |
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | 435 | 0 |
Restricted cash | 663 | 210 |
Long-term debt | 11,654 | 3,630 |
Personal Loans | ||
Allowance for finance receivable losses | 541 | 132 |
Personal Loans | Consolidated VIEs | ||
Personal loans | 11,424 | 1,853 |
SpringCastle Portfolio | ||
Allowance for finance receivable losses | 4 | 3 |
SpringCastle Portfolio | Consolidated VIEs | ||
SpringCastle Portfolio | $ 1,576 | $ 1,979 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Finance charges | $ 1,870 | $ 1,921 | $ 2,154 |
Finance receivables held for sale originated as held for investment | 61 | 61 | 0 |
Total interest income | 1,931 | 1,982 | 2,154 |
Interest expense | 715 | 734 | 920 |
Net interest income | 1,216 | 1,248 | 1,234 |
Provision for finance receivable losses | 759 | 474 | 527 |
Net interest income after provision for finance receivable losses | 457 | 774 | 707 |
Other revenues: | |||
Insurance | 211 | 166 | 148 |
Investment | 52 | 39 | 35 |
Net loss on repurchases and repayments of debt | 0 | (66) | (42) |
Net gain (loss) on fair value adjustments on debt | 0 | (15) | 6 |
Net gain on sales of real estate loans and related trust assets | 0 | 726 | 0 |
Other | (2) | (18) | 6 |
Total other revenues | 261 | 832 | 153 |
Operating expenses: | |||
Salaries and benefits | 485 | 360 | 464 |
Acquisition-related transaction and integration expenses | 62 | 0 | 0 |
Other operating expenses | 344 | 266 | 253 |
Insurance policy benefits and claims | 96 | 75 | 65 |
Total other expenses | 987 | 701 | 782 |
Income (loss) before provision for (benefit from) income taxes | (269) | 905 | 78 |
Provision for (benefit from) income taxes | (147) | 297 | (16) |
Net income (loss) | (122) | 608 | 94 |
Net income attributable to non-controlling interests | 120 | 103 | 113 |
Net income (loss) attributable to OneMain Holdings, Inc. | $ (242) | $ 505 | $ (19) |
Weighted average number of shares outstanding: | |||
Weighted average number of shares outstanding, basic (in shares) | 127,910,680 | 114,791,225 | 102,917,172 |
Weighted average number of shares outstanding, diluted (in shares) | 127,910,680 | 115,265,123 | 102,917,172 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (1.89) | $ 4.40 | $ (0.19) |
Diluted (in dollars per share) | $ (1.89) | $ 4.38 | $ (0.19) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (122) | $ 608 | $ 94 |
Net unrealized gains (losses) on: | |||
Net unrealized gains (losses) on non-credit impaired available-for-sale securities | (28) | 20 | (12) |
Retirement plan liabilities adjustments | (9) | (50) | 18 |
Foreign currency translation adjustments | (6) | 0 | (1) |
Net unrealized (gains) losses on: | |||
Net unrealized (gains) losses on non-credit impaired available-for-sale securities | 10 | (7) | 4 |
Retirement plan liabilities adjustments | 3 | 17 | (6) |
Foreign currency translation adjustments | 2 | 0 | 0 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | (28) | (20) | 3 |
Reclassification adjustments included in net income (loss): | |||
Net realized gains on available-for-sale securities | (12) | (8) | (3) |
Income tax effect: | |||
Net realized gains on available-for-sale securities | 4 | 3 | 1 |
Reclassification adjustments included in net income (loss), net of tax | (8) | (5) | (2) |
Other comprehensive income (loss), net of tax | (36) | (25) | 1 |
Comprehensive income (loss) | (158) | 583 | 95 |
Comprehensive income attributable to non-controlling interests | 120 | 103 | 113 |
Comprehensive income (loss) attributable to OneMain Holdings, Inc. | $ (278) | $ 480 | $ (18) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Incentive Units | OneMain Holdings, Inc. Shareholders' Equity | OneMain Holdings, Inc. Shareholders' EquityIncentive Units | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalIncentive Units | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-controlling Interests |
Balance at Dec. 31, 2012 | $ 1,181 | $ 1,181 | $ 1 | $ 147 | $ 27 | $ 1,006 | ||||
Common shares issued and outstanding | ||||||||||
Sale of common stock, net of offering costs | 231 | 231 | 231 | |||||||
Share-based compensation expense, net of forfeitures | 146 | 146 | 146 | |||||||
Change in non-controlling interests: | ||||||||||
Contributions from joint venture partners | 438 | $ 438 | ||||||||
Distributions declared to joint venture partners | (204) | (204) | ||||||||
Accumulated other comprehensive income (loss) | 1 | 1 | 1 | 0 | ||||||
Net income (loss) | 94 | (19) | (19) | 113 | ||||||
Balance at Dec. 31, 2013 | 1,887 | 1,540 | 1 | 524 | 28 | 987 | 347 | |||
Common shares issued and outstanding | ||||||||||
Share-based compensation expense, net of forfeitures | 6 | 6 | 6 | |||||||
Withholding tax on vested RSUs | (1) | (1) | (1) | |||||||
Change in non-controlling interests: | ||||||||||
Distributions declared to joint venture partners | (638) | (638) | ||||||||
Accumulated other comprehensive income (loss) | (25) | (25) | (25) | |||||||
Net income (loss) | 608 | 505 | 505 | 103 | ||||||
Balance at Dec. 31, 2014 | 1,837 | 2,025 | 1 | 529 | 3 | 1,492 | (188) | |||
Common shares issued and outstanding | ||||||||||
Sale of common stock, net of offering costs | 976 | 976 | 976 | |||||||
Non-cash incentive compensation from Initial Stockholder | $ 15 | $ 15 | $ 15 | |||||||
Share-based compensation expense, net of forfeitures | 15 | 15 | 15 | |||||||
Excess tax benefit from share-based compensation | 3 | 3 | 3 | |||||||
Withholding tax on vested RSUs | (5) | (5) | (5) | |||||||
Change in non-controlling interests: | ||||||||||
Distributions declared to joint venture partners | (78) | (78) | ||||||||
Accumulated other comprehensive income (loss) | (36) | (36) | (36) | |||||||
Net income (loss) | (122) | (242) | (242) | 120 | ||||||
Balance at Dec. 31, 2015 | $ 2,605 | $ 2,751 | $ 1 | $ 1,533 | $ (33) | $ 1,250 | $ (146) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | |||
Net income (loss) | $ (122) | $ 608 | $ 94 |
Reconciling adjustments: | |||
Provision for finance receivable losses | 759 | 474 | 527 |
Depreciation and amortization | 191 | 35 | (55) |
Deferred income tax charge (benefit) | (212) | 20 | (119) |
Non-cash incentive compensation from Initial Stockholder | 15 | 0 | |
Net loss (gain) on fair value adjustments on debt | 0 | 15 | (6) |
Net gain on sales of real estate loans and related trust assets | 0 | (726) | 0 |
Net loss on repurchases and repayments of debt | 0 | 66 | 42 |
Share-based compensation expense, net of forfeitures | 15 | 6 | 146 |
Other | 4 | 10 | 19 |
Cash flows due to changes in: | |||
Other assets and other liabilities | (35) | (31) | 16 |
Insurance claims and policyholder liabilities | 27 | 51 | 29 |
Taxes receivable and payable | 102 | (98) | (10) |
Accrued interest and finance charges | (14) | (36) | (42) |
Restricted cash and cash equivalents not reinvested | 0 | 5 | 36 |
Other, net | 1 | 1 | (2) |
Net cash provided by operating activities | 731 | 400 | 675 |
Cash flows from investing activities | |||
Net principal collections (originations) of finance receivables held for investment and held for sale | (1,037) | 215 | 851 |
Proceeds on sales of finance receivables held for sale originated as held for investment | 78 | 3,799 | 15 |
Purchase of OneMain Financial Holdings, LLC, net of cash acquired | (3,902) | 0 | 0 |
Purchase of SpringCastle Portfolio | 0 | 0 | (2,964) |
Available-for-sale securities purchased | (525) | (351) | (555) |
Trading and other securities purchased | (1,482) | (2,978) | (10) |
Available-for-sale securities called, sold, and matured | 525 | 291 | 847 |
Trading and other securities called, sold, and matured | 3,797 | 687 | 8 |
Change in restricted cash and cash equivalents | (70) | 112 | (414) |
Proceeds from sale of real estate owned | 14 | 59 | 109 |
Other, net | (36) | (13) | (10) |
Net cash provided by (used for) investing activities | (2,638) | 1,821 | (2,123) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt, net of commissions | 3,027 | 3,557 | 6,296 |
Proceeds from issuance of common stock, net of offering costs | 976 | 0 | 231 |
Repayments of long-term debt | (1,960) | (4,691) | (6,435) |
Contributions from joint venture partners | 0 | 0 | 438 |
Distributions to joint venture partners | (78) | (638) | (204) |
Excess tax benefit from share-based compensation | 3 | 0 | 0 |
Net cash provided by (used for) financing activities | 1,968 | (1,772) | 326 |
Effect of exchange rate changes on cash and cash equivalents | (1) | (1) | (1) |
Net change in cash and cash equivalents | 60 | 448 | (1,123) |
Cash and cash equivalents at beginning of period | 879 | 431 | 1,554 |
Cash and cash equivalents at end of period | 939 | 879 | 431 |
Supplemental cash flow information | |||
Interest paid | (594) | (541) | (724) |
Income taxes received (paid) | 38 | (375) | (113) |
Supplemental non-cash activities | |||
Transfer of finance receivables to real estate owned | 11 | 49 | 93 |
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 617 | 6,902 | 18 |
Net unsettled investment security purchases | $ 0 | $ (7) | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) is referred to in this report as “OMH” or, collectively with its subsidiaries, whether directly or indirectly owned, the “Company,” “we,” “us,” or “our”. OMH is a Delaware corporation. At December 31, 2015 , Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”). On November 15, 2015, OMH completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for $4.5 billion in cash (the “OneMain Acquisition”). In connection with the OneMain Acquisition, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (previously defined above as “OMH”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. See Note 2 for further information on the OneMain Acquisition. OMH is a financial services holding company whose principal subsidiaries are Springleaf Finance, Inc. (“SFI”) and Independence Holdings, LLC (“Independence”), a newly created subsidiary. SFI’s principal subsidiary is Springleaf Finance Corporation (“SFC”), and Independence’s principal subsidiary is OMFH. SFC and OMFH are financial services holding companies with subsidiaries engaged in the consumer finance and insurance businesses. OMFH, collectively with its subsidiaries, is referred to in this report as “OneMain”. OMH and its subsidiaries (other than OneMain) is referred to in this report as “Springleaf”. The results of OneMain are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup. At December 31, 2015 , we had $15.4 billion of net finance receivables due from approximately 2.5 million customer accounts. Our network of over 1,900 branch offices in 43 states, as of December 31, 2015 , is complemented by our centralized operations, which provides support to our branch operations. At December 31, 2015 , we had approximately 11,400 employees. |
OneMain Acquisition
OneMain Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
OneMain Acquisition | OneMain Acquisition On November 15, 2015, pursuant to a Stock Purchase Agreement, dated March 2, 2015, OMH completed its acquisition of OneMain from Citigroup for $4.5 billion in cash after accounting for certain estimated adjustments at closing. The purchase price for the OneMain Acquisition was based on OMFH's balance sheet as of 11:59 p.m. on October 31, 2015 and all earnings and losses of OMFH generated or incurred, as the case may be, during the period after October 31, 2015 to the closing date of the OneMain Acquisition were for the account of OMH. As a result, the results of OneMain are included in our consolidated results from November 1, 2015. OneMain is a leading consumer finance company in the United States, providing personal loans to primarily middle income households through a national, community based network of over 1,100 branches in 43 states. In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain of its subsidiaries (collectively, the “Branch Sellers”) entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across eleven states as a condition for approval of the OneMain Acquisition. The Settlement Agreement requires the Branch Sellers to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. In connection with the Settlement Agreement, the U.S. District of Court for the District of Columbia appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement. On November 12, 2015, the Branch Sellers entered into an agreement with Lendmark Financial Services, LLC (“Lendmark”), to sell the branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103% , plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that has accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $695 million and Lendmark is unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, Springleaf transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. At December 31, 2015, the personal loans held for sale totaled approximately $617 million , primarily due to originations, net of charge-offs of personal loans in these branches during the fourth quarter of 2015. These branches represent 6% of the branches and approximately 4% of the personal loans held for investment and held for sale of the combined company as of December 31, 2015. The closing of the Lendmark Sale is subject to various conditions. There can be no assurance that the Lendmark Sale will close, or if it does, when the closing will occur. In the event that the Branch Sellers have not completed the sale of these branches within 120 days after November 13, 2015, as such time period may be extended pursuant to the Settlement Agreement, the court may appoint a divestiture trustee to conduct the sale of such assets. In this case, the divestiture trustee would have the power to accomplish the divestiture of such assets to an acquirer or acquirers acceptable to the DOJ, and the Branch Sellers would have no right to object to a sale by the divestiture trustee on any ground other than the divestiture trustee’s malfeasance. Accordingly, the asset divesture could occur on terms less favorable to the Branch Sellers than the Lendmark Sale. As of December 31, 2015 , we have incurred approximately $62 million of acquisition-related expenses relating to the OneMain Acquisition and the Lendmark Sale, which we report in acquisition-related transaction and integration expenses, as a component of operating expenses. These expenses include transaction costs, technology termination and certain compensation and benefit related costs. We financed the purchase price using a combination of available cash, proceeds from the sale of investment securities and existing Springleaf conduit facilities. On November 12, 2015, OMH contributed $1.1 billion to Independence, a newly created, wholly-owned subsidiary of OMH, and on the same date, Springleaf Financial Cash Services, Inc., a wholly-owned subsidiary of SFC, provided Independence with $3.4 billion cash pursuant to the terms of an intercompany, revolving demand note agreement. The note is payable in full on December 31, 2019, and is prepayable in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. On November 15, 2015, Independence used the combined proceeds to complete its acquisition of OneMain. We allocated the purchase price to the net tangible and intangible assets acquired and liabilities assumed, based on their respective estimated fair values as of October 31, 2015. Given the timing of this transaction and complexity of the purchase accounting, our estimate of the fair value adjustment specific to the acquired loans and intangible assets is preliminary. In addition, our determination of the final tax positions with Citigroup is also preliminary. We intend to finalize the accounting for these matters as soon as reasonably possible. Separately, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill if new information, which existed as of the acquisition date, comes to our attention. On February 24, 2016, we reached final agreement with Citigroup on certain purchase accounting adjustments. The final adjustment will result in an additional payment by Citigroup of $23 million . We anticipate receiving these proceeds during first quarter of 2016 and reflecting the full amount as an adjustment to goodwill. The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) Amounts Cash consideration $ 4,478 Fair value of assets acquired: Cash and cash equivalents (a) 958 Investment securities 1,294 Personal loans 8,801 Intangibles (b) 555 Other assets (c) 247 Fair value of liabilities assumed: Long-term debt (7,725 ) Unearned premium, insurance policy and claims reserves (d) (936 ) Other liabilities (e) (156 ) Goodwill (f) $ 1,440 (a) Cash and cash equivalents includes restricted cash and cash equivalents. (b) Goodwill and intangibles were recorded at OMFH subsidiary level. (c) Other assets consist of deferred tax assets, premises and equipment, and other acquired assets. (d) Unearned premium, insurance policy and claims reserves includes $409 million related to unearned premium and claims reserves, which is presented as a contra-asset on the balance sheet. (e) Other liabilities consist of accounts payable, accrued expenses, and other assumed liabilities. The goodwill recognized from the OneMain Acquisition reflects the strategic benefits and opportunities of the combined company previously discussed. All of the goodwill is reported in our Consumer and Insurance segment and $1.4 billion is expected to be deductible for tax purposes. See Note 9 for a reconciliation of the carrying amount of goodwill at the beginning and end of 2015 . In connection with the allocation of the purchase price, we identified the following intangible assets: (dollars in millions) Amount Estimated Useful Life Trade names $ 220 Indefinite Customer relationships 205 6 years Value of business acquired (“VOBA”) 105 5-30 years Licenses 25 Indefinite Total $ 555 Interest income and net loss of OMFH subsequent to the effective closing date of the acquisition of October 31, 2015 were as follows: (dollars in millions) Two Months Ended December 31, 2015 Interest income $ 246 Net loss (187 ) The following unaudited pro forma information presents the combined results of operations of Springleaf and OneMain as if the OneMain Acquisition had occurred on January 1, 2014. The unaudited pro forma information also reflects adjustments for (i) the financing arrangements; (ii) the 2014 Springleaf real estate loan sales; and (iii) the anticipated sale of certain personal loans classified as finance receivables held for sale in connection with the Lendmark Sale, as if the transactions had been consummated on January 1, 2014. In addition, the pro forma interest income assumes the adjustment of historical finance charges for estimated impacts of accounting for credit impaired loans. The unaudited pro forma information is not necessarily indicative of the operating results that would have been achieved had the OneMain Acquisition occurred on January 1, 2014. In addition, the unaudited pro forma financial information does not purport to project the future operating results of the combined company following the OneMain Acquisition. The following table presents the unaudited pro forma financial information: (dollars in millions) Years Ended December 31, 2015 2014 Interest income $ 3,216 $ 3,104 Net income (loss) attributable to OneMain Holdings, Inc. (203 ) 57 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated balance sheet and consolidated cash flow statement. To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 4 for further information on the adoption of this ASU. ACCOUNTING POLICIES Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2015 , our three segments include: • Consumer and Insurance; • Acquisitions and Servicing; and • Real Estate. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) Springleaf legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) Springleaf liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) Springleaf lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of Springleaf United Kingdom subsidiary. Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. A significant portion of insurance claims and policyholder liabilities originate from the finance receivables. Historically, our policy has been to report them as liabilities and not net them against finance receivables; however, during the fourth quarter of 2015, we changed our presentation of unearned premiums and certain unpaid claim liabilities in the consolidated balance sheets as a reduction to net finance receivables. We believe this presentation is preferable as it aligns more closely with the presentation of these balances with our peers. We retrospectively applied this change in presentation in our consolidated balance sheets as of December 31, 2014 to ensure comparability across reporting periods. Similarly we will change comparable prior periods in our Forms 10-Q which we plan to file in 2016. As this is a change in balance sheet presentation only, there is no effect on net income (loss) or net income (loss) attributable to OMH. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the loans acquired through a joint venture in which we own a 47% equity interest (the “SpringCastle Portfolio”), and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (ii) may have been previously modified, or (iii) had other indications of impairment as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is charged-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its carrying amount with the carrying amount being determined using the pro-rata method (the unpaid principal balance (“UPB”) of the particular finance receivable divided by the UPB of the pool multiplied by the carrying amount of the pool). Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool. If a finance receivable is removed from the pool because it is charged-off, it is removed at its carrying amount with a charge to the provision for finance receivable losses. Troubled Debt Restructured Finance Receivables We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the Consolidated Statements of Operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. Real Estate Owned We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. Reserve for Sales Recourse Obligations When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. Goodwill and Other Intangible Assets At the time we initially recognize goodwill or other intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of goodwill, the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we determined to have indefinite lives. For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. VOBA is the present value of future profits (“PVFP”) of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with ASC Topic 944. For goodwill and indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Policy and Claim Reserves Policy reserves for credit life, credit disability, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. Investment Securities We generally classify our investment securities a |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Troubled Debt Restructurings In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure , which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated financial statements. Debt Issuance Costs In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest , which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our consolidated financial statements. In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest , to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements. Push-down Accounting In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting , to remove Securities and Exchange Commission (the “SEC”) staff guidance on push-down accounting from the Accounting Standards Codification (“ASC”). The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own push-down accounting guidance in November 2014. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements. Plan Accounting In July of 2015, the FASB issued ASU 2015-12, Plan Accounting , to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements. Business Combination Adjustments In September of 2015, the FASB issued ASU 2015-16, Business Combinations , to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of December 31, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements. Consolidation In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis , which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements. Short-Duration Insurance Contracts Disclosures In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of the adoption the ASU on our consolidated financial statements. Technical Corrections and Improvements In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements , to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of the adoption of this ASU on our consolidated financial statements. Balance Sheet Classification of Deferred Taxes In November of 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation and requires all deferred tax assets (“DTAs”) and liabilities (“DTLs”), along with related valuation allowances, to be classified as noncurrent. In essence, each jurisdiction will have only one net noncurrent DTA/DTL. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning December 15, 2016. Early adoption is permitted and may be applied either prospectively or retrospectively. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncement issued during 2015, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below: • Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of three to six years . At December 31, 2015 , $2.8 billion of personal loans, or 21% , were secured by collateral consisting of titled personal property (such as automobiles) and $10.5 billion , or 79% , were secured by consumer household goods or other items of personal property or were unsecured, compared to $1.9 billion of personal loans, or 49% , secured by collateral consisting of titled personal property and $1.9 billion , or 51% , secured by consumer household goods or other items of personal property or unsecured at December 31, 2014. • SpringCastle Portfolio — includes unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. • Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months , and are considered non-conforming. At December 31, 2015 , $202 million of real estate loans, or 39% , were secured by first mortgages and $322 million , or 61% , were secured by second mortgages, compared to $227 million of real estate loans, or 36% , secured by first mortgages and $398 million , or 64% , secured by second mortgages at December 31, 2014. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans are in a liquidating status. • Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months . Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status. Components of net finance receivables by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Gross receivables * $ 15,325 $ 1,545 $ 520 $ 25 $ 17,415 Unearned finance charges and points and fees (2,261 ) — — (2 ) (2,263 ) Accrued finance charges 147 31 4 — 182 Deferred origination costs 56 — — — 56 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Gross receivables * $ 4,493 $ 1,941 $ 621 $ 52 $ 7,107 Unearned finance charges and points and fees (765 ) — (1 ) (5 ) (771 ) Accrued finance charges 58 38 5 1 102 Deferred origination costs 45 — — — 45 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. Included in the table above are finance receivables associated with securitizations that remain on our balance sheet. At December 31, 2015 and December 31, 2014 , the carrying values of these finance receivables totaled $11.4 billion and $1.9 billion , respectively, for our personal loans and $1.6 billion and $2.0 billion , respectively, for our SpringCastle Portfolio loans. Unused lines of credit extended to customers by the Company were as follows: (dollars in millions) December 31, 2015 2014 Personal loans $ 2 $ 1 SpringCastle Portfolio 365 354 Real estate loans 30 31 Total $ 397 $ 386 Unused lines of credit on our personal loans can be suspended if one of the following occurs: (i) the value of the collateral declines significantly; (ii) we believe the borrower will be unable to fulfill the repayment obligations; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (i) the value of the real estate declines significantly below the property’s initial appraised value; (ii) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (iii) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion. Accordingly, no reserve has been recorded for the unused lines of credit. GEOGRAPHIC DIVERSIFICATION Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. However, the unemployment and housing market stresses in the U.S. have been national in scope and not limited to a particular region. The largest concentrations of net finance receivables were as follows: December 31, 2015 2014 * (dollars in millions) Amount Percent Amount Percent North Carolina $ 1,356 9 % $ 634 10 % Texas 1,198 8 237 4 Pennsylvania 950 6 388 6 California 928 6 533 8 Ohio 769 5 388 6 Virginia 707 5 349 5 Illinois 663 4 412 6 Georgia 654 4 283 4 Other 8,165 53 3,259 51 Total $ 15,390 100 % $ 6,483 100 % * December 31, 2014 concentrations of net finance receivables are presented in the order of December 31, 2015 state concentrations. CREDIT QUALITY INDICATORS We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators. We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. Delinquent Finance Receivables We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. The following is a summary of net finance receivables by type and by days delinquent: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Net finance receivables: 60-89 days past due $ 124 $ 22 $ 18 $ — $ 164 90-119 days past due 93 14 3 — 110 120-149 days past due 54 11 2 1 68 150-179 days past due 50 10 2 — 62 180 days or more past due 4 1 12 — 17 Total delinquent finance receivables 325 58 37 1 421 Current 12,776 1,475 474 22 14,747 30-59 days past due 166 43 13 — 222 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Net finance receivables: 60-89 days past due $ 37 $ 31 $ 12 $ 1 $ 81 90-119 days past due 30 19 9 — 58 120-149 days past due 24 16 5 1 46 150-179 days past due 21 14 4 — 39 180 days or more past due 2 2 12 — 16 Total delinquent finance receivables 114 82 42 2 240 Current 3,661 1,839 565 45 6,110 30-59 days past due 56 58 18 1 133 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 Nonperforming Finance Receivables We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss. Our performing and nonperforming net finance receivables by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Performing $ 13,066 $ 1,540 $ 505 $ 22 $ 15,133 Nonperforming 201 36 19 1 257 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Performing $ 3,754 $ 1,928 $ 595 $ 47 $ 6,324 Nonperforming 77 51 30 1 159 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transactions: • OneMain Acquisition — effective November 1, 2015, we acquired personal loans (the “OM Loans”), some of which were determined to be credit impaired. We recorded the acquired loans at their fair value of $ 734 million on November 1, 2015, and determined at this date that these loans with contractually required principal and interest of $1.8 billion and expected undiscounted cash flows of $899 million were credit impaired. • Joint venture acquisition of the SpringCastle Portfolio (the “SCP Loans”) — on April 1, 2013, we acquired a 47% equity interest in the SCP Loans, certain of which were determined to be credit impaired on the date of purchase. • Fortress Acquisition — we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value. We report the carrying amount (which initially was the fair value) of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below. At December 31, 2015 and December 31, 2014 , finance receivables held for sale totaled $796 million and $205 million , respectively. See Note 7 for further information on our finance receivables held for sale, which consist of certain of our personal loans and non-core real estate loans. Finance receivables held for sale include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below. Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans * Total December 31, 2015 Carrying amount, net of allowance $ 624 $ 223 $ 76 $ 923 Outstanding balance 911 482 136 1,529 Allowance for purchased credit impaired finance receivable losses — — 7 7 December 31, 2014 Carrying amount, net of allowance $ — $ 340 $ 93 $ 433 Outstanding balance — 628 151 779 Allowance for purchased credit impaired finance receivable losses — — 5 5 * Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2015 2014 Carrying amount $ 55 $ 68 Outstanding balance 89 99 The allowance for purchased credit impaired finance receivable losses at December 31, 2015 and 2014 , reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows. Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2015 Balance at beginning of period $ — $ 541 $ 19 $ 560 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (14 ) (83 ) (10 ) (107 ) Reclassifications from nonaccretable difference (b) — — 31 31 Disposals of finance receivables (c) (9 ) (36 ) (1 ) (46 ) Balance at end of period $ 143 $ 422 $ 39 $ 604 Year Ended December 31, 2014 Balance at beginning of period $ — $ 325 $ 772 $ 1,097 Accretion (a) — (80 ) (81 ) (161 ) Reclassifications from nonaccretable difference (b) — 331 — 331 Transfers due to finance receivables sold — — (656 ) (656 ) Disposals of finance receivables (c) — (35 ) (16 ) (51 ) Balance at end of period $ — $ 541 $ 19 $ 560 Year Ended December 31, 2013 Balance at beginning of period $ — $ — $ 629 $ 629 Additions — 438 — 438 Accretion — (77 ) (129 ) (206 ) Reclassifications from nonaccretable difference (b) — — 305 305 Disposals of finance receivables (c) — (36 ) (33 ) (69 ) Balance at end of period $ — $ 325 $ 772 $ 1,097 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2015 2014 Accretion $ 6 $ 14 (b) Reclassifications from nonaccretable difference represents the increases in accretion resulting from higher estimated undiscounted cash flows. (c) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total December 31, 2015 TDR gross finance receivables (b) $ 46 $ 14 $ 200 $ 260 TDR net finance receivables 46 13 201 260 Allowance for TDR finance receivable losses 17 4 34 55 December 31, 2014 TDR gross finance receivables (b) $ 22 $ 11 $ 196 $ 229 TDR net finance receivables 22 10 196 228 Allowance for TDR finance receivable losses 1 3 32 36 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 December 31, 2014 TDR gross finance receivables $ — $ 91 $ 91 TDR net finance receivables — 91 91 (b) As defined earlier in this Note. We have no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 TDR average net receivables (b) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 Year Ended December 31, 2014 TDR average net receivables $ 17 $ 5 $ 957 $ 979 TDR finance charges recognized 2 1 48 51 Year Ended December 31, 2013 TDR average net receivables $ 15 $ — $ 1,120 $ 1,135 TDR finance charges recognized 1 — 63 64 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2015 TDR average net receivables * $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables ** $ — $ 250 $ 250 TDR finance charges recognized — 5 5 * TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. ** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. (b) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables. The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months. Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 48 $ 7 $ 21 $ 76 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (b) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,425 721 385 9,531 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ 18 $ 10 $ 215 $ 243 Post-modification TDR net finance receivables: Rate reduction $ 10 $ 10 $ 158 $ 178 Other (b) 6 — 46 52 Total post-modification TDR net finance receivables $ 16 $ 10 $ 204 $ 230 Number of TDR accounts 4,213 1,155 2,385 7,753 Year Ended December 31, 2013 Pre-modification TDR net finance receivables $ 15 $ — $ 576 $ 591 Post-modification TDR net finance receivables: Rate reduction $ 8 $ — $ 554 $ 562 Other (b) 4 — 51 55 Total post-modification TDR net finance receivables $ 12 $ — $ 605 $ 617 Number of TDR accounts 3,240 — 7,106 10,346 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 (b) “Other” modifications include extension of term and forgiveness of principal or interest. Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming ( 90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,655 147 46 1,848 Year Ended December 31, 2014 TDR net finance receivables (b) $ 1 $ 1 $ 33 $ 35 Number of TDR accounts 141 53 524 718 Year Ended December 31, 2013 TDR net finance receivables (b) $ 1 $ — $ 69 $ 70 Number of TDR accounts 355 — 929 1,284 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2015 Balance at beginning of period $ 132 $ 3 $ 40 $ 1 $ 176 Provision for finance receivable losses 655 88 14 2 759 Charge-offs (292 ) (99 ) (19 ) (3 ) (413 ) Recoveries 47 12 6 1 66 Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a) (1 ) — — — (1 ) Balance at end of period $ 541 $ 4 $ 41 $ 1 $ 587 Year Ended December 31, 2014 Balance at beginning of period $ 95 $ 1 $ 235 $ 2 $ 333 Provision for finance receivable losses 205 152 114 3 474 Charge-offs (b) (193 ) (164 ) (76 ) (5 ) (438 ) Recoveries (c) 25 14 7 1 47 Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (d) — — (240 ) — (240 ) Balance at end of period $ 132 $ 3 $ 40 $ 1 $ 176 Year Ended December 31, 2013 Balance at beginning of period $ 67 $ — $ 114 $ 2 $ 183 Provision for finance receivable losses 130 133 265 (1 ) 527 Charge-offs (e) (149 ) (138 ) (160 ) (9 ) (456 ) Recoveries (f) 48 6 16 10 80 Transfers to finance receivables held for sale (g) (1 ) — — — (1 ) Balance at end of period $ 95 $ 1 $ 235 $ 2 $ 333 (a) During 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. (b) Charge-offs during 2014 included a $4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. (c) Recoveries during 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. (d) During 2014, we reduced the carrying value of certain real estate loans to $6.7 billion as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. (e) Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13 million of additional charge-offs in March 2013. (f) Recoveries in 2013 included $37 million ( $23 million of personal loan recoveries, $9 million of real estate loan recoveries, and $5 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4 million adjustment for the subsequent buyback of certain finance receivables. (g) During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $431 million at December 31, 2015 and $72 million at December 31, 2014 . See Note 13 for further discussion regarding our securitization transactions. The carrying value charged-off for purchased credit impaired loans was as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Charged-off against provision for finance receivable losses: OM Loans $ 30 $ — $ — SCP Loans 21 48 72 FA Loans gross charge-offs * 1 15 42 * Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Allowance for finance receivable losses for finance receivables: Collectively evaluated for impairment $ 524 $ — $ — $ 1 $ 525 Acquired with deteriorated credit quality (purchased credit impaired finance receivables) — — 7 — 7 Individually evaluated for impairment (TDR finance receivables) 17 4 34 — 55 Total $ 541 $ 4 $ 41 $ 1 $ 587 Finance receivables: Collectively evaluated for impairment $ 12,599 $ 1,340 $ 387 $ 23 $ 14,349 Purchased credit impaired finance receivables 624 223 28 — 875 TDR finance receivables 44 13 109 — 166 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 Allowance for finance receivable losses as a percentage of finance receivables 4.07 % 0.27 % 7.93 % 3.45 % 3.81 % December 31, 2014 Allowance for finance receivable losses for finance receivables: Collectively evaluated for impairment $ 131 $ — $ 3 $ 1 $ 135 Purchased credit impaired finance receivables — — 5 — 5 TDR finance receivables 1 3 32 — 36 Total $ 132 $ 3 $ 40 $ 1 $ 176 Finance receivables: Collectively evaluated for impairment $ 3,809 $ 1,629 $ 490 $ 48 $ 5,976 Purchased credit impaired finance receivables — 340 30 — 370 TDR finance receivables 22 10 105 — 137 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 Allowance for finance receivable losses as a percentage of finance receivables 3.45 % 0.14 % 6.42 % 1.56 % 2.71 % See Note 3 for additional information on the determination of the allowance for finance receivable losses. |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $796 million at December 31, 2015 and $205 million at December 31, 2014 , which are carried at the lower of cost or fair value. At December 31, 2015 and 2014 , the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our consolidated statements of operations, which totaled $61 million in each of 2015 and 2014 . On September 30, 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. See Note 2 for further information on this transfer. During 2014, we transferred $6.7 billion of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2014, we sold finance receivables held for sale totaling $6.4 billion and recorded a net gain of $726 million . At December 31, 2015 and 2014 , the remaining holdback provision relating to these real estate sales totaled $5 million and $64 million , respectively. During 2013, we transferred $17 million of finance receivables (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2013, we sold finance receivables held for sale totaling $18 million and recorded a loss in other revenues at the time of sale of $2 million . We did not have any transfer activity from finance receivables held for sale to finance receivables held for investment during 2015, 2014 or 2013. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2015 Fixed maturity available-for-sale securities: Bonds: U.S. government and government sponsored entities $ 112 $ — $ (1 ) $ 111 Obligations of states, municipalities, and political subdivisions 140 1 (1 ) 140 Non-U.S. government and government sponsored entities 126 1 (1 ) 126 Corporate debt 1,018 3 (22 ) 999 Mortgage-backed, asset-backed, and collateralized: Residential mortgage-backed securities (“RMBS”) 128 — — 128 Commercial mortgage-backed securities (“CMBS”) 117 — (1 ) 116 Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) 71 — — 71 Total bonds 1,712 5 (26 ) 1,691 Preferred stock 14 — (1 ) 13 Common stock 23 — — 23 Other long-term investments 2 — — 2 Total (a) $ 1,751 $ 5 $ (27 ) $ 1,729 December 31, 2014 Fixed maturity available-for-sale securities: Bonds: U.S. government and government sponsored entities $ 61 $ 3 $ — $ 64 Obligations of states, municipalities, and political subdivisions 99 3 — 102 Certificates of deposit and commercial paper (b) 3 — — 3 Corporate debt 256 12 (1 ) 267 Mortgage-backed, asset-backed, and collateralized: RMBS 71 2 — 73 CMBS 25 — (1 ) 24 CDO/ABS 63 — — 63 Total bonds 578 20 (2 ) 596 Preferred stock 7 — — 7 Other long-term investments 1 — — 1 Total (a) $ 586 $ 20 $ (2 ) $ 604 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 and 2014 , which is classified as a restricted investment and carried at cost. (b) Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014 , primarily to support bank lines of credit. As of December 31, 2015 , we had less than $1 million of available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss, and, as of December 31, 2014 , we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2015 Bonds: U.S. government and government sponsored entities $ 102 $ (1 ) $ — $ — $ 102 $ (1 ) Obligations of states, municipalities, and political subdivisions 69 (1 ) 2 — 71 (1 ) Non-U.S. government and government sponsored entities 19 (1 ) — — 19 (1 ) Corporate debt 786 (22 ) 7 — 793 (22 ) RMBS 107 — — — 107 — CMBS 104 (1 ) 5 — 109 (1 ) CDO/ABS 71 — — — 71 — Total bonds 1,258 (26 ) 14 — 1,272 (26 ) Preferred stock 2 — 6 (1 ) 8 (1 ) Common stock 16 — — — 16 — Other long-term investments 1 — — — 1 — Total $ 1,277 $ (26 ) $ 20 $ (1 ) $ 1,297 $ (27 ) December 31, 2014 Bonds: U.S. government and government sponsored entities $ — $ — $ 1 $ — $ 1 $ — Obligations of states, municipalities, and political subdivisions 27 — 1 — 28 — Corporate debt 36 (1 ) 6 — 42 (1 ) RMBS 9 — — — 9 — CMBS 16 (1 ) 2 — 18 (1 ) CDO/ABS 46 — — — 46 — Total bonds 134 (2 ) 10 — 144 (2 ) Preferred stock 6 — — — 6 — Total $ 140 $ (2 ) $ 10 $ — $ 150 $ (2 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. We do not consider the above unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2015, we have no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential impairments. During 2015 , we recognized $1 million of other-than-temporary impairment credit loss write-downs on corporate debt to investment revenues. During 2014 and 2013 , we did not recognize any other-than-temporary credit loss write-downs to investment revenues. Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: (dollars in millions) At or for the Years Ended December 31, 2015 Balance at beginning of period $ 1 Additions: Due to other-than-temporary impairments: Impairment not previously recognized 1 Balance at end of period $ 2 During 2014 and 2013 , there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities. The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Proceeds from sales and redemptions $ 431 $ 280 $ 615 Realized gains $ 15 $ 9 $ 5 Realized losses (1 ) (1 ) (2 ) Net realized gains $ 14 $ 8 $ 3 Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2015 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 170 $ 170 Due after 1 year through 5 years 602 607 Due after 5 years through 10 years 419 424 Due after 10 years 185 195 Mortgage-backed, asset-backed, and collateralized securities 315 316 Total $ 1,691 $ 1,712 Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies. The fair value of bonds on deposit with insurance regulatory authorities totaled $152 million at December 31, 2015 , including $141 million of OneMain bonds as a result of the OneMain Acquisition, compared to $12 million at December 31, 2014 . TRADING AND OTHER SECURITIES The fair value of trading and other securities by type was as follows: (dollars in millions) December 31, 2015 2014 Fixed maturity trading and other securities: Bonds: U.S. government and government sponsored entities $ — $ 303 Obligations of states, municipalities, and political subdivisions — 14 Certificates of deposit and commercial paper — 238 Non-U.S. government and government sponsored entities 3 20 Corporate debt 124 1,056 Mortgage-backed, asset-backed, and collateralized: RMBS 2 36 CMBS 2 151 CDO/ABS — 512 Total bonds 131 2,330 Preferred stock 6 — Total * $ 137 $ 2,330 * The fair value of other securities totaled $128 million at December 31, 2015 and $5 million at December 31, 2014 . The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2015 2014 Net unrealized losses on trading and other securities held at year end * $ — $ (9 ) Net realized gains (losses) on trading and other securities sold or redeemed during the year * (3 ) 5 Total $ (3 ) $ (4 ) * The net unrealized and realized gains (losses) on our other securities for the year ended December 31, 2013 were less than $1 million and, therefore, are not quantified in the table above. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets GOODWILL As a result of the OneMain Acquisition, OMFH recorded $1.4 billion of goodwill in November of 2015, which we report in our Consumer and Insurance segment. See Note 2 for further information on how the goodwill was determined. Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment were as follows: (dollars in millions) Consumer and Insurance Year Ended December 31, 2015 Balance at beginning of period $ — Goodwill - OneMain Acquisition * 1,440 Balance at end of period $ 1,440 * Goodwill was recorded at OMFH subsidiary level. We did not record any impairments to goodwill during 2015. OTHER INTANGIBLE ASSETS The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount * Accumulated Amortization Net Other Intangible Assets December 31, 2015 Customer relationships 223 (24 ) 199 Trade names 220 — 220 VOBA 141 (39 ) 102 Licenses 37 — 37 Customer lists 9 (9 ) — Domain names 1 — 1 Total $ 631 $ (72 ) $ 559 December 31, 2014 Customer relationships $ 18 $ (15 ) $ 3 VOBA 36 (32 ) 4 Licenses 12 — 12 Customer lists 9 (8 ) 1 Domain names 1 — 1 Total $ 76 $ (55 ) $ 21 * In connection with the OneMain Acquisition, OMFH recorded $555 million of other intangible assets in November of 2015. See Note 2 for further information on the other intangibles related to the OneMain Acquisition. Amortization expense totaled $16 million in 2015 , $4 million in 2014 , and $5 million in 2013 . The estimated aggregate amortization of other intangible assets for each of the next 5 years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2016 $ 67 2017 52 2018 44 2019 40 2020 38 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Components of other assets were as follows: (dollars in millions) December 31, 2015 2014 Fixed assets, net (a) $ 179 $ 91 Deferred tax asset 120 — Ceded insurance reserves 107 22 Other investments (b) 92 104 Prepaid expenses and deferred charges (c) 59 26 Current tax receivable (d) 20 103 Escrow advance receivable 11 8 Cost basis investments 11 — Real estate owned 8 13 Receivables related to sales of real estate loans and related trust assets (e) 5 79 Other 26 18 Total $ 638 $ 464 (a) Fixed assets were net of accumulated depreciation of $190 million at December 31, 2015 and $170 million at December 31, 2014 . (b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. (c) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of December 31, 2014 . (d) Current tax receivable includes current federal, foreign, and state tax assets. (e) Receivables related to sales of real estate loans and related trust assets includes $5 million and $64 million , respectively, of holdback provisions as of December 31, 2015 and 2014 . |
Transactions with Affiliates of
Transactions with Affiliates of Fortress or AIG | 12 Months Ended |
Dec. 31, 2015 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Transactions with Affiliates of Fortress or AIG | Transactions with Affiliates of Fortress or AIG FORTRESS AFFILIATED TRANSACTIONS Subservicing Agreement Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of $2 million in 2015 , $5 million in 2014 , and $9 million in 2013 . As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014, our exposure to these affiliated services is reduced. Investment Management Agreement Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1 million in 2015 , 2014 , and 2013 . Joint Venture Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress. Third Street Disposition On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress. MSR Sale SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary of SFC, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million . In May of 2015, Nationstar paid off the remaining balance of $1 million of this receivable. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. AIG AFFILIATED TRANSACTIONS As a result of the offering of our common stock in May of 2015, the economic interests of American International Group, Inc. (“AIG”) is no longer material; therefore, the discussion of AIG affiliated transactions below only relates to 2014 and 2013. Reinsurance Agreements Merit Life Insurance Co. (“Merit”), SFC’s indirect wholly owned insurance subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit disability insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $44 million at December 31, 2014 . Insurance Coverage We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies totaled $1 million in 2014 and 2013 . Derivatives On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement with AIG Financial Products Corp. (“AIGFP”) and recorded a loss of $2 million in other revenues — other. The notional amount of this swap agreement totaled $417 million at August 5, 2013. Immediately following this termination, we had no derivative financial instruments. As a result of this termination, AIGFP returned the remaining cash collateral of $40 million to SFI that SFI had posted as security for SFC’s swap agreement with AIGFP. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Carrying value and fair value of long-term debt by type were as follows: December 31, 2015 December 31, 2014 (dollars in millions) Carrying Value Fair Value Carrying Value * Fair Value Senior debt $ 17,128 $ 17,371 $ 8,184 $ 8,920 Junior subordinated debt 172 245 172 262 Total $ 17,300 $ 17,616 $ 8,356 $ 9,182 * As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt - senior debt as of December 31, 2014 . Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2015 2014 2013 2015 2014 Senior debt 6.56 % 6.84 % 6.75 % 5.32 % 7.16 % Junior subordinated debt 12.26 12.26 12.26 12.26 12.26 Total 6.65 6.93 6.82 5.39 7.26 Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2015 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.41% - 6.94% 1.65% - 3.65% 5.25% - 8.25% 6.00% First quarter 2016 $ — $ — $ — $ — $ — Second quarter 2016 — — — — — Third quarter 2016 — — 375 — 375 Fourth quarter 2016 — — — — — 2016 — — 375 — 375 2017 — — 1,903 — 1,903 2018 — — — — — 2019 — — 1,400 — 1,400 2020 — — 300 — 300 2021-2067 — — 1,750 350 2,100 Securitizations (b) 9,040 — — — 9,040 Revolving conduit facilities (b) — 2,620 — — 2,620 Total principal maturities $ 9,040 $ 2,620 $ 5,728 $ 350 $ 17,738 Total carrying amount (c) $ 9,034 $ 2,620 $ 5,474 $ 172 $ 17,300 Debt issuance costs (d) $ (16 ) $ — $ (14 ) $ — $ (30 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2015 . (b) Securitizations and borrowing under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) The net carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the OneMain Acquisition or the Fortress Acquisition or (iii) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. (d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which we continue to report in other assets. GUARANTY AGREEMENTS SFC Indentures 5.25% SFC Notes. On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “5.25% SFC Notes”). As of December 31, 2015 , approximately $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. SFC Notes. On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60 -year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60 -year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2015 , approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH Indenture OMFH Notes. On December 11, 2014, OMFH and certain of its subsidiaries entered into an indenture (the “OMFH Indenture”), among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of $700 million aggregate principal amount of 6.75% Senior Notes due 2019 and $800 million in aggregate principal amount of 7.25% Senior Notes due 2021 (collectively, the “OMFH Notes”). The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2015 , approximately $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. DEBT COVENANTS SFC Debt Agreements The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. With the exception of SFC’s junior subordinated debenture, none of SFC’s debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. As of December 31, 2015 , SFC was in compliance with all of the covenants under its debt agreements. Junior Subordinated Debenture. In January 2007, SFC issued $350 million aggregate principal amount of 60 -year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January 2017. Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10 x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends). Based upon SFC’s financial results for the twelve months ended September 30, 2015, a mandatory trigger event occurred with respect to the interest payment due in January of 2016 as the average fixed charge ratio was 0.94 x. On January 11, 2016, SFC issued one share of SFC common stock to SFI for $11 million to satisfy the January 2016 interest payments required by SFC’s debenture. OMFH Debt Agreements With the exception of OMFH’s revolving conduit facility, none of OMFH’s debt agreements require OMFH or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, the OMFH Indenture does contain a number of covenants that limit, among other things, OMFH’s ability and the ability of most of its subsidiaries to incur additional debt; create liens securing certain debt; pay dividends on or make distributions in respect of its capital stock or make investments or other restricted payments; create restrictions on the ability of its restricted subsidiaries to pay dividends to OMFH or make certain other intercompany transfers; sell certain assets; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and enter into certain transactions with affiliates. The OMFH Indenture also contains customary events of default which would permit the trustee or the holders of the OMFH Notes to declare the OMFH Notes to be immediately due and payable if not cured within applicable grace periods, including the nonpayment of principal, interest or premium, if any, when due; violation of covenants and other agreements contained in the OMFH Indenture; payment default after final maturity or cross acceleration of certain material debt; certain bankruptcy and insolvency events; material judgment defaults; and the failure of any guarantee of the notes, other than in accordance with the terms of the OMFH Indenture or such guarantee. The OMFH Indenture also includes a change of control repurchase provision pursuant to which if (i) a change of control of OneMain occurs and (ii) both Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Services, Inc. (“Moody’s”) downgrade or withdraw the ratings of a specific series of the OFM Notes attributable to such change of control within 60 days after the change of control, OMFH is required to offer to purchase all of such series of the OFM Notes at a price in cash equal to 101 % of the aggregate principal amount thereof plus accrued and unpaid interest, if any, to but excluding the date of repurchase, subject to the right of holders of such series of the OMFH Notes of record on the relevant record date to receive interest due on the relevant interest payment date. The closing of the OneMain Acquisition resulted in a change of control of OneMain under the OMFH Indenture, and S&P downgraded the rating of the OMFH Notes following the closing of the OneMain Acquisition. However, Moody’s affirmed the rating of the OMFH Notes following the closing of the OneMain Acquisition and, therefore, the change of control repurchase provision was not triggered. As of December 31, 2015 , OMFH was in compliance with all of the covenants under its debt agreements. OMFH Conduit Facility. On February 3, 2015, OMFH entered into a revolving conduit facility with a borrowing capacity of $3.0 billion , backed by personal loans (the “2015 Warehouse Facility”). As of December 31, 2015 , OMFH had drawn $1.4 billion against the value of these personal loans. See Note 13 for further information on the 2015 Warehouse Facility. Pursuant to the terms of the 2015 Warehouse Facility, OMFH was required to (i) maintain minimum consolidated tangible shareholders’ equity of not less than $ 1.0 billion (the “Net Worth Covenant”) and (ii) not permit OMFH’s consolidated debt to tangible shareholders’ equity ratio to exceed 6.0 to 1.0 if a minimum draw condition exists (the “Leverage Covenant”). Based upon OMFH’s financial position at December 31, 2015 , OMFH was in compliance with its financial target and ratio. On January 21, 2016, OMFH entered into four separate bilateral conduit facilities with unaffiliated financial institutions that provide an aggregate $ 2.4 billion of committed financing on a revolving basis for personal loans originated by OneMain, which we refer to as the “New Facilities”. The New Facilities replaced the 2015 Warehouse Facility that was voluntarily terminated on the same date and, as a result, both of the financial covenants discussed above were eliminated. See Note 25 for further information on the replacement of the 2015 Warehouse Facility. REPURCHASE OR REPAYMENT OF DEBT SFC Debt Repurchases and Repayments In connection with our liability management efforts, we or our affiliates from time to time have purchased, or may in the future purchase, portions of our outstanding indebtedness. Any such purchases may be made through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration as we or any such affiliates may determine. Our plans are dynamic and we may adjust our plans in response to changes in our expectations and changes in market conditions. SFC Medium Term Notes. In December 2014, SFC used the proceeds from its offering of $700 million aggregate principal amount of the 5.25% SFC Notes to repurchase $9 million and $361 million aggregate principal amount of 6.50% and 6.90% , respectively, medium term notes due 2017 from certain beneficial owners of the notes. SFC recorded a net loss of $20 million related to the partial extinguishment on this debt repurchase and capitalized $57 million related to a partial modification on this debt repurchase. Additionally, in December 2014, SFC repurchased $23 million and $66 million aggregate principal amount of 6.50% and 6.90% , respectively, medium term notes due 2017. SFC recorded a net loss of $17 million related to these additional debt repurchases in December 2014. SpringCastle 2013-A Notes. On October 3, 2014, certain indirect subsidiaries of SFC associated with a joint venture in which SFC owns a 47% equity interest (the “Co-Issuers”) used the proceeds from the SpringCastle Funding Asset-backed Notes 2014-A (the “SpringCastle 2014-A Notes”) to repay in full the SpringCastle Funding Asset-backed Notes 2013-A (the “SpringCastle 2013-A Notes”), which were issued by the Co-Issuers on April 1, 2013. See Note 13 for further information on the refinance of SpringCastle 2013-A Notes. SFC recorded a net loss of $21 million related to this refinancing transaction. SFC Secured Term Loan. On March 31, 2014, Springleaf Financial Funding Company (“SFFC”) prepaid, without penalty or premium, the entire $750 million outstanding principal balance of the secured term loan, plus accrued and unpaid interest. Effective upon the prepayment, all obligations of SFFC, SFC, and the applicable consumer finance operating subsidiaries of SFC under the secured term loan (other than contingent reimbursement obligations and indemnity obligations) were terminated and all guarantees and security interests were released. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our consolidated financial statements and are accounted for as secured borrowings. CONSOLIDATED VIES We evaluated the securitization trusts and determined that these entities are VIEs of which SFC or OMFH is the primary beneficiary, and, therefore, we consolidated such entities. SFC or OMFH is deemed to be the primary beneficiary of each of these VIEs because SFC or OMFH has the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s or OMFH’s and/or their affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns. The asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each securitization trust. We retain interests in these securitization transactions, including residual interests in each securitization trust and, in some cases, subordinated securities issued by the VIEs. We retain credit risk in the securitizations through our ownership of the residual interest in each securitization trust, and, in some cases, ownership of the most subordinated class of asset-backed securities, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and the VIE liabilities if the VIE’s creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2015 2014 Assets Cash and cash equivalents (a) $ 11 $ 52 Finance receivables: Personal loans 11,424 1,853 SpringCastle Portfolio 1,576 1,979 Allowance for finance receivable losses 431 72 Finance receivables held for sale 435 — Restricted cash and cash equivalents 663 210 Other assets (a) 48 23 Liabilities Long-term debt (b) $ 11,654 $ 3,630 Other liabilities (a) 17 8 (a) In connection with our disclosure integration with OneMain, we have expanded our presentation to include cash and cash equivalents, other assets and other liabilities associated with our securitization trusts. (b) As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt. SECURITIZATION TRANSACTIONS SFC Consumer Loan Securitizations SFC 2013-A Securitization. On February 19, 2013, SFC completed a private securitization transaction in which Tenth Street Funding LLC (“Tenth Street”), a wholly owned special purpose vehicle of SFC, sold $568 million of notes backed by personal loans held by Springleaf Funding Trust 2013-A (the “2013-A Trust”), at a 2.83% weighted average yield. The notes were scheduled to mature in September 2021. SFC sold the asset-backed notes for $568 million , after the price discount but before expenses and a $7 million interest reserve requirement. SFC initially retained $36 million of the 2013-A Trust’s subordinate asset-backed notes. On December 15, 2015, Tenth Street exercised its right to redeem the asset-backed notes issued by the 2013-A Trust on February 19, 2013 (the “2013-A Notes”). To redeem the 2013-A Notes, Tenth Street paid a redemption price of $ 189 million , which excluded $ 37 million for the Class D 2013-A Notes owned by Tenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-A Notes was $ 225 million on the date of the optional redemption. SFC 2013-B Securitization. On June 19, 2013, SFC completed a private securitization transaction in which a wholly owned special purpose vehicle of SFC sold $256 million of notes backed by personal loans held by Springleaf Funding Trust 2013-B (the “2013-B Trust”), at a 4.11% weighted average yield. The notes mature in June 2023 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. SFC sold the asset-backed notes for $255 million , after the price discount but before expenses and a $4 million interest reserve requirement. SFC initially retained $114 million of the 2013-B Trust’s senior asset-backed notes (which SFC subsequently sold in 2013 and recorded $112 million of additional debt) and $30 million of the 2013-B Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. 2013-BAC Securitization. On September 25, 2013, SFC completed a private securitization transaction in which the Springleaf Funding Trust 2013-BAC (the “2013-BAC Trust”), a wholly owned special purpose vehicle of SFC, issued $500 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. SFC sold the personal loan-backed notes for gross proceeds of $500 million . On March 27, 2014, SFC repaid the entire $231 million outstanding principal balance of the notes, plus accrued and unpaid interest of the 2013-BAC Trust. SFC 2014-A Securitization. On March 26, 2014, SFC completed a private securitization transaction in which a wholly owned special purpose vehicle of SFC sold $559 million of notes backed by personal loans held by Springleaf Funding Trust 2014-A (the “2014-A Trust”), at a 2.62% weighted average yield. The notes mature in December 2022 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. SFC sold the asset-backed notes for $559 million , after the price discount but before expenses and a $6 million interest reserve requirement. SFC initially retained $33 million of the 2014-A Trust’s subordinate asset-backed notes. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. SFC 2015-A Securitization. On February 26, 2015, SFC completed a private term securitization transaction in which a wholly owned special purpose vehicle of SFC sold $1.2 billion of notes backed by personal loans held by Springleaf Funding Trust 2015-A at a 3.58% weighted average yield. The notes mature in November 2024 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. SFC sold the asset-backed notes for $1.2 billion , after the price discount but before expenses and a $12 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. SFC 2015-B Securitization. On April 7, 2015, SFC completed a private term securitization transaction in which a wholly owned special purpose vehicle of SFC sold $314 million of notes backed by personal loans held by Springleaf Funding Trust 2015-B at a 3.84% weighted average yield. The notes mature in May 2028 and have a fifty-nine month revolving period during which no principal payments are required to be made on the notes. SFC sold the asset-backed notes for $314 million , after the price discount but before expenses and a $3 million interest reserve requirement. The indenture governing the notes contains early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. OMFH Consumer Loan Securitizations As a result of the OneMain Acquisition, we acquired five on-balance sheet consumer securitizations during 2015. OMFH 2014-1 Securitization. On April 17, 2014, OMFH completed its initial securitization transaction in which OneMain Financial Issuance Trust 2014-1, a wholly owned special purpose entity of OMFH, issued fixed-rate funding notes with an initial principal balance of $760 million . The notes mature in June 2024 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. These notes are collateralized by a pool of secured and unsecured fixed rate personal loans with an aggregate unpaid principal balance of $760 million as of October 31, 2015. The indenture governing the notes contains customary early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. As of November 15, 2015, the weighted average interest rate for the notes was 2.57% . OMFH 2014-2 Securitization. On July 30, 2014, OMFH completed a securitization transaction in which the OneMain Financial Issuance Trust 2014-2, a wholly owned special purpose vehicle of OMFH, issued fixed-rate funding notes with an initial principal balance of $1.2 billion . The notes mature in September 2024 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. These notes are collateralized by a pool of secured and unsecured fixed rate personal loans with an aggregate unpaid principal balance of $1.2 billion as of October 31, 2015. The indenture governing the notes contains customary early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. As of November 15, 2015, the weighted average interest rate for the notes was 3.09% . OMFH 2015-1 Securitization. On February 5, 2015, OMFH completed a securitization transaction in which the OneMain Financial Issuance Trust 2015-1, a wholly owned special purpose vehicle of OMFH, issued fixed-rate funding notes with an initial principal balance of $1.2 billion . The notes mature in March 2026 and have a thirty-five month revolving period during which no principal payments are required to be made on the notes. These notes are collateralized by a pool of secured and unsecured fixed rate personal loans with an aggregate unpaid principal balance of $1.2 billion as of October 31, 2015. The indenture governing the notes contains customary early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. As of November 15, 2015, the weighted average interest rate for the notes was 3.88% . OMFH 2015-2 Securitization. On May 21, 2015, OMFH completed a securitization transaction in which the OneMain Financial Issuance Trust 2015-2, a wholly owned special purpose vehicle of OMFH, issued fixed-rate funding notes with an initial principal balance of $1.3 billion . The notes mature in July 2025 and have a twenty-three month revolving period during which no principal payments are required to be made on the notes. These notes are collateralized by a pool of secured and unsecured fixed rate personal loans with an aggregate unpaid principal balance of $1.3 billion as of October 31, 2015. The indenture governing the notes contains customary early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. As of November 15, 2015, the weighted average interest rate for the notes was 3.25% . OMFH 2015-3 Securitization. On September 29, 2015, OMFH completed a securitization transaction in which the OneMain Financial Issuance Trust 2015-3, a wholly owned special purpose vehicle of OMFH, issued fixed-rate funding notes with an initial principal balance of $293 million . The notes mature in November 2028 and have a fifty-nine month revolving period during which no principal payments are required to be made on the notes. These notes are collateralized by a pool of secured and unsecured fixed rate personal loans with an aggregate unpaid principal balance of $293 million as of October 31, 2015. The indenture governing the notes contains customary early amortization events and events of default, which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. As of November 15, 2015, the weighted average interest rate for the notes was 4.31% . SpringCastle Securitizations SpringCastle 2013-A Securitization. On April 1, 2013, in connection with our acquisition of an unsecured loan portfolio from HSBC, the Co-issuer LLCs sold, in a private securitization transaction, $2.2 billion of Class A Notes backed by the acquired loans. The Class A Notes were acquired by initial purchasers for $2.2 billion , after the price discount but before expenses and a $10 million advance reserve requirement. The initial purchasers sold the Class A Notes to secondary investors at a 3.75% weighted average yield. The Co-issuer LLCs retained subordinate Class B Notes with a principal balance of $372 million , which was subsequently sold in 2013 and $357 million of additional debt was recorded. SpringCastle 2014-A Securitization. On October 3, 2014, the Co-Issuers issued $2.6 billion of the SpringCastle 2014-A Notes at a 4.68% weighted average yield in a private placement transaction. The SpringCastle 2014-A Notes are collateralized by the SpringCastle Portfolio. The Co-Issuers sold the SpringCastle 2014-A Notes for approximately $2.6 billion after the price discount but before expenses. The Co-Issuers used the proceeds from the SpringCastle 2014-A Notes to repay in full on October 3, 2014 the SpringCastle 2013-A Notes. At September 30, 2014, the UPB of the SpringCastle 2013-A Notes was $1.5 billion . On October 3, 2014, Springleaf Acquisition Corporation (“SAC”) purchased $363 million initial principal amount of the SpringCastle 2014-A Notes. The Co-Issuers retained $62 million of the SpringCastle 2014-A Notes. Certain subsidiaries of NRZ own a 30% equity interest in the Co-Issuers. NRZ is managed by an affiliate of Fortress. On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015. SFC Mortgage Securitizations SFC 2013-1 Securitization. On April 10, 2013, SFC completed a private securitization transaction in which a wholly owned special purpose vehicle of SFC sold $783 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-1 (the “2013-1 Trust”), at a 2.85% weighted average yield. SFC sold the mortgage-backed notes for $782 million , after the price discount but before expenses. SFC initially retained $237 million of the 2013-1 Trust’s subordinate mortgage-backed notes. SFC 2013-2 Securitization. On July 9, 2013, SFC completed a private securitization transaction in which a wholly owned special purpose vehicle of SFC sold $599 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-2 (the “2013-2 Trust”), at a 2.88% weighted average yield. SFC sold the mortgage-backed notes for $591 million , after the price discount but before expenses. SFC initially retained $535 million of the 2013-2 Trust’s subordinate mortgage-backed notes. SFC 2013-3 Securitization. On October 9, 2013, SFC completed a private securitization transaction in which a wholly owned special purpose vehicle of SFC sold $271 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-3 (the “2013-3 Trust”), at a 3.40% weighted average yield. SFC sold the mortgage-backed notes for $269 million , after the price discount but before expenses. SFC initially retained $229 million of the 2013-3 Trust’s subordinate mortgage-backed notes. Sales of Previously Retained Mortgage-backed Notes During 2013, SFC sold the following previously retained mortgage-backed notes: (dollars in millions) Principal Amount of Previously Retained Notes Issued Carrying Amount of Additional Debt Recorded Mortgage Securitizations SLFMT 2012-2 $ 20 $ 21 SLFMT 2012-3 8 8 SLFMT 2013-2 158 149 SLFMT 2013-3 23 23 During 2014, our remaining beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions were sold in a series of separate transactions. As a result of these sales, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. REVOLVING CONDUIT FACILITIES SFC Conduit Facilities Midbrook 2013-VFN1 Securitization. On September 26, 2013, SFC established a private securitization facility in which the Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, could issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but could be funded from time to time over a one -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes could also be paid down in whole or in part and then redrawn. Following the one-year funding period, the principal amount of the notes, if any, would amortize and would be due and payable in full in October 2017. On June 13, 2014, SFC amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to extend the one -year funding period to a two -year funding period. Following the two -year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2019. The maximum principal balance of variable funding notes that can be issued remained at $300 million . At December 31, 2015 , no amounts had been funded. The note purchase agreement with the Midbrook 2013-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment. Springleaf 2013-VFN1 Securitization. On September 27, 2013, SFC established a private securitization facility in which the Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two -year period, which may be extended for one year , subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two - or three -year funding period, as the case may be, the principal amount of the notes, if any, will amortize and will be due and payable in full in October 2019. On May 20, 2015, SFC amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to, among other things, extend the original two -year revolving period ending October of 2015 to a two -year revolving period ending April of 2017, which may be extended for up to one additional year, subject to satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in May of 2020. At December 31, 2015 , the maximum amount that could be drawn under the notes remained at $ 350 million . No amounts were drawn under the notes as of December 31, 2015. The note purchase agreement with the Springleaf 2013-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment. Sumner Brook 2013-VFN1 Securitization. On December 20, 2013, SFC established a private securitization facility in which the Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two -year period. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two -year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in August 2022. On January 16, 2015, SFC amended the note purchase agreement with the Sumner Brook 2013-VFN1 Trust to extend the two -year revolving period ending December of 2015 to a three -year revolving period ending January of 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August of 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million . On December 21, 2015, SFC drew $100 million under the notes, which remained outstanding as of December 31, 2015 . Whitford Brook 2014-VFN1 Securitization. On June 26, 2014, SFC established a private securitization facility in which the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, may issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC. The notes will be funded over a three -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down to the required minimum balance of $100 million and then redrawn. Following the three -year funding period, the principal amount of the notes will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2018, unless an option to prepay is elected between July 2017 and July 2018. On March 24, 2015, SFC amended the sale and servicing agreement relating to the Whitford Brook 2014-VFN1 Trust to remove the requirement for a $100 million minimum balance drawn under the variable funding notes, which are to be backed by personal loans acquired from subsidiaries of SFC from time to time. On March 25, 2015, SFC paid down the note balance of $100 million . On June 3, 2015, SFC amended the note purchase agreement relating to the Whitford Brook 2014-VFN1 Trust to reduce the $300 million maximum principal balance to $250 million . On each of July 15, 2015 and December 3, 2015, SFC drew $100 million under the notes. As of December 31, 2015 , $200 million remained outstanding under the notes. The note purchase agreement with the Whitford Brook 2015-VFN1 Trust was amended on February 24, 2016. See Note 25 for information on this subsequent amendment. Mill River 2015-VFN1 Securitization. On May 27, 2015, SFC established a private securitization facility in which Mill River Funding Trust 2015-VFN1 (the “Mill River 2015-VFN1 Trust”), a wholly owned special purpose vehicle of SFC, issued variable funding notes with a maximum principal balance of $400 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a three -year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in June of 2021. On each of November 23, 2015 and December 10, 2015, SFC drew $200 million under the notes. As of December 31, 2015 , $400 million remained outstanding under the notes. The note purchase agreement with the Mill River 2015-VFN1 Trust was amended on January 21, 2016. See Note 25 for information on this subsequent amendment. Second Avenue Funding LLC Securitization. On June 3, 2015, SFC established a private securitization facility in which Second Avenue Funding LLC, a wholly owned special purpose vehicle of SFC, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a three -year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the three -year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full in June of 2019. On November 23, 2015, SFC drew $250 million under the notes, which remained outstanding as of December 31, 2015 . First Avenue Funding LLC Securitization. On June 10, 2015, SFC established a private securitization facility in which First Avenue Funding LLC (“First Avenue”), a wholly owned special purpose vehicle of SFC, issued variable funding notes with a maximum principal balance of $250 million to be backed by auto loans acquired from subsidiaries of SFC. No amounts were funded at closing, but may be funded from time to time over a two -year revolving period, subject to the satisfaction of customary conditions precedent. During the revolving period, the notes can be paid down in whole or in part and then redrawn. Following the two -year revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying auto loans and will be due and payable in full twelve months following the maturity of the last auto loan held by First Avenue. On November 23, 2015, SFC drew $250 million under the notes, which remained outstanding as of December 31, 2015 . On December 11, 2015, SFC amended the facility to extend the scheduled maturity date until December 10, 2017. OMFH Conduit Facility On February 3, 2015, OMFH entered into the 2015 Warehouse Facility with a borrowing capacity of $ 3.0 billion , whereby OneMain Financial Warehouse Trust (the “Warehouse Trust”), a wholly owned statutory trust, issued variable funding notes, backed by personal loans, to five financial institutions and, from time to time, asset-backed commercial paper conduits administered by these financial institutions. During the revolving period of the facility, OMFH was permitted to sell personal loans into the Warehouse Trust and draw advances against the value of such personal loans, subject to meeting required overcollateralization levels. The lenders were required to make advances against the notes on a revolving basis through December 31, 2017. The initial $ 3.0 billion maximum borrowing capacity was scheduled to be reduced by $ 500 million on January 30, 2016 and by an additional $ 1.0 billion on January 30, 2017. The notes were scheduled to mature on January 18, 2025. During the revolving period, the outstanding note balance was permitted to be redeemed, in whole or in part, at OMFH’s option. At December 31, 2015 , $1.4 billion was drawn under the notes. See Note 25 for information regarding the subsequent termination and replacement of the 2015 Warehouse Facility on January 21, 2016. VIE INTEREST EXPENSE Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $216 million in 2015 , $214 million in 2014 , and $224 million in 2013 . DECONSOLIDATED VIES As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.2 billion . During 2014, we established a reserve for sales recourse obligations of $7 million related to these sales. At December 31, 2015 , this reserve totaled $7 million . We had no repurchase activity associated with these sales as of December 31, 2015 . See Note 20 for further information on the total reserve for sales recourse obligations relating to the real estate loan sales, including the sales of the mortgage-backed retained certificates. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During 2015 and 2014 , we did not have any derivative activity. In 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIG Financial Products, a subsidiary of AIG, and recorded a loss of $2 million in other revenues — other. Immediately following this termination, we had no derivative financial instruments. Changes in the notional amounts of our cross currency interest rate swap agreements were as follows: (dollars in millions) At or for the Year Ended December 31, 2013 Balance at beginning of period $ 417 Discontinued and terminated contracts (417 ) Balance at end of period $ — During 2013, we recognized a net loss of $3 million on SFC’s non-designated hedging instruments in other revenues — other. Derivative adjustments included in other revenues — other consisted of the following: (dollars in millions) Year Ended December 31, 2013 Net interest income $ 9 Mark to market losses (8 ) Total $ 1 SFC was exposed to credit risk if counterparties to its swap agreement did not perform. SFC regularly monitored counterparty credit ratings throughout the term of the agreement. SFC’s exposure to market risk was limited to changes in the value of its swap agreement offset by changes in the value of the hedged debt. While SFC’s cross currency interest rate swap agreement mitigated economic exposure of related debt, it did not qualify as a cash flow or fair value hedge under U.S. GAAP. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Insurance | Insurance Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2015 2014 Finance receivable related: Payable to OMH: Unearned premium reserves $ 574 $ 194 Claim reserves 88 23 Subtotal (a) 662 217 Payable to third-party beneficiaries: Unearned premium reserves 66 — Benefit reserves 113 107 Claim reserves 22 5 Subtotal (b) 201 112 Non-finance receivable related: Unearned premium reserves 91 — Benefit reserves 388 75 Claim reserves 67 42 Subtotal (b) 546 117 Total $ 1,409 $ 446 (a) Reported as a contra-asset to net finance receivables in connection with the OneMain policy integration. (b) Reported in insurance claims and policyholder liabilities. Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits included the following amounts assumed from other insurers: (dollars in millions) December 31, 2015 2014 Non-affiliated insurance companies $ 346 $ 15 AIG affiliated insurance companies* — 43 Total $ 346 $ 58 * As a result of the offering of our common stock in May of 2015, the economic interests of AIG is no longer material; therefore, the reinsurance agreements with insurers that are subsidiaries of AIG as of December 31, 2015 have not been segregated. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $107 million at December 31, 2015 , including $85 million of OneMain reserves as a result of the OneMain Acquisition, compared to $22 million at December 31, 2014 . Changes in the reserve for unpaid claims and loss adjustment expenses, net of reinsurance recoverable: (dollars in millions) At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period $ 48 $ 46 $ 51 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition 104 — — Additions for losses and loss adjustment expenses incurred to: Current year 83 65 59 Prior years * 5 (3 ) (6 ) Total 88 62 53 Reductions for losses and loss adjustment expenses paid related to: Current year (63 ) (39 ) (35 ) Prior years (26 ) (21 ) (23 ) Total (89 ) (60 ) (58 ) Balance at end of period $ 151 $ 48 $ 46 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed and (ii) a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 and $6 million at December 31, 2013 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. Springleaf and OneMain insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana Department of Insurance (the “Indiana DOI”) and the Texas Department of Insurance (the “Texas DOI”), respectively, which is a comprehensive basis of accounting other than U.S. GAAP. The primary differences between statutory accounting practices and U.S. GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis. Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Property and casualty: Yosemite Insurance Company $ 15 $ 16 $ 41 Triton Insurance Company 3 — — Life and disability: Merit Life Insurance Co. $ (1 ) $ (2 ) $ 3 American Health and Life Insurance Company 11 — — Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2015 2014 Property and casualty: Yosemite Insurance Company $ 76 $ 108 Triton Insurance Company 181 — Life and disability: Merit Life Insurance Co. $ 123 $ 171 American Health and Life Insurance Company 184 — Springleaf and OneMain insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI and the Texas DOI, respectively. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2015 and 2014 , our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. State law restricts the amounts Springleaf’s insurance subsidiaries, Yosemite Insurance Company (“Yosemite”) and Merit, may pay as dividends without prior notice to the Indiana DOI. The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends”. Springleaf insurance subsidiaries paid extraordinary dividends to SFC totaling $100 million , $57 million , and $150 million during 2015, 2014, and 2013, respectively, and ordinary dividends of $18 million to SFC during 2014. In addition, Yosemite paid, as an extraordinary dividend to SFC, 100% of the common stock of its wholly owned subsidiary, CommoLoCo, Inc., in the amount of $58 million in July of 2013. State law also restricts the amounts OneMain insurance subsidiaries, American Health and Life Insurance Company and Triton Insurance Company, may pay as dividends without prior notice to the Texas DOI. The maximum amount of dividends (also referred to as “ordinary dividends”) for a Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Texas DOI prior to its payment. The maximum ordinary dividends for a Texas domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Texas DOI prior to its payment. These approved dividends are called “extraordinary dividends”. OneMain insurance subsidiaries paid ordinary dividends to OMFH totaling $68 million subsequent to the effective closing date of the OneMain Acquisition. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Components of other liabilities were as follows: (dollars in millions) December 31, 2015 2014 Other accrued expenses and accounts payable $ 83 $ 31 Salary and benefit liabilities 75 36 Accrued interest on debt 67 57 Retirement plans 55 50 Loan principal warranty reserve 15 24 Other insurance liabilities 8 4 Bank overdrafts 14 5 Other 67 31 Total $ 384 $ 238 |
Capital Stock & Earnings (Loss)
Capital Stock & Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings (Loss) Per Share | Capital Stock and Earnings (Loss) Per Share CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMH may issue preferred stock in series. The board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance. Par value and shares authorized at December 31, 2015 were as follows: Preferred Stock * Common Stock Par value $ 0.01 $ 0.01 Shares authorized 300,000,000 2,000,000,000 * No shares of preferred stock were issued and outstanding at December 31, 2015 or 2014 . Changes in shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period 114,832,895 114,832,895 100,000,000 Common shares issued 19,661,277 — 14,832,895 Balance at end of period 134,494,172 114,832,895 114,832,895 Equity Offering On May 4, 2015, we completed an offering of 27,864,525 shares of common stock, consisting of 19,417,476 shares of common stock offered by us and 8,447,049 shares of common stock offered by the Initial Stockholder. Citigroup Global Markets Inc., Goldman, Sachs & Co., Barclays Capital Inc., and Credit Suisse Securities (USA) LLC acted as joint book-running managers. The net proceeds from this sale to the Company were approximately $976 million , after deducting the underwriting discounts and commissions and additional offering-related expenses totaling $24 million . The net proceeds of the offering were contributed to Independence to finance a portion of the OneMain Acquisition. EARNINGS (LOSS) PER SHARE The computation of earnings (loss) per share was as follows: (dollars in millions except earnings (loss) per share) Years Ended December 31, 2015 2014 2013 Numerator (basic and diluted): Net income (loss) attributable to OneMain Holdings, Inc. $ (242 ) $ 505 $ (19 ) Denominator: Weighted average number of shares outstanding (basic) 127,910,680 114,791,225 102,917,172 Effect of dilutive securities * — 473,898 — Weighted average number of shares outstanding (diluted) 127,910,680 115,265,123 102,917,172 Earnings (loss) per share: Basic $ (1.89 ) $ 4.40 $ (0.19 ) Diluted $ (1.89 ) $ 4.38 $ (0.19 ) * We have excluded the following shares in the diluted earnings (loss) per share calculation for 2015 , 2014 , and 2013 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: • 2015 : 591,606 performance shares and 489,653 service shares; • 2014 : 583,459 performance shares; and • 2013 : 37,246 nonvested shares. Basic earnings (loss) per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings (loss) per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested restricted stock units (“RSUs”) and restricted stock awards (“RSAs”). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive income (loss) (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) Year Ended December 31, 2014 Balance at beginning of period $ 4 $ 20 $ 4 $ 28 Other comprehensive income (loss) before reclassifications 13 (33 ) — (20 ) Reclassification adjustments from accumulated other comprehensive income (5 ) — — (5 ) Balance at end of period $ 12 $ (13 ) $ 4 $ 3 Year Ended December 31, 2013 Balance at beginning of period $ 14 $ 8 $ 5 $ 27 Other comprehensive income (loss) before reclassifications (8 ) 12 (1 ) 3 Reclassification adjustments from accumulated other comprehensive income (2 ) — — (2 ) Balance at end of period $ 4 $ 20 $ 4 $ 28 Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 12 $ 8 $ 3 Income tax effect (4 ) (3 ) (1 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ 8 $ 5 $ 2 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes OMH and all of its eligible domestic U.S. subsidiaries file a consolidated life/non-life federal tax return with the Internal Revenue Service (“IRS”). Previously, Merit was not an eligible company, and it filed a separate federal life insurance tax return. For our 2015 consolidated federal tax return, Merit is eligible as an includible insurance company under Internal Revenue Code (“IRC”) Section 1504. In addition, American Health and Life Insurance Company, an insurance subsidiary of OneMain, is not an eligible company and therefore, it will file a separate federal life insurance tax return for 2015. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH. Springleaf’s foreign subsidiaries file tax returns in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. OneMain’s foreign branches file tax returns in Canada. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2015 , the Company had no undistributed foreign earnings. As discussed in Note 2 of the Notes to Consolidated Financial Statements, on November 15, 2015, OMH closed on a transaction to acquire OneMain from Citigroup for $4.5 billion . For accounting purposes, we treated this transaction as a stock acquisition. In comparison, for tax purposes, we treated this transaction as acquiring a new corporation which has a full stepped-up basis in its assets equal to the purchase price paid for the assets under IRC Section 336(e). In connection with the OneMain Acquisition, we recorded $1.4 billion of goodwill that is deductible for tax purposes. Our provision for income taxes for 2015 includes a tax benefit of $6 million for the acquisition-related costs. Components of income (loss) before provision for (benefit from) income taxes were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Income (loss) before provision for (benefit from) income taxes - U.S. operations $ (281 ) $ 903 $ 82 Income (loss) before provision for (benefit from) income taxes - foreign operations 12 2 (4 ) Total $ (269 ) $ 905 $ 78 Components of provision for (benefit from) income taxes were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Current: Federal $ 59 $ 257 $ 96 Foreign 1 — 1 State 5 20 6 Total current 65 277 103 Deferred: Federal (180 ) 19 (107 ) Foreign — — 1 State (32 ) 1 (13 ) Total deferred (212 ) 20 (119 ) Total $ (147 ) $ 297 $ (16 ) Expense from foreign income taxes includes Springleaf’s foreign subsidiaries that operate in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom and OneMain’s foreign branches that operate in Canada. We recorded a current state income tax provision in 2015 , 2014 , and 2013 attributable to profitable operations in certain states in which we engage in business activity that could not be offset against losses incurred. We recorded a valuation allowance against the majority of our gross state deferred tax assets related to net operating losses. Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: Years Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Non-controlling interests 15.52 (3.98 ) (51.01 ) State income taxes, net of federal 6.41 1.49 (5.55 ) Foreign operations — 0.38 4.69 Interest and penalties on prior year tax returns — (0.10 ) 7.67 Nontaxable investment income 0.17 (0.10 ) (1.94 ) Change in tax status — — (14.64 ) Nondeductible compensation (2.01 ) — 3.49 Other, net (0.50 ) 0.15 1.42 Effective income tax rate 54.59 % 32.84 % (20.87 )% The effective tax rate for 2015 and 2014 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in the SpringCastle Portfolio and state income taxes. The effective tax rate is based on income (loss) before taxes, which includes income (loss) attributable to non-controlling interests. The income (loss) attributable to the non-controlling interest is not included in the taxable income in OMH, resulting in variances from the federal statutory rate of 15.52% and (3.98)% in 2015 and 2014, respectively. The difference in the impact on the effective tax rate due to non-controlling interest in 2015 as compared to 2014 is due to the fact that the net income attributable to non-controlling interest was a greater percentage of the total income (loss) before taxes in 2015 as compared to 2014. The effective tax rate for 2013 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in our joint venture, a change in tax status, and state income taxes, partially offset by the effect of interest and penalties on prior year tax returns. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 4 $ 2 $ 2 Increases in tax positions for prior years 4 3 — Decreases in tax positions for prior years (2 ) — — Increases in tax positions for current years 10 — — Lapse in statute of limitations — (1 ) — Settlements with tax authorities (1 ) — — Balance at end of year $ 15 $ 4 $ 2 Our gross unrecognized tax obligation includes interest and penalties. We recognize interest and penalties related to gross unrecognized tax obligations in income tax expense. We accrued $7 million in 2015 , $1 million in 2014 , and less than $1 million in 2013 for the payment of respective tax obligation, interest and penalty, net of any federal benefit. The amount of any change in the balance of uncertain tax liabilities over the next twelve months is not expected to be material to our consolidated financial statements. The increase in tax positions for the current year includes $6 million from OneMain tax uncertainties that existed prior to the acquisition. The stock purchase agreement with the seller will indemnify Springleaf for any taxes for the pre-closing tax period. As such, the Company continues to maintain the OneMain tax uncertainties and a corresponding indemnification asset/receivable. We are currently under examination of our U.S. federal tax return for the year 2013 by the IRS. Management believes it has adequately provided for taxes for such year. No specific examination issue or adjustment has been identified to date. During 2015, the Company amended their 2011 and 2012 federal and state returns. Therefore, the Company could be subject to examination for the respective years. The amended returns resulted in a net receivable that is recorded in the current tax receivable account. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2015 2014 Deferred tax assets: Allowance for loan losses $ 221 $ 80 State taxes, net of federal 42 22 Pension/employee benefits 37 26 Joint venture 27 12 Capital loss carryforward 27 — Net operating losses and tax attributes 16 19 Deferred insurance commissions 12 3 Acquisition costs 10 — Legal and warranty reserve 6 10 Payment protection insurance liability 2 5 Other 19 5 Total 419 182 Deferred tax liabilities: Debt writedown 121 194 Impact of tax accounting method change 76 — Discount - debt exchange 20 23 Mark-to-market 17 47 Other intangible assets 12 7 Insurance reserves 11 10 Goodwill 5 — Other — 5 Total 262 286 Net deferred tax assets (liabilities) before valuation allowance 157 (104 ) Valuation allowance (38 ) (44 ) Net deferred tax assets (liabilities) $ 119 $ (148 ) We had a net deferred tax asset of $119 million and a deferred tax liability of $148 million at December 31, 2015 and 2014 , respectively. The change in deferred tax balance by $267 million was primarily related to the increase of deferred tax asset of $127 million for allowance for loan loss reserves from newly acquired OneMain operations, and $27 million for capital loss carryforwards from Springleaf operations; and the decrease of deferred tax liability of $44 million for debt writedown and $30 million for mark-to-market valuation from Springleaf operations. The deferred tax liability reflected on the impact of tax accounting method change relates to the valuation of certain assets. The gross deferred tax liabilities are expected to reverse in time, and amounts are sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets. Included in our gross deferred tax assets are foreign deferred tax assets that are primarily attributable to foreign net operating loss carryforwards. The benefit of the foreign net operating loss carryforwards is $13 million and $15 million from our United Kingdom operations at December 31, 2015 and 2014 , respectively, and $2 million from our Puerto Rico operations at December 31, 2015 and 2014 . The United Kingdom net operating loss does not have a statute of limitations and the Puerto Rico net operating loss expires in 2024. We had a valuation allowance against our United Kingdom and Puerto Rico operations of $16 million and $18 million at December 31, 2015 and 2014, respectively. In addition, at December 31, 2015, we had a federal capital loss carryforward of $78 million . The federal capital loss carryforward expires in 2020. At December 31, 2015 , we had state net operating loss carryforwards of $556 million , compared to $500 million at December 31, 2014 . The state net operating loss carryforwards expire between 2017 and 2036. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $22 million and $26 million at December 31, 2015 and 2014, respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more-likely-than-not to not be realized. At December 31, 2015 , we had $19 million of net current federal and foreign income tax payable, compared to $96 million receivable at December 31, 2014 . At December 31, 2015 , we had $20 million of current state tax receivable, compared to $7 million at December 31, 2014 . |
Lease Commitments, Rent Expense
Lease Commitments, Rent Expense, and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments, Rent Expense, and Contingent Liabilities | Lease Commitments, Rent Expense, and Contingent Liabilities LEASE COMMITMENTS AND RENT EXPENSE Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments First quarter 2016 $ 17 Second quarter 2016 17 Third quarter 2016 16 Fourth quarter 2016 15 2016 65 2017 48 2018 32 2019 20 2020 12 2021+ 21 Total $ 198 In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $39 million in 2015 , $30 million in 2014 , and $30 million in 2013 . LEGAL CONTINGENCIES In the normal course of business, Springleaf and OneMain have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. SALES RECOURSE OBLIGATIONS During 2014, we established a reserve for sales recourse obligations of $23 million related to the real estate loan sales. At December 31, 2015 , our reserve for sales recourse obligations totaled $15 million , which primarily related to the real estate loan sales in 2014. We repurchased 13 loans totaling $1 million during 2015 associated with the real estate loan sales in 2014. There was no repurchase activity associated with the 2014 sales of real estate loans during 2014. We repurchased 9 loans totaling $1 million during 2014 and 20 loans totaling $3 million during 2013 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At December 31, 2015 , there were no material recourse requests with loss exposure that management believes will not be covered by the reserve. The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows: (dollars in millions) At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period $ 24 $ 5 $ 5 Recourse losses (2 ) — — Provision for recourse obligations, net of recoveries * (7 ) 19 — Balance at end of period $ 15 $ 24 $ 5 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses. PAYMENT PROTECTION INSURANCE Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March of 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $6 million at December 31, 2015 and $14 million at December 31, 2014 . We do not believe that any additional losses related to PPI claims in excess of the amounts accrued will have a material adverse effect on our consolidated financial statements as a whole. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans With the exception of our 401(k) plan, the obligations related to the benefit plans described below are recorded by SFC. PENSION PLANS Retirement Plan The Springleaf Financial Services Retirement Plan (the ”Retirement Plan”) is a noncontributory defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Effective December 31, 2012, the Retirement Plan was frozen. U.S. salaried employees who were employed by a participating company, had attained age 21 , and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65 ) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Retirement Plan that accrued prior to January 1, 2013. CommoLoCo Retirement Plan The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our current and former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. Unfunded Defined Benefit Plans We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. POSTRETIREMENT PLANS Springleaf Retiree Medical and Life Insurance Plan We provided postretirement medical care and life insurance benefits. Eligibility was based upon completion of 10 years of credited service and attainment of age 55 . Life and dental benefits were closed to new participants. Postretirement medical and life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Medical benefits were contributory, while the life insurance benefits were non-contributory. Retiree medical contributions were based on the actual premium payments reduced by Company-provided credits. These retiree contributions were subject to adjustment annually. Other cost sharing features of the medical plan included deductibles, coinsurance, and Medicare coordination. On December 31, 2014, we terminated the Springleaf Retiree Medical and Life Insurance Plan, and we recorded a settlement gain and a curtailment gain of $4 million and $2 million , respectively, as a credit to salaries and benefit expenses. CommoLoCo Retiree Life Insurance Plan We provided postretirement life insurance benefits to eligible participants of CommoLoCo, Inc. Eligibility was based upon completion of 10 years of credited service and attainment of age 55 . Postretirement life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Life insurance benefits were non-contributory. On February 28, 2015, the Retiree Group Life Insurance program was terminated. 401(K) PLANS We sponsor voluntary savings plans for our U.S. employees and for our employees of CommoLoCo, Inc. Springleaf Financial Services 401(k) Plan The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2015 , 2014 , and 2013 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. We do not anticipate any changes to the Company’s matching contributions for 2016 . In addition, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same. The OneMain employees were eligible to participate in the 401(k) Plan beginning on November 15, 2015. The salaries and benefit expense associated with this plan was $20 million in 2015 , $16 million in 2014 , and $9 million in 2013 . CommoLoCo Thrift Plan The CommoLoCo Thrift Plan provides for salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. The salaries and benefit expense associated with this plan for 2015 , 2014 , and 2013 was immaterial. We do not anticipate any changes to the Company’s matching contributions for 2016 . OBLIGATIONS AND FUNDED STATUS The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. (dollars in millions) Pension (a) Postretirement (b) At or for the Years Ended December 31, 2015 2014 2013 2014 2013 Projected benefit obligation, beginning of period $ 409 $ 323 $ 368 $ 2 $ 7 Interest cost 15 15 14 — — Actuarial loss (gain) (c) (24 ) 83 (47 ) — (5 ) Benefits paid: Plan assets (12 ) (12 ) (12 ) — — Curtailment — — — (2 ) — Projected benefit obligation, end of period 388 409 323 — 2 Fair value of plan assets, beginning of period 359 317 347 — — Actual return on plan assets, net of expenses (15 ) 54 (18 ) — — Company contributions 1 — — — — Benefits paid: Plan assets (12 ) (12 ) (12 ) — — Fair value of plan assets, end of period 333 359 317 — — Funded status, end of period $ (55 ) $ (50 ) $ (6 ) $ — $ (2 ) Net amounts recognized in the consolidated balance sheet: Other assets $ — $ — $ 7 $ — $ — Other liabilities (55 ) (50 ) (13 ) — (2 ) Total amounts recognized $ (55 ) $ (50 ) $ (6 ) $ — $ (2 ) Pretax net gain (loss) recognized in accumulated other comprehensive income or loss $ 29 $ (19 ) $ 26 $ — $ 4 (a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2015 and 2014 . (b) We do not currently fund postretirement benefits. (c) We adopted new mortality tables in 2014, which increased the plan liabilities during 2014. The accumulated benefit obligation for U.S. pension benefit plans was $388 million at December 31, 2015 and $409 million at December 31, 2014 . Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2015 2014 Projected benefit obligation $ 388 $ 409 Accumulated benefit obligation 388 409 Fair value of plan assets 333 359 The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: (dollars in millions) Pension Postretirement Years Ended December 31, 2015 2014 2013 2014 2013 Components of net periodic benefit cost: Service cost $ — $ — $ — $ — $ 1 Interest cost 15 15 14 — — Expected return on assets (19 ) (16 ) (15 ) — — Curtailment gain — — — (2 ) — Settlement gain — — — (4 ) — Net periodic benefit cost (4 ) (1 ) (1 ) (6 ) 1 Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) 9 46 (13 ) — (5 ) Net settlement gain — — — 4 — Total recognized in other comprehensive income or loss 9 46 (13 ) 4 (5 ) Total recognized in net periodic benefit cost and other comprehensive income or loss $ 5 $ 45 $ (14 ) $ (2 ) $ (4 ) We have made the following estimates relating to our combined defined benefit pension plans and our defined benefit postretirement plans: • the estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be less than $1 million for our combined defined benefit pension plans; • the estimated prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans; and • the estimated amortization from accumulated other comprehensive income or loss for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be zero for our defined benefit postretirement plans. Assumptions The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension Postretirement December 31, 2015 2014 2015 2014 Projected benefit obligation: Discount rate 4.26 % 3.89 % 3.45 % 3.80 % Rate of compensation increase — — N/A * N/A * Net periodic benefit costs: Discount rate 3.89 % 4.83 % 3.80 % 3.80 % Expected long-term rate of return on plan assets 5.27 % 5.29 % N/A * N/A * Rate of compensation increase (average) — — N/A * N/A * * Not applicable Discount Rate Methodology The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2015 and an equivalent weighted average discount rate was derived that resulted in the same liability. This single discount rate for each plan was used. Investment Strategy The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. Allocation of Plan Assets The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. At December 31, 2015 , the actual asset allocation for the primary asset classes was 90% in fixed income securities, 9% in equity securities, and 1% in cash and cash equivalents. The 2016 target asset allocation for the primary asset classes is 88% in fixed income securities and 12% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 5.7% for the CommoLoCo Retirement Plan for 2015 . The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the IRC. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2015 are as follows: (dollars in millions) Pension 2016 $ 15 2017 15 2018 15 2019 15 2020 16 2021-2025 89 FAIR VALUE MEASUREMENTS — PLAN ASSETS The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2015 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 16 — 16 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 291 — 291 U.S. high yield (d) — 8 — 8 Total $ 3 $ 330 $ — $ 333 December 31, 2014 Assets: Cash and cash equivalents $ 2 $ — $ — $ 2 Equity securities: U.S. (a) — 19 — 19 International (b) — 1 — 1 Fixed income securities: U.S. investment grade (c) — 335 — 335 U.S. high yield (d) — 2 — 2 Total $ 2 $ 357 $ — $ 359 (a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation OMNIBUS INCENTIVE PLAN In 2013, OMH adopted the 2013 Omnibus Incentive Plan (the “Omnibus Plan”) under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. Under this plan, as of December 31, 2015, 11,105,064 shares of authorized common stock are reserved for issuance pursuant to grants approved by the Company’s Board of Directors. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, RSUs and RSAs, stock appreciation rights (“SARs”), and other stock-based awards and cash awards. Service-based Awards In connection with the initial public offering on October 16, 2013 and subsequent to the offering, we have granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years or less and provide the holders the right to vote and to earn dividends during the vesting period that are subject to forfeiture if the shares do not vest. The fair value for restricted units and awards is generally the closing market price of OMH’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2015 , 2014 , and 2013 was $47.44 , $25.65 , and $17.00 , respectively. The total fair value of service-based awards that vested during 2015 and 2014 was $7 million and $1 million , respectively. No service-based awards vested in 2013. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2015 1,352,865 $ 17.91 Granted 1,115,662 47.44 Vested (384,902 ) 18.45 Forfeited (74,201 ) 24.65 Unvested at December 31, 2015 2,009,424 33.95 2.91 Performance-based Awards During 2015 and 2014, OMH awarded performance-based RSUs (“PRSUs”) that may be earned based on the financial performance of OMH. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2016. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2016, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2016, 2017 and 2018; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the Form 10-K filing date that occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award. Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and cancelled, and all expense recognized to that date is reversed. Prior to the OneMain Acquisition, none of the performance targets related to certain PRSUs issued in 2014 were deemed probable of occurring. Subsequent to the OneMain Acquisition, the targets were re-evaluated and the 100% performance targets were deemed probable of occurring. Accordingly in 2015 , we recorded a cumulative catch-up expense of $6 million , which is included in acquisition-related transaction and integration expenses. The weighted average grant date fair value of performance-based awards issued in 2015 and 2014 was $34.45 and $25.78 , respectively. No performance-based awards vested in 2015 or 2014 . The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2015 583,459 $ 25.84 Granted 16,091 34.45 Forfeited (18,437 ) 35.05 Unvested at December 31, 2015 581,113 25.79 2.59 In addition, two of our executives were granted 8.203125 RSUs on September 30, 2013, for which we recorded share-based compensation expense of $131 million . This grant was subsequently amended on October 8, 2013 to reduce the number of RSUs granted to the executives by 0.859375 RSUs and to grant these units to a certain management employee. No other terms of the grant were modified. As a result of the additional grant, we recognized $14 million in additional compensation expense in the fourth quarter of 2013. There was no additional compensation expense recorded for the modification of the grant to the executives, as the fair value of the modified award was less than the fair value of the original award immediately before the terms were modified. Therefore, total compensation expense recognized for the 8.203125 units was $145 million . These RSUs were converted into the right to receive 8.203125% of the outstanding shares of OMH common stock and were also subject to an equitable adjustment for the stock split that occurred on October 9, 2013. The adjusted number of shares of OMH common stock underlying these RSUs ( 8,203,125 shares) were delivered to the holders in October 2013 after the conversion. The weighted average grant date fair value of these units (after conversion and subsequent stock split) was $16.00 based on an equity valuation. The shares are fully vested; however, they generally cannot be sold or otherwise transferred for five years following the date of delivery, except to the extent necessary to satisfy certain tax obligations. Total share-based compensation expense, net of forfeitures, for all stock-based awards totaled $15 million , $6 million , and $146 million , respectively, during 2015 , 2014 , and 2013 . The total income tax benefit recognized for stock-based compensation was $6 million in 2015 , $2 million in 2014 , and $51 million in 2013 . As of December 31, 2015 , there was total unrecognized compensation expense of $57 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 2.9 years . Incentive Units On October 9, 2013, certain executives of the Company received a grant of incentive units in the Initial Stockholder. In the fourth quarter of 2015, such executives surrendered a portion of their incentive units and certain additional executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. These incentive units are subject to their continued employment with the Company and, in the case of the incentive units issued in 2015, the continued employment of both Jay Levine and John Anderson. These incentive units provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of our common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in the second quarter of 2015 related to the incentive units. No expense was recognized for these awards during 2014 or 2013 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At December 31, 2015 , our three segments include: • Consumer and Insurance; • Acquisitions and Servicing; and • Real Estate. On November 15, 2015, we completed our acquisition of OneMain and their results are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup. We include OneMain’s operations within the Consumer and Insurance segment. Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” Our segments are managed as follows: Core Consumer Operations • Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. As a result of the OneMain Acquisition, our combined branch operations primarily conduct business in 43 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan. • Acquisitions and Servicing — We service the SpringCastle Portfolio that we acquired through a joint venture in which we own a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status. Non-Core Portfolio • Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. We used these proceeds to acquire OneMain. The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) Springleaf legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) Springleaf liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) Springleaf lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of Springleaf United Kingdom subsidiary. We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 3 , except as described below. Due to the nature of the OneMain Acquisition, we have applied purchase accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using “Segment Accounting Basis” (referred to as “historical accounting basis” in previous SEC filings), which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting. These allocations and adjustments have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than U.S. GAAP) provides investors the basis for which management evaluates segment performance. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Consumer and Insurance - receives remainder of unallocated average debt; and l Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively. For the period third quarter 2014 to the OneMain Acquisition Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each respective asset base. Any excess is allocated to Consumer and Insurance. Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt. Asset base represents the following: l Consumer and Insurance - average net finance receivables including average net finance receivables held for sale; l Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and l Other - average net finance receivables other than the periods listed below: l May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments. Prior to third quarter 2014 The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt. Provision for finance receivable losses Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt. Salaries and benefits Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other operating expenses Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • interest income - the net purchase accounting impact of the amortization (accretion) of the net premium (discount) assigned to finance receivables and the impact of identifying purchased credit impaired finance receivables as compared to the historical values of finance receivables; • interest expense - primarily includes the accretion of the net discount applied to our long term debt as part of purchase accounting; • provision for finance receivable losses - the adjustment to reflect the difference between our allowance adjustment calculated under our Segment Accounting Basis and our GAAP basis. In addition, in 2015, the Company reversed loan loss provision of $364 million recorded related to OneMain’s acquired finance receivables balance, as we do not believe the initial recording of the provision is indicative of the run rate of the business; • other revenues - the impact of carrying value differences between Segment Accounting Basis and purchase accounting basis when measuring mark to market for loans held for sale and realized gains/losses associated with our investment portfolio; and • other expenses - the net impact of amortization associated with identified intangibles as part of purchase accounting and deferred costs impacted by purchase accounting. The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to GAAP Adjustment Consolidated Total At or for the Year Ended December 31, 2015 Interest income $ 1,482 $ 470 $ 68 $ 8 $ — $ (97 ) $ 1,931 Interest expense 242 87 212 56 (5 ) 123 715 Provision for finance receivable losses 351 90 (2 ) 1 — 319 759 Net interest income (loss) after provision for finance receivable losses 889 293 (142 ) (49 ) 5 (539 ) 457 Other revenues 276 58 3 — (57 ) (19 ) 261 Acquisition-related transaction and integration expenses 16 1 1 47 — (3 ) 62 Other expenses 804 111 33 15 (52 ) 14 925 Income (loss) before provision for (benefit from) income taxes 345 239 (173 ) (111 ) — (569 ) (269 ) Income before provision for income taxes attributable to non-controlling interests — 120 — — — — 120 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 345 $ 119 $ (173 ) $ (111 ) $ — $ (569 ) $ (389 ) Assets * $ 16,050 $ 1,663 $ 711 $ 362 $ — $ 2,270 $ 21,056 * Includes $11.2 billion of OneMain assets, which are reported in Consumer and Insurance. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2014 Interest income $ 916 $ 550 $ 406 $ 17 $ — $ 93 $ 1,982 Interest expense 164 82 353 8 (5 ) 132 734 Provision for finance receivable losses 202 152 128 7 — (15 ) 474 Net interest income (loss) after provision for finance receivable losses 550 316 (75 ) 2 5 (24 ) 774 Other revenues 215 36 154 1 (71 ) 497 832 Other expenses 537 123 93 11 (66 ) 3 701 Income (loss) before provision for (benefit from) income taxes 228 229 (14 ) (8 ) — 470 905 Income before provision for income taxes attributable to non-controlling interests — 103 — — — — 103 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 228 $ 126 $ (14 ) $ (8 ) $ — $ 470 $ 802 Assets * $ 4,165 $ 2,434 $ 4,116 $ 441 $ (363 ) $ 19 $ 10,812 At or for the Year Ended December 31, 2013 Interest income $ 722 $ 489 $ 698 $ 45 $ — $ 200 $ 2,154 Interest expense 149 72 546 15 — 138 920 Provision for finance receivable losses 117 133 255 — — 22 527 Net interest income after provision for finance receivable losses 456 284 (103 ) 30 — 40 707 Other revenues 197 36 7 (2 ) (31 ) (54 ) 153 Other expenses 452 97 83 178 (31 ) 3 782 Income (loss) before provision for (benefit from) income taxes 201 223 (179 ) (150 ) — (17 ) 78 Income before provision for income taxes attributable to non-controlling interests — 113 — — — — 113 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 201 $ 110 $ (179 ) $ (150 ) $ — $ (17 ) $ (35 ) Assets * $ 3,938 $ 2,702 $ 8,623 $ 520 $ — $ (607 ) $ 15,176 * Assets reflect the following: • As a result of our early adoption of ASU 2015-03, we reclassified debt issuance costs of $29 million and $55 million as of December 31, 2014 and 2013, respectively, from other assets to long-term debt. • In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $217 million and $172 million at December 31, 2014 and 2013, respectively. • See Note 3 for further information on the correction of the total asset segment disclosure error. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2015 Assets Cash and cash equivalents $ 939 $ — $ — $ 939 $ 939 Investment securities 36 1,829 2 1,867 1,867 Net finance receivables, less allowance for finance receivable losses — — 15,943 15,943 14,803 Finance receivables held for sale — — 819 819 796 Restricted cash and cash equivalents 676 — — 676 676 Other assets: Commercial mortgage loans — — 62 62 62 Escrow advance receivable — — 11 11 11 Receivables related to sales of real estate loans and related trust assets — 1 — 1 5 Liabilities Long-term debt $ — $ 17,616 $ — $ 17,616 $ 17,300 December 31, 2014 Assets Cash and cash equivalents $ 714 $ 165 $ — $ 879 $ 879 Investment securities — 2,926 9 2,935 2,935 Net finance receivables, less allowance for finance receivable losses — — 6,979 6,979 6,307 Finance receivables held for sale — — 209 209 205 Restricted cash and cash equivalents 218 — — 218 218 Other assets: Commercial mortgage loans — — 78 78 85 Escrow advance receivable — — 8 8 8 Receivables related to sales of real estate loans and related trust assets — 67 — 67 79 Liabilities Long-term debt $ — $ 9,182 $ — $ 9,182 $ 8,356 FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2015 Assets Cash equivalents in mutual funds $ 240 $ — $ — $ 240 Investment securities: Available-for-sale securities: Bonds: U.S. government and government sponsored entities — 111 — 111 Obligations of states, municipalities, and political subdivisions — 140 — 140 Non-U.S. government and government sponsored entities — 126 — 126 Corporate debt — 999 — 999 RMBS — 128 — 128 CMBS — 116 — 116 CDO/ABS — 71 — 71 Total bonds — 1,691 — 1,691 Preferred stock 6 7 — 13 Common stock 23 — — 23 Other long-term investments — — 2 2 Total available-for-sale securities (a) 29 1,698 2 1,729 Trading and other securities: Bonds: Non-U.S. government and government sponsored entities — 3 — 3 Corporate debt — 124 — 124 RMBS — 2 — 2 CMBS — 2 — 2 Total bonds — 131 — 131 Preferred stock 6 — — 6 Total trading and other securities (b) 6 131 — 137 Total investment securities 35 1,829 2 1,866 Restricted cash in mutual funds 277 — — 277 Total $ 552 $ 1,829 $ 2 $ 2,383 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 , which is carried at cost. (b) The fair value of other securities totaled $128 million at December 31, 2015 . Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2014 Assets Cash equivalents in mutual funds $ 236 $ — $ — $ 236 Cash equivalents in certificates of deposit and commercial paper — 165 — 165 Investment securities: Available-for-sale securities: Bonds: U.S. government and government sponsored entities — 64 — 64 Obligations of states, municipalities, and political subdivisions — 102 — 102 Certificates of deposit and commercial paper — 3 — 3 Corporate debt — 263 4 267 RMBS — 73 — 73 CMBS — 21 3 24 CDO/ABS — 63 — 63 Total bonds — 589 7 596 Preferred stock — 7 — 7 Other long-term investments — — 1 1 Total available-for-sale securities (a) — 596 8 604 Trading and other securities: Bonds: U.S. government and government sponsored entities — 303 — 303 Obligations of states, municipalities, and political subdivisions — 14 — 14 Certificates of deposit and commercial paper — 238 — 238 Non-U.S. government and government sponsored entities — 20 — 20 Corporate debt — 1,056 — 1,056 RMBS — 36 — 36 CMBS — 151 — 151 CDO/ABS — 512 — 512 Total trading and other securities (b) — 2,330 — 2,330 Total investment securities — 2,926 8 2,934 Restricted cash in mutual funds 207 — — 207 Total $ 443 $ 3,091 $ 8 $ 3,542 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2014 , which is carried at cost. (b) The fair value of other securities totaled $5 million at December 31, 2014 . We had no transfers between Level 1 and Level 2 during December 31, 2015 and 2014 . The following table presents changes during 2015 in Level 3 assets measured at fair value on a recurring basis: Net gains (losses) included in: Purchases, sales, issues, settlements (a) Transfers into Level 3 Transfers out of Level 3 (b) Balance at end of period (dollars in millions) Balance at beginning of period Other revenues Other comprehensive income (loss) Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ 4 $ — $ — $ (4 ) $ — $ — $ — CMBS 3 — — — — (3 ) — Total bonds 7 — — (4 ) — (3 ) — Other long-term investments 1 — — 1 — — 2 Total $ 8 $ — $ — $ (3 ) $ — $ (3 ) $ 2 (a) The detail of purchases and settlements is presented in the table below: (dollars in millions) Purchases Settlements Total Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ — $ (4 ) $ (4 ) Other long-term investments 1 — 1 Total $ 1 $ (4 ) $ (3 ) (b) During 2015 , we transferred $3 million of CMBS out of Level 3 primarily related to the greater observability of pricing inputs. The following table presents changes during 2014 in Level 3 assets measured at fair value on a recurring basis: Net gains (losses) included in: Purchases, sales, issues, settlements (a) Transfers into Level 3 (b) Transfers out of Level 3 (c) Balance at end of period (dollars in millions) Balance at beginning of period Other revenues Other comprehensive income (loss) Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ 13 $ — $ — $ (9 ) $ — $ — $ 4 CMBS — — — — 3 — 3 CDO/ABS 1 — — — — (1 ) — Total bonds 14 — — (9 ) 3 (1 ) 7 Other long-term investments 1 — — — — — 1 Total available-for-sale securities 15 — — (9 ) 3 (1 ) 8 Trading and other securities: Bonds: RMBS — — — — 1 (1 ) — CDO/ABS 7 — — (6 ) — (1 ) — Total trading and other securities 7 — — (6 ) 1 (2 ) — Total $ 22 $ — $ — $ (15 ) $ 4 $ (3 ) $ 8 (a) “Purchases, sales, issues, and settlements” column consisted only of settlements, as the purchases were less than $1 million . (b) During 2014 , we transferred $3 million of CMBS available-for-sale securities and $1 million of RMBS other securities into Level 3 primarily related to the reduced observability of pricing inputs. (c) During 2014 , we transferred $1 million of CDO/ABS available-for-sale securities, $1 million of RMBS other securities, and $1 million of CDO/ABS trading and other securities out of Level 3 primarily related to the greater observability of pricing inputs. We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table. Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2015 and 2014 is as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2015 December 31, 2014 Corporate debt Discounted cash flows Yield — 1.05% (a) RMBS Discounted cash flows Spread 665 bps (a) 736 bps (a) (b) CMBS Discounted cash flows Spread — 139 bps (a) (b) Other long-term investments Discounted cash flows and indicative valuations Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity N/A (c) N/A (c) (a) At December 31, 2015 and 2014 , RMBS consisted of one bond, which was less than $1 million . At December 31, 2014 , corporate debt and CMBS also consisted of one bond. (b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above. (c) Not applicable. The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us. Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2015 Assets Real estate owned $ — $ — $ 11 $ 11 $ 3 Commercial mortgage loans — — 8 8 (2 ) Total $ — $ — $ 19 $ 19 $ 1 At or for the Year Ended December 31, 2014 Assets Real estate owned $ — $ — $ 19 $ 19 $ 16 Commercial mortgage loans — — 11 11 (2 ) Total $ — $ — $ 30 $ 30 $ 14 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell during 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value during 2015 and 2014 and recorded the net impairments in investment revenues. The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table. Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2015 and 2014 is as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2015 December 31, 2014 Real estate owned Market approach Third-party valuation N/A * N/A * Commercial mortgage loans Market approach Local market conditions Nature of investment Comparable property sales Operating performance N/A * N/A * * Not applicable. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS As a result of the OneMain Acquisition, the Company’s pre-existing fair value methodologies were applied to the consolidated post-acquisition entity. Cash and Cash Equivalents The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value. Mutual Funds The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds. Investment Securities We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value. Finance Receivables The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. Finance Receivables Held for Sale We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Restricted Cash and Cash Equivalents The carrying amount of restricted cash and cash equivalents approximates fair value. Commercial Mortgage Loans Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses which is based on independent third-party valuations. Real Estate Owned We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset. Escrow Advance Receivable The carrying amount of escrow advance receivable approximates fair value. Receivables Related to Sales of Real Estate Loans and Related Trust Assets The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value. Long-term Debt We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt. We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2015 , we had no debt carried at fair value under the fair value option. We estimate the fair values associated with variable rate revolving lines of credit to be equal to par. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events REPLACEMENT OF 2015 WAREHOUSE FACILITY On January 21, 2016, OMFH entered into four separate bilateral conduit facilities with unaffiliated financial institutions that provide an aggregate $2.4 billion of committed financing on a revolving basis for personal loans originated by OneMain (each, a “New Facility” and together, the “New Facilities”). The New Facilities replaced the 2015 Warehouse Facility that was voluntarily terminated on the same date. The New Facilities provide higher advance rates, extend the term of the revolving periods of OMFH’s financing arrangements and eliminate certain terms and conditions included in the 2015 Warehouse Facility, including certain cross-default provisions and provisions requiring the absence of a material adverse change as a precondition to funding. In addition, the weighted average interest rate on the New Facilities is essentially the same as on the 2015 Warehouse Facility. The New Facilities also eliminate financial covenants, including the Net Worth Covenant and the Leverage Covenant in the 2015 Warehouse Facility. See Note 13 for further information on the 2015 Warehouse Facility and Note 12 for further description of its covenants. Neither OMFH nor any of its affiliates incurred any early termination penalty in connection with the termination of the 2015 Warehouse Facility. A description of each New Facility is set forth below: On January 21, 2016, we established a private securitization facility in which OneMain Financial B1 Warehouse Trust, a wholly owned special purpose vehicle, issued variable funding notes to be backed by personal loans acquired from subsidiaries of OMFH from time to time. The notes have a maximum principal balance of (i) $550 million from the closing date through (but excluding) the first anniversary of the closing date, (ii) $450 million from the first anniversary of the closing date through (but excluding) the second anniversary of the closing date, and (iii) $350 million from and after the second anniversary of the closing date. The notes will be funded over a three -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can be paid down in whole or in part and then redrawn. Following the three -year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in February 2021. As of February 24, 2016, $490 million was outstanding under the notes. On January 21, 2016, we established a private securitization facility in which OneMain Financial B2 Warehouse Trust, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $750 million to be backed by personal loans acquired from subsidiaries of OMFH from time to time. The notes will be funded over a three -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can be paid down in whole or in part and then redrawn. Following the three -year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in February 2021. As of February 24, 2016, $250 million was outstanding under the notes. On January 21, 2016, we established a private securitization facility in which OneMain Financial B3 Warehouse Trust, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of OMFH from time to time. The notes will be funded over a three -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can be paid down in whole or in part and then redrawn. Following the three -year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in January 2020. No amounts were outstanding under the notes as of February 24, 2016. On January 21, 2016, we established a private securitization facility in which OneMain Financial B4 Warehouse Trust, a wholly owned special purpose vehicle, issued variable funding notes with a maximum principal balance of $750 million to be backed by personal loans acquired from subsidiaries of OMFH from time to time. The notes will be funded over a three -year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can be paid down in whole or in part and then redrawn. Following the three -year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in February 2021. As of February 24, 2016, $460 million was outstanding under the notes. AMENDMENTS TO SFC’S CONDUIT FACILITIES On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. As of February 24, 2016, $298 million was outstanding under the notes. On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million . As of February 24, 2016, $100 million was outstanding under the notes. On February 24, 2016, we amended the note purchase agreement with the Midbrook 2013-VFN1 Trust to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. As of February 24, 2016, no amounts were outstanding under the notes. On February 24, 2016, we amended the note purchase agreement with the Whitford Brook 2014-VFN1 Trust to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12 th month following the end of the revolving period. As of February 24, 2016, $200 million was outstanding under the notes. SECURITIZATIONS OMFIT 2016-1 Securitization On February 10, 2016, OMFH completed a private securitization transaction in which a wholly owned special purpose vehicle of OMFH, OneMain Financial Issuance Trust 2016-1 (“OMFIT 2016-1”), issued $500 million of notes backed by personal loans. $414 million of the notes issued by OMFIT 2016-1, represented by Classes A and B, were sold to unaffiliated third parties at a weighted average interest rate of 3.79% and $86 million of the notes issued by OMFIT 2016-1, represented by Classes C and D, were retained by OMFH. Call of 2013-B Notes On February 16, 2016, Sixteenth Street Funding LLC (“Sixteenth Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by the Springleaf Funding Trust 2013-B on June 19, 2013 (the “2013-B Notes”). To redeem the 2013-B Notes, Sixteenth Street paid a redemption price of $371 million , which excluded $30 million for the Class C and Class D Notes owned by Sixteenth Street on the date of the optional redemption. The outstanding principal balance of the 2013-B Notes was $400 million on the date of the optional redemption. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Our selected quarterly financial data for 2015 was as follows: (dollars in millions except earnings (loss) per share) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 684 $ 428 $ 413 $ 406 Interest expense 215 171 171 158 Provision for finance receivable losses 510 82 80 87 Other revenues 103 51 56 51 Other expenses 402 204 207 174 Income (loss) before provision for (benefit from) income taxes (340 ) 22 11 38 Provision for (benefit from) income taxes (148 ) 2 (8 ) 7 Net income (loss) (192 ) 20 19 31 Net income attributable to non-controlling interests 27 31 31 31 Net loss attributable to OneMain Holdings, Inc. $ (219 ) $ (11 ) $ (12 ) $ — Earnings (loss) per share: Basic $ (1.63 ) $ (0.08 ) $ (0.09 ) $ — Diluted (1.63 ) (0.08 ) (0.09 ) — Our selected quarterly financial data for 2014 was as follows: (dollars in millions except earnings (loss) per share) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 413 $ 484 $ 533 $ 552 Interest expense 157 180 192 205 Provision for finance receivable losses 95 103 115 161 Other revenues (27 ) 686 92 81 Other expenses 172 190 171 168 Income (loss) before provision for (benefit from) income taxes (38 ) 697 147 99 Provision for (benefit from) income taxes (13 ) 235 44 31 Net income (loss) (25 ) 462 103 68 Net income attributable to non-controlling interests 21 35 31 16 Net income (loss) attributable to OneMain Holdings, Inc. $ (46 ) $ 427 $ 72 $ 52 Earnings (loss) per share: Basic $ (0.41 ) $ 3.72 $ 0.63 $ 0.46 Diluted (0.41 ) 3.70 0.63 0.45 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | Schedule I — Condensed Financial Information of Registrant ONEMAIN HOLDINGS, INC. Condensed Balance Sheets (dollars in millions) December 31, 2015 2014 Assets Cash and cash equivalents $ 1 $ 6 Investment in subsidiaries 2,630 1,789 Note receivable from affiliate 134 239 Receivable from affiliate 1 — Total assets $ 2,766 $ 2,034 Liabilities and Shareholders’ Equity Payable to affiliates $ 10 $ 8 Deferred and accrued taxes 5 1 Total liabilities 15 9 Shareholders’ equity 2,751 2,025 Total liabilities and shareholders’ equity $ 2,766 $ 2,034 See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Condensed Statements of Operations and Comprehensive Income Period August 9, 2013 Through (dollars in millions) December 31, 2015 December 31, 2014 December 31, 2013 Interest income from affiliate $ 13 $ 8 $ 2 Investment income 1 — — Income before provision for income taxes 14 8 2 Provision for income taxes 5 3 1 Equity in undistributed net income (loss) from subsidiaries (251 ) 500 37 Net income (loss) (242 ) 505 38 Other comprehensive income (loss), net of tax (36 ) (25 ) 1 Comprehensive income (loss) $ (278 ) $ 480 $ 39 See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Condensed Statements of Cash Flows Period August 9, 2013 Through (dollars in millions) December 31, 2015 December 31, 2014 December 31, 2013 Net cash provided by operating activities $ 23 $ — $ — Cash flows from investing activities Capital contributions to subsidiaries (1,100 ) — — Principal collections on note receivable from affiliate 96 — — Cash advance on note receivable from affiliate — — (230 ) Net cash used for investing activities (1,004 ) — (230 ) Cash flows from financing activities Proceeds from issuance of common stock, net of offering costs paid 976 — 236 Net cash provided by financing activities 976 — 236 Net change in cash and cash equivalents (5 ) — 6 Cash and cash equivalents at beginning of period 6 6 — Cash and cash equivalents at end of period $ 1 $ 6 $ 6 Supplemental non-cash financing activities Increase in payable to affiliate for stock offering costs $ 2 $ — $ 5 See Notes to Condensed Financial Statements. ONEMAIN HOLDINGS, INC. Notes to Condensed Financial Statements 1. Organization and Purpose OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) is referred to in this schedule as “OMH”. OMH is a Delaware Corporation. Springleaf Holdings, LLC , a subsidiary of AGF Holding Inc., was incorporated on August 5, 2013. In connection with its formation, Springleaf Holdings, LLC issued 100 common interests to AGF Holding Inc., its sole member. Springleaf Holdings, LLC was formed solely to acquire, through a series of restructuring transactions, all of the common stock of Springleaf Finance, Inc. (“SFI”), an Indiana corporation. Springleaf Holdings, LLC did not engage in any significant activities from the date of inception of August 5, 2013 to October 9, 2013 other than those incidental to its formation including the issuance of common interests in the amount of $1,000 on August 9, 2013. On November 15, 2015, OMH completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company for $4.5 billion in cash (the OneMain Acquisition”). In connection with the OneMain Acquisition, Springleaf Holdings, Inc. changed its name to OneMain Holdings, Inc. (previously defined above as “OMH”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. 2. Accounting Policies OMH records its investments in subsidiaries at cost plus the equity in undistributed net income (loss) from subsidiaries since the date of incorporation or, if purchased, the date of the acquisition. The condensed financial statements of the registrant should be read in conjunction with OMH’s consolidated financial statements. 3. Note Receivable from Affiliate Note receivable from affiliate reflects a master note with SFI. The interest rate on the unpaid principal balance is the lender’s cost of funds rate, which was 5.82% at December 31, 2015 . Interest income on the master note totaled $13 million and $8 million for 2015 and 2014 , respectively, and $2 million for the period of August 9, 2013 through December 31, 2013. 4. Payable to Affiliates Payable to affiliates primarily reflects offering costs incurred in conjunction with the public offerings in 2013 and 2015 and tax liabilities that were paid by affiliates on behalf of OMH. No interest was charged for these transactions. 5. Subsidiary Debt Guarantee SFC Indentures On December 3, 2014, OMH entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee, on a senior basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by Springleaf Finance Corporation (“SFC”) (the “5.25% SFC Notes”). As of December 31, 2015, approximately $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350 million aggregate principal amount of a junior subordinated debenture on a junior subordinated basis issued by SFC (collectively, the “SFC Notes”). The SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60 -year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60 -year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2015 , approximately $4.2 billion aggregate principal amount of the SFC Notes, including $2.3 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH Indenture On December 11, 2014, OMFH and certain of its subsidiaries entered into an indenture (the “OMFH Indenture”), among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of $700 million aggregate principal amount of 6.75% Senior Notes due 2019 and $800 million in aggregate principal amount of 7.25% Senior Notes due 2021 (collectively, the “OMFH Notes”). The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2015 , approximately $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated balance sheet and consolidated cash flow statement. To conform to the 2015 presentation, we reclassified certain prior period items as a result of our early adoption of accounting standards update (“ASU”) 2015-03, Interest - Imputation of Interest (“ASU 2015-03”). See Note 4 for further information on the adoption of this ASU. |
Operating Segments | Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2015 , our three segments include: • Consumer and Insurance; • Acquisitions and Servicing; and • Real Estate. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. Management considers Consumer and Insurance, and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include: (i) Springleaf legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) Springleaf liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) Springleaf lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of Springleaf United Kingdom subsidiary. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisition and Servicing - includes interest expense specifically identified to our SpringCastle portfolio Consumer and Insurance, Real Estate and Other - The Company has securitization debt, secured term loan and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Consumer and Insurance - receives remainder of unallocated average debt; and l Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) The net effect of the change in debt allocation and asset base methodologies for 2015 had it been in place as of the beginning of the year would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively. For the period third quarter 2014 to the OneMain Acquisition Total average unsecured debt is allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equals 83%, up to 100% and 100% of each respective asset base. Any excess is allocated to Consumer and Insurance. Average unsecured debt is allocated after average securitized debt to achieve the calculated average segment debt. Asset base represents the following: l Consumer and Insurance - average net finance receivables including average net finance receivables held for sale; l Real Estate - average net finance receivables including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and l Other - average net finance receivables other than the periods listed below: l May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents less operating cash reserve and cash included in other segments. Prior to third quarter 2014 The ratio of each segment average net finance receivables to total average net finance receivables is calculated. This ratio is applied to average total debt to calculate the average segment debt. Average unsecured debt is allocated after average securitized debt and secured term loan to achieve the calculated average segment debt. Provision for finance receivable losses Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which is allocated to the segments based on the interest expense allocation of debt. Salaries and benefits Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other operating expenses Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims Directly correlated with a specific segment. |
Finance Receivables | Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. A significant portion of insurance claims and policyholder liabilities originate from the finance receivables. Historically, our policy has been to report them as liabilities and not net them against finance receivables; however, during the fourth quarter of 2015, we changed our presentation of unearned premiums and certain unpaid claim liabilities in the consolidated balance sheets as a reduction to net finance receivables. We believe this presentation is preferable as it aligns more closely with the presentation of these balances with our peers. We retrospectively applied this change in presentation in our consolidated balance sheets as of December 31, 2014 to ensure comparability across reporting periods. Similarly we will change comparable prior periods in our Forms 10-Q which we plan to file in 2016. As this is a change in balance sheet presentation only, there is no effect on net income (loss) or net income (loss) attributable to OMH. |
Finance Receivable Revenue Recognition | Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the loans acquired through a joint venture in which we own a 47% equity interest (the “SpringCastle Portfolio”), and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. |
Purchased Credit Impaired Finance Receivables | Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (ii) may have been previously modified, or (iii) had other indications of impairment as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is charged-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its carrying amount with the carrying amount being determined using the pro-rata method (the unpaid principal balance (“UPB”) of the particular finance receivable divided by the UPB of the pool multiplied by the carrying amount of the pool). Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool. If a finance receivable is removed from the pool because it is charged-off, it is removed at its carrying amount with a charge to the provision for finance receivable losses. |
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. |
Finance Receivables Held for Sale | Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the Consolidated Statements of Operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. |
Real Estate Owned | Real Estate Owned We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. |
Reserve for Sales Recourse Obligations | Reserve for Sales Recourse Obligations When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets At the time we initially recognize goodwill or other intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of goodwill, the OneMain trade name, insurance licenses, lending licenses and certain domain names, which we determined to have indefinite lives. For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. VOBA is the present value of future profits (“PVFP”) of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with ASC Topic 944. For goodwill and indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. |
Insurance Premiums | Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Policy and Claim Reserves | Policy and Claim Reserves Policy reserves for credit life, credit disability, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. |
Acquisition Costs | Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. |
Investment Securities | Investment Securities We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability. |
Impairments on Investment Securities | Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. |
Investment Revenue Recognition | Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues. |
Variable Interest Entities | Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. |
Other Invested Assets | Other Invested Assets Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Long-term Debt | Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. |
Income Taxes | Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including: • the nature, frequency, and severity of current and cumulative financial reporting losses; • the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences; • the carryforward periods for the net operating and capital loss carryforwards; • the sources and timing of future taxable income; and • tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts. We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. |
Derivatives Financial Instruments | Derivative Financial Instruments Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows. We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties. |
Benefit Plans | Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24 . In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income or loss by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding unvested restricted stock units and awards. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. |
Prior Period Revisions | PRIOR PERIOD REVISIONS During the second quarter of 2015, we discovered that we had not charged-off certain bankrupt accounts in our SpringCastle Portfolio and we identified an error in the calculation of the allowance for our TDR personal loans. As a result of these findings, we recorded an out-of-period adjustment in the second quarter of 2015, which increased provision for finance receivable losses by $8 million , decreased provision for income taxes by $3 million , and decreased basic and diluted earnings per share each by $0.03 for the three and six months ended June 30, 2015. The adjustment was not material to our results of operations for 2015. During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements. However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows: (dollars in millions) Consumer Real Other Assets * March 31, 2015 $ 5,117 $ 3,613 $ 1,690 December 31, 2014 4,411 4,116 441 September 30, 2014 4,633 3,745 615 June 30, 2014 4,397 6,688 963 December 31, 2013 4,139 8,650 520 * The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03. During the third quarter of 2015, we discovered that our cash equivalents in certificates of deposit and commercial paper, which totaled $165 million at December 31, 2014, were incorrectly presented as a Level 1 investment, instead of a Level 2 investment in our disclosure of the fair value hierarchy of our financial instruments in our 2014 Annual Report on Form 10-K. The affected fair value amount has been corrected in Note 24 of this report. This presentation error was not material to any previously issued financial statements. After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated. |
ACCOUNTING PRONOUNCEMENTS ADOPTED AND TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Troubled Debt Restructurings In January of 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure , which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments in this ASU became effective prospectively for the Company for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated financial statements. Debt Issuance Costs In April of 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest , which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charge or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued and must be applied retrospectively. We elected to early adopt this ASU as of June 30, 2015 and applied this ASU retrospectively. On June 30, 2015, we reclassified $32 million of debt issuance costs previously recorded in other assets to long-term debt. After retrospectively applying this new ASU, we also reclassified $29 million of debt issuance costs as of December 31, 2014 from other assets to long-term debt in our condensed consolidated balance sheet. We continue to report fees paid to access our conduit facilities in other assets. The adoption of this ASU did not have a material effect on our consolidated financial statements. In August of 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest , to clarify that debt issuance costs associated with line-of-credit arrangements are to be deferred and amortized over the term of the arrangement. The amendment also acknowledged absence of authoritative guidance within previously issued ASU 2015-03 for debt issuance costs related to line-of-credit arrangements. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements. Push-down Accounting In May of 2015, the FASB issued ASU 2015-08, Business Combinations-Pushdown Accounting , to remove Securities and Exchange Commission (the “SEC”) staff guidance on push-down accounting from the Accounting Standards Codification (“ASC”). The SEC staff had previously rescinded its guidance with the issuance of Staff Accounting Bulletin No. 115 when the FASB issued its own push-down accounting guidance in November 2014. The ASU became effective immediately. The adoption of this ASU did not have a material effect on our consolidated financial statements. Plan Accounting In July of 2015, the FASB issued ASU 2015-12, Plan Accounting , to simplify certain aspects of employee benefit plan (“EBP”) accounting while satisfying the needs of users of financial statements, including plan participants. The new guidance simplifies the measurement of fully benefit-responsive investment contracts and disclosures about plan investments. It also allows an EBP with a fiscal year end that doesn’t coincide with the end of a calendar month to choose a simpler way of measuring its investments and investment-related accounts. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of September 30, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements. Business Combination Adjustments In September of 2015, the FASB issued ASU 2015-16, Business Combinations , to eliminate the requirement to restate prior period financial statements for measurement period adjustments. This update requires the cumulative impact of a measurement period adjustment, including the impact on prior periods, to be recognized in the reporting period in which the adjustment is identified. The ASU is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. We elected to early adopt this ASU as of December 31, 2015. The adoption of this ASU did not have a material effect on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated financial statements. Consolidation In February of 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis , which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements. Short-Duration Insurance Contracts Disclosures In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , to address enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. We are currently evaluating the potential impact of the adoption the ASU on our consolidated financial statements. Technical Corrections and Improvements In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements , to correct differences between original guidance and the Codification, clarify the guidance, correct references and make minor improvements affecting a variety of topics. While most of the amendments are not expected to have a significant effect on practice, some of them could change practice for some entities. The amendments to transition guidance are effective for fiscal years beginning after December 15, 2015; all other changes are effective upon issuance of this ASU. We are currently evaluating the potential impact of the adoption of this ASU on our consolidated financial statements. Balance Sheet Classification of Deferred Taxes In November of 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , which simplifies the presentation and requires all deferred tax assets (“DTAs”) and liabilities (“DTLs”), along with related valuation allowances, to be classified as noncurrent. In essence, each jurisdiction will have only one net noncurrent DTA/DTL. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning December 15, 2016. Early adoption is permitted and may be applied either prospectively or retrospectively. We evaluated the potential impact of the adoption of this ASU and concluded that it will not have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncement issued during 2015, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
OneMain Acquisition (Tables)
OneMain Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) Amounts Cash consideration $ 4,478 Fair value of assets acquired: Cash and cash equivalents (a) 958 Investment securities 1,294 Personal loans 8,801 Intangibles (b) 555 Other assets (c) 247 Fair value of liabilities assumed: Long-term debt (7,725 ) Unearned premium, insurance policy and claims reserves (d) (936 ) Other liabilities (e) (156 ) Goodwill (f) $ 1,440 (a) Cash and cash equivalents includes restricted cash and cash equivalents. (b) Goodwill and intangibles were recorded at OMFH subsidiary level. (c) Other assets consist of deferred tax assets, premises and equipment, and other acquired assets. (d) Unearned premium, insurance policy and claims reserves includes $409 million related to unearned premium and claims reserves, which is presented as a contra-asset on the balance sheet. (e) Other liabilities consist of accounts payable, accrued expenses, and other assumed liabilities. |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination | In connection with the allocation of the purchase price, we identified the following intangible assets: (dollars in millions) Amount Estimated Useful Life Trade names $ 220 Indefinite Customer relationships 205 6 years Value of business acquired (“VOBA”) 105 5-30 years Licenses 25 Indefinite Total $ 555 |
Business Acquisition, Pro Forma Information | The following table presents the unaudited pro forma financial information: (dollars in millions) Years Ended December 31, 2015 2014 Interest income $ 3,216 $ 3,104 Net income (loss) attributable to OneMain Holdings, Inc. (203 ) 57 Interest income and net loss of OMFH subsequent to the effective closing date of the acquisition of October 31, 2015 were as follows: (dollars in millions) Two Months Ended December 31, 2015 Interest income $ 246 Net loss (187 ) |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | During the second quarter of 2015, we identified incorrect allocations of our total assets disclosure within the segment footnote. We evaluated the impact of these errors and concluded that they were not material to any previously issued financial statements. However, we corrected the previously disclosed periods in our subsequent quarterly reports and in Note 23 of this report and will also correct the prior period segment disclosure presented in our next quarterly report as follows: (dollars in millions) Consumer Real Other Assets * March 31, 2015 $ 5,117 $ 3,613 $ 1,690 December 31, 2014 4,411 4,116 441 September 30, 2014 4,633 3,745 615 June 30, 2014 4,397 6,688 963 December 31, 2013 4,139 8,650 520 * The revised amounts do not reflect the retrospective reclassifications of our debt issuance costs previously recorded in other assets to long-term debt, as a result of our early adoption of ASU 2015-03. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Gross receivables * $ 15,325 $ 1,545 $ 520 $ 25 $ 17,415 Unearned finance charges and points and fees (2,261 ) — — (2 ) (2,263 ) Accrued finance charges 147 31 4 — 182 Deferred origination costs 56 — — — 56 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Gross receivables * $ 4,493 $ 1,941 $ 621 $ 52 $ 7,107 Unearned finance charges and points and fees (765 ) — (1 ) (5 ) (771 ) Accrued finance charges 58 38 5 1 102 Deferred origination costs 45 — — — 45 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. |
Schedule of unused credit lines extended to customers by the Company | Unused lines of credit extended to customers by the Company were as follows: (dollars in millions) December 31, 2015 2014 Personal loans $ 2 $ 1 SpringCastle Portfolio 365 354 Real estate loans 30 31 Total $ 397 $ 386 |
Schedule of largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: December 31, 2015 2014 * (dollars in millions) Amount Percent Amount Percent North Carolina $ 1,356 9 % $ 634 10 % Texas 1,198 8 237 4 Pennsylvania 950 6 388 6 California 928 6 533 8 Ohio 769 5 388 6 Virginia 707 5 349 5 Illinois 663 4 412 6 Georgia 654 4 283 4 Other 8,165 53 3,259 51 Total $ 15,390 100 % $ 6,483 100 % * December 31, 2014 concentrations of net finance receivables are presented in the order of December 31, 2015 state concentrations. |
Summary of net finance receivables by type by days delinquent | The following is a summary of net finance receivables by type and by days delinquent: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Net finance receivables: 60-89 days past due $ 124 $ 22 $ 18 $ — $ 164 90-119 days past due 93 14 3 — 110 120-149 days past due 54 11 2 1 68 150-179 days past due 50 10 2 — 62 180 days or more past due 4 1 12 — 17 Total delinquent finance receivables 325 58 37 1 421 Current 12,776 1,475 474 22 14,747 30-59 days past due 166 43 13 — 222 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Net finance receivables: 60-89 days past due $ 37 $ 31 $ 12 $ 1 $ 81 90-119 days past due 30 19 9 — 58 120-149 days past due 24 16 5 1 46 150-179 days past due 21 14 4 — 39 180 days or more past due 2 2 12 — 16 Total delinquent finance receivables 114 82 42 2 240 Current 3,661 1,839 565 45 6,110 30-59 days past due 56 58 18 1 133 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 |
Schedule of performing and nonperforming net finance receivables by type | Our performing and nonperforming net finance receivables by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Performing $ 13,066 $ 1,540 $ 505 $ 22 $ 15,133 Nonperforming 201 36 19 1 257 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 December 31, 2014 Performing $ 3,754 $ 1,928 $ 595 $ 47 $ 6,324 Nonperforming 77 51 30 1 159 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 |
Schedule of information regarding purchased credit impaired finance receivables | Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans * Total December 31, 2015 Carrying amount, net of allowance $ 624 $ 223 $ 76 $ 923 Outstanding balance 911 482 136 1,529 Allowance for purchased credit impaired finance receivable losses — — 7 7 December 31, 2014 Carrying amount, net of allowance $ — $ 340 $ 93 $ 433 Outstanding balance — 628 151 779 Allowance for purchased credit impaired finance receivable losses — — 5 5 * Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2015 2014 Carrying amount $ 55 $ 68 Outstanding balance 89 99 |
Purchased credit impaired FA Loans held for sale [Table Text Block] | * Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2015 2014 Carrying amount $ 55 $ 68 Outstanding balance 89 99 |
Schedule of changes in accretable yield for purchased credit impaired finance receivables | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2015 Balance at beginning of period $ — $ 541 $ 19 $ 560 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (14 ) (83 ) (10 ) (107 ) Reclassifications from nonaccretable difference (b) — — 31 31 Disposals of finance receivables (c) (9 ) (36 ) (1 ) (46 ) Balance at end of period $ 143 $ 422 $ 39 $ 604 Year Ended December 31, 2014 Balance at beginning of period $ — $ 325 $ 772 $ 1,097 Accretion (a) — (80 ) (81 ) (161 ) Reclassifications from nonaccretable difference (b) — 331 — 331 Transfers due to finance receivables sold — — (656 ) (656 ) Disposals of finance receivables (c) — (35 ) (16 ) (51 ) Balance at end of period $ — $ 541 $ 19 $ 560 Year Ended December 31, 2013 Balance at beginning of period $ — $ — $ 629 $ 629 Additions — 438 — 438 Accretion — (77 ) (129 ) (206 ) Reclassifications from nonaccretable difference (b) — — 305 305 Disposals of finance receivables (c) — (36 ) (33 ) (69 ) Balance at end of period $ — $ 325 $ 772 $ 1,097 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2015 2014 Accretion $ 6 $ 14 (b) Reclassifications from nonaccretable difference represents the increases in accretion resulting from higher estimated undiscounted cash flows. (c) Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period. |
Impaired Financing Receivables | Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2015 2014 Accretion $ 6 $ 14 |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total December 31, 2015 TDR gross finance receivables (b) $ 46 $ 14 $ 200 $ 260 TDR net finance receivables 46 13 201 260 Allowance for TDR finance receivable losses 17 4 34 55 December 31, 2014 TDR gross finance receivables (b) $ 22 $ 11 $ 196 $ 229 TDR net finance receivables 22 10 196 228 Allowance for TDR finance receivable losses 1 3 32 36 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 December 31, 2014 TDR gross finance receivables $ — $ 91 $ 91 TDR net finance receivables — 91 91 (b) As defined earlier in this Note. |
TDR finance receivables held for sale | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 December 31, 2014 TDR gross finance receivables $ — $ 91 $ 91 TDR net finance receivables — 91 91 |
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 TDR average net receivables (b) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 Year Ended December 31, 2014 TDR average net receivables $ 17 $ 5 $ 957 $ 979 TDR finance charges recognized 2 1 48 51 Year Ended December 31, 2013 TDR average net receivables $ 15 $ — $ 1,120 $ 1,135 TDR finance charges recognized 1 — 63 64 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2015 TDR average net receivables * $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables ** $ — $ 250 $ 250 TDR finance charges recognized — 5 5 * TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. ** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. (b) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net receivables. |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2015 TDR average net receivables * $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables ** $ — $ 250 $ 250 TDR finance charges recognized — 5 5 * TDR personal loan average net receivables held for sale for 2015 reflect a three-month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. ** TDR real estate loan average net receivables held for sale for 2014 reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. |
Schedule of information regarding new volume of the TDR finance receivables | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 48 $ 7 $ 21 $ 76 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (b) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,425 721 385 9,531 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ 18 $ 10 $ 215 $ 243 Post-modification TDR net finance receivables: Rate reduction $ 10 $ 10 $ 158 $ 178 Other (b) 6 — 46 52 Total post-modification TDR net finance receivables $ 16 $ 10 $ 204 $ 230 Number of TDR accounts 4,213 1,155 2,385 7,753 Year Ended December 31, 2013 Pre-modification TDR net finance receivables $ 15 $ — $ 576 $ 591 Post-modification TDR net finance receivables: Rate reduction $ 8 $ — $ 554 $ 562 Other (b) 4 — 51 55 Total post-modification TDR net finance receivables $ 12 $ — $ 605 $ 617 Number of TDR accounts 3,240 — 7,106 10,346 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 (b) “Other” modifications include extension of term and forgiveness of principal or interest. |
new volume of the TDR finance receivables held for sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 |
Schedule of Troubled Debt Restructurings, Subsequently Defaulted [Table Text Block] | Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming ( 90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,655 147 46 1,848 Year Ended December 31, 2014 TDR net finance receivables (b) $ 1 $ 1 $ 33 $ 35 Number of TDR accounts 141 53 524 718 Year Ended December 31, 2013 TDR net finance receivables (b) $ 1 $ — $ 69 $ 70 Number of TDR accounts 355 — 929 1,284 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Schedule of Trouble Debt Restructurings, Subsequently Defaulted, Held for Sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 |
Allowance for Finance Receiva39
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2015 Balance at beginning of period $ 132 $ 3 $ 40 $ 1 $ 176 Provision for finance receivable losses 655 88 14 2 759 Charge-offs (292 ) (99 ) (19 ) (3 ) (413 ) Recoveries 47 12 6 1 66 Reduction in the carrying value of personal loans transferred to finance receivables held for sale (a) (1 ) — — — (1 ) Balance at end of period $ 541 $ 4 $ 41 $ 1 $ 587 Year Ended December 31, 2014 Balance at beginning of period $ 95 $ 1 $ 235 $ 2 $ 333 Provision for finance receivable losses 205 152 114 3 474 Charge-offs (b) (193 ) (164 ) (76 ) (5 ) (438 ) Recoveries (c) 25 14 7 1 47 Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (d) — — (240 ) — (240 ) Balance at end of period $ 132 $ 3 $ 40 $ 1 $ 176 Year Ended December 31, 2013 Balance at beginning of period $ 67 $ — $ 114 $ 2 $ 183 Provision for finance receivable losses 130 133 265 (1 ) 527 Charge-offs (e) (149 ) (138 ) (160 ) (9 ) (456 ) Recoveries (f) 48 6 16 10 80 Transfers to finance receivables held for sale (g) (1 ) — — — (1 ) Balance at end of period $ 95 $ 1 $ 235 $ 2 $ 333 (a) During 2015, we reduced the carrying value of certain personal loans to $608 million as a result of the transfer of these finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. (b) Charge-offs during 2014 included a $4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. (c) Recoveries during 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. (d) During 2014, we reduced the carrying value of certain real estate loans to $6.7 billion as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. (e) Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13 million of additional charge-offs in March 2013. (f) Recoveries in 2013 included $37 million ( $23 million of personal loan recoveries, $9 million of real estate loan recoveries, and $5 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4 million adjustment for the subsequent buyback of certain finance receivables. (g) During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. |
Schedule of carrying amount charged-off for purchased credit impaired loans | The carrying value charged-off for purchased credit impaired loans was as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Charged-off against provision for finance receivable losses: OM Loans $ 30 $ — $ — SCP Loans 21 48 72 FA Loans gross charge-offs * 1 15 42 * Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2015 Allowance for finance receivable losses for finance receivables: Collectively evaluated for impairment $ 524 $ — $ — $ 1 $ 525 Acquired with deteriorated credit quality (purchased credit impaired finance receivables) — — 7 — 7 Individually evaluated for impairment (TDR finance receivables) 17 4 34 — 55 Total $ 541 $ 4 $ 41 $ 1 $ 587 Finance receivables: Collectively evaluated for impairment $ 12,599 $ 1,340 $ 387 $ 23 $ 14,349 Purchased credit impaired finance receivables 624 223 28 — 875 TDR finance receivables 44 13 109 — 166 Total $ 13,267 $ 1,576 $ 524 $ 23 $ 15,390 Allowance for finance receivable losses as a percentage of finance receivables 4.07 % 0.27 % 7.93 % 3.45 % 3.81 % December 31, 2014 Allowance for finance receivable losses for finance receivables: Collectively evaluated for impairment $ 131 $ — $ 3 $ 1 $ 135 Purchased credit impaired finance receivables — — 5 — 5 TDR finance receivables 1 3 32 — 36 Total $ 132 $ 3 $ 40 $ 1 $ 176 Finance receivables: Collectively evaluated for impairment $ 3,809 $ 1,629 $ 490 $ 48 $ 5,976 Purchased credit impaired finance receivables — 340 30 — 370 TDR finance receivables 22 10 105 — 137 Total $ 3,831 $ 1,979 $ 625 $ 48 $ 6,483 Allowance for finance receivable losses as a percentage of finance receivables 3.45 % 0.14 % 6.42 % 1.56 % 2.71 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment securities | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2015 Fixed maturity available-for-sale securities: Bonds: U.S. government and government sponsored entities $ 112 $ — $ (1 ) $ 111 Obligations of states, municipalities, and political subdivisions 140 1 (1 ) 140 Non-U.S. government and government sponsored entities 126 1 (1 ) 126 Corporate debt 1,018 3 (22 ) 999 Mortgage-backed, asset-backed, and collateralized: Residential mortgage-backed securities (“RMBS”) 128 — — 128 Commercial mortgage-backed securities (“CMBS”) 117 — (1 ) 116 Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) 71 — — 71 Total bonds 1,712 5 (26 ) 1,691 Preferred stock 14 — (1 ) 13 Common stock 23 — — 23 Other long-term investments 2 — — 2 Total (a) $ 1,751 $ 5 $ (27 ) $ 1,729 December 31, 2014 Fixed maturity available-for-sale securities: Bonds: U.S. government and government sponsored entities $ 61 $ 3 $ — $ 64 Obligations of states, municipalities, and political subdivisions 99 3 — 102 Certificates of deposit and commercial paper (b) 3 — — 3 Corporate debt 256 12 (1 ) 267 Mortgage-backed, asset-backed, and collateralized: RMBS 71 2 — 73 CMBS 25 — (1 ) 24 CDO/ABS 63 — — 63 Total bonds 578 20 (2 ) 596 Preferred stock 7 — — 7 Other long-term investments 1 — — 1 Total (a) $ 586 $ 20 $ (2 ) $ 604 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 and 2014 , which is classified as a restricted investment and carried at cost. (b) Includes certificates of deposit pledged as collateral, totaling $2 million at December 31, 2014 , primarily to support bank lines of credit. |
Schedule of fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2015 Bonds: U.S. government and government sponsored entities $ 102 $ (1 ) $ — $ — $ 102 $ (1 ) Obligations of states, municipalities, and political subdivisions 69 (1 ) 2 — 71 (1 ) Non-U.S. government and government sponsored entities 19 (1 ) — — 19 (1 ) Corporate debt 786 (22 ) 7 — 793 (22 ) RMBS 107 — — — 107 — CMBS 104 (1 ) 5 — 109 (1 ) CDO/ABS 71 — — — 71 — Total bonds 1,258 (26 ) 14 — 1,272 (26 ) Preferred stock 2 — 6 (1 ) 8 (1 ) Common stock 16 — — — 16 — Other long-term investments 1 — — — 1 — Total $ 1,277 $ (26 ) $ 20 $ (1 ) $ 1,297 $ (27 ) December 31, 2014 Bonds: U.S. government and government sponsored entities $ — $ — $ 1 $ — $ 1 $ — Obligations of states, municipalities, and political subdivisions 27 — 1 — 28 — Corporate debt 36 (1 ) 6 — 42 (1 ) RMBS 9 — — — 9 — CMBS 16 (1 ) 2 — 18 (1 ) CDO/ABS 46 — — — 46 — Total bonds 134 (2 ) 10 — 144 (2 ) Preferred stock 6 — — — 6 — Total $ 140 $ (2 ) $ 10 $ — $ 150 $ (2 ) * Unrealized losses on certain available-for-sale securities were less than $1 million and, therefore, are not quantified in the table above. |
Schedule of changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: (dollars in millions) At or for the Years Ended December 31, 2015 Balance at beginning of period $ 1 Additions: Due to other-than-temporary impairments: Impairment not previously recognized 1 Balance at end of period $ 2 |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2015 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 170 $ 170 Due after 1 year through 5 years 602 607 Due after 5 years through 10 years 419 424 Due after 10 years 185 195 Mortgage-backed, asset-backed, and collateralized securities 315 316 Total $ 1,691 $ 1,712 |
Schedule of fair value of trading securities by type | The fair value of trading and other securities by type was as follows: (dollars in millions) December 31, 2015 2014 Fixed maturity trading and other securities: Bonds: U.S. government and government sponsored entities $ — $ 303 Obligations of states, municipalities, and political subdivisions — 14 Certificates of deposit and commercial paper — 238 Non-U.S. government and government sponsored entities 3 20 Corporate debt 124 1,056 Mortgage-backed, asset-backed, and collateralized: RMBS 2 36 CMBS 2 151 CDO/ABS — 512 Total bonds 131 2,330 Preferred stock 6 — Total * $ 137 $ 2,330 * The fair value of other securities totaled $128 million at December 31, 2015 and $5 million at December 31, 2014 . |
Available-for-sale securities | |
Investment securities | |
Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities | The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Proceeds from sales and redemptions $ 431 $ 280 $ 615 Realized gains $ 15 $ 9 $ 5 Realized losses (1 ) (1 ) (2 ) Net realized gains $ 14 $ 8 $ 3 |
Trading securities | |
Investment securities | |
Schedule of net unrealized and realized gains (losses) on trading securities | The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2015 2014 Net unrealized losses on trading and other securities held at year end * $ — $ (9 ) Net realized gains (losses) on trading and other securities sold or redeemed during the year * (3 ) 5 Total $ (3 ) $ (4 ) * The net unrealized and realized gains (losses) on our other securities for the year ended December 31, 2013 were less than $1 million and, therefore, are not quantified in the table above. |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets -- Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment were as follows: (dollars in millions) Consumer and Insurance Year Ended December 31, 2015 Balance at beginning of period $ — Goodwill - OneMain Acquisition * 1,440 Balance at end of period $ 1,440 * Goodwill was recorded at OMFH subsidiary level. |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount * Accumulated Amortization Net Other Intangible Assets December 31, 2015 Customer relationships 223 (24 ) 199 Trade names 220 — 220 VOBA 141 (39 ) 102 Licenses 37 — 37 Customer lists 9 (9 ) — Domain names 1 — 1 Total $ 631 $ (72 ) $ 559 December 31, 2014 Customer relationships $ 18 $ (15 ) $ 3 VOBA 36 (32 ) 4 Licenses 12 — 12 Customer lists 9 (8 ) 1 Domain names 1 — 1 Total $ 76 $ (55 ) $ 21 * In connection with the OneMain Acquisition, OMFH recorded $555 million of other intangible assets in November of 2015. See Note 2 for further information on the other intangibles related to the OneMain Acquisition. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization of other intangible assets for each of the next 5 years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2016 $ 67 2017 52 2018 44 2019 40 2020 38 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Assets [Abstract] | |
Schedule of components of other assets | Components of other assets were as follows: (dollars in millions) December 31, 2015 2014 Fixed assets, net (a) $ 179 $ 91 Deferred tax asset 120 — Ceded insurance reserves 107 22 Other investments (b) 92 104 Prepaid expenses and deferred charges (c) 59 26 Current tax receivable (d) 20 103 Escrow advance receivable 11 8 Cost basis investments 11 — Real estate owned 8 13 Receivables related to sales of real estate loans and related trust assets (e) 5 79 Other 26 18 Total $ 638 $ 464 (a) Fixed assets were net of accumulated depreciation of $190 million at December 31, 2015 and $170 million at December 31, 2014 . (b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. (c) As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt as of December 31, 2014 . (d) Current tax receivable includes current federal, foreign, and state tax assets. (e) Receivables related to sales of real estate loans and related trust assets includes $5 million and $64 million , respectively, of holdback provisions as of December 31, 2015 and 2014 . |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of carrying value and fair value of long-term debt by type | Carrying value and fair value of long-term debt by type were as follows: December 31, 2015 December 31, 2014 (dollars in millions) Carrying Value Fair Value Carrying Value * Fair Value Senior debt $ 17,128 $ 17,371 $ 8,184 $ 8,920 Junior subordinated debt 172 245 172 262 Total $ 17,300 $ 17,616 $ 8,356 $ 9,182 * As a result of our early adoption of ASU 2015-03, we reclassified $29 million of debt issuance costs from other assets to long-term debt - senior debt as of December 31, 2014 . |
Schedule of weighted average interest rates on long-term debt by type | Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2015 2014 2013 2015 2014 Senior debt 6.56 % 6.84 % 6.75 % 5.32 % 7.16 % Junior subordinated debt 12.26 12.26 12.26 12.26 12.26 Total 6.65 6.93 6.82 5.39 7.26 |
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2015 were as follows: Senior Debt (dollars in millions) Securitizations Revolving Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.41% - 6.94% 1.65% - 3.65% 5.25% - 8.25% 6.00% First quarter 2016 $ — $ — $ — $ — $ — Second quarter 2016 — — — — — Third quarter 2016 — — 375 — 375 Fourth quarter 2016 — — — — — 2016 — — 375 — 375 2017 — — 1,903 — 1,903 2018 — — — — — 2019 — — 1,400 — 1,400 2020 — — 300 — 300 2021-2067 — — 1,750 350 2,100 Securitizations (b) 9,040 — — — 9,040 Revolving conduit facilities (b) — 2,620 — — 2,620 Total principal maturities $ 9,040 $ 2,620 $ 5,728 $ 350 $ 17,738 Total carrying amount (c) $ 9,034 $ 2,620 $ 5,474 $ 172 $ 17,300 Debt issuance costs (d) $ (16 ) $ — $ (14 ) $ — $ (30 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2015 . (b) Securitizations and borrowing under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) The net carrying amount of our long-term debt associated with certain securitizations that were either (i) issued at a premium or discount or (ii) revalued at a premium or discount based on its fair value at the time of the OneMain Acquisition or the Fortress Acquisition or (iii) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. (d) As a result of our early adoption of ASU 2015-03 in June of 2015, we report debt issuance costs as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which we continue to report in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2015 2014 Assets Cash and cash equivalents (a) $ 11 $ 52 Finance receivables: Personal loans 11,424 1,853 SpringCastle Portfolio 1,576 1,979 Allowance for finance receivable losses 431 72 Finance receivables held for sale 435 — Restricted cash and cash equivalents 663 210 Other assets (a) 48 23 Liabilities Long-term debt (b) $ 11,654 $ 3,630 Other liabilities (a) 17 8 (a) In connection with our disclosure integration with OneMain, we have expanded our presentation to include cash and cash equivalents, other assets and other liabilities associated with our securitization trusts. (b) As a result of our early adoption of ASU 2015-03 in June of 2015, we reclassified $14 million of debt issuance costs related to our long-term debt associated with our securitizations as of December 31, 2014, from other assets to long-term debt. |
Schedule of Variable Interest Entities Sale of Previously Retained Mortgage Backed Securities and Asset Backed Securities [Table Text Block] | During 2013, SFC sold the following previously retained mortgage-backed notes: (dollars in millions) Principal Amount of Previously Retained Notes Issued Carrying Amount of Additional Debt Recorded Mortgage Securitizations SLFMT 2012-2 $ 20 $ 21 SLFMT 2012-3 8 8 SLFMT 2013-2 158 149 SLFMT 2013-3 23 23 |
Derivative Financial Instrume45
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of changes in the notional amounts of cross currency interest rate swap agreements and foreign currency forward agreement | Changes in the notional amounts of our cross currency interest rate swap agreements were as follows: (dollars in millions) At or for the Year Ended December 31, 2013 Balance at beginning of period $ 417 Discontinued and terminated contracts (417 ) Balance at end of period $ — |
Schedule of derivative adjustments included in other revenues - other | Derivative adjustments included in other revenues — other consisted of the following: (dollars in millions) Year Ended December 31, 2013 Net interest income $ 9 Mark to market losses (8 ) Total $ 1 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Schedule of components of insurance claims and policyholder liabilities | Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2015 2014 Finance receivable related: Payable to OMH: Unearned premium reserves $ 574 $ 194 Claim reserves 88 23 Subtotal (a) 662 217 Payable to third-party beneficiaries: Unearned premium reserves 66 — Benefit reserves 113 107 Claim reserves 22 5 Subtotal (b) 201 112 Non-finance receivable related: Unearned premium reserves 91 — Benefit reserves 388 75 Claim reserves 67 42 Subtotal (b) 546 117 Total $ 1,409 $ 446 (a) Reported as a contra-asset to net finance receivables in connection with the OneMain policy integration. (b) Reported in insurance claims and policyholder liabilities. |
Schedule of insurance claims and policyholder liabilities assumed from other insurers | Reserves related to unearned premiums, claims and benefits included the following amounts assumed from other insurers: (dollars in millions) December 31, 2015 2014 Non-affiliated insurance companies $ 346 $ 15 AIG affiliated insurance companies* — 43 Total $ 346 $ 58 * As a result of the offering of our common stock in May of 2015, the economic interests of AIG is no longer material; therefore, the reinsurance agreements with insurers that are subsidiaries of AIG as of December 31, 2015 have not been segregated. |
Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | Changes in the reserve for unpaid claims and loss adjustment expenses, net of reinsurance recoverable: (dollars in millions) At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period $ 48 $ 46 $ 51 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition 104 — — Additions for losses and loss adjustment expenses incurred to: Current year 83 65 59 Prior years * 5 (3 ) (6 ) Total 88 62 53 Reductions for losses and loss adjustment expenses paid related to: Current year (63 ) (39 ) (35 ) Prior years (26 ) (21 ) (23 ) Total (89 ) (60 ) (58 ) Balance at end of period $ 151 $ 48 $ 46 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed and (ii) a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 and $6 million at December 31, 2013 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. |
Schedule of statutory net income for insurance companies by type of insurance | Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Property and casualty: Yosemite Insurance Company $ 15 $ 16 $ 41 Triton Insurance Company 3 — — Life and disability: Merit Life Insurance Co. $ (1 ) $ (2 ) $ 3 American Health and Life Insurance Company 11 — — |
Schedule of statutory capital and surplus for insurance companies by type of insurance | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2015 2014 Property and casualty: Yosemite Insurance Company $ 76 $ 108 Triton Insurance Company 181 — Life and disability: Merit Life Insurance Co. $ 123 $ 171 American Health and Life Insurance Company 184 — |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of components of other liabilities | Components of other liabilities were as follows: (dollars in millions) December 31, 2015 2014 Other accrued expenses and accounts payable $ 83 $ 31 Salary and benefit liabilities 75 36 Accrued interest on debt 67 57 Retirement plans 55 50 Loan principal warranty reserve 15 24 Other insurance liabilities 8 4 Bank overdrafts 14 5 Other 67 31 Total $ 384 $ 238 |
Capital Stock & Earnings (Los48
Capital Stock & Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2015 were as follows: Preferred Stock * Common Stock Par value $ 0.01 $ 0.01 Shares authorized 300,000,000 2,000,000,000 * No shares of preferred stock were issued and outstanding at December 31, 2015 or 2014 . |
Schedule of changes in common shares issued and outstanding | Changes in shares of common stock issued and outstanding were as follows: At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period 114,832,895 114,832,895 100,000,000 Common shares issued 19,661,277 — 14,832,895 Balance at end of period 134,494,172 114,832,895 114,832,895 |
Schedule of shares issued and outstanding | The computation of earnings (loss) per share was as follows: (dollars in millions except earnings (loss) per share) Years Ended December 31, 2015 2014 2013 Numerator (basic and diluted): Net income (loss) attributable to OneMain Holdings, Inc. $ (242 ) $ 505 $ (19 ) Denominator: Weighted average number of shares outstanding (basic) 127,910,680 114,791,225 102,917,172 Effect of dilutive securities * — 473,898 — Weighted average number of shares outstanding (diluted) 127,910,680 115,265,123 102,917,172 Earnings (loss) per share: Basic $ (1.89 ) $ 4.40 $ (0.19 ) Diluted $ (1.89 ) $ 4.38 $ (0.19 ) * We have excluded the following shares in the diluted earnings (loss) per share calculation for 2015 , 2014 , and 2013 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: • 2015 : 591,606 performance shares and 489,653 service shares; • 2014 : 583,459 performance shares; and • 2013 : 37,246 nonvested shares. |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive income (loss) (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) Year Ended December 31, 2014 Balance at beginning of period $ 4 $ 20 $ 4 $ 28 Other comprehensive income (loss) before reclassifications 13 (33 ) — (20 ) Reclassification adjustments from accumulated other comprehensive income (5 ) — — (5 ) Balance at end of period $ 12 $ (13 ) $ 4 $ 3 Year Ended December 31, 2013 Balance at beginning of period $ 14 $ 8 $ 5 $ 27 Other comprehensive income (loss) before reclassifications (8 ) 12 (1 ) 3 Reclassification adjustments from accumulated other comprehensive income (2 ) — — (2 ) Balance at end of period $ 4 $ 20 $ 4 $ 28 |
Schedule of reclassification adjustments from accumulated other comprehensive income (loss) | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 12 $ 8 $ 3 Income tax effect (4 ) (3 ) (1 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes $ 8 $ 5 $ 2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Components of income (loss) before provision for (benefit from) income taxes were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Income (loss) before provision for (benefit from) income taxes - U.S. operations $ (281 ) $ 903 $ 82 Income (loss) before provision for (benefit from) income taxes - foreign operations 12 2 (4 ) Total $ (269 ) $ 905 $ 78 |
Schedule of components of benefit from income taxes | Components of provision for (benefit from) income taxes were as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Current: Federal $ 59 $ 257 $ 96 Foreign 1 — 1 State 5 20 6 Total current 65 277 103 Deferred: Federal (180 ) 19 (107 ) Foreign — — 1 State (32 ) 1 (13 ) Total deferred (212 ) 20 (119 ) Total $ (147 ) $ 297 $ (16 ) |
Schedule of reconciliations of statutory federal income tax rate to effective tax rate | Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: Years Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Non-controlling interests 15.52 (3.98 ) (51.01 ) State income taxes, net of federal 6.41 1.49 (5.55 ) Foreign operations — 0.38 4.69 Interest and penalties on prior year tax returns — (0.10 ) 7.67 Nontaxable investment income 0.17 (0.10 ) (1.94 ) Change in tax status — — (14.64 ) Nondeductible compensation (2.01 ) — 3.49 Other, net (0.50 ) 0.15 1.42 Effective income tax rate 54.59 % 32.84 % (20.87 )% |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2015 2014 2013 Balance at beginning of year $ 4 $ 2 $ 2 Increases in tax positions for prior years 4 3 — Decreases in tax positions for prior years (2 ) — — Increases in tax positions for current years 10 — — Lapse in statute of limitations — (1 ) — Settlements with tax authorities (1 ) — — Balance at end of year $ 15 $ 4 $ 2 |
Schedule of components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2015 2014 Deferred tax assets: Allowance for loan losses $ 221 $ 80 State taxes, net of federal 42 22 Pension/employee benefits 37 26 Joint venture 27 12 Capital loss carryforward 27 — Net operating losses and tax attributes 16 19 Deferred insurance commissions 12 3 Acquisition costs 10 — Legal and warranty reserve 6 10 Payment protection insurance liability 2 5 Other 19 5 Total 419 182 Deferred tax liabilities: Debt writedown 121 194 Impact of tax accounting method change 76 — Discount - debt exchange 20 23 Mark-to-market 17 47 Other intangible assets 12 7 Insurance reserves 11 10 Goodwill 5 — Other — 5 Total 262 286 Net deferred tax assets (liabilities) before valuation allowance 157 (104 ) Valuation allowance (38 ) (44 ) Net deferred tax assets (liabilities) $ 119 $ (148 ) |
Lease Commitments, Rent Expen51
Lease Commitments, Rent Expense, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition | Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments First quarter 2016 $ 17 Second quarter 2016 17 Third quarter 2016 16 Fourth quarter 2016 15 2016 65 2017 48 2018 32 2019 20 2020 12 2021+ 21 Total $ 198 |
Schedule of activity in reserve for sales recourse obligations | The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and other prior sales of finance receivables was as follows: (dollars in millions) At or for the Years Ended December 31, 2015 2014 2013 Balance at beginning of period $ 24 $ 5 $ 5 Recourse losses (2 ) — — Provision for recourse obligations, net of recoveries * (7 ) 19 — Balance at end of period $ 15 $ 24 $ 5 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of funded status of the defined benefit pension plans and other postretirement benefit plans | The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. (dollars in millions) Pension (a) Postretirement (b) At or for the Years Ended December 31, 2015 2014 2013 2014 2013 Projected benefit obligation, beginning of period $ 409 $ 323 $ 368 $ 2 $ 7 Interest cost 15 15 14 — — Actuarial loss (gain) (c) (24 ) 83 (47 ) — (5 ) Benefits paid: Plan assets (12 ) (12 ) (12 ) — — Curtailment — — — (2 ) — Projected benefit obligation, end of period 388 409 323 — 2 Fair value of plan assets, beginning of period 359 317 347 — — Actual return on plan assets, net of expenses (15 ) 54 (18 ) — — Company contributions 1 — — — — Benefits paid: Plan assets (12 ) (12 ) (12 ) — — Fair value of plan assets, end of period 333 359 317 — — Funded status, end of period $ (55 ) $ (50 ) $ (6 ) $ — $ (2 ) Net amounts recognized in the consolidated balance sheet: Other assets $ — $ — $ 7 $ — $ — Other liabilities (55 ) (50 ) (13 ) — (2 ) Total amounts recognized $ (55 ) $ (50 ) $ (6 ) $ — $ (2 ) Pretax net gain (loss) recognized in accumulated other comprehensive income or loss $ 29 $ (19 ) $ 26 $ — $ 4 (a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2015 and 2014 . (b) We do not currently fund postretirement benefits. (c) We adopted new mortality tables in 2014, which increased the plan liabilities during 2014. |
Schedule of defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets | Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2015 2014 Projected benefit obligation $ 388 $ 409 Accumulated benefit obligation 388 409 Fair value of plan assets 333 359 |
Schedule of components of net periodic benefit cost | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: (dollars in millions) Pension Postretirement Years Ended December 31, 2015 2014 2013 2014 2013 Components of net periodic benefit cost: Service cost $ — $ — $ — $ — $ 1 Interest cost 15 15 14 — — Expected return on assets (19 ) (16 ) (15 ) — — Curtailment gain — — — (2 ) — Settlement gain — — — (4 ) — Net periodic benefit cost (4 ) (1 ) (1 ) (6 ) 1 Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) 9 46 (13 ) — (5 ) Net settlement gain — — — 4 — Total recognized in other comprehensive income or loss 9 46 (13 ) 4 (5 ) Total recognized in net periodic benefit cost and other comprehensive income or loss $ 5 $ 45 $ (14 ) $ (2 ) $ (4 ) |
Summary of weighted average assumptions used to determine projected benefit obligations and net periodic benefit costs | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension Postretirement December 31, 2015 2014 2015 2014 Projected benefit obligation: Discount rate 4.26 % 3.89 % 3.45 % 3.80 % Rate of compensation increase — — N/A * N/A * Net periodic benefit costs: Discount rate 3.89 % 4.83 % 3.80 % 3.80 % Expected long-term rate of return on plan assets 5.27 % 5.29 % N/A * N/A * Rate of compensation increase (average) — — N/A * N/A * * Not applicable |
Schedule of expected future benefit payments, net of participants' contributions, of defined benefit pension plans and other postretirement benefit plans | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2015 are as follows: (dollars in millions) Pension 2016 $ 15 2017 15 2018 15 2019 15 2020 16 2021-2025 89 |
Schedule of plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs utilized to determine fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2015 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 16 — 16 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 291 — 291 U.S. high yield (d) — 8 — 8 Total $ 3 $ 330 $ — $ 333 December 31, 2014 Assets: Cash and cash equivalents $ 2 $ — $ — $ 2 Equity securities: U.S. (a) — 19 — 19 International (b) — 1 — 1 Fixed income securities: U.S. investment grade (c) — 335 — 335 U.S. high yield (d) — 2 — 2 Total $ 2 $ 357 $ — $ 359 (a) Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock activity | The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2015 1,352,865 $ 17.91 Granted 1,115,662 47.44 Vested (384,902 ) 18.45 Forfeited (74,201 ) 24.65 Unvested at December 31, 2015 2,009,424 33.95 2.91 |
Summary of performance activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2015 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2015 583,459 $ 25.84 Granted 16,091 34.45 Forfeited (18,437 ) 35.05 Unvested at December 31, 2015 581,113 25.79 2.59 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to GAAP Adjustment Consolidated Total At or for the Year Ended December 31, 2015 Interest income $ 1,482 $ 470 $ 68 $ 8 $ — $ (97 ) $ 1,931 Interest expense 242 87 212 56 (5 ) 123 715 Provision for finance receivable losses 351 90 (2 ) 1 — 319 759 Net interest income (loss) after provision for finance receivable losses 889 293 (142 ) (49 ) 5 (539 ) 457 Other revenues 276 58 3 — (57 ) (19 ) 261 Acquisition-related transaction and integration expenses 16 1 1 47 — (3 ) 62 Other expenses 804 111 33 15 (52 ) 14 925 Income (loss) before provision for (benefit from) income taxes 345 239 (173 ) (111 ) — (569 ) (269 ) Income before provision for income taxes attributable to non-controlling interests — 120 — — — — 120 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 345 $ 119 $ (173 ) $ (111 ) $ — $ (569 ) $ (389 ) Assets * $ 16,050 $ 1,663 $ 711 $ 362 $ — $ 2,270 $ 21,056 * Includes $11.2 billion of OneMain assets, which are reported in Consumer and Insurance. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2014 Interest income $ 916 $ 550 $ 406 $ 17 $ — $ 93 $ 1,982 Interest expense 164 82 353 8 (5 ) 132 734 Provision for finance receivable losses 202 152 128 7 — (15 ) 474 Net interest income (loss) after provision for finance receivable losses 550 316 (75 ) 2 5 (24 ) 774 Other revenues 215 36 154 1 (71 ) 497 832 Other expenses 537 123 93 11 (66 ) 3 701 Income (loss) before provision for (benefit from) income taxes 228 229 (14 ) (8 ) — 470 905 Income before provision for income taxes attributable to non-controlling interests — 103 — — — — 103 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 228 $ 126 $ (14 ) $ (8 ) $ — $ 470 $ 802 Assets * $ 4,165 $ 2,434 $ 4,116 $ 441 $ (363 ) $ 19 $ 10,812 At or for the Year Ended December 31, 2013 Interest income $ 722 $ 489 $ 698 $ 45 $ — $ 200 $ 2,154 Interest expense 149 72 546 15 — 138 920 Provision for finance receivable losses 117 133 255 — — 22 527 Net interest income after provision for finance receivable losses 456 284 (103 ) 30 — 40 707 Other revenues 197 36 7 (2 ) (31 ) (54 ) 153 Other expenses 452 97 83 178 (31 ) 3 782 Income (loss) before provision for (benefit from) income taxes 201 223 (179 ) (150 ) — (17 ) 78 Income before provision for income taxes attributable to non-controlling interests — 113 — — — — 113 Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. $ 201 $ 110 $ (179 ) $ (150 ) $ — $ (17 ) $ (35 ) Assets * $ 3,938 $ 2,702 $ 8,623 $ 520 $ — $ (607 ) $ 15,176 * Assets reflect the following: • As a result of our early adoption of ASU 2015-03, we reclassified debt issuance costs of $29 million and $55 million as of December 31, 2014 and 2013, respectively, from other assets to long-term debt. • In connection with our policy integration with OneMain, we report unearned insurance premium and claim reserves related to finance receivables (previously reported in insurance claims and policyholder liabilities) as a contra-asset to net finance receivables, which totaled $217 million and $172 million at December 31, 2014 and 2013, respectively. • See Note 3 for further information on the correction of the total asset segment disclosure error. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2015 Assets Cash and cash equivalents $ 939 $ — $ — $ 939 $ 939 Investment securities 36 1,829 2 1,867 1,867 Net finance receivables, less allowance for finance receivable losses — — 15,943 15,943 14,803 Finance receivables held for sale — — 819 819 796 Restricted cash and cash equivalents 676 — — 676 676 Other assets: Commercial mortgage loans — — 62 62 62 Escrow advance receivable — — 11 11 11 Receivables related to sales of real estate loans and related trust assets — 1 — 1 5 Liabilities Long-term debt $ — $ 17,616 $ — $ 17,616 $ 17,300 December 31, 2014 Assets Cash and cash equivalents $ 714 $ 165 $ — $ 879 $ 879 Investment securities — 2,926 9 2,935 2,935 Net finance receivables, less allowance for finance receivable losses — — 6,979 6,979 6,307 Finance receivables held for sale — — 209 209 205 Restricted cash and cash equivalents 218 — — 218 218 Other assets: Commercial mortgage loans — — 78 78 85 Escrow advance receivable — — 8 8 8 Receivables related to sales of real estate loans and related trust assets — 67 — 67 79 Liabilities Long-term debt $ — $ 9,182 $ — $ 9,182 $ 8,356 |
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2015 Assets Cash equivalents in mutual funds $ 240 $ — $ — $ 240 Investment securities: Available-for-sale securities: Bonds: U.S. government and government sponsored entities — 111 — 111 Obligations of states, municipalities, and political subdivisions — 140 — 140 Non-U.S. government and government sponsored entities — 126 — 126 Corporate debt — 999 — 999 RMBS — 128 — 128 CMBS — 116 — 116 CDO/ABS — 71 — 71 Total bonds — 1,691 — 1,691 Preferred stock 6 7 — 13 Common stock 23 — — 23 Other long-term investments — — 2 2 Total available-for-sale securities (a) 29 1,698 2 1,729 Trading and other securities: Bonds: Non-U.S. government and government sponsored entities — 3 — 3 Corporate debt — 124 — 124 RMBS — 2 — 2 CMBS — 2 — 2 Total bonds — 131 — 131 Preferred stock 6 — — 6 Total trading and other securities (b) 6 131 — 137 Total investment securities 35 1,829 2 1,866 Restricted cash in mutual funds 277 — — 277 Total $ 552 $ 1,829 $ 2 $ 2,383 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 , which is carried at cost. (b) The fair value of other securities totaled $128 million at December 31, 2015 . Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2014 Assets Cash equivalents in mutual funds $ 236 $ — $ — $ 236 Cash equivalents in certificates of deposit and commercial paper — 165 — 165 Investment securities: Available-for-sale securities: Bonds: U.S. government and government sponsored entities — 64 — 64 Obligations of states, municipalities, and political subdivisions — 102 — 102 Certificates of deposit and commercial paper — 3 — 3 Corporate debt — 263 4 267 RMBS — 73 — 73 CMBS — 21 3 24 CDO/ABS — 63 — 63 Total bonds — 589 7 596 Preferred stock — 7 — 7 Other long-term investments — — 1 1 Total available-for-sale securities (a) — 596 8 604 Trading and other securities: Bonds: U.S. government and government sponsored entities — 303 — 303 Obligations of states, municipalities, and political subdivisions — 14 — 14 Certificates of deposit and commercial paper — 238 — 238 Non-U.S. government and government sponsored entities — 20 — 20 Corporate debt — 1,056 — 1,056 RMBS — 36 — 36 CMBS — 151 — 151 CDO/ABS — 512 — 512 Total trading and other securities (b) — 2,330 — 2,330 Total investment securities — 2,926 8 2,934 Restricted cash in mutual funds 207 — — 207 Total $ 443 $ 3,091 $ 8 $ 3,542 (a) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2014 , which is carried at cost. (b) The fair value of other securities totaled $5 million at December 31, 2014 . |
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following table presents changes during 2015 in Level 3 assets measured at fair value on a recurring basis: Net gains (losses) included in: Purchases, sales, issues, settlements (a) Transfers into Level 3 Transfers out of Level 3 (b) Balance at end of period (dollars in millions) Balance at beginning of period Other revenues Other comprehensive income (loss) Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ 4 $ — $ — $ (4 ) $ — $ — $ — CMBS 3 — — — — (3 ) — Total bonds 7 — — (4 ) — (3 ) — Other long-term investments 1 — — 1 — — 2 Total $ 8 $ — $ — $ (3 ) $ — $ (3 ) $ 2 (a) The detail of purchases and settlements is presented in the table below: (dollars in millions) Purchases Settlements Total Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ — $ (4 ) $ (4 ) Other long-term investments 1 — 1 Total $ 1 $ (4 ) $ (3 ) (b) During 2015 , we transferred $3 million of CMBS out of Level 3 primarily related to the greater observability of pricing inputs. |
Schedule of Purchases and Settlements in Level 3 on Recurring basis, current year [Table Text Block] | The detail of purchases and settlements is presented in the table below: (dollars in millions) Purchases Settlements Total Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ — $ (4 ) $ (4 ) Other long-term investments 1 — 1 Total $ 1 $ (4 ) $ (3 ) |
Schedule of Purchases and Settlements in Level 3 on Recurring basis, prior year [Table Text Block] | The following table presents changes during 2014 in Level 3 assets measured at fair value on a recurring basis: Net gains (losses) included in: Purchases, sales, issues, settlements (a) Transfers into Level 3 (b) Transfers out of Level 3 (c) Balance at end of period (dollars in millions) Balance at beginning of period Other revenues Other comprehensive income (loss) Year Ended Investment securities: Available-for-sale securities: Bonds: Corporate debt $ 13 $ — $ — $ (9 ) $ — $ — $ 4 CMBS — — — — 3 — 3 CDO/ABS 1 — — — — (1 ) — Total bonds 14 — — (9 ) 3 (1 ) 7 Other long-term investments 1 — — — — — 1 Total available-for-sale securities 15 — — (9 ) 3 (1 ) 8 Trading and other securities: Bonds: RMBS — — — — 1 (1 ) — CDO/ABS 7 — — (6 ) — (1 ) — Total trading and other securities 7 — — (6 ) 1 (2 ) — Total $ 22 $ — $ — $ (15 ) $ 4 $ (3 ) $ 8 (a) “Purchases, sales, issues, and settlements” column consisted only of settlements, as the purchases were less than $1 million . (b) During 2014 , we transferred $3 million of CMBS available-for-sale securities and $1 million of RMBS other securities into Level 3 primarily related to the reduced observability of pricing inputs. (c) During 2014 , we transferred $1 million of CDO/ABS available-for-sale securities, $1 million of RMBS other securities, and $1 million of CDO/ABS trading and other securities out of Level 3 primarily related to the greater observability of pricing inputs. |
Quantitative information about Level 3 inputs for assets measured on a recurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2015 and 2014 is as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2015 December 31, 2014 Corporate debt Discounted cash flows Yield — 1.05% (a) RMBS Discounted cash flows Spread 665 bps (a) 736 bps (a) (b) CMBS Discounted cash flows Spread — 139 bps (a) (b) Other long-term investments Discounted cash flows and indicative valuations Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity N/A (c) N/A (c) (a) At December 31, 2015 and 2014 , RMBS consisted of one bond, which was less than $1 million . At December 31, 2014 , corporate debt and CMBS also consisted of one bond. (b) During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above. (c) Not applicable. |
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2015 Assets Real estate owned $ — $ — $ 11 $ 11 $ 3 Commercial mortgage loans — — 8 8 (2 ) Total $ — $ — $ 19 $ 19 $ 1 At or for the Year Ended December 31, 2014 Assets Real estate owned $ — $ — $ 19 $ 19 $ 16 Commercial mortgage loans — — 11 11 (2 ) Total $ — $ — $ 30 $ 30 $ 14 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. |
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2015 and 2014 is as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2015 December 31, 2014 Real estate owned Market approach Third-party valuation N/A * N/A * Commercial mortgage loans Market approach Local market conditions Nature of investment Comparable property sales Operating performance N/A * N/A * * Not applicable. |
Selected Quarterly Financial 56
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | Our selected quarterly financial data for 2015 was as follows: (dollars in millions except earnings (loss) per share) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 684 $ 428 $ 413 $ 406 Interest expense 215 171 171 158 Provision for finance receivable losses 510 82 80 87 Other revenues 103 51 56 51 Other expenses 402 204 207 174 Income (loss) before provision for (benefit from) income taxes (340 ) 22 11 38 Provision for (benefit from) income taxes (148 ) 2 (8 ) 7 Net income (loss) (192 ) 20 19 31 Net income attributable to non-controlling interests 27 31 31 31 Net loss attributable to OneMain Holdings, Inc. $ (219 ) $ (11 ) $ (12 ) $ — Earnings (loss) per share: Basic $ (1.63 ) $ (0.08 ) $ (0.09 ) $ — Diluted (1.63 ) (0.08 ) (0.09 ) — Our selected quarterly financial data for 2014 was as follows: (dollars in millions except earnings (loss) per share) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 413 $ 484 $ 533 $ 552 Interest expense 157 180 192 205 Provision for finance receivable losses 95 103 115 161 Other revenues (27 ) 686 92 81 Other expenses 172 190 171 168 Income (loss) before provision for (benefit from) income taxes (38 ) 697 147 99 Provision for (benefit from) income taxes (13 ) 235 44 31 Net income (loss) (25 ) 462 103 68 Net income attributable to non-controlling interests 21 35 31 16 Net income (loss) attributable to OneMain Holdings, Inc. $ (46 ) $ 427 $ 72 $ 52 Earnings (loss) per share: Basic $ (0.41 ) $ 3.72 $ 0.63 $ 0.46 Diluted (0.41 ) 3.70 0.63 0.45 |
Nature of Operations (Details)
Nature of Operations (Details) account in Millions, $ in Millions | Nov. 15, 2015USD ($)statebranch | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($)employeeaccountstatebranch | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Related Party Transaction [Line Items] | |||||
Cash consideration | $ 3,902 | $ 0 | $ 0 | ||
Net Finance Receivables | $ 15,390 | $ 6,483 | |||
Number of states in which branch operations are conducted | state | 43 | ||||
Springleaf Financial Holdings, LLC | |||||
Related Party Transaction [Line Items] | |||||
Percent of common stock held by related party | 58.00% | ||||
Minimum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Number of customer accounts from which net finance receivables are due | account | 2.5 | ||||
Number of branch offices, over | branch | 1,900 | ||||
Number of employees | employee | 11,400 | ||||
OneMain | |||||
Related Party Transaction [Line Items] | |||||
Cash consideration | $ 4,500 | $ 4,478 | |||
Number of branch offices, over | branch | 1,100 | ||||
Number of states in which branch operations are conducted | state | 43 |
OneMain Acquisition - Narrative
OneMain Acquisition - Narrative (Details) | Feb. 24, 2016USD ($) | Nov. 15, 2015USD ($)statebranch | Nov. 13, 2015statebranch | Nov. 12, 2015USD ($) | Oct. 31, 2015USD ($) | Dec. 31, 2015USD ($)state | Dec. 31, 2015USD ($)state | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 3,902,000,000 | $ 0 | $ 0 | |||||||
Number of states in which branch operations are conducted | state | 43 | 43 | ||||||||
Goodwill | $ 1,440,000,000 | $ 1,440,000,000 | 0 | |||||||
Consumer and Insurance Segment | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 1,440,000,000 | $ 1,440,000,000 | $ 0 | |||||||
Subsidiaries | Independence Holding, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Capital contributions in subsidiaries | $ 1,100,000,000 | |||||||||
Subsidiaries | Independence Holding, Inc. | Springfield Financial Cash Services, Inc | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Capital contributions in subsidiaries | $ 3,400,000,000 | |||||||||
Sale of Branches to Lendmark | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration, percent of aggregate unpaid loan balance | 103.00% | |||||||||
Number of days to close transaction | 120 days | |||||||||
Sale of Branches to Lendmark | Number of Branches | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percent | 6.00% | |||||||||
Sale of Branches to Lendmark | Loans and Leases Receivable, Gross, Consumer, Installment and Revolving | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percent | 4.00% | |||||||||
Sale of Branches to Lendmark | Personal Loans | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consumer loans held for sale | 617,000,000 | $ 617,000,000 | $ 608,000,000 | |||||||
Sale of Branches to Lendmark | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price threshold which would result in certain limitations on sale | $ 695,000,000 | |||||||||
OneMain | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 4,500,000,000 | $ 4,478,000,000 | ||||||||
Number of branch offices, over | branch | 1,100 | |||||||||
Number of states in which branch operations are conducted | state | 43 | |||||||||
Number of branches divested | branch | 127 | 127 | ||||||||
Business Combination, Branches To Be Divested, Number of States | state | 11 | |||||||||
Acquisition related costs | $ 62,000,000 | |||||||||
Goodwill | $ 1,440,000,000 | |||||||||
OneMain | Consumer and Insurance Segment | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 1,400,000,000 | |||||||||
OneMain | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill purchase accounting adjustment | $ 23,000,000 |
OneMain Acquisition - Purchase
OneMain Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions | Nov. 15, 2015 | Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 3,902 | $ 0 | $ 0 | ||
Fair value of liabilities assumed: | |||||
Goodwill | $ 1,440 | $ 0 | |||
OneMain | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 4,500 | $ 4,478 | |||
Fair value of assets acquired: | |||||
Cash and cash equivalents (a) | 958 | ||||
Investment securities | 1,294 | ||||
Personal loans | 8,801 | ||||
Intangibles (b) | 555 | ||||
Other assets | 247 | ||||
Fair value of liabilities assumed: | |||||
Long-term debt | (7,725) | ||||
Unearned premium, insurance policy and claims reserves | (936) | ||||
Other liabilities | (156) | ||||
Goodwill | 1,440 | ||||
Unearned premiums and claims reserves | $ 409 |
OneMain Acquisition - Intangibl
OneMain Acquisition - Intangible Assets Acquired (Details) - OneMain $ in Millions | Oct. 31, 2015USD ($) |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 555 |
Customer relationships | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 205 |
Finite-lived intangible assets acquired, estimated useful life | 6 years |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 105 |
Trade names | |
Business Acquisition [Line Items] | |
Indefinite-lived intangible assets acquired | 220 |
Licenses | |
Business Acquisition [Line Items] | |
Indefinite-lived intangible assets acquired | $ 25 |
Minimum [Member] | Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, estimated useful life | 5 years |
Maximum | Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired, estimated useful life | 30 years |
OneMain Acquisition - Interest
OneMain Acquisition - Interest Income and Net Loss Subsequent to Acquisition (Details) - OneMain $ in Millions | 2 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |
Interest income subsequent to acquisition | $ 246 |
Net loss subsequent to acquisition | $ (187) |
OneMain Acquisition - Pro Forma
OneMain Acquisition - Pro Forma Information (Details) - OneMain - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unaudited pro forma financial information | ||
Interest income | $ 3,216 | $ 3,104 |
Net income (loss) attributable to OneMain Holdings, Inc. | $ (203) | $ 57 |
Summary of Significant Accoun63
Summary of Significant Accounting Policies Basis of Presentation (Details) | Dec. 31, 2015 | Oct. 03, 2014 |
Corporate Joint Venture | ||
Related Party Transaction [Line Items] | ||
Ownership percentage | 47.00% | 47.00% |
Summary of Significant Accoun64
Summary of Significant Accounting Policies Business Segments (Details) | 12 Months Ended |
Dec. 31, 2015statesegment | |
Accounting Policies [Abstract] | |
Number of business segments | segment | 3 |
Number of states with legacy operation where branch based personal lending ceased | state | 14 |
Summary of Significant Accoun65
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015defermentpayment | Oct. 03, 2014 | |
Purchased Credit Impaired Finance Receivables | ||
Financing Receivable Credit Impairment Minimum Past Due Period | 60 days | |
Allowance for Finance Receivable Losses | ||
Period in which Most Repurchase Requests for Financial Receivable Sold Occur | 5 years | |
Corporate Joint Venture | ||
Finance Receivable Revenue Recognition | ||
Ownership percentage | 47.00% | 47.00% |
Personal Loans | ||
Finance Receivable Revenue Recognition | ||
Finance Receivable Revenue Recognition Installment of Contractual Payment Past Due after which Finance Charges Accruing Stopped | 4 | |
Allowance for Finance Receivable Losses | ||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | |
Financing Receivable Number of Deferments in Rolling Period | 2 | |
Retail Sales Finance Revolving Retail [Member] | ||
Finance Receivable Revenue Recognition | ||
Finance Receivable Revenue Recognition Installment of Contractual Payment Past Due after which Finance Charges Accruing Stopped | 6 | |
Real Estate Loans Branch | Maximum | ||
Finance Receivable Revenue Recognition | ||
Finance Receivable Revenue Recognition Installment of Contractual Payment Past Due after which Finance Charges Accruing Stopped | 4 | |
Real Estate Loans Branch | Minimum [Member] | ||
Finance Receivable Revenue Recognition | ||
Finance Receivable Revenue Recognition Installment of Contractual Payment Past Due after which Finance Charges Accruing Stopped | 3 | |
Retail Sales Finance | ||
Allowance for Finance Receivable Losses | ||
Financing Receivable Number of Deferments in Rolling Period | deferment | 2 | |
Financing Receivable Rolling Period | 12 months | |
Real Estate Loans Central | ||
Allowance for Finance Receivable Losses | ||
Financing Receivable Number of Deferments in Rolling Period | deferment | 1 |
Summary of Significant Accoun66
Summary of Significant Accounting Policies Prior Period Revisions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | $ 510 | $ 82 | $ 80 | $ 87 | $ 95 | $ 103 | $ 115 | $ 161 | $ 759 | $ 474 | $ 527 | |
Provision for (benefit from) income taxes | (148) | $ 2 | $ (8) | $ 7 | (13) | $ 235 | $ 44 | $ 31 | (147) | 297 | (16) | |
Assets | $ 21,056 | 10,812 | $ 21,056 | 10,812 | $ 15,176 | |||||||
Cash and cash equivalents | $ 165 | $ 165 | ||||||||||
Decrease in earnings per share, basic (in dollars per share) | $ 1.63 | $ 0.08 | $ 0.09 | $ 0 | $ 0.41 | $ (3.72) | $ (0.63) | $ (0.46) | $ 1.89 | $ (4.40) | $ 0.19 | |
Decrease in earnings per share, diluted (in dollars per share) | $ 1.63 | $ 0.08 | 0.09 | $ 0 | $ 0.41 | $ (3.70) | $ (0.63) | $ (0.45) | $ 1.89 | $ (4.38) | $ 0.19 | |
Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Decrease in earnings per share, basic (in dollars per share) | 0.03 | $ 0.03 | ||||||||||
Decrease in earnings per share, diluted (in dollars per share) | $ 0.03 | $ 0.03 | ||||||||||
Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | $ 8 | |||||||||||
Provision for (benefit from) income taxes | $ (3) | |||||||||||
Real Estate Loans | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | $ 14 | $ 114 | $ 265 | |||||||||
Operating segments | Consumer | Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Assets | $ 5,117 | $ 4,411 | $ 4,633 | $ 4,397 | 4,411 | 4,139 | ||||||
Operating segments | Real Estate Loans | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | (2) | 128 | 255 | |||||||||
Assets | $ 711 | 4,116 | 711 | 4,116 | 8,623 | |||||||
Operating segments | Real Estate Loans | Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Assets | 3,613 | 4,116 | 3,745 | 6,688 | 4,116 | 8,650 | ||||||
Other | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | 1 | 7 | 0 | |||||||||
Assets | $ 362 | 441 | $ 362 | 441 | 520 | |||||||
Other | Adjustments | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Assets | $ 1,690 | $ 441 | $ 615 | $ 963 | $ 441 | $ 520 |
Recent Accounting Pronounceme67
Recent Accounting Pronouncements Debt Issuance Costs (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance cost | $ 30 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt issuance cost | $ 32 | $ 29 |
Finance Receivables (Details)
Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | $ 15,390 | $ 6,483 |
First Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate loans as a percent of finance receivables outstanding | 39.00% | 36.00% |
Second Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Real estate loans as a percent of finance receivables outstanding | 61.00% | 64.00% |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | $ 13,267 | $ 3,831 |
Personal Loans | Titled personal property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of receivable secured by personal property | $ 2,800 | $ 1,900 |
Financing receivables secured by real property, as percent of finance receivables | 21.00% | 49.00% |
Personal Loans | Consumer household goods or other items of personal property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of receivable secured by personal property | $ 10,500 | $ 1,900 |
Financing receivables secured by real property, as percent of finance receivables | 79.00% | 51.00% |
Personal Loans | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 3 years | |
Personal Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 6 years | |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | $ 524 | $ 625 |
Real Estate Loans | First Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | 202 | 227 |
Real Estate Loans | Second Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | $ 322 | 398 |
Real Estate Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 360 months | |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Finance Receivables | $ 23 | $ 48 |
Retail Sales Finance | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 60 months |
Finance Receivables - Component
Finance Receivables - Components of Net Finance Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 17,415 | $ 7,107 |
Unearned finance charges and points and fees | (2,263) | (771) |
Accrued finance charges | 182 | 102 |
Deferred origination costs | 56 | 45 |
Net finance receivables | 15,390 | 6,483 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 15,325 | 4,493 |
Unearned finance charges and points and fees | (2,261) | (765) |
Accrued finance charges | 147 | 58 |
Deferred origination costs | 56 | 45 |
Net finance receivables | 13,267 | 3,831 |
Personal Loans | Consumer Loan Securitizations | Consolidated VIEs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net finance receivables | 11,400 | 1,900 |
SpringCastle Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 1,545 | 1,941 |
Unearned finance charges and points and fees | 0 | 0 |
Accrued finance charges | 31 | 38 |
Deferred origination costs | 0 | 0 |
Net finance receivables | 1,576 | 1,979 |
SpringCastle Portfolio | Consolidated VIEs | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net finance receivables | 1,600 | 2,000 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 520 | 621 |
Unearned finance charges and points and fees | (1) | |
Accrued finance charges | 4 | 5 |
Net finance receivables | 524 | 625 |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 25 | 52 |
Unearned finance charges and points and fees | (2) | (5) |
Accrued finance charges | 1 | |
Deferred origination costs | 0 | 0 |
Net finance receivables | $ 23 | $ 48 |
Finance Receivables - Unused Li
Finance Receivables - Unused Lines of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused lines of credit extended to customers | $ 397 | $ 386 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused lines of credit extended to customers | 2 | 1 |
SpringCastle Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused lines of credit extended to customers | 365 | 354 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused lines of credit extended to customers | $ 30 | $ 31 |
Finance Receivables - Geographi
Finance Receivables - Geographical Diversification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 15,390 | $ 6,483 |
Finance receivable | Geographic concentration | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 15,390 | $ 6,483 |
Percent | 100.00% | 100.00% |
Finance receivable | Geographic concentration | North Carolina | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 1,356 | $ 634 |
Percent | 9.00% | 10.00% |
Finance receivable | Geographic concentration | Texas | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 1,198 | $ 237 |
Percent | 8.00% | 4.00% |
Finance receivable | Geographic concentration | Pennsylvania | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 950 | $ 388 |
Percent | 6.00% | 6.00% |
Finance receivable | Geographic concentration | California | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 928 | $ 533 |
Percent | 6.00% | 8.00% |
Finance receivable | Geographic concentration | Ohio | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 769 | $ 388 |
Percent | 5.00% | 6.00% |
Finance receivable | Geographic concentration | Virginia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 707 | $ 349 |
Percent | 5.00% | 5.00% |
Finance receivable | Geographic concentration | Illinois | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 663 | $ 412 |
Percent | 4.00% | 6.00% |
Finance receivable | Geographic concentration | Georgia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 654 | $ 283 |
Percent | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Other | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net Finance Receivables | $ 8,165 | $ 3,259 |
Percent | 53.00% | 51.00% |
Finance Receivables - Credit Qu
Finance Receivables - Credit Quality Indicators (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2013 | Dec. 31, 2015 | |
Unlikely to be Collected Financing Receivable | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 60 days | |
Revolving Retail | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 180 days | |
Personal Loans | ||
CREDIT QUALITY INDICATORS | ||
Accrual of finance charges, past due period | 180 days | 90 days |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type and by Days Delinquent (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Net finance receivables: | ||
Finance receivables | $ 15,390 | $ 6,483 |
Total delinquent finance receivables | 421 | 240 |
60-89 days past due | ||
Net finance receivables: | ||
Finance receivables | 164 | 81 |
90-119 days past due | ||
Net finance receivables: | ||
Finance receivables | 110 | 58 |
120-149 days past due | ||
Net finance receivables: | ||
Finance receivables | 68 | 46 |
150-179 days past due | ||
Net finance receivables: | ||
Finance receivables | 62 | 39 |
180 days or more past due | ||
Net finance receivables: | ||
Finance receivables | 17 | 16 |
Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Net finance receivables: | ||
Current | 14,747 | 6,110 |
30-59 days past due | ||
Net finance receivables: | ||
Finance receivables | 222 | 133 |
Personal Loans | ||
Net finance receivables: | ||
Finance receivables | 13,267 | 3,831 |
Total delinquent finance receivables | 325 | 114 |
Personal Loans | 60-89 days past due | ||
Net finance receivables: | ||
Finance receivables | 124 | 37 |
Personal Loans | 90-119 days past due | ||
Net finance receivables: | ||
Finance receivables | 93 | 30 |
Personal Loans | 120-149 days past due | ||
Net finance receivables: | ||
Finance receivables | 54 | 24 |
Personal Loans | 150-179 days past due | ||
Net finance receivables: | ||
Finance receivables | 50 | 21 |
Personal Loans | 180 days or more past due | ||
Net finance receivables: | ||
Finance receivables | 4 | 2 |
Personal Loans | Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Net finance receivables: | ||
Current | 12,776 | 3,661 |
Personal Loans | 30-59 days past due | ||
Net finance receivables: | ||
Finance receivables | 166 | 56 |
SpringCastle Portfolio | ||
Net finance receivables: | ||
Finance receivables | 1,576 | 1,979 |
Total delinquent finance receivables | 58 | 82 |
SpringCastle Portfolio | 60-89 days past due | ||
Net finance receivables: | ||
Finance receivables | 22 | 31 |
SpringCastle Portfolio | 90-119 days past due | ||
Net finance receivables: | ||
Finance receivables | 14 | 19 |
SpringCastle Portfolio | 120-149 days past due | ||
Net finance receivables: | ||
Finance receivables | 11 | 16 |
SpringCastle Portfolio | 150-179 days past due | ||
Net finance receivables: | ||
Finance receivables | 10 | 14 |
SpringCastle Portfolio | 180 days or more past due | ||
Net finance receivables: | ||
Finance receivables | 1 | 2 |
SpringCastle Portfolio | Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Net finance receivables: | ||
Current | 1,475 | 1,839 |
SpringCastle Portfolio | 30-59 days past due | ||
Net finance receivables: | ||
Finance receivables | 43 | 58 |
Real Estate Loans | ||
Net finance receivables: | ||
Finance receivables | 524 | 625 |
Total delinquent finance receivables | 37 | 42 |
Real Estate Loans | 60-89 days past due | ||
Net finance receivables: | ||
Finance receivables | 18 | 12 |
Real Estate Loans | 90-119 days past due | ||
Net finance receivables: | ||
Finance receivables | 3 | 9 |
Real Estate Loans | 120-149 days past due | ||
Net finance receivables: | ||
Finance receivables | 2 | 5 |
Real Estate Loans | 150-179 days past due | ||
Net finance receivables: | ||
Finance receivables | 2 | 4 |
Real Estate Loans | 180 days or more past due | ||
Net finance receivables: | ||
Finance receivables | 12 | 12 |
Real Estate Loans | Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Net finance receivables: | ||
Current | 474 | 565 |
Real Estate Loans | 30-59 days past due | ||
Net finance receivables: | ||
Finance receivables | 13 | 18 |
Retail Sales Finance | ||
Net finance receivables: | ||
Finance receivables | 23 | 48 |
Total delinquent finance receivables | 1 | 2 |
Retail Sales Finance | 60-89 days past due | ||
Net finance receivables: | ||
Finance receivables | 0 | 1 |
Retail Sales Finance | 90-119 days past due | ||
Net finance receivables: | ||
Finance receivables | 0 | 0 |
Retail Sales Finance | 120-149 days past due | ||
Net finance receivables: | ||
Finance receivables | 1 | 1 |
Retail Sales Finance | 150-179 days past due | ||
Net finance receivables: | ||
Finance receivables | 0 | 0 |
Retail Sales Finance | 180 days or more past due | ||
Net finance receivables: | ||
Finance receivables | 0 | 0 |
Retail Sales Finance | Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Net finance receivables: | ||
Current | 22 | 45 |
Retail Sales Finance | 30-59 days past due | ||
Net finance receivables: | ||
Finance receivables | $ 0 | $ 1 |
Finance Receivables - Performin
Finance Receivables - Performing and Nonperforming Net Finance Receivables by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | $ 15,390 | $ 6,483 | |
Personal Loans | |||
Performing and nonperforming net finance receivables by type | |||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | 90 days | |
Net Finance Receivables | $ 13,267 | 3,831 | |
SpringCastle Portfolio | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 1,576 | 1,979 | |
Real Estate Loans | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 524 | 625 | |
Retail Sales Finance | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 23 | 48 | |
Performing | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 15,133 | 6,324 | |
Performing | Personal Loans | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 13,066 | 3,754 | |
Performing | SpringCastle Portfolio | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 1,540 | 1,928 | |
Performing | Real Estate Loans | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 505 | 595 | |
Performing | Retail Sales Finance | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 22 | 47 | |
Nonperforming | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 257 | 159 | |
Nonperforming | Personal Loans | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 201 | 77 | |
Nonperforming | SpringCastle Portfolio | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 36 | 51 | |
Nonperforming | Real Estate Loans | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | 19 | 30 | |
Nonperforming | Retail Sales Finance | |||
Performing and nonperforming net finance receivables by type | |||
Net Finance Receivables | $ 1 | $ 1 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Nov. 01, 2015 | Dec. 31, 2014 | Oct. 03, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | $ 1,529 | $ 1,800 | $ 779 | |
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | 796 | 205 | ||
Carrying amount, net of allowance | 923 | 433 | ||
Allowance for purchased credit impaired finance receivable losses | $ 7 | 5 | ||
Corporate Joint Venture | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Ownership percentage | 47.00% | 47.00% | ||
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Fair value of credit impaired loans acquired | 734 | |||
Purchased credit impaired finance receivables, allowance for credit losses | $ 899 | |||
OM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | $ 911 | 0 | ||
Carrying amount, net of allowance | 624 | 0 | ||
Allowance for purchased credit impaired finance receivable losses | 0 | 0 | ||
SpringCastle Portfolio | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 482 | 628 | ||
Carrying amount, net of allowance | 223 | 340 | ||
Allowance for purchased credit impaired finance receivable losses | 0 | 0 | ||
FA Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Outstanding balance | 136 | 151 | ||
Carrying amount, net of allowance | 76 | 93 | ||
Allowance for purchased credit impaired finance receivable losses | 7 | 5 | ||
FA Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchased credit impaired finance receivables held for sale, carrying amount | 55 | 68 | ||
Purchased credit impaired finance receivables held for sale, outstanding balance | $ 89 | $ 99 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield for Purchased Credit Impaired Finance Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | $ 560 | $ 1,097 | $ 629 |
Accretion | (107) | (161) | (206) |
Reclassifications from nonaccretable difference | 31 | 331 | 305 |
Transfers due to finance receivables sold | (656) | ||
Disposals of finance receivables | (46) | (51) | (69) |
Balance at end of period | 604 | 560 | 1,097 |
OneMain Financial Holdings, Inc. | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 166 | ||
SCH | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 438 | ||
OM Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 0 | 0 | 0 |
Accretion | (14) | 0 | 0 |
Reclassifications from nonaccretable difference | 0 | 0 | 0 |
Transfers due to finance receivables sold | 0 | ||
Disposals of finance receivables | (9) | 0 | 0 |
Balance at end of period | 143 | 0 | 0 |
OM Loans | OneMain Financial Holdings, Inc. | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 166 | ||
OM Loans | SCH | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 0 | ||
SCP Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 541 | 325 | 0 |
Accretion | (83) | (80) | (77) |
Reclassifications from nonaccretable difference | 0 | 331 | 0 |
Transfers due to finance receivables sold | 0 | ||
Disposals of finance receivables | (36) | (35) | (36) |
Balance at end of period | 422 | 541 | 325 |
SCP Loans | OneMain Financial Holdings, Inc. | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 0 | ||
SCP Loans | SCH | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | 438 | ||
FA Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 19 | 772 | 629 |
Accretion | (10) | (81) | (129) |
Reclassifications from nonaccretable difference | 31 | 0 | 305 |
Transfers due to finance receivables sold | (656) | ||
Disposals of finance receivables | (1) | (16) | (33) |
Balance at end of period | 39 | 19 | 772 |
Accretion on purchased credit impaired finance receivables held for sale | 6 | $ 14 | |
FA Loans | OneMain Financial Holdings, Inc. | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | $ 0 | ||
FA Loans | SCH | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Additions | $ 0 |
Finance Receivables - Trouble D
Finance Receivables - Trouble Debt Restructured Finance Receivables (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Modifications [Line Items] | ||
Allowance for TDR finance receivable losses | $ 55,000,000 | $ 36,000,000 |
Amount of commitments to lend additional funds on TDR finance receivables | 0 | |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Allowance for TDR finance receivable losses | 17,000,000 | 1,000,000 |
SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
Allowance for TDR finance receivable losses | 4,000,000 | 3,000,000 |
Real Estate Loans | ||
Financing Receivable, Modifications [Line Items] | ||
Allowance for TDR finance receivable losses | 34,000,000 | 32,000,000 |
Real Estate Loan | Real Estate Loans Held for Sale | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 92,000,000 | 91,000,000 |
TDR net finance receivables | 92,000,000 | 91,000,000 |
Personal Loans | Consumer Loan Held for sale [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 2,000,000 | 0 |
TDR net finance receivables | 2,000,000 | 0 |
Financing Receivable | Finance Receivables Loans Held for Sale | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 94,000,000 | 91,000,000 |
TDR net finance receivables | $ 94,000,000 | $ 91,000,000 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables Held for Investment and Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | $ 245 | $ 979 | $ 1,135 |
TDR finance charges recognized | 15 | 51 | 64 |
Individually evaluated for impairment (TDR finance receivables) | 55 | 36 | |
Personal Loans Held for Sale | Consumer | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 2 | 0 | |
TDR finance charges recognized | 0 | 0 | |
Personal Loans Held for Sale | Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 2 | 0 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 2 | 0 | |
Real Estate Loans Held for Sale | Real Estate Loan | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 92 | 91 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 92 | 91 | |
Real Estate Loans Held for Sale | Real Estate Loans | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 91 | 250 | |
TDR finance charges recognized | 5 | 5 | |
Finance Receivables Loans Held for Sale | Financing Receivable | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 94 | 91 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 93 | 250 | |
TDR finance charges recognized | 5 | 5 | |
TDR net finance receivables | 94 | 91 | |
consumer loan held for investment [Member] | Personal Loans Held for Sale | Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 46 | 22 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 46 | 22 | |
Individually evaluated for impairment (TDR finance receivables) | 17 | 1 | |
Personal Loans | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 35 | 17 | 15 |
TDR finance charges recognized | 3 | 2 | 1 |
Individually evaluated for impairment (TDR finance receivables) | 17 | 1 | |
SpringCastle Portfolio | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 12 | 5 | 0 |
TDR finance charges recognized | 1 | 1 | 0 |
Individually evaluated for impairment (TDR finance receivables) | 4 | 3 | |
SpringCastle Portfolio | Spring Castle Portfolio Held for Investment | SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 14 | 11 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 13 | 10 | |
Individually evaluated for impairment (TDR finance receivables) | 4 | 3 | |
Real Estate Loans Held for Investment | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 198 | 957 | 1,120 |
TDR finance charges recognized | 11 | 48 | $ 63 |
Real Estate Loans Held for Investment | Real Estate Loans Held for Sale | Real Estate Loan | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 200 | 196 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 201 | 196 | |
Individually evaluated for impairment (TDR finance receivables) | 34 | 32 | |
Finance Receivables Held for Investment | Finance Receivables Loans Held for Sale | Financing Receivable | |||
Financing Receivable, Modifications [Line Items] | |||
TDR gross finance receivables | 260 | 229 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR net finance receivables | 260 | 228 | |
Individually evaluated for impairment (TDR finance receivables) | $ 55 | $ 36 |
Finance Receivables - New Volum
Finance Receivables - New Volume of the TDR Finance Receivables Held for Investment and Sale (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)account | Dec. 31, 2014USD ($)account | Dec. 31, 2013USD ($)account | |
Personal Loans | Personal Loans Held for Sale | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 1 | $ 0 | |
Post-modification TDR net finance receivables | $ 1 | $ 0 | |
Number of TDR accounts | account | 162 | 0 | |
SpringCastle Portfolio | Spring Castle Portfolio Held for Investment | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 7 | $ 10 | $ 0 |
Financing receivable, post-modification rate reduction | 6 | 10 | 0 |
Financing receivable, post-modification other | 0 | 0 | 0 |
Post-modification TDR net finance receivables | $ 6 | $ 10 | $ 0 |
Number of TDR accounts | account | 721 | 1,155 | 0 |
Personal Loans Held for Sale | Personal Loans | consumer loan held for investment [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 48 | $ 18 | $ 15 |
Financing receivable, post-modification rate reduction | 31 | 10 | 8 |
Financing receivable, post-modification other | 12 | 6 | 4 |
Post-modification TDR net finance receivables | $ 43 | $ 16 | $ 12 |
Number of TDR accounts | account | 8,425 | 4,213 | 3,240 |
Real Estate Loans Held for Sale | Real Estate Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 6 | $ 6 | |
Post-modification TDR net finance receivables | $ 7 | $ 7 | |
Number of TDR accounts | account | 113 | 94 | |
Real Estate Loans Held for Sale | Real Estate Loan | Real Estate Loans Held for Investment | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 21 | $ 215 | $ 576 |
Financing receivable, post-modification rate reduction | 17 | 158 | 554 |
Financing receivable, post-modification other | 5 | 46 | 51 |
Post-modification TDR net finance receivables | $ 22 | $ 204 | $ 605 |
Number of TDR accounts | account | 385 | 2,385 | 7,106 |
Finance Receivables Loans Held for Sale | Financing Receivable | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 7 | $ 6 | |
Post-modification TDR net finance receivables | $ 8 | $ 7 | |
Number of TDR accounts | account | 275 | 94 | |
Finance Receivables Loans Held for Sale | Financing Receivable | Finance Receivables Held for Investment | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $ 76 | $ 243 | $ 591 |
Financing receivable, post-modification rate reduction | 54 | 178 | 562 |
Financing receivable, post-modification other | 17 | 52 | 55 |
Post-modification TDR net finance receivables | $ 71 | $ 230 | $ 617 |
Number of TDR accounts | account | 9,531 | 7,753 | 10,346 |
Finance Receivables - Net Fin80
Finance Receivables - Net Finance Receivables Held for Investment and Sale That Were Modified as TDR Finance Receivables (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2015USD ($)account | Dec. 31, 2014USD ($)account | Dec. 31, 2013USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ | $ 13 | $ 35 | $ 70 | |
Number of TDR accounts | account | 1,848 | 718 | 1,284 | |
Real Estate Loans Held for Sale | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ | $ 1 | $ 3 | ||
Number of TDR accounts | account | 17 | 49 | ||
Personal Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | 90 days | ||
TDR net finance receivables | $ | $ 8 | $ 1 | $ 1 | |
Number of TDR accounts | account | 1,655 | 141 | 355 | |
SpringCastle Portfolio | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ | $ 2 | $ 1 | $ 0 | |
Number of TDR accounts | account | 147 | 53 | 0 | |
Real Estate Loans Held for Investment | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ | $ 3 | $ 33 | $ 69 | |
Number of TDR accounts | account | 46 | 524 | 929 | |
Nonperforming | ||||
Financing Receivable, Modifications [Line Items] | ||||
Default period TDR finance receivables to be considered Non-performing | 12 months | |||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 90 days |
Allowance for Finance Receiva81
Allowance for Finance Receivable Losses Allowance Rollforward (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Balance at beginning of period | $ 176 | $ 333 | $ 183 | $ 176 | $ 333 | $ 183 | |||||||||
Provision for finance receivable losses | $ 510 | $ 82 | $ 80 | 87 | $ 95 | $ 103 | $ 115 | 161 | 759 | 474 | 527 | ||||
Charge-offs | (413) | (438) | (456) | ||||||||||||
Recoveries | 66 | 47 | 80 | ||||||||||||
Transfers to finance receivables held for sale | (1) | (240) | (1) | ||||||||||||
Balance at end of period | 587 | 176 | $ 333 | 587 | 176 | 333 | |||||||||
Transfers to finance receivables held for sale which have a specific allowance | 18 | 608 | |||||||||||||
Finance receivables transferred from held for investment to held for sale | $ 608 | 6,700 | 17 | ||||||||||||
Adjustments | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Provision for finance receivable losses | $ 8 | ||||||||||||||
Borrowers in Bankruptcy Status | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Charge-offs | (4) | ||||||||||||||
Personal Loans | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Balance at beginning of period | 132 | 95 | $ 67 | 132 | 95 | 67 | |||||||||
Provision for finance receivable losses | 655 | 205 | 130 | ||||||||||||
Charge-offs | (292) | (193) | (149) | ||||||||||||
Recoveries | 47 | 25 | 48 | ||||||||||||
Transfers to finance receivables held for sale | (1) | 0 | (1) | ||||||||||||
Balance at end of period | 541 | 132 | 95 | $ 541 | 132 | 95 | |||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 23 | ||||||||||||||
Number of days past due before which a loan is charged off to the allowance for finance receivable losses | 180 days | 90 days | |||||||||||||
Personal Loans | As Reported | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Minimum percentage of original loan amount to be received before charge-off (as a percent) | 5.00% | ||||||||||||||
Personal Loans | Change in Charge Off Policy for Loans and Leases Receivable | Adjustments | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Charge-offs | $ (13) | ||||||||||||||
SpringCastle Portfolio | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Balance at beginning of period | 3 | 1 | 0 | $ 3 | 1 | 0 | |||||||||
Provision for finance receivable losses | 88 | 152 | 133 | ||||||||||||
Charge-offs | (99) | (164) | (138) | ||||||||||||
Recoveries | 12 | 14 | 6 | ||||||||||||
Transfers to finance receivables held for sale | 0 | 0 | 0 | ||||||||||||
Balance at end of period | 4 | 3 | 1 | 4 | 3 | 1 | |||||||||
Real Estate Loans | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Balance at beginning of period | 40 | 235 | 114 | 40 | 235 | 114 | |||||||||
Provision for finance receivable losses | 14 | 114 | 265 | ||||||||||||
Charge-offs | (19) | (76) | (160) | ||||||||||||
Recoveries | 6 | 7 | 16 | ||||||||||||
Transfers to finance receivables held for sale | 0 | (240) | 0 | ||||||||||||
Balance at end of period | 41 | 40 | 235 | 41 | 40 | 235 | |||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 2 | 9 | |||||||||||||
Retail Sales Finance | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Balance at beginning of period | $ 1 | $ 2 | $ 2 | 1 | 2 | 2 | |||||||||
Provision for finance receivable losses | 2 | 3 | (1) | ||||||||||||
Charge-offs | (3) | (5) | (9) | ||||||||||||
Recoveries | 1 | 1 | 10 | ||||||||||||
Transfers to finance receivables held for sale | 0 | 0 | 0 | ||||||||||||
Balance at end of period | $ 1 | $ 1 | $ 2 | $ 1 | $ 1 | 2 | |||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 5 | ||||||||||||||
FA Loans | |||||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | $ 37 | ||||||||||||||
Adjustment for the subsequent buyback of previously charged-off finance receivables sold | $ 4 |
Allowance for Finance Receiva82
Allowance for Finance Receivable Losses Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 587 | $ 176 | $ 333 | $ 183 |
Consolidated VIEs | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 431 | $ 72 |
Allowance for Finance Receiva83
Allowance for Finance Receivable Losses Carrying Value Charged-off For Purchased Credit Impaired Loans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OM Loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Purchased credit impaired finance receivables | $ 30 | $ 0 | $ 0 |
SpringCastle Portfolio | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Purchased credit impaired finance receivables | 21 | 48 | 72 |
FA Loans | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Purchased credit impaired finance receivables | $ 1 | $ 15 | $ 42 |
Allowance for Finance Receiva84
Allowance for Finance Receivable Losses and Net Finance Receivables by Type and by Impairment Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | $ 525 | $ 135 | ||
Allowance for finance receivable losses | 587 | 176 | $ 333 | $ 183 |
Individually evaluated for impairment (TDR finance receivables) | 55 | 36 | ||
Collectively evaluated for impairment | 14,349 | 5,976 | ||
Net Finance Receivables | 15,390 | 6,483 | ||
TDR net finance receivables | $ 166 | $ 137 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 3.81% | 2.71% | ||
Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 7 | $ 5 | ||
Net Finance Receivables | 875 | 370 | ||
Personal Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 524 | 131 | ||
Allowance for finance receivable losses | 541 | 132 | 95 | 67 |
Individually evaluated for impairment (TDR finance receivables) | 17 | 1 | ||
Collectively evaluated for impairment | 12,599 | 3,809 | ||
Net Finance Receivables | 13,267 | 3,831 | ||
TDR net finance receivables | $ 44 | $ 22 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.07% | 3.45% | ||
Personal Loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 0 | $ 0 | ||
Net Finance Receivables | 624 | 0 | ||
SpringCastle Portfolio | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Allowance for finance receivable losses | 4 | 3 | 1 | 0 |
Individually evaluated for impairment (TDR finance receivables) | 4 | 3 | ||
Collectively evaluated for impairment | 1,340 | 1,629 | ||
Net Finance Receivables | 1,576 | 1,979 | ||
TDR net finance receivables | $ 13 | $ 10 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 0.27% | 0.14% | ||
SpringCastle Portfolio | Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 0 | $ 0 | ||
Net Finance Receivables | 223 | 340 | ||
Real Estate Loans | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 0 | 3 | ||
Allowance for finance receivable losses | 41 | 40 | 235 | 114 |
Individually evaluated for impairment (TDR finance receivables) | 34 | 32 | ||
Collectively evaluated for impairment | 387 | 490 | ||
Net Finance Receivables | 524 | 625 | ||
TDR net finance receivables | $ 109 | $ 105 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 7.93% | 6.42% | ||
Real Estate Loans | Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 7 | $ 5 | ||
Net Finance Receivables | 28 | 30 | ||
Retail Sales Finance | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 1 | 1 | ||
Allowance for finance receivable losses | 1 | 1 | $ 2 | $ 2 |
Individually evaluated for impairment (TDR finance receivables) | 0 | 0 | ||
Collectively evaluated for impairment | 23 | 48 | ||
Net Finance Receivables | 23 | 48 | ||
TDR net finance receivables | $ 0 | $ 0 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 3.45% | 1.56% | ||
Retail Sales Finance | Receivables Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance for finance receivable losses | $ 0 | $ 0 | ||
Net Finance Receivables | $ 0 | $ 0 |
Finance Receivables Held for 85
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | $ 796 | $ 205 | ||
Finance receivables held for sale originated as held for investment | 61 | 61 | $ 0 | |
Finance receivables transferred from held for investment to held for sale | $ 608 | 6,700 | 17 | |
Cost of mortgages sold | 6,400 | 18 | ||
Net gain on sales of real estate loans and related trust assets | 0 | 726 | 0 | |
Mortgage loans on real estate, holdback provision receivable | 5 | 64 | ||
Loans and Leases Receivable Gain Loss on Sales Net of Impairment Recorded on Reclassification To Held for Sale | (2) | |||
Finance Receivables Held For Sale Originated as Held-for-investment | $ 0 | 0 | $ 0 | |
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net gain on sales of real estate loans and related trust assets | $ 726 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | $ 1,000,000 | $ 0 | |
Cost/ Amortized Cost | 1,751,000,000 | $ 586,000,000 | |
Unrealized Gains | 5,000,000 | 20,000,000 | |
Unrealized Losses | (27,000,000) | (2,000,000) | |
Available-for-sale securities | 1,729,000,000 | 604,000,000 | |
Unrealized losses on certain available-for-sale securities, less than | 1,000,000 | 1,000,000 | |
Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 1,712,000,000 | 578,000,000 | |
Unrealized Gains | 5,000,000 | 20,000,000 | |
Unrealized Losses | (26,000,000) | (2,000,000) | |
Available-for-sale securities | 1,691,000,000 | 596,000,000 | |
U.S. government and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 112,000,000 | 61,000,000 | |
Unrealized Gains | 0 | 3,000,000 | |
Unrealized Losses | (1,000,000) | ||
Available-for-sale securities | 111,000,000 | 64,000,000 | |
Obligations of states, municipalities, and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 140,000,000 | 99,000,000 | |
Unrealized Gains | 1,000,000 | 3,000,000 | |
Unrealized Losses | (1,000,000) | ||
Available-for-sale securities | 140,000,000 | 102,000,000 | |
Certificates of deposit and commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 3,000,000 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 0 | ||
Available-for-sale securities | 3,000,000 | ||
Non-U.S. government and government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 126,000,000 | ||
Unrealized Gains | 1,000,000 | ||
Unrealized Losses | (1,000,000) | ||
Available-for-sale securities | 126,000,000 | ||
Corporate debt | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 1,018,000,000 | 256,000,000 | |
Unrealized Gains | 3,000,000 | 12,000,000 | |
Unrealized Losses | (22,000,000) | (1,000,000) | |
Available-for-sale securities | 999,000,000 | 267,000,000 | |
Residential mortgage-backed securities (“RMBS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 128,000,000 | 71,000,000 | |
Unrealized Gains | 2,000,000 | ||
Available-for-sale securities | 128,000,000 | 73,000,000 | |
Commercial mortgage-backed securities (“CMBS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 117,000,000 | 25,000,000 | |
Unrealized Losses | (1,000,000) | (1,000,000) | |
Available-for-sale securities | 116,000,000 | 24,000,000 | |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 71,000,000 | 63,000,000 | |
Available-for-sale securities | 71,000,000 | 63,000,000 | |
Preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 14,000,000 | 7,000,000 | |
Unrealized Gains | 0 | ||
Unrealized Losses | (1,000,000) | 0 | |
Available-for-sale securities | 13,000,000 | 7,000,000 | |
Common Stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 23,000,000 | ||
Available-for-sale securities | 23,000,000 | ||
Other long-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost/ Amortized Cost | 2,000,000 | 1,000,000 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | ||
Available-for-sale securities | $ 2,000,000 | $ 1,000,000 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Securities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value | |||
Less Than 12 Months | $ 1,277,000 | $ 140,000 | |
12 Months or Longer | 20,000 | 10,000 | |
Total | 1,297,000 | 150,000 | |
Unrealized Losses | |||
Less Than 12 Months | (26,000) | (2,000) | |
12 Months or Longer | (1,000) | 0 | |
Total | (27,000) | (2,000) | |
Unrealized losses on certain available-for-sale securities, less than | 1,000 | 1,000 | |
Accumulated Other comprehensive Income (loss), other than temporary impairment, not credit loss, net of tax, available-for sale, additions or reductions | 0 | $ 0 | |
Certificates of deposit and commercial paper | |||
Unrealized Losses | |||
Available-for-sale Securities Pledged as Collateral | 2,000 | ||
Bonds | |||
Fair Value | |||
Less Than 12 Months | 1,258,000 | 134,000 | |
12 Months or Longer | 14,000 | 10,000 | |
Total | 1,272,000 | 144,000 | |
Unrealized Losses | |||
Less Than 12 Months | (26,000) | (2,000) | |
12 Months or Longer | 0 | 0 | |
Total | (26,000) | (2,000) | |
U.S. government and government sponsored entities | |||
Fair Value | |||
Less Than 12 Months | 102,000 | 0 | |
12 Months or Longer | 1,000 | ||
Total | 102,000 | 1,000 | |
Unrealized Losses | |||
Less Than 12 Months | (1,000) | 0 | |
Total | (1,000) | 0 | |
Obligations of states, municipalities, and political subdivisions | |||
Fair Value | |||
Less Than 12 Months | 69,000 | 27,000 | |
12 Months or Longer | 2,000 | 1,000 | |
Total | 71,000 | 28,000 | |
Unrealized Losses | |||
Less Than 12 Months | (1,000) | 0 | |
Total | (1,000) | 0 | |
Non-U.S. government and government sponsored entities | |||
Fair Value | |||
Less Than 12 Months | 19,000 | ||
Total | 19,000 | ||
Unrealized Losses | |||
Less Than 12 Months | (1,000) | ||
Total | (1,000) | ||
Corporate debt | |||
Fair Value | |||
Less Than 12 Months | 786,000 | 36,000 | |
12 Months or Longer | 7,000 | 6,000 | |
Total | 793,000 | 42,000 | |
Unrealized Losses | |||
Less Than 12 Months | (22,000) | (1,000) | |
12 Months or Longer | 0 | ||
Total | (22,000) | (1,000) | |
Residential mortgage-backed securities (“RMBS”) | |||
Fair Value | |||
Less Than 12 Months | 107,000 | 9,000 | |
Total | 107,000 | 9,000 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
Total | 0 | 0 | |
Commercial mortgage-backed securities (“CMBS”) | |||
Fair Value | |||
Less Than 12 Months | 104,000 | 16,000 | |
12 Months or Longer | 5,000 | 2,000 | |
Total | 109,000 | 18,000 | |
Unrealized Losses | |||
Less Than 12 Months | (1,000) | (1,000) | |
Total | (1,000) | (1,000) | |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | |||
Fair Value | |||
Less Than 12 Months | 71,000 | 46,000 | |
Total | 71,000 | 46,000 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
Total | 0 | 0 | |
Preferred stock | |||
Fair Value | |||
Less Than 12 Months | 2,000 | ||
12 Months or Longer | 6,000 | ||
Total | 8,000 | ||
Unrealized Losses | |||
Less Than 12 Months | 0 | ||
12 Months or Longer | (1,000) | ||
Total | (1,000) | ||
Common Stock | |||
Fair Value | |||
Less Than 12 Months | 16,000 | ||
Total | 16,000 | ||
Unrealized Losses | |||
Less Than 12 Months | 0 | ||
Total | 0 | ||
Other long-term investments | |||
Fair Value | |||
Less Than 12 Months | 1,000 | 6,000 | |
Total | 1,000 | 6,000 | |
Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
Total | $ 0 | $ 0 |
Investment Securities - Changes
Investment Securities - Changes in Cumulative Amount of Credit Losses and Proceeds From Sale or Redemption (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | |||
Balance at beginning of period | $ 1,000,000 | ||
Impairment previously recognized | 1,000,000 | ||
Balance at end of period | 2,000,000 | $ 1,000,000 | |
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | 1,000,000 | $ 0 | |
Available-for-sale securities sold or redeemed | |||
Fair value | 431,000,000 | 280,000,000 | 615,000,000 |
Realized gains | 15,000,000 | 9,000,000 | 5,000,000 |
Realized losses | (1,000,000) | (1,000,000) | (2,000,000) |
Net realized gains (losses) | $ 14,000,000 | $ 8,000,000 | $ 3,000,000 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details 4) $ in Millions | Dec. 31, 2015USD ($) |
Fair Value | |
Due in 1 year or less | $ 170 |
Due after 1 year through 5 years | 602 |
Due after 5 years through 10 years | 419 |
Due after 10 years | 185 |
Mortgage-backed, asset-backed, and collateralized securities | 315 |
Fair Value | 1,691 |
Amortized Cost | |
Due in 1 year or less | 170 |
Due after 1 year through 5 years | 607 |
Due after 5 years through 10 years | 424 |
Due after 10 years | 195 |
Mortgage-backed, asset-backed, and collateralized securities | 316 |
Amortized Cost | $ 1,712 |
Investment Securities - Fair 90
Investment Securities - Fair Value of Trading and Other Securities by Type (Details 5) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Trading securities | |||
Bonds | $ 131,000,000 | $ 2,330,000,000 | |
Preferred stock | 6,000,000 | 0 | |
Trading securities | 137,000,000 | 2,330,000,000 | |
Other trading securities | 128,000,000 | 5,000,000 | |
Realized gains (losses) on trading securities | |||
Net unrealized gains (losses) on trading securities held at year end | 0 | (9,000,000) | |
Net realized gains (losses) on trading securities sold or redeemed during the year | (3,000,000) | 5,000,000 | |
Total | (3,000,000) | (4,000,000) | |
Unrealized and realized gains (losses) on other securities, less than | $ 1,000,000 | ||
U.S. government and government sponsored entities | |||
Trading securities | |||
Bonds | 0 | 303,000,000 | |
Bonds | |||
Trading securities | |||
Trading securities | 131,000,000 | ||
Obligations of states, municipalities, and political subdivisions | |||
Trading securities | |||
Bonds | 0 | 14,000,000 | |
Certificates of deposit and commercial paper | |||
Trading securities | |||
Bonds | 0 | 238,000,000 | |
Non-U.S. government and government sponsored entities | |||
Trading securities | |||
Bonds | 3,000,000 | 20,000,000 | |
Corporate debt | |||
Trading securities | |||
Bonds | 124,000,000 | 1,056,000,000 | |
Residential mortgage-backed securities (“RMBS”) | |||
Trading securities | |||
Bonds | 2,000,000 | 36,000,000 | |
Commercial mortgage-backed securities (“CMBS”) | |||
Trading securities | |||
Bonds | 2,000,000 | 151,000,000 | |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | |||
Trading securities | |||
Bonds | $ 0 | $ 512,000,000 |
Investment Securities Narrative
Investment Securities Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income (loss) | $ 1,000,000 | $ 0 | |
Net impairment losses recognized in net income (loss) | 1,000,000 | $ 0 | $ 0 |
Fair value, certificates of deposit | 152,000,000 | $ 12,000,000 | |
OneMain | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair value, certificates of deposit | $ 141,000,000 |
Goodwill and Other Intangible92
Goodwill and Other Intangible Assets -- Goodwill (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, Impairment Loss | $ 0 | |
Consumer and Insurance Segment | ||
Goodwill [Line Items] | ||
Goodwill acquired during period | $ 1,440,000 | |
OneMain | ||
Goodwill [Line Items] | ||
Goodwill acquired during period | $ 1,400,000 |
Goodwill and Other Intangible93
Goodwill and Other Intangible Assets -- Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 631 | $ 76 |
Finite-Lived Intangible Assets, Accumulated Amortization | (72) | (55) |
Finite-Lived Intangible Assets, Net | 559 | 21 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 223 | 18 |
Finite-Lived Intangible Assets, Accumulated Amortization | (24) | (15) |
Finite-Lived Intangible Assets, Net | 199 | 3 |
Trade names | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 220 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |
Finite-Lived Intangible Assets, Net | 220 | |
VOBA [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 141 | 36 |
Finite-Lived Intangible Assets, Accumulated Amortization | (39) | (32) |
Finite-Lived Intangible Assets, Net | 102 | 4 |
Licenses | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 37 | 12 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Finite-Lived Intangible Assets, Net | 37 | 12 |
Customer Lists [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 9 | 9 |
Finite-Lived Intangible Assets, Accumulated Amortization | (9) | (8) |
Finite-Lived Intangible Assets, Net | 0 | 1 |
Domain Names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1 | 1 |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Finite-Lived Intangible Assets, Net | 1 | $ 1 |
OneMain | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 555 |
Goodwill and Other Intangible94
Goodwill and Other Intangible Assets -- Amoritization Expense and Amoritization of Other Intangibles (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 16 | $ 4 | $ 5 |
amortization expense of intangibles periods in table | 5 years | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 67 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 52 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 44 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 40 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 38 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2015 |
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Fixed assets, net | $ 91 | $ 179 | |
Deferred tax asset | 0 | 120 | |
Ceded insurance reserves | 22 | 107 | |
Other investments | 104 | 92 | |
Prepaid expenses and deferred charges | 26 | 59 | |
Current tax receivable | 103 | 20 | |
Escrow deposit | 8 | 11 | |
Other investments, Cost basis investment | 0 | 11 | |
Real Estate Investment Property, at Cost | 13 | 8 | |
Receivables Related To Sales of Real Estate Loans and Related Trust Assets | 79 | 5 | |
Other Assets, Miscellaneous | 18 | 26 | |
Other Assets | 464 | 638 | |
Accumulated depreciation on fixed assets | 170 | 190 | |
Debt issuance cost | 30 | ||
Mortgage loans on real estate, holdback provision receivable | 64 | $ 5 | |
New Accounting Pronouncement, Early Adoption, Effect [Member] | |||
New Accounting Pronouncement, Early Adoption [Line Items] | |||
Debt issuance cost | $ 32 | $ 29 |
Transactions with Affiliates 96
Transactions with Affiliates of Fortress or AIG (Details) - USD ($) $ in Millions | Aug. 05, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May. 31, 2015 | Oct. 03, 2014 | Aug. 01, 2014 | Mar. 06, 2014 |
Transactions with Affiliates of Fortress or AIG | ||||||||
Mortgage servicing rights sale, purchase price | $ 39 | |||||||
Reserves for reinsurance agreements | $ 346 | $ 58 | ||||||
Insurance coverage premium expense | 1 | $ 1 | ||||||
AIGFP | Cross currency interest rate derivative | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Loss recorded in other revenues - other on termination | $ 2 | |||||||
Notional amount of terminated instruments | 417 | |||||||
Corporate Joint Venture | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Ownership percentage | 47.00% | 47.00% | ||||||
Nationstar | Owners | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Subservicing fees | $ 2 | 5 | 9 | |||||
SFI | AIGFP | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Amount of cash collateral returned | $ 40 | |||||||
SCA | NRZ | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Ownership percentage | 30.00% | |||||||
Logan Circle Partners L P | Affiliated Entity | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Costs and fees incurred for the investment management services | $ 1 | 1 | $ 1 | |||||
Merrill Lynch Pierce Fenner and Smith | Affiliated Entity | 2009-1 Trust | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Ownership percent sold to related party | 75.00% | |||||||
Nationstar | Servicing Agreement | Affiliated Entity | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Accounts receivable, related parties | 1 | $ 1 | ||||||
Subsidiaries of AIG | Affiliated Entity | Merit Life Insurance Co. | ||||||||
Transactions with Affiliates of Fortress or AIG | ||||||||
Reserves for reinsurance agreements | $ 44 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term debt | |||
Long-term debt | $ 17,300 | $ 8,356 | |
Fair value | $ 17,616 | $ 9,182 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 6.65% | 6.93% | 6.82% |
Weighted average interest rates on long-term debt at period end (as a percent) | 5.39% | 7.26% | |
Principal maturities of long-term debt by type of debt | |||
First quarter 2016 | $ 0 | ||
Second quarter 2016 | 0 | ||
Third quarter 2016 | 375 | ||
Fourth quarter 2016 | 0 | ||
2,016 | 375 | ||
2,017 | 1,903 | ||
2,018 | 0 | ||
2,019 | 1,400 | ||
2,020 | 300 | ||
2021-2067 | 2,100 | ||
Securitizations | 9,040 | ||
Revolvoing conduit facilities, long-term debt maturities | 2,620 | ||
Total principal maturities | 17,738 | ||
Long-term debt | 17,300 | $ 8,356 | |
Debt issuance cost | (30) | ||
Senior debt | |||
Long-term debt | |||
Long-term debt | 17,128 | 8,184 | |
Fair value | $ 17,371 | $ 8,920 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 6.56% | 6.84% | 6.75% |
Weighted average interest rates on long-term debt at period end (as a percent) | 5.32% | 7.16% | |
Principal maturities of long-term debt by type of debt | |||
Long-term debt | $ 17,128 | $ 8,184 | |
Junior Subordinated Debt | |||
Long-term debt | |||
Long-term debt | 172 | 172 | |
Fair value | $ 245 | $ 262 | |
Weighted average interest rates on long-term debt during the period (as a percent) | 12.26% | 12.26% | 12.26% |
Weighted average interest rates on long-term debt at period end (as a percent) | 12.26% | 12.26% | |
Principal maturities of long-term debt by type of debt | |||
Interest rates (as a percent) | 6.00% | ||
Long-term debt | $ 172 | $ 172 | |
Senior debt | Securitizations | |||
Long-term debt | |||
Long-term debt | $ 9,034 | ||
Principal maturities of long-term debt by type of debt | |||
Contractual interest rate, minimum (as a percent) | 2.41% | ||
Contractual interest rate, maximum (as a percent) | 6.94% | ||
First quarter 2016 | $ 0 | ||
Second quarter 2016 | 0 | ||
Third quarter 2016 | 0 | ||
Fourth quarter 2016 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2021-2067 | 0 | ||
Securitizations | 9,040 | ||
Revolvoing conduit facilities, long-term debt maturities | 0 | ||
Total principal maturities | 9,040 | ||
Long-term debt | 9,034 | ||
Debt issuance cost | (16) | ||
Senior debt | Revolving Conduit Facilities | |||
Long-term debt | |||
Long-term debt | $ 2,620 | ||
Principal maturities of long-term debt by type of debt | |||
Contractual interest rate, minimum (as a percent) | 1.65% | ||
Contractual interest rate, maximum (as a percent) | 3.65% | ||
First quarter 2016 | $ 0 | ||
Second quarter 2016 | 0 | ||
Third quarter 2016 | 0 | ||
Fourth quarter 2016 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2021-2067 | 0 | ||
Securitizations | 0 | ||
Revolvoing conduit facilities, long-term debt maturities | 2,620 | ||
Total principal maturities | 2,620 | ||
Long-term debt | 2,620 | ||
Debt issuance cost | 0 | ||
Senior debt | Medium Term Notes | |||
Long-term debt | |||
Long-term debt | $ 5,474 | ||
Principal maturities of long-term debt by type of debt | |||
Contractual interest rate, minimum (as a percent) | 5.25% | ||
Contractual interest rate, maximum (as a percent) | 8.25% | ||
First quarter 2016 | $ 0 | ||
Second quarter 2016 | 0 | ||
Third quarter 2016 | 375 | ||
Fourth quarter 2016 | 0 | ||
2,016 | 375 | ||
2,017 | 1,903 | ||
2,018 | 0 | ||
2,019 | 1,400 | ||
2,020 | 300 | ||
2021-2067 | 1,750 | ||
Securitizations | 0 | ||
Revolvoing conduit facilities, long-term debt maturities | 0 | ||
Total principal maturities | 5,728 | ||
Long-term debt | 5,474 | ||
Debt issuance cost | (14) | ||
Junior Subordinated Debt | |||
Long-term debt | |||
Long-term debt | 172 | ||
Principal maturities of long-term debt by type of debt | |||
First quarter 2016 | 0 | ||
Second quarter 2016 | 0 | ||
Third quarter 2016 | 0 | ||
Fourth quarter 2016 | 0 | ||
2,016 | 0 | ||
2,017 | 0 | ||
2,018 | 0 | ||
2,019 | 0 | ||
2,020 | 0 | ||
2021-2067 | 350 | ||
Securitizations | 0 | ||
Revolvoing conduit facilities, long-term debt maturities | 0 | ||
Total principal maturities | 350 | ||
Long-term debt | 172 | ||
Debt issuance cost | $ 0 |
Long-term Debt -- Guaranty Agre
Long-term Debt -- Guaranty Agreements (Details) - USD ($) | Dec. 30, 2013 | Jan. 31, 2007 | Dec. 31, 2015 | Dec. 11, 2014 | Dec. 03, 2014 |
Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.00% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior note | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,200,000,000 | $ 4,200,000,000 | $ 700,000,000 | ||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Notes 5.25 % Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 700,000,000 | ||||
Interest rates (as a percent) | 5.25% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | 350,000,000 | ||
Term of debt | 60 years | 60 years | |||
Guaranty Agreements | Springleaf Holdings, Inc. | 8.250% Senior Notes due 2023 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 8.25% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | 7.750% Senior Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 7.75% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | 6.00% Senior Notes due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.00% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Notes 1999 Indenture | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 2,300,000,000 | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Note 6.75 Percent due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.75% | ||||
Guaranty Agreements | Springleaf Holdings, Inc. | Senior Note 7.25 Percent due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 7.25% | ||||
Guaranty Agreements | OneMain Financial Holdings, Inc. | Senior Note 6.75 Percent due 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 700,000,000 | ||||
Guaranty Agreements | OneMain Financial Holdings, Inc. | Senior Note 7.25 Percent due 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 800,000,000 | ||||
Guaranty Agreements | OneMain Financial Holdings, Inc. | Senior Note 7.25 Percent due 2021 | Senior Note 6.75 Percent due 2019 | |||||
Debt Instrument [Line Items] | |||||
Senior notes | $ 1,500,000,000 |
Long-term Debt -- Debt Covenant
Long-term Debt -- Debt Covenants (Details) | Jan. 11, 2016USD ($)instrument | Dec. 30, 2013USD ($) | Jan. 31, 2007USD ($) | Dec. 31, 2015USD ($)agreement | Sep. 30, 2013 |
Debt Instrument [Line Items] | |||||
Debt instrument, number of agreements requiring specific financial targets or ratios | agreement | 0 | ||||
OMFH Debt Agreements | |||||
Debt Instrument [Line Items] | |||||
Period for credit downgrade after change in control | 60 days | ||||
Debt covenant, debt redemption price for change in control and credit downgrade | 10100.00% | ||||
Junior Subordinated Debt | Springleaf Finance Corporation | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, covenant, period used to calculate average fixed charge ratio | 12 months | ||||
Debt instrument, average fixed charge ratio, actual | 94.00% | ||||
Junior Subordinated Debt | Springleaf Finance Corporation | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, covenant, number of shares issued for default | instrument | 1 | ||||
Debt instrument, covenant, value of shares issued for default | $ 11,000,000 | ||||
Minimum [Member] | Junior Subordinated Debt | Springleaf Finance Corporation | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, covenant, percent of tangible equity to tangible managed assets | 5.50% | ||||
Debt instrument, covenant, average fixed charge ratio | 1.10 | ||||
Guaranty Agreements | Junior Subordinated Debt | Springleaf Holdings, Inc. | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | ||
Term of debt | 60 years | 60 years |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Oct. 03, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 21, 2016USD ($) | Jan. 21, 2016loan | Jan. 21, 2016agreement | Feb. 03, 2015USD ($) |
Debt Instrument [Line Items] | |||||||||
Schedule of sale of previously retained mortgage-backed and asset-backed notes | During 2013, SFC sold the following previously retained mortgage-backed notes: (dollars in millions) Principal Amount of Previously Retained Notes Issued Carrying Amount of Additional Debt Recorded Mortgage Securitizations SLFMT 2012-2 $ 20 $ 21 SLFMT 2012-3 8 8 SLFMT 2013-2 158 149 SLFMT 2013-3 23 23 | ||||||||
Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 2,400,000,000 | ||||||||
Number of bilateral conduit facilities | 4 | 4 | |||||||
Medium Term Notes | Medium Term 6.50 Percent Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rates (as a percent) | 6.50% | 6.50% | |||||||
OneMain Financial Holdings, LLC | Warehouse Agreement Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit, maximum borrowing capacity | $ 3,000,000,000 | ||||||||
Long-term line of credit | $ 1,400,000,000 | ||||||||
Debt covenant, minimum consolidated tangible shareholders' equity | $ 1,000,000,000 | ||||||||
Debt covenant, maximum consolidated debt to tangible shareholders' equity ratio | 600.00% | ||||||||
Debt Instrument, Covenant Percentage of Tangible Equity to Tangible Managed Assets | 100.00% | ||||||||
Springleaf Finance Corporation | SpringCastle Funding Asset-backed Notes 2013-A | |||||||||
Debt Instrument [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ (21,000,000) | ||||||||
Springleaf Finance Corporation | Medium Term Notes | Senior Notes 5.25 % Due 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | |||||||
Contractual interest rate, minimum (as a percent) | 5.25% | ||||||||
Springleaf Finance Corporation | Medium Term Notes | Medium Term 6.50 Percent Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | $ 23,000,000 | $ 23,000,000 | |||||||
Interest rates (as a percent) | 6.50% | 6.50% | |||||||
Springleaf Finance Corporation | Medium Term Notes | Medium Term 6.90 Percent Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | $ 66,000,000 | $ 66,000,000 | |||||||
Interest rates (as a percent) | 6.90% | 6.90% | |||||||
Springleaf Finance Corporation | Medium Term Notes | Medium Term Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Deferred finance costs, net | $ 57,000,000 | $ 57,000,000 | |||||||
Gain (loss) on extinguishment of debt | (17,000,000) | ||||||||
Springleaf Finance Corporation | Medium Term Notes | Beneficial Owners of Debt | Medium Term 6.50 Percent Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | 9,000,000 | 9,000,000 | |||||||
Springleaf Finance Corporation | Medium Term Notes | Beneficial Owners of Debt | Medium Term 6.90 Percent Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt repurchased | $ 361,000,000 | 361,000,000 | |||||||
Springleaf Finance Corporation | Medium Term Notes | Beneficial Owners of Debt | Medium Term Notes Due 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ (20,000,000) | ||||||||
Corporate Joint Venture | |||||||||
Debt Instrument [Line Items] | |||||||||
Ownership percentage | 47.00% | 47.00% | |||||||
Springleaf Financial Funding Company | Secured term loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 750,000,000 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amounts (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 939 | $ 879 | $ 431 | $ 1,554 | |
Personal loans | 13,267 | 3,831 | |||
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.6 billion in 2015 and $2.0 billion in 2014) | 1,576 | 1,979 | |||
Allowance for finance receivable losses | 587 | 176 | 333 | 183 | |
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $663 million in 2015 and $210 million in 2014) | 676 | 218 | |||
Other assets | 638 | 464 | |||
Long-term debt | 17,300 | 8,356 | |||
Other liabilities | 384 | 238 | |||
Consolidated VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 11 | 52 | |||
Allowance for finance receivable losses | 431 | 72 | |||
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $663 million in 2015 and $210 million in 2014) | 663 | 210 | |||
Other assets | 48 | 23 | |||
Long-term debt | 11,654 | 3,630 | |||
Other liabilities | 17 | 8 | |||
Consolidated VIEs | New Accounting Pronouncement, Early Adoption, Effect [Member] | Other Assets | |||||
Variable Interest Entity [Line Items] | |||||
Debt issuance cost | $ (14) | ||||
Consolidated VIEs | New Accounting Pronouncement, Early Adoption, Effect [Member] | Long-term Debt | |||||
Variable Interest Entity [Line Items] | |||||
Debt issuance cost | $ 14 | ||||
Personal Loans | |||||
Variable Interest Entity [Line Items] | |||||
Allowance for finance receivable losses | 541 | 132 | 95 | 67 | |
Personal Loans | Consolidated VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Personal loans | 11,424 | 1,853 | |||
SpringCastle Portfolio | |||||
Variable Interest Entity [Line Items] | |||||
Allowance for finance receivable losses | 4 | 3 | $ 1 | $ 0 | |
SpringCastle Portfolio | Consolidated VIEs | |||||
Variable Interest Entity [Line Items] | |||||
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.6 billion in 2015 and $2.0 billion in 2014) | $ 1,576 | $ 1,979 |
Variable Interest Entities - SF
Variable Interest Entities - SFC Consumer Loan Securitizations (Details) - Consolidated VIEs - USD ($) | Apr. 07, 2015 | Feb. 26, 2015 | Apr. 17, 2014 | Mar. 27, 2014 | Mar. 26, 2014 | Sep. 25, 2013 | Jun. 19, 2013 | Feb. 19, 2013 | Dec. 15, 2015 |
Consumer Loan Securitizations | SFC 2013-A Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 225,000,000 | ||||||||
Debt redemption price | 189,000,000 | ||||||||
Amount excluded from the redemption price | $ 37,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2013-A Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 568,000,000 | ||||||||
Weighted average yield (as a percent) | 2.83% | ||||||||
Proceeds from notes sold under securitization transactions | $ 568,000,000 | ||||||||
Interest reserve requirement on notes sold under securitization | 7,000,000 | ||||||||
Notes initially retained by the entity | $ 36,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2013-B Securitization | Subordinate notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional debt of senior asset-backed notes | $ 112,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2013-B Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 256,000,000 | ||||||||
Weighted average yield (as a percent) | 4.11% | ||||||||
Proceeds from notes sold under securitization transactions | $ 255,000,000 | ||||||||
Interest reserve requirement on notes sold under securitization | 4,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2013-B Securitization | Personal Loans | Senior note | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes initially retained by the entity | 114,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2013-B Securitization | Personal Loans | Subordinate notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes initially retained by the entity | $ 30,000,000 | ||||||||
Consumer Loan Securitizations | 2013-BAC Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 500,000,000 | ||||||||
Proceeds from notes sold under securitization transactions | $ 500,000,000 | ||||||||
Repayments of debt | $ 231,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2014-A Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 559,000,000 | ||||||||
Weighted average yield (as a percent) | 2.62% | ||||||||
Proceeds from notes sold under securitization transactions | $ 559,000,000 | ||||||||
Interest reserve requirement on notes sold under securitization | 6,000,000 | ||||||||
Notes initially retained by the entity | $ 33,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2015-A Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 1,200,000,000 | ||||||||
Weighted average yield (as a percent) | 3.58% | ||||||||
Proceeds from notes sold under securitization transactions | $ 1,200,000,000 | ||||||||
Interest reserve requirement on notes sold under securitization | $ 12,000,000 | ||||||||
Consumer Loan Securitizations | SFC 2015-B Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of notes sold under private securitization | $ 314,000,000 | ||||||||
Weighted average yield (as a percent) | 3.84% | ||||||||
Proceeds from notes sold under securitization transactions | $ 314,000,000 | ||||||||
Interest reserve requirement on notes sold under securitization | $ 3,000,000 | ||||||||
Securitization [Member] | SFC 2013-B Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Draw Period | 35 months | ||||||||
Securitization [Member] | SFC 2014-A Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Draw Period | 23 months | ||||||||
Securitization [Member] | SFC 2015-A Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Draw Period | 35 months | ||||||||
Securitization [Member] | SFC 2015-B Securitization | Personal Loans | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Draw Period | 59 months |
Variable Interest Entities - OM
Variable Interest Entities - OMFH Consumer Loan Securitization (Details) $ in Millions | Oct. 31, 2015USD ($) | Apr. 17, 2014USD ($) | Dec. 31, 2015securitization | Nov. 15, 2015 | May. 21, 2015USD ($) | Dec. 31, 2014 | Jul. 30, 2014USD ($) |
Debt Instrument [Line Items] | |||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 5.39% | 7.26% | |||||
Consolidated VIEs | OneMain Financial Issuance Trust 2014-1 | Securitizations | Personal Loans | |||||||
Debt Instrument [Line Items] | |||||||
Fixed-rate Funding Note, principal balance | $ 760 | $ 1,200 | |||||
Line of Credit Facility, Draw Period | 23 months | ||||||
Fixed-rate funding note, unpaid principal balance | $ 760 | ||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 2.57% | ||||||
Consolidated VIEs | OneMain Financial Issuance Trust 2014-2 | Securitizations | Personal Loans | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Draw Period | 23 months | ||||||
Fixed-rate funding note, unpaid principal balance | 1,200 | ||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 3.09% | ||||||
Consolidated VIEs | OneMain Financial Issuance Trust 2015-1 | Securitizations | Personal Loans | |||||||
Debt Instrument [Line Items] | |||||||
Fixed-rate Funding Note, principal balance | $ 1,200 | ||||||
Line of Credit Facility, Draw Period | 35 months | ||||||
Fixed-rate funding note, unpaid principal balance | $ 1,200 | ||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 3.88% | ||||||
Consolidated VIEs | OneMain Financial Issuance Trust 2015-2 | Securitizations | Personal Loans | |||||||
Debt Instrument [Line Items] | |||||||
Fixed-rate Funding Note, principal balance | $ 1,300 | ||||||
Line of Credit Facility, Draw Period | 23 months | ||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 3.25% | ||||||
Consolidated VIEs | OneMain Financial Issuance Trust 2015-3 | Securitizations | Personal Loans | |||||||
Debt Instrument [Line Items] | |||||||
Fixed-rate Funding Note, principal balance | $ 293 | ||||||
Line of Credit Facility, Draw Period | 59 months | ||||||
Weighted average interest rates on long-term debt at period end (as a percent) | 4.31% | ||||||
OneMain Financial Holdings, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Number of On-balance sheet consumer securitizations | securitization | 5 |
Variable Interest Entities - Sp
Variable Interest Entities - SpringCastle & SFC Mortgage Securitizations (Details) - USD ($) $ in Millions | Oct. 03, 2014 | Oct. 09, 2013 | Oct. 09, 2013 | Jul. 09, 2013 | Apr. 10, 2013 | Apr. 02, 2013 | Dec. 31, 2015 | Mar. 09, 2015 | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 17,738 | |||||||||
SFC 2013-1 Securitization | Mortgage Loan Securitizations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 23 | |||||||||
SpringCastle 2014-A Notes, Class C | Springleaf Acquisition Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 232 | |||||||||
SpringCastle 2014-A Notes, Class D | Springleaf Acquisition Corporation | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, gross | $ 131 | |||||||||
Consolidated VIEs | SFC 2013-1 Securitization | Mortgage Loan Securitizations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average yield (as a percent) | 3.40% | |||||||||
Consolidated VIEs | SFC 2013-1 Securitization | Mortgage Loan Securitizations | Real Estate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of notes sold under private securitization | $ 271 | $ 271 | ||||||||
Notes initially retained by the entity | $ 229 | 229 | ||||||||
Proceeds from notes sold under securitization transactions | $ 269 | |||||||||
Consolidated VIEs | SFC 2013-2 Securitization | Mortgage Loan Securitizations | Real Estate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of notes sold under private securitization | $ 599 | |||||||||
Weighted average yield (as a percent) | 2.88% | |||||||||
Notes initially retained by the entity | $ 535 | |||||||||
Proceeds from notes sold under securitization transactions | $ 591 | |||||||||
Consolidated VIEs | SFC 2013-3 Securitization | Mortgage Loan Securitizations | Real Estate Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of notes sold under private securitization | $ 783 | |||||||||
Weighted average yield (as a percent) | 2.85% | |||||||||
Notes initially retained by the entity | $ 237 | |||||||||
Proceeds from notes sold under securitization transactions | $ 782 | |||||||||
Consolidated VIEs | Personal Loans | Co-issuer LLCs | Consumer Loan Securitizations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount of notes sold under private securitization | $ 2,200 | |||||||||
Payment for notes acquired by initial purchasers | 2,200 | |||||||||
SCA | Consolidated VIEs | Personal Loans | Co-issuer LLCs | Consumer Loan Securitizations | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Advance reserve requirement on notes acquired | $ 10 | |||||||||
Weighted average yield (as a percent) | 3.75% | |||||||||
Notes initially retained by the entity | $ 372 | |||||||||
Additional debt of senior asset-backed notes | $ 357 | |||||||||
Consumer Loan Securitizations | Spring Castle Credit Funding LLC | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average yield (as a percent) | 4.68% | |||||||||
Debt instrument, face amount | $ 2,600 | |||||||||
Proceeds from issuance of debt, net of price discount | 2,600 | |||||||||
Debt, unpaid principal balance | $ 1,500 | |||||||||
Debt instrument, face amount of notes purchased from SAC | 363 | |||||||||
Debt retained by co-issuers | $ 62 | |||||||||
Ownership interest of noncontrolling owners | 30.00% |
Variable Interest Entities - Pr
Variable Interest Entities - Previously Retained Mortgage-backed and Asset-backed notes (Details) - Mortgage Loan Securitizations $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
SLFMT 2013-3 | |
Variable Interest Entity [Line Items] | |
Debt instrument, face amount | $ 23 |
Real Estate Loans | SLFMT 2012-2 | |
Variable Interest Entity [Line Items] | |
Proceeds from notes sold under securitization transactions | 20 |
Debt instrument, face amount | 21 |
Real Estate Loans | SLFMT 2012-3 | |
Variable Interest Entity [Line Items] | |
Proceeds from notes sold under securitization transactions | 8 |
Debt instrument, face amount | 8 |
Real Estate Loans | SLFMT 2013-2 | |
Variable Interest Entity [Line Items] | |
Proceeds from notes sold under securitization transactions | 158 |
Debt instrument, face amount | 149 |
Real Estate Loans | SLFMT 2013-3 | |
Variable Interest Entity [Line Items] | |
Proceeds from notes sold under securitization transactions | $ 23 |
Variable Interest Entities - Co
Variable Interest Entities - Conduit Facilities (Details) - Consolidated VIEs - USD ($) | Jun. 10, 2015 | Jun. 03, 2015 | May. 27, 2015 | Jan. 16, 2015 | Jan. 15, 2015 | Jun. 26, 2014 | Jun. 13, 2014 | Dec. 20, 2013 | Sep. 27, 2013 | Sep. 26, 2013 | Dec. 31, 2015 | Jan. 30, 2017 | Jan. 30, 2016 | Dec. 10, 2015 | Dec. 03, 2015 | Nov. 23, 2015 | Jul. 21, 2015 | Jul. 15, 2015 | Mar. 25, 2015 | Mar. 24, 2015 | Feb. 03, 2015 | Mar. 24, 2014 |
Midbrook 2013-VFN1 Securitization | Personal Loans | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 300,000,000 | $ 300,000,000 | ||||||||||||||||||||
Amounts funded at closing | $ 0 | |||||||||||||||||||||
Funding period | 1 year | |||||||||||||||||||||
Amount drawn | $ 0 | |||||||||||||||||||||
Midbrook 2013-VFN1 Securitization | Personal Loans | Consumer Loan Securitizations | Minimum [Member] | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Funding period including extended period | 1 year | |||||||||||||||||||||
Midbrook 2013-VFN1 Securitization | Personal Loans | Consumer Loan Securitizations | Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Funding period including extended period | 2 years | |||||||||||||||||||||
Springleaf 2013-VFN1 Securitization | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 350,000,000 | |||||||||||||||||||||
Funding period | 2 years | |||||||||||||||||||||
Amount drawn | 0 | |||||||||||||||||||||
Extended funding period | 1 year | |||||||||||||||||||||
Springleaf 2013-VFN1 Securitization | Personal Loans | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amounts funded at closing | $ 0 | |||||||||||||||||||||
Funding period | 2 years | |||||||||||||||||||||
Funding period including extended period | 3 years | |||||||||||||||||||||
Extended funding period | 1 year | |||||||||||||||||||||
Sumner Brook 2013-VFN1 Securitization | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 350,000,000 | |||||||||||||||||||||
Funding period | 3 years | 2 years | ||||||||||||||||||||
Amount drawn | $ 100,000,000 | |||||||||||||||||||||
Sumner Brook 2013-VFN1 Securitization | Personal Loans | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 350,000,000 | |||||||||||||||||||||
Amounts funded at closing | $ 0 | |||||||||||||||||||||
Funding period | 2 years | |||||||||||||||||||||
Funding period including extended period | 2 years | |||||||||||||||||||||
Whitford Brook Funding Trust2014 VFN1 | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amount drawn | $ 100,000,000 | |||||||||||||||||||||
Whitford Brook Funding Trust2014 VFN1 | Personal Loans | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 250,000,000 | $ 300,000,000 | $ 300,000,000 | |||||||||||||||||||
Funding period | 3 years | |||||||||||||||||||||
Amount drawn | 200,000,000 | $ 100,000,000 | ||||||||||||||||||||
Securitization required minimum balance | $ 100,000,000 | $ 100,000,000 | ||||||||||||||||||||
Amount paid under securitization | $ 100,000,000 | |||||||||||||||||||||
Mill River 2015 VFN1 | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 400,000,000 | |||||||||||||||||||||
Amounts funded at closing | $ 0 | |||||||||||||||||||||
Funding period | 3 years | |||||||||||||||||||||
Amount drawn | 400,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||||||||||||||
Second Avenue funding, LLC securitization | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 250,000,000 | |||||||||||||||||||||
Amounts funded at closing | $ 0 | 0 | ||||||||||||||||||||
Funding period | 3 years | |||||||||||||||||||||
Amount drawn | 250,000,000 | 250,000,000 | ||||||||||||||||||||
First Avenue Funding LLC 2015 | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 250,000,000 | |||||||||||||||||||||
Funding period | 2 years | |||||||||||||||||||||
First Avenue funding, LLC securitization | Consumer Loan Securitizations | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amount drawn | 250,000,000 | $ 250,000,000 | ||||||||||||||||||||
OneMain Financial Holdings, Inc. | Warehouse Agreement Borrowings | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Line of credit, remaining borrowing capacity | $ 3,000,000,000 | |||||||||||||||||||||
Amount outstanding under a statutory trust | $ 1,400,000,000 | |||||||||||||||||||||
OneMain Financial Holdings, Inc. | Warehouse Agreement Borrowings | Forecast | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
line of credit facility, remaining borrowing capacity, reduction | $ 1,000,000,000 | $ 500,000,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | |
Variable Interest Entities | |||||||||||
Interest expense | $ 215 | $ 171 | $ 171 | $ 158 | $ 157 | $ 180 | $ 192 | $ 205 | $ 715 | $ 734 | $ 920 |
Cost of mortgages sold | $ 6,400 | $ 18 | |||||||||
Reserve for sales recourse obligations | $ 23 | ||||||||||
Number of loans repurchased | loan | 13 | 9 | 20 | ||||||||
Real Estate Loans | Mortgage Loan Securitizations | |||||||||||
Variable Interest Entities | |||||||||||
Reserve for sales recourse obligations | $ 7 | ||||||||||
Number of loans repurchased | loan | 0 | ||||||||||
Consolidated VIEs | |||||||||||
Variable Interest Entities | |||||||||||
Interest expense | $ 216 | $ 214 | $ 224 | ||||||||
Consolidated VIEs | Real Estate Loans | Mortgage Loan Securitizations | |||||||||||
Variable Interest Entities | |||||||||||
Cost of mortgages sold | $ 5,200 |
Derivative Financial Instrum108
Derivative Financial Instruments (Details) $ in Millions | Aug. 05, 2013USD ($) | Dec. 31, 2013USD ($)instrument | Dec. 31, 2015instrument | Dec. 31, 2014instrument |
Fair value of derivative instruments | ||||
Number of derivative instruments | instrument | 0 | 0 | 0 | |
AIGFP | Cross currency interest rate | ||||
Fair value of derivative instruments | ||||
Loss recorded in other revenues - other on termination | $ 2 | |||
Other revenues - other | ||||
Fair value of derivative instruments | ||||
Net loss recognized on non-designated hedging instruments | $ 3 | |||
Other revenues - other | AIGFP | Affiliated Entity | Cross currency interest rate | ||||
Fair value of derivative instruments | ||||
Loss recorded in other revenues - other on termination | $ 2 |
Derivative Financial Instrum109
Derivative Financial Instruments - Change in Notional Amounts (Details 2) - AIGFP - Cross currency interest rate $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Fair value of derivative instruments | |
Notional amount, beginning of period | $ 417 |
Discontinued and terminated contracts | (417) |
Notional amount, end of period | $ 0 |
Derivative Financial Instrum110
Derivative Financial Instruments - Adjustment Included in Other Revenues (Details 3) $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Other revenues - other | |
Derivative adjustments included in other revenues - other | |
Net interest income | $ 9 |
Mark to market losses | (8) |
Other revenues - other | |
Derivative adjustments included in other revenues - other | |
Total | $ 1 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Insurance | |||
Payable to OMH | $ 662 | $ 217 | $ 172 |
Insurance claims and policyholder liabilities | 747 | 229 | |
unearned premium and claim reserves and liability of benefit reserves | 1,409 | 446 | |
Insurance claims and policyholder liabilities assumed from other insurers | 346 | 58 | |
Current tax receivable | 107 | 22 | |
Non Financial Guarantee Insurance Segment | |||
Insurance | |||
Unearned premiums | 91 | 0 | |
Benefit reserves | 388 | 75 | |
Claim reserves | 67 | 42 | |
Insurance claims and policyholder liabilities | 546 | 117 | |
Non-affiliated insurance companies | |||
Insurance | |||
Insurance claims and policyholder liabilities assumed from other insurers | 346 | 15 | |
Current tax receivable | 107 | 22 | |
Non-affiliated insurance companies | OneMain | |||
Insurance | |||
Current tax receivable | 85 | ||
Affiliated insurance companies | |||
Insurance | |||
Insurance claims and policyholder liabilities assumed from other insurers | 0 | 43 | |
Payable to OMH | Financial Guarantee Insurance Product Line | |||
Insurance | |||
Unearned premiums | 574 | 194 | |
Claim reserves | 88 | 23 | |
Payable to OMH | 662 | 217 | |
Third-Party Beneficiaries | Financial Guarantee Insurance Product Line | |||
Insurance | |||
Unearned premiums | 66 | 0 | |
Benefit reserves | 113 | 107 | |
Claim reserves | 22 | 5 | |
Insurance claims and policyholder liabilities | $ 201 | $ 112 |
Insurance - Change in Reserve f
Insurance - Change in Reserve for Unpaid Claims and Loss Adjustmnet Expenses (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | |||
Balance at beginning of period | $ 48 | $ 46 | $ 51 |
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition | 104 | 0 | 0 |
Additions for losses and loss adjustment expense incurred to: | |||
Current year | 83 | 65 | 59 |
Prior years | 5 | (3) | (6) |
Total | 88 | 62 | 53 |
Reductions for losses and loss adjustment expenses paid related to: | |||
Current year | (63) | (39) | (35) |
Prior years | (26) | (21) | (23) |
Total | (89) | (60) | (58) |
Balance at end of period | $ 151 | $ 48 | $ 46 |
Insurance - Statutory Informati
Insurance - Statutory Information (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Yosemite | Property and casualty | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ 15 | $ 16 | $ 41 |
Statutory capital and surplus | 76 | 108 | |
Triton Insurance Company | Property and casualty | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 3 | 0 | 0 |
Triton Insurance Company | Life and accident and health | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 181 | 0 | |
Merit Life Insurance Co. | Life and accident and health | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | (1) | (2) | 3 |
Statutory capital and surplus | 123 | 171 | |
American Health and Life Insurance Company | Life and accident and health | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 11 | 0 | $ 0 |
Statutory capital and surplus | $ 184 | $ 0 |
Insurance - Narrative Springlea
Insurance - Narrative Springleaf risk-based capital requirements (Details 4) - USD ($) $ in Millions | Jul. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Springleaf Insurance Subsidiaries [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practice, Period that the ordinary dividends can be paid without prior approval | 12 months | |||
Maximum Amount of Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus | 10.00% | |||
Statutory Accounting Practice, Period that the extraordinary dividends can be paid without prior approval | 12 months | |||
Maximum Amount of Extraordinary Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus | 10.00% | |||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 100 | $ 57 | $ 150 | |
Cash dividends from subsidiaries | $ 18 | |||
Commo Lo Co Inc [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Dividends Paid with Approval of Regulatory Agency | $ 58 | |||
Payment of approved extraordinary dividend as percentage of wholly owned subsidiary common stock | 100.00% |
Insurance Insurance - Narrative
Insurance Insurance - Narrative OneMain risk-based capital requirements (Details 5) - OneMain Insurance Subsidiaries [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Nov. 01, 2015 | |
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practice, Period that the ordinary dividends can be paid without prior approval | 12 months | |
Maximum Amount of Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus | 10.00% | |
Statutory Accounting Practice, Period that the extraordinary dividends can be paid without prior approval | 12 months | |
Maximum Amount of Extraordinary Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus | 10.00% | |
Cash dividends from subsidiaries | $ 68 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Other accrued expenses and accounts payable | $ 83 | $ 31 |
Salary and benefit liabilities | 75 | 36 |
Accrued interest on debt | 67 | 57 |
Retirement plans | 55 | 50 |
Loan principal warranty reserve | 15 | 24 |
Other insurance liabilities | 8 | 4 |
Bank overdrafts | 14 | 5 |
Other | 67 | 31 |
Total | $ 384 | $ 238 |
Capital Stock & Earnings (Lo117
Capital Stock & Earnings (Loss) Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2015item$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares | |
Earnings Per Share [Abstract] | |||
Number of classes of authorized capital stock | item | 2 | ||
Par value and shares authorized | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||
Preferred stock, shares authorized | 300,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | |
Preferred stock issued (in shares) | 0 | 0 | |
Preferred stock outstanding (in shares) | 0 | 0 | |
Common shares issued and outstanding | |||
Balance at beginning of period | 114,832,895 | 114,832,895 | 100,000,000 |
Sale of common shares | 19,661,277 | 0 | 14,832,895 |
Balance at end of period | 134,494,172 | 114,832,895 | 114,832,895 |
Capital Stock & Earnings (Lo118
Capital Stock & Earnings (Loss) Per Share - Equity Offering (Details) $ in Millions | May. 04, 2015USD ($)shares |
Schedule of Capitalization, Equity [Line Items] | |
Common Shares Offered in Secondary Offering | 27,864,525 |
Net Proceeds from Sale of Secondary offering | $ | $ 976 |
Secondary offering related expenses | $ | $ 24 |
OneMain Financial Holdings, LLC | |
Schedule of Capitalization, Equity [Line Items] | |
Common Shares Offered in Secondary Offering | 19,417,476 |
FA Loans | |
Schedule of Capitalization, Equity [Line Items] | |
Common Shares Offered in Secondary Offering | 8,447,049 |
Capital Stock & Earnings (Lo119
Capital Stock & Earnings (Loss) Per Share - Earnings (Loss) Per Share Computation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Net income (loss) attributable to OneMain Holdings, Inc. | $ (219) | $ (11) | $ (12) | $ 0 | $ (46) | $ 427 | $ 72 | $ 52 | $ (242) | $ 505 | $ (19) | |
Weighted average number of shares outstanding (basic) | 127,910,680 | 114,791,225 | 102,917,172 | |||||||||
Effect of dilutive securities | [1] | 0 | 473,898 | |||||||||
Weighted average number of shares outstanding (diluted) | 127,910,680 | 115,265,123 | 102,917,172 | |||||||||
Basic (in dollars per share) | $ (1.63) | $ (0.08) | $ (0.09) | $ 0 | $ (0.41) | $ 3.72 | $ 0.63 | $ 0.46 | $ (1.89) | $ 4.40 | $ (0.19) | |
Diluted (in dollars per share) | $ (1.63) | $ (0.08) | $ (0.09) | $ 0 | $ (0.41) | $ 3.70 | $ 0.63 | $ 0.45 | $ (1.89) | $ 4.38 | $ (0.19) | |
Antidilutive securities excluded from computation of EPS | 37,246 | |||||||||||
Performance Shares | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of EPS | 591,606 | 583,459 | ||||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Antidilutive securities excluded from computation of EPS | 489,653 | |||||||||||
[1] | We have excluded the following shares in the diluted earnings (loss) per share calculation for 2015, 2014, and 2013 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future:•2015: 591,606 performance shares and 489,653 service shares;•2014: 583,459 performance shares; and•2013: 37,246 nonvested shares. |
Accumulated Other Comprehens120
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | $ 3 | $ 28 | $ 27 |
Other comprehensive loss before reclassifications | (28) | (20) | 3 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (8) | (5) | (2) |
Balance at end of period | (33) | 3 | 28 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 12 | 4 | 14 |
Other comprehensive loss before reclassifications | (18) | 13 | (8) |
Reclassification adjustments from accumulated other comprehensive income (loss) | (8) | (5) | (2) |
Balance at end of period | (14) | 12 | 4 |
Retirement Plan Liabilities Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (13) | 20 | 8 |
Other comprehensive loss before reclassifications | (6) | (33) | 12 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Balance at end of period | (19) | (13) | 20 |
Foreign Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 4 | 4 | 5 |
Other comprehensive loss before reclassifications | (4) | 0 | (1) |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Balance at end of period | $ 0 | $ 4 | $ 4 |
Accumulated Other Comprehens121
Accumulated Other Comprehensive Income - Reclassification Adjustments From Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | $ (52) | $ (39) | $ (35) | ||||||||
Income tax effect | $ 148 | $ (2) | $ 8 | $ (7) | $ 13 | $ (235) | $ (44) | $ (31) | 147 | (297) | 16 |
Unrealized gains (losses) on investment securities | Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | (12) | (8) | (3) | ||||||||
Income tax effect | (4) | (3) | (1) | ||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 8 | $ 5 | $ 2 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | Nov. 15, 2015 | Oct. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income taxes | |||||
Cash consideration | $ 3,902 | $ 0 | $ 0 | ||
Variance from federal statutory rate due to income (loss) from non-controlling interests, perecent | 15.52% | (3.98%) | (51.01%) | ||
Reserve for payment of tax obligation, interest and penatly | $ 7 | $ 1 | $ 1 | ||
Increases in tax positions for current years | 10 | 0 | $ 0 | ||
Net deferred tax assets | 119 | ||||
Net deferred tax liabilities | 148 | ||||
Deferred tax assets, net of valuation allowance, increase | 267 | ||||
Deferred tax assets, increase due to allowance for loan loss reserves | 127 | ||||
Deferred tax assets, capital loss carryforwards, increase | 27 | ||||
Deferred tax liabilities, debt write-down, decrease | 44 | ||||
Deferred tax liabilities, mark to market, decrease | 30 | ||||
Valuation allowance | 38 | 44 | |||
Federal operating loss carryforward | 78 | ||||
Net current federal and foreign income tax payable | 19 | 96 | |||
Current tax receivable | 20 | 103 | |||
United Kingdom operations | |||||
Income taxes | |||||
Foreign net operating loss carryforward from United Kingdom operations | 13 | 15 | |||
Puerto Rico operations | |||||
Income taxes | |||||
Foreign net operating loss carryforward from United Kingdom operations | 2 | 2 | |||
United Kingdom and Puerto Rico operations [Member] | |||||
Income taxes | |||||
Valuation allowance | 16 | 18 | |||
State | |||||
Income taxes | |||||
Valuation allowance | 22 | 26 | |||
State operating loss carryforward | 556 | 500 | |||
Current tax receivable | 20 | $ 7 | |||
OneMain | |||||
Income taxes | |||||
Increases in tax positions for current years | 6 | ||||
OneMain | |||||
Income taxes | |||||
Cash consideration | $ 4,500 | $ 4,478 | |||
Goodwill acquired that is deductible for tax purposes | 1,400 | ||||
Benefit from for income taxes for acquisition-related costs | $ 6 |
Income Taxes - Components of in
Income Taxes - Components of income (loss) before provision for (benefit from) income taxes (Details 1) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) before provision for (benefit from) income taxes - U.S. operations | $ (281) | $ 903 | $ 82 | ||||||||
Income (loss) before provision for (benefit from) income taxes - foreign operations | 12 | 2 | (4) | ||||||||
Income (loss) before provision for (benefit from) income taxes | $ (340) | $ 22 | $ 11 | $ 38 | $ (38) | $ 697 | $ 147 | $ 99 | $ (269) | $ 905 | $ 78 |
Income Taxes - Components of pr
Income Taxes - Components of provision for (benefit from) income taxes (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||||||||||
Federal | $ 59 | $ 257 | $ 96 | ||||||||
Foreign | 1 | 0 | 1 | ||||||||
State | 5 | 20 | 6 | ||||||||
Total current | 65 | 277 | 103 | ||||||||
Deferred: | |||||||||||
Federal | (180) | 19 | (107) | ||||||||
Foreign | 0 | 0 | 1 | ||||||||
State | (32) | 1 | (13) | ||||||||
Deferred income tax charge (benefit) | (212) | 20 | (119) | ||||||||
Provision for (benefit from) income taxes | $ (148) | $ 2 | $ (8) | $ 7 | $ (13) | $ 235 | $ 44 | $ 31 | $ (147) | $ 297 | $ (16) |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of the statutory federal income tax rate to the effective tax rate (Details 3) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Non-controlling interests | 15.52% | (3.98%) | (51.01%) |
State income taxes, net of federal | 6.41% | 1.49% | (5.55%) |
Foreign operations | 0.00% | 0.38% | 4.69% |
Interest and penalties on prior year tax returns | 0.00% | (0.10%) | 7.67% |
Nontaxable investment income | 0.17% | (0.10%) | (1.94%) |
Change in tax status | 0.00% | (14.64%) | |
Nondeductible compensation | (2.01%) | 3.49% | |
Other, net | (0.50%) | 0.15% | 1.42% |
Effective income tax rate | 54.59% | 32.84% | (20.87%) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of gross unrecognized tax obligation (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 4 | $ 2 | $ 2 |
Increases in tax positions for prior years | 4 | 3 | 0 |
Decreases in tax positions for prior years | (2) | 0 | 0 |
Increases in tax positions for current years | 10 | 0 | 0 |
Lapse in statute of limitations | 0 | (1) | 0 |
Settlements with tax authorities | (1) | 0 | 0 |
Balance at end of year | $ 15 | $ 4 | $ 2 |
Income Taxes - Components of de
Income Taxes - Components of deferred tax assets and liabilities (Details 5) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for loan losses | $ 221 | $ 80 |
State taxes, net of federal | 42 | 22 |
Pension/employee benefits | 37 | 26 |
Joint venture | 27 | 12 |
Capital loss carryforward | 27 | 0 |
Net operating losses and tax attributes | 16 | 19 |
Deferred insurance commissions | 12 | 3 |
Acquisition costs | 10 | 0 |
Legal and warranty reserve | 6 | 10 |
Payment protection insurance liability | 2 | 5 |
Other | 19 | 5 |
Total | 419 | 182 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Debt writedown | 121 | 194 |
Impact of tax accounting method change | 76 | 0 |
Discount - debt exchange | 20 | 23 |
Mark-to-market | 17 | 47 |
Other intangible assets | 12 | 7 |
Insurance reserves | 11 | 10 |
Goodwill | 5 | 0 |
Other | 0 | 5 |
Total | 262 | 286 |
Net deferred tax assets (liabilities) before valuation allowance | (157) | 104 |
Valuation allowance | (38) | (44) |
Net deferred tax assets (liabilities) | $ 119 | |
Net deferred tax assets (liabilities) | $ 148 |
Lease Commitments, Rent Expe128
Lease Commitments, Rent Expense, and Contingent Liabilities (Details) $ in Millions | Dec. 31, 2015USD ($) |
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases | |
First quarter 2016 | $ 17 |
Second quarter 2016 | 17 |
Third quarter 2016 | 16 |
Fourth quarter 2016 | 15 |
2,016 | 65 |
2,017 | 48 |
2,018 | 32 |
2,019 | 20 |
2,020 | 12 |
2021 and thereafter | 21 |
Total | $ 198 |
Lease Commitments, Rent Expe129
Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Balance at beginning of period | $ 24 | $ 5 | $ 5 |
Recourse losses | (2) | 0 | 0 |
Provision for recourse obligations, net of recoveries | (7) | 19 | 0 |
Balance at end of period | $ 15 | $ 24 | $ 5 |
Lease Commitments, Rent Expe130
Lease Commitments, Rent Expense, and Contingent Liabilities Narrative (Details) request in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($)loanrequest | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($)loan | Dec. 31, 2012USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental Expense | $ 39 | $ 30 | $ 30 | |
Reserve for sales recourse obligations | 23 | |||
Finance Receivables Reserve for Sales Recourse Obligations | $ 15 | $ 24 | $ 5 | $ 5 |
Number of loans repurchased | loan | 13 | 9 | 20 | |
Payments for repurchase of loans | $ 1 | $ 1 | $ 3 | |
Number of Material Recourse Requests | request | 0 | |||
Estimated PPI claims reserve | $ 6 | $ 14 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Springleaf Financial Services Pension Plan | ||
Benefit Plans | ||
Minimum eligibility age to participate in the plan | 21 years | |
Continuous service period required to participate in the plan | 12 months | |
Vesting period | 5 years | |
Normal retirement age | 65 years | |
Maximum credited service period | 44 years | |
CommoLoCo Pension Plan | ||
Benefit Plans | ||
Minimum eligibility age to participate in the plan | 21 years | |
Continuous service period required to participate in the plan | 1 year | |
Springleaf Retiree Medical and Life Insurance Plan | ||
Benefit Plans | ||
Minimum eligibility age to participate in the plan | 55 years | |
Continuous service period required to participate in the plan | 10 years | |
Settlement loss (gain) | $ (4) | |
Curtailment gain | $ (2) | |
CommoLoCo Retiree Life Insurance Plan | ||
Benefit Plans | ||
Minimum eligibility age to participate in the plan | 55 years | |
Continuous service period required to participate in the plan | 10 years |
Benefit Plans - 401(K) Plans (D
Benefit Plans - 401(K) Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Springleaf Financial Services 401(k) Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | 100.00% | 100.00% |
Percentage of employee salary eligible for employer matching contribution | 4.00% | 4.00% | 4.00% |
Maximum employer discretionary profit sharing contribution as percentage of annual pay | 4.00% | ||
Salaries and benefit expense related to plan | $ 20 | $ 16 | $ 9 |
CommoLoCo Thrift Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | ||
Percentage of employee salary eligible for employer matching contribution | 3.00% | ||
Employer's match of employees' contributions of the next 3% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 3.00% |
Benefit Plans - Obligations and
Benefit Plans - Obligations and Funded Status (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair value of plan assets | |||
Balance at the beginning of the period | $ 359 | ||
Balance at the end of the period | 333 | $ 359 | |
Pension Plan | |||
Projected benefit obligation | |||
Balance at the beginning of the period | 409 | 323 | $ 368 |
Interest cost | 15 | 15 | 14 |
Actuarial loss (gain) | (24) | 83 | (47) |
Benefits paid: Plan assets | (12) | (12) | (12) |
Curtailment | 0 | 0 | 0 |
Balance at the end of the period | 388 | 409 | 323 |
Fair value of plan assets | |||
Balance at the beginning of the period | 359 | 317 | 347 |
Actual return of plan assets, net of expenses | (15) | 54 | (18) |
Company contributions | 1 | 0 | 0 |
Benefits paid: Plan assets | (12) | (12) | (12) |
Balance at the end of the period | 333 | 359 | 317 |
Funded status, end of period | (55) | (50) | (6) |
Net amounts recognized in the consolidated balance sheet: | |||
Noncurrent assets | 0 | 0 | 7 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | (55) | (50) | (13) |
Total amounts recognized | (55) | (50) | (6) |
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Total amounts recognized | 29 | (19) | 26 |
Projected benefit obligation of non-qualified unfunded plans | 10 | 10 | |
Accumulated benefit obligation | 388 | 409 | |
Postretirement | |||
Projected benefit obligation | |||
Balance at the beginning of the period | $ 0 | 2 | 7 |
Interest cost | 0 | 0 | |
Actuarial loss (gain) | 0 | (5) | |
Curtailment | (2) | 0 | |
Balance at the end of the period | 0 | 2 | |
Fair value of plan assets | |||
Company contributions | 0 | 0 | |
Funded status, end of period | 0 | (2) | |
Net amounts recognized in the consolidated balance sheet: | |||
Noncurrent assets | 0 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 0 | (2) | |
Total amounts recognized | 0 | (2) | |
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Total amounts recognized | $ 0 | $ 4 |
Benefit Plans - PBO and Net Per
Benefit Plans - PBO and Net Periodic Benefit Cost (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Total recognized in other comprehensive income or loss | $ 9 | $ 50 | $ (18) |
Pension Plan | |||
PBO Exceeds Fair Value of Plan Assets | |||
Projected benefit obligation | 388 | 409 | |
Accumulated benefit obligation | 388 | 409 | |
Fair value of plan assets | 333 | 359 | |
Components of net periodic benefit cost: | |||
Service cost | 0 | 0 | |
Interest cost | 15 | 15 | 14 |
Expected return on assets | (19) | (16) | (15) |
Curtailment gain | 0 | 0 | |
Settlement loss (gain) | 0 | 0 | |
Net periodic benefit cost | (4) | (1) | (1) |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | 9 | 46 | (13) |
Net settlement gain (loss) | 0 | 0 | |
Total recognized in other comprehensive income or loss | 9 | 46 | (13) |
Total recognized in net periodic benefit cost and other comprehensive income or loss | 5 | 45 | (14) |
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | |||
Estimated net loss | 1 | ||
Estimated prior service credit | 0 | ||
Postretirement | |||
Components of net periodic benefit cost: | |||
Service cost | 0 | 1 | |
Interest cost | 0 | 0 | |
Curtailment gain | (2) | 0 | |
Settlement loss (gain) | (4) | ||
Net periodic benefit cost | (6) | 1 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | 0 | (5) | |
Net settlement gain (loss) | 4 | ||
Total recognized in other comprehensive income or loss | 4 | (5) | |
Total recognized in net periodic benefit cost and other comprehensive income or loss | $ (2) | $ (4) | |
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | |||
Estimated net loss and prior service credit | $ 0 |
Benefit Plans - Assumptions and
Benefit Plans - Assumptions and Future Expected Benefit Payments (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed income securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 90.00% | |
Target asset allocation (as a percent) | 88.00% | |
Equity securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 9.00% | |
Target asset allocation (as a percent) | 12.00% | |
Cash and cash equivalents | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 1.00% | |
Pension Plan | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 4.26% | 3.89% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 3.89% | 4.83% |
Expected return on assets (as a percent) | 5.27% | 5.29% |
Rate of compensation increase (as a percent) | 0.00% | |
Expected future benefit payments, net of participants' contribution | ||
2,016 | $ 15 | |
2,017 | 15 | |
2,018 | 15 | |
2,019 | 15 | |
2,020 | 16 | |
2021-2025 | $ 89 | |
Postretirement | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 3.45% | 3.80% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 3.80% | 3.80% |
Springleaf Financial Services Pension Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.30% | |
CommoLoCo Pension Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.70% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Plan Assets (Details 6) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Benefit Plans | ||
Total fair value of plan assets | $ 333 | $ 359 |
Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 2 |
Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 330 | 357 |
Cash and cash equivalents | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 2 |
Cash and cash equivalents | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 2 |
Equity securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 16 | 19 |
Equity securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 16 | 19 |
Equity securities | International | ||
Benefit Plans | ||
Total fair value of plan assets | 15 | 1 |
Equity securities | International | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 15 | 1 |
Investment Grade Securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 291 | 335 |
Investment Grade Securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 291 | 335 |
High Yield Securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 8 | 2 |
High Yield Securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | $ 8 | $ 2 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance, beginning of period | 1,352,865 | |
Granted | 1,115,662 | |
Vested | (384,902) | |
Forfeited | (74,201) | |
Balance, end of period | 2,009,424 | 1,352,865 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested, beginning of period (in dollars per share) | $ 17.91 | |
Granted during the period (in dollars per share) | 47.44 | |
Vested (in dollars per share) | 18.45 | |
Forfeited (in dollars per share) | 24.65 | |
Unvested, end of period (in dollars per share) | $ 33.95 | $ 17.91 |
Weighted average remaining term | 2 years 10 months 28 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Balance, beginning of period | 583,459 | |
Granted | 16,091 | |
Vested | 0 | 0 |
Forfeited | (18,437) | |
Balance, end of period | 581,113 | 583,459 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested, beginning of period (in dollars per share) | $ 25.84 | |
Granted during the period (in dollars per share) | 34.45 | $ 25.78 |
Forfeited (in dollars per share) | 35.05 | |
Unvested, end of period (in dollars per share) | $ 25.79 | $ 25.84 |
Weighted average remaining term | 2 years 7 months 2 days |
Share-Based Compensation Narrat
Share-Based Compensation Narrative (Details) | Oct. 08, 2013shares | Sep. 30, 2013USD ($)employeeshares | Jun. 30, 2015USD ($) | Dec. 31, 2013USD ($)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | Oct. 31, 2013$ / shares | Oct. 09, 2013 |
SHARE-BASED COMPENSATION | |||||||||
Vesting period of award with rights | 2 years | ||||||||
Performance Targets, Probability of occurring | 100.00% | ||||||||
Total income tax benefit recognized for stock-based compensation | $ | $ 6,000,000 | $ 2,000,000 | $ 51,000,000 | ||||||
Unrecognized compensation expense | $ | $ 57,000,000 | ||||||||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 2 years 11 months | ||||||||
Restricted Stock Units | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Vesting period of award without rights | 4 years 2 months 12 days | ||||||||
Granted during the period (in dollars per share) | $ / shares | $ 47.44 | ||||||||
Vested | shares | 384,902 | ||||||||
Share-based compensation expense | $ | $ 15,000,000 | $ 6,000,000 | $ 146,000,000 | ||||||
Granted | shares | 1,115,662 | ||||||||
Unvested balance (in dollars per share) | $ / shares | $ 33.95 | $ 17.91 | |||||||
Weighted average remaining term | 2 years 10 months 28 days | ||||||||
Restricted Stock Units | Springleaf Holdings, LLC | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share-based compensation expense | $ | $ 145,000,000 | ||||||||
Percentage of outstanding shares into which equity awards are converted to rights | 8.20313% | ||||||||
Shares delivered to holders of the award | shares | 8,203,125 | ||||||||
Unvested balance (in dollars per share) | $ / shares | $ 16 | ||||||||
Period within which equity awards cannot be sold or transferred | 5 years | ||||||||
Restricted Stock Units | Executives | Springleaf Holdings, LLC | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share-based compensation expense | $ | $ 131,000,000 | ||||||||
Number of executives to whom share-based awards granted | employee | 2 | ||||||||
Granted | shares | 8.203125 | ||||||||
Reductions to awards during the period (in shares) | shares | 0.859375 | ||||||||
Restricted Stock Units | Management | Springleaf Holdings, LLC | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Additional compensation expense | $ | $ 14,000,000 | ||||||||
Restricted Stock | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Vesting period of award with rights | 3 years | ||||||||
Service-Based Awards | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Granted during the period (in dollars per share) | $ / shares | $ 47.44 | $ 25.65 | $ 17 | ||||||
Fair value of service based awards vested in period | $ | $ 7,000,000 | $ 1,000,000 | |||||||
Vested | shares | 0 | ||||||||
Performance Shares | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Granted during the period (in dollars per share) | $ / shares | $ 34.45 | $ 25.78 | |||||||
Vested | shares | 0 | 0 | |||||||
Share-based compensation expense | $ | $ 6,000,000 | ||||||||
Granted | shares | 16,091 | ||||||||
Unvested balance (in dollars per share) | $ / shares | $ 25.79 | $ 25.84 | |||||||
Weighted average remaining term | 2 years 7 months 2 days | ||||||||
Incentive Units | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share-based compensation expense | $ | $ 15,000,000 | $ 0 | $ 0 | ||||||
Omnibus Incentive Plan | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Number of shares of common stock authorized | shares | 11,105,064 | 11,105,064 | |||||||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted | 10.00% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015USD ($)state | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)statesegmentdivision | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 03, 2014 | |
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | $ 402 | $ 204 | $ 207 | $ 174 | $ 172 | $ 190 | $ 171 | $ 168 | $ 987 | $ 701 | $ 782 | |
Number of business segments | segment | 3 | |||||||||||
Number of states in which branch operations are conducted | state | 43 | 43 | ||||||||||
Number of states with legacy operation where branch based personal lending ceased | state | 14 | |||||||||||
Interest income | $ 684 | 428 | 413 | 406 | 413 | 484 | 533 | 552 | $ 1,931 | 1,982 | 2,154 | |
Interest expense | 215 | 171 | 171 | 158 | 157 | 180 | 192 | 205 | 715 | 734 | 920 | |
Provision for finance receivable losses | 510 | 82 | 80 | 87 | 95 | 103 | 115 | 161 | 759 | 474 | 527 | |
Net interest income after provision for finance receivable losses | 457 | 774 | 707 | |||||||||
Other revenues | 103 | 51 | 56 | 51 | (27) | 686 | 92 | 81 | 261 | 832 | 153 | |
Acquisition-related transaction and integration expenses | 62 | 0 | 0 | |||||||||
Other expenses | 925 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | (340) | $ 22 | $ 11 | $ 38 | (38) | $ 697 | $ 147 | $ 99 | (269) | 905 | 78 | |
Income before provision for income taxes attributable to non-controlling interests | 120 | 103 | 113 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | (389) | 802 | (35) | |||||||||
Assets | 21,056 | 10,812 | 21,056 | 10,812 | 15,176 | |||||||
Debt issuance cost | 30 | |||||||||||
Loan and lease receivable, deferred income | $ 662 | 217 | $ 662 | 217 | 172 | |||||||
Consumer and Insurance Segment | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Number of operating segments | division | 2 | |||||||||||
Consumer | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Number of states in which branch operations are conducted | state | 43 | 43 | ||||||||||
Operating segments | Consumer and Insurance Segment | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | 537 | 452 | ||||||||||
Interest income | $ 1,482 | 916 | 722 | |||||||||
Interest expense | 242 | 164 | 149 | |||||||||
Provision for finance receivable losses | 351 | 202 | 117 | |||||||||
Net interest income after provision for finance receivable losses | 889 | 550 | 456 | |||||||||
Other revenues | 276 | 215 | 197 | |||||||||
Acquisition-related transaction and integration expenses | 16 | |||||||||||
Other expenses | 804 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | 345 | 228 | 201 | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | 345 | 228 | 201 | |||||||||
Assets | $ 16,050 | 4,165 | 16,050 | 4,165 | 3,938 | |||||||
Operating segments | Acquisitions and Servicing | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | 123 | 97 | ||||||||||
Interest income | 470 | 550 | 489 | |||||||||
Interest expense | 87 | 82 | 72 | |||||||||
Provision for finance receivable losses | 90 | 152 | 133 | |||||||||
Net interest income after provision for finance receivable losses | 293 | 316 | 284 | |||||||||
Other revenues | 58 | 36 | 36 | |||||||||
Acquisition-related transaction and integration expenses | 1 | |||||||||||
Other expenses | 111 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | 239 | 229 | 223 | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 120 | 103 | 113 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | 119 | 126 | 110 | |||||||||
Assets | 1,663 | 2,434 | 1,663 | 2,434 | 2,702 | |||||||
Operating segments | Real Estate Loans | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | 93 | 83 | ||||||||||
Interest income | 68 | 406 | 698 | |||||||||
Interest expense | 212 | 353 | 546 | |||||||||
Provision for finance receivable losses | (2) | 128 | 255 | |||||||||
Net interest income after provision for finance receivable losses | (142) | (75) | (103) | |||||||||
Other revenues | 3 | 154 | 7 | |||||||||
Acquisition-related transaction and integration expenses | 1 | |||||||||||
Other expenses | 33 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | (173) | (14) | (179) | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | (173) | (14) | (179) | |||||||||
Assets | 711 | 4,116 | $ 711 | 4,116 | 8,623 | |||||||
Other | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | 11 | 178 | ||||||||||
Number of states with legacy operation where branch based personal lending ceased | state | 14 | |||||||||||
Interest income | $ 8 | 17 | 45 | |||||||||
Interest expense | 56 | 8 | 15 | |||||||||
Provision for finance receivable losses | 1 | 7 | 0 | |||||||||
Net interest income after provision for finance receivable losses | (49) | 2 | 30 | |||||||||
Other revenues | 0 | 1 | (2) | |||||||||
Acquisition-related transaction and integration expenses | 47 | |||||||||||
Other expenses | 15 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | (111) | (8) | (150) | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | (111) | (8) | (150) | |||||||||
Assets | 362 | 441 | 362 | 441 | 520 | |||||||
Eliminations | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | (66) | (31) | ||||||||||
Interest income | 0 | 0 | 0 | |||||||||
Interest expense | (5) | (5) | 0 | |||||||||
Provision for finance receivable losses | 0 | 0 | 0 | |||||||||
Net interest income after provision for finance receivable losses | 5 | 5 | 0 | |||||||||
Other revenues | (57) | (71) | (31) | |||||||||
Acquisition-related transaction and integration expenses | 0 | |||||||||||
Other expenses | (52) | |||||||||||
Income (loss) before provision for (benefit from) income taxes | 0 | 0 | ||||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | 0 | 0 | 0 | |||||||||
Assets | 0 | (363) | 0 | (363) | 0 | |||||||
Push-down Accounting Adjustments | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Other expenses | 3 | 3 | ||||||||||
Interest income | (97) | 93 | 200 | |||||||||
Interest expense | 123 | 132 | 138 | |||||||||
Provision for finance receivable losses | 319 | (15) | 22 | |||||||||
Net interest income after provision for finance receivable losses | (539) | (24) | 40 | |||||||||
Other revenues | (19) | 497 | (54) | |||||||||
Acquisition-related transaction and integration expenses | (3) | |||||||||||
Other expenses | 14 | |||||||||||
Income (loss) before provision for (benefit from) income taxes | (569) | 470 | (17) | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to OneMain Holdings, Inc. | (569) | 470 | (17) | |||||||||
Assets | $ 2,270 | $ 19 | $ 2,270 | 19 | (607) | |||||||
Corporate Joint Venture | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Ownership percentage | 47.00% | 47.00% | 47.00% | |||||||||
OneMain | Operating segments | Consumer | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Assets | $ 11,200 | $ 11,200 | ||||||||||
Adjustments for New Accounting Principle, Early Adoption [Member] | ||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||||||||
Debt issuance cost | $ 29 | $ 55 |
Segment Information - Allocatio
Segment Information - Allocation of Segment Revenues and Expenses (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | 16 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | Oct. 31, 2015 | |
Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 100.00% | 100.00% | |
Consumer and Insurance Segment | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in interest expense if debt allocation was in effect at beginning of year | $ 208 | ||
Real Estate Loans | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in interest expense if debt allocation was in effect at beginning of year | (157) | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Increase (decrease) in interest expense if debt allocation was in effect at beginning of year | (51) | ||
Minimum [Member] | Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 83.00% | ||
Maximum | Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 100.00% | ||
Acquired finance receivables from OneMain | |||
Segment Reporting Information [Line Items] | |||
Loan loss provision | $ 364 | ||
Total Average Unsecured Debt Allocation | Consumer and Insurance Segment | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 100.00% | ||
Total Average Unsecured Debt Allocation | Minimum [Member] | Consumer and Insurance Segment | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 83.00% | ||
Total Average Unsecured Debt Allocation | Maximum | Consumer and Insurance Segment | |||
Segment Reporting Information [Line Items] | |||
Average unsecured debt allocation | 100.00% |
Fair Value Measurements- FV & C
Fair Value Measurements- FV & CV Hierarchy Table (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 165 | |
Investment securities | $ 1,867 | 2,935 |
Restricted cash | 676 | 218 |
Other assets: | ||
Escrow advance receivable | 11 | 8 |
Liabilities | ||
Long-term debt | 17,300 | 8,356 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 939 | 714 |
Investment securities | 36 | 0 |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 |
Restricted cash | 676 | 218 |
Other assets: | ||
Commercial mortgage loans | 0 | 0 |
Escrow advance receivable | 0 | 0 |
Receivables related to sales of real estate loans and related trust assets | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 165 |
Investment securities | 1,829 | 2,926 |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 |
Loans Held-for-sale, Fair Value Disclosure | 0 | 0 |
Restricted cash | 0 | 0 |
Other assets: | ||
Commercial mortgage loans | 0 | 0 |
Escrow advance receivable | 0 | 0 |
Receivables related to sales of real estate loans and related trust assets | 1 | 67 |
Liabilities | ||
Long-term debt | 17,616 | 9,182 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 2 | 9 |
Net finance receivables, less allowance for finance receivable losses | 15,943 | 6,979 |
Loans Held-for-sale, Fair Value Disclosure | 819 | 209 |
Restricted cash | 0 | 0 |
Other assets: | ||
Commercial mortgage loans | 62 | 78 |
Escrow advance receivable | 8 | |
Receivables related to sales of real estate loans and related trust assets | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Total Fair Value | ||
Assets | ||
Cash and cash equivalents | 939 | 879 |
Investment securities | 1,867 | 2,935 |
Net finance receivables, less allowance for finance receivable losses | 15,943 | 6,979 |
Loans Held-for-sale, Fair Value Disclosure | 819 | 209 |
Restricted cash | 676 | 218 |
Other assets: | ||
Commercial mortgage loans | 62 | 78 |
Escrow advance receivable | 11 | 8 |
Receivables related to sales of real estate loans and related trust assets | 1 | 67 |
Liabilities | ||
Long-term debt | 17,616 | 9,182 |
Total Carrying Value | ||
Assets | ||
Cash and cash equivalents | 939 | 879 |
Investment securities | 1,867 | 2,935 |
Net finance receivables, less allowance for finance receivable losses | 14,803 | 6,307 |
Loans Held-for-sale, Fair Value Disclosure | 796 | 205 |
Restricted cash | 676 | 218 |
Other assets: | ||
Commercial mortgage loans | 62 | 85 |
Escrow advance receivable | 11 | 8 |
Receivables related to sales of real estate loans and related trust assets | 5 | 79 |
Liabilities | ||
Long-term debt | $ 17,300 | $ 8,356 |
Fair Value Measurements - Hiera
Fair Value Measurements - Hierarchy - Recurring Basis (Details 2) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 165,000,000 | |
Available-for-sale securities | $ 1,729,000,000 | 604,000,000 |
Trading securities | 137,000,000 | 2,330,000,000 |
Preferred stock | 6,000,000 | 0 |
Investment securities | 1,867,000,000 | 2,935,000,000 |
Other trading securities | 128,000,000 | 5,000,000 |
Transfer from Level 1 Assets to Level 2 | 0 | 0 |
Transfer from Level 2 Assets to Level 1 | 0 | 0 |
Transfer from Level 1 Liabilities to Level 2 | 0 | 0 |
Transfers from Level 2 Liabilities to Level 1 | 0 | 0 |
Bonds | ||
Assets | ||
Available-for-sale securities | 1,691,000,000 | 596,000,000 |
Trading securities | 131,000,000 | |
U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 111,000,000 | 64,000,000 |
Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 140,000,000 | 102,000,000 |
Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 3,000,000 | |
Corporate debt | ||
Assets | ||
Available-for-sale securities | 999,000,000 | 267,000,000 |
Residential mortgage-backed securities (“RMBS”) | ||
Assets | ||
Available-for-sale securities | 128,000,000 | 73,000,000 |
Commercial mortgage-backed securities (“CMBS”) | ||
Assets | ||
Available-for-sale securities | 116,000,000 | 24,000,000 |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | ||
Assets | ||
Available-for-sale securities | 71,000,000 | 63,000,000 |
Preferred stock | ||
Assets | ||
Available-for-sale securities | 13,000,000 | 7,000,000 |
Common Stock | ||
Assets | ||
Available-for-sale securities | 23,000,000 | |
Other long-term investments | ||
Assets | ||
Available-for-sale securities | 2,000,000 | 1,000,000 |
Level 1 | ||
Assets | ||
Cash and cash equivalents | 939,000,000 | 714,000,000 |
Investment securities | 36,000,000 | 0 |
Level 2 | ||
Assets | ||
Cash and cash equivalents | 0 | 165,000,000 |
Investment securities | 1,829,000,000 | 2,926,000,000 |
Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 2,000,000 | 9,000,000 |
Recurring basis | ||
Assets | ||
Cash and cash equivalents in mutual funds | 240,000,000 | 236,000,000 |
Cash and cash equivalents | 165,000,000 | |
Available-for-sale securities | 1,729,000,000 | 604,000,000 |
Trading securities | 137,000,000 | 2,330,000,000 |
Investment securities | 1,866,000,000 | 2,934,000,000 |
Restricted cash in mutual funds | 277,000,000 | 207,000,000 |
Total | 2,383,000,000 | 3,542,000,000 |
Other trading securities | 128,000,000 | 5,000,000 |
Recurring basis | Bonds | ||
Assets | ||
Available-for-sale securities | 596,000,000 | |
Recurring basis | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 111,000,000 | 64,000,000 |
Trading securities | 303,000,000 | |
Recurring basis | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 140,000,000 | 102,000,000 |
Trading securities | 14,000,000 | |
Recurring basis | Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 3,000,000 | |
Trading securities | 238,000,000 | |
Recurring basis | Non-US government and government sponsored entities [Member] | ||
Assets | ||
Available-for-sale securities | 126,000,000 | |
Trading securities | 3,000,000 | 20,000,000 |
Recurring basis | Corporate debt | ||
Assets | ||
Available-for-sale securities | 999,000,000 | 267,000,000 |
Trading securities | 124,000,000 | 1,056,000,000 |
Recurring basis | Residential mortgage-backed securities (“RMBS”) | ||
Assets | ||
Available-for-sale securities | 128,000,000 | 73,000,000 |
Trading securities | 2,000,000 | 36,000,000 |
Recurring basis | Commercial mortgage-backed securities (“CMBS”) | ||
Assets | ||
Available-for-sale securities | 116,000,000 | 24,000,000 |
Trading securities | 2,000,000 | 151,000,000 |
Recurring basis | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | ||
Assets | ||
Available-for-sale securities | 71,000,000 | 63,000,000 |
Trading securities | 512,000,000 | |
Recurring basis | Preferred stock | ||
Assets | ||
Available-for-sale securities | 13,000,000 | 7,000,000 |
Preferred stock | 6,000,000 | |
Recurring basis | Common Stock | ||
Assets | ||
Available-for-sale securities | 23,000,000 | |
Recurring basis | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 2,000,000 | 1,000,000 |
Recurring basis | Level 1 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 240,000,000 | 236,000,000 |
Cash and cash equivalents | 0 | |
Available-for-sale securities | 29,000,000 | 0 |
Trading securities | 6,000,000 | 0 |
Investment securities | 35,000,000 | 0 |
Restricted cash in mutual funds | 277,000,000 | 207,000,000 |
Total | 552,000,000 | 443,000,000 |
Recurring basis | Level 1 | Bonds | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 1 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Non-US government and government sponsored entities [Member] | ||
Assets | ||
Trading securities | 0 | |
Recurring basis | Level 1 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Residential mortgage-backed securities (“RMBS”) | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Commercial mortgage-backed securities (“CMBS”) | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 1 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 6,000,000 | 0 |
Preferred stock | 6,000,000 | |
Recurring basis | Level 1 | Common Stock | ||
Assets | ||
Available-for-sale securities | 23,000,000 | |
Recurring basis | Level 1 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 2 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Cash and cash equivalents | 165,000,000 | |
Available-for-sale securities | 1,698,000,000 | 596,000,000 |
Trading securities | 131,000,000 | 2,330,000,000 |
Investment securities | 1,829,000,000 | 2,926,000,000 |
Restricted cash in mutual funds | 0 | |
Total | 1,829,000,000 | 3,091,000,000 |
Recurring basis | Level 2 | Bonds | ||
Assets | ||
Available-for-sale securities | 1,691,000,000 | 589,000,000 |
Trading securities | 131,000,000 | |
Recurring basis | Level 2 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 111,000,000 | 64,000,000 |
Trading securities | 303,000,000 | |
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 140,000,000 | 102,000,000 |
Trading securities | 14,000,000 | |
Recurring basis | Level 2 | Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 3,000,000 | |
Trading securities | 238,000,000 | |
Recurring basis | Level 2 | Non-US government and government sponsored entities [Member] | ||
Assets | ||
Available-for-sale securities | 126,000,000 | |
Trading securities | 3,000,000 | 20,000,000 |
Recurring basis | Level 2 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 999,000,000 | 263,000,000 |
Trading securities | 124,000,000 | 1,056,000,000 |
Recurring basis | Level 2 | Residential mortgage-backed securities (“RMBS”) | ||
Assets | ||
Available-for-sale securities | 128,000,000 | 73,000,000 |
Trading securities | 2,000,000 | 36,000,000 |
Recurring basis | Level 2 | Commercial mortgage-backed securities (“CMBS”) | ||
Assets | ||
Available-for-sale securities | 116,000,000 | 21,000,000 |
Trading securities | 2,000,000 | 151,000,000 |
Recurring basis | Level 2 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | ||
Assets | ||
Available-for-sale securities | 71,000,000 | 63,000,000 |
Trading securities | 512,000,000 | |
Recurring basis | Level 2 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 7,000,000 | 7,000,000 |
Recurring basis | Level 2 | Common Stock | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 2 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 3 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Cash and cash equivalents | 0 | |
Available-for-sale securities | 2,000,000 | 8,000,000 |
Trading securities | 0 | |
Investment securities | 2,000,000 | 8,000,000 |
Restricted cash in mutual funds | 0 | |
Total | 2,000,000 | 8,000,000 |
Recurring basis | Level 3 | Bonds | ||
Assets | ||
Available-for-sale securities | 7,000,000 | |
Recurring basis | Level 3 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Certificates of deposit and commercial paper | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Non-US government and government sponsored entities [Member] | ||
Assets | ||
Trading securities | 0 | |
Recurring basis | Level 3 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 4,000,000 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Residential mortgage-backed securities (“RMBS”) | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Commercial mortgage-backed securities (“CMBS”) | ||
Assets | ||
Available-for-sale securities | 3,000,000 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | ||
Assets | ||
Available-for-sale securities | 0 | |
Trading securities | 0 | |
Recurring basis | Level 3 | Preferred stock | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 3 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 2,000,000 | 1,000,000 |
Portion at Other than Fair Value Measurement | Common Stock | ||
Assets | ||
Available-for-sale securities | $ 1,000,000 | $ 1,000,000 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 - Recurring Basis (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | $ 8 | $ 15 |
Net gains (losses) included in: Other revenues | 0 | |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | |
Purchases, sales, issues, settlements | (9) | |
Transfers into Level 3 | 3 | |
Transfers out of Level 3 | (3) | (1) |
Balance at end of period | 8 | |
Trading securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 0 | 7 |
Net gains (losses) included in: Other revenues | 0 | |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | |
Purchases, sales, issues, settlements | (6) | |
Transfers into Level 3 | 1 | |
Transfers out of Level 3 | (2) | |
Balance at end of period | 0 | |
Investment securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 8 | 22 |
Net gains (losses) included in: Other revenues | 0 | 0 |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issues, settlements | (3) | (15) |
Transfers into Level 3 | 0 | 4 |
Transfers out of Level 3 | (3) | (3) |
Balance at end of period | 2 | 8 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1 | |
Bonds | Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 7 | 14 |
Net gains (losses) included in: Other revenues | 0 | 0 |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issues, settlements | (4) | (9) |
Transfers into Level 3 | 0 | 3 |
Transfers out of Level 3 | (3) | (1) |
Balance at end of period | 0 | 7 |
Corporate debt | Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 4 | 13 |
Net gains (losses) included in: Other revenues | 0 | 0 |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issues, settlements | (4) | (9) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at end of period | 0 | 4 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | |
Residential mortgage-backed securities (“RMBS”) | Trading securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 0 | 0 |
Net gains (losses) included in: Other revenues | 0 | |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | |
Purchases, sales, issues, settlements | 0 | |
Transfers into Level 3 | 1 | |
Transfers out of Level 3 | (1) | |
Balance at end of period | 0 | |
Commercial mortgage-backed securities (“CMBS”) | Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 3 | 0 |
Net gains (losses) included in: Other revenues | 0 | 0 |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issues, settlements | 0 | 0 |
Transfers into Level 3 | 0 | 3 |
Transfers out of Level 3 | (3) | 0 |
Balance at end of period | 0 | 3 |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 0 | 1 |
Net gains (losses) included in: Other revenues | 0 | |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | |
Purchases, sales, issues, settlements | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (1) | |
Balance at end of period | 0 | |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Trading securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 0 | 7 |
Net gains (losses) included in: Other revenues | 0 | |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | |
Purchases, sales, issues, settlements | (6) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | (1) | |
Balance at end of period | 0 | |
Other long-term investments | Available-for-sale securities | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 1 | 1 |
Net gains (losses) included in: Other revenues | 0 | 0 |
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issues, settlements | 1 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance at end of period | 2 | $ 1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | $ 1 |
Fair Value Measurements - Detai
Fair Value Measurements - Detail of Purchases and Settlements (Details 4) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)bond | Dec. 31, 2014USD ($)bond | |
Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | $ (9) | |
Transfers into Level 3 | 3 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | $ 3 | 1 |
Trading securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | (6) | |
Transfers into Level 3 | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 2 | |
Investment securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (4) | |
Purchases, sales, issues, settlements | (3) | (15) |
Minimum disclosure amount of debt instrument, fair value disclosure. | 1 | |
Transfers into Level 3 | 0 | 4 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 3 | 3 |
Corporate debt | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (4) | |
Purchases, sales, issues, settlements | (4) | (9) |
Transfers into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 |
Other long-term investments | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 0 | |
Purchases, sales, issues, settlements | 1 | 0 |
Transfers into Level 3 | 0 | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | 0 |
Residential mortgage-backed securities (“RMBS”) | Trading securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | 0 | |
Transfers into Level 3 | 1 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 1 | |
Commercial mortgage-backed securities (“CMBS”) | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | 0 | 0 |
Transfers into Level 3 | 0 | 3 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 3 | 0 |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | 0 | |
Transfers into Level 3 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 1 | |
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | Trading securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | (6) | |
Transfers into Level 3 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 1 | |
Bonds | Available-for-sale securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Purchases, sales, issues, settlements | (4) | (9) |
Transfers into Level 3 | 0 | 3 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | $ 3 | $ 1 |
Collateralized Mortgage Backed Securities [Member] | Recurring basis | Discounted cash flows | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of Bonds | bond | 1 | |
Corporate debt | Recurring basis | Discounted cash flows | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of Bonds | bond | 1 | 1 |
Residential mortgage-backed securities (“RMBS”) | Recurring basis | Discounted cash flows | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Number of Bonds | bond | 1 | 1 |
Minimum disclosure amount of debt instrument, fair value disclosure. | $ 1 | $ 1 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information Level 3(Details 5) - Level 3 - Recurring - Discounted cash flows $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)bond | Dec. 31, 2014USD ($)bond | |
Corporate debt | ||
Valuation of Level 3 Financial Instruments | ||
Number of Bonds | 1 | 1 |
Unobservable Input | ||
Yield (as a percent) | 0.00% | 1.05% |
Residential mortgage-backed securities (“RMBS”) | ||
Valuation of Level 3 Financial Instruments | ||
Number of Bonds | 1 | 1 |
Minimum disclosure amount of debt instrument, fair value disclosure. | $ | $ 1 | $ 1 |
Unobservable Input | ||
Fair Value Inputs, Entity Credit Risk | 6.65% | 7.36% |
Collateralized Mortgage Backed Securities [Member] | ||
Valuation of Level 3 Financial Instruments | ||
Number of Bonds | 1 | |
Unobservable Input | ||
Fair Value Inputs, Entity Credit Risk | 0.00% | 1.39% |
Commercial mortgage-backed securities (“CMBS”) | ||
Valuation of Level 3 Financial Instruments | ||
Number of Bonds | 1 |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Basis (Details 6) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Assets measured at fair value on a non-recurring basis | ||
Embedded Derivative, Fair Value of Embedded Derivative Liability | $ 0 | |
Non-recurring basis | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 19,000,000 | $ 30,000,000 |
Impairment charges | 1,000,000 | 14,000,000 |
Non-recurring basis | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 11,000,000 | 19,000,000 |
Impairment charges | 3,000,000 | 16,000,000 |
Non-recurring basis | Commercial mortgage loans | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 8,000,000 | 11,000,000 |
Impairment charges | (2,000,000) | (2,000,000) |
Non-recurring basis | Level 1 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 1 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 1 | Commercial mortgage loans | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 2 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 2 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 2 | Commercial mortgage loans | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 0 | 0 |
Non-recurring basis | Level 3 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 19,000,000 | 30,000,000 |
Non-recurring basis | Level 3 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | 11,000,000 | 19,000,000 |
Non-recurring basis | Level 3 | Commercial mortgage loans | ||
Assets measured at fair value on a non-recurring basis | ||
Assets | $ 8,000,000 | $ 11,000,000 |
Subsequent Events - Replacement
Subsequent Events - Replacement of 2015 Warehouse Facility (Details) - Subsequent Event | Jan. 21, 2016USD ($) | Jan. 21, 2018USD ($) | Jan. 21, 2017USD ($) | Feb. 24, 2016USD ($) | Jan. 21, 2016loan | Jan. 21, 2016agreement |
Line of Credit Facility [Line Items] | ||||||
Number of bilateral conduit facilities | 4 | 4 | ||||
Line of credit, maximum borrowing capacity | $ 2,400,000,000 | |||||
OneMain | Consolidated VIEs | OneMain Financial B1 Warehouse Trust | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 550,000,000 | |||||
Funding period | 3 years | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 490,000,000 | |||||
OneMain | Consolidated VIEs | OneMain Financial B1 Warehouse Trust | Forecast | ||||||
Line of Credit Facility [Line Items] | ||||||
line of credit facility, remaining borrowing capacity, reduction | $ 350,000,000 | $ 450,000,000 | ||||
OneMain | Consolidated VIEs | OneMain Financial B2 Warehouse Trust | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | |||||
Funding period | 3 years | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 250,000,000 | |||||
OneMain | Consolidated VIEs | OneMain Financial B3 Warehouse Trust | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 350,000,000 | |||||
Funding period | 3 years | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |||||
OneMain | Consolidated VIEs | OneMain Financial B4 Warehouse Trust | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | |||||
Funding period | 3 years | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 460,000,000 |
Subsequent Events - Amendments
Subsequent Events - Amendments to SFC's Conduit Facilities (Details) - Consumer Loan Securitizations - Consolidated VIEs - USD ($) | 1 Months Ended | |||||||||||||||||
Feb. 28, 2019 | Feb. 28, 2018 | Jan. 30, 2018 | Feb. 24, 2017 | Feb. 22, 2016 | Jan. 21, 2016 | Dec. 31, 2015 | Dec. 10, 2015 | Dec. 03, 2015 | Nov. 23, 2015 | Jul. 15, 2015 | Jun. 03, 2015 | May. 27, 2015 | Mar. 24, 2015 | Jun. 26, 2014 | Jun. 13, 2014 | Sep. 27, 2013 | Sep. 26, 2013 | |
Springleaf 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 350,000,000 | |||||||||||||||||
Amount drawn | $ 0 | |||||||||||||||||
Mill River 2015 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 400,000,000 | |||||||||||||||||
Amount drawn | 400,000,000 | $ 200,000,000 | $ 200,000,000 | |||||||||||||||
Whitford Brook Funding Trust2014 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Amount drawn | $ 100,000,000 | |||||||||||||||||
Personal Loans | Midbrook 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 300,000,000 | $ 300,000,000 | ||||||||||||||||
Amount drawn | 0 | |||||||||||||||||
Personal Loans | Whitford Brook Funding Trust2014 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 250,000,000 | $ 300,000,000 | $ 300,000,000 | |||||||||||||||
Amount drawn | $ 200,000,000 | $ 100,000,000 | ||||||||||||||||
Subsequent Event | Springleaf 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 850,000,000 | |||||||||||||||||
Amount drawn | $ 298,000,000 | |||||||||||||||||
Subsequent Event | Mill River 2015 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 100,000,000 | |||||||||||||||||
Amount drawn | 100,000,000 | |||||||||||||||||
Subsequent Event | Midbrook 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Amount drawn | 0 | |||||||||||||||||
Subsequent Event | Whitford Brook Funding Trust2014 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Amount drawn | $ 200,000,000 | |||||||||||||||||
Subsequent Event | Personal Loans | Midbrook 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Maximum amount of notes that may be issued under private securitization facility | $ 250,000,000 | |||||||||||||||||
Forecast | Subsequent Event | Springleaf 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Principal amount, reduce to cash payments, due and payable | 36 months | |||||||||||||||||
Forecast | Subsequent Event | Midbrook 2013-VFN1 Securitization | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Principal amount, reduce to cash payments, due and payable | 36 months | |||||||||||||||||
Forecast | Subsequent Event | Whitford Brook Funding Trust2014 VFN1 | ||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||
Principal amount, reduce to cash payments, due and payable | 12 months |
Subsequent Events - Securitizat
Subsequent Events - Securitizations (Details) - Subsequent Event - USD ($) | Feb. 16, 2016 | Feb. 10, 2016 |
OMFIT 2016-1 Securitization [Member] | OneMain | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of notes that may be issued under private securitization facility | $ 500,000,000 | |
Debt, Weighted Average Interest Rate | 3.79% | |
OMFIT 2016-1 Class A & B Securitization [Member] | OMFIT 2016-1 Securitization [Member] | OneMain | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of notes that may be issued under private securitization facility | $ 414,000,000 | |
OMFIT 2016-1 Class C & D Securitization [Member] | OMFIT 2016-1 Securitization [Member] | OneMain | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of notes that may be issued under private securitization facility | $ 86,000,000 | |
Consolidated VIEs | Consumer Loan Securitizations | SLFMT 2013-B | ||
Line of Credit Facility [Line Items] | ||
Debt redemption price | $ 371,000,000 | |
Amount excluded from the redemption price | 30,000,000 | |
Amount of notes sold under private securitization | $ 400,000,000 |
Selected Quarterly Financial150
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 684 | $ 428 | $ 413 | $ 406 | $ 413 | $ 484 | $ 533 | $ 552 | $ 1,931 | $ 1,982 | $ 2,154 |
Interest expense | 215 | 171 | 171 | 158 | 157 | 180 | 192 | 205 | 715 | 734 | 920 |
Provision for finance receivable losses | 510 | 82 | 80 | 87 | 95 | 103 | 115 | 161 | 759 | 474 | 527 |
Other revenues | 103 | 51 | 56 | 51 | (27) | 686 | 92 | 81 | 261 | 832 | 153 |
Other expenses | 402 | 204 | 207 | 174 | 172 | 190 | 171 | 168 | 987 | 701 | 782 |
Income (loss) before provision for (benefit from) income taxes | (340) | 22 | 11 | 38 | (38) | 697 | 147 | 99 | (269) | 905 | 78 |
Provision for (benefit from) income taxes | (148) | 2 | (8) | 7 | (13) | 235 | 44 | 31 | (147) | 297 | (16) |
Net income (loss) | (192) | 20 | 19 | 31 | (25) | 462 | 103 | 68 | (122) | 608 | 94 |
Net income attributable to non-controlling interests | 27 | 31 | 31 | 31 | 21 | 35 | 31 | 16 | 120 | 103 | 113 |
Net income (loss) attributable to OneMain Holdings, Inc. | $ (219) | $ (11) | $ (12) | $ 0 | $ (46) | $ 427 | $ 72 | $ 52 | $ (242) | $ 505 | $ (19) |
Earnings (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (1.63) | $ (0.08) | $ (0.09) | $ 0 | $ (0.41) | $ 3.72 | $ 0.63 | $ 0.46 | $ (1.89) | $ 4.40 | $ (0.19) |
Diluted (in dollars per share) | $ (1.63) | $ (0.08) | $ (0.09) | $ 0 | $ (0.41) | $ 3.70 | $ 0.63 | $ 0.45 | $ (1.89) | $ 4.38 | $ (0.19) |
Schedule I - Condensed Finan151
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash and cash equivalents | $ 939 | $ 879 | $ 431 | $ 1,554 |
Total assets | 21,056 | 10,812 | 15,176 | |
Liabilities and Shareholders’ Equity | ||||
Deferred and accrued taxes | 20 | 152 | ||
Total liabilities | 18,451 | 8,975 | ||
Total shareholders’ equity | 2,605 | 1,837 | 1,887 | $ 1,181 |
Total liabilities and shareholders’ equity | 21,056 | 10,812 | ||
Springleaf Holdings, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 1 | 6 | $ 6 | |
Investment in subsidiaries | 2,630 | 1,789 | ||
Note receivable from affiliate | 134 | 239 | ||
Receivable from affiliates | 1 | 0 | ||
Total assets | 2,766 | 2,034 | ||
Liabilities and Shareholders’ Equity | ||||
Payable to affiliate | 10 | 8 | ||
Deferred and accrued taxes | 5 | 1 | ||
Total liabilities | 15 | 9 | ||
Total shareholders’ equity | 2,751 | 2,025 | ||
Total liabilities and shareholders’ equity | $ 2,766 | $ 2,034 |
Schedule I - Condensed Finan152
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details 2) - USD ($) $ in Millions | 3 Months Ended | 5 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statement of Operations | ||||||||||||
Investment income | $ 52 | $ 39 | $ 35 | |||||||||
Provision for income taxes | $ (148) | $ 2 | $ (8) | $ 7 | $ (13) | $ 235 | $ 44 | $ 31 | (147) | 297 | (16) | |
Net income (loss) | $ (192) | $ 20 | $ 19 | $ 31 | $ (25) | $ 462 | $ 103 | $ 68 | (122) | 608 | 94 | |
Other comprehensive income, net of tax | (36) | (25) | 1 | |||||||||
Comprehensive income (loss) | (158) | 583 | 95 | |||||||||
Springleaf Holdings, Inc. | ||||||||||||
Condensed Statement of Operations | ||||||||||||
Interest income from affiliate | $ 2 | 13 | 8 | 2 | ||||||||
Investment income | 1 | 0 | 0 | |||||||||
Income before provision for income taxes | 14 | 8 | 2 | |||||||||
Provision for income taxes | 5 | 3 | 1 | |||||||||
Equity in underdistributed net income from subsidiaries | (251) | 500 | 37 | |||||||||
Net income (loss) | (242) | 505 | 38 | |||||||||
Other comprehensive income, net of tax | (36) | (25) | 1 | |||||||||
Comprehensive income (loss) | $ (278) | $ 480 | $ 39 |
Schedule I - Condensed Finan153
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details 3) - USD ($) $ in Millions | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Statement of Operations | ||||
Net cash used for operating activities | $ 731 | $ 400 | $ 675 | |
Cash flows from investing activities | ||||
Net cash provided by (used for) investing activities | (2,638) | 1,821 | (2,123) | |
Cash flows from financing activities | ||||
Sale of common stock, net of offering costs | 976 | 0 | 231 | |
Net cash provided by (used for) financing activities | 1,968 | (1,772) | 326 | |
Net change in cash and cash equivalents | 60 | 448 | (1,123) | |
Cash and cash equivalents at beginning of period | 879 | 431 | 1,554 | |
Cash and cash equivalents at end of period | $ 431 | 939 | 879 | 431 |
Springleaf Holdings, Inc. | ||||
Condensed Statement of Operations | ||||
Net cash used for operating activities | 0 | 23 | 0 | |
Proceeds from Contributions from Affiliates | 0 | (1,100) | 0 | |
Repayment of Notes Receivable from Related Parties | 0 | 96 | 0 | |
Cash flows from investing activities | ||||
Change in receivable from affiliate | (230) | 0 | 0 | |
Net cash provided by (used for) investing activities | (230) | (1,004) | 0 | |
Cash flows from financing activities | ||||
Sale of common stock, net of offering costs | 236 | 976 | 0 | |
Net cash provided by (used for) financing activities | 236 | 976 | 0 | |
Net change in cash and cash equivalents | 6 | (5) | 0 | |
Cash and cash equivalents at beginning of period | 6 | 6 | ||
Cash and cash equivalents at end of period | 6 | 1 | 6 | $ 6 |
Supplemental non-cash financing activities | ||||
Increase in payable to affiliate for stock offering costs | $ 5 | $ 2 | $ 0 |
Schedule I - Narrative (Details
Schedule I - Narrative (Details 4) - USD ($) | Nov. 15, 2015 | Oct. 31, 2015 | Aug. 09, 2013 | Aug. 05, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||||||||
Cash consideration | $ 3,902,000,000 | $ 0 | $ 0 | |||||
OneMain | ||||||||
Related Party Transaction [Line Items] | ||||||||
Cash consideration | $ 4,500,000,000 | $ 4,478,000,000 | ||||||
Springleaf Holdings, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest income from affiliate | $ 2,000,000 | $ 13,000,000 | $ 8,000,000 | $ 2,000,000 | ||||
Springleaf Financial Holdings, LLC (or its predecessor AGF Holding Inc) | Predecessor | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common units issued, shares | 100 | |||||||
Common units issued, value | $ 1,000 | |||||||
Affiliated Entity | Master Notes Receivable, Affiliates | SFI | ||||||||
Related Party Transaction [Line Items] | ||||||||
Effective interest rate | 5.82% |
Schedule I - Subsidiary Debt Gu
Schedule I - Subsidiary Debt Guarantee (Details 5) - USD ($) | Dec. 30, 2013 | Jan. 31, 2007 | Dec. 31, 2015 | Dec. 11, 2014 | Dec. 03, 2014 |
Junior Subordinated Debt | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 6.00% | ||||
Guaranty Agreements | Senior note | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | $ 5,200,000,000 | $ 4,200,000,000 | $ 700,000,000 | ||
Guaranty Agreements | Senior Notes 5.25 % Due 2019 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | 700,000,000 | ||||
Interest rates (as a percent) | 5.25% | ||||
Guaranty Agreements | Junior Subordinated Debt | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | 350,000,000 | ||
Term of debt | 60 years | 60 years | |||
Guaranty Agreements | 8.250% Senior Notes due 2023 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 8.25% | ||||
Guaranty Agreements | 7.750% Senior Notes due 2021 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 7.75% | ||||
Guaranty Agreements | 6.00% Senior Notes due 2020 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 6.00% | ||||
Guaranty Agreements | Senior Notes 1999 Indenture | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | 2,300,000,000 | ||||
Guaranty Agreements | Senior Note 6.75 Percent due 2019 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 6.75% | ||||
Guaranty Agreements | Senior Note 6.75 Percent due 2019 | OneMain Financial Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | $ 700,000,000 | ||||
Guaranty Agreements | Senior Note 7.25 Percent due 2021 | Springleaf Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Interest rates (as a percent) | 7.25% | ||||
Guaranty Agreements | Senior Note 7.25 Percent due 2021 | OneMain Financial Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Debt instrument, face amount | $ 800,000,000 | ||||
Guaranty Agreements | Senior Note 6.75 Percent due 2019 | Senior Note 7.25 Percent due 2021 | OneMain Financial Holdings, Inc. | |||||
Subsidiary debt guarantee | |||||
Senior notes | $ 1,500,000,000 |