Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | OneMain Holdings, Inc. | |
Entity Central Index Key | 1,584,207 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 135,306,282 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 916 | $ 579 |
Investment securities | 1,668 | 1,764 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $9.8 billion in 2017 and $9.5 billion in 2016) | 14,356 | 13,577 |
Real estate loans | 133 | 144 |
Retail sales finance | 7 | 11 |
Net finance receivables | 14,496 | 13,732 |
Unearned insurance premium and claim reserves | (574) | (586) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $463 million in 2017 and $501 million in 2016) | (698) | (689) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 13,224 | 12,457 |
Finance receivables held for sale | 137 | 153 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $553 million in 2017 and $552 million in 2016) | 571 | 568 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 452 | 492 |
Other assets | 660 | 688 |
Total assets | 19,050 | 18,123 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.6 billion in 2017 and $8.2 billion in 2016) | 14,619 | 13,959 |
Insurance claims and policyholder liabilities | 744 | 757 |
Deferred and accrued taxes | 16 | 9 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 441 | 332 |
Total liabilities | 15,820 | 15,057 |
Commitments and contingent liabilities (Note 14) | ||
Shareholders’ equity: | ||
Common stock, par value $.01 per share; 2,000,000,000 shares authorized, 135,306,282 and 134,867,868 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 1 | 1 |
Additional paid-in capital | 1,557 | 1,548 |
Accumulated other comprehensive income (loss) | 5 | (6) |
Retained earnings | 1,667 | 1,523 |
Total shareholders’ equity | 3,230 | 3,066 |
Total liabilities and shareholders’ equity | $ 19,050 | $ 18,123 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Personal loans | $ 14,356 | $ 13,577 |
Allowance for finance receivable losses | 698 | 689 |
Restricted cash and restricted cash equivalents | 571 | 568 |
Long-term debt (includes debt of consolidated VIEs of $8.6 billion in 2017 and $8.2 billion in 2016) | 14,619 | 13,959 |
Other liabilities | $ 441 | $ 332 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 135,306,282 | 134,867,868 |
Common stock, shares outstanding (in shares) | 135,306,282 | 134,867,868 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 463 | $ 501 |
Restricted cash and restricted cash equivalents | 553 | 552 |
Long-term debt (includes debt of consolidated VIEs of $8.6 billion in 2017 and $8.2 billion in 2016) | 8,600 | 8,200 |
Other liabilities | 14 | 12 |
Personal loans | ||
Allowance for finance receivable losses | 673 | 669 |
Personal loans | Consolidated VIEs | ||
Personal loans | $ 9,800 | $ 9,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Finance charges | $ 805 | $ 763 | $ 2,329 | $ 2,271 |
Finance receivables held for sale originated as held for investment | 3 | 7 | 10 | 71 |
Total interest income | 808 | 770 | 2,339 | 2,342 |
Interest expense | 207 | 215 | 612 | 655 |
Net interest income | 601 | 555 | 1,727 | 1,687 |
Provision for finance receivable losses | 243 | 263 | 724 | 674 |
Net interest income after provision for finance receivable losses | 358 | 292 | 1,003 | 1,013 |
Other revenues: | ||||
Insurance | 107 | 114 | 314 | 342 |
Investment | 19 | 22 | 58 | 66 |
Net loss on repurchases and repayments of debt | (1) | 0 | (29) | (16) |
Net gain on sale of SpringCastle interests | 0 | 0 | 0 | 167 |
Net gain (loss) on sales of personal and real estate loans | 0 | (4) | 0 | 18 |
Other | 27 | 26 | 71 | 49 |
Total other revenues | 152 | 158 | 414 | 626 |
Operating expenses: | ||||
Salaries and benefits | 185 | 191 | 562 | 597 |
Acquisition-related transaction and integration expenses | 22 | 21 | 59 | 75 |
Other operating expenses | 134 | 168 | 413 | 512 |
Insurance policy benefits and claims | 48 | 37 | 139 | 128 |
Total other expenses | 389 | 417 | 1,173 | 1,312 |
Income before income taxes | 121 | 33 | 244 | 327 |
Income taxes | 52 | 8 | 100 | 111 |
Net income | 69 | 25 | 144 | 216 |
Net income attributable to non-controlling interests | 0 | 0 | 0 | 28 |
Net income attributable to OneMain Holdings, Inc. | $ 69 | $ 25 | $ 144 | $ 188 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 135,253,493 | 134,730,251 | 135,240,664 | 134,717,870 |
Diluted (in shares) | 135,711,212 | 134,987,134 | 135,599,369 | 134,949,337 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.19 | $ 1.07 | $ 1.40 |
Diluted (in dollars per share) | $ 0.51 | $ 0.19 | $ 1.07 | $ 1.39 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 69 | $ 25 | $ 144 | $ 216 |
Other comprehensive income (loss): | ||||
Net change in unrealized gains on non-credit impaired available-for-sale securities | 3 | 9 | 23 | 67 |
Foreign currency translation adjustments | 3 | (1) | 7 | 6 |
Income tax effect: | ||||
Net unrealized gains on non-credit impaired available-for-sale securities | (1) | (3) | (8) | (23) |
Foreign currency translation adjustments | (1) | 1 | (3) | (2) |
Other comprehensive income, net of tax, before reclassification adjustments | 4 | 6 | 19 | 48 |
Reclassification adjustments included in net income: | ||||
Net realized gains on available-for-sale securities | (4) | (3) | (12) | (9) |
Net realized gain on foreign currency translation adjustments | 0 | (5) | 0 | (5) |
Income tax effect: | ||||
Net realized gains on available-for-sale securities | 2 | 1 | 4 | 3 |
Reclassification adjustments included in net income, net of tax | (2) | (7) | (8) | (11) |
Other comprehensive income (loss), net of tax | 2 | (1) | 11 | 37 |
Comprehensive income | 71 | 24 | 155 | 253 |
Comprehensive income attributable to non-controlling interests | 0 | 0 | 0 | 28 |
Comprehensive income attributable to OneMain Holdings, Inc. | $ 71 | $ 24 | $ 155 | $ 225 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | OneMain Holdings, Inc. Shareholders’ Equity | Non-controlling Interests |
Balance at beginning of period at Dec. 31, 2015 | $ 2,730 | $ 1 | $ 1,533 | $ (33) | $ 1,308 | $ 2,809 | $ (79) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense, net of forfeitures | 16 | 16 | 16 | ||||
Withholding tax on share-based compensation | (4) | (4) | (4) | ||||
Change in non-controlling interests: | |||||||
Distributions declared to joint venture partners | (18) | (18) | |||||
Sale of equity interests in SpringCastle joint venture | 69 | 69 | |||||
Other comprehensive income | 37 | 37 | 37 | ||||
Net income | 216 | 188 | 188 | 28 | |||
Balance at end of period at Sep. 30, 2016 | 3,046 | 1 | 1,545 | 4 | 1,496 | 3,046 | 0 |
Balance at beginning of period at Jun. 30, 2016 | 5 | ||||||
Change in non-controlling interests: | |||||||
Other comprehensive income | (1) | ||||||
Net income | 25 | ||||||
Balance at end of period at Sep. 30, 2016 | 3,046 | 1 | 1,545 | 4 | 1,496 | 3,046 | 0 |
Balance at beginning of period at Dec. 31, 2016 | 3,066 | 1 | 1,548 | (6) | 1,523 | 3,066 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense, net of forfeitures | 14 | 14 | 14 | ||||
Withholding tax on share-based compensation | (5) | (5) | (5) | ||||
Change in non-controlling interests: | |||||||
Other comprehensive income | 11 | 11 | 11 | ||||
Net income | 144 | 144 | 144 | 0 | |||
Balance at end of period at Sep. 30, 2017 | 3,230 | 1 | 1,557 | 5 | 1,667 | 3,230 | 0 |
Balance at beginning of period at Jun. 30, 2017 | 3 | ||||||
Change in non-controlling interests: | |||||||
Other comprehensive income | 2 | ||||||
Net income | 69 | ||||||
Balance at end of period at Sep. 30, 2017 | $ 3,230 | $ 1 | $ 1,557 | $ 5 | $ 1,667 | $ 3,230 | $ 0 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 144 | $ 216 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 724 | 674 |
Depreciation and amortization | 265 | 416 |
Deferred income tax benefit | (32) | (99) |
Net gain on liquidation of United Kingdom subsidiary | 0 | (5) |
Net gain on sales of personal and real estate loans | 0 | (18) |
Net loss on repurchases and repayments of debt | 29 | 16 |
Share-based compensation expense, net of forfeitures | 14 | 16 |
Net gain on sale of SpringCastle interests | 0 | (167) |
Other | (12) | (7) |
Cash flows due to changes in: | ||
Other assets and other liabilities | 119 | 92 |
Insurance claims and policyholder liabilities | (32) | (50) |
Taxes receivable and payable | 36 | 49 |
Accrued interest and finance charges | (15) | 2 |
Other, net | 0 | 1 |
Net cash provided by operating activities | 1,240 | 1,136 |
Cash flows from investing activities | ||
Net principal originations of finance receivables held for investment and held for sale | (1,582) | (998) |
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 870 |
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | 26 |
Cash received from CitiFinancial Credit Company | 0 | 23 |
Available-for-sale securities purchased | (508) | (446) |
Trading and other securities purchased | 0 | (16) |
Available-for-sale securities called, sold, and matured | 619 | 597 |
Trading and other securities called, sold, and matured | 9 | 52 |
Proceeds from sale of real estate owned | 3 | 7 |
Other, net | (4) | (26) |
Net cash provided by (used for) investing activities | (1,463) | 89 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 3,743 | 4,552 |
Repayments of long-term debt | (3,176) | (6,155) |
Distributions to joint venture partners | 0 | (18) |
Withholding tax on share-based compensation | (5) | (4) |
Net cash provided by (used for) financing activities | 562 | (1,625) |
Effect of exchange rate changes on cash and cash equivalents | 1 | 1 |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 340 | (399) |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,147 | 1,615 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,487 | 1,216 |
Supplemental cash flow information | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,147 | 1,615 |
Supplemental non-cash activities | ||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 1,895 |
Transfer of finance receivables to real estate owned | 7 | 7 |
Net unsettled investment security dispositions (purchases) | $ 1 | $ (15) |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation OneMain 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 September 30, 2017 , the Initial Stockholder owned approximately 57% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. OMH is a financial services holding company whose principal subsidiaries are SFI and Independence. SFI’s principal subsidiary is 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. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with the SpringCastle Joint Venture, in which we owned a 47% equity interest prior to March 31, 2016), and 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 condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed 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 2017 presentation, we have reclassified certain items in prior periods of our condensed consolidated statements of cash flows. Also, to conform to the new alignment of our segments, as further discussed in Note 16 , we have revised our prior period segment disclosures. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed below. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for annual periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact 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 recognition 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 the Company for annual periods beginning January 1, 2018. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09. ASU 2016-08 does not change the core principles of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial liabilities, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for annual periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases . The ASU requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2016, the Company had approximately $180 million of minimum lease commitments from these operating leases (refer to Note 19 of our 2016 Annual Report on Form 10-K). We believe the adoption of this ASU will have a material impact on our consolidated financial statements, and we are in the process of quantifying the expected impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. The expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of developing an acceptable model to estimate the expected credit losses. We believe the adoption of this ASU will have a material impact on our consolidated financial statements, and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 from the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the nine months ended September 30, 2017 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, 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 September 30, 2017 , we had over 2.3 million personal loans representing $14.4 billion of net finance receivables, compared to 2.2 million personal loans totaling $13.6 billion at December 31, 2016 . • 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. 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 originating real estate loans in January of 2012, our real estate loans have been 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 in a liquidating status. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Real Estate Loans Retail Total September 30, 2017 Gross receivables * $ 15,804 $ 132 $ 8 $ 15,944 Unearned finance charges and points and fees (1,742 ) — (1 ) (1,743 ) Accrued finance charges 187 1 — 188 Deferred origination costs 107 — — 107 Total $ 14,356 $ 133 $ 7 $ 14,496 December 31, 2016 Gross receivables * $ 15,405 $ 142 $ 12 $ 15,559 Unearned finance charges and points and fees (2,062 ) 1 (1 ) (2,062 ) Accrued finance charges 151 1 — 152 Deferred origination costs 83 — — 83 Total $ 13,577 $ 144 $ 11 $ 13,732 * 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 premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial 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; • 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; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. At September 30, 2017 and December 31, 2016 , unused lines of credit extended to customers by the Company were immaterial . CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are 60 days past due, we consider them delinquent and transfer collection of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Real Estate Loans Retail Total September 30, 2017 Net finance receivables: Performing Current $ 13,719 $ 103 $ 7 $ 13,829 30-59 days past due 208 8 — 216 60-89 days past due 134 2 — 136 Total performing 14,061 113 7 14,181 Nonperforming 90-179 days past due 289 4 — 293 180 days or more past due 6 16 — 22 Total nonperforming 295 20 — 315 Total $ 14,356 $ 133 $ 7 $ 14,496 December 31, 2016 Net finance receivables: Performing Current $ 12,920 $ 102 $ 11 $ 13,033 30-59 days past due 174 9 — 183 60-89 days past due 130 4 — 134 Total performing 13,224 115 11 13,350 Nonperforming 90-179 days past due 349 8 — 357 180 days or more past due 4 21 — 25 Total nonperforming 353 29 — 382 Total $ 13,577 $ 144 $ 11 $ 13,732 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 September 30, 2017 and at December 31, 2016 were immaterial . PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased in connection with the OneMain Acquisition and the Fortress Acquisition. Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold the SpringCastle Portfolio in connection with the SpringCastle Interests Sale. 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 September 30, 2017 and December 31, 2016 , finance receivables held for sale totaled $137 million and $153 million , respectively, which 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. See Note 5 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans FA Loans (a) Total September 30, 2017 Carrying amount, net of allowance $ 199 $ 60 $ 259 Outstanding balance (b) 281 97 378 Allowance for purchased credit impaired finance receivable losses 18 9 27 December 31, 2016 Carrying amount, net of allowance $ 324 $ 70 $ 394 Outstanding balance (b) 444 107 551 Allowance for purchased credit impaired finance receivable losses 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 Carrying amount $ 46 $ 54 Outstanding balance 75 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. The allowance for purchased credit impaired finance receivable losses at September 30, 2017 and December 31, 2016 , reflected the carrying value of the purchased credit impaired loans held for investment 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 Three Months Ended September 30, 2017 Balance at beginning of period $ 49 $ — $ 55 $ 104 Accretion (7 ) — (1 ) (8 ) Balance at end of period $ 42 $ — $ 54 $ 96 Three Months Ended September 30, 2016 Balance at beginning of period $ 87 $ — $ 61 $ 148 Accretion (15 ) — (1 ) (16 ) Reclassifications from nonaccretable difference (a) — — 8 8 Transfers due to finance receivables sold — — (11 ) (11 ) Balance at end of period $ 72 $ — $ 57 $ 129 Nine Months Ended September 30, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (b) (27 ) — (4 ) (31 ) Reclassifications from (to) nonaccretable difference (a) 10 — (2 ) 8 Balance at end of period $ 42 $ — $ 54 $ 96 Nine Months Ended September 30, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (b) (56 ) (16 ) (5 ) (77 ) Reclassification from nonaccretable difference (a) — — 7 7 Transfer due to finance receivables sold — (359 ) (11 ) (370 ) Other (c) (23 ) — — (23 ) Balance at end of period $ 72 $ — $ 57 $ 129 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (b) Accretion on our purchased credit impaired FA Loans held for sale was $3 million and $4 million for the nine months ended September 30, 2017 and 2016, respectively. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. TDR FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total September 30, 2017 TDR gross finance receivables $ 283 $ 141 $ 424 TDR net finance receivables 284 142 426 Allowance for TDR finance receivable losses 131 12 143 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 * TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 TDR gross finance receivables $ 91 $ 89 TDR net finance receivables 92 90 As of September 30, 2017 , we had 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) Real Estate Loans (b) Total Three Months Ended September 30, 2017 TDR average net receivables $ 268 $ 142 $ 410 TDR finance charges recognized 9 3 12 Three Months Ended September 30, 2016 TDR average net receivables $ 102 $ 159 $ 261 TDR finance charges recognized 4 3 7 Nine Months Ended September 30, 2017 TDR average net receivables $ 206 $ 139 $ 345 TDR finance charges recognized 24 7 31 Nine Months Ended September 30, 2016 TDR average net receivables $ 83 $ 187 $ 270 TDR finance charges recognized 7 9 16 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Three Months Ended September 30, 2017 TDR average net receivables $ 92 TDR finance charges recognized 2 Three Months Ended September 30, 2016 TDR average net receivables $ 112 TDR finance charges recognized 2 Nine Months Ended September 30, 2017 TDR average net receivables $ 90 TDR finance charges recognized 5 Nine Months Ended September 30, 2016 TDR average net receivables $ 105 TDR finance charges recognized 5 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 Three Months Ended September 30, 2017 Pre-modification TDR net finance receivables $ 77 $ — $ 1 $ 78 Post-modification TDR net finance receivables: Rate reduction $ 60 $ — $ 2 $ 62 Other (b) 17 — — 17 Total post-modification TDR net finance receivables $ 77 $ — $ 2 $ 79 Number of TDR accounts 11,272 — 63 11,335 Three Months Ended September 30, 2016 Pre-modification TDR net finance receivables $ 48 $ — $ 3 $ 51 Post-modification TDR net finance receivables: Rate reduction $ 43 $ — $ 3 $ 46 Other (b) 3 — 1 4 Total post-modification TDR net finance receivables $ 46 $ — $ 4 $ 50 Number of TDR accounts 6,241 — 86 6,327 Nine Months Ended September 30, 2017 Pre-modification TDR net finance receivables $ 236 $ — $ 14 $ 250 Post-modification TDR net finance receivables: Rate reduction $ 178 $ — $ 15 $ 193 Other (b) 56 — — 56 Total post-modification TDR net finance receivables $ 234 $ — $ 15 $ 249 Number of TDR accounts 32,293 — 477 32,770 Nine Months Ended September 30, 2016 Pre-modification TDR net finance receivables $ 148 $ 1 $ 13 $ 162 Post-modification TDR net finance receivables: Rate reduction $ 136 $ 1 $ 11 $ 148 Other (b) 8 — 3 11 Total post-modification TDR net finance receivables $ 144 $ 1 $ 14 $ 159 Number of TDR accounts 19,866 157 291 20,314 (a) TDR finance receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include forgiveness of principal or interest. Personal loans held for investment and held for sale that were modified as TDR personal loans within the previous 12 months and for which there was a default during the period to cause the TDR personal loans to be considered nonperforming (90 days or more past due) were as follows: (dollars in millions) Personal Loans Three Months Ended September 30, 2017 TDR net finance receivables * $ 21 Number of TDR accounts 3,759 Three Months Ended September 30, 2016 TDR net finance receivables * $ 7 Number of TDR accounts 1,080 Nine Months Ended September 30, 2017 TDR net finance receivables * $ 63 Number of TDR accounts 10,357 Nine Months Ended September 30, 2016 TDR net finance receivables * $ 13 Number of TDR accounts 2,120 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. TDR real estate loans for the three and nine months ended September 30, 2017 and 2016 that defaulted during the previous 12-month period were immaterial. TDR SpringCastle Portfolio loans for the nine months ended September 30, 2016 that defaulted during the previous 12-month period were immaterial. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [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 SpringCastle Portfolio Real Estate Loans Retail Consolidated Total Three Months Ended September 30, 2017 Balance at beginning of period $ 656 $ — $ 19 $ 1 $ 676 Provision for finance receivable losses 238 — 5 — 243 Charge-offs (245 ) — (1 ) — (246 ) Recoveries 24 — 1 — 25 Balance at end of period $ 673 $ — $ 24 $ 1 $ 698 Three Months Ended September 30, 2016 Balance at beginning of period $ 587 $ — $ 20 $ 1 $ 608 Provision for finance receivable losses 261 — 2 — 263 Charge-offs (213 ) — (4 ) — (217 ) Recoveries 17 — 1 — 18 Balance at end of period $ 652 $ — $ 19 $ 1 $ 672 Nine Months Ended September 30, 2017 Balance at beginning of period $ 669 $ — $ 19 $ 1 $ 689 Provision for finance receivable losses 717 — 7 — 724 Charge-offs (794 ) — (4 ) — (798 ) Recoveries 81 — 2 — 83 Balance at end of period $ 673 $ — $ 24 $ 1 $ 698 Nine Months Ended September 30, 2016 Balance at beginning of period $ 541 $ 4 $ 46 $ 1 $ 592 Provision for finance receivable losses 652 14 8 — 674 Charge-offs (585 ) (17 ) (10 ) (1 ) (613 ) Recoveries 44 3 4 1 52 Other * — (4 ) (29 ) — (33 ) Balance at end of period $ 652 $ — $ 19 $ 1 $ 672 * Other consists of: • the elimination of allowance for finance receivable losses due to the transfer of real estate loans held for investment to finance receivables held for sale on June 30, 2016; and • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the SpringCastle Interests Sale. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Real Estate Loans Retail Total September 30, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 524 $ 3 $ 1 $ 528 Purchased credit impaired finance receivables 18 9 — 27 TDR finance receivables 131 12 — 143 Total $ 673 $ 24 $ 1 $ 698 Finance receivables: Collectively evaluated for impairment $ 13,855 $ 60 $ 7 $ 13,922 Purchased credit impaired finance receivables 217 23 — 240 TDR finance receivables 284 50 — 334 Total $ 14,356 $ 133 $ 7 $ 14,496 Allowance for finance receivable losses as a percentage of finance receivables 4.69 % 18.19 % 8.96 % 4.81 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 571 $ — $ 1 $ 572 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 669 $ 19 $ 1 $ 689 Finance receivables: Collectively evaluated for impairment $ 13,072 $ 76 $ 11 $ 13,159 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,577 $ 144 $ 11 $ 13,732 Allowance for finance receivable losses as a percentage of finance receivables 4.93 % 13.31 % 4.42 % 5.01 % |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 9 Months Ended |
Sep. 30, 2017 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $137 million at September 30, 2017 and $153 million at December 31, 2016 , which are carried at the lower of cost or fair value and consist entirely of real estate loans. At September 30, 2017 and December 31, 2016 , 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. SPRINGCASTLE PORTFOLIO During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio (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. We simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $167 million . PERSONAL LOANS On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million . REAL ESTATE LOANS On June 30, 2016, we transferred $257 million 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 connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $ 250 million and recorded a net loss in other revenues of $ 4 million . We did not have any other material transfer activity to or from finance receivables held for sale during the three and nine months ended September 30, 2017 and 2016 . |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 30 $ — $ — $ 30 Obligations of states, municipalities, and political subdivisions 135 1 — 136 Certificates of deposit and commercial paper 45 — — 45 Non-U.S. government and government sponsored entities 126 — (2 ) 124 Corporate debt 910 13 (3 ) 920 Mortgage-backed, asset-backed, and collateralized: RMBS 92 — — 92 CMBS 97 — (1 ) 96 CDO/ABS 94 — — 94 Total bonds 1,529 14 (6 ) 1,537 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 22 2 — 24 Other long-term investments 1 — — 1 Total (b) $ 1,569 $ 16 $ (7 ) $ 1,578 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at September 30, 2017 and December 31, 2016 , which is classified as a restricted investment and carried at cost. 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 September 30, 2017 Bonds: U.S. government and government sponsored entities $ 18 $ — $ 4 $ — $ 22 $ — Obligations of states, municipalities, and political subdivisions 29 — 18 — 47 — Non-U.S. government and government sponsored entities 104 (2 ) 3 — 107 (2 ) Corporate debt 204 (2 ) 90 (1 ) 294 (3 ) RMBS 35 — 23 — 58 — CMBS 34 — 33 (1 ) 67 (1 ) CDO/ABS 38 — 21 — 59 — Total bonds 462 (4 ) 192 (2 ) 654 (6 ) Preferred stock 5 — 7 (1 ) 12 (1 ) Common stock 5 — — — 5 — Other long-term investments 1 — — — 1 — Total $ 473 $ (4 ) $ 199 $ (3 ) $ 672 $ (7 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. On a lot basis, we had 1,079 and 1,331 investment securities in an unrealized loss position at September 30, 2017 and December 31, 2016 , respectively. We do not consider the 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 September 30, 2017 , we had 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 the three and nine months ended September 30, 2017 , we did not recognize any other-than-temporary impairment credit losses on our available-for-sale securities in investment revenues. We recognized less than $1 million of other-than-temporary impairment credit losses on corporate debt in investment revenues during the three and nine months ended September 30, 2016 . During the three and nine months ended September 30, 2017 and 2016 , there were no material 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 net realized gains were as follows: (dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales and redemptions $ 157 $ 57 $ 437 $ 344 Realized gains $ 4 $ 3 $ 13 $ 10 Realized losses — — (1 ) (1 ) Net realized gains $ 4 $ 3 $ 12 $ 9 Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2017 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 $ 212 $ 212 Due after 1 year through 5 years 550 548 Due after 5 years through 10 years 301 298 Due after 10 years 192 188 Mortgage-backed, asset-backed, and collateralized securities 282 283 Total $ 1,537 $ 1,529 Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies. The fair value of securities on deposit with third parties totaled $527 million and $465 million at September 30, 2017 and December 31, 2016 , respectively. TRADING AND OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) September 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 77 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 83 93 Preferred stock 6 6 Total $ 89 $ 99 Mark-to-market losses on trading and other securities held at September 30, 2017 were immaterial for the three and nine months ended September 30, 2017 . Mark-to-market losses on trading and other securities held at September 30, 2016 totaled $2 million for the three months ended September 30, 2016, and mark-to-market gains totaled $6 million for the nine months ended September 30, 2016. There were no net realized gains or losses on trading and other securities sold or redeemed during the 2017 period. For the three and nine months ended September 30, 2016 , net realized gains on trading and other securities sold or redeemed totaled $ 4 million . We report these gains (losses) in investment revenues. Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016. |
Transactions with Affiliates of
Transactions with Affiliates of Fortress | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates of Fortress | Transactions with Affiliates of Fortress SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial for the three and nine months ended September 30, 2017 and 2016 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for Springleaf investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and as a result, Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial for the three and nine months ended September 30, 2017 and 2016. SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. Unless we are terminated, we will continue to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust pursuant to a servicing agreement. Servicing fees revenue totaled $9 million and $29 million for the three and nine months ended September 30, 2017 , respectively, compared to $ 10 million and $21 million for the three and nine months ended September 30, 2016. At September 30, 2017 and December 31, 2016 , the servicing fees receivable from the SpringCastle Funding Trust totaled $ 3 million . |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at September 30, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.03% - 7.50% 5.25% - 8.25% 3.05 % Fourth quarter 2017 $ — $ 557 $ — $ 557 2018 — — — — 2019 — 1,396 — 1,396 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 300 350 650 Securitizations (b) 8,599 — — 8,599 Total principal maturities $ 8,599 $ 5,998 $ 350 $ 14,947 Total carrying amount $ 8,577 $ 5,870 $ 172 $ 14,619 Debt issuance costs (c) $ (23 ) $ (21 ) $ — $ (44 ) (a) The interest rates shown are the range of contractual rates in effect at September 30, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.05% as of September 30, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At September 30, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $19 million at September 30, 2017 and are reported in other assets. SFC’S OFFERINGS OF 6.125% SENIOR NOTES DUE 2022 On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture” and, collectively with the SFC Base Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “ 6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price. SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC intends to use the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes, which may include additional debt repurchases and repayments. The 6.125% SFC Notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries. The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund. The Indenture contains covenants that, among other things, (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them were to occur, would permit or require the principal of and accrued interest on the 6.125% SFC Notes to become, or to be declared, due and payable. GUARANTY AGREEMENTS 6.125% SFC Notes On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of September 30, 2017 , $ 1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding. 8.25% SFC Notes On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of September 30, 2017 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. 5.25% SFC Notes On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of September 30, 2017 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; the Junior Subordinated Debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the 1999 Indenture, between SFC and Wilmington (the successor trustee to Citibank N.A.). The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of September 30, 2017 , $2.2 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH Notes On December 11, 2014, OMFH and certain of its subsidiaries entered into 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 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 September 30, 2017 , $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. On November 8, 2016, OMH entered into the OMFH Supplemental Indenture, pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company. The OMH guarantees of OMFH’s long-term debt discussed above are subject to customary release provisions. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES 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 asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any subordinated debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified finance receivables 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 liabilities if its 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) September 30, December 31, Assets Cash and cash equivalents $ 3 $ 3 Finance receivables: Personal loans 9,752 9,509 Allowance for finance receivable losses 463 501 Restricted cash and restricted cash equivalents 553 552 Other assets 13 14 Liabilities Long-term debt $ 8,577 $ 8,240 Other liabilities 16 16 SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitizations borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our securitized borrowings at September 30, 2017 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2015-A (a) $ 1,163 3.47 % 3 years SLFT 2015-B (b) 314 3.78 % 5 years SLFT 2016-A (c) 500 3.10 % 2 years SLFT 2017-A (d) 619 2.98 % 3 years OMFIT 2014-1 (e) 103 3.24 % 2 years OMFIT 2014-2 (f) 426 3.74 % 2 years OMFIT 2015-1 (g) 1,229 3.74 % 3 years OMFIT 2015-2 (h) 946 3.23 % 2 years OMFIT 2015-3 (i) 293 4.21 % 5 years OMFIT 2016-1 (j) 459 4.01 % 3 years OMFIT 2016-2 (k) 816 4.50 % 2 years OMFIT 2016-3 (l) 317 4.33 % 5 years OMFIT 2017-1 (m) 900 2.62 % 2 years Total consumer securitizations 8,085 Auto Securitizations: ODART 2016-1 (n) 246 2.70 % — ODART 2017-1 (o) 268 2.61 % 1 year Total auto securitizations 514 Total secured structured financings $ 8,599 (a) SLFT 2015-A Securitization. On February 26, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in November 2024. (b) SLFT 2015-B Securitization. On April 7, 2015, we issued $314 million of notes backed by personal loans. The notes mature in May 2028. (c) SLFT 2016-A Securitization. On December 14, 2016, we issued $532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $32 million of the asset-backed notes. (d) SLFT 2017-A Securitization. On June 28, 2017, we issued $652 million of notes backed by personal loans. The notes mature in July 2030. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (e) OMFIT 2014-1 Securitization. On April 17, 2014, we issued $760 million of notes backed by personal loans. The notes mature in June 2024. (f) OMFIT 2014-2 Securitization. On July 30, 2014, we issued $1.2 billion of notes backed by personal loans. The notes mature in September 2024. (g) OMFIT 2015-1 Securitization. On February 5, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in March 2026. (h) OMFIT 2015-2 Securitization. On May 21, 2015, we issued $1.3 billion of notes backed by personal loans. The notes mature in July 2025. (i) OMFIT 2015-3 Securitization. On September 29, 2015, we issued $293 million of notes backed by personal loans. The notes mature in November 2028. (j) OMFIT 2016-1 Securitization. On February 10, 2016, we issued $500 million of notes backed by personal loans. The notes mature in February 2029. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (k) OMFIT 2016-2 Securitization. On March 23, 2016, we issued $890 million of notes backed by personal loans. The notes mature in March 2028. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (l) OMFIT 2016-3 Securitization. On June 7, 2016, we issued $350 million of notes backed by personal loans. The notes mature in June 2031. We initially retained $33 million of the Class D notes. (m) OMFIT 2017-1 Securitization. On September 6, 2017, we issued $947 million of notes backed by personal loans. The notes mature in September 2032. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (n) ODART 2016-1 Securitization. On July 19, 2016, we issued $754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (o) ODART 2017-1 Securitization. On February 1, 2017, we issued $300 million of notes backed by direct auto loans. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million , which excluded $33 million for the Class D Notes owned by Twenty First Street, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption. REVOLVING CONDUIT FACILITIES As of September 30, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Revolving First Avenue Funding, LLC $ 250 $ — June 2018 Seine River Funding, LLC 500 — December 2019 OneMain Financial B4 Warehouse Trust 750 — February 2019 OneMain Financial B6 Warehouse Trust 600 — February 2019 Rocky River Funding, LLC (a) 250 — September 2019 OneMain Financial Funding VII, LLC (b) 650 — October 2019 Thur River Funding, LLC (c) 350 — June 2020 OneMain Financial Funding IX, LLC (d) 600 — June 2020 Mystic River Funding, LLC (e) 850 — September 2020 Fourth Avenue Auto Funding, LLC (f) 250 — September 2020 Total $ 5,050 $ — 2017 Activity (a) On September 8, 2017, we entered into the Rocky River Funding LSA with certain third party lenders. We may borrow up to a maximum principal balance of $250 million under the Rocky River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of OMFH. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2020. (b) Concurrent with the termination of the note purchase agreements with the Midbrook 2013-VFN1 Trust and the OneMain Financial B5 Warehouse Trust discussed below, on April 13, 2017, we entered into the OneMain Financial Funding VII LSA with the same third party lenders who were parties to the terminated note purchase agreements. We may borrow up to a maximum principal balance of $ 650 million under the OneMain Financial Funding VII LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries of OMFH from time to time. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in November 2021. (c) Concurrent with the termination of the note purchase agreement with the Sumner Brook 2013-VFN1 Trust discussed below, on June 29, 2017, we entered into the Thur River Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $350 million under the Thur River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of SFC from time to time. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in February 2027. (d) Concurrent with the termination of the note purchase agreements with the Whitford Brook 2014-VFN1 Trust and OneMain Financial B3 Warehouse Trust discussed below, on July 14, 2017, we entered into the OneMain Financial Funding IX LSA with the same third party lenders who were parties to the terminated note purchase agreements. We may borrow up to a maximum principal balance of $ 600 million under the OneMain Financial Funding IX LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries of OMFH from time to time. Following the revolving period, the principal balance of the outstanding loans, 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 2021. (e) Concurrent with the termination of the note purchase agreement with the Springleaf 2013-VFN1 Trust discussed below, on September 28, 2017, we entered into the Mystic River Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $850 million under the Mystic River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of SFC. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2023. (f) Concurrent with the termination of the note purchase agreement with the Second Avenue Funding, LLC discussed below, on September 29, 2017, we entered into the Fourth Avenue Auto Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $250 million under the Fourth Avenue Auto Funding LSA, and amounts borrowed will be backed by auto loans acquired from subsidiaries and affiliates of SFC. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2021. Midbrook 2013-VFN1 Trust. On April 13, 2017, Midbrook 2013-VFN1 Trust voluntarily terminated its note purchase agreement with its lenders. OneMain Financial B5 Warehouse Trust. On April 13, 2017, OneMain Financial B5 Warehouse Trust voluntarily terminated its note purchase agreement with its lenders. Sumner Brook 2013-VFN1 Trust. On June 29, 2017, Sumner Brook 2013-VFN1 Trust voluntarily terminated its note purchase agreement with its lenders. Whitford Brook 2014 VFN1 Trust. On July 14, 2017, Whitford Brook 2014 VFNI Trust voluntarily terminated its note purchase agreement with its lenders. OneMain Financial B3 Warehouse Trust. On July 14, 2017, OneMain Financial B3 Warehouse Trust voluntarily terminated its note purchase agreement with its lenders. Springleaf 2013-VFN1 Trust. On September 28, 2017, Springleaf 2013-VFN1 Trust voluntarily terminated its note purchase agreement with its lenders. Second Avenue Funding LLC. On September 29, 2017, Second Avenue Funding, LLC voluntarily terminated its note purchase agreement with its lenders. VIE INTEREST EXPENSE Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs for the three and nine months ended September 30, 2017 totaled $81 million and $239 million , respectively, compared to $81 million and $261 million for the three and nine months ended September 30, 2016 , respectively. DECONSOLIDATED VIES As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt. |
Insurance
Insurance | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Insurance | Insurance Changes in the reserve for unpaid claims and loss adjustment expenses were as follows: At or for the (dollars in millions) 2017 2016 Balance at beginning of period $ 158 $ 177 Less reinsurance recoverables (26 ) (26 ) Net balance at beginning of period 132 151 Additions for losses and loss adjustment expenses incurred to: Current year 149 165 Prior years * — (21 ) Total 149 144 Reductions for losses and loss adjustment expenses paid related to: Current year (82 ) (87 ) Prior years (69 ) (67 ) Total (151 ) (154 ) Foreign currency translation adjustment (1 ) — Net balance at end of period 129 141 Plus reinsurance recoverables 25 27 Balance at end of period $ 154 $ 168 * Reflects (i) a redundancy in the prior years’ net reserves of less than $1 million at September 30, 2017 primarily due to favorable development on ordinary life and credit disability during the year and (ii) a redundancy in the prior years’ net reserves of $21 million at September 30, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The computation of earnings per share was as follows: (dollars in millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator (basic and diluted): Net income attributable to OneMain Holdings, Inc. $ 69 $ 25 $ 144 $ 188 Denominator: Weighted average number of shares outstanding (basic) 135,253,493 134,730,251 135,240,664 134,717,870 Effect of dilutive securities * 457,719 256,883 358,705 231,467 Weighted average number of shares outstanding (diluted) 135,711,212 134,987,134 135,599,369 134,949,337 Earnings per share: Basic $ 0.52 $ 0.19 $ 1.07 $ 1.40 Diluted $ 0.51 $ 0.19 $ 1.07 $ 1.39 * We have excluded the following shares in the diluted earnings per share calculation for the three and nine months ended September 30, 2017 and 2016 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: • three months ended September 30, 2017 and 2016 , respectively: ◦ 69,321 and 573,658 performance-based shares ◦ 577,557 and 870,645 service-based shares • nine months ended September 30, 2017 and 2016 , respectively: ◦ 41,698 and 576,437 performance-based shares ◦ 709,503 and 960,032 service-based shares Basic earnings per share is computed by dividing net income 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 RSUs and RSAs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
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) Three Months Ended September 30, 2017 Balance at beginning of period $ 6 $ (4 ) $ 1 $ 3 Other comprehensive income before reclassifications 2 — 2 4 Reclassification adjustments from accumulated other comprehensive income (loss) (2 ) — — (2 ) Balance at end of period $ 6 $ (4 ) $ 3 $ 5 Three Months Ended September 30, 2016 Balance at beginning of period $ 20 $ (19 ) $ 4 $ 5 Other comprehensive income before reclassifications 6 — — 6 Reclassification adjustments from accumulated other comprehensive income (loss) (2 ) — (5 ) (7 ) Balance at end of period $ 24 $ (19 ) $ (1 ) $ 4 Nine Months Ended September 30, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 15 — 4 19 Reclassification adjustments from accumulated other comprehensive income (loss) (8 ) — — (8 ) Balance at end of period $ 6 $ (4 ) $ 3 $ 5 Nine Months Ended September 30, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 44 — 4 48 Reclassification adjustments from accumulated other comprehensive income (loss) (6 ) — (5 ) (11 ) Balance at end of period $ 24 $ (19 ) $ (1 ) $ 4 Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 4 $ 3 $ 12 $ 9 Income tax effect (2 ) (1 ) (4 ) (3 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 2 2 8 6 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 5 — 5 Total $ 2 $ 7 $ 8 $ 11 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At September 30, 2017 , we had a net deferred tax asset of $202 million , compared to $176 million at December 31, 2016 . The increase in net deferred tax asset of $26 million was primarily due to tax recognition of the 2014 fair value adjustment of our real estate portfolio and purchase accounting for debt writedown, partially offset by amortization of goodwill for tax purposes. The effective tax rate for the nine months ended September 30, 2017 was 40.8% , compared to 33.9% for the same period in 2016 . The effective tax rate for the nine months ended September 30, 2017 differed from the federal statutory rate primarily due to the effect of state income taxes and discrete expense from the 2016 tax year return-to-provision adjustment. The effective tax rate for the nine months ended September 30, 2016 differed from the federal statutory rate primarily due to the effect of the non-controlling interests in the previously owned SpringCastle Portfolio, partially offset by the effect of state income taxes. We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the Internal Revenue Service. We are also under examination of various states for the years 2011 to 2016. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $18 million at September 30, 2017 and $16 million at December 31, 2016 . We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our 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 evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. 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 condensed 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 condensed consolidated financial statements as a whole. Federal Securities Class Actions On February 10, 2017, a putative class action lawsuit, Galestan v. OneMain Holdings, Inc., et al. , was filed in the U.S. District Court for the Southern District of New York, naming as defendants the Company and two of its officers. The lawsuit alleges violations of the Exchange Act for allegedly making materially misleading statements and/or omitting material information concerning alleged integration issues after the acquisition of OMFH in November 2015, and was filed on behalf of a putative class of persons who purchased or otherwise acquired the Company’s common stock between February 25, 2016 and November 7, 2016. The complaint seeks an award of unspecified compensatory damages, an award of interest, reasonable attorneys’ fees, expert fees and other costs, and equitable relief as the court may deem just and proper. On March 23, 2017, the court appointed a lead plaintiff for the putative class and approved the lead plaintiff’s selection of counsel. The plaintiff filed an amended complaint on June 13, 2017, challenging statements regarding the Company’s projections of future financial performance and certain statements regarding integration after the OneMain Acquisition. On September 29, 2017, pursuant to the Court’s Individual Rules and Practices, we sought permission to file a motion to dismiss the amended complaint. The Company believes that the allegations specified in the amended complaint are without merit, and intends to vigorously defend against the claims. As the lawsuit is in the preliminary stages, the Company is unable to estimate a reasonably possible range of loss, if any, that may result from the lawsuit. SALES RECOURSE OBLIGATIONS At September 30, 2017 , our reserve for sales recourse obligations totaled $13 million , which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish any additional reserves for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction. During the three and nine months ended September 30, 2017 and 2016 , we had no material repurchase activity related to these sales and no material activity related to our sales recourse obligations. At September 30, 2017 , there were no material repurchase requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When 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. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans During the three and nine months ended September 30, 2017 and 2016 , the components of net periodic benefit cost with respect to our defined benefit pension plans were immaterial. We do not currently fund post retirement benefits. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At September 30, 2017 , our two segments included: • Consumer and Insurance — We originate and service personal loans (secured and unsecured) through our branch network and our centralized operations. We offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance) and non-credit insurance. We also offer auto membership plans of an unaffiliated company. Our branch network conducts business in 44 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is “in footprint,” located near an existing branch, 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 “out of footprint,” not located near a branch, our centralized operations originate the loan. • Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired through the SpringCastle Joint Venture. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the sale of our equity interest in the SpringCastle Joint Venture. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include 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. Unless we are terminated, we will continue to provide the servicing for these loans pursuant to a servicing agreement, which we service as unsecured loans because the liens are subordinated to superior ranking security interests. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i) our liquidating real estate loan portfolio as discussed below, (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation), and (iii) our short equity personal loans that we are no longer originating. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. The accounting policies of the segments are the same as those disclosed in Note 3 to the consolidated financial statements of our 2016 Annual Report on Form 10-K, except as described below. Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, and Other using the Segment Accounting Basis, 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 (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). We record revenues and expenses (on a Segment Accounting Basis) directly incurred by a specific segment within the applicable segment. We allocate revenues and expenses that are not directly incurred by a specific segment to each segment using the following methodologies: Interest expense Consumer and Insurance and Other - Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt is allocated as follows: l Other - At 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) l Consumer and Insurance - Receives remainder of unallocated average debt. Provision for finance receivable losses Allocated to each of the segments based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Allocated to each of the segments based on services provided. Other expenses Salaries and benefits - Allocated to each of the segments based on services provided. Other operating expenses - Allocated to each of the segments based on services provided. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. The following tables present information about the Company’s segments, as well as reconciliations to the condensed consolidated financial statement amounts. (dollars in millions) Consumer Acquisitions Other * Eliminations Segment to Consolidated Three Months Ended September 30, 2017 Interest income $ 831 $ — $ 6 $ — $ (29 ) $ 808 Interest expense 195 — 5 — 7 207 Provision for finance receivable losses 245 — 6 — (8 ) 243 Net interest income (loss) after provision for finance receivable losses 391 — (5 ) — (28 ) 358 Other revenues 145 10 (1 ) — (2 ) 152 Acquisition-related transaction and integration expenses 22 — — — — 22 Other expenses 343 10 7 — 7 367 Income (loss) before income tax expense (benefit) $ 171 $ — $ (13 ) $ — $ (37 ) $ 121 Three Months Ended September 30, 2016 Interest income $ 827 $ — $ 11 $ — $ (68 ) $ 770 Interest expense 191 — 9 — 15 215 Provision for finance receivable losses 224 — 1 — 38 263 Net interest income after provision for finance receivable losses 412 — 1 — (121 ) 292 Other revenues 151 12 (17 ) — 12 158 Acquisition-related transaction and integration expenses 17 — 5 — (1 ) 21 Other expenses 367 10 9 — 10 396 Income (loss) before income tax expense (benefit) $ 179 $ 2 $ (30 ) $ — $ (118 ) $ 33 At or for the Nine Months Ended September 30, 2017 Interest income $ 2,430 $ — $ 18 $ — $ (109 ) $ 2,339 Interest expense 570 — 16 — 26 612 Provision for finance receivable losses 718 — 7 — (1 ) 724 Net interest income (loss) after provision for finance receivable losses 1,142 — (5 ) — (134 ) 1,003 Other revenues 409 32 — — (27 ) 414 Acquisition-related transaction and integration expenses 56 — 6 — (3 ) 59 Other expenses 1,038 31 23 — 22 1,114 Income (loss) before income tax expense (benefit) $ 457 $ 1 $ (34 ) $ — $ (180 ) $ 244 Assets $ 16,916 $ 4 $ 304 $ — $ 1,826 $ 19,050 At or for the Nine Months Ended September 30, 2016 Interest income $ 2,507 $ 102 $ 43 $ — $ (310 ) $ 2,342 Interest expense 551 20 37 — 47 655 Provision for finance receivable losses 669 14 5 — (14 ) 674 Net interest income after provision for finance receivable losses 1,287 68 1 — (343 ) 1,013 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues 467 36 (35 ) (11 ) 2 459 Acquisition-related transaction and integration expenses 62 1 20 — (8 ) 75 Other expenses 1,140 47 21 (11 ) 40 1,237 Income (loss) before income tax expense (benefit) 552 223 (75 ) — (373 ) 327 Income before income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 552 $ 195 $ (75 ) $ — $ (373 ) $ 299 Assets $ 15,728 $ 5 $ 613 $ — $ 2,007 $ 18,353 * Real Estate segment has been combined with “Other” for the prior period. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
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. 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 Total (dollars in millions) Level 1 Level 2 Level 3 September 30, 2017 Assets Cash and cash equivalents $ 772 $ 144 $ — $ 916 $ 916 Investment securities 38 1,623 7 1,668 1,668 Net finance receivables, less allowance for finance receivable losses — — 14,966 14,966 13,798 Finance receivables held for sale — — 141 141 137 Restricted cash and restricted cash equivalents 571 — — 571 571 Other assets * — 2 12 14 14 Liabilities Long-term debt $ — $ 15,322 $ — $ 15,322 $ 14,619 December 31, 2016 Assets Cash and cash equivalents $ 506 $ 73 $ — $ 579 $ 579 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,891 13,891 13,043 Finance receivables held for sale — — 159 159 153 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets * — 1 34 35 37 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 * Includes commercial mortgage loans, escrow advance receivable, and receivables related to sales of real estate loans and related trust assets. 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 (a) September 30, 2017 Assets Cash equivalents in mutual funds $ 490 $ — $ — $ 490 Cash equivalents in securities — 144 — 144 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 30 — 30 Obligations of states, municipalities, and political subdivisions — 136 — 136 Certificates of deposit and commercial paper — 45 — 45 Non-U.S. government and government sponsored entities — 124 — 124 Corporate debt — 920 — 920 RMBS — 92 — 92 CMBS — 96 — 96 CDO/ABS — 93 1 94 Total bonds — 1,536 1 1,537 Preferred stock 8 8 — 16 Common stock 24 — — 24 Other long-term investments — — 1 1 Total available-for-sale securities (b) 32 1,544 2 1,578 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 73 4 77 RMBS — 1 — 1 CDO/ABS — 4 — 4 Total bonds — 79 4 83 Preferred stock 6 — — 6 Total other securities 6 79 4 89 Total investment securities 38 1,623 6 1,667 Restricted cash in mutual funds 557 — — 557 Total $ 1,085 $ 1,767 $ 6 $ 2,858 (a) Due to the insignificant activity within the Level 3 assets during the three and nine months ended September 30, 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at September 30, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 307 $ — $ — $ 307 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 891 $ 1,797 $ 8 $ 2,696 (a) Due to the insignificant activity within the Level 3 assets during 2016, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. We had no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2017 . 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. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial for the three and nine months ended September 30, 2017 and 2016. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 23 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in our 2016 Annual Report on Form 10-K for information regarding our methods and assumptions used to estimate fair value. |
Business and Basis of Present25
Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using GAAP. These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly owned, except for certain indirect subsidiaries associated with the SpringCastle Joint Venture, in which we owned a 47% equity interest prior to March 31, 2016), and 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 condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed 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 2017 presentation, we have reclassified certain items in prior periods of our condensed consolidated statements of cash flows. Also, to conform to the new alignment of our segments, as further discussed in Note 16 , we have revised our prior period segment disclosures. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2016 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed below. |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED AND TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for annual periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact 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 recognition 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 the Company for annual periods beginning January 1, 2018. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09. ASU 2016-08 does not change the core principles of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial liabilities, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective for annual periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases . The ASU requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2016, the Company had approximately $180 million of minimum lease commitments from these operating leases (refer to Note 19 of our 2016 Annual Report on Form 10-K). We believe the adoption of this ASU will have a material impact on our consolidated financial statements, and we are in the process of quantifying the expected impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. The expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of developing an acceptable model to estimate the expected credit losses. We believe the adoption of this ASU will have a material impact on our consolidated financial statements, and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 from the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during the nine months ended September 30, 2017 , but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
SEGMENT ACCOUNTING | We record revenues and expenses (on a Segment Accounting Basis) directly incurred by a specific segment within the applicable segment. We allocate revenues and expenses that are not directly incurred by a specific segment to each segment using the following methodologies: Interest expense Consumer and Insurance and Other - Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt is allocated as follows: l Other - At 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) l Consumer and Insurance - Receives remainder of unallocated average debt. Provision for finance receivable losses Allocated to each of the segments based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Allocated to each of the segments based on services provided. Other expenses Salaries and benefits - Allocated to each of the segments based on services provided. Other operating expenses - Allocated to each of the segments based on services provided. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Real Estate Loans Retail Total September 30, 2017 Gross receivables * $ 15,804 $ 132 $ 8 $ 15,944 Unearned finance charges and points and fees (1,742 ) — (1 ) (1,743 ) Accrued finance charges 187 1 — 188 Deferred origination costs 107 — — 107 Total $ 14,356 $ 133 $ 7 $ 14,496 December 31, 2016 Gross receivables * $ 15,405 $ 142 $ 12 $ 15,559 Unearned finance charges and points and fees (2,062 ) 1 (1 ) (2,062 ) Accrued finance charges 151 1 — 152 Deferred origination costs 83 — — 83 Total $ 13,577 $ 144 $ 11 $ 13,732 * 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 premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial 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; • 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; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. |
Summary of net finance receivables by type and by days delinquent | The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Real Estate Loans Retail Total September 30, 2017 Net finance receivables: Performing Current $ 13,719 $ 103 $ 7 $ 13,829 30-59 days past due 208 8 — 216 60-89 days past due 134 2 — 136 Total performing 14,061 113 7 14,181 Nonperforming 90-179 days past due 289 4 — 293 180 days or more past due 6 16 — 22 Total nonperforming 295 20 — 315 Total $ 14,356 $ 133 $ 7 $ 14,496 December 31, 2016 Net finance receivables: Performing Current $ 12,920 $ 102 $ 11 $ 13,033 30-59 days past due 174 9 — 183 60-89 days past due 130 4 — 134 Total performing 13,224 115 11 13,350 Nonperforming 90-179 days past due 349 8 — 357 180 days or more past due 4 21 — 25 Total nonperforming 353 29 — 382 Total $ 13,577 $ 144 $ 11 $ 13,732 |
Schedule of purchased credit impaired finance receivables held for investment and held for sale | Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans FA Loans (a) Total September 30, 2017 Carrying amount, net of allowance $ 199 $ 60 $ 259 Outstanding balance (b) 281 97 378 Allowance for purchased credit impaired finance receivable losses 18 9 27 December 31, 2016 Carrying amount, net of allowance $ 324 $ 70 $ 394 Outstanding balance (b) 444 107 551 Allowance for purchased credit impaired finance receivable losses 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 Carrying amount $ 46 $ 54 Outstanding balance 75 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. |
Purchased credit impaired FA Loans held for sale | Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 Carrying amount $ 46 $ 54 Outstanding balance 75 83 |
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale | 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 Three Months Ended September 30, 2017 Balance at beginning of period $ 49 $ — $ 55 $ 104 Accretion (7 ) — (1 ) (8 ) Balance at end of period $ 42 $ — $ 54 $ 96 Three Months Ended September 30, 2016 Balance at beginning of period $ 87 $ — $ 61 $ 148 Accretion (15 ) — (1 ) (16 ) Reclassifications from nonaccretable difference (a) — — 8 8 Transfers due to finance receivables sold — — (11 ) (11 ) Balance at end of period $ 72 $ — $ 57 $ 129 Nine Months Ended September 30, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (b) (27 ) — (4 ) (31 ) Reclassifications from (to) nonaccretable difference (a) 10 — (2 ) 8 Balance at end of period $ 42 $ — $ 54 $ 96 Nine Months Ended September 30, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (b) (56 ) (16 ) (5 ) (77 ) Reclassification from nonaccretable difference (a) — — 7 7 Transfer due to finance receivables sold — (359 ) (11 ) (370 ) Other (c) (23 ) — — (23 ) Balance at end of period $ 72 $ — $ 57 $ 129 (a) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (b) Accretion on our purchased credit impaired FA Loans held for sale was $3 million and $4 million for the nine months ended September 30, 2017 and 2016, respectively. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. |
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 Real Estate Total September 30, 2017 TDR gross finance receivables $ 283 $ 141 $ 424 TDR net finance receivables 284 142 426 Allowance for TDR finance receivable losses 131 12 143 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 * TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 TDR gross finance receivables $ 91 $ 89 TDR net finance receivables 92 90 |
TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) September 30, December 31, 2016 TDR gross finance receivables $ 91 $ 89 TDR net finance receivables 92 90 |
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 | 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) Real Estate Loans (b) Total Three Months Ended September 30, 2017 TDR average net receivables $ 268 $ 142 $ 410 TDR finance charges recognized 9 3 12 Three Months Ended September 30, 2016 TDR average net receivables $ 102 $ 159 $ 261 TDR finance charges recognized 4 3 7 Nine Months Ended September 30, 2017 TDR average net receivables $ 206 $ 139 $ 345 TDR finance charges recognized 24 7 31 Nine Months Ended September 30, 2016 TDR average net receivables $ 83 $ 187 $ 270 TDR finance charges recognized 7 9 16 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Three Months Ended September 30, 2017 TDR average net receivables $ 92 TDR finance charges recognized 2 Three Months Ended September 30, 2016 TDR average net receivables $ 112 TDR finance charges recognized 2 Nine Months Ended September 30, 2017 TDR average net receivables $ 90 TDR finance charges recognized 5 Nine Months Ended September 30, 2016 TDR average net receivables $ 105 TDR finance charges recognized 5 |
TDR average net receivables held for sale and finance charges recognized on TDR finance receivables held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Three Months Ended September 30, 2017 TDR average net receivables $ 92 TDR finance charges recognized 2 Three Months Ended September 30, 2016 TDR average net receivables $ 112 TDR finance charges recognized 2 Nine Months Ended September 30, 2017 TDR average net receivables $ 90 TDR finance charges recognized 5 Nine Months Ended September 30, 2016 TDR average net receivables $ 105 TDR finance charges recognized 5 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | 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 Three Months Ended September 30, 2017 Pre-modification TDR net finance receivables $ 77 $ — $ 1 $ 78 Post-modification TDR net finance receivables: Rate reduction $ 60 $ — $ 2 $ 62 Other (b) 17 — — 17 Total post-modification TDR net finance receivables $ 77 $ — $ 2 $ 79 Number of TDR accounts 11,272 — 63 11,335 Three Months Ended September 30, 2016 Pre-modification TDR net finance receivables $ 48 $ — $ 3 $ 51 Post-modification TDR net finance receivables: Rate reduction $ 43 $ — $ 3 $ 46 Other (b) 3 — 1 4 Total post-modification TDR net finance receivables $ 46 $ — $ 4 $ 50 Number of TDR accounts 6,241 — 86 6,327 Nine Months Ended September 30, 2017 Pre-modification TDR net finance receivables $ 236 $ — $ 14 $ 250 Post-modification TDR net finance receivables: Rate reduction $ 178 $ — $ 15 $ 193 Other (b) 56 — — 56 Total post-modification TDR net finance receivables $ 234 $ — $ 15 $ 249 Number of TDR accounts 32,293 — 477 32,770 Nine Months Ended September 30, 2016 Pre-modification TDR net finance receivables $ 148 $ 1 $ 13 $ 162 Post-modification TDR net finance receivables: Rate reduction $ 136 $ 1 $ 11 $ 148 Other (b) 8 — 3 11 Total post-modification TDR net finance receivables $ 144 $ 1 $ 14 $ 159 Number of TDR accounts 19,866 157 291 20,314 (a) TDR finance receivables held for sale included in the table above were immaterial. (b) “Other” modifications primarily include forgiveness of principal or interest. |
Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Personal loans held for investment and held for sale that were modified as TDR personal loans within the previous 12 months and for which there was a default during the period to cause the TDR personal loans to be considered nonperforming (90 days or more past due) were as follows: (dollars in millions) Personal Loans Three Months Ended September 30, 2017 TDR net finance receivables * $ 21 Number of TDR accounts 3,759 Three Months Ended September 30, 2016 TDR net finance receivables * $ 7 Number of TDR accounts 1,080 Nine Months Ended September 30, 2017 TDR net finance receivables * $ 63 Number of TDR accounts 10,357 Nine Months Ended September 30, 2016 TDR net finance receivables * $ 13 Number of TDR accounts 2,120 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva27
Allowance for Finance Receivable Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [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 SpringCastle Portfolio Real Estate Loans Retail Consolidated Total Three Months Ended September 30, 2017 Balance at beginning of period $ 656 $ — $ 19 $ 1 $ 676 Provision for finance receivable losses 238 — 5 — 243 Charge-offs (245 ) — (1 ) — (246 ) Recoveries 24 — 1 — 25 Balance at end of period $ 673 $ — $ 24 $ 1 $ 698 Three Months Ended September 30, 2016 Balance at beginning of period $ 587 $ — $ 20 $ 1 $ 608 Provision for finance receivable losses 261 — 2 — 263 Charge-offs (213 ) — (4 ) — (217 ) Recoveries 17 — 1 — 18 Balance at end of period $ 652 $ — $ 19 $ 1 $ 672 Nine Months Ended September 30, 2017 Balance at beginning of period $ 669 $ — $ 19 $ 1 $ 689 Provision for finance receivable losses 717 — 7 — 724 Charge-offs (794 ) — (4 ) — (798 ) Recoveries 81 — 2 — 83 Balance at end of period $ 673 $ — $ 24 $ 1 $ 698 Nine Months Ended September 30, 2016 Balance at beginning of period $ 541 $ 4 $ 46 $ 1 $ 592 Provision for finance receivable losses 652 14 8 — 674 Charge-offs (585 ) (17 ) (10 ) (1 ) (613 ) Recoveries 44 3 4 1 52 Other * — (4 ) (29 ) — (33 ) Balance at end of period $ 652 $ — $ 19 $ 1 $ 672 * Other consists of: • the elimination of allowance for finance receivable losses due to the transfer of real estate loans held for investment to finance receivables held for sale on June 30, 2016; and • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the SpringCastle Interests Sale. |
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 Real Estate Loans Retail Total September 30, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 524 $ 3 $ 1 $ 528 Purchased credit impaired finance receivables 18 9 — 27 TDR finance receivables 131 12 — 143 Total $ 673 $ 24 $ 1 $ 698 Finance receivables: Collectively evaluated for impairment $ 13,855 $ 60 $ 7 $ 13,922 Purchased credit impaired finance receivables 217 23 — 240 TDR finance receivables 284 50 — 334 Total $ 14,356 $ 133 $ 7 $ 14,496 Allowance for finance receivable losses as a percentage of finance receivables 4.69 % 18.19 % 8.96 % 4.81 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 571 $ — $ 1 $ 572 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 669 $ 19 $ 1 $ 689 Finance receivables: Collectively evaluated for impairment $ 13,072 $ 76 $ 11 $ 13,159 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,577 $ 144 $ 11 $ 13,732 Allowance for finance receivable losses as a percentage of finance receivables 4.93 % 13.31 % 4.42 % 5.01 % |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
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 September 30, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 30 $ — $ — $ 30 Obligations of states, municipalities, and political subdivisions 135 1 — 136 Certificates of deposit and commercial paper 45 — — 45 Non-U.S. government and government sponsored entities 126 — (2 ) 124 Corporate debt 910 13 (3 ) 920 Mortgage-backed, asset-backed, and collateralized: RMBS 92 — — 92 CMBS 97 — (1 ) 96 CDO/ABS 94 — — 94 Total bonds 1,529 14 (6 ) 1,537 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 22 2 — 24 Other long-term investments 1 — — 1 Total (b) $ 1,569 $ 16 $ (7 ) $ 1,578 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at September 30, 2017 and December 31, 2016 , which is classified as a restricted investment and carried at cost. |
Schedule of fair value and unrealized losses on investment 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 September 30, 2017 Bonds: U.S. government and government sponsored entities $ 18 $ — $ 4 $ — $ 22 $ — Obligations of states, municipalities, and political subdivisions 29 — 18 — 47 — Non-U.S. government and government sponsored entities 104 (2 ) 3 — 107 (2 ) Corporate debt 204 (2 ) 90 (1 ) 294 (3 ) RMBS 35 — 23 — 58 — CMBS 34 — 33 (1 ) 67 (1 ) CDO/ABS 38 — 21 — 59 — Total bonds 462 (4 ) 192 (2 ) 654 (6 ) Preferred stock 5 — 7 (1 ) 12 (1 ) Common stock 5 — — — 5 — Other long-term investments 1 — — — 1 — Total $ 473 $ (4 ) $ 199 $ (3 ) $ 672 $ (7 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. |
Schedule of realized gains, realized losses, and net realized gains 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 net realized gains were as follows: (dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales and redemptions $ 157 $ 57 $ 437 $ 344 Realized gains $ 4 $ 3 $ 13 $ 10 Realized losses — — (1 ) (1 ) Net realized gains $ 4 $ 3 $ 12 $ 9 |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2017 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 $ 212 $ 212 Due after 1 year through 5 years 550 548 Due after 5 years through 10 years 301 298 Due after 10 years 192 188 Mortgage-backed, asset-backed, and collateralized securities 282 283 Total $ 1,537 $ 1,529 |
Schedule of fair value of trading securities by type | The fair value of other securities by type was as follows: (dollars in millions) September 30, December 31, Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 77 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 83 93 Preferred stock 6 6 Total $ 89 $ 99 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
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 September 30, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.03% - 7.50% 5.25% - 8.25% 3.05 % Fourth quarter 2017 $ — $ 557 $ — $ 557 2018 — — — — 2019 — 1,396 — 1,396 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 300 350 650 Securitizations (b) 8,599 — — 8,599 Total principal maturities $ 8,599 $ 5,998 $ 350 $ 14,947 Total carrying amount $ 8,577 $ 5,870 $ 172 $ 14,619 Debt issuance costs (c) $ (23 ) $ (21 ) $ — $ (44 ) (a) The interest rates shown are the range of contractual rates in effect at September 30, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.05% as of September 30, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At September 30, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $19 million at September 30, 2017 and are reported in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | Our securitized borrowings at September 30, 2017 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2015-A (a) $ 1,163 3.47 % 3 years SLFT 2015-B (b) 314 3.78 % 5 years SLFT 2016-A (c) 500 3.10 % 2 years SLFT 2017-A (d) 619 2.98 % 3 years OMFIT 2014-1 (e) 103 3.24 % 2 years OMFIT 2014-2 (f) 426 3.74 % 2 years OMFIT 2015-1 (g) 1,229 3.74 % 3 years OMFIT 2015-2 (h) 946 3.23 % 2 years OMFIT 2015-3 (i) 293 4.21 % 5 years OMFIT 2016-1 (j) 459 4.01 % 3 years OMFIT 2016-2 (k) 816 4.50 % 2 years OMFIT 2016-3 (l) 317 4.33 % 5 years OMFIT 2017-1 (m) 900 2.62 % 2 years Total consumer securitizations 8,085 Auto Securitizations: ODART 2016-1 (n) 246 2.70 % — ODART 2017-1 (o) 268 2.61 % 1 year Total auto securitizations 514 Total secured structured financings $ 8,599 (a) SLFT 2015-A Securitization. On February 26, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in November 2024. (b) SLFT 2015-B Securitization. On April 7, 2015, we issued $314 million of notes backed by personal loans. The notes mature in May 2028. (c) SLFT 2016-A Securitization. On December 14, 2016, we issued $532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $32 million of the asset-backed notes. (d) SLFT 2017-A Securitization. On June 28, 2017, we issued $652 million of notes backed by personal loans. The notes mature in July 2030. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (e) OMFIT 2014-1 Securitization. On April 17, 2014, we issued $760 million of notes backed by personal loans. The notes mature in June 2024. (f) OMFIT 2014-2 Securitization. On July 30, 2014, we issued $1.2 billion of notes backed by personal loans. The notes mature in September 2024. (g) OMFIT 2015-1 Securitization. On February 5, 2015, we issued $1.2 billion of notes backed by personal loans. The notes mature in March 2026. (h) OMFIT 2015-2 Securitization. On May 21, 2015, we issued $1.3 billion of notes backed by personal loans. The notes mature in July 2025. (i) OMFIT 2015-3 Securitization. On September 29, 2015, we issued $293 million of notes backed by personal loans. The notes mature in November 2028. (j) OMFIT 2016-1 Securitization. On February 10, 2016, we issued $500 million of notes backed by personal loans. The notes mature in February 2029. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (k) OMFIT 2016-2 Securitization. On March 23, 2016, we issued $890 million of notes backed by personal loans. The notes mature in March 2028. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (l) OMFIT 2016-3 Securitization. On June 7, 2016, we issued $350 million of notes backed by personal loans. The notes mature in June 2031. We initially retained $33 million of the Class D notes. (m) OMFIT 2017-1 Securitization. On September 6, 2017, we issued $947 million of notes backed by personal loans. The notes mature in September 2032. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (n) ODART 2016-1 Securitization. On July 19, 2016, we issued $754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $54 million of the Class D notes. (o) ODART 2017-1 Securitization. On February 1, 2017, we issued $300 million of notes backed by direct auto loans. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) September 30, December 31, Assets Cash and cash equivalents $ 3 $ 3 Finance receivables: Personal loans 9,752 9,509 Allowance for finance receivable losses 463 501 Restricted cash and restricted cash equivalents 553 552 Other assets 13 14 Liabilities Long-term debt $ 8,577 $ 8,240 Other liabilities 16 16 |
Schedule of line of credit facilities | As of September 30, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Revolving First Avenue Funding, LLC $ 250 $ — June 2018 Seine River Funding, LLC 500 — December 2019 OneMain Financial B4 Warehouse Trust 750 — February 2019 OneMain Financial B6 Warehouse Trust 600 — February 2019 Rocky River Funding, LLC (a) 250 — September 2019 OneMain Financial Funding VII, LLC (b) 650 — October 2019 Thur River Funding, LLC (c) 350 — June 2020 OneMain Financial Funding IX, LLC (d) 600 — June 2020 Mystic River Funding, LLC (e) 850 — September 2020 Fourth Avenue Auto Funding, LLC (f) 250 — September 2020 Total $ 5,050 $ — 2017 Activity (a) On September 8, 2017, we entered into the Rocky River Funding LSA with certain third party lenders. We may borrow up to a maximum principal balance of $250 million under the Rocky River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of OMFH. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2020. (b) Concurrent with the termination of the note purchase agreements with the Midbrook 2013-VFN1 Trust and the OneMain Financial B5 Warehouse Trust discussed below, on April 13, 2017, we entered into the OneMain Financial Funding VII LSA with the same third party lenders who were parties to the terminated note purchase agreements. We may borrow up to a maximum principal balance of $ 650 million under the OneMain Financial Funding VII LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries of OMFH from time to time. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in November 2021. (c) Concurrent with the termination of the note purchase agreement with the Sumner Brook 2013-VFN1 Trust discussed below, on June 29, 2017, we entered into the Thur River Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $350 million under the Thur River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of SFC from time to time. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in February 2027. (d) Concurrent with the termination of the note purchase agreements with the Whitford Brook 2014-VFN1 Trust and OneMain Financial B3 Warehouse Trust discussed below, on July 14, 2017, we entered into the OneMain Financial Funding IX LSA with the same third party lenders who were parties to the terminated note purchase agreements. We may borrow up to a maximum principal balance of $ 600 million under the OneMain Financial Funding IX LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries of OMFH from time to time. Following the revolving period, the principal balance of the outstanding loans, 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 2021. (e) Concurrent with the termination of the note purchase agreement with the Springleaf 2013-VFN1 Trust discussed below, on September 28, 2017, we entered into the Mystic River Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $850 million under the Mystic River Funding LSA, and amounts borrowed will be backed by personal loans acquired from subsidiaries and affiliates of SFC. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2023. (f) Concurrent with the termination of the note purchase agreement with the Second Avenue Funding, LLC discussed below, on September 29, 2017, we entered into the Fourth Avenue Auto Funding LSA with the same third party lenders who were parties to the terminated note purchase agreement. We may borrow up to a maximum principal balance of $250 million under the Fourth Avenue Auto Funding LSA, and amounts borrowed will be backed by auto loans acquired from subsidiaries and affiliates of SFC. Following the revolving period, the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in October 2021. |
Insurance (Tables)
Insurance (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
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 were as follows: At or for the (dollars in millions) 2017 2016 Balance at beginning of period $ 158 $ 177 Less reinsurance recoverables (26 ) (26 ) Net balance at beginning of period 132 151 Additions for losses and loss adjustment expenses incurred to: Current year 149 165 Prior years * — (21 ) Total 149 144 Reductions for losses and loss adjustment expenses paid related to: Current year (82 ) (87 ) Prior years (69 ) (67 ) Total (151 ) (154 ) Foreign currency translation adjustment (1 ) — Net balance at end of period 129 141 Plus reinsurance recoverables 25 27 Balance at end of period $ 154 $ 168 * Reflects (i) a redundancy in the prior years’ net reserves of less than $1 million at September 30, 2017 primarily due to favorable development on ordinary life and credit disability during the year and (ii) a redundancy in the prior years’ net reserves of $21 million at September 30, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per share | The computation of earnings per share was as follows: (dollars in millions, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator (basic and diluted): Net income attributable to OneMain Holdings, Inc. $ 69 $ 25 $ 144 $ 188 Denominator: Weighted average number of shares outstanding (basic) 135,253,493 134,730,251 135,240,664 134,717,870 Effect of dilutive securities * 457,719 256,883 358,705 231,467 Weighted average number of shares outstanding (diluted) 135,711,212 134,987,134 135,599,369 134,949,337 Earnings per share: Basic $ 0.52 $ 0.19 $ 1.07 $ 1.40 Diluted $ 0.51 $ 0.19 $ 1.07 $ 1.39 * We have excluded the following shares in the diluted earnings per share calculation for the three and nine months ended September 30, 2017 and 2016 because these shares would be anti-dilutive, which could impact the earnings per share calculation in the future: • three months ended September 30, 2017 and 2016 , respectively: ◦ 69,321 and 573,658 performance-based shares ◦ 577,557 and 870,645 service-based shares • nine months ended September 30, 2017 and 2016 , respectively: ◦ 41,698 and 576,437 performance-based shares ◦ 709,503 and 960,032 service-based shares |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income | 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) Three Months Ended September 30, 2017 Balance at beginning of period $ 6 $ (4 ) $ 1 $ 3 Other comprehensive income before reclassifications 2 — 2 4 Reclassification adjustments from accumulated other comprehensive income (loss) (2 ) — — (2 ) Balance at end of period $ 6 $ (4 ) $ 3 $ 5 Three Months Ended September 30, 2016 Balance at beginning of period $ 20 $ (19 ) $ 4 $ 5 Other comprehensive income before reclassifications 6 — — 6 Reclassification adjustments from accumulated other comprehensive income (loss) (2 ) — (5 ) (7 ) Balance at end of period $ 24 $ (19 ) $ (1 ) $ 4 Nine Months Ended September 30, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 15 — 4 19 Reclassification adjustments from accumulated other comprehensive income (loss) (8 ) — — (8 ) Balance at end of period $ 6 $ (4 ) $ 3 $ 5 Nine Months Ended September 30, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 44 — 4 48 Reclassification adjustments from accumulated other comprehensive income (loss) (6 ) — (5 ) (11 ) Balance at end of period $ 24 $ (19 ) $ (1 ) $ 4 |
Schedule of reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our condensed consolidated statements of operations were as follows: (dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Unrealized gains on available-for-sale securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 4 $ 3 $ 12 $ 9 Income tax effect (2 ) (1 ) (4 ) (3 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 2 2 8 6 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 5 — 5 Total $ 2 $ 7 $ 8 $ 11 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 condensed consolidated financial statement amounts. (dollars in millions) Consumer Acquisitions Other * Eliminations Segment to Consolidated Three Months Ended September 30, 2017 Interest income $ 831 $ — $ 6 $ — $ (29 ) $ 808 Interest expense 195 — 5 — 7 207 Provision for finance receivable losses 245 — 6 — (8 ) 243 Net interest income (loss) after provision for finance receivable losses 391 — (5 ) — (28 ) 358 Other revenues 145 10 (1 ) — (2 ) 152 Acquisition-related transaction and integration expenses 22 — — — — 22 Other expenses 343 10 7 — 7 367 Income (loss) before income tax expense (benefit) $ 171 $ — $ (13 ) $ — $ (37 ) $ 121 Three Months Ended September 30, 2016 Interest income $ 827 $ — $ 11 $ — $ (68 ) $ 770 Interest expense 191 — 9 — 15 215 Provision for finance receivable losses 224 — 1 — 38 263 Net interest income after provision for finance receivable losses 412 — 1 — (121 ) 292 Other revenues 151 12 (17 ) — 12 158 Acquisition-related transaction and integration expenses 17 — 5 — (1 ) 21 Other expenses 367 10 9 — 10 396 Income (loss) before income tax expense (benefit) $ 179 $ 2 $ (30 ) $ — $ (118 ) $ 33 At or for the Nine Months Ended September 30, 2017 Interest income $ 2,430 $ — $ 18 $ — $ (109 ) $ 2,339 Interest expense 570 — 16 — 26 612 Provision for finance receivable losses 718 — 7 — (1 ) 724 Net interest income (loss) after provision for finance receivable losses 1,142 — (5 ) — (134 ) 1,003 Other revenues 409 32 — — (27 ) 414 Acquisition-related transaction and integration expenses 56 — 6 — (3 ) 59 Other expenses 1,038 31 23 — 22 1,114 Income (loss) before income tax expense (benefit) $ 457 $ 1 $ (34 ) $ — $ (180 ) $ 244 Assets $ 16,916 $ 4 $ 304 $ — $ 1,826 $ 19,050 At or for the Nine Months Ended September 30, 2016 Interest income $ 2,507 $ 102 $ 43 $ — $ (310 ) $ 2,342 Interest expense 551 20 37 — 47 655 Provision for finance receivable losses 669 14 5 — (14 ) 674 Net interest income after provision for finance receivable losses 1,287 68 1 — (343 ) 1,013 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues 467 36 (35 ) (11 ) 2 459 Acquisition-related transaction and integration expenses 62 1 20 — (8 ) 75 Other expenses 1,140 47 21 (11 ) 40 1,237 Income (loss) before income tax expense (benefit) 552 223 (75 ) — (373 ) 327 Income before income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. $ 552 $ 195 $ (75 ) $ — $ (373 ) $ 299 Assets $ 15,728 $ 5 $ 613 $ — $ 2,007 $ 18,353 * Real Estate segment has been combined with “Other” for the prior period. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 Total (dollars in millions) Level 1 Level 2 Level 3 September 30, 2017 Assets Cash and cash equivalents $ 772 $ 144 $ — $ 916 $ 916 Investment securities 38 1,623 7 1,668 1,668 Net finance receivables, less allowance for finance receivable losses — — 14,966 14,966 13,798 Finance receivables held for sale — — 141 141 137 Restricted cash and restricted cash equivalents 571 — — 571 571 Other assets * — 2 12 14 14 Liabilities Long-term debt $ — $ 15,322 $ — $ 15,322 $ 14,619 December 31, 2016 Assets Cash and cash equivalents $ 506 $ 73 $ — $ 579 $ 579 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,891 13,891 13,043 Finance receivables held for sale — — 159 159 153 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets * — 1 34 35 37 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 * Includes commercial mortgage loans, escrow advance receivable, and receivables related to sales of real estate loans and related trust assets. |
Schedule of assets and liabilities measured at fair value on a 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 (a) September 30, 2017 Assets Cash equivalents in mutual funds $ 490 $ — $ — $ 490 Cash equivalents in securities — 144 — 144 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 30 — 30 Obligations of states, municipalities, and political subdivisions — 136 — 136 Certificates of deposit and commercial paper — 45 — 45 Non-U.S. government and government sponsored entities — 124 — 124 Corporate debt — 920 — 920 RMBS — 92 — 92 CMBS — 96 — 96 CDO/ABS — 93 1 94 Total bonds — 1,536 1 1,537 Preferred stock 8 8 — 16 Common stock 24 — — 24 Other long-term investments — — 1 1 Total available-for-sale securities (b) 32 1,544 2 1,578 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 73 4 77 RMBS — 1 — 1 CDO/ABS — 4 — 4 Total bonds — 79 4 83 Preferred stock 6 — — 6 Total other securities 6 79 4 89 Total investment securities 38 1,623 6 1,667 Restricted cash in mutual funds 557 — — 557 Total $ 1,085 $ 1,767 $ 6 $ 2,858 (a) Due to the insignificant activity within the Level 3 assets during the three and nine months ended September 30, 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at September 30, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 307 $ — $ — $ 307 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 891 $ 1,797 $ 8 $ 2,696 (a) Due to the insignificant activity within the Level 3 assets during 2016, we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. |
Business and Basis of Present36
Business and Basis of Presentation -- Ownership (Details) | Sep. 30, 2017 | Mar. 31, 2016 | Mar. 30, 2016 |
Majority Shareholder | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage by Initial Stockholder | 57.00% | ||
Corporate Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 47.00% | 47.00% |
Recent Accounting Pronounceme37
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) $ in Millions | Dec. 31, 2016USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Operating leases, future minimum payments due | $ 180 |
Finance Receivables (Details)
Finance Receivables (Details) loan in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Finance Receivables | ||
Personal loans | $ | $ 14,356 | $ 13,577 |
Personal Loans | Consumer household goods or other items of personal property | ||
Finance Receivables | ||
Number of personal loans | loan | 2.3 | 2.2 |
Personal Loans | Minimum | ||
Finance Receivables | ||
Finance receivables, original term (years) | 3 years | |
Personal Loans | Maximum | ||
Finance Receivables | ||
Finance receivables, original term (years) | 6 years | |
Real Estate Loans | Maximum | ||
Finance Receivables | ||
Finance receivables, original term (years) | 360 months | |
Retail Sales Finance | Maximum | ||
Finance Receivables | ||
Finance receivables, original term (years) | 60 months |
Finance Receivables -- Net Fina
Finance Receivables -- Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 15,944 | $ 15,559 |
Unearned finance charges and points and fees | (1,743) | (2,062) |
Accrued finance charges | 188 | 152 |
Deferred origination costs | 107 | 83 |
Net finance receivables | 14,496 | 13,732 |
Personal loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 15,804 | 15,405 |
Unearned finance charges and points and fees | (1,742) | (2,062) |
Accrued finance charges | 187 | 151 |
Deferred origination costs | 107 | 83 |
Net finance receivables | 14,356 | 13,577 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 132 | 142 |
Unearned finance charges and points and fees | 0 | 1 |
Accrued finance charges | 1 | 1 |
Deferred origination costs | 0 | 0 |
Net finance receivables | 133 | 144 |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 8 | 12 |
Unearned finance charges and points and fees | (1) | (1) |
Accrued finance charges | 0 | 0 |
Deferred origination costs | 0 | 0 |
Net finance receivables | $ 7 | $ 11 |
Finance Receivables -- Credit Q
Finance Receivables -- Credit Quality Indicators (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Unlikely to be Collected Financing Receivable | |
Financing Receivable, Recorded Investment [Line Items] | |
Threshold period past due for write-off of financing receivable | 60 days |
Nonperforming | |
Financing Receivable, Recorded Investment [Line Items] | |
Threshold period past due for write-off of financing receivable | 90 days |
Finance Receivables -- Delinque
Finance Receivables -- Delinquent and Nonperforming Finance Receivables (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Net finance receivables: | ||
Net finance receivables | $ 14,496 | $ 13,732 |
Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 14,356 | 13,577 |
Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 133 | 144 |
Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | $ 7 | 11 |
Threshold period past due for write-off of financing receivable | 180 days | |
Performing | ||
Net finance receivables: | ||
Net finance receivables | $ 14,181 | 13,350 |
Performing | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 14,061 | 13,224 |
Performing | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 113 | 115 |
Performing | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 7 | 11 |
Performing | Current | ||
Net finance receivables: | ||
Net finance receivables | 13,829 | 13,033 |
Performing | Current | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 13,719 | 12,920 |
Performing | Current | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 103 | 102 |
Performing | Current | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 7 | 11 |
Performing | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 216 | 183 |
Performing | 30-59 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 208 | 174 |
Performing | 30-59 days past due | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 8 | 9 |
Performing | 30-59 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Performing | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 136 | 134 |
Performing | 60-89 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 134 | 130 |
Performing | 60-89 days past due | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 2 | 4 |
Performing | 60-89 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming | ||
Net finance receivables: | ||
Net finance receivables | 315 | 382 |
Nonperforming | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 295 | 353 |
Nonperforming | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 20 | 29 |
Nonperforming | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | $ 0 | 0 |
Threshold period past due for write-off of financing receivable | 90 days | |
Nonperforming | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | $ 293 | 357 |
Nonperforming | 90-179 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 289 | 349 |
Nonperforming | 90-179 days past due | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 4 | 8 |
Nonperforming | 90-179 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 22 | 25 |
Nonperforming | 180 days or more past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 6 | 4 |
Nonperforming | 180 days or more past due | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 16 | 21 |
Nonperforming | 180 days or more past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables -- Purchase
Finance Receivables -- Purchased Credit Impaired Finance Receivables HFI and HFS (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Finance receivables held for sale | $ 137 | $ 153 |
Carrying amount, net of allowance | 259 | 394 |
Outstanding balance | 378 | 551 |
Allowance for purchased credit impaired finance receivable losses | 27 | 37 |
OM Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 199 | 324 |
Outstanding balance | 281 | 444 |
Allowance for purchased credit impaired finance receivable losses | 18 | 29 |
FA Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 60 | 70 |
Outstanding balance | 97 | 107 |
Allowance for purchased credit impaired finance receivable losses | 9 | 8 |
Carrying amount | 46 | 54 |
Outstanding balance | $ 75 | $ 83 |
Finance Receivables -- Changes
Finance Receivables -- Changes in Accretable Yield For Purchased Credit Impaired HFI and HFS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | $ 104 | $ 148 | $ 119 | $ 592 |
Accretion | (8) | (16) | (31) | (77) |
Reclassifications from (to) nonaccretable difference | 8 | 8 | 7 | |
Transfers due to finance receivables sold | (11) | (370) | ||
Other | (23) | |||
Balance at end of period | 96 | 129 | 96 | 129 |
OM Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 49 | 87 | 59 | 151 |
Accretion | (7) | (15) | (27) | (56) |
Reclassifications from (to) nonaccretable difference | 0 | 10 | 0 | |
Transfers due to finance receivables sold | 0 | 0 | ||
Other | (23) | |||
Balance at end of period | 42 | 72 | 42 | 72 |
SCP Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 0 | 0 | 0 | 375 |
Accretion | 0 | 0 | 0 | (16) |
Reclassifications from (to) nonaccretable difference | 0 | 0 | 0 | |
Transfers due to finance receivables sold | 0 | (359) | ||
Other | 0 | |||
Balance at end of period | 0 | 0 | 0 | 0 |
FA Loans | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 55 | 61 | 60 | 66 |
Accretion | (1) | (1) | (4) | (5) |
Reclassifications from (to) nonaccretable difference | 8 | (2) | 7 | |
Transfers due to finance receivables sold | (11) | (11) | ||
Other | 0 | |||
Balance at end of period | $ 54 | $ 57 | 54 | 57 |
Certain loans acquired in transfer not accounted for as debt securities, accretable yield, accretion, including held for sale | $ 3 | $ 4 |
Finance Receivables -- TDR Fina
Finance Receivables -- TDR Finance Receivable HFI and HFS (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 424,000,000 | $ 284,000,000 |
TDR net finance receivables | 426,000,000 | 286,000,000 |
Allowance for TDR finance receivable losses | 143,000,000 | 80,000,000 |
Commitment to lend additional funds on TDR finance receivables | 0 | |
Personal loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 283,000,000 | 151,000,000 |
TDR net finance receivables | 284,000,000 | 152,000,000 |
Allowance for TDR finance receivable losses | 131,000,000 | 69,000,000 |
Real Estate Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 141,000,000 | 133,000,000 |
TDR net finance receivables | 142,000,000 | 134,000,000 |
Allowance for TDR finance receivable losses | 12,000,000 | 11,000,000 |
TDR gross finance receivables | 91,000,000 | 89,000,000 |
TDR net finance receivables | $ 92,000,000 | $ 90,000,000 |
Finance Receivables -- TDR aver
Finance Receivables -- TDR average net receivables HFI and HFS and finance charges recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | $ 410 | $ 261 | $ 345 | $ 270 |
TDR finance charges recognized | 12 | 7 | 31 | 16 |
Personal loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | 268 | 102 | 206 | 83 |
TDR finance charges recognized | 9 | 4 | 24 | 7 |
Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR average net receivables | 142 | 159 | 139 | 187 |
TDR finance charges recognized | 3 | 3 | 7 | 9 |
TDR average net receivables, held for sale | 92 | 112 | 90 | 105 |
TDR finance charges recognized, held for sale | $ 2 | $ 2 | $ 5 | $ 5 |
Finance Receivables -- New Volu
Finance Receivables -- New Volume of TDR HFI & HFS Finance Receivables (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)account | Sep. 30, 2016USD ($)account | Sep. 30, 2017USD ($)account | Sep. 30, 2016USD ($)account | |
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | $ 78 | $ 51 | $ 250 | $ 162 |
Post-modification TDR net finance receivables | $ 79 | $ 50 | $ 249 | $ 159 |
Number of TDR accounts | account | 11,335 | 6,327 | 32,770 | 20,314 |
Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 62 | $ 46 | $ 193 | $ 148 |
Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | 17 | 4 | 56 | 11 |
Personal Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | 77 | 48 | 236 | 148 |
Post-modification TDR net finance receivables | $ 77 | $ 46 | $ 234 | $ 144 |
Number of TDR accounts | account | 11,272 | 6,241 | 32,293 | 19,866 |
Personal Loans | Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 60 | $ 43 | $ 178 | $ 136 |
Personal Loans | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | 17 | 3 | 56 | 8 |
SpringCastle Portfolio | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | 0 | 0 | 0 | 1 |
Post-modification TDR net finance receivables | $ 0 | $ 0 | $ 0 | $ 1 |
Number of TDR accounts | account | 0 | 0 | 0 | 157 |
SpringCastle Portfolio | Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 0 | $ 0 | $ 0 | $ 1 |
SpringCastle Portfolio | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | 0 | 0 | 0 | 0 |
Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Pre-modification TDR net finance receivables | 1 | 3 | 14 | 13 |
Post-modification TDR net finance receivables | $ 2 | $ 4 | $ 15 | $ 14 |
Number of TDR accounts | account | 63 | 86 | 477 | 291 |
Real Estate Loans | Rate reduction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 2 | $ 3 | $ 15 | $ 11 |
Real Estate Loans | Other | ||||
Financing Receivable, Modifications [Line Items] | ||||
Post-modification TDR net finance receivables | $ 0 | $ 1 | $ 0 | $ 3 |
Finance Receivables -- Modified
Finance Receivables -- Modified as TDR - non performing Finance Receivables (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)account | Sep. 30, 2016USD ($)account | Sep. 30, 2017USD ($)account | Sep. 30, 2016USD ($)account | |
Personal loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $ 21 | $ 7 | $ 63 | $ 13 |
Number of TDR accounts | account | 3,759 | 1,080 | 10,357 | 2,120 |
SpringCastle Portfolio | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables - held for sale | $ 0 | |||
Real Estate Loans Held for Sale | Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables - held for sale | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Finance Receiva48
Allowance for Finance Receivable Losses -- Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | $ 676 | $ 608 | $ 689 | $ 592 |
Provision for finance receivable losses | 243 | 263 | 724 | 674 |
Charge-offs | (246) | (217) | (798) | (613) |
Recoveries | 25 | 18 | 83 | 52 |
Other | (33) | |||
Balance at end of period | 698 | 672 | 698 | 672 |
Personal Loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 656 | 587 | 669 | 541 |
Provision for finance receivable losses | 238 | 261 | 717 | 652 |
Charge-offs | (245) | (213) | (794) | (585) |
Recoveries | 24 | 17 | 81 | 44 |
Other | 0 | |||
Balance at end of period | 673 | 652 | 673 | 652 |
SpringCastle Portfolio | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | 0 | 4 | |
Provision for finance receivable losses | 0 | 0 | 0 | 14 |
Charge-offs | 0 | 0 | 0 | (17) |
Recoveries | 0 | 0 | 0 | 3 |
Other | (4) | |||
Balance at end of period | 0 | 0 | 0 | 0 |
Real Estate Loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 19 | 20 | 19 | 46 |
Provision for finance receivable losses | 5 | 2 | 7 | 8 |
Charge-offs | (1) | (4) | (4) | (10) |
Recoveries | 1 | 1 | 2 | 4 |
Other | (29) | |||
Balance at end of period | 24 | 19 | 24 | 19 |
Retail Sales Finance | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 1 | 1 | 1 | 1 |
Provision for finance receivable losses | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | (1) |
Recoveries | 0 | 0 | 0 | 1 |
Other | 0 | |||
Balance at end of period | $ 1 | $ 1 | $ 1 | $ 1 |
Allowance for Finance Receiva49
Allowance for Finance Receivable Losses -- By Type and Impairment Method (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Collectively evaluated for impairment | $ 528 | $ 572 | ||||
Purchased credit impaired finance receivables | 27 | 37 | ||||
TDR finance receivables | 143 | 80 | ||||
Total | 698 | 689 | $ 676 | $ 672 | $ 608 | $ 592 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 13,922 | 13,159 | ||||
Purchased credit impaired finance receivables | 14,496 | 13,732 | ||||
TDR finance receivables | 334 | 196 | ||||
Net finance receivables | $ 14,496 | $ 13,732 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 4.81% | 5.01% | ||||
Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 240 | $ 377 | ||||
Net finance receivables | 240 | 377 | ||||
Personal Loans | ||||||
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Collectively evaluated for impairment | 524 | 571 | ||||
Purchased credit impaired finance receivables | 18 | 29 | ||||
TDR finance receivables | 131 | 69 | ||||
Total | 673 | 669 | 656 | 652 | 587 | 541 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 13,855 | 13,072 | ||||
Purchased credit impaired finance receivables | 14,356 | 13,577 | ||||
TDR finance receivables | 284 | 152 | ||||
Net finance receivables | $ 14,356 | $ 13,577 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 4.69% | 4.93% | ||||
Personal Loans | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 217 | $ 353 | ||||
Net finance receivables | 217 | 353 | ||||
Real Estate Loans | ||||||
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Collectively evaluated for impairment | 3 | 0 | ||||
Purchased credit impaired finance receivables | 9 | 8 | ||||
TDR finance receivables | 12 | 11 | ||||
Total | 24 | 19 | 19 | 19 | 20 | 46 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 60 | 76 | ||||
Purchased credit impaired finance receivables | 133 | 144 | ||||
TDR finance receivables | 50 | 44 | ||||
Net finance receivables | $ 133 | $ 144 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 18.19% | 13.31% | ||||
Real Estate Loans | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 23 | $ 24 | ||||
Net finance receivables | 23 | 24 | ||||
Retail Sales Finance | ||||||
Financing Receivable, Allowance for finance receivable losses [Line Items] | ||||||
Collectively evaluated for impairment | 1 | 1 | ||||
Purchased credit impaired finance receivables | 0 | 0 | ||||
TDR finance receivables | 0 | 0 | ||||
Total | 1 | 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 7 | 11 | ||||
Purchased credit impaired finance receivables | 7 | 11 | ||||
TDR finance receivables | 0 | 0 | ||||
Net finance receivables | $ 7 | $ 11 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 8.96% | 4.42% | ||||
Retail Sales Finance | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Purchased credit impaired finance receivables | $ 0 | $ 0 | ||||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables Held for 50
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2016 | May 02, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Aug. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivables held for sale | $ 137 | $ 137 | $ 153 | |||||||
Net gain on sale of SpringCastle interests | $ 167 | $ 0 | $ 0 | $ 0 | $ 167 | |||||
SpringCastle Portfolio | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Carrying value of finance receivables transferred from held for investment to held for sale | $ 1,600 | |||||||||
Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Carrying value of finance receivables transferred from held for investment to held for sale | $ 257 | |||||||||
Personal Loan Sale | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivable, sale, carrying value | $ 602 | |||||||||
Loans and leases receivable, gain (loss) on sales, net | $ 22 | |||||||||
Real Estate Sale | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Aggregate purchase price | $ 250 | |||||||||
Gain (loss) on sale of a portfolio of real estate loans | $ (4) |
Investment Securities -- Cost_A
Investment Securities -- Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | $ 1,569 | $ 1,666 |
Unrealized Gains | 16 | 10 |
Unrealized Losses | (7) | (12) |
Fair Value | 1,578 | 1,664 |
Restricted investments, at cost | 1 | 1 |
Bonds: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 1,529 | 1,631 |
Unrealized Gains | 14 | 9 |
Unrealized Losses | (6) | (11) |
Fair Value | 1,537 | 1,629 |
U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 30 | 31 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 30 | 31 |
Obligations of states, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 135 | 145 |
Unrealized Gains | 1 | 1 |
Unrealized Losses | 0 | (1) |
Fair Value | 136 | 145 |
Certificates of deposit and commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 45 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 45 | |
Non-U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 126 | 119 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (2) | (1) |
Fair Value | 124 | 118 |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 910 | 1,024 |
Unrealized Gains | 13 | 8 |
Unrealized Losses | (3) | (7) |
Fair Value | 920 | 1,025 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 92 | 101 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 92 | 100 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 97 | 109 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 96 | 108 |
CDO/ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 94 | 102 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 94 | 102 |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 17 | 17 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 16 | 16 |
Common Stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 22 | 16 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 24 | 17 |
Other long-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/ Amortized Cost | 1 | 2 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 2 |
Investment Securities -- FV & U
Investment Securities -- FV & Unrealized Losses on AFS Investment Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value | ||
Less Than 12 Months | $ 473,000,000 | $ 800,000,000 |
12 Months or Longer | 199,000,000 | 29,000,000 |
Total | 672,000,000 | 829,000,000 |
Unrealized Losses | ||
Less Than 12 Months | (4,000,000) | (10,000,000) |
12 Months or Longer | (3,000,000) | (2,000,000) |
Total | (7,000,000) | (12,000,000) |
Minimum disclosure of unrealized losses on certain available-for-sale securities (less than) | 1,000,000 | 1,000,000 |
Bonds: | ||
Fair Value | ||
Less Than 12 Months | 462,000,000 | 792,000,000 |
12 Months or Longer | 192,000,000 | 20,000,000 |
Total | 654,000,000 | 812,000,000 |
Unrealized Losses | ||
Less Than 12 Months | (4,000,000) | (10,000,000) |
12 Months or Longer | (2,000,000) | (1,000,000) |
Total | (6,000,000) | (11,000,000) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 18,000,000 | 18,000,000 |
12 Months or Longer | 4,000,000 | 0 |
Total | 22,000,000 | 18,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 29,000,000 | 99,000,000 |
12 Months or Longer | 18,000,000 | 2,000,000 |
Total | 47,000,000 | 101,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1,000,000) |
12 Months or Longer | 0 | 0 |
Total | 0 | (1,000,000) |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 104,000,000 | 55,000,000 |
12 Months or Longer | 3,000,000 | 1,000,000 |
Total | 107,000,000 | 56,000,000 |
Unrealized Losses | ||
Less Than 12 Months | (2,000,000) | (1,000,000) |
12 Months or Longer | 0 | 0 |
Total | (2,000,000) | (1,000,000) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 204,000,000 | 416,000,000 |
12 Months or Longer | 90,000,000 | 8,000,000 |
Total | 294,000,000 | 424,000,000 |
Unrealized Losses | ||
Less Than 12 Months | (2,000,000) | (6,000,000) |
12 Months or Longer | (1,000,000) | (1,000,000) |
Total | (3,000,000) | (7,000,000) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 35,000,000 | 74,000,000 |
12 Months or Longer | 23,000,000 | 1,000,000 |
Total | 58,000,000 | 75,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1,000,000) |
12 Months or Longer | 0 | 0 |
Total | 0 | (1,000,000) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 34,000,000 | 66,000,000 |
12 Months or Longer | 33,000,000 | 5,000,000 |
Total | 67,000,000 | 71,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1,000,000) |
12 Months or Longer | (1,000,000) | 0 |
Total | (1,000,000) | (1,000,000) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 38,000,000 | 64,000,000 |
12 Months or Longer | 21,000,000 | 3,000,000 |
Total | 59,000,000 | 67,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Preferred stock | ||
Fair Value | ||
Less Than 12 Months | 5,000,000 | 6,000,000 |
12 Months or Longer | 7,000,000 | 8,000,000 |
Total | 12,000,000 | 14,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1,000,000) | (1,000,000) |
Total | (1,000,000) | (1,000,000) |
Common Stock | ||
Fair Value | ||
Less Than 12 Months | 5,000,000 | 2,000,000 |
12 Months or Longer | 0 | 1,000,000 |
Total | 5,000,000 | 3,000,000 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | |
Total | 0 | $ 0 |
Other long-term investments | ||
Fair Value | ||
Less Than 12 Months | 1,000,000 | |
12 Months or Longer | 0 | |
Total | 1,000,000 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | $ 0 |
Investment Securities -- Narrat
Investment Securities -- Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)investment | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)investment | Sep. 30, 2016USD ($) | Dec. 31, 2016investment | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Investment securities in an unrealized loss position | investment | 1,079 | 1,079 | 1,331 | ||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0 | $ 0 | |||
Cumulative amount of credit losses (recognized in earnings) | $ 0 | $ 0 | $ 0 | $ 0 | |
Corporate debt | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Other than temporary impairment losses on corporate debt (less than) | $ 1,000,000 | $ 1,000,000 |
Investment Securities -- Procee
Investment Securities -- Proceeds of AFS sold / redeemed (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available-for-sale securities sold or redeemed | ||||
Proceeds from sales and redemptions | $ 157 | $ 57 | $ 437 | $ 344 |
Realized gains | 4 | 3 | 13 | 10 |
Realized losses | 0 | 0 | (1) | (1) |
Net realized gains | $ 4 | $ 3 | $ 12 | $ 9 |
Investment Securities -- Contra
Investment Securities -- Contractual Maturities of AFS Investment Securities (Details) $ in Millions | Sep. 30, 2017USD ($) |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities (Fair Value): | |
Due in 1 year or less | $ 212 |
Due after 1 year through 5 years | 550 |
Due after 5 years through 10 years | 301 |
Due after 10 years | 192 |
Mortgage-backed, asset-backed, and collateralized securities | 282 |
Total | 1,537 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities (Amortized Cost): | |
Due in 1 year or less | 212 |
Due after 1 year through 5 years | 548 |
Due after 5 years through 10 years | 298 |
Due after 10 years | 188 |
Mortgage-backed, asset-backed, and collateralized securities | 283 |
Total | $ 1,529 |
Investment Securities -- FV of
Investment Securities -- FV of bonds on deposit with insurance regulatory (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Fair value of bonds on deposit | $ 527 | $ 465 |
Investment Securities -- FV o57
Investment Securities -- FV of Trading Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | $ 83 | $ 93 |
Preferred stock | 6 | 6 |
Total | 89 | 99 |
Non-U.S. government and government sponsored entities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | 1 | 1 |
Corporate debt | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | 77 | 85 |
RMBS | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | 1 | 1 |
CMBS | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | 0 | 1 |
CDO/ABS | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Bonds | $ 4 | $ 5 |
Investment Securities -- Net Un
Investment Securities -- Net Unrealized & Realized Gains/Losses on Trading Investment Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Mark-to-market gain (loss) on trading and other securities held | $ 0 | $ (2) | $ 0 | $ 6 |
Net realized gains (losses) on trading and other securities sold or redeemed | $ 0 | $ 4 | $ 0 | $ 4 |
Transactions with Affiliates 59
Transactions with Affiliates of Fortress -- SUBSERVICING AGREEMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
MorEquity and Other Indirect Subsidiaries | Nationstar Mortgage LLC | ||||
Related Party Transaction [Line Items] | ||||
Subservicing fees | $ 0 | $ 0 | $ 0 | $ 0 |
Transactions with Affiliates 60
Transactions with Affiliates of Fortress -- INVESTMENT MANAGEMENT AGREEMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Logan Circle Partners L P | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Costs and fees for investment management services | $ 0 | $ 0 | $ 0 | $ 0 |
Transactions with Affiliates 61
Transactions with Affiliates of Fortress -- SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | Mar. 30, 2016 | |
Corporate Joint Venture | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership percentage | 47.00% | 47.00% | |||||
Springleaf Finance Corporation | SpringCastle Funding Trust | |||||||
Related Party Transaction [Line Items] | |||||||
Servicing fees | $ 9 | $ 10 | $ 29 | $ 21 | |||
Servicing fees receivable | $ 3 | $ 3 | $ 3 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | Jan. 16, 2017 | Sep. 30, 2017 | Jan. 15, 2017 | Dec. 31, 2016 |
Principal maturities of long-term debt by type of debt | ||||
Fourth quarter 2017 | $ 557,000,000 | |||
2,018 | 0 | |||
2,019 | 1,396,000,000 | |||
2,020 | 1,299,000,000 | |||
2,021 | 1,446,000,000 | |||
2,022 | 1,000,000,000 | |||
2023-2067 | 650,000,000 | |||
Securitizations | 8,599,000,000 | |||
Total principal maturities | 14,947,000,000 | |||
Long-term debt | 14,619,000,000 | $ 13,959,000,000 | ||
Debt issuance costs | $ (44,000,000) | |||
Junior Subordinated Debt | ||||
Long-term debt | ||||
Interest rates (as a percent) | 6.00% | |||
Effective interest rate | 3.05% | |||
Principal maturities of long-term debt by type of debt | ||||
Fourth quarter 2017 | $ 0 | |||
2,018 | 0 | |||
2,019 | 0 | |||
2,020 | 0 | |||
2,021 | 0 | |||
2,022 | 0 | |||
2023-2067 | 350,000,000 | |||
Securitizations | 0 | |||
Total principal maturities | 350,000,000 | |||
Long-term debt | 172,000,000 | |||
Debt issuance costs | 0 | |||
Senior Debt | Securitizations | ||||
Principal maturities of long-term debt by type of debt | ||||
Fourth quarter 2017 | 0 | |||
2,018 | 0 | |||
2,019 | 0 | |||
2,020 | 0 | |||
2,021 | 0 | |||
2,022 | 0 | |||
2023-2067 | 0 | |||
Securitizations | 8,599,000,000 | |||
Total principal maturities | 8,599,000,000 | |||
Long-term debt | 8,577,000,000 | |||
Debt issuance costs | (23,000,000) | |||
Senior Debt | Medium Term Notes | ||||
Principal maturities of long-term debt by type of debt | ||||
Fourth quarter 2017 | 557,000,000 | |||
2,018 | 0 | |||
2,019 | 1,396,000,000 | |||
2,020 | 1,299,000,000 | |||
2,021 | 1,446,000,000 | |||
2,022 | 1,000,000,000 | |||
2023-2067 | 300,000,000 | |||
Securitizations | 0 | |||
Total principal maturities | 5,998,000,000 | |||
Long-term debt | 5,870,000,000 | |||
Debt issuance costs | (21,000,000) | |||
Senior Debt | Revolving Conduit Facilities | Other assets | ||||
Principal maturities of long-term debt by type of debt | ||||
Debt issuance costs | $ 19,000,000 | |||
Minimum | Senior Debt | Securitizations | ||||
Long-term debt | ||||
Interest rates (as a percent) | 2.03% | |||
Minimum | Senior Debt | Medium Term Notes | ||||
Long-term debt | ||||
Interest rates (as a percent) | 5.25% | |||
Maximum | Senior Debt | Securitizations | ||||
Long-term debt | ||||
Interest rates (as a percent) | 7.50% | |||
Maximum | Senior Debt | Medium Term Notes | ||||
Long-term debt | ||||
Interest rates (as a percent) | 8.25% | |||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debt | ||||
Principal maturities of long-term debt by type of debt | ||||
Basis spread on variable rate | 1.75% | |||
Consolidated VIEs | ||||
Principal maturities of long-term debt by type of debt | ||||
Long-term debt | $ 8,600,000,000 | $ 8,200,000,000 | ||
Amounts drawn | $ 0 |
Long-term Debt -- SFC Senior No
Long-term Debt -- SFC Senior Notes Due 2022 (Details) - Senior Debt - USD ($) | May 30, 2017 | May 15, 2017 |
Senior Notes 6.125% | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 6.125% | 6.125% |
Debt instrument, face amount | $ 500,000,000 | $ 500,000,000 |
Senior Notes due 2017 | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 6.90% | |
Debt repurchase amount | $ 466,000,000 |
Long-term Debt -- SFC and OMFH
Long-term Debt -- SFC and OMFH Indenture (Details) - USD ($) $ in Millions | Sep. 30, 2017 | May 15, 2017 | Apr. 11, 2016 | Dec. 03, 2014 | Dec. 30, 2013 |
Debt Instrument [Line Items] | |||||
Principal amounts of debt | $ 14,947 | ||||
Senior note | |||||
Debt Instrument [Line Items] | |||||
Principal amounts of debt | 2,200 | ||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Notes 6.125% | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.125% | ||||
Principal amounts of debt | 1,000 | ||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Note 8.25%, due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 8.25% | ||||
Principal amounts of debt | 1,000 | ||||
Guaranty Agreements | SPRINGLEAF HOLDINGS, INC. | Senior Notes 5.25 Percent Due 2019 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 5.25% | ||||
Principal amounts of debt | 700 | ||||
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 | OneMain Financial Holdings, Inc. | Unsecured Debt | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal outstanding | $ 1,500 |
Variable Interest Entities -- C
Variable Interest Entities -- Carrying Amount of Consolidated VIEs (Details) - Consolidated VIEs - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 3 | $ 3 |
Finance receivables: | Personal loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 9,752 | 9,509 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 463 | 501 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 553 | 552 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 13 | 14 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 8,577 | 8,240 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 16 | $ 16 |
Variable Interest Entities -- S
Variable Interest Entities -- Securitized Borrowings (Details) - USD ($) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2017 | Sep. 06, 2017 | Jun. 28, 2017 | Feb. 15, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 14, 2016 | Jul. 25, 2016 | Jul. 19, 2016 | Jun. 07, 2016 | May 17, 2016 | Mar. 23, 2016 | Feb. 10, 2016 | Sep. 29, 2015 | May 21, 2015 | Apr. 07, 2015 | Feb. 26, 2015 | Feb. 05, 2015 | Jul. 30, 2014 | Apr. 17, 2014 | |
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | $ 14,619,000,000 | $ 13,959,000,000 | ||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | 8,600,000,000 | $ 8,200,000,000 | ||||||||||||||||||
Consolidated VIEs | Secured Structured Financings | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | 8,599,000,000 | |||||||||||||||||||
Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | 8,085,000,000 | |||||||||||||||||||
Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | $ 514,000,000 | |||||||||||||||||||
SLFT 2015-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 3 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 1,163,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.47% | |||||||||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | |||||||||||||||||||
SLFT 2015-B | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 5 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 314,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.78% | |||||||||||||||||||
Debt instrument, face amount | $ 314,000,000 | |||||||||||||||||||
SLFT 2016-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 500,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.10% | |||||||||||||||||||
Debt instrument, face amount | $ 532,000,000 | |||||||||||||||||||
Notes initially retained by the entity | $ 32,000,000 | |||||||||||||||||||
SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 3 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 619,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 2.98% | |||||||||||||||||||
Debt instrument, face amount | $ 652,000,000 | |||||||||||||||||||
OMFIT 2014-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 103,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.24% | |||||||||||||||||||
Debt instrument, face amount | $ 760,000,000 | |||||||||||||||||||
OMFIT 2014-2 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 426,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.74% | |||||||||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | |||||||||||||||||||
OMFIT 2015-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 3 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 1,229,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.74% | |||||||||||||||||||
Debt instrument, face amount | $ 1,200,000,000 | |||||||||||||||||||
OMFIT 2015-2 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 946,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 3.23% | |||||||||||||||||||
Debt instrument, face amount | $ 1,300,000,000 | |||||||||||||||||||
OMFIT 2015-3 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 5 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 293,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 4.21% | |||||||||||||||||||
Debt instrument, face amount | $ 293,000,000 | |||||||||||||||||||
OMFIT 2016-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 3 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 459,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 4.01% | |||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||||||||
OMFIT 2016-2 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 816,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 4.50% | |||||||||||||||||||
Debt instrument, face amount | $ 890,000,000 | |||||||||||||||||||
OMFIT 2016-3 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 5 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 317,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 4.33% | |||||||||||||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||||||||||||
OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 2 years | |||||||||||||||||||
Current Note Amounts Outstanding | $ 900,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 2.62% | |||||||||||||||||||
Debt instrument, face amount | $ 947,000,000 | |||||||||||||||||||
ODART 2016-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | $ 246,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 2.70% | |||||||||||||||||||
Debt instrument, face amount | $ 754,000,000 | |||||||||||||||||||
ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 1 year | |||||||||||||||||||
Current Note Amounts Outstanding | $ 268,000,000 | |||||||||||||||||||
Current Weighted Average Interest Rate | 2.61% | |||||||||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||||||||
2014-A Notes | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Current Note Amounts Outstanding | $ 221,000,000 | |||||||||||||||||||
Debt redemption price | 188,000,000 | |||||||||||||||||||
Class A Notes | SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 26,000,000 | |||||||||||||||||||
Class A Notes | ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 11,000,000 | |||||||||||||||||||
Class B Notes | SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 2,000,000 | |||||||||||||||||||
Class B Notes | OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 3,000,000 | |||||||||||||||||||
Class B Notes | ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 1,000,000 | |||||||||||||||||||
Class C Notes | SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 2,000,000 | |||||||||||||||||||
Class C Notes | OMFIT 2016-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Amount of notes sold under private securitization | $ 45,000,000 | |||||||||||||||||||
Class C Notes | OMFIT 2016-2 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Amount of notes sold under private securitization | $ 83,000,000 | |||||||||||||||||||
Class C Notes | OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 3,000,000 | |||||||||||||||||||
Class C Notes | ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 1,000,000 | |||||||||||||||||||
Class D Notes | SLFT 2017-A | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 3,000,000 | |||||||||||||||||||
Class D Notes | OMFIT 2016-3 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 33,000,000 | |||||||||||||||||||
Class D Notes | OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 5,000,000 | |||||||||||||||||||
Class D Notes | ODART 2016-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 54,000,000 | |||||||||||||||||||
Class D Notes | ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 1,000,000 | |||||||||||||||||||
Class D Notes | 2014-A Notes | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 33,000,000 | |||||||||||||||||||
Class C And D Notes | OMFIT 2016-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 86,000,000 | |||||||||||||||||||
Class C And D Notes | OMFIT 2016-2 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 157,000,000 | |||||||||||||||||||
Class A-1 Notes | OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | 30,000,000 | |||||||||||||||||||
Class A-2 Notes | OMFIT 2017-1 | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 6,000,000 | |||||||||||||||||||
Class E Notes | ODART 2017-1 | Consolidated VIEs | Auto Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Notes initially retained by the entity | $ 18,000,000 | |||||||||||||||||||
Minimum | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 1 year | |||||||||||||||||||
Maximum | Consolidated VIEs | Consumer Securitizations: | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Original Revolving Period | 5 years | |||||||||||||||||||
Principal payments required during revolving period | $ 0 |
Variable Interest Entities -- R
Variable Interest Entities -- Revolving Conduit Facilities Table (Details) - Consolidated VIEs - USD ($) | Sep. 30, 2017 | Sep. 29, 2017 | Sep. 28, 2017 | Sep. 08, 2017 | Jul. 14, 2017 | Jun. 29, 2017 | Apr. 13, 2017 |
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | $ 5,050,000,000 | ||||||
Amount Drawn | 0 | ||||||
Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | $ 250,000,000 | ||||||
First Avenue Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 250,000,000 | ||||||
Amount Drawn | 0 | ||||||
Seine River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 500,000,000 | ||||||
Amount Drawn | 0 | ||||||
OneMain | OneMain Financial B4 Warehouse Trust | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 750,000,000 | ||||||
Amount Drawn | 0 | ||||||
OneMain | OneMain Financial B6 Warehouse Trust | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 600,000,000 | ||||||
Amount Drawn | 0 | ||||||
Rocky River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 250,000,000 | ||||||
Amount Drawn | 0 | ||||||
Thur River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 350,000,000 | $ 350,000,000 | |||||
Amount Drawn | 0 | ||||||
Mystic River Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 850,000,000 | $ 850,000,000 | |||||
Amount Drawn | 0 | ||||||
Fourth Avenue Auto Funding, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 250,000,000 | $ 250,000,000 | |||||
Amount Drawn | 0 | ||||||
Financial Funding VII LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 650,000,000 | $ 650,000,000 | |||||
Amount Drawn | 0 | ||||||
Financial Funding IX, LLC | Asset-backed Securities, Securitized Loans and Receivables | |||||||
Line of Credit Facility [Line Items] | |||||||
Note Maximum Balance | 600,000,000 | $ 600,000,000 | |||||
Amount Drawn | $ 0 |
Variable Interest Entities -- V
Variable Interest Entities -- VIE Interest Expense & Deconsolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 207 | $ 215 | $ 612 | $ 655 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 81 | $ 81 | $ 239 | $ 261 |
Insurance -- Change in Reserve
Insurance -- Change in Reserve for Unpaid Claims and Loss Adjustment (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Balance at beginning of period | $ 158 | $ 177 | ||
Less reinsurance recoverables | (26) | (26) | ||
Net balance at beginning of period | 132 | 151 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 149 | 165 | ||
Prior years | 0 | (21) | ||
Total | 149 | 144 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (82) | (87) | ||
Prior years | (69) | (67) | ||
Total | (151) | (154) | ||
Foreign currency translation adjustment | (1) | 0 | ||
Net balance at end of period | 129 | 141 | ||
Plus reinsurance recoverables | 26 | 26 | $ 25 | $ 27 |
Balance at end of period | 154 | 168 | ||
Prior year claims and claims adjustment expense, threshold (less than) | 1 | |||
Prior years net reserves | $ 0 | $ (21) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator (basic and diluted): | ||||
Net income attributable to OneMain Holdings, Inc. | $ 69 | $ 25 | $ 144 | $ 188 |
Denominator: | ||||
Weighted average number of shares outstanding (basic) (in shares) | 135,253,493 | 134,730,251 | 135,240,664 | 134,717,870 |
Effect of dilutive securities (in shares) | 457,719 | 256,883 | 358,705 | 231,467 |
Weighted average number of shares outstanding (diluted) (in shares) | 135,711,212 | 134,987,134 | 135,599,369 | 134,949,337 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.19 | $ 1.07 | $ 1.40 |
Diluted (in dollars per share) | $ 0.51 | $ 0.19 | $ 1.07 | $ 1.39 |
Performance-based Shares | ||||
Earnings per share: | ||||
Antidilutive securities excluded from EPS calculation (in shares) | 69,321 | 573,658 | 41,698 | 576,437 |
Service-based Shares | ||||
Earnings per share: | ||||
Antidilutive securities excluded from EPS calculation (in shares) | 577,557 | 870,645 | 709,503 | 960,032 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 3,066 | $ 2,730 | ||
Other comprehensive income before reclassifications | $ 4 | $ 6 | 19 | 48 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (2) | (7) | (8) | (11) |
Balance at end of period | 3,230 | 3,046 | 3,230 | 3,046 |
Unrealized Gains (Losses) Available-for-Sale Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 6 | 20 | (1) | (14) |
Other comprehensive income before reclassifications | 2 | 6 | 15 | 44 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (2) | (2) | (8) | (6) |
Balance at end of period | 6 | 24 | 6 | 24 |
Retirement Plan Liabilities Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (4) | (19) | (4) | (19) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Balance at end of period | (4) | (19) | (4) | (19) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 1 | 4 | (1) | 0 |
Other comprehensive income before reclassifications | 2 | 0 | 4 | 4 |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | (5) | 0 | (5) |
Balance at end of period | 3 | (1) | 3 | (1) |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 3 | 5 | (6) | (33) |
Balance at end of period | $ 5 | $ 4 | $ 5 | $ 4 |
Accumulated Other Comprehensi72
Accumulated Other Comprehensive Income (Loss) -- Reclassification Adjustments From AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | $ 2 | $ 7 | $ 8 | $ 11 |
Reclassification adjustments | ||||
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 2 | 7 | 8 | 11 |
Unrealized gains on available-for-sale securities: | ||||
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 2 | 2 | 8 | 6 |
Unrealized gains on available-for-sale securities: | Reclassification adjustments | ||||
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | 4 | 3 | 12 | 9 |
Income tax effect | (2) | (1) | (4) | (3) |
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 2 | 2 | 8 | 6 |
Foreign Currency Translation Adjustments | ||||
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes | 0 | 5 | 0 | 5 |
Foreign Currency Translation Adjustments | Reclassification adjustments | ||||
Reclassification adjustments from accumulated other comprehensive income | ||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | $ 0 | $ 5 | $ 0 | $ 5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax assets, net | $ 202 | $ 176 | |
Increase (decrease) deferred tax assets | $ 26 | ||
Effective income tax rate | 40.80% | 33.90% | |
Interest and penalties included in unrecognized tax positions | $ 18 | $ 16 | |
No material change in balance of uncertain tax position, expected term | 12 months |
Contingencies (Details)
Contingencies (Details) $ in Millions | Sep. 30, 2017USD ($)request |
Commitments and Contingencies Disclosure [Abstract] | |
Reserve for sales recourse obligations | $ | $ 13 |
Number of material unresolved recourse requests | request | 0 |
Segment Information -- Narrativ
Segment Information -- Narrative (Details) | 9 Months Ended |
Sep. 30, 2017statesegment | |
Segment Reporting [Abstract] | |
Number of segments | segment | 2 |
Consumer and Insurance Segment | |
Segment Reporting Information [Line Items] | |
Number of states which entity operates | state | 44 |
Segment Information -- Allocati
Segment Information -- Allocation of Revenue and Expenses (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate and Other Segments | |
Segment Reporting Information [Line Items] | |
Unsecured debt allocation percentage | 100.00% |
Segment Information -- Reconcil
Segment Information -- Reconciliation to Condensed Consolidated Financial Statement Amounts (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | $ 808 | $ 770 | $ 2,339 | $ 2,342 | ||
Interest expense | 207 | 215 | 612 | 655 | ||
Provision for finance receivable losses | 243 | 263 | 724 | 674 | ||
Net interest income after provision for finance receivable losses | 358 | 292 | 1,003 | 1,013 | ||
Net gain on sale of SpringCastle interests | $ 167 | 0 | 0 | 0 | 167 | |
Other revenues | 152 | 158 | 414 | 459 | ||
Acquisition-related transaction and integration expenses | 22 | 21 | 59 | 75 | ||
Other expenses | 367 | 396 | 1,114 | 1,237 | ||
Income before income taxes | 121 | 33 | 244 | 327 | ||
Income before income taxes attributable to non-controlling interests | 28 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 299 | |||||
Assets | 19,050 | 18,353 | 19,050 | 18,353 | $ 18,123 | |
Operating segments | Consumer and Insurance | ||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | 831 | 827 | 2,430 | 2,507 | ||
Interest expense | 195 | 191 | 570 | 551 | ||
Provision for finance receivable losses | 245 | 224 | 718 | 669 | ||
Net interest income after provision for finance receivable losses | 391 | 412 | 1,142 | 1,287 | ||
Net gain on sale of SpringCastle interests | 0 | |||||
Other revenues | 145 | 151 | 409 | 467 | ||
Acquisition-related transaction and integration expenses | 22 | 17 | 56 | 62 | ||
Other expenses | 343 | 367 | 1,038 | 1,140 | ||
Income before income taxes | 171 | 179 | 457 | 552 | ||
Income before income taxes attributable to non-controlling interests | 0 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 552 | |||||
Assets | 16,916 | 15,728 | 16,916 | 15,728 | ||
Operating segments | Acquisitions and Servicing | ||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | 0 | 0 | 0 | 102 | ||
Interest expense | 0 | 0 | 0 | 20 | ||
Provision for finance receivable losses | 0 | 14 | ||||
Net interest income after provision for finance receivable losses | 0 | 0 | 0 | 68 | ||
Net gain on sale of SpringCastle interests | 167 | |||||
Other revenues | 10 | 12 | 32 | 36 | ||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | 1 | ||
Other expenses | 10 | 10 | 31 | 47 | ||
Income before income taxes | 0 | 2 | 1 | 223 | ||
Income before income taxes attributable to non-controlling interests | 28 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 195 | |||||
Assets | 4 | 5 | 4 | 5 | ||
Other | ||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | 6 | 11 | 18 | 43 | ||
Interest expense | 5 | 9 | 16 | 37 | ||
Provision for finance receivable losses | 6 | 1 | 7 | 5 | ||
Net interest income after provision for finance receivable losses | (5) | 1 | (5) | 1 | ||
Net gain on sale of SpringCastle interests | 0 | |||||
Other revenues | (1) | (17) | 0 | (35) | ||
Acquisition-related transaction and integration expenses | 0 | 5 | 6 | 20 | ||
Other expenses | 7 | 9 | 23 | 21 | ||
Income before income taxes | (13) | (30) | (34) | (75) | ||
Income before income taxes attributable to non-controlling interests | 0 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | (75) | |||||
Assets | 304 | 613 | 304 | 613 | ||
Eliminations | ||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Provision for finance receivable losses | 0 | 0 | 0 | 0 | ||
Net interest income after provision for finance receivable losses | 0 | 0 | 0 | 0 | ||
Net gain on sale of SpringCastle interests | 0 | |||||
Other revenues | 0 | 0 | 0 | (11) | ||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | 0 | ||
Other expenses | 0 | 0 | 0 | (11) | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income before income taxes attributable to non-controlling interests | 0 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | 0 | |||||
Assets | 0 | 0 | ||||
Segment to GAAP Adjustment | ||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | ||||||
Interest income | (29) | (68) | (109) | (310) | ||
Interest expense | 7 | 15 | 26 | 47 | ||
Provision for finance receivable losses | (8) | 38 | (1) | (14) | ||
Net interest income after provision for finance receivable losses | (28) | (121) | (134) | (343) | ||
Net gain on sale of SpringCastle interests | 0 | |||||
Other revenues | (2) | 12 | (27) | 2 | ||
Acquisition-related transaction and integration expenses | 0 | (1) | (3) | (8) | ||
Other expenses | 7 | 10 | 22 | 40 | ||
Income before income taxes | (37) | (118) | (180) | (373) | ||
Income before income taxes attributable to non-controlling interests | 0 | |||||
Income (loss) before income tax expense (benefit) attributable to OneMain Holdings, Inc. | (373) | |||||
Assets | $ 1,826 | $ 2,007 | $ 1,826 | $ 2,007 |
Fair Value Measurements -- FV &
Fair Value Measurements -- FV & CV Hierarchy Basis Table (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Assets | |||
Investment securities | $ 1,668 | $ 1,764 | |
Restricted cash and restricted cash equivalents | 571 | 568 | $ 558 |
Liabilities | |||
Long-term debt | 14,619 | 13,959 | |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 916 | 579 | |
Investment securities | 1,668 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 14,966 | 13,891 | |
Finance receivables held for sale | 141 | 159 | |
Restricted cash and restricted cash equivalents | 571 | 568 | |
Other assets | 14 | 35 | |
Liabilities | |||
Long-term debt | 15,322 | 14,498 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 916 | 579 | |
Investment securities | 1,668 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 13,798 | 13,043 | |
Finance receivables held for sale | 137 | 153 | |
Restricted cash and restricted cash equivalents | 571 | 568 | |
Other assets | 14 | 37 | |
Liabilities | |||
Long-term debt | 14,619 | 13,959 | |
Fair Value Measurements Using Level 1 | |||
Assets | |||
Cash and cash equivalents | 772 | 506 | |
Investment securities | 38 | 31 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 571 | 568 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Fair Value Measurements Using Level 2 | |||
Assets | |||
Cash and cash equivalents | 144 | 73 | |
Investment securities | 1,623 | 1,724 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 2 | 1 | |
Liabilities | |||
Long-term debt | 15,322 | 14,498 | |
Fair Value Measurements Using Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 7 | 9 | |
Net finance receivables, less allowance for finance receivable losses | 14,966 | 13,891 | |
Finance receivables held for sale | 141 | 159 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 12 | 34 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements -- Asse
Fair Value Measurements -- Assets at FV Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Available-for-sale securities | $ 1,578 | $ 1,664 |
Other securities | 89 | 99 |
Preferred stock | 6 | 6 |
Total investment securities | 1,668 | 1,764 |
Bonds: | ||
Investment securities: | ||
Available-for-sale securities | 1,537 | 1,629 |
U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 30 | 31 |
Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 136 | 145 |
Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 45 | |
Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 920 | 1,025 |
RMBS | ||
Investment securities: | ||
Available-for-sale securities | 92 | 100 |
CMBS | ||
Investment securities: | ||
Available-for-sale securities | 96 | 108 |
CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 94 | 102 |
Preferred stock | ||
Investment securities: | ||
Available-for-sale securities | 16 | 16 |
Common stock | ||
Investment securities: | ||
Available-for-sale securities | 24 | 17 |
Common stock | Portion at Other than Fair Value Measurement | ||
Investment securities: | ||
Available-for-sale securities | 1 | 1 |
Other long-term investments | ||
Investment securities: | ||
Available-for-sale securities | 1 | 2 |
Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash and cash equivalents | 772 | 506 |
Investment securities: | ||
Total investment securities | 38 | 31 |
Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash and cash equivalents | 144 | 73 |
Investment securities: | ||
Total investment securities | 1,623 | 1,724 |
Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Total investment securities | 7 | 9 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 490 | 307 |
Investment securities: | ||
Available-for-sale securities | 1,578 | 1,664 |
Other securities | 89 | 99 |
Total investment securities | 1,667 | 1,763 |
Restricted cash in mutual funds | 557 | 553 |
Total | 2,858 | 2,696 |
Fair Value, Measurements, Recurring | Bonds: | ||
Investment securities: | ||
Available-for-sale securities | 1,537 | 1,629 |
Other securities | 83 | 93 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 30 | 31 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 136 | 145 |
Fair Value, Measurements, Recurring | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 45 | |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 124 | 118 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 920 | 1,025 |
Other securities | 77 | 85 |
Fair Value, Measurements, Recurring | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 92 | 100 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 96 | 108 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 94 | 102 |
Other securities | 4 | 5 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investment securities: | ||
Available-for-sale securities | 16 | 16 |
Preferred stock | 6 | 6 |
Fair Value, Measurements, Recurring | Common stock | ||
Investment securities: | ||
Available-for-sale securities | 24 | 17 |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Investment securities: | ||
Available-for-sale securities | 1 | 2 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 490 | 307 |
Investment securities: | ||
Available-for-sale securities | 32 | 25 |
Other securities | 6 | 6 |
Total investment securities | 38 | 31 |
Restricted cash in mutual funds | 557 | 553 |
Total | 1,085 | 891 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Bonds: | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Preferred stock | ||
Investment securities: | ||
Available-for-sale securities | 8 | 8 |
Preferred stock | 6 | 6 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Common stock | ||
Investment securities: | ||
Available-for-sale securities | 24 | 17 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | Other long-term investments | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Investment securities: | ||
Available-for-sale securities | 1,544 | 1,633 |
Other securities | 79 | 91 |
Total investment securities | 1,623 | 1,724 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,767 | 1,797 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Bonds: | ||
Investment securities: | ||
Available-for-sale securities | 1,536 | 1,625 |
Other securities | 79 | 91 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 30 | 31 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 136 | 145 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 45 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 124 | 118 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 920 | 1,025 |
Other securities | 73 | 83 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 92 | 100 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 96 | 108 |
Other securities | 1 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 93 | 98 |
Other securities | 4 | 5 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Preferred stock | ||
Investment securities: | ||
Available-for-sale securities | 8 | 8 |
Preferred stock | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Common stock | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | Other long-term investments | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Investment securities: | ||
Available-for-sale securities | 2 | 6 |
Other securities | 4 | 2 |
Total investment securities | 6 | 8 |
Restricted cash in mutual funds | 0 | 0 |
Total | 6 | 8 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Bonds: | ||
Investment securities: | ||
Available-for-sale securities | 1 | 4 |
Other securities | 4 | 2 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Certificates of deposit and commercial paper | ||
Investment securities: | ||
Available-for-sale securities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Non-U.S. government and government sponsored entities | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Corporate debt | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 4 | 2 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | RMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | CMBS | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | CDO/ABS | ||
Investment securities: | ||
Available-for-sale securities | 1 | 4 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Preferred stock | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Preferred stock | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Common stock | ||
Investment securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | Other long-term investments | ||
Investment securities: | ||
Available-for-sale securities | 1 | 2 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Cash and cash equivalents | 144 | 73 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 2 | ||
Assets | ||
Cash and cash equivalents | 144 | 73 |
Cash equivalents in securities | Fair Value, Measurements, Recurring | Fair Value Measurements Using Level 3 | ||
Assets | ||
Cash and cash equivalents | $ 0 | $ 0 |