Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Mar. 10, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | SPRINGLEAF FINANCE CORP | |
Entity Central Index Key | 25598 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $0 | |
Entity Common Stock, Shares Outstanding | 10,160,020 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Assets | |||
Cash and cash equivalents | $749,582 | $374,835 | |
Investment securities | 2,921,815 | 555,614 | |
Net finance receivables: | |||
Personal loans (includes loans of consolidated VIEs of $1.9 billion in 2014 and $1.6 billion in 2013) | 3,799,788 | 3,159,932 | |
SpringCastle Portfolio (includes loans of consolidated VIEs of $2.0 billion in 2014) | 1,979,190 | 0 | |
Real estate loans (includes loans of consolidated VIEs of $0 in 2014 and $5.6 billion in 2013) | 625,335 | 7,885,016 | |
Retail sales finance | 47,705 | 98,911 | |
Net finance receivables | 6,452,018 | 11,143,859 | |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $71.7 million in 2014 and $153.1 million in 2013) | -174,223 | -332,195 | |
Net finance receivables, less allowance for finance receivable losses | 6,277,795 | 10,811,664 | |
Finance receivables held for sale | 204,967 | 0 | |
Note receivable from parent | 251,489 | 167,989 | |
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $210.3 million in 2014 and $345.9 million in 2013) | 217,975 | 358,759 | |
Other assets | 502,847 | 463,176 | |
Total assets | 11,126,470 | 12,732,037 | |
Liabilities and Shareholder’s Equity | |||
Long-term debt (includes debt of consolidated VIEs of $3.6 billion in 2014 and $5.2 billion in 2013) | 8,384,910 | [1] | 10,640,728 |
Insurance claims and policyholder liabilities | 445,553 | 394,168 | |
Deferred and accrued taxes | 159,407 | 145,534 | |
Other liabilities | 255,546 | 223,466 | |
Total liabilities | 9,245,416 | 11,403,896 | |
Commitments and contingent liabilities (Note 20) | |||
Shareholder’s equity: | |||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 and 10,160,018 shares issued and outstanding at December 31, 2014 and 2013, respectively | 5,080 | 5,080 | |
Additional paid-in capital | 740,171 | 422,015 | |
Accumulated other comprehensive income | 3,216 | 28,095 | |
Retained earnings | 1,320,894 | 872,951 | |
Springleaf Finance Corporation shareholder’s equity | 2,069,361 | 1,328,141 | |
Non-controlling interests | -188,307 | 0 | |
Total shareholder’s equity | 1,881,054 | 1,328,141 | |
Total liabilities and shareholder’s equity | $11,126,470 | $12,732,037 | |
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, except Share data, unless otherwise specified | ||||
Personal loans | $3,799,788 | $3,159,932 | ||
SpringCastle Portfolio (includes loans of consolidated VIEs of $2.0 billion in 2014) | 1,979,190 | 0 | ||
Real estate loans | 625,335 | 7,885,016 | ||
Allowance for finance receivable losses | 174,223 | 332,195 | ||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||
Carrying Value | 8,384,910 | [1] | 10,640,728 | |
Common Stock, Par or Stated Value Per Share | $0.50 | $0.50 | ||
Common Stock, Shares Authorized | 25,000,000 | 25,000,000 | ||
Common shares, shares issued | 10,160,020 | 10,160,018 | ||
Common shares, shares outstanding | 10,160,020 | 10,160,018 | ||
Consolidated VIEs | ||||
Personal loans | 1,900,000 | 1,600,000 | ||
SpringCastle Portfolio (includes loans of consolidated VIEs of $2.0 billion in 2014) | 2,000,000 | |||
Real estate loans | 5,600,000 | |||
Allowance for finance receivable losses | 71,668 | 153,084 | ||
Restricted cash and cash equivalents | 210,337 | 345,906 | ||
Carrying Value | $3,643,956 | [2] | $5,160,227 | [2] |
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | |||
[2] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ||||
Finance charges | $1,574,453 | $1,647,509 | $1,691,906 | |
Finance receivables held for sale originated as held for investment | 60,089 | 333 | 2,740 | |
Total interest income | 1,634,542 | 1,647,842 | 1,694,646 | |
Interest expense | 683,233 | 842,679 | 1,067,709 | |
Net interest income | 951,309 | 805,163 | 626,937 | |
Provision for finance receivable losses | 367,558 | 393,514 | 340,962 | |
Net interest income after provision for finance receivable losses | 583,751 | 411,649 | 285,975 | |
Other revenues: | ||||
Insurance | 166,459 | 148,179 | 126,423 | |
Investment | 39,019 | 33,610 | 31,134 | |
Net loss on repurchases and repayments of debt | -66,175 | -41,716 | -15,128 | |
Net gain on fair value adjustments on debt | 1,523 | 0 | 0 | |
Net gain on sales of real estate loans and related trust assets | 701,629 | [1] | 0 | 0 |
Other | -13,073 | 21,765 | -28,297 | |
Total other revenues | 829,382 | 161,838 | 114,132 | |
Operating expenses: | ||||
Salaries and benefits | 320,742 | 447,084 | 319,932 | |
Other operating expenses | 260,955 | 197,441 | 303,378 | |
Restructuring expenses | 0 | 0 | 23,503 | |
Insurance losses and loss adjustment expenses | 75,631 | 64,879 | 60,679 | |
Total other expenses | 657,328 | 709,404 | 707,492 | |
Income (loss) before provision for (benefit from) income taxes | 755,805 | -135,917 | -307,385 | |
Provision for (benefit from) income taxes | 263,365 | -53,277 | -88,317 | |
Net income (loss) | 492,440 | -82,640 | -219,068 | |
Net income attributable to non-controlling interests | 44,497 | 0 | 0 | |
Net income (loss) attributable to Springleaf Finance Corporation | $447,943 | ($82,640) | ($219,068) | |
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $492,440 | ($82,640) | ($219,068) |
Net unrealized gains (losses) on: | |||
Investment securities with other-than-temporary impairments | -368 | -78 | 475 |
All other investment securities | 19,585 | -11,903 | 11,348 |
Cash flow hedges | 0 | 0 | -16,987 |
Retirement plan liabilities adjustments | -49,740 | 17,731 | 67,019 |
Foreign currency translation adjustments | 800 | -547 | 3,975 |
Net unrealized (gains) losses on: | |||
Investment securities with other-than-temporary impairments | 129 | 27 | -166 |
All other investment securities | -6,851 | 4,167 | -3,973 |
Cash flow hedges | 0 | 0 | 5,945 |
Retirement plan liabilities adjustments | 16,646 | -5,698 | -23,678 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | -19,799 | 3,699 | 43,958 |
Reclassification adjustments included in net income (loss): | |||
Net realized (gains) losses on investment securities | -7,815 | -2,148 | 3,359 |
Cash flow hedges | -160 | 10,504 | |
Income tax effect: | |||
Net realized gains (losses) on investment securities | 2,735 | 752 | -1,176 |
Cash flow hedges | 56 | -3,676 | |
Reclassification adjustments included in net income (loss), net of tax | -5,080 | -1,500 | 9,011 |
Other comprehensive income (loss), net of tax | -24,879 | 2,199 | 52,969 |
Comprehensive income (loss) | 467,561 | -80,441 | -166,099 |
Comprehensive income attributable to non-controlling interests | 44,497 | 0 | 0 |
Comprehensive income (loss) attributable to Springleaf Finance Corporation | $423,064 | ($80,441) | ($166,099) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Springleaf Finance Corporation Shareholder’s Equity | Non-controlling Interests |
In Thousands, unless otherwise specified | |||||||
Balance, beginning of the period at Dec. 31, 2011 | $1,388,741 | $5,080 | $236,075 | ($27,073) | $1,174,659 | $1,388,741 | $0 |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 19,940 | 19,940 | 19,940 | ||||
Change in net unrealized gains (losses): | |||||||
Investment securities | 9,867 | 9,867 | 9,867 | ||||
Cash flow hedges | -4,214 | -4,214 | -4,214 | ||||
Retirement plan liabilities adjustments | 43,341 | 43,341 | 43,341 | ||||
Foreign currency translation adjustments | 3,975 | 3,975 | 3,975 | ||||
Net income (loss) | -219,068 | -219,068 | -219,068 | ||||
Balance, end of period at Dec. 31, 2012 | 1,242,582 | 5,080 | 256,015 | 25,896 | 955,591 | 1,242,582 | 0 |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 21,000 | 21,000 | 21,000 | ||||
Share-based compensation expense, net of forfeitures | 145,000 | ||||||
Share-based compensation expense, net of forfeitures | 145,000 | 145,000 | 145,000 | ||||
Change in net unrealized gains (losses): | |||||||
Investment securities | -9,183 | -9,183 | -9,183 | ||||
Cash flow hedges | -104 | -104 | -104 | ||||
Retirement plan liabilities adjustments | 12,033 | 12,033 | 12,033 | ||||
Foreign currency translation adjustments | -547 | -547 | -547 | ||||
Net income (loss) | -82,640 | -82,640 | -82,640 | ||||
Balance, end of period at Dec. 31, 2013 | 1,328,141 | 5,080 | 422,015 | 28,095 | 872,951 | 1,328,141 | 0 |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 21,731 | 21,731 | 21,731 | ||||
Capital contribution of capital stock of Springleaf Acquisitions Corporation | 690,284 | 295,691 | 295,691 | 394,593 | |||
Share-based compensation expense, net of forfeitures | 734 | 734 | 734 | ||||
Distributions declared to joint venture partners | -627,397 | -627,397 | |||||
Change in net unrealized gains (losses): | |||||||
Investment securities | 7,415 | 7,415 | 7,415 | ||||
Retirement plan liabilities adjustments | -33,094 | -33,094 | |||||
Foreign currency translation adjustments | 800 | 800 | 800 | ||||
Net income (loss) | 492,440 | 447,943 | 447,943 | 44,497 | |||
Balance, end of period at Dec. 31, 2014 | $1,881,054 | $5,080 | $740,171 | $3,216 | $1,320,894 | $2,069,361 | ($188,307) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income (loss) | $492,440 | ($82,640) | ($219,068) |
Reconciling adjustments: | |||
Provision for finance receivable losses | 367,558 | 393,514 | 340,962 |
Depreciation and amortization | 108,880 | 72,391 | 173,707 |
Deferred income tax charge (benefit) | 17,339 | -118,105 | -171,612 |
Net gain on fair value adjustments on debt | -1,523 | 0 | 0 |
Net gain on sales of real estate loans and related trust assets | -701,629 | ||
Net charge-offs on finance receivables held for sale | 9,714 | 0 | |
Writedowns on assets resulting from restructuring | 0 | 5,046 | |
Impairments of Ocean Finance and Mortgages Limited assets | 0 | 8,342 | |
Net gain on sales of finance receivables | 0 | -5,908 | |
Net loss on repurchases and repayments of debt | 66,175 | 41,716 | 15,128 |
Share-based compensation expense, net of forfeitures | 734 | 145,000 | |
Other | 128 | 19,176 | 60,990 |
Cash flows due to changes in: | |||
Other assets and other liabilities | -8,535 | 1,926 | 31,080 |
Insurance claims and policyholder liabilities | 51,385 | 28,930 | 10,367 |
Taxes receivable and payable | -126,834 | -50,242 | 58,029 |
Accrued interest and finance charges | -39,116 | -41,406 | -30,105 |
Restricted cash and cash equivalents not reinvested | 5,215 | -4,003 | -1,737 |
Other, net | 978 | -307 | -196 |
Net cash provided by operating activities | 242,909 | 405,950 | 275,025 |
Cash flows from investing activities | |||
Finance receivables originated or purchased, net of deferred origination costs | -2,531,174 | -2,206,021 | -1,701,400 |
Principal collections on finance receivables | 2,437,483 | 2,584,415 | 2,618,742 |
Purchase of finance receivables from affiliates | 0 | -14,875 | |
Cash advances on intercompany notes receivables | -127,500 | 0 | 0 |
Principal collections on intercompany notes receivables | 44,000 | 0 | 0 |
Sales and principal collections on finance receivables held for sale originated as held for investment | 3,788,580 | 15,480 | 181,561 |
Available-for-sale investment securities purchased | -348,493 | -196,357 | -73,115 |
Trading investment securities purchased | -2,930,186 | -10,034 | -743 |
Available-for-sale investment securities called, sold, and matured | 268,976 | 295,839 | 152,339 |
Trading investment securities called, sold, and matured | 646,503 | 8,421 | 6,064 |
Change in restricted cash and cash equivalents | 370,000 | 30,750 | |
Change in restricted cash and cash equivalents | 92,597 | -241,053 | -50,003 |
Proceeds from sale of real estate owned | 58,187 | 108,230 | 180,786 |
Other, net | 482 | -3,587 | 58 |
Net cash provided by investing activities | 1,399,455 | 725,333 | 1,330,164 |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt, net of commissions | 3,557,129 | 3,765,075 | 2,263,317 |
Repurchases and repayments of long-term debt | -4,217,983 | -5,867,769 | -3,012,712 |
Change in notes payable to parent and affiliates | 0 | -30,750 | |
Distributions to joint venture partners | -627,397 | 0 | |
Capital contributions from parent | 21,731 | 21,000 | 21,000 |
Net cash used for financing activities | -1,266,520 | -2,112,444 | -728,395 |
Effect of exchange rate changes on cash and cash equivalents | -1,097 | -1,216 | 2,949 |
Net change in cash and cash equivalents | 374,747 | -982,377 | 879,743 |
Cash and cash equivalents at beginning of period | 374,835 | 1,357,212 | 477,469 |
Cash and cash equivalents at end of period | 749,582 | 374,835 | 1,357,212 |
Supplemental cash flow information | |||
Interest paid | 504,495 | 651,545 | 836,156 |
Income taxes paid | 369,394 | 112,240 | 18,642 |
Supplemental non-cash activities | |||
Transfer of finance receivables to real estate owned | 48,792 | 92,708 | 180,102 |
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 6,810,444 | 18,299 | 182,208 |
Transfer of finance receivables held for sale to finance receivables held for investment | 0 | 0 | 1,353 |
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation to Springleaf Finance Corporation | 2,342,442 | 0 | 0 |
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation to Springleaf Finance Corporation | 1,652,158 | 0 | 0 |
Unsettled investment security purchases and sales | ($6,660) | $0 | $0 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Operations | Nature of Operations | |
Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). | ||
In connection with the initial public offering of common stock of Springleaf Holdings, Inc. (“SHI”) in October 2013, SFI became a wholly owned subsidiary of SHI. Therefore, all of SFC’s common stock is indirectly owned by SHI. At December 31, 2014, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 75% of SHI’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”) and AIG Capital Corporation, a subsidiary of American International Group, Inc. (“AIG”). | ||
SFC is a financial services holding company with subsidiaries engaged in the consumer finance and credit insurance businesses. At December 31, 2014, we had $6.5 billion of net finance receivables due from over 1.2 million customer accounts. At December 31, 2014, we had a network of 831 branch offices in 26 states, complemented by our centralized operations, which provides support to our branch operations. As of December 31, 2014, we had 3,239 employees. | ||
SEGMENTS | ||
Our segments coincide with how our businesses are managed. At December 31, 2014, our three segments include: | ||
• | Consumer and Insurance; | |
• | Acquisitions and Servicing; and | |
• | Real Estate. | |
When we initially defined our operating segments in early 2013, we presented Consumer and Insurance as two distinct reporting segments. However, over the course of 2013 and into 2014, management has shifted its strategy for the Insurance segment toward organic growth primarily as an ancillary product complementing our consumer lending activities and has been increasingly viewing and managing the Insurance segment together with Consumer. As a result of the changes in strategy and the way that management views the insurance business of the Company, we are now presenting them as one segment. To conform to the new segment alignment, we have revised our prior period segment disclosures. | ||
Management considers Consumer and Insurance and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” | ||
Our segments are managed as follows: | ||
Core Consumer Operations | ||
• | Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations and offer credit insurance (life insurance, accident and health insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as warranty protection. Branch operations primarily conduct business in 26 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan. | |
• | Acquisitions and Servicing — On April 1, 2013, an indirect subsidiary of SHI acquired a consumer loan portfolio with an aggregate unpaid principal balance (“UPB”) of $3.9 billion (the “SpringCastle Portfolio”) through a joint venture in which SFC owns a 47% equity interest as a result of the “SAC Capital Contribution” on July 31, 2014. (See “Capital Contribution to SFC” in this Note for further information on this capital contribution.) The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status with no anticipation of new loan originations. | |
Non-Core Portfolio | ||
• | Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity, Inc. (“MorEquity”) a wholly owned subsidiary, and subserviced by Nationstar Mortgage LLC (“Nationstar”); (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |
The remaining components (which we refer to as “Other”) consist of our other non-core, non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our Core Consumer Operations and our Non-Core Portfolio. These operations include our legacy operations in 14 states where we have also ceased branch-based personal lending, our liquidating retail sales finance portfolio (including our retail sales finance accounts from our dedicated auto finance operation), our lending operations in Puerto Rico and the U.S. Virgin Islands, and the operations of our United Kingdom subsidiary. Effective June 1, 2014, we also report (on a prospective basis) certain real estate loans with limited equity capacity in Other. These short equity loans, which have liquidated down to an immaterial level, were previously included in our Core Consumer Operations. | ||
SIGNIFICANT REAL ESTATE LOAN TRANSACTIONS | ||
During 2014, we entered into a series of transactions relating to the sales of our beneficial interests in our non-core real estate loans, the related servicing of these loans, and the sales of certain performing and non-performing real estate loans. These transactions substantially complete the Company’s previously disclosed plan to liquidate its non-core real estate loans and are discussed below. | ||
In conjunction with these real estate loan transactions, we have closed our servicing centers in Dallas, Texas, Rancho Cucamonga, California, and Wesley Chapel, Florida, and have eliminated certain staff positions in our Evansville, Indiana, location. In total, approximately 300 staff positions were eliminated. However, the total reduction in workforce was approximately 170 employees, as 130 employees have been transferred into other positions at Springleaf. We recorded restructuring expenses of $3.8 million in 2014 due to the workforce reductions and the closings of the servicing facilities, which are included in salaries and benefits and other operating expenses. | ||
Our insurance subsidiaries have written certain insurance policies on properties, which collateralize the loans that have been deconsolidated or disposed of as a result of these sales. As part of the disposition, the insurance policies associated with the sold loans have been or will be cancelled. | ||
The following real estate loan sales were completed during 2014. The net gain on each sale transaction disclosed below was subject to revisions relating to customary adjustments to the initial sales price resulting from new information received subsequent to the date of sale. | ||
The “Third Street Disposition” | ||
On March 6, 2014, Third Street Funding LLC (“Third Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”) for a purchase price of $737.2 million. On March 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Third Street completed this transaction on March 31, 2014, and recorded a net gain of $72.0 million, at which time, the real estate loans included in the transaction had a carrying value of $724.9 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | ||
The “MorEquity Disposition” | ||
On March 7, 2014, MorEquity entered into an agreement to sell, subject to certain closing conditions, certain performing and non-performing real estate loans for a purchase price of $79.0 million. On March 1, 2014, these loans were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. MorEquity completed this sale on March 31, 2014, and recorded a net loss of $16.9 million, at which time, the real estate loans included in the transaction had a carrying value of $89.9 million (after the basis adjustment for the related allowance for finance receivable losses). | ||
The “Sixth Street Disposition” | ||
On May 23, 2014, Sixth Street Funding LLC (“Sixth Street”), a wholly owned subsidiary of SFC, agreed to sell and transfer its beneficial interests in the mortgage-backed retained certificates related to a securitization transaction completed in 2010 to MLPFS for a purchase price of $263.7 million. On June 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. Sixth Street completed this transaction on June 30, 2014, and recorded a net gain of $34.8 million, at which time, the real estate loans included in the transaction had a carrying value of $444.4 million (after the basis adjustment for the related allowance for finance receivable losses). As a result of the sale, we deconsolidated the securitization trust holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | ||
The “Securitization Assets Sale” | ||
On August 6, 2014, SFC and Eighth Street Funding, LLC, Eleventh Street Funding, LLC, Twelfth Street Funding, LLC, Fourteenth Street Funding, LLC, Fifteenth Street Funding, LLC, Seventeenth Street Funding, LLC, and Nineteenth Street Funding, LLC (each a wholly owned subsidiary of SFC and collectively, the “Depositors”) entered into an agreement to sell, subject to certain closing conditions, certain notes and trust certificates (collectively, the “Securities”) backed by mortgage loans of the Springleaf Mortgage Loan Trust (“SMLT”) 2011-1, SMLT 2012-1, SMLT 2012-2, SMLT 2012-3, SMLT 2013-1, SMLT 2013-2, and SMLT 2013-3 (each, a “Trust”, and the issuance of the Securities by each Trust, a “Springleaf Transaction”) to Credit Suisse Securities (USA) LLC and its affiliates (“Credit Suisse”). The agreement also included the sale of the rights to receive any funds remaining in the reserve account established for each Springleaf Transaction, and certain related rights, representing substantially all of the Company’s remaining interests in the Trusts, to Credit Suisse. | ||
On August 1, 2014, the real estate loans included in the transaction were transferred from held for investment to held for sale, due to management’s intent to no longer hold these finance receivables for the foreseeable future. The Depositors completed this transaction on August 29, 2014, and recorded a net gain of $608.4 million, at which time, the real estate loans included in the transaction had a carrying value of $4.0 billion (after the basis adjustment for the related allowance for finance receivable losses). The purchase price for the Securitization Assets Sale was $1.6 billion. As a result of the sale, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | ||
The “MSR Sale” | ||
Additionally, in a separate transaction on August 6, 2014, SFC and MorEquity (collectively, the “Sellers”), entered into a Mortgage Servicing Rights Purchase and Sale Agreement, dated and effective as of August 1, 2014, with Nationstar, pursuant to which the Sellers agreed to sell to Nationstar all of their rights and responsibilities as servicer, primary servicer, and/or master servicer of the mortgage loans primarily underlying the Sellers’ securitizations completed in 2011, 2012 and 2013 (each a “Pool” and collectively, the “Pools”) with a UPB of approximately $5 billion. Additionally, Nationstar agreed to assume on and after the effective date, all of the Sellers’ rights and responsibilities as servicer, primary servicer and/or master servicer, as applicable, for each Pool arising and to be performed on and after the sale date, which include, among other things, the right to receive the related servicing fee on a monthly basis. | ||
The purchase price for the MSR Sale was $38.8 million. We received $19.4 million of the proceeds of the MSR Sale on August 29, 2014, the closing date, and $15.7 million of the proceeds on October 23, 2014. The remaining amount was subject to a holdback for resolution of missing documentation and other customary conditions, and was expected to be received no later than 120 days after the date of transfer of servicing upon resolution of those conditions. SFC and Nationstar mutually agreed to extend the resolution period for the holdback beyond 120 days. At December 31, 2014, the holdback remaining totaled $3.7 million. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | ||
The servicing for each Pool was transferred on September 30, 2014. From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, the Company continued to service certain loans on behalf of Nationstar under an interim servicing agreement. | ||
The “September Whole Loan Sales” | ||
On August 6, 2014, SFC and Credit Suisse agreed to the terms of sale of certain performing and non-performing mortgage loans by certain indirect subsidiaries of SHI (referred to herein as the “Whole Loan Sales”). On August 1, 2014, the real estate loans included in the Whole Loan Sales were transferred 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 completed the sale of a portion of the Whole Loan Sales on September 30, 2014 (the “September Whole Loan Sales”) and recorded a net loss of $5.0 million, which includes a $7.0 million increase in reserve for recourse obligations during the fourth quarter of 2014. The real estate loans included in the September Whole Loan Sales had a carrying value of $778.4 million (after the basis adjustment for the related allowance for finance receivable losses). | ||
The aggregate purchase price of $795.1 million for the September Whole Loan Sales included a holdback provision of $120 million of which $40 million was subject to finalization of the terms and conditions of administering the holdback and the remainder was subject to our ability to cure certain documentation deficiencies within the 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. SFC and Credit Suisse mutually agreed to extend the cure period for documentation deficiencies beyond 60 days. During the fourth quarter of 2014, we received $83.0 million of the holdback provision from Credit Suisse. At December 31, 2014, the holdback remaining totaled $37.0 million. | ||
The “November Whole Loan Sales” | ||
We completed the second sale of a portion of the Whole Loan Sales on November 7, 2014 (the “November Whole Loan Sales”) and recorded a net gain of $7.8 million. The real estate loans included in the November Whole Loan Sales had a carrying value of $250.6 million (after the basis adjustment for the related allowance for finance receivable losses) as of the date of sale. | ||
The aggregate purchase price of $270.1 million for the November Whole Loan Sales included a holdback provision of $34.3 million, which was subject to our ability to cure certain documentation deficiencies within a 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. SFC and Credit Suisse mutually agreed to extend the cure period for documentation deficiencies beyond 60 days. On November 7, 2014, we received $235.8 million of the proceeds, and in December 2014, we received $11.5 million of the holdback provision from Credit Suisse. At December 31, 2014, the holdback remaining totaled $22.8 million. | ||
The “December Whole Loan Sales” | ||
On December 19, 2014, we completed an additional loan sale to Credit Suisse (the “December Whole Loan Sales”) and recorded a net gain of $0.6 million. The real estate loans included in the December Whole Loan Sales had a carrying value of $23.6 million (after the basis adjustment for the related allowance for finance receivable losses) as of the date of sale. | ||
The aggregate purchase price of $25.8 million for the December Whole Loan Sales included a holdback provision of $4.5 million, which was subject to our ability to cure certain documentation deficiencies within a 60 day period (subject to extension under certain circumstances) subsequent to the closing of the sale. SFC and Credit Suisse mutually agreed to extend the cure period for documentation deficiencies beyond 60 days. On December 19, 2014, we received $21.3 million of the proceeds from Credit Suisse. At December 31, 2014, the holdback remaining totaled $4.5 million. | ||
CAPITAL CONTRIBUTION TO SFC | ||
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of its wholly owned subsidiary, Springleaf Acquisitions Corporation (“SAC”) representing all of the issued and outstanding shares of capital stock of SAC (the “SAC Capital Contribution”). SAC consists primarily of a 47% investment in a joint venture formed to acquire consumer loans in 2013. At July 31, 2014, SAC held consolidated total assets of $2.3 billion, total liabilities of $1.7 billion and equity of $691.0 million, including a non-controlling interest of $394.6 million. Consistent with the contribution of assets and liabilities to an entity in a controlled group, SAC’s assets and liabilities were contributed to SFC at their carrying value as of July 31, 2014, with its results of operations reflected prospectively. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |
BASIS OF PRESENTATION | ||
We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2014 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated cash flow statement. | ||
Prior Period Revisions | ||
During the first quarter of 2014, we identified that the disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2013, was previously incorrectly overstated by $26.8 million. The parenthetical disclosure of the allowance of consolidated VIEs as of December 31, 2013 on our consolidated balance sheet and the related VIE disclosures in Notes 5 and 12 have been revised in this report to $153.1 million. | ||
During the second quarter of 2014, we discovered that we incorrectly disclosed the carrying values at the date of sale of the real estate loans associated with the 2009-1 securitization and certain additional real estate loans sold on March 31, 2014. The affected carrying values have been corrected in Note 1 in this report as follows: (i) the carrying value of real estate loans associated with the 2009-1 securitization that were sold on March 31, 2014, was previously reported as $742.0 million but has been corrected to be $724.9 million and (ii) the carrying value of additional real estate loans sold on March 31, 2014, was previously reported as $93.3 million but has been corrected to be $89.9 million. | ||
During the fourth quarter of 2014, we discovered that we previously understated the carrying value of the real estate loans associated with the September Whole Loan Sales in our calculation of the gain (loss) on the September Whole Loan Sales. This error resulted in an overstatement of $9.8 million of net gain on sales of real estate loans and related trust assets for the three and nine months ended September 30, 2014. As a result of this finding, we recorded an out-of-period adjustment in the fourth quarter of 2014, which decreased net gain on sales of real estate loans and related trust assets by $9.8 million and decreased provision for income taxes by $3.6 million. Additionally, the carrying value at the date of sale of the real estate loans associated with the September Whole Loan Sales that were sold on September 30, 2014, was previously reported as $768.6 million but has been corrected in Note 1 in this report to be $778.4 million. | ||
Additionally, during the fourth quarter of 2014, we discovered that we previously overstated the carrying value of the real estate loans associated with the Securitization Assets Sale in our calculation of the gain (loss) on the Securitization Assets Sale. This error resulted in an understatement of $4.5 million of net gain on sales of real estate loans and related trust assets for the three and nine months ended September 30, 2014. As a result of this finding, we recorded an out-of-period adjustment in the fourth quarter of 2014, which increased net gain on sales of real estate loans and related trust assets by $4.5 million, increased provision for income taxes by $1.7 million, and increased basic and diluted earnings per share each by $0.02. Since the carrying value at the date of sale of the real estate loans associated with the Securitization Assets Sale that were sold on August 29, 2014, was previously reported in billions as $4.0 billion, the corrected carrying value reported in billions in Note 1 in this report did not change. | ||
Additionally, during the fourth quarter of 2014, we discovered that our personal loans deemed to be troubled debt restructured (“TDR”) finance receivables were previously incorrectly excluded in the related disclosures of our finance receivables and allowance for finance receivable losses. The applicable amounts have been corrected in Notes 4 and 5 in this report for each period affected. | ||
After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated. | ||
Fortress Acquisition | ||
Due to the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress, (the “Fortress Acquisition”), the nature of the transaction, and at the direction of our acquirer, we applied push-down accounting to SFC as an acquired business. We revalued our assets and liabilities based on their fair values at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination accounting standards (“push-down accounting”). | ||
ACCOUNTING POLICIES | ||
Finance Receivables | ||
Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until customer payoff. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, unamortized deferred origination costs, and unamortized net premiums and discounts on purchased finance receivables. They are net of unamortized finance charges on precomputed receivables and unamortized points and fees. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. | ||
Although a significant portion of insurance claims and policyholder liabilities originate from the finance receivables, our policy is to report them as liabilities and not net them against finance receivables. | ||
Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. | ||
Finance Receivable Revenue Recognition | ||
We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as a revenue adjustment using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them to revenue using the interest method. | ||
We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the SpringCastle Portfolio, and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. | ||
For finance receivables that had a carrying value net of the fair value discount established at the time of the Fortress Acquisition, we stop accreting the discount at the time we stop accruing finance charges. We do not reverse accretion of discount that was previously recognized. | ||
We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. | ||
We accrete the amount required to adjust the fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described below. | ||
Purchased Credit Impaired Finance Receivables | ||
As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified principally consists of those finance receivables that are 60 days or more past due at acquisition, which had been classified as TDR finance receivables as of the acquisition date, or had been previously modified. | ||
We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. | ||
Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. | ||
We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is charged-off. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its carrying amount with the carrying amount being determined using the pro-rata method (the UPB of the particular finance receivable divided by the UPB of the pool multiplied by the carrying amount of the pool). Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool. If a finance receivable is removed from the pool because it is charged-off, it is removed at its carrying amount with a charge to the provision for finance receivable losses. | ||
Troubled Debt Restructured Finance Receivables | ||
We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables in accordance with the authoritative guidance for impaired loans. | ||
We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment in accordance with the authoritative guidance for the accounting for impaired loans. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with the authoritative guidance for the accounting for contingencies. | ||
Finance charges for TDR finance receivables require the application of judgment. We place TDR finance receivables on accrual status or nonaccrual status based on the loans’ status prior to modification. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the finance receivable liquidates. | ||
Allowance for Finance Receivable Losses | ||
We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. | ||
Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: | ||
• | prior finance receivable loss and delinquency experience; | |
• | the composition of our finance receivable portfolio; and | |
• | current economic conditions, including the levels of unemployment and personal bankruptcies. | |
We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. | ||
To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. | ||
We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit. | ||
For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. Prior to granting the deferment, we require a partial payment that is usually the greater of one-half of a regular monthly payment or the interest due on the account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. | ||
For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment that is usually the greater of one-half of a regular monthly payment or the interest due on the account and any escrow payments for real estate loans that were originated at our branch offices and require two contractual payments plus any past due principal and escrow payments due on the account for real estate loans that were originated or acquired centrally. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally (prior to March 1, 2012, we waived the remaining past due interest). The account is considered current upon granting the deferment. We limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices (one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. | ||
We do not systemically track deferments granted because we believe the deferments we elect to grant, individually and in the aggregate, do not have a material effect on the amount of contractual cash flows of the finance receivables or the timing of their receipt. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. | ||
The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. | ||
We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. | ||
Finance Receivables Held for Sale | ||
Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in finance receivables held for sale originated as held for investment revenues. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted average interest rates offered in the market for similar finance receivables. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. | ||
When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. | ||
Real Estate Owned | ||
We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. | ||
We test the balances of real estate owned for impairment on a quarterly basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the sale price we receive for a property less the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. | ||
Net Other Intangible Assets | ||
We have determined that each of our net other intangible assets has a finite useful life with the exception of the insurance licenses, which we determined to have indefinite lives. | ||
For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. | ||
For indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. | ||
Reserve for Sales Recourse Obligations | ||
When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. We include our reserve for sales recourse obligations in other liabilities. | ||
Insurance Premiums and Commissions Revenue Recognition | ||
We recognize credit insurance premiums on closed-end real estate loans and revolving finance receivables as revenue when billed monthly. We defer single premium credit insurance premiums in unearned premium reserves which we include in insurance claims and policyholder liabilities. We recognize unearned premiums on credit life insurance as revenue using the sum-of-the-digits or actuarial methods, except in the case of level-term contracts, for which we recognize unearned premiums as revenue using the straight-line method over the terms of the policies. We recognize unearned premiums on credit accident and health insurance as revenue using an average of the sum-of-the-digits and the straight-line methods. We recognize unearned premiums on credit-related property and casualty and credit involuntary unemployment insurance as revenue using the straight-line method over the terms of the policies. We recognize non-credit life insurance premiums as revenue when due. We recognize commissions on ancillary products as other revenue when received. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. | ||
Policy Reserves | ||
Policy reserves for credit life, credit accident and health, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. We base claim reserves on Company experience. We estimate reserves for losses and loss adjustment expenses for credit-related property and casualty insurance based upon claims reported plus estimates of incurred but not reported claims. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. We base insurance reserves assumed under reinsurance agreements where we assume the risk of loss on various tabular and unearned premium methods. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. | ||
Acquisition Costs | ||
We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. | ||
Valuation of Investment Securities | ||
We generally classify our investment securities as available-for-sale or trading, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. | ||
We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative as trading securities, which we record at fair value. We recognize any changes in fair value in investment revenues. | ||
We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability. | ||
Impairments on Investment Securities | ||
Available-for-sale. Each quarter, we evaluate our available-for-sale investment securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: | ||
• | we intend to sell the security; | |
• | it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or | |
• | we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). | |
If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. | ||
In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. | ||
If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. | ||
If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (1) the estimated amount relating to credit loss; and (2) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. | ||
Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the amount recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. | ||
We recognize subsequent increases and decreases in the fair value of our available-for-sale investment securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. | ||
Investment Revenue Recognition | ||
We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed securities as revenue using an effective yield based on estimated prepayments of the underlying mortgages. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. | ||
Realized Gains and Losses on Investment Securities | ||
We specifically identify realized gains and losses on investment securities and include them in investment revenues. | ||
Variable Interest Entities | ||
An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (1) the power to direct the activities that most significantly impact the economic performance of the VIE, and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. | ||
Other Invested Assets | ||
Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets. | ||
Cash and Cash Equivalents | ||
We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. | ||
We typically maintain cash in financial institutions in excess of Federal Deposit Insurance Corporation insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. | ||
Restricted Cash and Cash Equivalents | ||
We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. | ||
Long-term Debt | ||
We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount or unamortized premium associated with the debt. Other than securitized products, we generally accrete discounts and premiums over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. Additionally, we generally accrete other deferred amounts (e.g., issuance costs) following the same method elected on the associated unaccreted discount or premium. | ||
Income Taxes | ||
We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. | ||
Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including: | ||
• | the nature, frequency, and severity of current and cumulative financial reporting losses; | |
• | the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences; | |
• | the carryforward periods for the net operating and capital loss carryforwards; | |
• | the sources and timing of future taxable income, giving greater weight to discrete sources and to earlier years in the forecast period; and | |
• | tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts. | |
We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset in income. | ||
We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. | ||
Derivative Financial Instruments | ||
Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows. | ||
We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. | ||
Our previously held derivatives were formally documented and designated as cash flow hedges or hedges that did not qualify as a cash flow or fair value hedge. We recorded the effective portion of the changes in the fair value of a derivative that was highly effective and was qualified and designated as a cash flow hedge in accumulated other comprehensive income or loss, net of tax, until earnings were affected by the variability of cash flows of the hedged transaction. We recorded changes in the fair value of a derivative that did not qualify as either a cash flow or fair value hedge and changes in the fair value of hedging instruments measured as ineffectiveness in current period earnings in other revenues. We included all components of each derivative’s gain or loss in the assessment of hedge effectiveness. | ||
We discontinued hedge accounting prospectively when: | ||
• | the derivative was no longer effective in offsetting changes in the cash flows or fair value of a hedged item; | |
• | we sold, terminated, or exercised the derivative and/or the hedged item or they expired; or | |
• | we changed our objectives or strategies and designating the derivative as a hedging instrument was no longer appropriate. | |
For cash flow hedges that were discontinued for reasons other than the forecasted transaction is not probable of occurring, we began reclassifying the accumulated other comprehensive income or loss adjustment to earnings when earnings were affected by the hedged item. | ||
For cash flows from derivatives that are a part of fair value hedges or cash flow hedges, we classify the cash flows in the same category as cash flows related to the hedged item within the consolidated statements of cash flows. | ||
In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties. Effective January 1, 2012, we made an accounting policy election to continue to measure the credit risk of our derivative financial instruments that were subject to master netting agreements on a net basis by counterparty portfolio in compliance with the new authoritative guidance for fair value measurements. | ||
Benefit Plans | ||
We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. | ||
Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. | ||
Share-based Compensation Plans | ||
We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. | ||
Fair Value Measurements | ||
Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. | ||
Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. | ||
We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. | ||
We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||
Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24. | ||
In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||
We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. | ||
Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. | ||
Transactions with Affiliates of Fortress or AIG | ||
We may enter into transactions with affiliates of Fortress or AIG. These transactions occur at prevailing market rates and terms and primarily include subservicing and refinancing agreements, reinsurance agreements, and derivative transactions. See Note 9 for further information on our transactions with affiliates of Fortress and AIG. | ||
Related Party Transactions | ||
In the normal course of business, we may enter into transactions with SFI or affiliates of SFI (other than affiliates of Fortress or AIG). These transactions occur at prevailing market rates and terms and primarily include affiliate lending and capital contributions. See Note 10 for further information on our related party transactions. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED | |
Income Taxes | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), ASU 2013-11, Income Taxes (Topic 740), which clarifies the presentation requirements of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU became effective prospectively for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this ASU did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | |
Troubled Debt Restructurings | |
In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. We evaluated the potential impact of adopting this ASU and concluded that it will not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Revenue from Contracts | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Many of our revenue sources are not within the scope of this new standard and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
Going Concern | |
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern for each annual and interim reporting period, and disclose in its financial statements whether there is substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. The new standard can also be early adopted. Upon adoption, we will perform the going concern assessment in accordance with the requirements of the new ASU. | |
Derivatives and Hedging - Hybrid Financial Instruments | |
In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, requiring all entities to use the whole instrument approach to determine whether the nature of the host contract in a hybrid instrument issued in the form of a share is more akin to debt or to equity. Under this approach, an issuer or investor considers all stated and implied substantive terms and features of a hybrid instrument when determining the nature of the host contract. The ASU clarifies that the existence or omission of any single feature does not determine the economic characteristics and risks of the host contract and that the presence of an investor-held, fixed price, noncontingent redemption option is not determinative. This guidance applies to both public and nonpublic entities that issue or invest in hybrid instruments issued in the form of shares, and is effective for public entities with fiscal years beginning after December 15, 2014 and nonpublic entities with fiscal years beginning after December 15, 2015. The Company has not issued any hybrid instruments in the form of shares. | |
Pushdown Accounting | |
In November 2014, the FASB issued ASU 2014-17, Pushdown Accounting, which gives all companies the option to apply pushdown accounting when they are acquired by another party. The ASU provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. Concurrently, the SEC eliminated its guidance which had required or precluded pushdown accounting for registrants generally based on the percentage of ownership. These developments make pushdown accounting optional for all companies effective immediately. This ASU will be applicable to any entity acquired by the Company. | |
Consolidation | |
In February 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. |
Finance_Receivables
Finance Receivables | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Finance Receivables | Finance Receivables | ||||||||||||||||||||
Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below: | |||||||||||||||||||||
• | Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, generally have maximum original terms of four years, and are usually fixed-rate, fixed-term loans. At December 31, 2014, $1.9 billion of personal loans, or 50%, were secured by collateral consisting of titled personal property (such as automobiles), $1.3 billion, or 36%, were secured by consumer household goods or other items of personal property, and the remainder was unsecured. | ||||||||||||||||||||
• | SpringCastle Portfolio — are loans jointly acquired from HSBC Finance Corporation and certain of its affiliates (collectively, “HSBC”) on April 1, 2013 through a joint venture in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014, as previously discussed in Note 1. These loans include unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests). The SpringCastle Portfolio includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. | ||||||||||||||||||||
• | Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months, and are considered non-conforming. At December 31, 2014, $227.0 million of real estate loans, or 36%, were secured by first mortgages and $398.4 million, or 64%, were secured by second mortgages. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. | ||||||||||||||||||||
• | 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. In January 2013, we ceased purchasing retail sales contracts and revolving retail accounts. | ||||||||||||||||||||
Components of net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Gross receivables * | $ | 4,462,123 | $ | 1,941,334 | $ | 621,105 | $ | 52,266 | $ | 7,076,828 | |||||||||||
Unearned finance charges and points and fees | (764,473 | ) | — | (1,173 | ) | (4,965 | ) | (770,611 | ) | ||||||||||||
Accrued finance charges | 58,102 | 37,856 | 5,328 | 404 | 101,690 | ||||||||||||||||
Deferred origination costs | 44,036 | — | 75 | — | 44,111 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross receivables * | $ | 3,632,462 | $ | — | $ | 7,843,787 | $ | 108,457 | $ | 11,584,706 | |||||||||||
Unearned finance charges and points and fees | (559,902 | ) | — | (1,208 | ) | (10,444 | ) | (571,554 | ) | ||||||||||||
Accrued finance charges | 48,008 | — | 42,163 | 898 | 91,069 | ||||||||||||||||
Deferred origination costs | 39,364 | — | 274 | — | 39,638 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; | ||||||||||||||||||||
• | finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||||||||
• | purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. | ||||||||||||||||||||
Included in the table above are personal loans with a carrying value of $1.9 billion at December 31, 2014 and $1.6 billion at December 31, 2013 and SpringCastle Portfolio loans with a carrying value of $2.0 billion at December 31, 2014 associated with securitizations that remain on our balance sheet. Also included in the table above are real estate loans with a carrying value of $5.6 billion at December 31, 2013 associated with mortgage securitizations that were sold during 2014. See Note 1 for further information on these sales. The carrying value of consolidated long-term debt associated with securitizations totaled $3.6 billion at December 31, 2014 and $5.2 billion at December 31, 2013. See Note 12 for further discussion regarding our securitization transactions. Also included in the table above are finance receivables with a carrying value of $1.0 billion at December 31, 2013, which were pledged as collateral for our secured term loan that we fully repaid in March 2014. See Note 11 for further discussion of the repayment of our secured term loan. | |||||||||||||||||||||
Maturities of net finance receivables by type at December 31, 2014 were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
2015 | $ | 933,835 | $ | 110,456 | $ | 3,887 | $ | 11,313 | $ | 1,059,491 | |||||||||||
2016 | 1,242,892 | 150,021 | 8,014 | 13,089 | 1,414,016 | ||||||||||||||||
2017 | 973,933 | 160,995 | 14,044 | 8,535 | 1,157,507 | ||||||||||||||||
2018 | 500,851 | 173,872 | 17,049 | 4,880 | 696,652 | ||||||||||||||||
2019 | 103,485 | 184,577 | 17,100 | 2,554 | 307,716 | ||||||||||||||||
2020+ | 44,792 | 1,199,269 | 565,241 | 7,334 | 1,816,636 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
Maturities are not a forecast of future cash collections. Company experience has shown that customers typically renew, convert or pay in full a substantial portion of finance receivables prior to maturity. | |||||||||||||||||||||
Unused lines of credit extended to customers by the Company were as follows: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||
Personal loans | $ | 1,471 | $ | 4,996 | |||||||||||||||||
SpringCastle Portfolio | 353,650 | — | |||||||||||||||||||
Real estate loans | 30,646 | 32,338 | |||||||||||||||||||
Total | $ | 385,767 | $ | 37,334 | |||||||||||||||||
Unused lines of credit on our personal loans can be suspended if one of the following occurs: the value of the collateral declines significantly; we believe the borrower will be unable to fulfill the repayment obligations; or any other default by the borrower of any material obligation under the agreement. Unused lines of credit on our real estate loans and the SpringCastle Portfolio secured by subordinate residential real estate mortgages can be suspended if one of the following occurs: (1) the value of the real estate declines significantly below the property’s initial appraised value; (2) we believe the borrower will be unable to fulfill the repayment obligations because of a material change in the borrower’s financial circumstances; or (3) any other default by the borrower of any material obligation under the agreement occurs. Unused lines of credit on home equity lines of credit, including the SpringCastle Portfolio secured by subordinate residential real estate mortgages, can be terminated for delinquency. Unused lines of credit on the unsecured loans of the SpringCastle Portfolio can be terminated at our discretion. | |||||||||||||||||||||
GEOGRAPHIC DIVERSIFICATION | |||||||||||||||||||||
Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. However, the unemployment and housing market stresses in the U.S. have been national in scope and not limited to a particular region. The largest concentrations of net finance receivables were as follows: | |||||||||||||||||||||
December 31, | 2014 | 2013 * | |||||||||||||||||||
(dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||
North Carolina | $ | 634,197 | 10 | % | $ | 800,491 | 7 | % | |||||||||||||
California | 533,073 | 8 | 1,091,734 | 10 | |||||||||||||||||
Illinois | 411,740 | 6 | 605,565 | 5 | |||||||||||||||||
Pennsylvania | 388,024 | 6 | 527,225 | 5 | |||||||||||||||||
Ohio | 387,657 | 6 | 652,540 | 6 | |||||||||||||||||
Virginia | 348,644 | 5 | 683,241 | 6 | |||||||||||||||||
Indiana | 344,329 | 5 | 432,235 | 4 | |||||||||||||||||
Florida | 327,719 | 5 | 716,802 | 6 | |||||||||||||||||
Other | 3,076,635 | 49 | 5,634,025 | 51 | |||||||||||||||||
Total | $ | 6,452,018 | 100 | % | $ | 11,143,858 | 100 | % | |||||||||||||
* | December 31, 2013 concentrations of net finance receivables are presented in the order of December 31, 2014 state concentrations. | ||||||||||||||||||||
CREDIT QUALITY INDICATORS | |||||||||||||||||||||
We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators. | |||||||||||||||||||||
We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. We had $0.1 million of revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2014, compared to $0.4 million at December 31, 2013. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. | |||||||||||||||||||||
Delinquent Finance Receivables | |||||||||||||||||||||
We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. | |||||||||||||||||||||
The following is a summary of net finance receivables by type and by days delinquent: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 36,836 | $ | 30,680 | $ | 12,039 | $ | 543 | $ | 80,098 | |||||||||||
90-119 days past due | 29,332 | 18,988 | 9,039 | 471 | 57,830 | ||||||||||||||||
120-149 days past due | 24,200 | 15,689 | 5,516 | 501 | 45,906 | ||||||||||||||||
150-179 days past due | 20,518 | 14,172 | 3,573 | 308 | 38,571 | ||||||||||||||||
180 days or more past due | 1,697 | 2,248 | 12,034 | 25 | 16,004 | ||||||||||||||||
Total delinquent finance receivables | 112,583 | 81,777 | 42,201 | 1,848 | 238,409 | ||||||||||||||||
Current | 3,631,891 | 1,839,595 | 564,961 | 44,846 | 6,081,293 | ||||||||||||||||
30-59 days past due | 55,314 | 57,818 | 18,173 | 1,011 | 132,316 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 28,297 | $ | — | $ | 96,778 | $ | 1,290 | $ | 126,365 | |||||||||||
90-119 days past due | 22,648 | — | 67,966 | 1,017 | 91,631 | ||||||||||||||||
120-149 days past due | 18,662 | — | 54,882 | 757 | 74,301 | ||||||||||||||||
150-179 days past due | 14,618 | — | 45,040 | 740 | 60,398 | ||||||||||||||||
180 days or more past due | 934 | — | 353,003 | 173 | 354,110 | ||||||||||||||||
Total delinquent finance receivables | 85,159 | — | 617,669 | 3,977 | 706,805 | ||||||||||||||||
Current | 3,027,460 | — | 7,092,107 | 92,093 | 10,211,660 | ||||||||||||||||
30-59 days past due | 47,313 | — | 175,240 | 2,841 | 225,394 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Nonperforming Finance Receivables | |||||||||||||||||||||
We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss. | |||||||||||||||||||||
Our performing and nonperforming net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Performing | $ | 3,724,041 | $ | 1,928,093 | $ | 595,173 | $ | 46,400 | $ | 6,293,707 | |||||||||||
Nonperforming | 75,747 | 51,097 | 30,162 | 1,305 | 158,311 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Performing | $ | 3,103,070 | $ | — | $ | 7,364,125 | $ | 96,224 | $ | 10,563,419 | |||||||||||
Nonperforming | 56,862 | — | 520,891 | 2,687 | 580,440 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES | |||||||||||||||||||||
As a result of the Fortress Acquisition, we applied push-down accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value on November 30, 2010. | |||||||||||||||||||||
In connection with the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013. | |||||||||||||||||||||
We report the carrying amount 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. | |||||||||||||||||||||
We report finance receivables held for sale of $205.0 million at December 31, 2014, which consist of our non-core real estate loans. See Note 6 for further information on our finance receivables held for sale. At December 31, 2014, finance receivables held for sale include purchased credit impaired real estate loans, as well as TDR real estate loans. Therefore, we are presenting the financial information for the purchased credit impaired finance receivables and the TDR finance receivables by finance receivables held for investment and finance receivables held for sale in the tables below. | |||||||||||||||||||||
Information regarding these purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 339,795 | $ | 92,794 | $ | 432,589 | |||||||||||||||
Outstanding balance (b) | 628,091 | 150,983 | 779,074 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 4,534 | 4,534 | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying amount, net of allowance | $ | — | $ | 1,250,621 | $ | 1,250,621 | |||||||||||||||
Outstanding balance | — | 1,782,271 | 1,782,271 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 57,261 | 57,261 | ||||||||||||||||||
(a) | The carrying amount of purchased credit impaired FA Loans at December 31, 2014 includes $67.5 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
(b) | The outstanding balance of purchased credit impaired FA Loans at December 31, 2014 includes $99.3 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
The allowance for purchased credit impaired finance receivable losses at December 31, 2014 and 2013 reflected the net carrying value of these purchased credit impaired finance receivables 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 thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | — | 766,927 | 766,927 | ||||||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (36,707 | ) | (79,876 | ) | (116,583 | ) | |||||||||||||||
Reclassifications from nonaccretable difference (d) | 331,712 | (617 | ) | 331,095 | |||||||||||||||||
Transfers due to finance receivables sold | — | (651,108 | ) | (651,108 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (14,128 | ) | (15,893 | ) | (30,021 | ) | |||||||||||||||
Balance at end of period | $ | 540,821 | $ | 19,433 | $ | 560,254 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
Accretion | — | (128,167 | ) | (128,167 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 303,328 | 303,328 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (33,113 | ) | (33,113 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 766,927 | $ | 766,927 | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 464,415 | $ | 464,415 | |||||||||||||||
Accretion | — | (131,442 | ) | (131,442 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 318,333 | 318,333 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (26,427 | ) | (26,427 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
(a) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(b) | Accretion on our purchased credit impaired FA Loans for 2014 includes $14.0 million of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | ||||||||||||||||||||
(c) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||||||||
(d) | Reclassifications from nonaccretable difference represent the increases in accretion resulting from higher estimated undiscounted cash flows. | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES | |||||||||||||||||||||
Information regarding TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 22,441 | $ | 11,107 | $ | 195,602 | $ | 229,150 | |||||||||||||
TDR net finance receivables (c) | 22,021 | 9,905 | 196,366 | 228,292 | |||||||||||||||||
Allowance for TDR finance receivable losses | 1,522 | 2,673 | 31,869 | 36,064 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR gross finance receivables (a) | $ | 14,999 | $ | — | $ | 1,366,346 | $ | 1,381,345 | |||||||||||||
TDR net finance receivables | 14,718 | — | 1,371,321 | 1,386,039 | |||||||||||||||||
Allowance for TDR finance receivable losses | 923 | — | 177,011 | 177,934 | |||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
(b) | TDR real estate loan gross finance receivables at December 31, 2014 include $90.8 million of TDR finance receivables held for sale. | ||||||||||||||||||||
(c) | TDR real estate loan net finance receivables at December 31, 2014 include $91.1 million of TDR finance receivables held for sale. | ||||||||||||||||||||
We have no commitments to lend additional funds on our TDR finance receivables. | |||||||||||||||||||||
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR average net receivables (a) | $ | 16,459 | $ | 5,178 | $ | 950,966 | $ | 972,603 | |||||||||||||
TDR finance charges recognized (b) | 1,823 | 594 | 47,572 | 49,989 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR average net receivables | $ | 14,603 | $ | — | $ | 1,116,386 | $ | 1,130,989 | |||||||||||||
TDR finance charges recognized | 1,228 | — | 62,929 | 64,157 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
TDR average net receivables | $ | 13,261 | $ | — | $ | 567,726 | $ | 580,987 | |||||||||||||
TDR finance charges recognized | 1,212 | — | 31,076 | 32,288 | |||||||||||||||||
(a) | TDR real estate loan average net receivables for 2014 include $248.1 million of TDR average net receivables held for sale, which reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | ||||||||||||||||||||
(b) | TDR real estate loan finance charges recognized for 2014 include $4.5 million of interest income on TDR finance receivables held for sale. | ||||||||||||||||||||
The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months. | |||||||||||||||||||||
Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Pre-modification TDR net finance receivables (a) | $ | 17,595 | $ | 10,363 | $ | 213,350 | $ | 241,308 | |||||||||||||
Post-modification TDR net finance receivables (a) | $ | 16,108 | $ | 10,258 | $ | 203,295 | $ | 229,661 | |||||||||||||
Number of TDR accounts (b) | 4,206 | 1,155 | 2,374 | 7,735 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 14,506 | $ | — | $ | 573,430 | $ | 587,936 | |||||||||||||
Post-modification TDR net finance receivables | $ | 12,388 | $ | — | $ | 593,473 | $ | 605,861 | |||||||||||||
Number of TDR accounts | 3,240 | — | 7,085 | 10,325 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 18,225 | $ | — | $ | 548,791 | $ | 567,016 | |||||||||||||
Post-modification TDR net finance receivables | $ | 15,536 | $ | — | $ | 557,260 | $ | 572,796 | |||||||||||||
Number of TDR accounts | 5,639 | — | 5,695 | 11,334 | |||||||||||||||||
(a) | TDR real estate loan net finance receivables for 2014 include $6.2 million of pre-modification and $6.7 million of post-modification TDR net finance receivables held for sale. | ||||||||||||||||||||
(b) | Number of new TDR real estate loan accounts for 2014 includes 94 new TDR accounts that were held for sale. | ||||||||||||||||||||
Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR net finance receivables (a) (b) | $ | 499 | $ | 566 | $ | 33,349 | $ | 34,414 | |||||||||||||
Number of TDR accounts (b) | 141 | 53 | 524 | 718 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR net finance receivables (a) | $ | 1,294 | $ | — | $ | 68,811 | $ | 70,105 | |||||||||||||
Number of TDR accounts | 355 | — | 928 | 1,283 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
TDR net finance receivables (a) | $ | 1,154 | $ | — | $ | 66,096 | $ | 67,250 | |||||||||||||
Number of TDR accounts | 438 | — | 594 | 1,032 | |||||||||||||||||
(a) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | ||||||||||||||||||||
(b) | TDR real estate loan net finance receivables for 2014 that defaulted during the previous 12 month period include 49 TDR accounts that were held for sale totaling $2.7 million. |
Allowance_for_Finance_Receivab
Allowance for Finance Receivable Losses | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Consolidated Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Provision for finance receivable losses | 202,735 | 48,968 | 113,000 | 2,855 | 367,558 | ||||||||||||||||
Charge-offs (a) | (191,817 | ) | (51,763 | ) | (75,936 | ) | (5,309 | ) | (324,825 | ) | |||||||||||
Recoveries (b) | 25,288 | 4,862 | 6,801 | 1,360 | 38,311 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (c) | — | — | (239,726 | ) | — | (239,726 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (d) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 130,529 | $ | 2,777 | $ | 40,171 | $ | 746 | $ | 174,223 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
Provision for finance receivable losses | 129,839 | — | 264,677 | (1,002 | ) | 393,514 | |||||||||||||||
Charge-offs (e) | (148,980 | ) | — | (158,392 | ) | (9,500 | ) | (316,872 | ) | ||||||||||||
Recoveries (f) | 47,636 | — | 15,886 | 10,082 | 73,604 | ||||||||||||||||
Transfers to finance receivables held for sale (g) | (752 | ) | — | — | — | (752 | ) | ||||||||||||||
Balance at end of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | 39,522 | $ | — | $ | 28,790 | $ | 1,007 | $ | 69,319 | |||||||||||
Provision for finance receivable losses | 114,288 | — | 215,613 | 11,061 | 340,962 | ||||||||||||||||
Charge-offs | (119,383 | ) | — | (139,980 | ) | (20,035 | ) | (279,398 | ) | ||||||||||||
Recoveries | 33,260 | — | 9,438 | 10,421 | 53,119 | ||||||||||||||||
Transfers to finance receivables held for sale (h) | (1,107 | ) | — | — | (194 | ) | (1,301 | ) | |||||||||||||
Balance at end of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
(a) | Charge-offs during 2014 included a $4.4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. | ||||||||||||||||||||
(b) | Recoveries during 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | ||||||||||||||||||||
(c) | During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(d) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(e) | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | ||||||||||||||||||||
(f) | Recoveries in 2013 included $37.2 million ($22.7 million of personal loan recoveries, $9.1 million of real estate loan recoveries, and $5.4 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4.0 million adjustment for the subsequent buyback of certain finance receivables. | ||||||||||||||||||||
(g) | During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18.0 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(h) | During the first quarter of 2012, we decreased the allowance for finance receivable losses as a result of the transfers of $77.8 million of finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $71.7 million at December 31, 2014 and $153.1 million at December 31, 2013. See Note 12 for further discussion regarding our securitization transactions. | |||||||||||||||||||||
The carrying value charged-off for purchased credit impaired loans was as follows: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Real estate loans | |||||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 13,156 | $ | — | $ | — | |||||||||||||||
FA Loans gross charge-offs * | 15,331 | 41,358 | 38,271 | ||||||||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | |||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129,007 | $ | 104 | $ | 3,768 | $ | 746 | $ | 133,625 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 4,534 | — | 4,534 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | 1,522 | 2,673 | 31,869 | — | 36,064 | ||||||||||||||||
Total | $ | 130,529 | $ | 2,777 | $ | 40,171 | $ | 746 | $ | 174,223 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,777,767 | $ | 1,629,490 | $ | 490,235 | $ | 47,705 | $ | 5,945,197 | |||||||||||
Purchased credit impaired finance receivables | — | 339,795 | 29,827 | — | 369,622 | ||||||||||||||||
TDR finance receivables | 22,021 | 9,905 | 105,273 | — | 137,199 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 93,400 | $ | — | $ | 1,760 | $ | 1,840 | $ | 97,000 | |||||||||||
Purchased credit impaired finance receivables | — | — | 57,261 | — | 57,261 | ||||||||||||||||
TDR finance receivables | 923 | — | 177,011 | — | 177,934 | ||||||||||||||||
Total | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,145,214 | $ | — | $ | 5,205,813 | $ | 98,911 | $ | 8,449,938 | |||||||||||
Purchased credit impaired finance receivables | — | — | 1,307,882 | — | 1,307,882 | ||||||||||||||||
TDR finance receivables | 14,718 | — | 1,371,321 | — | 1,386,039 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
See Note 2 for additional information on the determination of the allowance for finance receivable losses. |
Finance_Receivables_Held_for_S
Finance Receivables Held for Sale | 12 Months Ended |
Dec. 31, 2014 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale |
We report finance receivables held for sale of $205.0 million at December 31, 2014, which are carried at lower of cost or fair value and secured by first mortgages. We used the aggregate basis to determine the lower of cost or fair value of the finance receivables held for sale since the underlying real estate loans were presented to the buyers on a portfolio basis. We also separately present the interest income on our finance receivables held for sale as interest income on finance receivables held for sale originated as held for investment on our consolidated statements of operations, which totaled $60.1 million for 2014. | |
During 2014, we transferred $6.6 billion of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these loans for the foreseeable future. In 2014, we sold finance receivables held for sale totaling $6.3 billion and recorded a net gain of $701.6 million. At December 31, 2014, the remaining holdback provision relating to these real estate sales totaled $64.4 million. See Note 1 for further information on each of these sales. | |
During 2013, we transferred $17.3 million of finance receivables (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2013, we sold finance receivables held for sale totaling $18.0 million and recorded a loss in other revenues at the time of sale of $1.8 million. | |
During 2012, we transferred $180.9 million of finance receivables (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. We marked these loans to the lower of cost or fair value at the time of transfer and subsequently recorded additional gains in other revenues at the time of sale resulting in net gains of $4.5 million in 2012. In 2012, we sold finance receivables held for sale totaling $171.0 million. | |
We did not have any transfer activity between finance receivables held for sale to finance receivables held for investment during 2014 or 2013. During 2012, we transferred $1.4 million of finance receivables from held for sale back to held for investment due to management’s intent to hold these finance receivables for the foreseeable future. |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
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 thousands) | Cost/ | Unrealized Gains | Unrealized Losses | Fair | |||||||||||||||||||||
Amortized Cost | Value | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 60,704 | $ | 2,638 | $ | (11 | ) | $ | 63,331 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 99,228 | 2,558 | (103 | ) | 101,683 | ||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1,125 | — | — | 1,125 | |||||||||||||||||||||
Corporate debt | 256,049 | 11,833 | (954 | ) | 266,928 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 70,514 | 2,470 | (27 | ) | 72,957 | ||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 24,610 | 72 | (253 | ) | 24,429 | ||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 61,334 | 33 | (117 | ) | 61,250 | ||||||||||||||||||||
Total | 573,564 | 19,604 | (1,465 | ) | 591,703 | ||||||||||||||||||||
Preferred stock | 7,163 | 83 | (152 | ) | 7,094 | ||||||||||||||||||||
Other long-term investments (b) | 1,305 | 44 | (6 | ) | 1,343 | ||||||||||||||||||||
Common stocks (c) | 674 | — | — | 674 | |||||||||||||||||||||
Total | $ | 582,706 | $ | 19,731 | $ | (1,623 | ) | $ | 600,814 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 58,748 | $ | 565 | $ | (680 | ) | $ | 58,633 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 101,118 | 1,703 | (76 | ) | 102,745 | ||||||||||||||||||||
Corporate debt | 233,977 | 6,126 | (2,187 | ) | 237,916 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 81,259 | 1,923 | (559 | ) | 82,623 | ||||||||||||||||||||
CMBS | 7,487 | 76 | (16 | ) | 7,547 | ||||||||||||||||||||
CDO/ABS | 3,981 | 19 | (24 | ) | 3,976 | ||||||||||||||||||||
Total | 486,570 | 10,412 | (3,542 | ) | 493,440 | ||||||||||||||||||||
Preferred stock | 7,844 | — | (39 | ) | 7,805 | ||||||||||||||||||||
Other long-term investments (b) | 1,394 | — | (125 | ) | 1,269 | ||||||||||||||||||||
Common stocks (c) | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 496,658 | $ | 10,412 | $ | (3,706 | ) | $ | 503,364 | ||||||||||||||||
(a) | Includes certificates of deposit totaling $1.0 million pledged as collateral, primarily to support bank lines of credit. | ||||||||||||||||||||||||
(b) | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at December 31, 2014 and $0.6 million at December 31, 2013). | ||||||||||||||||||||||||
(c) | Consists of Federal Home Loan Bank common stock, which is classified as a restricted investment and carried at cost. | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss. | |||||||||||||||||||||||||
Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | |||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | — | $ | — | $ | 970 | $ | (11 | ) | $ | 970 | $ | (11 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 27,395 | (100 | ) | 624 | (3 | ) | 28,019 | (103 | ) | ||||||||||||||||
Corporate debt | 35,558 | (828 | ) | 6,119 | (126 | ) | 41,677 | (954 | ) | ||||||||||||||||
RMBS | 8,591 | (27 | ) | — | — | 8,591 | (27 | ) | |||||||||||||||||
CMBS | 16,426 | (178 | ) | 2,034 | (75 | ) | 18,460 | (253 | ) | ||||||||||||||||
CDO/ABS | 46,113 | (117 | ) | — | — | 46,113 | (117 | ) | |||||||||||||||||
Total | 134,083 | (1,250 | ) | 9,747 | (215 | ) | 143,830 | (1,465 | ) | ||||||||||||||||
Preferred stock | 6,071 | (152 | ) | — | — | 6,071 | (152 | ) | |||||||||||||||||
Other long-term investments | — | — | 105 | (6 | ) | 105 | (6 | ) | |||||||||||||||||
Total | $ | 140,154 | $ | (1,402 | ) | $ | 9,852 | $ | (221 | ) | $ | 150,006 | $ | (1,623 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 44,314 | $ | (680 | ) | $ | — | $ | — | $ | 44,314 | $ | (680 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 14,220 | (76 | ) | — | — | 14,220 | (76 | ) | |||||||||||||||||
Corporate debt | 65,809 | (1,535 | ) | 11,772 | (652 | ) | 77,581 | (2,187 | ) | ||||||||||||||||
RMBS | 18,288 | (559 | ) | — | — | 18,288 | (559 | ) | |||||||||||||||||
CMBS | 2,993 | (16 | ) | — | — | 2,993 | (16 | ) | |||||||||||||||||
CDO/ABS | 2,658 | (24 | ) | — | — | 2,658 | (24 | ) | |||||||||||||||||
Total | 148,282 | (2,890 | ) | 11,772 | (652 | ) | 160,054 | (3,542 | ) | ||||||||||||||||
Preferred stock | 7,805 | (39 | ) | — | — | 7,805 | (39 | ) | |||||||||||||||||
Other long-term investments | 1,269 | (125 | ) | — | — | 1,269 | (125 | ) | |||||||||||||||||
Total | $ | 157,356 | $ | (3,054 | ) | $ | 11,772 | $ | (652 | ) | $ | 169,128 | $ | (3,706 | ) | ||||||||||
We continue to monitor unrealized loss positions for potential impairments. During 2014, we did not recognize any other-than-temporary impairment credit loss write-downs to investment revenues. During 2013, we recognized other-than-temporary impairment credit loss write-downs in investment revenues on RMBS totaling $26 thousand. We recognized other-than-temporary impairment credit loss write-downs in investment revenues on corporate debt, RMBS, and CMBS totaling $0.9 million in 2012. | |||||||||||||||||||||||||
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of period | $ | 1,523 | $ | 1,650 | $ | 3,725 | |||||||||||||||||||
Additions: | |||||||||||||||||||||||||
Due to other-than-temporary impairments: | |||||||||||||||||||||||||
Impairment previously recognized | — | 26 | 924 | ||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | (205 | ) | (153 | ) | (2,999 | ) | |||||||||||||||||||
Balance at end of period | $ | 1,318 | $ | 1,523 | $ | 1,650 | |||||||||||||||||||
The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Fair value | $ | 260,418 | $ | 253,705 | $ | 107,654 | |||||||||||||||||||
Realized gains | $ | 8,946 | $ | 4,176 | $ | 1,546 | |||||||||||||||||||
Realized losses | (1,131 | ) | (2,002 | ) | (1,222 | ) | |||||||||||||||||||
Net realized gains | $ | 7,815 | $ | 2,174 | $ | 324 | |||||||||||||||||||
Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2014 were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Fair | Amortized | |||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 32,646 | $ | 32,188 | |||||||||||||||||||||
Due after 1 year through 5 years | 179,521 | 176,060 | |||||||||||||||||||||||
Due after 5 years through 10 years | 80,242 | 77,809 | |||||||||||||||||||||||
Due after 10 years | 140,658 | 131,049 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 158,636 | 156,458 | |||||||||||||||||||||||
Total | $ | 591,703 | $ | 573,564 | |||||||||||||||||||||
Actual maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity to achieve corporate requirements and investment strategies. | |||||||||||||||||||||||||
The fair value of bonds on deposit with insurance regulatory authorities totaled $11.6 million at December 31, 2014 and $10.7 million at December 31, 2013. | |||||||||||||||||||||||||
TRADING SECURITIES | |||||||||||||||||||||||||
The fair value of trading securities by type was as follows: | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 302,084 | $ | — | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 13,788 | — | |||||||||||||||||||||||
Certificates of deposit and commercial paper | 237,637 | — | |||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 19,613 | — | |||||||||||||||||||||||
Corporate debt | 1,055,682 | 1,837 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 35,491 | 10,671 | |||||||||||||||||||||||
CMBS | 148,880 | 29,897 | |||||||||||||||||||||||
CDO/ABS | 507,342 | 9,249 | |||||||||||||||||||||||
Total | $ | 2,320,517 | $ | 51,654 | |||||||||||||||||||||
The net unrealized and realized gains (losses) on our trading securities, which we report in investment revenues, were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net unrealized gains (losses) on trading securities held at year end | $ | (9,202 | ) | $ | (476 | ) | $ | 3,344 | |||||||||||||||||
Net realized gains on trading securities sold or redeemed during the year | 4,845 | 214 | 239 | ||||||||||||||||||||||
Total | $ | (4,357 | ) | $ | (262 | ) | $ | 3,583 | |||||||||||||||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Assets [Abstract] | |||||||||||||
Other Assets | Other Assets | ||||||||||||
Components of other assets were as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Current tax receivable (a) | $ | 104,723 | $ | 28,496 | |||||||||
Other investments (b) | 103,546 | 109,465 | |||||||||||
Receivables related to sales of real estate loans and related trust assets (c) | 78,747 | — | |||||||||||
Fixed assets, net (d) | 73,440 | 70,031 | |||||||||||
Prepaid expenses and deferred charges | 51,869 | 64,466 | |||||||||||
Ceded insurance reserves | 21,965 | 21,655 | |||||||||||
Other intangible assets, net | 19,597 | 23,952 | |||||||||||
Real estate owned | 13,295 | 48,498 | |||||||||||
Receivables from parent and affiliates | 11,563 | 39,364 | |||||||||||
Escrow advance receivable | 8,069 | 23,527 | |||||||||||
Other | 16,033 | 33,722 | |||||||||||
Total | $ | 502,847 | $ | 463,176 | |||||||||
(a) | Current tax receivable includes current federal and state tax assets. | ||||||||||||
(b) | Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. | ||||||||||||
(c) | Receivables related to sales of real estate loans and related trust assets includes 64.4 million of holdback provisions on the real estate loan sales as disclosed in Note 1. | ||||||||||||
(d) | Fixed assets were net of accumulated depreciation of $167.5 million at December 31, 2014 and $154.5 million at December 31, 2013. | ||||||||||||
OTHER INTANGIBLE ASSETS | |||||||||||||
The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: | |||||||||||||
(dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Other Intangible Assets | ||||||||||
31-Dec-14 | |||||||||||||
Value of business acquired (“VOBA”) | $ | 35,778 | $ | (31,799 | ) | $ | 3,979 | ||||||
Customer relationships | 17,879 | (14,847 | ) | 3,032 | |||||||||
Licenses | 11,575 | — | 11,575 | ||||||||||
Customer lists | 9,695 | (8,684 | ) | 1,011 | |||||||||
Total | $ | 74,927 | $ | (55,330 | ) | $ | 19,597 | ||||||
31-Dec-13 | |||||||||||||
VOBA | $ | 35,778 | $ | (31,260 | ) | $ | 4,518 | ||||||
Customer relationships | 17,879 | (11,559 | ) | 6,320 | |||||||||
Licenses | 11,575 | — | 11,575 | ||||||||||
Customer lists | 9,695 | (8,156 | ) | 1,539 | |||||||||
Total | $ | 74,927 | $ | (50,975 | ) | $ | 23,952 | ||||||
Amortization expense totaled $4.4 million in 2014, $5.1 million in 2013, and $13.6 million in 2012. Amortization expense for 2012 included impairment charges totaling $4.6 million. The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. | |||||||||||||
(dollars in thousands) | Estimated Aggregate Amortization Expense | ||||||||||||
2015 | $ | 3,931 | |||||||||||
2016 | 768 | ||||||||||||
2017 | 213 | ||||||||||||
2018 | 167 | ||||||||||||
2019 | 161 | ||||||||||||
Transactions_with_Affiliates_o
Transactions with Affiliates of Fortress or AIG | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Transactions with Affiliates of Fortress or AIG | Related Party Transactions | ||||||||||||
AFFILIATE LENDING | |||||||||||||
Note Receivable from Parent | |||||||||||||
SFC’s note receivable from parent is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2015 and does not expect to demand payment from SFI in 2015. The note receivable from parent totaled $251.5 million at December 31, 2014 and $168.0 million at December 31, 2013. Interest receivable on this note totaled $0.4 million at December 31, 2014 and $0.5 million at December 31, 2013. The interest rate for the UPB is the prime rate. Interest revenue on the note receivable from SFI totaled $5.3 million during 2014, $15.1 million during 2013, and $17.3 million during 2012. | |||||||||||||
Receivables from Parent and Affiliates | |||||||||||||
At December 31, 2014 and 2013, receivables from our parent and affiliates totaled $11.6 million and $39.4 million, respectively. SFC had a receivable from Second Street Funding Corporation, a subsidiary of SFI, for income taxes payable under current and prior tax sharing agreements, which totaled $4.0 million and $15.6 million at December 31, 2014 and 2013, respectively. Receivables from parent and affiliates also included interest receivable on SFC’s note receivable from SFI previously discussed in this Note. Receivables from our parent and affiliates at December 31, 2014 are presented net of a $42.7 million payable to SFI. Excluding this payable, receivables from our parent and affiliates totaled $54.3 million at December 31, 2014. | |||||||||||||
Cash Services, Inc. (“CSI”), a subsidiary of SFC, had a receivable related to cash payments due from SpringCastle Holdings, LLC, a subsidiary of SAC, of $16.4 million at December 31, 2013. As a result of the SAC Capital Contribution on July 31, 2014, SpringCastle Holdings, LLC is an indirect subsidiary of SFC. In addition, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had a receivable of $1.0 million at December 31, 2013 from Springleaf Consumer Loan, Inc. (“SCL”), an indirect subsidiary of SFI, due to an overpayment of internet lending referral fees charged to the branch network. | |||||||||||||
Payables to Parent and Affiliates | |||||||||||||
At December 31, 2014 and 2013, payables to parent and affiliates totaled $47.7 million and $38.5 million, respectively. SFC’s payable to parent totaled $16.6 million and $22.0 million at December 31, 2014 and 2013, respectively, primarily due to payments made by SFI for the benefit of SFC. At December 31, 2014 and 2013, SMFC, a subsidiary of SFC, had net payables of $19.2 million and $9.4 million, respectively, to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At December 31, 2014, SMFC also had a payable of $0.5 million to SCL for internet lending referral fees charged to the branch network. | |||||||||||||
SFI provides funding for SAC’s operations through an amended and restated intercompany demand note dated June 7, 2013, not to exceed $2.5 million. The note is payable in full on December 31, 2022, and is prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance is 8.00%. At December 31, 2014, the note payable to SFI totaled $1.2 million and was reported in other liabilities. Interest expense on the note payable to SFI totaled $80 thousand for 2014. | |||||||||||||
Pursuant to an intercompany demand note dated July 26, 2013 between SFC and SFI, SFI could borrow up to $50.0 million from SFC. The note was payable in full on December 14, 2014, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was 7.00%. SFI intended to use advances under the note, if any, for general corporate purposes. At December 31, 2013, SFI had not drawn any funds under this note. | |||||||||||||
SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At December 31, 2014, SpringCastle Holdings LLC’s payable to SFI totaled $10.2 million. | |||||||||||||
CSI, a subsidiary of SFC, collects cash payments for all entities. At December 31, 2013, CSI’s payable to SpringCastle Holdings, LLC totaled $6.8 million. | |||||||||||||
CASH COLLATERAL | |||||||||||||
In February 2013, SFI paid $3.1 million, on behalf of Financial Services of South Carolina, Inc. (“SFSSC”), a subsidiary of SFC, towards the payment of unclaimed funds to South Carolina charities in connection with a judgment entered against SFSSC in 2012. In late March 2013, SFSSC fully repaid SFI for the cash collateral. In addition, SFSSC paid SFI $0.6 million of fees under a related fee agreement during the first quarter of 2013. | |||||||||||||
CAPITAL CONTRIBUTIONS | |||||||||||||
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. See Note 1 for further information. | |||||||||||||
During January and July of 2014, 2013, and 2012, SFC received capital contributions from SFI of $10.5 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, 2013, and 2012, respectively. | |||||||||||||
DERIVATIVES | |||||||||||||
During 2013 and 2012, SFC paid SFI $2.7 million and $6.9 million, respectively, of collateral and guarantee fees relating to cash collateral posted by SFI as security for SFC’s Euro swap positions with AIGFP. On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement and AIGFP returned the remaining cash collateral of $40.0 million to SFI. | |||||||||||||
INTERCOMPANY AGREEMENTS | |||||||||||||
On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $19.2 million at December 31, 2014 and $9.4 million at December 31, 2013. | |||||||||||||
Services Agreement | |||||||||||||
SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During 2014 and 2013, SFMC recorded $212.9 million and $141.7 million, respectively, of service fee expenses, which are included in other operating expenses. | |||||||||||||
License Agreement | |||||||||||||
The agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During 2014 and 2013, SFMC recorded $5.4 million and $6.1 million, respectively, of license fees, which are included as a contra expense to other operating expenses. | |||||||||||||
Building Lease | |||||||||||||
The agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $3.7 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During 2014, and 2013, SFMC recorded $3.7 million and $3.8 million, respectively, of rent charged to SGSC, which are included as a contra expense to other operating expenses. | |||||||||||||
Affiliates of Fortress or AIG | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Transactions with Affiliates of Fortress or AIG | Transactions with Affiliates of Fortress or AIG | ||||||||||||
SUBSERVICING AND REFINANCE AGREEMENTS | |||||||||||||
Nationstar subservices the real estate loans of certain direct and indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |||||||||||||
The Owners paid Nationstar fees for its subservicing and to facilitate the repayment of our real estate loans through refinancings with other lenders as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Subservicing fees | $ | 5,312 | $ | 8,544 | $ | 9,843 | |||||||
Refinancing concessions | — | 291 | 4,420 | ||||||||||
As a result of the recent sales of our real estate loans (some of which were serviced by Nationstar) and the MSR Sale, our exposure to these affiliated services is reduced. | |||||||||||||
INVESTMENT MANAGEMENT AGREEMENT | |||||||||||||
Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1.2 million in 2014, $1.0 million in 2013, and $1.1 million in 2012. | |||||||||||||
REINSURANCE AGREEMENTS | |||||||||||||
Merit Life Insurance Co. (“Merit”), our wholly owned subsidiary, enters into reinsurance agreements with subsidiaries of AIG, for reinsurance of various group annuity, credit life, and credit accident and health insurance where Merit reinsures the risk of loss. The reserves for this business fluctuate over time and, in some instances, are subject to recapture by the insurer. Reserves recorded by Merit for reinsurance agreements with subsidiaries of AIG totaled $43.6 million at December 31, 2014 and $45.6 million at December 31, 2013. | |||||||||||||
DERIVATIVES | |||||||||||||
On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement with AIG Financial Products Corp. (“AIGFP”) and recorded a loss of $1.9 million in other revenues — other. The notional amount of this swap agreement totaled $416.6 million at August 5, 2013. Immediately following this termination, we had no derivative financial instruments. As a result of this termination, AIGFP returned the remaining cash collateral of $40.0 million to SFI that SFI had posted as security for SFC’s swap agreement with AIGFP. | |||||||||||||
JOINT VENTURE | |||||||||||||
Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture established in conjunction with the purchase of the SpringCastle Portfolio on April 1, 2013. NRZ is managed by an affiliate of Fortress. | |||||||||||||
THIRD STREET DISPOSITION | |||||||||||||
As discussed in Note 1, on March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to MLPFS for a purchase price of $737.2 million. Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress. | |||||||||||||
MSR SALE | |||||||||||||
As discussed in Note 1, on August 6, 2014, SFC and MorEquity entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $38.8 million. Approximately 50% of the proceeds of the MSR Sale were received on August 29, 2014, the closing date, and 40% were received on October 23, 2014. From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1.4 million. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | |||||||||||||
INSURANCE COVERAGE | |||||||||||||
We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expense on these policies totaled $1.0 million in 2014, $0.9 million in 2013, and $0.8 million in 2012. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates of Fortress or AIG | Related Party Transactions |
AFFILIATE LENDING | |
Note Receivable from Parent | |
SFC’s note receivable from parent is payable in full on May 31, 2022, and SFC may demand payment at any time prior to May 31, 2022; however, SFC does not anticipate the need for additional liquidity during 2015 and does not expect to demand payment from SFI in 2015. The note receivable from parent totaled $251.5 million at December 31, 2014 and $168.0 million at December 31, 2013. Interest receivable on this note totaled $0.4 million at December 31, 2014 and $0.5 million at December 31, 2013. The interest rate for the UPB is the prime rate. Interest revenue on the note receivable from SFI totaled $5.3 million during 2014, $15.1 million during 2013, and $17.3 million during 2012. | |
Receivables from Parent and Affiliates | |
At December 31, 2014 and 2013, receivables from our parent and affiliates totaled $11.6 million and $39.4 million, respectively. SFC had a receivable from Second Street Funding Corporation, a subsidiary of SFI, for income taxes payable under current and prior tax sharing agreements, which totaled $4.0 million and $15.6 million at December 31, 2014 and 2013, respectively. Receivables from parent and affiliates also included interest receivable on SFC’s note receivable from SFI previously discussed in this Note. Receivables from our parent and affiliates at December 31, 2014 are presented net of a $42.7 million payable to SFI. Excluding this payable, receivables from our parent and affiliates totaled $54.3 million at December 31, 2014. | |
Cash Services, Inc. (“CSI”), a subsidiary of SFC, had a receivable related to cash payments due from SpringCastle Holdings, LLC, a subsidiary of SAC, of $16.4 million at December 31, 2013. As a result of the SAC Capital Contribution on July 31, 2014, SpringCastle Holdings, LLC is an indirect subsidiary of SFC. In addition, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had a receivable of $1.0 million at December 31, 2013 from Springleaf Consumer Loan, Inc. (“SCL”), an indirect subsidiary of SFI, due to an overpayment of internet lending referral fees charged to the branch network. | |
Payables to Parent and Affiliates | |
At December 31, 2014 and 2013, payables to parent and affiliates totaled $47.7 million and $38.5 million, respectively. SFC’s payable to parent totaled $16.6 million and $22.0 million at December 31, 2014 and 2013, respectively, primarily due to payments made by SFI for the benefit of SFC. At December 31, 2014 and 2013, SMFC, a subsidiary of SFC, had net payables of $19.2 million and $9.4 million, respectively, to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At December 31, 2014, SMFC also had a payable of $0.5 million to SCL for internet lending referral fees charged to the branch network. | |
SFI provides funding for SAC’s operations through an amended and restated intercompany demand note dated June 7, 2013, not to exceed $2.5 million. The note is payable in full on December 31, 2022, and is prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance is 8.00%. At December 31, 2014, the note payable to SFI totaled $1.2 million and was reported in other liabilities. Interest expense on the note payable to SFI totaled $80 thousand for 2014. | |
Pursuant to an intercompany demand note dated July 26, 2013 between SFC and SFI, SFI could borrow up to $50.0 million from SFC. The note was payable in full on December 14, 2014, and was prepayable in whole or in part at any time without premium or penalty. The annual interest rate for the principal balance was 7.00%. SFI intended to use advances under the note, if any, for general corporate purposes. At December 31, 2013, SFI had not drawn any funds under this note. | |
SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At December 31, 2014, SpringCastle Holdings LLC’s payable to SFI totaled $10.2 million. | |
CSI, a subsidiary of SFC, collects cash payments for all entities. At December 31, 2013, CSI’s payable to SpringCastle Holdings, LLC totaled $6.8 million. | |
CASH COLLATERAL | |
In February 2013, SFI paid $3.1 million, on behalf of Financial Services of South Carolina, Inc. (“SFSSC”), a subsidiary of SFC, towards the payment of unclaimed funds to South Carolina charities in connection with a judgment entered against SFSSC in 2012. In late March 2013, SFSSC fully repaid SFI for the cash collateral. In addition, SFSSC paid SFI $0.6 million of fees under a related fee agreement during the first quarter of 2013. | |
CAPITAL CONTRIBUTIONS | |
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. See Note 1 for further information. | |
During January and July of 2014, 2013, and 2012, SFC received capital contributions from SFI of $10.5 million to satisfy interest payments required by SFC’s debenture due in January and July of 2014, 2013, and 2012, respectively. | |
DERIVATIVES | |
During 2013 and 2012, SFC paid SFI $2.7 million and $6.9 million, respectively, of collateral and guarantee fees relating to cash collateral posted by SFI as security for SFC’s Euro swap positions with AIGFP. On August 5, 2013, we terminated our remaining cross currency interest rate swap agreement and AIGFP returned the remaining cash collateral of $40.0 million to SFI. | |
INTERCOMPANY AGREEMENTS | |
On December 24, 2012, SGSC, a subsidiary of SFI, entered into the following intercompany agreements with SFMC, a subsidiary of SFC, and with certain other subsidiaries of SFI (collectively, the “Recipients”). SFMC’s net payable to SGSC relating to these agreements totaled $19.2 million at December 31, 2014 and $9.4 million at December 31, 2013. | |
Services Agreement | |
SGSC provides the following services to the Recipients: management and administrative services; financial, accounting, treasury, tax, and audit services; facilities support services; capital funding services; legal services; human resources services (including payroll); centralized collections and lending support services; insurance, risk management, and marketing services; and information technology services. The fees payable by each Recipient to SGSC is equal to 100% of the allocated cost of providing the services to such Recipient. SGSC allocates its cost of providing these services among the Recipients and any of the companies to which it provides similar services based on an allocation method defined in the agreement. During 2014 and 2013, SFMC recorded $212.9 million and $141.7 million, respectively, of service fee expenses, which are included in other operating expenses. | |
License Agreement | |
The agreement provides for use by SGSC of SFMC’s information technology systems and software and other related equipment. The monthly license fee payable by SGSC for its use of the information technology systems and software is 100% of the actual costs incurred by SFMC plus a 7.00% margin. The fee payable by SGSC for its use of the related equipment is 100% of the actual costs incurred by SFMC. During 2014 and 2013, SFMC recorded $5.4 million and $6.1 million, respectively, of license fees, which are included as a contra expense to other operating expenses. | |
Building Lease | |
The agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $3.7 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During 2014, and 2013, SFMC recorded $3.7 million and $3.8 million, respectively, of rent charged to SGSC, which are included as a contra expense to other operating expenses. |
Longterm_Debt
Long-term Debt | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Long-term Debt | Long-term Debt | ||||||||||||||||||||
Carrying value and fair value of long-term debt by type were as follows: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
(dollars in thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Senior debt | $ | 8,213,287 | $ | 8,920,140 | $ | 10,469,141 | $ | 11,482,576 | |||||||||||||
Junior subordinated debt | 171,623 | 261,625 | 171,587 | 294,000 | |||||||||||||||||
Total | $ | 8,384,910 | $ | 9,181,765 | $ | 10,640,728 | $ | 11,776,576 | |||||||||||||
Weighted average interest rates on long-term debt by type were as follows: | |||||||||||||||||||||
Years Ended December 31, | At December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||
Senior debt | 7.1 | % | 7.06 | % | 8.24 | % | 7.16 | % | 6.76 | % | |||||||||||
Junior subordinated debt | 12.26 | 12.26 | 12.26 | 12.26 | 12.26 | ||||||||||||||||
Total | 7.19 | 7.14 | 8.29 | 7.26 | 6.84 | ||||||||||||||||
Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at December 31, 2014 were as follows: | |||||||||||||||||||||
(dollars in thousands) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes (a) | Debt | ||||||||||||||||||||
Interest rates (b) | 6.00%-7.50% | 5.25%-8.25% | 1.79%-6.82% | 6 | % | ||||||||||||||||
First quarter 2015 | $ | 16,575 | $ | — | $ | — | $ | — | $ | 16,575 | |||||||||||
Second quarter 2015 | 7,092 | — | — | — | 7,092 | ||||||||||||||||
Third quarter 2015 | 23,544 | — | — | — | 23,544 | ||||||||||||||||
Fourth quarter 2015 | — | 750,000 | — | — | 750,000 | ||||||||||||||||
2015 | 47,211 | 750,000 | — | — | 797,211 | ||||||||||||||||
2016 | — | 375,000 | — | — | 375,000 | ||||||||||||||||
2017 | — | 1,902,321 | — | — | 1,902,321 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019 | — | 700,000 | — | — | 700,000 | ||||||||||||||||
2020-2067 | — | 1,250,000 | — | 350,000 | 1,600,000 | ||||||||||||||||
Securitizations (c) | — | — | 3,646,596 | — | 3,646,596 | ||||||||||||||||
Total principal maturities | $ | 47,211 | $ | 4,977,321 | $ | 3,646,596 | $ | 350,000 | $ | 9,021,128 | |||||||||||
Total carrying amount (d) | $ | 46,469 | $ | 4,522,862 | $ | 3,643,956 | $ | 171,623 | $ | 8,384,910 | |||||||||||
(a) | Medium term notes included $700 million aggregate principal amount of 5.25% Senior Notes due 2019, which were issued in December 2014, and reflects the related repurchases of $459 million aggregate principal amount of medium term notes due 2017 as discussed below under the caption “Repurchase or Repayment of Debt” in this note. | ||||||||||||||||||||
(b) | The interest rates shown are the range of contractual rates in effect at December 31, 2014. | ||||||||||||||||||||
(c) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 12 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(d) | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | ||||||||||||||||||||
GUARANTY AGREEMENTS | |||||||||||||||||||||
On December 3, 2014, SHI entered into an Indenture and First Supplemental Indenture pursuant to which it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on $700 million of 5.25% of Senior Notes due 2019. | |||||||||||||||||||||
On December 30, 2013, SHI entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any), and interest on approximately $5.2 billion aggregate principal amount of senior notes on a senior basis and $350.0 million aggregate principal amount of a junior subordinated debenture (collectively, the “notes”) on a junior subordinated basis issued by SFC. The notes consist of the following: 8.250% Senior Notes due 2023; 7.750% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). As of December 30, 2013, approximately $3.9 billion aggregate principal amount of senior notes were outstanding under the 1999 Indenture. The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, SHI entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2014, approximately $4.3 billion aggregate principal amount of senior notes, including $3.1 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350.0 million aggregate principal amount of a junior subordinated debenture were outstanding. | |||||||||||||||||||||
DEBT COVENANTS | |||||||||||||||||||||
The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. | |||||||||||||||||||||
With the exception of SFC’s junior subordinated debenture and one consumer loan securitization, none of our debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. | |||||||||||||||||||||
Under our debt agreements, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. | |||||||||||||||||||||
As of December 31, 2014, we were in compliance with all of the covenants under our debt agreements. | |||||||||||||||||||||
Junior Subordinated Debenture | |||||||||||||||||||||
In January 2007, SFC issued $350.0 million aggregate principal amount of 60-year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January 2017. | |||||||||||||||||||||
Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (1) tangible equity to tangible managed assets is less than 5.5% or (2) average fixed charge ratio is not more than 1.10x for the trailing four quarters (where the fixed charge ratio equals earnings excluding income taxes, interest expense, extraordinary items, goodwill impairment, and any amounts related to discontinued operations, divided by the sum of interest expense and any preferred dividends). | |||||||||||||||||||||
Based upon SFC’s financial results for the twelve months ended September 30, 2014, a mandatory trigger event did not occur with respect to the payment due in January 2015 as we were in compliance with both required ratios discussed above. | |||||||||||||||||||||
Consumer Loan Securitization | |||||||||||||||||||||
In connection with the Sumner Brook 2013-VFN1 securitization, SFC is required to maintain an available cash covenant and a consolidated tangible net worth covenant. At December 31, 2014, SFC was in compliance with these covenants. | |||||||||||||||||||||
REPURCHASE OR REPAYMENT OF DEBT | |||||||||||||||||||||
In connection with our liability management efforts, we or our affiliates from time to time have purchased, or may in the future purchase, portions of our outstanding indebtedness. Any such purchases may be made through open market or privately negotiated transactions with third parties or pursuant to one or more tender or exchange offers or otherwise, upon such terms and at such prices, as well as with such consideration as we or any such affiliates may determine. Our plans are dynamic and we may adjust our plans in response to changes in our expectations and changes in market conditions. | |||||||||||||||||||||
Medium Term Notes | |||||||||||||||||||||
In December 2014, we used the proceeds from our offering of $700 million aggregate principal amount of 5.25% Senior Notes due 2019 to repurchase $9 million and $361 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017 from certain beneficial owners of the notes. We recorded a net loss of $19.7 million related to the partial extinguishment on this debt repurchase and capitalized $56.6 million related to a partial modification on this debt repurchase. | |||||||||||||||||||||
Additionally, in December 2014, we repurchased $23 million and $66 million aggregate principal amount of 6.50% and 6.90%, respectively, medium term notes due 2017. We recorded a net loss of $17.1 million related to these additional debt repurchases in December 2014. | |||||||||||||||||||||
SpringCastle 2013-A Notes | |||||||||||||||||||||
On October 3, 2014, certain indirect subsidiaries associated with a joint venture in which we own a 47% equity interest (the “Co-Issuers”) used the proceeds from the SpringCastle Funding Asset-backed Notes 2014-A (the “SpringCastle 2014-A Notes”) to repay in full the SpringCastle Funding Asset-backed Notes 2013-A (the “SpringCastle 2013-A Notes”), which were issued by the Co-Issuers on April 1, 2013. See Note 12 for further information on the refinance of SpringCastle 2013-A Notes. We recorded a net loss of $21.2 million related to this refinancing transaction. | |||||||||||||||||||||
Secured Term Loan | |||||||||||||||||||||
On March 31, 2014, Springleaf Financial Funding Company (“SFFC”) prepaid, without penalty or premium, the entire $750 million outstanding principal balance of the secured term loan, plus accrued and unpaid interest. Effective upon the prepayment, all obligations of SFFC, SFC, and the applicable consumer finance operating subsidiaries of SFC under the secured term loan (other than contingent reimbursement obligations and indemnity obligations) were terminated and all guarantees and security interests were released. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Variable Interest Entities | |||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||
As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our consolidated financial statements and are accounted for as secured borrowings. As a result of the sales of the Company’s beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions, we deconsolidated the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. | |||||||||
CONSOLIDATED VIES | |||||||||
We evaluated the securitization trusts and determined that these entities are VIEs of which we are the primary beneficiary. Therefore, we consolidated such entities. We are deemed to be the primary beneficiaries of these VIEs because we have the ability to direct the activities of each VIE that most significantly impact the entity’s economic performance and the obligation to absorb losses and the right to receive benefits that are potentially significant to the VIE. Such ability stems from SFC’s and/or its affiliates’ contractual right to service the securitized finance receivables. Our retained subordinated notes and residual interest trust certificates expose us to potentially significant losses and potentially significant returns. | |||||||||
The remaining asset-backed securities issued by the securitization trusts are supported by the expected cash flows from the underlying securitized finance receivables. Cash inflows from these finance receivables are distributed to investors and service providers in accordance with each transaction’s contractual priority of payments (“waterfall”) and, as such, most of these inflows must be directed first to service and repay each trust’s senior notes or certificates held principally by third-party investors. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each trust. We retain interests in these securitization transactions, including senior and subordinated securities issued by the VIEs and residual interests. We retain credit risk in the securitizations because our retained interests include the most subordinated interest in the securitized assets, which are the first to absorb credit losses on the securitized assets. We expect that any credit losses in the pools of securitized assets will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified securitized assets that subsequently become delinquent or are otherwise in default. | |||||||||
The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: | |||||||||
(dollars in thousands) | |||||||||
December 31, | 2014 | 2013 | |||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 1,852,989 | $ | 1,572,070 | |||||
SpringCastle Portfolio * | 1,979,190 | — | |||||||
Real estate loans | — | 5,595,150 | |||||||
Allowance for finance receivable losses | 71,668 | 153,084 | |||||||
Restricted cash and cash equivalents | 210,337 | 345,906 | |||||||
Liabilities | |||||||||
Long-term debt * | $ | 3,643,956 | $ | 5,160,227 | |||||
* | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||
2014 SECURITIZATION TRANSACTIONS | |||||||||
Consumer Loan Securitizations | |||||||||
2014-A Securitization. On March 26, 2014, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $559.3 million of notes backed by personal loans held by Springleaf Funding Trust 2014-A (the “2014-A Trust”), at a 2.62% weighted average yield. We sold the asset-backed notes for $559.2 million, after the price discount but before expenses and a $6.4 million interest reserve requirement. We initially retained $32.9 million of the 2014-A Trust’s subordinate asset-backed notes. | |||||||||
Whitford Brook 2014-VFN1 Securitization. On June 26, 2014, we established a private securitization facility in which Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC. The notes will be funded over a three-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down to the required minimum balance of $100 million and then redrawn. Following the three-year funding period, the principal amount of the notes will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2018, unless an option to prepay is elected between July 2017 and July 2018. At December 31, 2014, the required minimum balance of $100 million was drawn under the notes. | |||||||||
Repayment of 2013-BAC Trust Notes | |||||||||
On March 27, 2014, we repaid the entire $231.3 million outstanding principal balance of the notes, plus accrued and unpaid interest of Springleaf Funding Trust 2013-BAC (the “2013-BAC Trust”), a wholly owned special purpose vehicle. See “2013 Securitization Transactions—Consumer Loan Securitizations” below for discussion of the initial securitization transaction. | |||||||||
Renewal of Midbrook 2013-VFN1 Securitization | |||||||||
On June 13, 2014, we amended the note purchase agreement with Midbrook Funding Trust 2013-VFN1 (the “Midbrook 2013-VFN1 Trust”) to extend the one-year funding period to a two-year funding period. Following the two-year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in July 2019. The maximum principal balance of variable funding notes that can be issued remained at $300 million. At December 31, 2014, no amounts had been funded. See “2013 Securitization Transactions—Consumer Loan Securitizations” below for discussion of the initial securitization transaction. | |||||||||
Refinance of SpringCastle 2013-A Notes | |||||||||
On October 3, 2014, the Co-Issuers issued $2.62 billion of the SpringCastle 2014-A Notes at a 4.68% weighted average yield in a private placement transaction. The SpringCastle 2014-A Notes are collateralized by the SpringCastle Portfolio in which SFC owns a 47% equity interest as a result of the SAC Capital Contribution on July 31, 2014. | |||||||||
The Co-Issuers sold the SpringCastle 2014-A Notes for approximately $2.55 billion after the price discount but before expenses. The Co-Issuers used the proceeds from the SpringCastle 2014-A Notes to repay in full on October 3, 2014 the SpringCastle 2013-A Notes, which were issued by the Co-Issuers on April 1, 2013. At September 30, 2014, the UPB of the SpringCastle 2013-A Notes was $1.46 billion. | |||||||||
On October 3, 2014, SAC purchased $362.5 million initial principal amount of the SpringCastle 2014-A Notes. The Co-Issuers retained $61.6 million of the SpringCastle 2014-A Notes. Certain subsidiaries of NRZ own a 30% equity interest in the Co-Issuers. NRZ is managed by an affiliate of Fortress. | |||||||||
Sales of Previously Retained Notes | |||||||||
As discussed in Note 1, the Company’s remaining beneficial interests in the mortgage-backed retained certificates related to its previous mortgage securitization transactions were sold in a series of separate transactions during 2014. As a result of these sales, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt, as we no longer were considered the primary beneficiary. | |||||||||
2013 SECURITIZATION TRANSACTIONS | |||||||||
Consumer Loan Securitizations | |||||||||
2013-A Securitization. On February 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $567.9 million of notes backed by personal loans held by Springleaf Funding Trust 2013-A (the “2013-A Trust”), at a 2.83% weighted average yield. We sold the asset-backed notes for $567.5 million, after the price discount but before expenses and a $6.6 million interest reserve requirement. We initially retained $36.4 million of the 2013-A Trust’s subordinate asset-backed notes. | |||||||||
2013-B Securitization. On June 19, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $256.2 million of notes backed by personal loans held by Springleaf Funding Trust 2013-B (the “2013-B Trust”), at a 4.11% weighted average yield. We sold the asset-backed notes for $255.4 million, after the price discount but before expenses and a $4.4 million interest reserve requirement. We initially retained $114.0 million of the 2013-B Trust’s senior asset-backed notes and $29.8 million of the 2013-B Trust’s subordinate asset-backed notes. | |||||||||
2013-BAC Securitization. On September 25, 2013, we completed a private securitization transaction in which 2013-BAC Trust, a wholly owned special purpose vehicle, issued $500.0 million of notes backed by an amortizing pool of personal loans acquired from subsidiaries of SFC. We sold the personal loan-backed notes for gross proceeds of $500.0 million. As previously discussed, we repaid these notes in March 2014. | |||||||||
Midbrook 2013-VFN1 Securitization. On September 26, 2013, we established a private securitization facility in which Midbrook 2013-VFN1 Trust, a wholly owned special purpose vehicle, could issue variable funding notes with a maximum principal balance of $300 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but could be funded from time to time over a one-year period, subject to the satisfaction of customary conditions precedent. During this period, the notes could also be paid down in whole or in part and then redrawn. Following the one-year funding period, the principal amount of the notes, if any, would amortize and would be due and payable in full in October 2017. As previously discussed, we renewed this note purchase agreement in June 2014. | |||||||||
Springleaf 2013-VFN1 Securitization. On September 27, 2013, we established a private securitization facility in which Springleaf Funding Trust 2013-VFN1 (the “Springleaf 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period, which may be extended for one year, subject to the satisfaction of customary conditions precedent. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two-or three-year funding period, as the case may be, the principal amount of the notes, if any, will amortize and will be due and payable in full in October 2019. At December 31, 2014, there were no amounts drawn under the notes. | |||||||||
Sumner Brook 2013-VFN1 Securitization. On December 20, 2013, we established a private securitization facility in which Sumner Brook Funding Trust 2013-VFN1 (the “Sumner Brook 2013-VFN1 Trust”), a wholly owned special purpose vehicle, may issue variable funding notes with a maximum principal balance of $350 million to be backed by personal loans acquired from subsidiaries of SFC from time to time. No amounts were funded at closing, but may be funded from time to time over a two-year period. During this period, the notes can also be paid down in whole or in part and then redrawn. Following the two-year funding period, the principal amount of the notes, if any, will amortize and will be due and payable in full in August 2022. At December 31, 2014, no amounts had been drawn under the notes. | |||||||||
Mortgage Loan Securitizations | |||||||||
2013-1 Securitization. On April 10, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $782.5 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-1 (the “2013-1 Trust”), at a 2.85% weighted average yield. We sold the mortgage-backed notes for $782.4 million, after the price discount but before expenses. We initially retained $236.8 million of the 2013-1 Trust’s subordinate mortgage-backed notes. | |||||||||
2013-2 Securitization. On July 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $599.4 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-2 (the “2013-2 Trust”), at a 2.88% weighted average yield. We sold the mortgage-backed notes for $590.9 million, after the price discount but before expenses. We initially retained $535.1 million of the 2013-2 Trust’s subordinate mortgage-backed notes. | |||||||||
2013-3 Securitization. On October 9, 2013, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $270.5 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2013-3 (the “2013-3 Trust”), at a 3.40% weighted average yield. We sold the mortgage-backed notes for $269.4 million, after the price discount but before expenses. We initially retained $228.7 million of the 2013-3 Trust’s subordinate mortgage-backed notes. | |||||||||
Sales of Previously Retained Notes | |||||||||
During 2013, we sold the following previously retained mortgage-backed and asset-backed notes: | |||||||||
(dollars in thousands) | Principal Amount | Carrying Amount | |||||||
of Previously Retained | of Additional | ||||||||
Notes Issued | Debt Recorded | ||||||||
Mortgage Securitizations | |||||||||
SLFMT 2012-2 | $ | 20,000 | $ | 20,675 | |||||
SLFMT 2012-3 | 7,500 | 7,753 | |||||||
SLFMT 2013-2 | 157,517 | 148,559 | |||||||
SLFMT 2013-3 | 22,517 | 22,623 | |||||||
Consumer Securitizations | |||||||||
SLFMT 2013-B | $ | 114,000 | $ | 111,578 | |||||
2012 SECURITIZATION TRANSACTIONS | |||||||||
Mortgage Loan Securitizations | |||||||||
2012-1 Securitization. On April 20, 2012, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $371.0 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2012-1 (the “2012-1 Trust”), at a 4.38% weighted average yield. We sold the mortgage-backed notes for $367.8 million, after the price discount but before expenses. We initially retained $42.6 million of the 2012-1 Trust’s subordinate mortgage-backed notes. | |||||||||
2012-2 Securitization. On August 8, 2012, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $750.8 million of notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2012-2 (the “2012-2 Trust”), at a 3.59% weighted average yield. We sold the mortgage-backed notes for $749.7 million, after the price discount but before expenses. We initially retained $107.7 million of the 2012-2 Trust’s subordinate mortgage-backed notes. | |||||||||
2012-3 Securitization. On October 25, 2012, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $787.4 million notes backed by real estate loans held by Springleaf Mortgage Loan Trust 2012-3 (the “2012-3 Trust”), at a 2.80% weighted average yield. We sold the mortgage-backed notes for $787.2 million, after the price discount but before expenses. We initially retained $112.3 million of the 2012-3 Trust’s subordinate mortgage-backed notes. | |||||||||
VIE INTEREST EXPENSE | |||||||||
Other than our retained subordinate and residual interests in the remaining consolidated securitization trusts, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $162.9 million in 2014, $146.7 million in 2013, and $111.4 million in 2012. | |||||||||
DECONSOLIDATED VIES | |||||||||
As a result of the sales of the mortgage-backed retained certificates during 2014, we deconsolidated the securitization trusts holding the underlying real estate loans and previously issued securitized interests which were reported in long-term debt. The total carrying value of these real estate loans as of the sale dates was $5.1 billion. We have certain representations and warranties associated with these sales that may expose us to future losses. During 2014, we established a reserve for sales recourse obligations of $6.5 million related to these sales. As of December 31, 2014, we had no repurchase activity associated with these sales. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||||||
During 2014, SFC did not have any derivative activity. | |||||||||||||||||||||
In January 2013, we reclassified $0.2 million of deferred net gain from accumulated other comprehensive income or loss to interest expense related to SFC’s election to discontinue and terminate one of its cash flow hedges in 2012. On August 5, 2013, SFC terminated its remaining cross currency interest rate swap agreement with AIGFP, a subsidiary of AIG, and recorded a loss of $1.9 million in other revenues — other. Immediately following this termination, we had no derivative financial instruments. | |||||||||||||||||||||
Changes in the notional amounts of our cross currency interest rate swap agreements were as follows: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
At or for the Years Ended December 31, | 2013 | 2012 | |||||||||||||||||||
Balance at beginning of period | $ | 416,636 | $ | 1,269,500 | |||||||||||||||||
Expired contracts | — | — | |||||||||||||||||||
Discontinued and terminated contracts | (416,636 | ) | (852,864 | ) | |||||||||||||||||
Balance at end of period | $ | — | $ | 416,636 | |||||||||||||||||
During 2012, we decreased the notional amounts of our Euro cross currency interest rate swap agreements by €676.7 million. We elected to discontinue hedge accounting prospectively on one of our cash flow hedges as of May 2012 and terminated this cross currency interest rate swap agreement in August 2012. We accelerated the reclassification of amounts in accumulated other comprehensive income to other revenues resulting in gains of $0.7 million in 2012. We continued to report the gain related to the discontinued and terminated cash flow hedge in accumulated other comprehensive income or loss. | |||||||||||||||||||||
The amount of gain (loss) for cash flow hedges recognized in accumulated other comprehensive income or loss, reclassified from accumulated other comprehensive income or loss into other revenues — other (effective portion) and interest expense (effective portion), and recognized in other revenues — other (ineffective portion) were as follows: | |||||||||||||||||||||
From AOCI(L) (a) to | Recognized in Other Revenues - Other | ||||||||||||||||||||
(dollars in thousands) | AOCI(L) | Other Revenues - Other | Interest Expense | Earnings (b) | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Cross currency interest rate | $ | — | $ | — | $ | 160 | $ | 160 | $ | — | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Cross currency interest rate | $ | (16,987 | ) | $ | (12,343 | ) | $ | 1,839 | $ | (10,504 | ) | $ | (426 | ) | |||||||
(a) | Accumulated other comprehensive income (loss). | ||||||||||||||||||||
(b) | Represents the total amounts reclassified from accumulated other comprehensive income or loss to other revenues — other and to interest expense for cash flow hedges as disclosed on our consolidated statement of comprehensive income (loss). | ||||||||||||||||||||
During 2013 and 2012, we recognized net losses of $3.4 million and $33.8 million, respectively, on SFC’s non-designated hedging instruments in other revenues — other. | |||||||||||||||||||||
Derivative adjustments included in other revenues — other consisted of the following: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2013 | 2012 | |||||||||||||||||||
Mark to market losses | $ | (8,244 | ) | $ | (28,659 | ) | |||||||||||||||
Net interest income | 9,161 | 18,745 | |||||||||||||||||||
Credit valuation adjustment gains (losses) | 50 | (3,559 | ) | ||||||||||||||||||
Ineffectiveness losses | — | (426 | ) | ||||||||||||||||||
Other | (292 | ) | 2,136 | ||||||||||||||||||
Total | $ | 675 | $ | (11,763 | ) | ||||||||||||||||
SFC was exposed to credit risk if counterparties to its swap agreement did not perform. SFC regularly monitored counterparty credit ratings throughout the term of the agreement. SFC’s exposure to market risk was limited to changes in the value of its swap agreement offset by changes in the value of the hedged debt. While SFC’s cross currency interest rate swap agreement mitigated economic exposure of related debt, it did not qualify as a cash flow or fair value hedge under U.S. GAAP. |
Insurance
Insurance | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Insurance | Insurance | ||||||||||||
Components of insurance claims and policyholder liabilities were as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Finance receivable related: | |||||||||||||
Unearned premium reserves | $ | 193,710 | $ | 151,987 | |||||||||
Benefit reserves | 107,339 | 94,954 | |||||||||||
Claim reserves | 28,299 | 25,325 | |||||||||||
Subtotal | 329,348 | 272,266 | |||||||||||
Non-finance receivable related: | |||||||||||||
Benefit reserves | 74,639 | 79,352 | |||||||||||
Claim reserves | 41,566 | 42,550 | |||||||||||
Subtotal | 116,205 | 121,902 | |||||||||||
Total | $ | 445,553 | $ | 394,168 | |||||||||
Our insurance subsidiaries enter into reinsurance agreements with other insurers (including subsidiaries of AIG). Insurance claims and policyholder liabilities included the following amounts assumed from other insurers: | |||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Non-affiliated insurance companies | $ | 14,853 | $ | 16,198 | |||||||||
Affiliated insurance companies | 43,587 | 45,619 | |||||||||||
Total | $ | 58,440 | $ | 61,817 | |||||||||
At December 31, 2014 and 2013, reserves related to insurance claims and policyholder liabilities ceded to nonaffiliated insurance companies totaled $22.0 million and $21.7 million, respectively. | |||||||||||||
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable: | |||||||||||||
(dollars in thousands) | |||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 46,220 | $ | 51,037 | $ | 47,369 | |||||||
Additions for losses and loss adjustment expenses incurred to: | |||||||||||||
Current year | 64,529 | 58,895 | 59,883 | ||||||||||
Prior years * | (2,541 | ) | (6,028 | ) | (2,193 | ) | |||||||
Total | 61,988 | 52,867 | 57,690 | ||||||||||
Reductions for losses and loss adjustment expenses paid related to: | |||||||||||||
Current year | (39,359 | ) | (34,591 | ) | (33,956 | ) | |||||||
Prior years | (20,949 | ) | (23,093 | ) | (20,066 | ) | |||||||
Total | (60,308 | ) | (57,684 | ) | (54,022 | ) | |||||||
Balance at end of period | $ | 47,900 | $ | 46,220 | $ | 51,037 | |||||||
* | Reflects a redundancy in the prior years’ net reserves of $2.5 million at December 31, 2014, $6.0 million at December 31, 2013, and $2.2 million at December 31, 2012 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. | ||||||||||||
Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana Department of Insurance, which is a comprehensive basis of accounting other than U.S. GAAP. The primary differences between statutory accounting practices and U.S. GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using more conservative actuarial assumptions, and certain investment securities are reported at amortized cost. We report our statutory financial information on a historical accounting basis. We are not required and did not apply push-down accounting to the insurance subsidiaries on a statutory basis. | |||||||||||||
Statutory net income for our insurance companies by type of insurance was as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Property and casualty | $ | 15,803 | $ | 40,616 | $ | 18,493 | |||||||
Life and accident and health | (2,411 | ) | 3,285 | 10,131 | |||||||||
Statutory capital and surplus for our insurance companies by type of insurance were as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Property and casualty | $ | 107,696 | $ | 153,710 | |||||||||
Life and accident and health | 171,383 | 184,465 | |||||||||||
Our insurance companies are also subject to risk-based capital requirements adopted by the Indiana Department of Insurance. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2014 and 2013, our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. | |||||||||||||
State law restricts the amounts our insurance subsidiaries, Merit and Yosemite Insurance Company (“Yosemite”), may pay as dividends without prior notice to, or in some cases approval from, the Indiana Department of Insurance. The maximum amount of dividends that can be paid without prior approval in a 12 month period, measured retrospectively from the date of payment, is the greater of 10% of policyholders’ surplus as of the prior year-end, or the net gain from operations as of the prior year-end. On October 20, 2014, Merit paid an ordinary dividend of $18.0 million to SFC that did not require prior approval, and Yosemite paid an extraordinary dividend of $57.0 million to SFC upon receiving prior approval. Our insurance subsidiaries paid $150.0 million of extraordinary dividends during each of the third quarter of 2013 and the second quarter of 2012 upon receiving prior approval. Effective July 31, 2013, Yosemite paid, as an extraordinary dividend to SFC, 100% of the common stock of its wholly owned subsidiary, CommoLoCo, Inc., in the amount of $57.8 million, upon receiving prior approval. |
Other_Liabilities
Other Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other Liabilities | Other Liabilities | ||||||||
Components of other liabilities were as follows: | |||||||||
(dollars in thousands) | |||||||||
December 31, | 2014 | 2013 | |||||||
Accrued interest on debt | $ | 57,343 | $ | 71,034 | |||||
Retirement plans | 49,916 | 14,836 | |||||||
Payables to parent and affiliates * | 47,680 | 38,463 | |||||||
Other accrued expenses and accounts payable | 26,245 | 11,395 | |||||||
Loan principal warranty reserve | 24,005 | 4,702 | |||||||
United Kingdom subsidiary reserves | 14,271 | 34,475 | |||||||
Salary and benefit liabilities | 11,163 | 18,718 | |||||||
Bank overdrafts | 5,344 | 7,748 | |||||||
Other insurance liabilities | 4,357 | 3,911 | |||||||
Other | 15,222 | 18,184 | |||||||
Total | $ | 255,546 | $ | 223,466 | |||||
* | See Note 10 for further information on payables to parent and affiliates. |
Capital_Stock
Capital Stock | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Capital Stock | Capital Stock | ||||||||||||
SFC has two classes of authorized capital stock: special stock and common stock. SFC may issue special stock in series. The board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance. | |||||||||||||
Par value and shares authorized at December 31, 2014 were as follows: | |||||||||||||
Special Stock | Common Stock | ||||||||||||
Par value | $ | — | $ | 0.5 | |||||||||
Shares authorized | 25,000,000 | 25,000,000 | |||||||||||
Shares issued and outstanding were as follows: | |||||||||||||
Special Stock | Common Stock | ||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||
Shares issued and outstanding | — | — | 10,160,020 | 10,160,018 | |||||||||
On each of January 11, 2013, July 10, 2013, January 10, 2014 and July 10, 2014, SFC received capital contributions from SFI of $10.5 million to satisfy interest payments required by SFC’s debenture due in January 2013, July 2013, January 2014, and July 2014, respectively. | |||||||||||||
On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. See Note 1 for further information. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income | ||||||||||||||||||||
Changes in accumulated other comprehensive income (loss) were as follows: | |||||||||||||||||||||
(dollars in thousands) | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Cash Flow Hedges | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Other comprehensive income (loss) before reclassifications | 12,495 | — | (33,094 | ) | 800 | (19,799 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (5,080 | ) | — | — | — | (5,080 | ) | ||||||||||||||
Balance at end of period | $ | 11,777 | $ | — | $ | (12,941 | ) | $ | 4,380 | $ | 3,216 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Other comprehensive income (loss) before reclassifications | (7,787 | ) | — | 12,033 | (547 | ) | 3,699 | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,396 | ) | (104 | ) | — | — | (1,500 | ) | |||||||||||||
Balance at end of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | 3,678 | $ | 4,318 | $ | (35,221 | ) | $ | 152 | $ | (27,073 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 7,684 | (11,042 | ) | 43,341 | 3,975 | 43,958 | |||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 2,183 | 6,828 | — | — | 9,011 | ||||||||||||||||
Balance at end of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our consolidated statements of operations were as follows: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $ | 7,815 | $ | 2,148 | $ | (3,359 | ) | ||||||||||||||
Income tax effect | (2,735 | ) | (752 | ) | 1,176 | ||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, net of taxes | 5,080 | 1,396 | (2,183 | ) | |||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, before taxes | — | 160 | 1,839 | ||||||||||||||||||
Reclassification from accumulated other comprehensive income to other revenues, before taxes | — | — | (12,343 | ) | |||||||||||||||||
Income tax effect | — | (56 | ) | 3,676 | |||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense and other revenues, net of taxes | — | 104 | (6,828 | ) | |||||||||||||||||
Total | $ | 5,080 | $ | 1,500 | $ | (9,011 | ) | ||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
SHI and all of its eligible domestic U.S. subsidiaries, including SFC, file a consolidated nonlife federal tax return with the Internal Revenue Service. Merit Life Insurance Co. is not an eligible company and therefore, it files a separate stand-alone federal life insurance tax return. Federal income taxes from the nonlife federal tax return are allocated to these eligible subsidiaries under a tax sharing agreement with SHI. Our foreign subsidiaries file tax returns in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. In connection with the initial public offering of common stock of SHI, AGF Holding Inc. was reorganized under Internal Revenue Code 368 (F-reorganization), and SHI became its successor in October 2013. | |||||||||||||
The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2014, the company had no remaining undistributed earnings. | |||||||||||||
Components of provision for (benefit from) income taxes were as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Current | $ | 228,158 | $ | 61,713 | $ | 72,399 | |||||||
Deferred | 16,692 | (107,124 | ) | (156,980 | ) | ||||||||
Total federal | 244,850 | (45,411 | ) | (84,581 | ) | ||||||||
Foreign: | |||||||||||||
Current | 370 | 634 | 2,604 | ||||||||||
Deferred | 3,746 | (1,418 | ) | (15,777 | ) | ||||||||
Deferred - valuation allowance | (3,772 | ) | 2,346 | 15,655 | |||||||||
Total foreign | 344 | 1,562 | 2,482 | ||||||||||
State: | |||||||||||||
Current | 17,498 | 2,481 | 8,294 | ||||||||||
Deferred | (2,533 | ) | (19,240 | ) | (22,656 | ) | |||||||
Deferred - valuation allowance | 3,206 | 7,331 | 8,144 | ||||||||||
Total state | 18,171 | (9,428 | ) | (6,218 | ) | ||||||||
Total | $ | 263,365 | $ | (53,277 | ) | $ | (88,317 | ) | |||||
Expense from foreign income taxes includes our foreign subsidiaries that operate in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. | |||||||||||||
We recorded a current state income tax provision in 2014, 2013, and 2012 attributable to profitable operations in certain states in which we do business that could not be offset against losses incurred. We recorded a valuation allowance against the majority of our gross state deferred tax assets including all gross state deferred tax assets related to net operating losses. | |||||||||||||
Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Non-controlling interests | (2.06 | ) | — | — | |||||||||
State income taxes, net of federal | 1.57 | 4.39 | 1.32 | ||||||||||
Foreign operations | 0.95 | (0.95 | ) | (3.25 | ) | ||||||||
Valuation allowance | (0.50 | ) | (1.73 | ) | (5.09 | ) | |||||||
Nontaxable investment income | (0.12 | ) | 1.11 | 0.89 | |||||||||
Interest and penalties on prior year tax returns | (0.12 | ) | (4.38 | ) | (0.33 | ) | |||||||
Change in tax status | — | 8.35 | — | ||||||||||
Nondeductible compensation | — | (1.99 | ) | — | |||||||||
Other, net | 0.13 | (0.60 | ) | 0.19 | |||||||||
Effective income tax rate | 34.85 | % | 39.2 | % | 28.73 | % | |||||||
The effective tax rate for 2014 was 34.8% compared to 39.2% for 2013. The effective tax rate for 2014 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in our joint venture, which decreased the effective tax rate by 2.1%, partially offset by the effect of our state income taxes, which increased the effective tax rate by 1.6%. The effective tax rate for 2013 differed from the federal statutory rate primarily due to the effects of a change in tax status and interest and penalties on prior year tax returns. We recognize interest and penalties in income tax expense. The effective income tax rate for 2012 differed from the federal statutory tax rate primarily due to the impact of recording a full valuation allowance on the deferred tax assets related to our foreign operations and a partial valuation allowance on the deferred tax assets related to our state operations. | |||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,887 | $ | 1,580 | $ | — | |||||||
Increases in tax positions for prior years | 2,470 | 307 | 1,091 | ||||||||||
Decreases in tax positions for prior years | — | — | — | ||||||||||
Increases in tax positions for current years | — | — | 489 | ||||||||||
Decreases in tax positions for current years | — | — | — | ||||||||||
Lapse in statute of limitations | (595 | ) | — | — | |||||||||
Settlements | — | — | — | ||||||||||
Balance at end of year | $ | 3,762 | $ | 1,887 | $ | 1,580 | |||||||
Our gross unrecognized tax obligation includes interest and penalties. We recognize interest and penalties related to gross unrecognized tax obligations in income tax expense. We accrued $1.2 million in 2014, $0.2 million in 2013, and $0.2 million in 2012 for the payment of respective tax obligation, interest and penalty, net of any federal benefit. The amount of any change in the balance of uncertain tax liabilities over the next twelve months cannot be ascertained. | |||||||||||||
Components of deferred tax assets and liabilities were as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Mark to market - receivables | $ | 32,565 | $ | 48,770 | |||||||||
State taxes, net of federal | 21,324 | 20,106 | |||||||||||
Pension/employee benefits | 19,583 | 8,155 | |||||||||||
Net operating losses and tax attributes | 18,915 | 26,201 | |||||||||||
Joint venture | 12,274 | — | |||||||||||
Legal and warranty reserve | 9,467 | 1,216 | |||||||||||
Payment protection insurance liability | 4,929 | 11,353 | |||||||||||
Deferred insurance commissions | 3,473 | 2,781 | |||||||||||
Real estate owned | 2,738 | 3,058 | |||||||||||
Securitization | — | 68,183 | |||||||||||
Market discount - investments | — | 14,134 | |||||||||||
Insurance reserves | — | 3,711 | |||||||||||
Other | 2,154 | 2,327 | |||||||||||
Total | 127,422 | 209,995 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Debt writedown | 194,261 | 268,988 | |||||||||||
Discount - debt exchange | 22,377 | 14,390 | |||||||||||
Insurance reserves | 10,175 | — | |||||||||||
Other intangible assets | 6,859 | 8,443 | |||||||||||
Market discount - investments | 3,292 | — | |||||||||||
Fixed assets | 1,851 | 2,050 | |||||||||||
Derivative | — | 1,899 | |||||||||||
Other | — | 10,929 | |||||||||||
Total | 238,815 | 306,699 | |||||||||||
Net deferred tax liabilities before valuation allowance | (111,393 | ) | (96,704 | ) | |||||||||
Valuation allowance | (44,383 | ) | (45,220 | ) | |||||||||
Net deferred tax liabilities | $ | (155,776 | ) | $ | (141,924 | ) | |||||||
At December 31, 2014, we had a net deferred tax liability of $155.8 million. The gross deferred tax liabilities are expected to reverse in timing and amount sufficient to create positive taxable income which will allow for the realization of all of our gross federal deferred tax assets. Included in our gross deferred tax assets is the benefit of foreign net operating loss carryforwards of $15.5 million from our United Kingdom operations and $1.9 million from our Puerto Rico operations. At December 31, 2014, we had a valuation allowance on our gross state deferred tax assets of $25.9 million, net of a deferred federal tax benefit. The amount of our state deferred tax assets in the table above is shown net of gross state deferred tax liabilities and therefore differs from the amount of our gross deferred tax assets on which we have recorded a valuation allowance. At December 31, 2014, we also had a $18.5 million valuation allowance against our United Kingdom and Puerto Rico operations. | |||||||||||||
At December 31, 2013, we had a net deferred tax liability of $141.9 million. The gross deferred tax liabilities are expected to reverse in timing and amount sufficient to create positive taxable income which will allow for the realization of all of our gross federal deferred tax assets. Included in our gross deferred tax assets is the benefit of foreign net operating loss carryforwards of $20.3 million from our United Kingdom operations and $1.1 million from our Puerto Rico operations and a foreign tax credit benefit from our Puerto Rico operations of $3.3 million. At December 31, 2013, we had a valuation allowance on our gross state deferred tax assets of $23.8 million, net of a deferred federal tax benefit. The amount of our state deferred tax assets in the table above is shown net of gross state deferred tax liabilities and therefore differs from the amount of our gross deferred tax assets on which we have recorded a valuation allowance. At December 31, 2013, we also had a $21.4 million valuation allowance against our United Kingdom and Puerto Rico operations. | |||||||||||||
At December 31, 2014, we had $99.8 million of net current federal and foreign income tax receivable, compared to $20.8 million at December 31, 2013. At December 31, 2014, we had $4.9 million of current state tax receivable, compared to $7.7 million of current state tax receivable at December 31, 2013. At December 31, 2014, we had state net operating loss carryforwards of $499.7 million, compared to $348.4 million at December 31, 2013. The state net operating loss carryforwards expire between 2016 and 2035. The United Kingdom net operating loss does not have a statute of limitations. We have a full valuation allowance against it as we do not believe we will have income to offset against it. At December 31, 2014, we had deferred and accrued taxes consisting of $3.6 million of non-income based taxes, compared to $3.6 million at December 31, 2013. |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Restructuring | Restructuring | ||||||||||||||||||||
As part of a strategic effort to streamline operations and reduce expenses, we initiated the following restructuring activities during the first half of 2012: | |||||||||||||||||||||
• | ceased originating real estate loans in the United States and the United Kingdom; | ||||||||||||||||||||
• | ceased branch-based personal lending and retail sales financing in 14 states where we did not have a significant presence; | ||||||||||||||||||||
• | consolidated certain branch operations in 26 states; and | ||||||||||||||||||||
• | closed 231 branch offices. | ||||||||||||||||||||
As a result of these initiatives, during the first half of 2012 we reduced our workforce at our branch offices, at our Evansville, Indiana, headquarters, and in the United Kingdom by 820 employees and incurred a pretax charge of $23.5 million. | |||||||||||||||||||||
Restructuring expenses and related asset impairment and other expenses by segment were as follows: | |||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Consolidated Total | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Restructuring expenses | $ | 15,863 | $ | 818 | $ | 6,822 | $ | 23,503 | |||||||||||||
Changes in the restructuring liability were as follows: | |||||||||||||||||||||
(dollars in thousands) | Severance Expenses | Contract | Asset Writedowns | Other Exit Expenses * | Total | ||||||||||||||||
Termination Expenses | Restructuring Expenses | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 40 | $ | — | $ | — | $ | 40 | |||||||||||
Amounts paid | — | (40 | ) | — | — | (40 | ) | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 56 | $ | 365 | $ | — | $ | — | $ | 421 | |||||||||||
Amounts paid | (56 | ) | (325 | ) | — | — | (381 | ) | |||||||||||||
Balance at end of period | $ | — | $ | 40 | $ | — | $ | — | $ | 40 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Amounts charged to expense | 11,600 | 5,840 | 5,246 | 817 | 23,503 | ||||||||||||||||
Amounts paid | (11,544 | ) | (5,475 | ) | — | (1,017 | ) | (18,036 | ) | ||||||||||||
Non-cash expenses | — | — | (5,246 | ) | 200 | (5,046 | ) | ||||||||||||||
Balance at end of period | $ | 56 | $ | 365 | $ | — | $ | — | $ | 421 | |||||||||||
* | Primarily includes removal expenses for branch furniture and signs and fees for outplacement services. Also includes the impairment of the market value adjustment on leased branch offices from the Fortress Acquisition. | ||||||||||||||||||||
As discussed in Note 1, we recorded restructuring expenses of $3.8 million in 2014 due to the workforce reductions and the closings of the servicing facilities in conjunction with the real estate loan sales during 2014. We do not anticipate any additional future restructuring expenses to be incurred that can be reasonably estimated at December 31, 2014. |
Lease_Commitments_Rent_Expense
Lease Commitments, Rent Expense, and Contingent Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Lease Commitments, Rent Expense, and Contingent Liabilities | Lease Commitments, Rent Expense, and Contingent Liabilities | ||||||||||||
LEASE COMMITMENTS AND RENT EXPENSE | |||||||||||||
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition, were as follows: | |||||||||||||
(dollars in thousands) | Lease Commitments | ||||||||||||
First quarter 2015 | $ | 6,863 | |||||||||||
Second quarter 2015 | 6,695 | ||||||||||||
Third quarter 2015 | 6,405 | ||||||||||||
Fourth quarter 2015 | 6,131 | ||||||||||||
2015 | 26,094 | ||||||||||||
2016 | 20,982 | ||||||||||||
2017 | 15,128 | ||||||||||||
2018 | 9,809 | ||||||||||||
2019 | 4,957 | ||||||||||||
2020+ | 2,809 | ||||||||||||
Total | $ | 79,779 | |||||||||||
In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $28.6 million in 2014, $30.0 million in 2013, and $36.3 million in 2012. | |||||||||||||
LEGAL CONTINGENCIES | |||||||||||||
In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with its activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to identify certain legal actions where we believe a material loss to be reasonably possible and reasonably estimable, there can be no assurance that material losses will not be incurred from claims that we have not yet been notified of or are not yet determined to be probable or reasonably possible and reasonably estimable. | |||||||||||||
We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. | |||||||||||||
For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. | |||||||||||||
For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. | |||||||||||||
SALES RECOURSE OBLIGATIONS | |||||||||||||
During 2014, we established a reserve for sales recourse obligations of $22.4 million related to the sales of real estate loans with a total carrying value of $6.3 billion. As of December 31, 2014, we had no repurchase activity or recourse losses associated with these sales. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. | |||||||||||||
During 2014, we repurchased 9 loans that were previously sold to HSBC for $1.5 million compared to 20 loans repurchased for $2.9 million during 2013, and 20 loans repurchased for $2.8 million during 2012. In each period, we repurchased the loans that were previously sold to HSBC because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At December 31, 2014, there were no unresolved recourse requests. | |||||||||||||
The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and the loans that were previously sold to HSBC was as follows: | |||||||||||||
(dollars in thousands) | |||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 4,702 | $ | 4,863 | $ | 1,648 | |||||||
Provision for recourse obligations, net of recoveries | 19,592 | 322 | 3,269 | ||||||||||
Recourse losses | (211 | ) | (483 | ) | (54 | ) | |||||||
Balance at end of period | $ | 24,083 | $ | 4,702 | $ | 4,863 | |||||||
It is inherently difficult to determine whether any recourse losses are probable or even reasonably possible or to estimate the amounts of any losses. In addition, even where recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses. | |||||||||||||
PAYMENT PROTECTION INSURANCE | |||||||||||||
Our United Kingdom subsidiary provides payments of compensation to its customers who have made claims concerning Payment Protection Insurance (“PPI”) policies sold in the normal course of business by insurance intermediaries. On April 20, 2011, the High Court in the United Kingdom handed down judgment supporting the Financial Services Authority (now known as the Financial Conduct Authority) (“FCA”) guidelines on the treatment of PPI complaints. In addition, the FCA issued a guidance consultation paper in March 2012 on the PPI customer contact letters. As a result, we have concluded that there are certain circumstances where customer contact and/or redress is appropriate; therefore, this activity is ongoing. The total reserves related to the estimated PPI claims were $14.1 million at December 31, 2014 and $33.5 million at December 31, 2013. |
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Benefit Plans | Benefit Plans | ||||||||||||||||||||||||
On January 1, 2011, we established the Springleaf Financial Services Retirement Plan (the “Retirement Plan”) and a 401(k) plan in which most of our employees were eligible to participate. The Retirement Plan was based on substantially the same terms as the AIG retirement plan it replaced. Our employees in Puerto Rico participated in a defined benefit pension plan sponsored by CommoLoCo, Inc., our Puerto Rican subsidiary (the “CommoLoCo Retirement Plan”). Effective December 31, 2012, the Retirement Plan and the CommoLoCo Retirement Plan were frozen. Our current and former employees will not lose any vested benefits in the Retirement Plan or the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. | |||||||||||||||||||||||||
In addition, we sponsor unfunded defined benefit plans for certain employees and provide postretirement health and welfare and life insurance plans. | |||||||||||||||||||||||||
PENSION PLANS | |||||||||||||||||||||||||
We offer various defined benefit plans to eligible employees based on completion of a specified period of continuous service, subject to age limitations. | |||||||||||||||||||||||||
Retirement Plan | |||||||||||||||||||||||||
Our Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). U.S. salaried employees who were employed by a participating company, had attained age 21, and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. | |||||||||||||||||||||||||
CommoLoCo Retirement Plan | |||||||||||||||||||||||||
The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Puerto Rican residents employed by CommoLoCo, Inc. who had attained age 21 and completed one year of service were eligible to participate in the plan. | |||||||||||||||||||||||||
Unfunded Defined Benefit Plans | |||||||||||||||||||||||||
We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (1) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (2) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. | |||||||||||||||||||||||||
POSTRETIREMENT PLANS | |||||||||||||||||||||||||
Springleaf Retiree Medical and Life Insurance Plan | |||||||||||||||||||||||||
We provided postretirement medical care and life insurance benefits. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Life and dental benefits were closed to new participants. Postretirement medical and life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Medical benefits were contributory, while the life insurance benefits were non-contributory. Retiree medical contributions were based on the actual premium payments reduced by Company-provided credits. These retiree contributions were subject to adjustment annually. Other cost sharing features of the medical plan included deductibles, coinsurance, and Medicare coordination. On December 31, 2014, we terminated the Springleaf Retiree Medical and Life Insurance Plan, and we recorded a settlement gain and a curtailment gain of $4.1 million and $2.1 million, respectively, as a credit to salaries and benefit expenses. | |||||||||||||||||||||||||
CommoLoCo Retiree Life Insurance Plan | |||||||||||||||||||||||||
We provided postretirement life insurance benefits to eligible participants of CommoLoCo, Inc. Eligibility was based upon completion of 10 years of credited service and attainment of age 55. Postretirement life insurance benefits were based upon the employee electing immediate retirement and having a minimum of 10 years of service. Life insurance benefits were non-contributory. On February 28, 2015, the Retiree Group Life Insurance program was terminated. | |||||||||||||||||||||||||
401(K) PLANS | |||||||||||||||||||||||||
We sponsor voluntary savings plans for our U.S. employees and for our employees of CommoLoCo, Inc. | |||||||||||||||||||||||||
Springleaf Financial Services 401(k) Plan | |||||||||||||||||||||||||
The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2014 and 2013 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. For 2012, the 401(k) Plan provided for a tiered Company matching on the first 6% of the salary reduction contributions of the employees depending on the employees’ years of service (10% Company matching for 0-4 years of service, 20% Company matching for 5-9 years of service, and 30% Company matching for 10 or more years of service). We do not anticipate any changes to the Company’s matching contributions for 2015. | |||||||||||||||||||||||||
Effective January 1, 2013, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same. | |||||||||||||||||||||||||
The salaries and benefit expense associated with this plan was $4.2 million in 2014, $3.9 million in 2013, and $1.9 million in 2012. | |||||||||||||||||||||||||
CommoLoCo Thrift Plan | |||||||||||||||||||||||||
The CommoLoCo Thrift Plan provides for salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. The salaries and benefit expense associated with this plan for 2014, 2013, and 2012 was immaterial. We do not anticipate any changes to the Company’s matching contributions for 2015. | |||||||||||||||||||||||||
OBLIGATIONS AND FUNDED STATUS | |||||||||||||||||||||||||
The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. | |||||||||||||||||||||||||
(dollars in thousands) | Pension (a) | Postretirement (b) | |||||||||||||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Projected benefit obligation, beginning of period | $ | 322,465 | $ | 367,591 | $ | 435,221 | $ | 2,291 | $ | 6,687 | $ | 6,725 | |||||||||||||
Service cost | — | — | 14,968 | 82 | 289 | 285 | |||||||||||||||||||
Interest cost | 15,240 | 14,083 | 18,342 | 92 | 224 | 262 | |||||||||||||||||||
Actuarial loss (gain) (c) | 82,952 | (46,806 | ) | 25,809 | 256 | (4,767 | ) | 166 | |||||||||||||||||
Benefits paid: | |||||||||||||||||||||||||
Company assets | — | — | — | (162 | ) | (142 | ) | (172 | ) | ||||||||||||||||
Plan assets | (11,894 | ) | (12,403 | ) | (10,376 | ) | — | — | — | ||||||||||||||||
Curtailment | (34 | ) | — | (78,558 | ) | (2,076 | ) | — | (579 | ) | |||||||||||||||
Settlement | — | — | (37,815 | ) | (483 | ) | — | — | |||||||||||||||||
Liability recognized at end of year | — | — | — | 385 | — | — | |||||||||||||||||||
Projected benefit obligation, end of period | 408,729 | 322,465 | 367,591 | 385 | 2,291 | 6,687 | |||||||||||||||||||
Fair value of plan assets, beginning of period | 316,660 | 346,824 | 350,374 | — | — | — | |||||||||||||||||||
Actual return on plan assets, net of expenses | 53,789 | (18,405 | ) | 43,579 | — | — | — | ||||||||||||||||||
Company contributions | 643 | 643 | 1,062 | 162 | 142 | 172 | |||||||||||||||||||
Benefits paid: | |||||||||||||||||||||||||
Company assets | — | — | — | (162 | ) | (142 | ) | (172 | ) | ||||||||||||||||
Plan assets | (11,894 | ) | (12,402 | ) | (48,191 | ) | — | — | — | ||||||||||||||||
Fair value of plan assets, end of period | 359,198 | 316,660 | 346,824 | — | — | — | |||||||||||||||||||
Funded status, end of period | $ | (49,531 | ) | $ | (5,805 | ) | $ | (20,767 | ) | $ | (385 | ) | $ | (2,291 | ) | $ | (6,687 | ) | |||||||
Net amounts recognized in the consolidated balance sheet: | |||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 6,740 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Current liabilities | (653 | ) | (645 | ) | (619 | ) | (23 | ) | (101 | ) | (178 | ) | |||||||||||||
Noncurrent liabilities | (48,878 | ) | (11,900 | ) | (20,148 | ) | (362 | ) | (2,190 | ) | (6,509 | ) | |||||||||||||
Total amounts recognized | $ | (49,531 | ) | $ | (5,805 | ) | $ | (20,767 | ) | $ | (385 | ) | $ | (2,291 | ) | $ | (6,687 | ) | |||||||
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||||||||||||||||||||||||
Net gain (loss) | $ | (19,288 | ) | $ | 26,267 | $ | 13,303 | $ | — | $ | 4,185 | $ | (582 | ) | |||||||||||
Prior service credit (cost) | — | — | — | — | — | — | |||||||||||||||||||
Total amounts recognized | $ | (19,288 | ) | $ | 26,267 | $ | 13,303 | $ | — | $ | 4,185 | $ | (582 | ) | |||||||||||
(a) | Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10.5 million at December 31, 2014 and $9.2 million at December 31, 2013. | ||||||||||||||||||||||||
(b) | We do not currently fund postretirement benefits. | ||||||||||||||||||||||||
(c) | We adopted new mortality tables in 2014, which increased the plan liabilities during 2014. | ||||||||||||||||||||||||
The accumulated benefit obligation for U.S. pension benefit plans was $408.7 million at December 31, 2014 and $322.5 million at December 31, 2013. | |||||||||||||||||||||||||
Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: | |||||||||||||||||||||||||
(dollars in thousands) | PBO Exceeds | ABO Exceeds | |||||||||||||||||||||||
Fair Value of Plan Assets | Fair Value of Plan Assets | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Projected benefit obligation | $ | 408,729 | $ | 322,465 | $ | — | $ | 322,465 | |||||||||||||||||
Accumulated benefit obligation | 408,729 | 322,465 | 385 | 322,465 | |||||||||||||||||||||
Fair value of plan assets | 359,198 | 316,660 | — | 316,660 | |||||||||||||||||||||
The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: | |||||||||||||||||||||||||
(dollars in thousands) | Pension | Postretirement | |||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 14,968 | $ | 82 | $ | 289 | $ | 285 | |||||||||||||
Interest cost | 15,240 | 14,083 | 18,342 | 92 | 224 | 262 | |||||||||||||||||||
Expected return on assets | (16,433 | ) | (15,498 | ) | (20,912 | ) | — | — | — | ||||||||||||||||
Actuarial loss (gain) | 6 | 61 | 285 | (302 | ) | — | — | ||||||||||||||||||
Curtailment gain | — | — | (7,115 | ) | (2,076 | ) | — | (579 | ) | ||||||||||||||||
Settlement loss (gain) | — | — | (1,401 | ) | (4,110 | ) | — | — | |||||||||||||||||
Expense to recognize liability | — | — | — | 385 | — | — | |||||||||||||||||||
Net periodic benefit cost | (1,187 | ) | (1,354 | ) | 4,167 | (5,929 | ) | 513 | (32 | ) | |||||||||||||||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||||||||||||||||||||||||
Net actuarial loss (gain) | 45,595 | (12,903 | ) | 3,142 | 256 | (4,767 | ) | 166 | |||||||||||||||||
Amortization of net actuarial gain (loss) | (6 | ) | (61 | ) | (285 | ) | 302 | — | — | ||||||||||||||||
Net curtailment loss | (34 | ) | — | (71,443 | ) | — | — | — | |||||||||||||||||
Net settlement gain (loss) | — | — | 1,401 | 3,627 | — | — | |||||||||||||||||||
Total recognized in other comprehensive income or loss | 45,555 | (12,964 | ) | (67,185 | ) | 4,185 | (4,767 | ) | 166 | ||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income or loss | $ | 44,368 | $ | (14,318 | ) | $ | (63,018 | ) | $ | (1,744 | ) | $ | (4,254 | ) | $ | 134 | |||||||||
The estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year is $96 thousand for our combined defined benefit pension plans. We estimate that the prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans. We estimate that the estimated amortization from accumulated other comprehensive income or loss for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be zero for our defined benefit postretirement plans. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: | |||||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||
Discount rate | 3.89 | % | 4.83 | % | 3.8 | % | 4.7 | % | |||||||||||||||||
Rate of compensation increase | — | — | N/A * | N/A * | |||||||||||||||||||||
Net periodic benefit costs: | |||||||||||||||||||||||||
Discount rate | 4.83 | % | 3.97 | % | 3.8 | % | 3.89 | % | |||||||||||||||||
Expected long-term rate of return on plan assets | 5.29 | 4.55 | N/A * | N/A * | |||||||||||||||||||||
Rate of compensation increase (average) | — | — | N/A * | N/A * | |||||||||||||||||||||
* | Not applicable | ||||||||||||||||||||||||
Discount Rate Methodology | |||||||||||||||||||||||||
The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2014 and an equivalent single discount rate was derived that resulted in the same liability. This single discount rate for each plan was used. | |||||||||||||||||||||||||
Investment Strategy | |||||||||||||||||||||||||
The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (a) provide for the benefit obligations of the plans over the long term; (b) limit the risk of short-term funding shortfalls; and (c) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. | |||||||||||||||||||||||||
Allocation of Plan Assets | |||||||||||||||||||||||||
The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. | |||||||||||||||||||||||||
At December 31, 2014, the actual asset allocation for the primary asset classes was 94% in fixed income securities, 5% in equity securities, and 1% in cash and cash equivalents. The 2015 target asset allocation for the primary asset classes is 94% in fixed income securities and 6% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. | |||||||||||||||||||||||||
The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 6.2% for the CommoLoCo Retirement Plan for 2014. The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. | |||||||||||||||||||||||||
Expected Cash Flows | |||||||||||||||||||||||||
Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. | |||||||||||||||||||||||||
The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans and other postretirement benefit plans, at December 31, 2014 are as follows: | |||||||||||||||||||||||||
(dollars in thousands) | Pension | Postretirement | |||||||||||||||||||||||
2015 | $ | 13,015 | $ | 23 | |||||||||||||||||||||
2016 | 13,662 | 22 | |||||||||||||||||||||||
2017 | 14,278 | 22 | |||||||||||||||||||||||
2018 | 14,785 | 23 | |||||||||||||||||||||||
2019 | 15,351 | 23 | |||||||||||||||||||||||
2020-2024 | 85,340 | 112 | |||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — PLAN ASSETS | |||||||||||||||||||||||||
The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. | |||||||||||||||||||||||||
The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: | |||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,170 | $ | — | $ | — | $ | 2,170 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | — | 19,080 | — | 19,080 | |||||||||||||||||||||
International (b) | — | 972 | — | 972 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. investment grade (c) | — | 335,420 | — | 335,420 | |||||||||||||||||||||
U.S. high yield (d) | — | 1,556 | — | 1,556 | |||||||||||||||||||||
Total | $ | 2,170 | $ | 357,028 | $ | — | $ | 359,198 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,920 | $ | — | $ | — | $ | 2,920 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | — | 17,306 | — | 17,306 | |||||||||||||||||||||
International (b) | — | 1,015 | — | 1,015 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. investment grade (c) | — | 293,903 | — | 293,903 | |||||||||||||||||||||
U.S. high yield (d) | — | 1,516 | — | 1,516 | |||||||||||||||||||||
Total | $ | 2,920 | $ | 313,740 | $ | — | $ | 316,660 | |||||||||||||||||
(a) | Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. | ||||||||||||||||||||||||
(b) | Includes investment mutual funds in companies in emerging and developed markets. | ||||||||||||||||||||||||
(c) | Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. | ||||||||||||||||||||||||
(d) | Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. | ||||||||||||||||||||||||
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||
OMNIBUS INCENTIVE PLAN | ||||||||||
In 2013, SHI adopted the 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”) under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. Under this plan, 11,478,844 shares of authorized common stock are reserved for issuance pursuant to grants approved by SHI’s Board of Directors. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Plan allows for issuance of stock options, RSUs and restricted stock awards (“RSAs”), stock appreciation rights (“SARs”), and other stock-based awards and cash awards. SFC participates in stock awards of SHI. Unless specifically noted, the following disclosures are based on all award activity of SHI. | ||||||||||
Service-based Awards | ||||||||||
In connection with the initial public offering on October 16, 2013 and subsequent to the offering, SHI has granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years and provide the holders the right to vote and to earn dividends during the vesting period that are subject to forfeiture if the shares do not vest. The fair value for restricted units and awards is generally the closing market price of SHI’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2014 and 2013 was $25.65 and $17.00, respectively. The total fair value of service-based awards that vested during 2014 was $1.4 million. No service-based awards vested in 2013. | ||||||||||
The following table summarizes the service-based stock activity and related information for the 2013 Omnibus Plan for 2014: | ||||||||||
(dollars in thousands) | Number of Shares | Weighted | Weighted | |||||||
Average | Average | |||||||||
Grant Date Fair Value | Remaining | |||||||||
Term (in Years) | ||||||||||
Unvested at January 1, 2014 | 1,367,996 | $ | 17.03 | |||||||
Granted | 192,938 | 25.65 | ||||||||
Vested | (58,844 | ) | 23.33 | |||||||
Forfeited | (149,225 | ) | 17.73 | |||||||
Unvested at December 31, 2014 | 1,352,865 | 17.91 | 2.89 | |||||||
Performance-based Awards | ||||||||||
During 2014, SHI awarded performance-based RSUs (“PRSUs”) that may be earned based on the financial performance of SHI. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2016. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2016, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2016, 2017 and 2018; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the Form 10-K filing date that occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award. | ||||||||||
Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and cancelled, and all expense recognized to that date is reversed. As of December 31, 2014, no expense was recognized for these awards. | ||||||||||
The weighted average grant date fair value of performance-based awards issued in 2014 was $25.78. No performance-based awards vested in 2014. | ||||||||||
The following table summarizes the performance-based stock activity and related information for the 2013 Omnibus Plan for 2014: | ||||||||||
(dollars in thousands) | Number of Shares | Weighted | Weighted | |||||||
Average | Average | |||||||||
Grant Date Fair Value | Remaining | |||||||||
Term (in Years) | ||||||||||
Unvested at January 1, 2014 | — | $ | — | |||||||
Granted | 600,230 | 25.78 | ||||||||
Forfeited | (16,771 | ) | 23.85 | |||||||
Unvested at December 31, 2014 | 583,459 | 25.84 | 3.59 | |||||||
In addition, Springleaf Holdings, LLC, the predecessor entity of SHI, granted 8.203125 RSUs to two of our executives on September 30, 2013, for which we recorded share-based compensation expense of $131.3 million. This grant was subsequently amended on October 8, 2013 to reduce the number of RSUs granted to the executives by 0.859375 RSUs and to grant these units to a certain management employee. No other terms of the grant were modified. As a result of the additional grant, we recognized $13.7 million in additional compensation expense in the fourth quarter of 2013. There was no additional compensation expense recorded for the modification of the grant to the executives, as the fair value of the modified award was less than the fair value of the original award immediately before the terms were modified. Therefore, total compensation expense recognized for the 8.203125 units was $145.0 million. These RSUs were converted into the right to receive 8.203125% of the outstanding shares of SHI common stock following the conversion of Springleaf Holdings, LLC into SHI on October 9, 2013 and were also subject to an equitable adjustment for the stock split that occurred on October 9, 2013. The adjusted number of shares of SHI common stock underlying these RSUs (8,203,125 shares) were delivered to the holders in October 2013 after the conversion. The weighted average grant date fair value of these units (after conversion and subsequent stock split) was $16.00 based on an equity valuation. The shares are fully vested; however, they generally cannot be sold or otherwise transferred for five years following the date of delivery, except to the extent necessary to satisfy certain tax obligations. | ||||||||||
Total share-based compensation expense, net of forfeitures, recorded by SFC was $0.7 million in 2014 and $145.0 million in 2013. The total income tax benefit recognized for stock-based compensation was $0.3 million in 2014 and $50.5 million in 2013. As of December 31, 2014, there was total unrecognized compensation expense of $2.2 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 1.9 years. | ||||||||||
Springleaf Financial Holdings, LLC Incentive Units | ||||||||||
On October 9, 2013, certain executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. Expense will be recorded to the extent a distribution or other payout becomes probable. No expense was recognized for these awards during 2014 or 2013. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||||||||||
Our segments coincide with how our businesses are managed. At December 31, 2014, our three segments include: | |||||||||||||||||||||||||||||
• | Consumer and Insurance; | ||||||||||||||||||||||||||||
• | Acquisitions and Servicing; and | ||||||||||||||||||||||||||||
• | Real Estate. | ||||||||||||||||||||||||||||
As previously discussed in Note 1, we are presenting Consumer and Insurance as one segment in this report, which were previously presented as two distinct reporting segments. To conform to the new segment alignment, we have revised our prior period segment disclosures. The Acquisitions and Servicing segment was added effective July 31, 2014, as a result of the SAC Capital Contribution on July 31, 2014, as previously discussed in Note 1. | |||||||||||||||||||||||||||||
Management considers Consumer and Insurance and Acquisitions and Servicing as our “Core Consumer Operations” and Real Estate as our “Non-Core Portfolio.” See Note 1 for a description of our business segments. | |||||||||||||||||||||||||||||
We evaluate the performance of the segments based on pretax operating earnings. The accounting policies of the segments are the same as those disclosed in Note 2, except as described below. | |||||||||||||||||||||||||||||
Due to the nature of the Fortress Acquisition, we applied push-down accounting. However, we report the operating results of our Core Consumer Operations, Non-Core Portfolio, and Other using the same accounting basis that we employed prior to the Fortress Acquisition, which we refer to as “historical accounting basis,” to provide a consistent basis for both management and other interested third parties to better understand the operating results of these segments. The historical accounting basis (which is a basis of accounting other than U.S. GAAP) also provides better comparability of the operating results of these segments to our competitors and other companies in the financial services industry. The historical accounting basis is not applicable to the Acquisitions and Servicing segment since this segment resulted from the SAC Capital Contribution on July 31, 2014 and therefore, was not affected by the Fortress Acquisition. | |||||||||||||||||||||||||||||
The “Push-down Accounting Adjustments” column in the following tables primarily consists of: | |||||||||||||||||||||||||||||
• | the accretion or amortization of the valuation adjustments on the applicable revalued assets and liabilities; | ||||||||||||||||||||||||||||
• | the difference in finance charges on our purchased credit impaired finance receivables compared to the finance charges on these finance receivables on a historical accounting basis; | ||||||||||||||||||||||||||||
• | the elimination of accretion or amortization of historical based discounts, premiums, and other deferred costs on our finance receivables and long-term debt; | ||||||||||||||||||||||||||||
• | the difference in provision for finance receivable losses required based upon the differences in historical accounting basis and push-down accounting basis of the finance receivables; | ||||||||||||||||||||||||||||
• | the acceleration of the accretion of the net discount or amortization of the net premium applied to long-term debt that we repurchase or repay; | ||||||||||||||||||||||||||||
• | the reversal of the remaining unaccreted push-down accounting basis for net finance receivables, less allowance for finance receivable losses established at the date of the Fortress Acquisition on finance receivables held for sale that we sold; and | ||||||||||||||||||||||||||||
• | the difference in the fair value of long-term debt based upon the differences between historical accounting basis where certain long-term debt components are marked-to-market on a recurring basis, and push-down accounting basis where long-term debt is no longer marked-to-market on a recurring basis. | ||||||||||||||||||||||||||||
The following tables present information about the Company’s segments as well as reconciliations to the consolidated financial statement amounts. As previously discussed, we have combined the Consumer and Insurance segments for the prior period. | |||||||||||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Acquisitions and Servicing | Real Estate | Other | Eliminations | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 911,098 | $ | 216,758 | $ | 350,335 | $ | 16,429 | $ | — | $ | 79,833 | $ | 1,574,453 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | 51,316 | — | — | 8,773 | 60,089 | ||||||||||||||||||||||
Total interest income | 911,098 | 216,758 | 401,651 | 16,429 | — | 88,606 | 1,634,542 | ||||||||||||||||||||||
Interest expense | 163,299 | 35,351 | 349,544 | 7,393 | (5,347 | ) | 132,993 | 683,233 | |||||||||||||||||||||
Net interest income | 747,799 | 181,407 | 52,107 | 9,036 | 5,347 | (44,387 | ) | 951,309 | |||||||||||||||||||||
Provision for finance receivable losses | 200,071 | 48,968 | 128,213 | 6,502 | — | (16,196 | ) | 367,558 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 547,728 | 132,439 | (76,106 | ) | 2,534 | 5,347 | (28,191 | ) | 583,751 | ||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 166,345 | — | — | 119 | — | (5 | ) | 166,459 | |||||||||||||||||||||
Investment | 44,532 | 5,347 | (891 | ) | — | (5,347 | ) | (4,622 | ) | 39,019 | |||||||||||||||||||
Intersegment - insurance commissions | (434 | ) | — | 445 | (11 | ) | — | — | — | ||||||||||||||||||||
Net loss on repurchases and repayments of debt | (6,690 | ) | (21,152 | ) | (21,977 | ) | (326 | ) | — | (16,030 | ) | (66,175 | ) | ||||||||||||||||
Net gain on fair value adjustments on debt | — | 1,523 | 8,298 | — | — | (8,298 | ) | 1,523 | |||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | 191,809 | — | — | 509,820 | 701,629 | ||||||||||||||||||||||
Other | 10,833 | — | (15,335 | ) | 5,979 | — | (14,550 | ) | (13,073 | ) | |||||||||||||||||||
Total other revenues | 214,586 | (14,282 | ) | 162,349 | 5,761 | (5,347 | ) | 466,315 | 829,382 | ||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 273,584 | 2 | 37,023 | 10,512 | — | (379 | ) | 320,742 | |||||||||||||||||||||
Other operating expenses | 172,321 | 29,810 | 54,572 | 499 | — | 3,753 | 260,955 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 76,568 | — | — | — | — | (937 | ) | 75,631 | |||||||||||||||||||||
Total other expenses | 522,473 | 29,812 | 91,595 | 11,011 | — | 2,437 | 657,328 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 239,841 | 88,345 | (5,352 | ) | (2,716 | ) | — | 435,687 | 755,805 | ||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | 44,497 | — | — | — | — | 44,497 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 239,841 | $ | 43,848 | $ | (5,352 | ) | $ | (2,716 | ) | $ | — | $ | 435,687 | $ | 711,308 | |||||||||||||
Assets | $ | 4,472,211 | $ | 2,431,267 | $ | 3,647,123 | $ | 563,975 | $ | — | $ | 11,894 | $ | 11,126,470 | |||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 720,824 | $ | 690,329 | $ | 45,035 | $ | 191,321 | $ | 1,647,509 | |||||||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | 333 | — | 333 | ||||||||||||||||||||||||
Total interest income | 720,824 | 690,329 | 45,368 | 191,321 | 1,647,842 | ||||||||||||||||||||||||
Interest expense | 149,228 | 538,939 | 15,009 | 139,503 | 842,679 | ||||||||||||||||||||||||
Net interest income | 571,596 | 151,390 | 30,359 | 51,818 | 805,163 | ||||||||||||||||||||||||
Provision for finance receivable losses | 116,570 | 255,438 | (199 | ) | 21,705 | 393,514 | |||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 455,026 | (104,048 | ) | 30,558 | 30,113 | 411,649 | |||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 148,131 | — | 80 | (32 | ) | 148,179 | |||||||||||||||||||||||
Investment | 41,704 | — | — | (8,094 | ) | 33,610 | |||||||||||||||||||||||
Intersegment - insurance commissions | (30 | ) | 134 | (104 | ) | — | — | ||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (5,354 | ) | (46,388 | ) | (1,071 | ) | 11,097 | (41,716 | ) | ||||||||||||||||||||
Net gain on fair value adjustments on debt | — | 56,890 | — | (56,890 | ) | — | |||||||||||||||||||||||
Other | 11,695 | (3,794 | ) | 14,226 | (362 | ) | 21,765 | ||||||||||||||||||||||
Total other revenues | 196,146 | 6,842 | 13,131 | (54,281 | ) | 161,838 | |||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 253,676 | 27,205 | 166,401 | (198 | ) | 447,084 | |||||||||||||||||||||||
Other operating expenses | 128,099 | 56,900 | 8,239 | 4,203 | 197,441 | ||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 65,783 | — | — | (904 | ) | 64,879 | |||||||||||||||||||||||
Total other expenses | 447,558 | 84,105 | 174,640 | 3,101 | 709,404 | ||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 203,614 | $ | (181,311 | ) | $ | (130,951 | ) | $ | (27,269 | ) | $ | (135,917 | ) | |||||||||||||||
Assets | $ | 4,186,573 | $ | 8,472,387 | $ | 663,997 | $ | (590,920 | ) | $ | 12,732,037 | ||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 585,041 | $ | 810,441 | $ | 100,097 | $ | 196,327 | $ | 1,691,906 | |||||||||||||||||||
Finance receivables held for sale originated as held for investment | — | 2,734 | — | 6 | 2,740 | ||||||||||||||||||||||||
Total interest income | 585,041 | 813,175 | 100,097 | 196,333 | 1,694,646 | ||||||||||||||||||||||||
Interest expense | 141,710 | 659,536 | 33,775 | 232,688 | 1,067,709 | ||||||||||||||||||||||||
Net interest income | 443,331 | 153,639 | 66,322 | (36,355 | ) | 626,937 | |||||||||||||||||||||||
Provision for finance receivable losses | 90,598 | 54,061 | 10,659 | 185,644 | 340,962 | ||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 352,733 | 99,578 | 55,663 | (221,999 | ) | 285,975 | |||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 126,423 | — | 108 | (108 | ) | 126,423 | |||||||||||||||||||||||
Investment | 41,417 | — | — | (10,283 | ) | 31,134 | |||||||||||||||||||||||
Intersegment - insurance commissions | (272 | ) | 95 | 177 | — | — | |||||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 5,890 | 13,777 | 1,415 | (36,210 | ) | (15,128 | ) | ||||||||||||||||||||||
Net gain on fair value adjustments on debt | — | 10,369 | — | (10,369 | ) | — | |||||||||||||||||||||||
Other | 10,788 | (74,450 | ) | 21,148 | 14,217 | (28,297 | ) | ||||||||||||||||||||||
Total other revenues | 184,246 | (50,209 | ) | 22,848 | (42,753 | ) | 114,132 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 258,683 | 29,617 | 32,162 | (530 | ) | 319,932 | |||||||||||||||||||||||
Other operating expenses | 124,920 | 73,851 | 94,867 | 9,740 | 303,378 | ||||||||||||||||||||||||
Restructuring expenses | 15,863 | 818 | 6,822 | — | 23,503 | ||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 62,092 | — | — | (1,413 | ) | 60,679 | |||||||||||||||||||||||
Total other expenses | 461,558 | 104,286 | 133,851 | 7,797 | 707,492 | ||||||||||||||||||||||||
Income (loss) before benefit from income taxes | $ | 75,421 | $ | (54,917 | ) | $ | (55,340 | ) | $ | (272,549 | ) | $ | (307,385 | ) | |||||||||||||||
Assets | $ | 3,573,653 | $ | 9,627,259 | $ | 2,230,109 | $ | (790,809 | ) | $ | 14,640,212 | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||
The fair value of a financial instrument is the amount that would be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 2 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. | |||||||||||||||||||||||||||||
The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | Total Fair Value | Total Carrying Value | |||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 749,582 | $ | — | $ | — | $ | 749,582 | $ | 749,582 | |||||||||||||||||||
Investment securities | — | 2,912,516 | 9,299 | 2,921,815 | 2,921,815 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,948,883 | 6,948,883 | 6,277,795 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 208,767 | 208,767 | 204,967 | ||||||||||||||||||||||||
Note receivable from parent | — | 251,489 | — | 251,489 | 251,489 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 217,975 | — | — | 217,975 | 217,975 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 78,173 | 78,173 | 84,539 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8,069 | 8,069 | 8,069 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 11,563 | — | 11,563 | 11,563 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 67,115 | — | 67,115 | 78,747 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 9,181,765 | $ | — | $ | 9,181,765 | $ | 8,384,910 | |||||||||||||||||||
Payables to parent and affiliates | — | 47,680 | — | 47,680 | 47,680 | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 374,835 | $ | — | $ | — | $ | 374,835 | $ | 374,835 | |||||||||||||||||||
Investment securities | — | 531,997 | 23,617 | 555,614 | 555,614 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 11,113,980 | 11,113,980 | 10,811,664 | ||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 358,759 | — | — | 358,759 | 358,759 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 94,681 | 94,681 | 102,200 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 23,527 | 23,527 | 23,527 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 39,364 | — | 39,364 | 39,364 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 11,776,576 | $ | — | $ | 11,776,576 | $ | 10,640,728 | |||||||||||||||||||
Payables to parent and affiliates | — | 38,463 | — | 38,463 | 38,463 | ||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — RECURRING BASIS | |||||||||||||||||||||||||||||
The following table presents information about our assets and liabilities 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 thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 236,480 | $ | — | $ | — | $ | 236,480 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 164,709 | — | 164,709 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 63,331 | — | 63,331 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 101,683 | — | 101,683 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1,125 | — | 1,125 | |||||||||||||||||||||||||
Corporate debt | — | 262,850 | 4,078 | 266,928 | |||||||||||||||||||||||||
RMBS | — | 72,901 | 56 | 72,957 | |||||||||||||||||||||||||
CMBS | — | 21,928 | 2,501 | 24,429 | |||||||||||||||||||||||||
CDO/ABS | — | 61,250 | — | 61,250 | |||||||||||||||||||||||||
Total | — | 585,068 | 6,635 | 591,703 | |||||||||||||||||||||||||
Preferred stock | — | 7,094 | — | 7,094 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,343 | 1,343 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 592,162 | 7,978 | 600,140 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 302,084 | — | 302,084 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 13,788 | — | 13,788 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 237,637 | — | 237,637 | |||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 19,613 | — | 19,613 | |||||||||||||||||||||||||
Corporate debt | — | 1,055,682 | — | 1,055,682 | |||||||||||||||||||||||||
RMBS | — | 35,328 | 163 | 35,491 | |||||||||||||||||||||||||
CMBS | — | 148,880 | — | 148,880 | |||||||||||||||||||||||||
CDO/ABS | — | 507,342 | — | 507,342 | |||||||||||||||||||||||||
Total trading securities | — | 2,320,354 | 163 | 2,320,517 | |||||||||||||||||||||||||
Total investment securities | — | 2,912,516 | 8,141 | 2,920,657 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 206,691 | — | — | 206,691 | |||||||||||||||||||||||||
Total | $ | 443,171 | $ | 3,077,225 | $ | 8,141 | $ | 3,528,537 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 185,829 | $ | — | $ | — | $ | 185,829 | |||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 58,633 | — | 58,633 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102,745 | — | 102,745 | |||||||||||||||||||||||||
Corporate debt | — | 225,312 | 12,604 | 237,916 | |||||||||||||||||||||||||
RMBS | — | 82,510 | 113 | 82,623 | |||||||||||||||||||||||||
CMBS | — | 7,545 | 2 | 7,547 | |||||||||||||||||||||||||
CDO/ABS | — | 3,176 | 800 | 3,976 | |||||||||||||||||||||||||
Total | — | 479,921 | 13,519 | 493,440 | |||||||||||||||||||||||||
Preferred stock | — | 7,805 | — | 7,805 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,269 | 1,269 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 487,726 | 14,788 | 502,514 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | — | 1,837 | — | 1,837 | |||||||||||||||||||||||||
RMBS | — | 10,671 | — | 10,671 | |||||||||||||||||||||||||
CMBS | — | 29,897 | — | 29,897 | |||||||||||||||||||||||||
CDO/ABS | — | 1,866 | 7,383 | 9,249 | |||||||||||||||||||||||||
Total trading securities | — | 44,271 | 7,383 | 51,654 | |||||||||||||||||||||||||
Total investment securities | — | 531,997 | 22,171 | 554,168 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 321,617 | — | — | 321,617 | |||||||||||||||||||||||||
Total | $ | 507,446 | $ | 531,997 | $ | 22,171 | $ | 1,061,614 | |||||||||||||||||||||
(a) | Other long-term investments excludes our interest in a limited partnership of $0.5 million at December 31, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. | ||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $0.7 million at December 31, 2014 and $0.9 million at December 31, 2013 and, therefore, have been excluded from the table above. | ||||||||||||||||||||||||||||
We had no transfers between Level 1 and Level 2 during 2014. | |||||||||||||||||||||||||||||
The following table presents changes during 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements (a) | into | out of Level 3 (c) | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 (b) | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 12,604 | $ | 151 | $ | (283 | ) | $ | (8,394 | ) | $ | — | $ | — | $ | 4,078 | |||||||||||||
RMBS | 113 | (14 | ) | (43 | ) | — | — | — | 56 | ||||||||||||||||||||
CMBS | 2 | — | 13 | — | 2,486 | — | 2,501 | ||||||||||||||||||||||
CDO/ABS | 800 | — | 3 | — | — | (803 | ) | — | |||||||||||||||||||||
Total | 13,519 | 137 | (310 | ) | (8,394 | ) | 2,486 | (803 | ) | 6,635 | |||||||||||||||||||
Other long-term investments | 1,269 | — | 164 | (90 | ) | — | — | 1,343 | |||||||||||||||||||||
Total available-for-sale securities | 14,788 | 137 | (146 | ) | (8,484 | ) | 2,486 | (803 | ) | 7,978 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | (80 | ) | (96 | ) | (106 | ) | 1,602 | (1,157 | ) | 163 | ||||||||||||||||||
CDO/ABS | 7,383 | 141 | — | (6,721 | ) | — | (803 | ) | — | ||||||||||||||||||||
Total trading securities | 7,383 | 61 | (96 | ) | (6,827 | ) | 1,602 | (1,960 | ) | 163 | |||||||||||||||||||
Total | $ | 22,171 | $ | 198 | $ | (242 | ) | $ | (15,311 | ) | $ | 4,088 | $ | (2,763 | ) | $ | 8,141 | ||||||||||||
(a) | “Purchases, sales, issues, and settlements” column consists only of settlements. There were no purchases, sales, or issues of investment securities for 2014. | ||||||||||||||||||||||||||||
(b) | During 2014, we transferred $2.5 million of CMBS available-for-sale securities and $1.6 million of RMBS trading securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
(c) | During 2014, we transferred $0.8 million of CDO/ABS available-for-sale securities, $1.2 million of RMBS trading securities, and $0.8 million of CDO/ABS trading securities out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes during 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements* | into | out of Level 3 | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (180 | ) | $ | 475 | $ | (101 | ) | $ | — | $ | (1,007 | ) | $ | 12,604 | ||||||||||||
RMBS | 74 | (35 | ) | 74 | — | — | — | 113 | |||||||||||||||||||||
CMBS | 153 | (7 | ) | 5 | (149 | ) | — | — | 2 | ||||||||||||||||||||
CDO/ABS | 1,200 | — | — | (400 | ) | — | — | 800 | |||||||||||||||||||||
Total | 14,844 | (222 | ) | 554 | (650 | ) | — | (1,007 | ) | 13,519 | |||||||||||||||||||
Other long-term investments | 1,380 | 2 | (102 | ) | (11 | ) | — | — | 1,269 | ||||||||||||||||||||
Total available-for-sale securities | 16,224 | (220 | ) | 452 | (661 | ) | — | (1,007 | ) | 14,788 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | 12,192 | 53 | — | (4,862 | ) | — | — | 7,383 | |||||||||||||||||||||
Total | $ | 28,416 | $ | (167 | ) | $ | 452 | $ | (5,523 | ) | $ | — | $ | (1,007 | ) | $ | 22,171 | ||||||||||||
* | The detail of purchases, sales, issues, and settlements during 2013 is presented in the following table. | ||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis during 2013: | |||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (1,082 | ) | $ | (101 | ) | ||||||||||||||||
CMBS | — | — | — | (149 | ) | (149 | ) | ||||||||||||||||||||||
CDO/ABS | — | — | — | (400 | ) | (400 | ) | ||||||||||||||||||||||
Total | 2,016 | (1,035 | ) | — | (1,631 | ) | (650 | ) | |||||||||||||||||||||
Other long-term investments | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||
Total available-for-sale securities | 2,016 | (1,035 | ) | — | (1,642 | ) | (661 | ) | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (4,862 | ) | (4,862 | ) | ||||||||||||||||||||||
Total | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (6,504 | ) | $ | (5,523 | ) | ||||||||||||||||
During 2013, we transferred a $1.0 million available-for-sale corporate debt security out of Level 3 primarily due to greater pricing transparency. | |||||||||||||||||||||||||||||
We used observable and/or unobservable inputs to determine the fair value of positions that we have classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category presented in the Level 3 tables above may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. | |||||||||||||||||||||||||||||
The unobservable inputs and quantitative data used in our Level 3 valuations for our investment securities were developed and used in models created by our third-party valuation service providers, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for other long-term investments. As a result, the weighted average ranges of the inputs for these investment securities are not applicable in the following table. | |||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 1.05% (a) | 2.68% – 8.48% (4.67%) | |||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 139 bps (a) | — | |||||||||||||||||||||||||
CMBS | Discounted cash flows | Spread | 736 bps (a) | — | |||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity | N/A (b) | N/A (b) | |||||||||||||||||||||||||
(a) | At December 31, 2014, corporate debt, RMBS, and CMBS each consisted of one bond. | ||||||||||||||||||||||||||||
(b) | Not applicable. | ||||||||||||||||||||||||||||
The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||
Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS | |||||||||||||||||||||||||||||
We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. | |||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | Impairment Charges | ||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 19,446 | $ | 19,446 | $ | 15,264 | |||||||||||||||||||
Commercial mortgage loans | — | — | 10,796 | 10,796 | (1,828 | ) | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 30,242 | $ | 30,242 | $ | 13,436 | |||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 71,469 | $ | 71,469 | $ | 25,257 | |||||||||||||||||||
Commercial mortgage loans | — | — | 11,935 | 11,935 | (2,010 | ) | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 83,404 | $ | 83,404 | $ | 23,247 | |||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell during 2014 and 2013 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. | |||||||||||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value during 2014 and 2013 and recorded the net impairments in investment revenues. | |||||||||||||||||||||||||||||
The unobservable inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans were developed and used in models created by our third-party valuation service providers or valuations provided by external parties, which values were used by us for fair value disclosure purposes without adjustment. We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs. As a result, the weighted average ranges of the inputs are not applicable in the following table. | |||||||||||||||||||||||||||||
Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A * | N/A * | |||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions Nature of investment Comparable property sales Operating performance | N/A * | N/A * | |||||||||||||||||||||||||
* | Not applicable. | ||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS | |||||||||||||||||||||||||||||
We use the following methods and assumptions to estimate fair value. | |||||||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||||||
The carrying amount of cash and cash equivalents, including cash and cash equivalents in certificates of deposit and commercial paper, approximates fair value. | |||||||||||||||||||||||||||||
Mutual Funds | |||||||||||||||||||||||||||||
The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds. | |||||||||||||||||||||||||||||
Investment Securities | |||||||||||||||||||||||||||||
We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. | |||||||||||||||||||||||||||||
We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. | |||||||||||||||||||||||||||||
We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value as trading securities at fair value. | |||||||||||||||||||||||||||||
The carrying amount of certificates of deposit and commercial paper having maturity dates greater than three months approximates fair value. | |||||||||||||||||||||||||||||
Finance Receivables | |||||||||||||||||||||||||||||
The fair value of net finance receivables, less allowance for finance receivable losses, both non-impaired and purchased credit impaired, are determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent weaknesses in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. | |||||||||||||||||||||||||||||
Finance Receivables Held for Sale | |||||||||||||||||||||||||||||
We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. | |||||||||||||||||||||||||||||
Restricted Cash and Cash Equivalents | |||||||||||||||||||||||||||||
The carrying amount of restricted cash and cash equivalents approximates fair value. | |||||||||||||||||||||||||||||
Note Receivable from Parent | |||||||||||||||||||||||||||||
The carrying amount of the note receivable from parent approximates the fair value because the note is payable on a demand basis prior to its due date on May 31, 2022 and the interest rate on this note adjusts with changing market interest rates. | |||||||||||||||||||||||||||||
Commercial Mortgage Loans | |||||||||||||||||||||||||||||
We utilize third-party valuation service providers to estimate the fair value of commercial mortgage loans using projected cash flows discounted at an appropriate rate based upon market conditions. | |||||||||||||||||||||||||||||
Real Estate Owned | |||||||||||||||||||||||||||||
We initially based our estimate of the fair value on independent third-party valuations at the time we took title to real estate owned. Subsequent changes in fair value are based upon independent third-party valuations obtained periodically to estimate a price that would be received in a then current transaction to sell the asset. | |||||||||||||||||||||||||||||
Escrow Advance Receivable | |||||||||||||||||||||||||||||
The carrying amount of escrow advance receivable approximates fair value. | |||||||||||||||||||||||||||||
Receivables from Parent and Affiliates | |||||||||||||||||||||||||||||
The carrying amount reported in our consolidated balance sheets approximates fair value. | |||||||||||||||||||||||||||||
Receivables Related to Sales of Real Estate Loans and Related Trust Assets | |||||||||||||||||||||||||||||
The carrying amount of receivables related to sales of real estate loans and related trust assets less estimated forfeitures, which are reflected in other liabilities, approximates fair value. | |||||||||||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||||||||
We either receive fair value measurements of our long-term debt from market participants and pricing services or we estimate the fair values of long-term debt using projected cash flows discounted at each balance sheet date’s market-observable implicit-credit spread rates for our long-term debt and adjusted for foreign currency translations. | |||||||||||||||||||||||||||||
We record long-term debt issuances at fair value that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2014, we had no debt carried at fair value under the fair value option. | |||||||||||||||||||||||||||||
Payables to Parent and Affiliates | |||||||||||||||||||||||||||||
The fair value of payable to parent and affiliates approximates the carrying value due to its short-term nature. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
Our selected quarterly financial data for 2014 was as follows: | |||||||||||||||||
(dollars in thousands) | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income | $ | 408,804 | $ | 431,816 | $ | 391,353 | $ | 402,569 | |||||||||
Interest expense | 157,198 | 172,492 | 171,797 | 181,746 | |||||||||||||
Provision for finance receivable losses | 94,186 | 92,114 | 74,246 | 107,012 | |||||||||||||
Other revenues | (25,188 | ) | 662,819 | 92,296 | 99,455 | ||||||||||||
Other expenses | 172,396 | 182,431 | 151,517 | 150,984 | |||||||||||||
Income (loss) before provision for (benefit from) income taxes | (40,164 | ) | 647,598 | 86,089 | 62,282 | ||||||||||||
Provision for (benefit from) income taxes | (12,618 | ) | 219,092 | 32,811 | 24,080 | ||||||||||||
Net income (loss) | (27,546 | ) | 428,506 | 53,278 | 38,202 | ||||||||||||
Net income attributable to non-controlling interests | 21,272 | 23,225 | — | — | |||||||||||||
Net income (loss) attributable to Springleaf Finance Corporation | $ | (48,818 | ) | $ | 405,281 | $ | 53,278 | $ | 38,202 | ||||||||
Our selected quarterly financial data for 2013 was as follows: | |||||||||||||||||
(dollars in thousands) | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Interest income | $ | 414,338 | $ | 417,141 | $ | 407,846 | $ | 408,517 | |||||||||
Interest expense | 192,818 | 205,270 | 214,285 | 230,306 | |||||||||||||
Provision for finance receivable losses | 133,509 | 101,390 | 64,384 | 94,231 | |||||||||||||
Other revenues | 41,771 | 16,751 | 56,316 | 47,000 | |||||||||||||
Other expenses | 147,557 | 278,285 | 141,948 | 141,614 | |||||||||||||
Income (loss) before provision for (benefit from) income taxes | (17,775 | ) | (151,053 | ) | 43,545 | (10,634 | ) | ||||||||||
Provision for (benefit from) income taxes | (9,180 | ) | (57,145 | ) | 16,398 | (3,350 | ) | ||||||||||
Net income (loss) | $ | (8,595 | ) | $ | (93,908 | ) | $ | 27,147 | $ | (7,284 | ) | ||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
SHI’S PENDING ACQUISITION OF ONEMAIN FINANCIAL | |
On March 2, 2015, SHI entered into a Stock Purchase Agreement with CitiFinancial Credit Company to acquire OneMain Financial Holdings, Inc. (“OneMain”) for an aggregate purchase price of $4.25 billion. The proposed acquisition is expected to close in the third quarter of 2015, although there can be no assurance that the proposed acquisition will close, or, if it does, when the actual closing will occur. SHI continues to evaluate its plans regarding the integration of OneMain with its remaining businesses including us. | |
SECURITIZATIONS | |
Renewal of Sumner Brook 2013-VFN1 Securitization | |
On January 16, 2015, we amended the note purchase agreement with Sumner Brook 2013-VFN1 Trust to extend the two-year funding period to a three-year funding period. Following the three-year funding period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in August 2024. The maximum principal balance of variable funding notes that can be issued remained at $350 million. No amounts have been funded. | |
2015-A Securitization | |
On February 26, 2015, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $1.2 billion of notes backed by personal loans held by Springleaf Funding Trust 2015-A (the “2015-A Trust”), at a 3.55% weighted average yield. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12.5 million interest reserve requirement. | |
Sale of SpringCastle 2014-A Notes | |
On March 9, 2015, SAC agreed to sell $231.7 million and $130.8 million principal amount of the Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale is expected to be completed on March 16, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
BASIS OF PRESENTATION | BASIS OF PRESENTATION | |
We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). The statements include the accounts of SFC, its subsidiaries (all of which are wholly owned, except for certain subsidiaries associated with a joint venture in which we own a 47% equity interest), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2014 presentation, we reclassified certain items in prior periods, including certain items in prior periods of our consolidated cash flow statement. | ||
Prior Period Revisions | Prior Period Revisions | |
During the first quarter of 2014, we identified that the disclosure of the allowance for finance receivable losses related to our securitized finance receivables at December 31, 2013, was previously incorrectly overstated by $26.8 million. The parenthetical disclosure of the allowance of consolidated VIEs as of December 31, 2013 on our consolidated balance sheet and the related VIE disclosures in Notes 5 and 12 have been revised in this report to $153.1 million. | ||
During the second quarter of 2014, we discovered that we incorrectly disclosed the carrying values at the date of sale of the real estate loans associated with the 2009-1 securitization and certain additional real estate loans sold on March 31, 2014. The affected carrying values have been corrected in Note 1 in this report as follows: (i) the carrying value of real estate loans associated with the 2009-1 securitization that were sold on March 31, 2014, was previously reported as $742.0 million but has been corrected to be $724.9 million and (ii) the carrying value of additional real estate loans sold on March 31, 2014, was previously reported as $93.3 million but has been corrected to be $89.9 million. | ||
During the fourth quarter of 2014, we discovered that we previously understated the carrying value of the real estate loans associated with the September Whole Loan Sales in our calculation of the gain (loss) on the September Whole Loan Sales. This error resulted in an overstatement of $9.8 million of net gain on sales of real estate loans and related trust assets for the three and nine months ended September 30, 2014. As a result of this finding, we recorded an out-of-period adjustment in the fourth quarter of 2014, which decreased net gain on sales of real estate loans and related trust assets by $9.8 million and decreased provision for income taxes by $3.6 million. Additionally, the carrying value at the date of sale of the real estate loans associated with the September Whole Loan Sales that were sold on September 30, 2014, was previously reported as $768.6 million but has been corrected in Note 1 in this report to be $778.4 million. | ||
Additionally, during the fourth quarter of 2014, we discovered that we previously overstated the carrying value of the real estate loans associated with the Securitization Assets Sale in our calculation of the gain (loss) on the Securitization Assets Sale. This error resulted in an understatement of $4.5 million of net gain on sales of real estate loans and related trust assets for the three and nine months ended September 30, 2014. As a result of this finding, we recorded an out-of-period adjustment in the fourth quarter of 2014, which increased net gain on sales of real estate loans and related trust assets by $4.5 million, increased provision for income taxes by $1.7 million, and increased basic and diluted earnings per share each by $0.02. Since the carrying value at the date of sale of the real estate loans associated with the Securitization Assets Sale that were sold on August 29, 2014, was previously reported in billions as $4.0 billion, the corrected carrying value reported in billions in Note 1 in this report did not change. | ||
Additionally, during the fourth quarter of 2014, we discovered that our personal loans deemed to be troubled debt restructured (“TDR”) finance receivables were previously incorrectly excluded in the related disclosures of our finance receivables and allowance for finance receivable losses. The applicable amounts have been corrected in Notes 4 and 5 in this report for each period affected. | ||
After evaluating the quantitative and qualitative aspects of these corrections (individually and in the aggregate), management has determined that our previously issued interim and annual consolidated financial statements were not materially misstated. | ||
Fortress Acquisition | Fortress Acquisition | |
Due to the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress, (the “Fortress Acquisition”), the nature of the transaction, and at the direction of our acquirer, we applied push-down accounting to SFC as an acquired business. We revalued our assets and liabilities based on their fair values at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination accounting standards (“push-down accounting”). | ||
Finance Receivables | Finance Receivables | |
Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until customer payoff. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, unamortized deferred origination costs, and unamortized net premiums and discounts on purchased finance receivables. They are net of unamortized finance charges on precomputed receivables and unamortized points and fees. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. | ||
Although a significant portion of insurance claims and policyholder liabilities originate from the finance receivables, our policy is to report them as liabilities and not net them against finance receivables. | ||
Insurance claims and policyholder liabilities relate to the underwriting activities of our Consumer and Insurance segment. | ||
Finance Receivable Revenue Recognition | Finance Receivable Revenue Recognition | |
We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as a revenue adjustment using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them to revenue using the interest method. | ||
We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the SpringCastle Portfolio, and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. | ||
For finance receivables that had a carrying value net of the fair value discount established at the time of the Fortress Acquisition, we stop accreting the discount at the time we stop accruing finance charges. We do not reverse accretion of discount that was previously recognized. | ||
We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. | ||
We accrete the amount required to adjust the fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described below. | ||
Purchased Credit Impaired Finance Receivables | Purchased Credit Impaired Finance Receivables | |
As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified principally consists of those finance receivables that are 60 days or more past due at acquisition, which had been classified as TDR finance receivables as of the acquisition date, or had been previously modified. | ||
We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to periodically (at least once a quarter) update the amount of cash flows we expect to collect, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. | ||
Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. | ||
We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is charged-off. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its carrying amount with the carrying amount being determined using the pro-rata method (the UPB of the particular finance receivable divided by the UPB of the pool multiplied by the carrying amount of the pool). Removal of the finance receivable from a pool does not affect the yield used to recognize accretable yield of the pool. If a finance receivable is removed from the pool because it is charged-off, it is removed at its carrying amount with a charge to the provision for finance receivable losses. | ||
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables | |
We make modifications to our personal loans and loans in our SpringCastle Portfolio to assist borrowers who are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables in accordance with the authoritative guidance for impaired loans. | ||
We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, capitalize or forgive past due interest and, to a lesser extent, forgive principal. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment in accordance with the authoritative guidance for the accounting for impaired loans. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with the authoritative guidance for the accounting for contingencies. | ||
Finance charges for TDR finance receivables require the application of judgment. We place TDR finance receivables on accrual status or nonaccrual status based on the loans’ status prior to modification. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the finance receivable liquidates. | ||
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses | |
We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, SpringCastle Portfolio, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. | ||
Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: | ||
• | prior finance receivable loss and delinquency experience; | |
• | the composition of our finance receivable portfolio; and | |
• | current economic conditions, including the levels of unemployment and personal bankruptcies. | |
We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. | ||
To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. | ||
We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals, whether the customer’s account is current or delinquent, to the same credit risk underwriting process as we would a new application for credit. | ||
For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. Prior to granting the deferment, we require a partial payment that is usually the greater of one-half of a regular monthly payment or the interest due on the account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. | ||
For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we require a partial payment that is usually the greater of one-half of a regular monthly payment or the interest due on the account and any escrow payments for real estate loans that were originated at our branch offices and require two contractual payments plus any past due principal and escrow payments due on the account for real estate loans that were originated or acquired centrally. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally (prior to March 1, 2012, we waived the remaining past due interest). The account is considered current upon granting the deferment. We limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices (one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. | ||
We do not systemically track deferments granted because we believe the deferments we elect to grant, individually and in the aggregate, do not have a material effect on the amount of contractual cash flows of the finance receivables or the timing of their receipt. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. | ||
The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. | ||
We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. | ||
Finance Receivables Held for Sale | Finance Receivables Held for Sale | |
Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in finance receivables held for sale originated as held for investment revenues. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted average interest rates offered in the market for similar finance receivables. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows since U.S. GAAP requires the statement of cash flow presentation to be based on the original classification of the finance receivable. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. | ||
When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. | ||
Real Estate Owned | Real Estate Owned | |
We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. | ||
We test the balances of real estate owned for impairment on a quarterly basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the sale price we receive for a property less the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. | ||
Net Other Intangible Assets | Net Other Intangible Assets | |
We have determined that each of our net other intangible assets has a finite useful life with the exception of the insurance licenses, which we determined to have indefinite lives. | ||
For those net intangible assets with a finite useful life, we review such intangibles for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. | ||
For indefinite lived intangible assets, we first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test annually. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. | ||
Reserve for Sales Recourse Obligations | Reserve for Sales Recourse Obligations | |
When we sell finance receivables, we establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. We include our reserve for sales recourse obligations in other liabilities. | ||
Insurance Premiums and Commissions Revenue Recognition | Insurance Premiums and Commissions Revenue Recognition | |
We recognize credit insurance premiums on closed-end real estate loans and revolving finance receivables as revenue when billed monthly. We defer single premium credit insurance premiums in unearned premium reserves which we include in insurance claims and policyholder liabilities. We recognize unearned premiums on credit life insurance as revenue using the sum-of-the-digits or actuarial methods, except in the case of level-term contracts, for which we recognize unearned premiums as revenue using the straight-line method over the terms of the policies. We recognize unearned premiums on credit accident and health insurance as revenue using an average of the sum-of-the-digits and the straight-line methods. We recognize unearned premiums on credit-related property and casualty and credit involuntary unemployment insurance as revenue using the straight-line method over the terms of the policies. We recognize non-credit life insurance premiums as revenue when due. We recognize commissions on ancillary products as other revenue when received. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. | ||
Policy Reserves | Policy Reserves | |
Policy reserves for credit life, credit accident and health, credit-related property and casualty, and credit involuntary unemployment insurance equal related unearned premiums. We base claim reserves on Company experience. We estimate reserves for losses and loss adjustment expenses for credit-related property and casualty insurance based upon claims reported plus estimates of incurred but not reported claims. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. We base insurance reserves assumed under reinsurance agreements where we assume the risk of loss on various tabular and unearned premium methods. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. | ||
Acquisition Costs | Acquisition Costs | |
We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. | ||
Valuation of Investment Securities | Valuation of Investment Securities | |
We generally classify our investment securities as available-for-sale or trading, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholders’ equity. We record interest receivable on investment securities in other assets. | ||
We classify investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative as trading securities, which we record at fair value. We recognize any changes in fair value in investment revenues. | ||
We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (level 1 or 2) or unobservable (level 3) assumptions that market participants would use in pricing an asset or liability. | ||
Impairments on Investment Securities | Impairments on Investment Securities | |
Available-for-sale. Each quarter, we evaluate our available-for-sale investment securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: | ||
• | we intend to sell the security; | |
• | it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or | |
• | we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). | |
If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. | ||
In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. | ||
If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. | ||
If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (1) the estimated amount relating to credit loss; and (2) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. | ||
Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the amount recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. | ||
We recognize subsequent increases and decreases in the fair value of our available-for-sale investment securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. | ||
Investment Revenue Recognition | Investment Revenue Recognition | |
We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed securities as revenue using an effective yield based on estimated prepayments of the underlying mortgages. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. | ||
Realized Gains and Losses on Investment Securities | Realized Gains and Losses on Investment Securities | |
We specifically identify realized gains and losses on investment securities and include them in investment revenues. | ||
Variable Interest Entities | Variable Interest Entities | |
An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (1) the power to direct the activities that most significantly impact the economic performance of the VIE, and (2) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. | ||
Other Invested Assets | Other Invested Assets | |
Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. | ||
We typically maintain cash in financial institutions in excess of Federal Deposit Insurance Corporation insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. | ||
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents | |
We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. | ||
Long-term Debt | Long-term Debt | |
We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount or unamortized premium associated with the debt. Other than securitized products, we generally accrete discounts and premiums over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. Additionally, we generally accrete other deferred amounts (e.g., issuance costs) following the same method elected on the associated unaccreted discount or premium. | ||
Income Taxes | Income Taxes | |
We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. | ||
Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including: | ||
• | the nature, frequency, and severity of current and cumulative financial reporting losses; | |
• | the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences; | |
• | the carryforward periods for the net operating and capital loss carryforwards; | |
• | the sources and timing of future taxable income, giving greater weight to discrete sources and to earlier years in the forecast period; and | |
• | tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts. | |
We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset in income. | ||
We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more-likely-than-not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. | ||
Derivative Financial Instruments | Derivative Financial Instruments | |
Our derivatives were governed by International Swap and Derivatives Association, Inc. (“ISDA”) standard Master Agreements, whereby the parties agreed to net the amounts payable and receivable under all contracts governed by the ISDA Master Agreement in the event of a contract default by either one of the parties. If the net exposure was from the counterparty to us, we recorded the derivative asset in other assets on our consolidated balance sheet. If the net exposure was from us to the counterparty, we recorded the derivative liability in other liabilities on our consolidated balance sheet. We recorded net unrealized gains and losses on derivative transactions as adjustments to cash flows from operating activities on our consolidated statements of cash flows. | ||
We recognized the derivatives on our consolidated balance sheets at their fair value. We estimated the fair value of our derivatives using industry standard valuation models. | ||
Our previously held derivatives were formally documented and designated as cash flow hedges or hedges that did not qualify as a cash flow or fair value hedge. We recorded the effective portion of the changes in the fair value of a derivative that was highly effective and was qualified and designated as a cash flow hedge in accumulated other comprehensive income or loss, net of tax, until earnings were affected by the variability of cash flows of the hedged transaction. We recorded changes in the fair value of a derivative that did not qualify as either a cash flow or fair value hedge and changes in the fair value of hedging instruments measured as ineffectiveness in current period earnings in other revenues. We included all components of each derivative’s gain or loss in the assessment of hedge effectiveness. | ||
We discontinued hedge accounting prospectively when: | ||
• | the derivative was no longer effective in offsetting changes in the cash flows or fair value of a hedged item; | |
• | we sold, terminated, or exercised the derivative and/or the hedged item or they expired; or | |
• | we changed our objectives or strategies and designating the derivative as a hedging instrument was no longer appropriate. | |
For cash flow hedges that were discontinued for reasons other than the forecasted transaction is not probable of occurring, we began reclassifying the accumulated other comprehensive income or loss adjustment to earnings when earnings were affected by the hedged item. | ||
For cash flows from derivatives that are a part of fair value hedges or cash flow hedges, we classify the cash flows in the same category as cash flows related to the hedged item within the consolidated statements of cash flows. | ||
In compliance with the authoritative guidance for fair value measurements, our valuation methodology for derivatives incorporated the effect of our non-performance risk and the non-performance risk of our counterparties. Effective January 1, 2012, we made an accounting policy election to continue to measure the credit risk of our derivative financial instruments that were subject to master netting agreements on a net basis by counterparty portfolio in compliance with the new authoritative guidance for fair value measurements. | ||
Benefit Plans | Benefit Plans | |
We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. | ||
Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. | ||
Share-based Compensation Plans | Share-based Compensation Plans | |
We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. | ||
Fair Value Measurements | Fair Value Measurements | |
Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. | ||
Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. | ||
We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. | ||
We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. | ||
Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24. | ||
In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. | ||
We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. | ||
Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. | ||
Transactions with Affiliates of Fortress or AIG and Related Party Transactions | Transactions with Affiliates of Fortress or AIG | |
We may enter into transactions with affiliates of Fortress or AIG. These transactions occur at prevailing market rates and terms and primarily include subservicing and refinancing agreements, reinsurance agreements, and derivative transactions. See Note 9 for further information on our transactions with affiliates of Fortress and AIG. | ||
Related Party Transactions | ||
In the normal course of business, we may enter into transactions with SFI or affiliates of SFI (other than affiliates of Fortress or AIG). These transactions occur at prevailing market rates and terms and primarily include affiliate lending and capital contributions. See Note 10 for further information on our related party transactions. | ||
New Accounting Pronouncements | Troubled Debt Restructurings | |
In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in substance repossession or foreclosure occurs — that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU requires a creditor to reclassify a collateralized consumer mortgage loan to real estate property upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. We evaluated the potential impact of adopting this ASU and concluded that it will not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | ||
Revenue from Contracts | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a consistent revenue accounting model across industries. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Many of our revenue sources are not within the scope of this new standard and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | ||
Going Concern | ||
In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern for each annual and interim reporting period, and disclose in its financial statements whether there is substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. The new standard can also be early adopted. Upon adoption, we will perform the going concern assessment in accordance with the requirements of the new ASU. | ||
Derivatives and Hedging - Hybrid Financial Instruments | ||
In November 2014, the FASB issued ASU 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share is More Akin to Debt or to Equity, requiring all entities to use the whole instrument approach to determine whether the nature of the host contract in a hybrid instrument issued in the form of a share is more akin to debt or to equity. Under this approach, an issuer or investor considers all stated and implied substantive terms and features of a hybrid instrument when determining the nature of the host contract. The ASU clarifies that the existence or omission of any single feature does not determine the economic characteristics and risks of the host contract and that the presence of an investor-held, fixed price, noncontingent redemption option is not determinative. This guidance applies to both public and nonpublic entities that issue or invest in hybrid instruments issued in the form of shares, and is effective for public entities with fiscal years beginning after December 15, 2014 and nonpublic entities with fiscal years beginning after December 15, 2015. The Company has not issued any hybrid instruments in the form of shares. | ||
Pushdown Accounting | ||
In November 2014, the FASB issued ASU 2014-17, Pushdown Accounting, which gives all companies the option to apply pushdown accounting when they are acquired by another party. The ASU provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. Concurrently, the SEC eliminated its guidance which had required or precluded pushdown accounting for registrants generally based on the percentage of ownership. These developments make pushdown accounting optional for all companies effective immediately. This ASU will be applicable to any entity acquired by the Company. | ||
Consolidation | ||
In February 2015, the FASB issued ASU 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreaker in their consolidation analysis and disclosures. The standard is effective for public business entities for annual periods beginning after December 15, 2015. Early adoption is allowed, including in any interim period. We will evaluate whether the adoption of this ASU will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. |
Finance_Receivables_Tables
Finance Receivables (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Schedule of components of net finance receivables by type | Components of net finance receivables by type were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Gross receivables * | $ | 4,462,123 | $ | 1,941,334 | $ | 621,105 | $ | 52,266 | $ | 7,076,828 | |||||||||||
Unearned finance charges and points and fees | (764,473 | ) | — | (1,173 | ) | (4,965 | ) | (770,611 | ) | ||||||||||||
Accrued finance charges | 58,102 | 37,856 | 5,328 | 404 | 101,690 | ||||||||||||||||
Deferred origination costs | 44,036 | — | 75 | — | 44,111 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
December 31, 2013 | |||||||||||||||||||||
Gross receivables * | $ | 3,632,462 | $ | — | $ | 7,843,787 | $ | 108,457 | $ | 11,584,706 | |||||||||||
Unearned finance charges and points and fees | (559,902 | ) | — | (1,208 | ) | (10,444 | ) | (571,554 | ) | ||||||||||||
Accrued finance charges | 48,008 | — | 42,163 | 898 | 91,069 | ||||||||||||||||
Deferred origination costs | 39,364 | — | 274 | — | 39,638 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value; | ||||||||||||||||||||
• | finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||||||||
• | purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. | ||||||||||||||||||||
Schedule of maturities of net finance receivables by type | Maturities of net finance receivables by type at December 31, 2014 were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
2015 | $ | 933,835 | $ | 110,456 | $ | 3,887 | $ | 11,313 | $ | 1,059,491 | |||||||||||
2016 | 1,242,892 | 150,021 | 8,014 | 13,089 | 1,414,016 | ||||||||||||||||
2017 | 973,933 | 160,995 | 14,044 | 8,535 | 1,157,507 | ||||||||||||||||
2018 | 500,851 | 173,872 | 17,049 | 4,880 | 696,652 | ||||||||||||||||
2019 | 103,485 | 184,577 | 17,100 | 2,554 | 307,716 | ||||||||||||||||
2020+ | 44,792 | 1,199,269 | 565,241 | 7,334 | 1,816,636 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
Schedule of unused credit lines extended to customers by the Company | Unused lines of credit extended to customers by the Company were as follows: | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||
Personal loans | $ | 1,471 | $ | 4,996 | |||||||||||||||||
SpringCastle Portfolio | 353,650 | — | |||||||||||||||||||
Real estate loans | 30,646 | 32,338 | |||||||||||||||||||
Total | $ | 385,767 | $ | 37,334 | |||||||||||||||||
Schedule of largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: | ||||||||||||||||||||
December 31, | 2014 | 2013 * | |||||||||||||||||||
(dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||
North Carolina | $ | 634,197 | 10 | % | $ | 800,491 | 7 | % | |||||||||||||
California | 533,073 | 8 | 1,091,734 | 10 | |||||||||||||||||
Illinois | 411,740 | 6 | 605,565 | 5 | |||||||||||||||||
Pennsylvania | 388,024 | 6 | 527,225 | 5 | |||||||||||||||||
Ohio | 387,657 | 6 | 652,540 | 6 | |||||||||||||||||
Virginia | 348,644 | 5 | 683,241 | 6 | |||||||||||||||||
Indiana | 344,329 | 5 | 432,235 | 4 | |||||||||||||||||
Florida | 327,719 | 5 | 716,802 | 6 | |||||||||||||||||
Other | 3,076,635 | 49 | 5,634,025 | 51 | |||||||||||||||||
Total | $ | 6,452,018 | 100 | % | $ | 11,143,858 | 100 | % | |||||||||||||
* | December 31, 2013 concentrations of net finance receivables are presented in the order of December 31, 2014 state concentrations. | ||||||||||||||||||||
Summary of net finance receivables by type by days delinquent | The following is a summary of net finance receivables by type and by days delinquent: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 36,836 | $ | 30,680 | $ | 12,039 | $ | 543 | $ | 80,098 | |||||||||||
90-119 days past due | 29,332 | 18,988 | 9,039 | 471 | 57,830 | ||||||||||||||||
120-149 days past due | 24,200 | 15,689 | 5,516 | 501 | 45,906 | ||||||||||||||||
150-179 days past due | 20,518 | 14,172 | 3,573 | 308 | 38,571 | ||||||||||||||||
180 days or more past due | 1,697 | 2,248 | 12,034 | 25 | 16,004 | ||||||||||||||||
Total delinquent finance receivables | 112,583 | 81,777 | 42,201 | 1,848 | 238,409 | ||||||||||||||||
Current | 3,631,891 | 1,839,595 | 564,961 | 44,846 | 6,081,293 | ||||||||||||||||
30-59 days past due | 55,314 | 57,818 | 18,173 | 1,011 | 132,316 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 28,297 | $ | — | $ | 96,778 | $ | 1,290 | $ | 126,365 | |||||||||||
90-119 days past due | 22,648 | — | 67,966 | 1,017 | 91,631 | ||||||||||||||||
120-149 days past due | 18,662 | — | 54,882 | 757 | 74,301 | ||||||||||||||||
150-179 days past due | 14,618 | — | 45,040 | 740 | 60,398 | ||||||||||||||||
180 days or more past due | 934 | — | 353,003 | 173 | 354,110 | ||||||||||||||||
Total delinquent finance receivables | 85,159 | — | 617,669 | 3,977 | 706,805 | ||||||||||||||||
Current | 3,027,460 | — | 7,092,107 | 92,093 | 10,211,660 | ||||||||||||||||
30-59 days past due | 47,313 | — | 175,240 | 2,841 | 225,394 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Schedule of performing and nonperforming net finance receivables by type | Our performing and nonperforming net finance receivables by type were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Performing | $ | 3,724,041 | $ | 1,928,093 | $ | 595,173 | $ | 46,400 | $ | 6,293,707 | |||||||||||
Nonperforming | 75,747 | 51,097 | 30,162 | 1,305 | 158,311 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Performing | $ | 3,103,070 | $ | — | $ | 7,364,125 | $ | 96,224 | $ | 10,563,419 | |||||||||||
Nonperforming | 56,862 | — | 520,891 | 2,687 | 580,440 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Schedule of information regarding purchased credit impaired finance receivables | Information regarding these purchased credit impaired finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 339,795 | $ | 92,794 | $ | 432,589 | |||||||||||||||
Outstanding balance (b) | 628,091 | 150,983 | 779,074 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 4,534 | 4,534 | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying amount, net of allowance | $ | — | $ | 1,250,621 | $ | 1,250,621 | |||||||||||||||
Outstanding balance | — | 1,782,271 | 1,782,271 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 57,261 | 57,261 | ||||||||||||||||||
(a) | The carrying amount of purchased credit impaired FA Loans at December 31, 2014 includes $67.5 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
(b) | The outstanding balance of purchased credit impaired FA Loans at December 31, 2014 includes $99.3 million of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
Schedule of changes in accretable yield for purchased credit impaired finance receivables | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in thousands) | SCP Loans | FA Loans | Total | ||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | — | 766,927 | 766,927 | ||||||||||||||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | — | 259,944 | ||||||||||||||||||
Accretion (b) | (36,707 | ) | (79,876 | ) | (116,583 | ) | |||||||||||||||
Reclassifications from nonaccretable difference (d) | 331,712 | (617 | ) | 331,095 | |||||||||||||||||
Transfers due to finance receivables sold | — | (651,108 | ) | (651,108 | ) | ||||||||||||||||
Disposals of finance receivables (c) | (14,128 | ) | (15,893 | ) | (30,021 | ) | |||||||||||||||
Balance at end of period | $ | 540,821 | $ | 19,433 | $ | 560,254 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
Accretion | — | (128,167 | ) | (128,167 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 303,328 | 303,328 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (33,113 | ) | (33,113 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 766,927 | $ | 766,927 | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 464,415 | $ | 464,415 | |||||||||||||||
Accretion | — | (131,442 | ) | (131,442 | ) | ||||||||||||||||
Reclassifications from nonaccretable difference (d) | — | 318,333 | 318,333 | ||||||||||||||||||
Disposals of finance receivables (c) | — | (26,427 | ) | (26,427 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 624,879 | $ | 624,879 | |||||||||||||||
(a) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(b) | Accretion on our purchased credit impaired FA Loans for 2014 includes $14.0 million of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | ||||||||||||||||||||
(c) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. | ||||||||||||||||||||
(d) | Reclassifications from nonaccretable difference represent the increases in accretion resulting from higher estimated undiscounted cash flows. | ||||||||||||||||||||
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 22,441 | $ | 11,107 | $ | 195,602 | $ | 229,150 | |||||||||||||
TDR net finance receivables (c) | 22,021 | 9,905 | 196,366 | 228,292 | |||||||||||||||||
Allowance for TDR finance receivable losses | 1,522 | 2,673 | 31,869 | 36,064 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR gross finance receivables (a) | $ | 14,999 | $ | — | $ | 1,366,346 | $ | 1,381,345 | |||||||||||||
TDR net finance receivables | 14,718 | — | 1,371,321 | 1,386,039 | |||||||||||||||||
Allowance for TDR finance receivable losses | 923 | — | 177,011 | 177,934 | |||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
(b) | TDR real estate loan gross finance receivables at December 31, 2014 include $90.8 million of TDR finance receivables held for sale. | ||||||||||||||||||||
(c) | TDR real estate loan net finance receivables at December 31, 2014 include $91.1 million of TDR finance receivables held for sale. | ||||||||||||||||||||
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR average net receivables (a) | $ | 16,459 | $ | 5,178 | $ | 950,966 | $ | 972,603 | |||||||||||||
TDR finance charges recognized (b) | 1,823 | 594 | 47,572 | 49,989 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR average net receivables | $ | 14,603 | $ | — | $ | 1,116,386 | $ | 1,130,989 | |||||||||||||
TDR finance charges recognized | 1,228 | — | 62,929 | 64,157 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
TDR average net receivables | $ | 13,261 | $ | — | $ | 567,726 | $ | 580,987 | |||||||||||||
TDR finance charges recognized | 1,212 | — | 31,076 | 32,288 | |||||||||||||||||
(a) | TDR real estate loan average net receivables for 2014 include $248.1 million of TDR average net receivables held for sale, which reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | ||||||||||||||||||||
(b) | TDR real estate loan finance charges recognized for 2014 include $4.5 million of interest income on TDR finance receivables held for sale. | ||||||||||||||||||||
Schedule of information regarding new volume of the TDR finance receivables | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Pre-modification TDR net finance receivables (a) | $ | 17,595 | $ | 10,363 | $ | 213,350 | $ | 241,308 | |||||||||||||
Post-modification TDR net finance receivables (a) | $ | 16,108 | $ | 10,258 | $ | 203,295 | $ | 229,661 | |||||||||||||
Number of TDR accounts (b) | 4,206 | 1,155 | 2,374 | 7,735 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 14,506 | $ | — | $ | 573,430 | $ | 587,936 | |||||||||||||
Post-modification TDR net finance receivables | $ | 12,388 | $ | — | $ | 593,473 | $ | 605,861 | |||||||||||||
Number of TDR accounts | 3,240 | — | 7,085 | 10,325 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 18,225 | $ | — | $ | 548,791 | $ | 567,016 | |||||||||||||
Post-modification TDR net finance receivables | $ | 15,536 | $ | — | $ | 557,260 | $ | 572,796 | |||||||||||||
Number of TDR accounts | 5,639 | — | 5,695 | 11,334 | |||||||||||||||||
(a) | TDR real estate loan net finance receivables for 2014 include $6.2 million of pre-modification and $6.7 million of post-modification TDR net finance receivables held for sale. | ||||||||||||||||||||
(b) | Number of new TDR real estate loan accounts for 2014 includes 94 new TDR accounts that were held for sale. | ||||||||||||||||||||
Schedule of net finance receivables that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause TDR finance receivables to be considered nonperforming | Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming (90 days or more past due) were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR net finance receivables (a) (b) | $ | 499 | $ | 566 | $ | 33,349 | $ | 34,414 | |||||||||||||
Number of TDR accounts (b) | 141 | 53 | 524 | 718 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
TDR net finance receivables (a) | $ | 1,294 | $ | — | $ | 68,811 | $ | 70,105 | |||||||||||||
Number of TDR accounts | 355 | — | 928 | 1,283 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
TDR net finance receivables (a) | $ | 1,154 | $ | — | $ | 66,096 | $ | 67,250 | |||||||||||||
Number of TDR accounts | 438 | — | 594 | 1,032 | |||||||||||||||||
(a) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | ||||||||||||||||||||
(b) | TDR real estate loan net finance receivables for 2014 that defaulted during the previous 12 month period include 49 TDR accounts that were held for sale totaling $2.7 million. |
Allowance_for_Finance_Receivab1
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Consolidated Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Provision for finance receivable losses | 202,735 | 48,968 | 113,000 | 2,855 | 367,558 | ||||||||||||||||
Charge-offs (a) | (191,817 | ) | (51,763 | ) | (75,936 | ) | (5,309 | ) | (324,825 | ) | |||||||||||
Recoveries (b) | 25,288 | 4,862 | 6,801 | 1,360 | 38,311 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (c) | — | — | (239,726 | ) | — | (239,726 | ) | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC (d) | — | 710 | — | — | 710 | ||||||||||||||||
Balance at end of period | $ | 130,529 | $ | 2,777 | $ | 40,171 | $ | 746 | $ | 174,223 | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
Provision for finance receivable losses | 129,839 | — | 264,677 | (1,002 | ) | 393,514 | |||||||||||||||
Charge-offs (e) | (148,980 | ) | — | (158,392 | ) | (9,500 | ) | (316,872 | ) | ||||||||||||
Recoveries (f) | 47,636 | — | 15,886 | 10,082 | 73,604 | ||||||||||||||||
Transfers to finance receivables held for sale (g) | (752 | ) | — | — | — | (752 | ) | ||||||||||||||
Balance at end of period | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | 39,522 | $ | — | $ | 28,790 | $ | 1,007 | $ | 69,319 | |||||||||||
Provision for finance receivable losses | 114,288 | — | 215,613 | 11,061 | 340,962 | ||||||||||||||||
Charge-offs | (119,383 | ) | — | (139,980 | ) | (20,035 | ) | (279,398 | ) | ||||||||||||
Recoveries | 33,260 | — | 9,438 | 10,421 | 53,119 | ||||||||||||||||
Transfers to finance receivables held for sale (h) | (1,107 | ) | — | — | (194 | ) | (1,301 | ) | |||||||||||||
Balance at end of period | $ | 66,580 | $ | — | $ | 113,861 | $ | 2,260 | $ | 182,701 | |||||||||||
(a) | Charge-offs during 2014 included a $4.4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. | ||||||||||||||||||||
(b) | Recoveries during 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | ||||||||||||||||||||
(c) | During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(d) | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | ||||||||||||||||||||
(e) | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | ||||||||||||||||||||
(f) | Recoveries in 2013 included $37.2 million ($22.7 million of personal loan recoveries, $9.1 million of real estate loan recoveries, and $5.4 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4.0 million adjustment for the subsequent buyback of certain finance receivables. | ||||||||||||||||||||
(g) | During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18.0 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
(h) | During the first quarter of 2012, we decreased the allowance for finance receivable losses as a result of the transfers of $77.8 million of finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $71.7 million at December 31, 2014 and $153.1 million at December 31, 2013. See Note 12 for further discussion regarding our securitization trans | |||||||||||||||||||||
Schedule of carrying amount charged-off for purchased credit impaired loans | The carrying value charged-off for purchased credit impaired loans was as follows: | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Real estate loans | |||||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 13,156 | $ | — | $ | — | |||||||||||||||
FA Loans gross charge-offs * | 15,331 | 41,358 | 38,271 | ||||||||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | ||||||||||||||||||||
(dollars in thousands) | Personal Loans | SpringCastle Portfolio | Real | Retail | Total | ||||||||||||||||
Estate Loans | Sales Finance | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129,007 | $ | 104 | $ | 3,768 | $ | 746 | $ | 133,625 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 4,534 | — | 4,534 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | 1,522 | 2,673 | 31,869 | — | 36,064 | ||||||||||||||||
Total | $ | 130,529 | $ | 2,777 | $ | 40,171 | $ | 746 | $ | 174,223 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,777,767 | $ | 1,629,490 | $ | 490,235 | $ | 47,705 | $ | 5,945,197 | |||||||||||
Purchased credit impaired finance receivables | — | 339,795 | 29,827 | — | 369,622 | ||||||||||||||||
TDR finance receivables | 22,021 | 9,905 | 105,273 | — | 137,199 | ||||||||||||||||
Total | $ | 3,799,788 | $ | 1,979,190 | $ | 625,335 | $ | 47,705 | $ | 6,452,018 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 93,400 | $ | — | $ | 1,760 | $ | 1,840 | $ | 97,000 | |||||||||||
Purchased credit impaired finance receivables | — | — | 57,261 | — | 57,261 | ||||||||||||||||
TDR finance receivables | 923 | — | 177,011 | — | 177,934 | ||||||||||||||||
Total | $ | 94,323 | $ | — | $ | 236,032 | $ | 1,840 | $ | 332,195 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,145,214 | $ | — | $ | 5,205,813 | $ | 98,911 | $ | 8,449,938 | |||||||||||
Purchased credit impaired finance receivables | — | — | 1,307,882 | — | 1,307,882 | ||||||||||||||||
TDR finance receivables | 14,718 | — | 1,371,321 | — | 1,386,039 | ||||||||||||||||
Total | $ | 3,159,932 | $ | — | $ | 7,885,016 | $ | 98,911 | $ | 11,143,859 | |||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | Cost/ | Unrealized Gains | Unrealized Losses | Fair | |||||||||||||||||||||
Amortized Cost | Value | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 60,704 | $ | 2,638 | $ | (11 | ) | $ | 63,331 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 99,228 | 2,558 | (103 | ) | 101,683 | ||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1,125 | — | — | 1,125 | |||||||||||||||||||||
Corporate debt | 256,049 | 11,833 | (954 | ) | 266,928 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 70,514 | 2,470 | (27 | ) | 72,957 | ||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 24,610 | 72 | (253 | ) | 24,429 | ||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 61,334 | 33 | (117 | ) | 61,250 | ||||||||||||||||||||
Total | 573,564 | 19,604 | (1,465 | ) | 591,703 | ||||||||||||||||||||
Preferred stock | 7,163 | 83 | (152 | ) | 7,094 | ||||||||||||||||||||
Other long-term investments (b) | 1,305 | 44 | (6 | ) | 1,343 | ||||||||||||||||||||
Common stocks (c) | 674 | — | — | 674 | |||||||||||||||||||||
Total | $ | 582,706 | $ | 19,731 | $ | (1,623 | ) | $ | 600,814 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 58,748 | $ | 565 | $ | (680 | ) | $ | 58,633 | ||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 101,118 | 1,703 | (76 | ) | 102,745 | ||||||||||||||||||||
Corporate debt | 233,977 | 6,126 | (2,187 | ) | 237,916 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 81,259 | 1,923 | (559 | ) | 82,623 | ||||||||||||||||||||
CMBS | 7,487 | 76 | (16 | ) | 7,547 | ||||||||||||||||||||
CDO/ABS | 3,981 | 19 | (24 | ) | 3,976 | ||||||||||||||||||||
Total | 486,570 | 10,412 | (3,542 | ) | 493,440 | ||||||||||||||||||||
Preferred stock | 7,844 | — | (39 | ) | 7,805 | ||||||||||||||||||||
Other long-term investments (b) | 1,394 | — | (125 | ) | 1,269 | ||||||||||||||||||||
Common stocks (c) | 850 | — | — | 850 | |||||||||||||||||||||
Total | $ | 496,658 | $ | 10,412 | $ | (3,706 | ) | $ | 503,364 | ||||||||||||||||
(a) | Includes certificates of deposit totaling $1.0 million pledged as collateral, primarily to support bank lines of credit. | ||||||||||||||||||||||||
(b) | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at December 31, 2014 and $0.6 million at December 31, 2013). | ||||||||||||||||||||||||
(c) | Consists of Federal Home Loan Bank common stock, which is classified as a restricted investment and carried at cost. | ||||||||||||||||||||||||
Schedule of fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in thousands) | Fair | Unrealized Losses | Fair | Unrealized Losses | Fair | Unrealized Losses | |||||||||||||||||||
Value | Value | Value | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | — | $ | — | $ | 970 | $ | (11 | ) | $ | 970 | $ | (11 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 27,395 | (100 | ) | 624 | (3 | ) | 28,019 | (103 | ) | ||||||||||||||||
Corporate debt | 35,558 | (828 | ) | 6,119 | (126 | ) | 41,677 | (954 | ) | ||||||||||||||||
RMBS | 8,591 | (27 | ) | — | — | 8,591 | (27 | ) | |||||||||||||||||
CMBS | 16,426 | (178 | ) | 2,034 | (75 | ) | 18,460 | (253 | ) | ||||||||||||||||
CDO/ABS | 46,113 | (117 | ) | — | — | 46,113 | (117 | ) | |||||||||||||||||
Total | 134,083 | (1,250 | ) | 9,747 | (215 | ) | 143,830 | (1,465 | ) | ||||||||||||||||
Preferred stock | 6,071 | (152 | ) | — | — | 6,071 | (152 | ) | |||||||||||||||||
Other long-term investments | — | — | 105 | (6 | ) | 105 | (6 | ) | |||||||||||||||||
Total | $ | 140,154 | $ | (1,402 | ) | $ | 9,852 | $ | (221 | ) | $ | 150,006 | $ | (1,623 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 44,314 | $ | (680 | ) | $ | — | $ | — | $ | 44,314 | $ | (680 | ) | |||||||||||
Obligations of states, municipalities, and political subdivisions | 14,220 | (76 | ) | — | — | 14,220 | (76 | ) | |||||||||||||||||
Corporate debt | 65,809 | (1,535 | ) | 11,772 | (652 | ) | 77,581 | (2,187 | ) | ||||||||||||||||
RMBS | 18,288 | (559 | ) | — | — | 18,288 | (559 | ) | |||||||||||||||||
CMBS | 2,993 | (16 | ) | — | — | 2,993 | (16 | ) | |||||||||||||||||
CDO/ABS | 2,658 | (24 | ) | — | — | 2,658 | (24 | ) | |||||||||||||||||
Total | 148,282 | (2,890 | ) | 11,772 | (652 | ) | 160,054 | (3,542 | ) | ||||||||||||||||
Preferred stock | 7,805 | (39 | ) | — | — | 7,805 | (39 | ) | |||||||||||||||||
Other long-term investments | 1,269 | (125 | ) | — | — | 1,269 | (125 | ) | |||||||||||||||||
Total | $ | 157,356 | $ | (3,054 | ) | $ | 11,772 | $ | (652 | ) | $ | 169,128 | $ | (3,706 | ) | ||||||||||
Schedule of changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Balance at beginning of period | $ | 1,523 | $ | 1,650 | $ | 3,725 | |||||||||||||||||||
Additions: | |||||||||||||||||||||||||
Due to other-than-temporary impairments: | |||||||||||||||||||||||||
Impairment previously recognized | — | 26 | 924 | ||||||||||||||||||||||
Reductions: | |||||||||||||||||||||||||
Realized due to dispositions with no prior intention to sell | (205 | ) | (153 | ) | (2,999 | ) | |||||||||||||||||||
Balance at end of period | $ | 1,318 | $ | 1,523 | $ | 1,650 | |||||||||||||||||||
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2014 were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | Fair | Amortized | |||||||||||||||||||||||
Value | Cost | ||||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 32,646 | $ | 32,188 | |||||||||||||||||||||
Due after 1 year through 5 years | 179,521 | 176,060 | |||||||||||||||||||||||
Due after 5 years through 10 years | 80,242 | 77,809 | |||||||||||||||||||||||
Due after 10 years | 140,658 | 131,049 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 158,636 | 156,458 | |||||||||||||||||||||||
Total | $ | 591,703 | $ | 573,564 | |||||||||||||||||||||
Schedule of fair value of trading securities by type | The fair value of trading securities by type was as follows: | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 302,084 | $ | — | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 13,788 | — | |||||||||||||||||||||||
Certificates of deposit and commercial paper | 237,637 | — | |||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 19,613 | — | |||||||||||||||||||||||
Corporate debt | 1,055,682 | 1,837 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 35,491 | 10,671 | |||||||||||||||||||||||
CMBS | 148,880 | 29,897 | |||||||||||||||||||||||
CDO/ABS | 507,342 | 9,249 | |||||||||||||||||||||||
Total | $ | 2,320,517 | $ | 51,654 | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities | The fair values of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Fair value | $ | 260,418 | $ | 253,705 | $ | 107,654 | |||||||||||||||||||
Realized gains | $ | 8,946 | $ | 4,176 | $ | 1,546 | |||||||||||||||||||
Realized losses | (1,131 | ) | (2,002 | ) | (1,222 | ) | |||||||||||||||||||
Net realized gains | $ | 7,815 | $ | 2,174 | $ | 324 | |||||||||||||||||||
Trading securities | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of net unrealized and realized gains (losses) on trading securities | The net unrealized and realized gains (losses) on our trading securities, which we report in investment revenues, were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net unrealized gains (losses) on trading securities held at year end | $ | (9,202 | ) | $ | (476 | ) | $ | 3,344 | |||||||||||||||||
Net realized gains on trading securities sold or redeemed during the year | 4,845 | 214 | 239 | ||||||||||||||||||||||
Total | $ | (4,357 | ) | $ | (262 | ) | $ | 3,583 | |||||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Other Assets [Abstract] | |||||||||||||
Schedule of components of other assets | Components of other assets were as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Current tax receivable (a) | $ | 104,723 | $ | 28,496 | |||||||||
Other investments (b) | 103,546 | 109,465 | |||||||||||
Receivables related to sales of real estate loans and related trust assets (c) | 78,747 | — | |||||||||||
Fixed assets, net (d) | 73,440 | 70,031 | |||||||||||
Prepaid expenses and deferred charges | 51,869 | 64,466 | |||||||||||
Ceded insurance reserves | 21,965 | 21,655 | |||||||||||
Other intangible assets, net | 19,597 | 23,952 | |||||||||||
Real estate owned | 13,295 | 48,498 | |||||||||||
Receivables from parent and affiliates | 11,563 | 39,364 | |||||||||||
Escrow advance receivable | 8,069 | 23,527 | |||||||||||
Other | 16,033 | 33,722 | |||||||||||
Total | $ | 502,847 | $ | 463,176 | |||||||||
(a) | Current tax receivable includes current federal and state tax assets. | ||||||||||||
(b) | Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. | ||||||||||||
(c) | Receivables related to sales of real estate loans and related trust assets includes 64.4 million of holdback provisions on the real estate loan sales as disclosed in Note 1. | ||||||||||||
(d) | Fixed assets were net of accumulated depreciation of $167.5 million at December 31, 2014 and $154.5 million at December 31, 2013. | ||||||||||||
Schedule of gross carrying amount and accumulated amortization, in total and by major intangible asset class | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: | ||||||||||||
(dollars in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Other Intangible Assets | ||||||||||
31-Dec-14 | |||||||||||||
Value of business acquired (“VOBA”) | $ | 35,778 | $ | (31,799 | ) | $ | 3,979 | ||||||
Customer relationships | 17,879 | (14,847 | ) | 3,032 | |||||||||
Licenses | 11,575 | — | 11,575 | ||||||||||
Customer lists | 9,695 | (8,684 | ) | 1,011 | |||||||||
Total | $ | 74,927 | $ | (55,330 | ) | $ | 19,597 | ||||||
31-Dec-13 | |||||||||||||
VOBA | $ | 35,778 | $ | (31,260 | ) | $ | 4,518 | ||||||
Customer relationships | 17,879 | (11,559 | ) | 6,320 | |||||||||
Licenses | 11,575 | — | 11,575 | ||||||||||
Customer lists | 9,695 | (8,156 | ) | 1,539 | |||||||||
Total | $ | 74,927 | $ | (50,975 | ) | $ | 23,952 | ||||||
Schedule of estimated aggregate amortization of other intangible assets | The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. | ||||||||||||
(dollars in thousands) | Estimated Aggregate Amortization Expense | ||||||||||||
2015 | $ | 3,931 | |||||||||||
2016 | 768 | ||||||||||||
2017 | 213 | ||||||||||||
2018 | 167 | ||||||||||||
2019 | 161 | ||||||||||||
Transactions_with_Affiliates_o1
Transactions with Affiliates of Fortress or AIG (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |||||||||||||
Schedule of subservicing fees and refinancing concessions | The Owners paid Nationstar fees for its subservicing and to facilitate the repayment of our real estate loans through refinancings with other lenders as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Subservicing fees | $ | 5,312 | $ | 8,544 | $ | 9,843 | |||||||
Refinancing concessions | — | 291 | 4,420 | ||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Schedule of carrying value and fair value of long-term debt by type | Carrying value and fair value of long-term debt by type were as follows: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
(dollars in thousands) | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Senior debt | $ | 8,213,287 | $ | 8,920,140 | $ | 10,469,141 | $ | 11,482,576 | |||||||||||||
Junior subordinated debt | 171,623 | 261,625 | 171,587 | 294,000 | |||||||||||||||||
Total | $ | 8,384,910 | $ | 9,181,765 | $ | 10,640,728 | $ | 11,776,576 | |||||||||||||
Schedule of weighted average interest rates on long-term debt by type | Weighted average interest rates on long-term debt by type were as follows: | ||||||||||||||||||||
Years Ended December 31, | At December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||
Senior debt | 7.1 | % | 7.06 | % | 8.24 | % | 7.16 | % | 6.76 | % | |||||||||||
Junior subordinated debt | 12.26 | 12.26 | 12.26 | 12.26 | 12.26 | ||||||||||||||||
Total | 7.19 | 7.14 | 8.29 | 7.26 | 6.84 | ||||||||||||||||
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at December 31, 2014 were as follows: | ||||||||||||||||||||
(dollars in thousands) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes (a) | Debt | ||||||||||||||||||||
Interest rates (b) | 6.00%-7.50% | 5.25%-8.25% | 1.79%-6.82% | 6 | % | ||||||||||||||||
First quarter 2015 | $ | 16,575 | $ | — | $ | — | $ | — | $ | 16,575 | |||||||||||
Second quarter 2015 | 7,092 | — | — | — | 7,092 | ||||||||||||||||
Third quarter 2015 | 23,544 | — | — | — | 23,544 | ||||||||||||||||
Fourth quarter 2015 | — | 750,000 | — | — | 750,000 | ||||||||||||||||
2015 | 47,211 | 750,000 | — | — | 797,211 | ||||||||||||||||
2016 | — | 375,000 | — | — | 375,000 | ||||||||||||||||
2017 | — | 1,902,321 | — | — | 1,902,321 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019 | — | 700,000 | — | — | 700,000 | ||||||||||||||||
2020-2067 | — | 1,250,000 | — | 350,000 | 1,600,000 | ||||||||||||||||
Securitizations (c) | — | — | 3,646,596 | — | 3,646,596 | ||||||||||||||||
Total principal maturities | $ | 47,211 | $ | 4,977,321 | $ | 3,646,596 | $ | 350,000 | $ | 9,021,128 | |||||||||||
Total carrying amount (d) | $ | 46,469 | $ | 4,522,862 | $ | 3,643,956 | $ | 171,623 | $ | 8,384,910 | |||||||||||
(a) | Medium term notes included $700 million aggregate principal amount of 5.25% Senior Notes due 2019, which were issued in December 2014, and reflects the related repurchases of $459 million aggregate principal amount of medium term notes due 2017 as discussed below under the caption “Repurchase or Repayment of Debt” in this note. | ||||||||||||||||||||
(b) | The interest rates shown are the range of contractual rates in effect at December 31, 2014. | ||||||||||||||||||||
(c) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 12 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(d) | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Variable Interest Entities | |||||||||
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: | ||||||||
(dollars in thousands) | |||||||||
December 31, | 2014 | 2013 | |||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 1,852,989 | $ | 1,572,070 | |||||
SpringCastle Portfolio * | 1,979,190 | — | |||||||
Real estate loans | — | 5,595,150 | |||||||
Allowance for finance receivable losses | 71,668 | 153,084 | |||||||
Restricted cash and cash equivalents | 210,337 | 345,906 | |||||||
Liabilities | |||||||||
Long-term debt * | $ | 3,643,956 | $ | 5,160,227 | |||||
* | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. | ||||||||
Schedule of Variable Interest Entities Sale of Previously Retained Mortgage Backed Securities and Asset Backed Securities [Table Text Block] | During 2013, we sold the following previously retained mortgage-backed and asset-backed notes: | ||||||||
(dollars in thousands) | Principal Amount | Carrying Amount | |||||||
of Previously Retained | of Additional | ||||||||
Notes Issued | Debt Recorded | ||||||||
Mortgage Securitizations | |||||||||
SLFMT 2012-2 | $ | 20,000 | $ | 20,675 | |||||
SLFMT 2012-3 | 7,500 | 7,753 | |||||||
SLFMT 2013-2 | 157,517 | 148,559 | |||||||
SLFMT 2013-3 | 22,517 | 22,623 | |||||||
Consumer Securitizations | |||||||||
SLFMT 2013-B | $ | 114,000 | $ | 111,578 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Schedule of changes in the notional amounts of cross currency interest rate swap agreements and foreign currency forward agreement | Changes in the notional amounts of our cross currency interest rate swap agreements were as follows: | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
At or for the Years Ended December 31, | 2013 | 2012 | |||||||||||||||||||
Balance at beginning of period | $ | 416,636 | $ | 1,269,500 | |||||||||||||||||
Expired contracts | — | — | |||||||||||||||||||
Discontinued and terminated contracts | (416,636 | ) | (852,864 | ) | |||||||||||||||||
Balance at end of period | $ | — | $ | 416,636 | |||||||||||||||||
Schedule of amount of gain (loss) for cash flow hedges recognized in accumulated other comprehensive income or loss, reclassified from accumulated other comprehensive income or loss into other revenues (effective portion), and recognized in other revenues (ineffective portion) | The amount of gain (loss) for cash flow hedges recognized in accumulated other comprehensive income or loss, reclassified from accumulated other comprehensive income or loss into other revenues — other (effective portion) and interest expense (effective portion), and recognized in other revenues — other (ineffective portion) were as follows: | ||||||||||||||||||||
From AOCI(L) (a) to | Recognized in Other Revenues - Other | ||||||||||||||||||||
(dollars in thousands) | AOCI(L) | Other Revenues - Other | Interest Expense | Earnings (b) | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Cross currency interest rate | $ | — | $ | — | $ | 160 | $ | 160 | $ | — | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Cross currency interest rate | $ | (16,987 | ) | $ | (12,343 | ) | $ | 1,839 | $ | (10,504 | ) | $ | (426 | ) | |||||||
(a) | Accumulated other comprehensive income (loss). | ||||||||||||||||||||
(b) | Represents the total amounts reclassified from accumulated other comprehensive income or loss to other revenues — other and to interest expense for cash flow hedges as disclosed on our consolidated statement of comprehensive income (loss). | ||||||||||||||||||||
Schedule of derivative adjustments included in other revenues - other | Derivative adjustments included in other revenues — other consisted of the following: | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2013 | 2012 | |||||||||||||||||||
Mark to market losses | $ | (8,244 | ) | $ | (28,659 | ) | |||||||||||||||
Net interest income | 9,161 | 18,745 | |||||||||||||||||||
Credit valuation adjustment gains (losses) | 50 | (3,559 | ) | ||||||||||||||||||
Ineffectiveness losses | — | (426 | ) | ||||||||||||||||||
Other | (292 | ) | 2,136 | ||||||||||||||||||
Total | $ | 675 | $ | (11,763 | ) | ||||||||||||||||
Insurance_Tables
Insurance (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Schedule of components of insurance claims and policyholder liabilities | Components of insurance claims and policyholder liabilities were as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Finance receivable related: | |||||||||||||
Unearned premium reserves | $ | 193,710 | $ | 151,987 | |||||||||
Benefit reserves | 107,339 | 94,954 | |||||||||||
Claim reserves | 28,299 | 25,325 | |||||||||||
Subtotal | 329,348 | 272,266 | |||||||||||
Non-finance receivable related: | |||||||||||||
Benefit reserves | 74,639 | 79,352 | |||||||||||
Claim reserves | 41,566 | 42,550 | |||||||||||
Subtotal | 116,205 | 121,902 | |||||||||||
Total | $ | 445,553 | $ | 394,168 | |||||||||
Schedule of insurance claims and policyholder liabilities assumed from other insurers | Our insurance subsidiaries enter into reinsurance agreements with other insurers (including subsidiaries of AIG). Insurance claims and policyholder liabilities included the following amounts assumed from other insurers: | ||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Non-affiliated insurance companies | $ | 14,853 | $ | 16,198 | |||||||||
Affiliated insurance companies | 43,587 | 45,619 | |||||||||||
Total | $ | 58,440 | $ | 61,817 | |||||||||
Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable: | ||||||||||||
(dollars in thousands) | |||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 46,220 | $ | 51,037 | $ | 47,369 | |||||||
Additions for losses and loss adjustment expenses incurred to: | |||||||||||||
Current year | 64,529 | 58,895 | 59,883 | ||||||||||
Prior years * | (2,541 | ) | (6,028 | ) | (2,193 | ) | |||||||
Total | 61,988 | 52,867 | 57,690 | ||||||||||
Reductions for losses and loss adjustment expenses paid related to: | |||||||||||||
Current year | (39,359 | ) | (34,591 | ) | (33,956 | ) | |||||||
Prior years | (20,949 | ) | (23,093 | ) | (20,066 | ) | |||||||
Total | (60,308 | ) | (57,684 | ) | (54,022 | ) | |||||||
Balance at end of period | $ | 47,900 | $ | 46,220 | $ | 51,037 | |||||||
* | Reflects a redundancy in the prior years’ net reserves of $2.5 million at December 31, 2014, $6.0 million at December 31, 2013, and $2.2 million at December 31, 2012 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. | ||||||||||||
Schedule of statutory net income for insurance companies by type of insurance | Statutory net income for our insurance companies by type of insurance was as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Property and casualty | $ | 15,803 | $ | 40,616 | $ | 18,493 | |||||||
Life and accident and health | (2,411 | ) | 3,285 | 10,131 | |||||||||
Schedule of statutory capital and surplus for insurance companies by type of insurance | Statutory capital and surplus for our insurance companies by type of insurance were as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Property and casualty | $ | 107,696 | $ | 153,710 | |||||||||
Life and accident and health | 171,383 | 184,465 | |||||||||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of components of other liabilities | Components of other liabilities were as follows: | ||||||||
(dollars in thousands) | |||||||||
December 31, | 2014 | 2013 | |||||||
Accrued interest on debt | $ | 57,343 | $ | 71,034 | |||||
Retirement plans | 49,916 | 14,836 | |||||||
Payables to parent and affiliates * | 47,680 | 38,463 | |||||||
Other accrued expenses and accounts payable | 26,245 | 11,395 | |||||||
Loan principal warranty reserve | 24,005 | 4,702 | |||||||
United Kingdom subsidiary reserves | 14,271 | 34,475 | |||||||
Salary and benefit liabilities | 11,163 | 18,718 | |||||||
Bank overdrafts | 5,344 | 7,748 | |||||||
Other insurance liabilities | 4,357 | 3,911 | |||||||
Other | 15,222 | 18,184 | |||||||
Total | $ | 255,546 | $ | 223,466 | |||||
* | See Note 10 for further information on payables to parent and affiliates. |
Capital_Stock_Tables
Capital Stock (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2014 were as follows: | ||||||||||||
Special Stock | Common Stock | ||||||||||||
Par value | $ | — | $ | 0.5 | |||||||||
Shares authorized | 25,000,000 | 25,000,000 | |||||||||||
Schedule of shares issued and outstanding | Shares issued and outstanding were as follows: | ||||||||||||
Special Stock | Common Stock | ||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||
Shares issued and outstanding | — | — | 10,160,020 | 10,160,018 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive income (loss) were as follows: | ||||||||||||||||||||
(dollars in thousands) | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Cash Flow Hedges | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Other comprehensive income (loss) before reclassifications | 12,495 | — | (33,094 | ) | 800 | (19,799 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (5,080 | ) | — | — | — | (5,080 | ) | ||||||||||||||
Balance at end of period | $ | 11,777 | $ | — | $ | (12,941 | ) | $ | 4,380 | $ | 3,216 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Other comprehensive income (loss) before reclassifications | (7,787 | ) | — | 12,033 | (547 | ) | 3,699 | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,396 | ) | (104 | ) | — | — | (1,500 | ) | |||||||||||||
Balance at end of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | 3,678 | $ | 4,318 | $ | (35,221 | ) | $ | 152 | $ | (27,073 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 7,684 | (11,042 | ) | 43,341 | 3,975 | 43,958 | |||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 2,183 | 6,828 | — | — | 9,011 | ||||||||||||||||
Balance at end of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Schedule of reclassification adjustments from accumulated other comprehensive income (loss) | Accumulated Other Comprehensive Income | ||||||||||||||||||||
Changes in accumulated other comprehensive income (loss) were as follows: | |||||||||||||||||||||
(dollars in thousands) | Unrealized Gains (Losses) Investment Securities | Unrealized Gains (Losses) Cash Flow Hedges | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Other comprehensive income (loss) before reclassifications | 12,495 | — | (33,094 | ) | 800 | (19,799 | ) | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (5,080 | ) | — | — | — | (5,080 | ) | ||||||||||||||
Balance at end of period | $ | 11,777 | $ | — | $ | (12,941 | ) | $ | 4,380 | $ | 3,216 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Other comprehensive income (loss) before reclassifications | (7,787 | ) | — | 12,033 | (547 | ) | 3,699 | ||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1,396 | ) | (104 | ) | — | — | (1,500 | ) | |||||||||||||
Balance at end of period | $ | 4,362 | $ | — | $ | 20,153 | $ | 3,580 | $ | 28,095 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | 3,678 | $ | 4,318 | $ | (35,221 | ) | $ | 152 | $ | (27,073 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 7,684 | (11,042 | ) | 43,341 | 3,975 | 43,958 | |||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | 2,183 | 6,828 | — | — | 9,011 | ||||||||||||||||
Balance at end of period | $ | 13,545 | $ | 104 | $ | 8,120 | $ | 4,127 | $ | 25,896 | |||||||||||
Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our consolidated statements of operations were as follows: | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrealized gains (losses) on investment securities: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $ | 7,815 | $ | 2,148 | $ | (3,359 | ) | ||||||||||||||
Income tax effect | (2,735 | ) | (752 | ) | 1,176 | ||||||||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, net of taxes | 5,080 | 1,396 | (2,183 | ) | |||||||||||||||||
Unrealized gains (losses) on cash flow hedges: | |||||||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense, before taxes | — | 160 | 1,839 | ||||||||||||||||||
Reclassification from accumulated other comprehensive income to other revenues, before taxes | — | — | (12,343 | ) | |||||||||||||||||
Income tax effect | — | (56 | ) | 3,676 | |||||||||||||||||
Reclassification from accumulated other comprehensive income to interest expense and other revenues, net of taxes | — | 104 | (6,828 | ) | |||||||||||||||||
Total | $ | 5,080 | $ | 1,500 | $ | (9,011 | ) | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of components of benefit from income taxes | Components of provision for (benefit from) income taxes were as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Current | $ | 228,158 | $ | 61,713 | $ | 72,399 | |||||||
Deferred | 16,692 | (107,124 | ) | (156,980 | ) | ||||||||
Total federal | 244,850 | (45,411 | ) | (84,581 | ) | ||||||||
Foreign: | |||||||||||||
Current | 370 | 634 | 2,604 | ||||||||||
Deferred | 3,746 | (1,418 | ) | (15,777 | ) | ||||||||
Deferred - valuation allowance | (3,772 | ) | 2,346 | 15,655 | |||||||||
Total foreign | 344 | 1,562 | 2,482 | ||||||||||
State: | |||||||||||||
Current | 17,498 | 2,481 | 8,294 | ||||||||||
Deferred | (2,533 | ) | (19,240 | ) | (22,656 | ) | |||||||
Deferred - valuation allowance | 3,206 | 7,331 | 8,144 | ||||||||||
Total state | 18,171 | (9,428 | ) | (6,218 | ) | ||||||||
Total | $ | 263,365 | $ | (53,277 | ) | $ | (88,317 | ) | |||||
Schedule of reconciliations of statutory federal income tax rate to effective tax rate | Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: | ||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Non-controlling interests | (2.06 | ) | — | — | |||||||||
State income taxes, net of federal | 1.57 | 4.39 | 1.32 | ||||||||||
Foreign operations | 0.95 | (0.95 | ) | (3.25 | ) | ||||||||
Valuation allowance | (0.50 | ) | (1.73 | ) | (5.09 | ) | |||||||
Nontaxable investment income | (0.12 | ) | 1.11 | 0.89 | |||||||||
Interest and penalties on prior year tax returns | (0.12 | ) | (4.38 | ) | (0.33 | ) | |||||||
Change in tax status | — | 8.35 | — | ||||||||||
Nondeductible compensation | — | (1.99 | ) | — | |||||||||
Other, net | 0.13 | (0.60 | ) | 0.19 | |||||||||
Effective income tax rate | 34.85 | % | 39.2 | % | 28.73 | % | |||||||
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation (all of which would affect the effective tax rate if recognized) is as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of year | $ | 1,887 | $ | 1,580 | $ | — | |||||||
Increases in tax positions for prior years | 2,470 | 307 | 1,091 | ||||||||||
Decreases in tax positions for prior years | — | — | — | ||||||||||
Increases in tax positions for current years | — | — | 489 | ||||||||||
Decreases in tax positions for current years | — | — | — | ||||||||||
Lapse in statute of limitations | (595 | ) | — | — | |||||||||
Settlements | — | — | — | ||||||||||
Balance at end of year | $ | 3,762 | $ | 1,887 | $ | 1,580 | |||||||
Schedule of components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Mark to market - receivables | $ | 32,565 | $ | 48,770 | |||||||||
State taxes, net of federal | 21,324 | 20,106 | |||||||||||
Pension/employee benefits | 19,583 | 8,155 | |||||||||||
Net operating losses and tax attributes | 18,915 | 26,201 | |||||||||||
Joint venture | 12,274 | — | |||||||||||
Legal and warranty reserve | 9,467 | 1,216 | |||||||||||
Payment protection insurance liability | 4,929 | 11,353 | |||||||||||
Deferred insurance commissions | 3,473 | 2,781 | |||||||||||
Real estate owned | 2,738 | 3,058 | |||||||||||
Securitization | — | 68,183 | |||||||||||
Market discount - investments | — | 14,134 | |||||||||||
Insurance reserves | — | 3,711 | |||||||||||
Other | 2,154 | 2,327 | |||||||||||
Total | 127,422 | 209,995 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Debt writedown | 194,261 | 268,988 | |||||||||||
Discount - debt exchange | 22,377 | 14,390 | |||||||||||
Insurance reserves | 10,175 | — | |||||||||||
Other intangible assets | 6,859 | 8,443 | |||||||||||
Market discount - investments | 3,292 | — | |||||||||||
Fixed assets | 1,851 | 2,050 | |||||||||||
Derivative | — | 1,899 | |||||||||||
Other | — | 10,929 | |||||||||||
Total | 238,815 | 306,699 | |||||||||||
Net deferred tax liabilities before valuation allowance | (111,393 | ) | (96,704 | ) | |||||||||
Valuation allowance | (44,383 | ) | (45,220 | ) | |||||||||
Net deferred tax liabilities | $ | (155,776 | ) | $ | (141,924 | ) |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||
Schedule of restructuring expenses and related asset impairment and other expenses by business segment | Restructuring expenses and related asset impairment and other expenses by segment were as follows: | ||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Consolidated Total | |||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Restructuring expenses | $ | 15,863 | $ | 818 | $ | 6,822 | $ | 23,503 | |||||||||||||
Schedule of changes in restructuring liability | Changes in the restructuring liability were as follows: | ||||||||||||||||||||
(dollars in thousands) | Severance Expenses | Contract | Asset Writedowns | Other Exit Expenses * | Total | ||||||||||||||||
Termination Expenses | Restructuring Expenses | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 40 | $ | — | $ | — | $ | 40 | |||||||||||
Amounts paid | — | (40 | ) | — | — | (40 | ) | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Balance at beginning of period | $ | 56 | $ | 365 | $ | — | $ | — | $ | 421 | |||||||||||
Amounts paid | (56 | ) | (325 | ) | — | — | (381 | ) | |||||||||||||
Balance at end of period | $ | — | $ | 40 | $ | — | $ | — | $ | 40 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Amounts charged to expense | 11,600 | 5,840 | 5,246 | 817 | 23,503 | ||||||||||||||||
Amounts paid | (11,544 | ) | (5,475 | ) | — | (1,017 | ) | (18,036 | ) | ||||||||||||
Non-cash expenses | — | — | (5,246 | ) | 200 | (5,046 | ) | ||||||||||||||
Balance at end of period | $ | 56 | $ | 365 | $ | — | $ | — | $ | 421 | |||||||||||
* | Primarily includes removal expenses for branch furniture and signs and fees for outplacement services. Also includes the impairment of the market value adjustment on leased branch offices from the Fortress Acquisition. |
Lease_Commitments_Rent_Expense1
Lease Commitments, Rent Expense, and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Schedule of annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition | Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition, were as follows: | ||||||||||||
(dollars in thousands) | Lease Commitments | ||||||||||||
First quarter 2015 | $ | 6,863 | |||||||||||
Second quarter 2015 | 6,695 | ||||||||||||
Third quarter 2015 | 6,405 | ||||||||||||
Fourth quarter 2015 | 6,131 | ||||||||||||
2015 | 26,094 | ||||||||||||
2016 | 20,982 | ||||||||||||
2017 | 15,128 | ||||||||||||
2018 | 9,809 | ||||||||||||
2019 | 4,957 | ||||||||||||
2020+ | 2,809 | ||||||||||||
Total | $ | 79,779 | |||||||||||
Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations [Table Text Block] | The activity in our reserve for sales recourse obligations associated with the real estate loan sales during 2014 and the loans that were previously sold to HSBC was as follows: | ||||||||||||
(dollars in thousands) | |||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 4,702 | $ | 4,863 | $ | 1,648 | |||||||
Provision for recourse obligations, net of recoveries | 19,592 | 322 | 3,269 | ||||||||||
Recourse losses | (211 | ) | (483 | ) | (54 | ) | |||||||
Balance at end of period | $ | 24,083 | $ | 4,702 | $ | 4,863 | |||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of funded status of the defined benefit pension plans and other postretirement benefit plans | We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. | ||||||||||||||||||||||||
(dollars in thousands) | Pension (a) | Postretirement (b) | |||||||||||||||||||||||
At or for the Years Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Projected benefit obligation, beginning of period | $ | 322,465 | $ | 367,591 | $ | 435,221 | $ | 2,291 | $ | 6,687 | $ | 6,725 | |||||||||||||
Service cost | — | — | 14,968 | 82 | 289 | 285 | |||||||||||||||||||
Interest cost | 15,240 | 14,083 | 18,342 | 92 | 224 | 262 | |||||||||||||||||||
Actuarial loss (gain) (c) | 82,952 | (46,806 | ) | 25,809 | 256 | (4,767 | ) | 166 | |||||||||||||||||
Benefits paid: | |||||||||||||||||||||||||
Company assets | — | — | — | (162 | ) | (142 | ) | (172 | ) | ||||||||||||||||
Plan assets | (11,894 | ) | (12,403 | ) | (10,376 | ) | — | — | — | ||||||||||||||||
Curtailment | (34 | ) | — | (78,558 | ) | (2,076 | ) | — | (579 | ) | |||||||||||||||
Settlement | — | — | (37,815 | ) | (483 | ) | — | — | |||||||||||||||||
Liability recognized at end of year | — | — | — | 385 | — | — | |||||||||||||||||||
Projected benefit obligation, end of period | 408,729 | 322,465 | 367,591 | 385 | 2,291 | 6,687 | |||||||||||||||||||
Fair value of plan assets, beginning of period | 316,660 | 346,824 | 350,374 | — | — | — | |||||||||||||||||||
Actual return on plan assets, net of expenses | 53,789 | (18,405 | ) | 43,579 | — | — | — | ||||||||||||||||||
Company contributions | 643 | 643 | 1,062 | 162 | 142 | 172 | |||||||||||||||||||
Benefits paid: | |||||||||||||||||||||||||
Company assets | — | — | — | (162 | ) | (142 | ) | (172 | ) | ||||||||||||||||
Plan assets | (11,894 | ) | (12,402 | ) | (48,191 | ) | — | — | — | ||||||||||||||||
Fair value of plan assets, end of period | 359,198 | 316,660 | 346,824 | — | — | — | |||||||||||||||||||
Funded status, end of period | $ | (49,531 | ) | $ | (5,805 | ) | $ | (20,767 | ) | $ | (385 | ) | $ | (2,291 | ) | $ | (6,687 | ) | |||||||
Net amounts recognized in the consolidated balance sheet: | |||||||||||||||||||||||||
Noncurrent assets | $ | — | $ | 6,740 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Current liabilities | (653 | ) | (645 | ) | (619 | ) | (23 | ) | (101 | ) | (178 | ) | |||||||||||||
Noncurrent liabilities | (48,878 | ) | (11,900 | ) | (20,148 | ) | (362 | ) | (2,190 | ) | (6,509 | ) | |||||||||||||
Total amounts recognized | $ | (49,531 | ) | $ | (5,805 | ) | $ | (20,767 | ) | $ | (385 | ) | $ | (2,291 | ) | $ | (6,687 | ) | |||||||
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||||||||||||||||||||||||
Net gain (loss) | $ | (19,288 | ) | $ | 26,267 | $ | 13,303 | $ | — | $ | 4,185 | $ | (582 | ) | |||||||||||
Prior service credit (cost) | — | — | — | — | — | — | |||||||||||||||||||
Total amounts recognized | $ | (19,288 | ) | $ | 26,267 | $ | 13,303 | $ | — | $ | 4,185 | $ | (582 | ) | |||||||||||
(a) | Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10.5 million at December 31, 2014 and $9.2 million at December 31, 2013. | ||||||||||||||||||||||||
(b) | We do not currently fund postretirement benefits. | ||||||||||||||||||||||||
(c) | We adopted new mortality tables in 2014, which increased the plan liabilities during 2014. | ||||||||||||||||||||||||
Schedule of defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets | Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: | ||||||||||||||||||||||||
(dollars in thousands) | PBO Exceeds | ABO Exceeds | |||||||||||||||||||||||
Fair Value of Plan Assets | Fair Value of Plan Assets | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Projected benefit obligation | $ | 408,729 | $ | 322,465 | $ | — | $ | 322,465 | |||||||||||||||||
Accumulated benefit obligation | 408,729 | 322,465 | 385 | 322,465 | |||||||||||||||||||||
Fair value of plan assets | 359,198 | 316,660 | — | 316,660 | |||||||||||||||||||||
Schedule of components of net periodic benefit cost in income and other amounts recognized in accumulated other comprehensive income or loss | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: | ||||||||||||||||||||||||
(dollars in thousands) | Pension | Postretirement | |||||||||||||||||||||||
Years Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 14,968 | $ | 82 | $ | 289 | $ | 285 | |||||||||||||
Interest cost | 15,240 | 14,083 | 18,342 | 92 | 224 | 262 | |||||||||||||||||||
Expected return on assets | (16,433 | ) | (15,498 | ) | (20,912 | ) | — | — | — | ||||||||||||||||
Actuarial loss (gain) | 6 | 61 | 285 | (302 | ) | — | — | ||||||||||||||||||
Curtailment gain | — | — | (7,115 | ) | (2,076 | ) | — | (579 | ) | ||||||||||||||||
Settlement loss (gain) | — | — | (1,401 | ) | (4,110 | ) | — | — | |||||||||||||||||
Expense to recognize liability | — | — | — | 385 | — | — | |||||||||||||||||||
Net periodic benefit cost | (1,187 | ) | (1,354 | ) | 4,167 | (5,929 | ) | 513 | (32 | ) | |||||||||||||||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||||||||||||||||||||||||
Net actuarial loss (gain) | 45,595 | (12,903 | ) | 3,142 | 256 | (4,767 | ) | 166 | |||||||||||||||||
Amortization of net actuarial gain (loss) | (6 | ) | (61 | ) | (285 | ) | 302 | — | — | ||||||||||||||||
Net curtailment loss | (34 | ) | — | (71,443 | ) | — | — | — | |||||||||||||||||
Net settlement gain (loss) | — | — | 1,401 | 3,627 | — | — | |||||||||||||||||||
Total recognized in other comprehensive income or loss | 45,555 | (12,964 | ) | (67,185 | ) | 4,185 | (4,767 | ) | 166 | ||||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income or loss | $ | 44,368 | $ | (14,318 | ) | $ | (63,018 | ) | $ | (1,744 | ) | $ | (4,254 | ) | $ | 134 | |||||||||
Summary of weighted average assumptions used to determine projected benefit obligations and net periodic benefit costs | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: | ||||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Projected benefit obligation: | |||||||||||||||||||||||||
Discount rate | 3.89 | % | 4.83 | % | 3.8 | % | 4.7 | % | |||||||||||||||||
Rate of compensation increase | — | — | N/A * | N/A * | |||||||||||||||||||||
Net periodic benefit costs: | |||||||||||||||||||||||||
Discount rate | 4.83 | % | 3.97 | % | 3.8 | % | 3.89 | % | |||||||||||||||||
Expected long-term rate of return on plan assets | 5.29 | 4.55 | N/A * | N/A * | |||||||||||||||||||||
Rate of compensation increase (average) | — | — | N/A * | N/A * | |||||||||||||||||||||
* | Not applicable | ||||||||||||||||||||||||
Schedule of expected future benefit payments, net of participants' contributions, of defined benefit pension plans and other postretirement benefit plans | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans and other postretirement benefit plans, at December 31, 2014 are as follows: | ||||||||||||||||||||||||
(dollars in thousands) | Pension | Postretirement | |||||||||||||||||||||||
2015 | $ | 13,015 | $ | 23 | |||||||||||||||||||||
2016 | 13,662 | 22 | |||||||||||||||||||||||
2017 | 14,278 | 22 | |||||||||||||||||||||||
2018 | 14,785 | 23 | |||||||||||||||||||||||
2019 | 15,351 | 23 | |||||||||||||||||||||||
2020-2024 | 85,340 | 112 | |||||||||||||||||||||||
Schedule of plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs utilized to determine fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: | ||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,170 | $ | — | $ | — | $ | 2,170 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | — | 19,080 | — | 19,080 | |||||||||||||||||||||
International (b) | — | 972 | — | 972 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. investment grade (c) | — | 335,420 | — | 335,420 | |||||||||||||||||||||
U.S. high yield (d) | — | 1,556 | — | 1,556 | |||||||||||||||||||||
Total | $ | 2,170 | $ | 357,028 | $ | — | $ | 359,198 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,920 | $ | — | $ | — | $ | 2,920 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. (a) | — | 17,306 | — | 17,306 | |||||||||||||||||||||
International (b) | — | 1,015 | — | 1,015 | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
U.S. investment grade (c) | — | 293,903 | — | 293,903 | |||||||||||||||||||||
U.S. high yield (d) | — | 1,516 | — | 1,516 | |||||||||||||||||||||
Total | $ | 2,920 | $ | 313,740 | $ | — | $ | 316,660 | |||||||||||||||||
(a) | Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. | ||||||||||||||||||||||||
(b) | Includes investment mutual funds in companies in emerging and developed markets. | ||||||||||||||||||||||||
(c) | Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. | ||||||||||||||||||||||||
(d) | Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Summary of restricted stock activity | The following table summarizes the service-based stock activity and related information for the 2013 Omnibus Plan for 2014: | |||||||||
(dollars in thousands) | Number of Shares | Weighted | Weighted | |||||||
Average | Average | |||||||||
Grant Date Fair Value | Remaining | |||||||||
Term (in Years) | ||||||||||
Unvested at January 1, 2014 | 1,367,996 | $ | 17.03 | |||||||
Granted | 192,938 | 25.65 | ||||||||
Vested | (58,844 | ) | 23.33 | |||||||
Forfeited | (149,225 | ) | 17.73 | |||||||
Unvested at December 31, 2014 | 1,352,865 | 17.91 | 2.89 | |||||||
Summary of performance activity | The following table summarizes the performance-based stock activity and related information for the 2013 Omnibus Plan for 2014: | |||||||||
(dollars in thousands) | Number of Shares | Weighted | Weighted | |||||||
Average | Average | |||||||||
Grant Date Fair Value | Remaining | |||||||||
Term (in Years) | ||||||||||
Unvested at January 1, 2014 | — | $ | — | |||||||
Granted | 600,230 | 25.78 | ||||||||
Forfeited | (16,771 | ) | 23.85 | |||||||
Unvested at December 31, 2014 | 583,459 | 25.84 | 3.59 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about the Company’s segments as well as reconciliations to the consolidated financial statement amounts. As previously discussed, we have combined the Consumer and Insurance segments for the prior period. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Acquisitions and Servicing | Real Estate | Other | Eliminations | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 911,098 | $ | 216,758 | $ | 350,335 | $ | 16,429 | $ | — | $ | 79,833 | $ | 1,574,453 | |||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | 51,316 | — | — | 8,773 | 60,089 | ||||||||||||||||||||||
Total interest income | 911,098 | 216,758 | 401,651 | 16,429 | — | 88,606 | 1,634,542 | ||||||||||||||||||||||
Interest expense | 163,299 | 35,351 | 349,544 | 7,393 | (5,347 | ) | 132,993 | 683,233 | |||||||||||||||||||||
Net interest income | 747,799 | 181,407 | 52,107 | 9,036 | 5,347 | (44,387 | ) | 951,309 | |||||||||||||||||||||
Provision for finance receivable losses | 200,071 | 48,968 | 128,213 | 6,502 | — | (16,196 | ) | 367,558 | |||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 547,728 | 132,439 | (76,106 | ) | 2,534 | 5,347 | (28,191 | ) | 583,751 | ||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 166,345 | — | — | 119 | — | (5 | ) | 166,459 | |||||||||||||||||||||
Investment | 44,532 | 5,347 | (891 | ) | — | (5,347 | ) | (4,622 | ) | 39,019 | |||||||||||||||||||
Intersegment - insurance commissions | (434 | ) | — | 445 | (11 | ) | — | — | — | ||||||||||||||||||||
Net loss on repurchases and repayments of debt | (6,690 | ) | (21,152 | ) | (21,977 | ) | (326 | ) | — | (16,030 | ) | (66,175 | ) | ||||||||||||||||
Net gain on fair value adjustments on debt | — | 1,523 | 8,298 | — | — | (8,298 | ) | 1,523 | |||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets * | — | — | 191,809 | — | — | 509,820 | 701,629 | ||||||||||||||||||||||
Other | 10,833 | — | (15,335 | ) | 5,979 | — | (14,550 | ) | (13,073 | ) | |||||||||||||||||||
Total other revenues | 214,586 | (14,282 | ) | 162,349 | 5,761 | (5,347 | ) | 466,315 | 829,382 | ||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 273,584 | 2 | 37,023 | 10,512 | — | (379 | ) | 320,742 | |||||||||||||||||||||
Other operating expenses | 172,321 | 29,810 | 54,572 | 499 | — | 3,753 | 260,955 | ||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 76,568 | — | — | — | — | (937 | ) | 75,631 | |||||||||||||||||||||
Total other expenses | 522,473 | 29,812 | 91,595 | 11,011 | — | 2,437 | 657,328 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 239,841 | 88,345 | (5,352 | ) | (2,716 | ) | — | 435,687 | 755,805 | ||||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | 44,497 | — | — | — | — | 44,497 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 239,841 | $ | 43,848 | $ | (5,352 | ) | $ | (2,716 | ) | $ | — | $ | 435,687 | $ | 711,308 | |||||||||||||
Assets | $ | 4,472,211 | $ | 2,431,267 | $ | 3,647,123 | $ | 563,975 | $ | — | $ | 11,894 | $ | 11,126,470 | |||||||||||||||
* | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. | ||||||||||||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 720,824 | $ | 690,329 | $ | 45,035 | $ | 191,321 | $ | 1,647,509 | |||||||||||||||||||
Finance receivables held for sale originated as held for investment | — | — | 333 | — | 333 | ||||||||||||||||||||||||
Total interest income | 720,824 | 690,329 | 45,368 | 191,321 | 1,647,842 | ||||||||||||||||||||||||
Interest expense | 149,228 | 538,939 | 15,009 | 139,503 | 842,679 | ||||||||||||||||||||||||
Net interest income | 571,596 | 151,390 | 30,359 | 51,818 | 805,163 | ||||||||||||||||||||||||
Provision for finance receivable losses | 116,570 | 255,438 | (199 | ) | 21,705 | 393,514 | |||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 455,026 | (104,048 | ) | 30,558 | 30,113 | 411,649 | |||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 148,131 | — | 80 | (32 | ) | 148,179 | |||||||||||||||||||||||
Investment | 41,704 | — | — | (8,094 | ) | 33,610 | |||||||||||||||||||||||
Intersegment - insurance commissions | (30 | ) | 134 | (104 | ) | — | — | ||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (5,354 | ) | (46,388 | ) | (1,071 | ) | 11,097 | (41,716 | ) | ||||||||||||||||||||
Net gain on fair value adjustments on debt | — | 56,890 | — | (56,890 | ) | — | |||||||||||||||||||||||
Other | 11,695 | (3,794 | ) | 14,226 | (362 | ) | 21,765 | ||||||||||||||||||||||
Total other revenues | 196,146 | 6,842 | 13,131 | (54,281 | ) | 161,838 | |||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 253,676 | 27,205 | 166,401 | (198 | ) | 447,084 | |||||||||||||||||||||||
Other operating expenses | 128,099 | 56,900 | 8,239 | 4,203 | 197,441 | ||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 65,783 | — | — | (904 | ) | 64,879 | |||||||||||||||||||||||
Total other expenses | 447,558 | 84,105 | 174,640 | 3,101 | 709,404 | ||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 203,614 | $ | (181,311 | ) | $ | (130,951 | ) | $ | (27,269 | ) | $ | (135,917 | ) | |||||||||||||||
Assets | $ | 4,186,573 | $ | 8,472,387 | $ | 663,997 | $ | (590,920 | ) | $ | 12,732,037 | ||||||||||||||||||
(dollars in thousands) | Consumer and Insurance | Real Estate | Other | Push-down Accounting Adjustments | Consolidated Total | ||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Finance charges | $ | 585,041 | $ | 810,441 | $ | 100,097 | $ | 196,327 | $ | 1,691,906 | |||||||||||||||||||
Finance receivables held for sale originated as held for investment | — | 2,734 | — | 6 | 2,740 | ||||||||||||||||||||||||
Total interest income | 585,041 | 813,175 | 100,097 | 196,333 | 1,694,646 | ||||||||||||||||||||||||
Interest expense | 141,710 | 659,536 | 33,775 | 232,688 | 1,067,709 | ||||||||||||||||||||||||
Net interest income | 443,331 | 153,639 | 66,322 | (36,355 | ) | 626,937 | |||||||||||||||||||||||
Provision for finance receivable losses | 90,598 | 54,061 | 10,659 | 185,644 | 340,962 | ||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 352,733 | 99,578 | 55,663 | (221,999 | ) | 285,975 | |||||||||||||||||||||||
Other revenues: | |||||||||||||||||||||||||||||
Insurance | 126,423 | — | 108 | (108 | ) | 126,423 | |||||||||||||||||||||||
Investment | 41,417 | — | — | (10,283 | ) | 31,134 | |||||||||||||||||||||||
Intersegment - insurance commissions | (272 | ) | 95 | 177 | — | — | |||||||||||||||||||||||
Net gain (loss) on repurchases and repayments of debt | 5,890 | 13,777 | 1,415 | (36,210 | ) | (15,128 | ) | ||||||||||||||||||||||
Net gain on fair value adjustments on debt | — | 10,369 | — | (10,369 | ) | — | |||||||||||||||||||||||
Other | 10,788 | (74,450 | ) | 21,148 | 14,217 | (28,297 | ) | ||||||||||||||||||||||
Total other revenues | 184,246 | (50,209 | ) | 22,848 | (42,753 | ) | 114,132 | ||||||||||||||||||||||
Other expenses: | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 258,683 | 29,617 | 32,162 | (530 | ) | 319,932 | |||||||||||||||||||||||
Other operating expenses | 124,920 | 73,851 | 94,867 | 9,740 | 303,378 | ||||||||||||||||||||||||
Restructuring expenses | 15,863 | 818 | 6,822 | — | 23,503 | ||||||||||||||||||||||||
Insurance losses and loss adjustment expenses | 62,092 | — | — | (1,413 | ) | 60,679 | |||||||||||||||||||||||
Total other expenses | 461,558 | 104,286 | 133,851 | 7,797 | 707,492 | ||||||||||||||||||||||||
Income (loss) before benefit from income taxes | $ | 75,421 | $ | (54,917 | ) | $ | (55,340 | ) | $ | (272,549 | ) | $ | (307,385 | ) | |||||||||||||||
Assets | $ | 3,573,653 | $ | 9,627,259 | $ | 2,230,109 | $ | (790,809 | ) | $ | 14,640,212 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | ||||||||||||||||||||||||||||
Fair Value Measurements Using | Total Fair Value | Total Carrying Value | |||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 749,582 | $ | — | $ | — | $ | 749,582 | $ | 749,582 | |||||||||||||||||||
Investment securities | — | 2,912,516 | 9,299 | 2,921,815 | 2,921,815 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,948,883 | 6,948,883 | 6,277,795 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 208,767 | 208,767 | 204,967 | ||||||||||||||||||||||||
Note receivable from parent | — | 251,489 | — | 251,489 | 251,489 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 217,975 | — | — | 217,975 | 217,975 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 78,173 | 78,173 | 84,539 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8,069 | 8,069 | 8,069 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 11,563 | — | 11,563 | 11,563 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 67,115 | — | 67,115 | 78,747 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 9,181,765 | $ | — | $ | 9,181,765 | $ | 8,384,910 | |||||||||||||||||||
Payables to parent and affiliates | — | 47,680 | — | 47,680 | 47,680 | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 374,835 | $ | — | $ | — | $ | 374,835 | $ | 374,835 | |||||||||||||||||||
Investment securities | — | 531,997 | 23,617 | 555,614 | 555,614 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 11,113,980 | 11,113,980 | 10,811,664 | ||||||||||||||||||||||||
Note receivable from parent | — | 167,989 | — | 167,989 | 167,989 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 358,759 | — | — | 358,759 | 358,759 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 94,681 | 94,681 | 102,200 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 23,527 | 23,527 | 23,527 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 39,364 | — | 39,364 | 39,364 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 11,776,576 | $ | — | $ | 11,776,576 | $ | 10,640,728 | |||||||||||||||||||
Payables to parent and affiliates | — | 38,463 | — | 38,463 | 38,463 | ||||||||||||||||||||||||
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | The following table presents information about our assets and liabilities 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 thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 236,480 | $ | — | $ | — | $ | 236,480 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 164,709 | — | 164,709 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 63,331 | — | 63,331 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 101,683 | — | 101,683 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1,125 | — | 1,125 | |||||||||||||||||||||||||
Corporate debt | — | 262,850 | 4,078 | 266,928 | |||||||||||||||||||||||||
RMBS | — | 72,901 | 56 | 72,957 | |||||||||||||||||||||||||
CMBS | — | 21,928 | 2,501 | 24,429 | |||||||||||||||||||||||||
CDO/ABS | — | 61,250 | — | 61,250 | |||||||||||||||||||||||||
Total | — | 585,068 | 6,635 | 591,703 | |||||||||||||||||||||||||
Preferred stock | — | 7,094 | — | 7,094 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,343 | 1,343 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 592,162 | 7,978 | 600,140 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 302,084 | — | 302,084 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 13,788 | — | 13,788 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 237,637 | — | 237,637 | |||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 19,613 | — | 19,613 | |||||||||||||||||||||||||
Corporate debt | — | 1,055,682 | — | 1,055,682 | |||||||||||||||||||||||||
RMBS | — | 35,328 | 163 | 35,491 | |||||||||||||||||||||||||
CMBS | — | 148,880 | — | 148,880 | |||||||||||||||||||||||||
CDO/ABS | — | 507,342 | — | 507,342 | |||||||||||||||||||||||||
Total trading securities | — | 2,320,354 | 163 | 2,320,517 | |||||||||||||||||||||||||
Total investment securities | — | 2,912,516 | 8,141 | 2,920,657 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 206,691 | — | — | 206,691 | |||||||||||||||||||||||||
Total | $ | 443,171 | $ | 3,077,225 | $ | 8,141 | $ | 3,528,537 | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 185,829 | $ | — | $ | — | $ | 185,829 | |||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 58,633 | — | 58,633 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102,745 | — | 102,745 | |||||||||||||||||||||||||
Corporate debt | — | 225,312 | 12,604 | 237,916 | |||||||||||||||||||||||||
RMBS | — | 82,510 | 113 | 82,623 | |||||||||||||||||||||||||
CMBS | — | 7,545 | 2 | 7,547 | |||||||||||||||||||||||||
CDO/ABS | — | 3,176 | 800 | 3,976 | |||||||||||||||||||||||||
Total | — | 479,921 | 13,519 | 493,440 | |||||||||||||||||||||||||
Preferred stock | — | 7,805 | — | 7,805 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1,269 | 1,269 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 487,726 | 14,788 | 502,514 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | — | 1,837 | — | 1,837 | |||||||||||||||||||||||||
RMBS | — | 10,671 | — | 10,671 | |||||||||||||||||||||||||
CMBS | — | 29,897 | — | 29,897 | |||||||||||||||||||||||||
CDO/ABS | — | 1,866 | 7,383 | 9,249 | |||||||||||||||||||||||||
Total trading securities | — | 44,271 | 7,383 | 51,654 | |||||||||||||||||||||||||
Total investment securities | — | 531,997 | 22,171 | 554,168 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 321,617 | — | — | 321,617 | |||||||||||||||||||||||||
Total | $ | 507,446 | $ | 531,997 | $ | 22,171 | $ | 1,061,614 | |||||||||||||||||||||
(a) | Other long-term investments excludes our interest in a limited partnership of $0.5 million at December 31, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. | ||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $0.7 million at December 31, 2014 and $0.9 million at December 31, 2013 and, therefore, have been excluded from the table above. | ||||||||||||||||||||||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following table presents changes during 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements (a) | into | out of Level 3 (c) | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 (b) | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 12,604 | $ | 151 | $ | (283 | ) | $ | (8,394 | ) | $ | — | $ | — | $ | 4,078 | |||||||||||||
RMBS | 113 | (14 | ) | (43 | ) | — | — | — | 56 | ||||||||||||||||||||
CMBS | 2 | — | 13 | — | 2,486 | — | 2,501 | ||||||||||||||||||||||
CDO/ABS | 800 | — | 3 | — | — | (803 | ) | — | |||||||||||||||||||||
Total | 13,519 | 137 | (310 | ) | (8,394 | ) | 2,486 | (803 | ) | 6,635 | |||||||||||||||||||
Other long-term investments | 1,269 | — | 164 | (90 | ) | — | — | 1,343 | |||||||||||||||||||||
Total available-for-sale securities | 14,788 | 137 | (146 | ) | (8,484 | ) | 2,486 | (803 | ) | 7,978 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | (80 | ) | (96 | ) | (106 | ) | 1,602 | (1,157 | ) | 163 | ||||||||||||||||||
CDO/ABS | 7,383 | 141 | — | (6,721 | ) | — | (803 | ) | — | ||||||||||||||||||||
Total trading securities | 7,383 | 61 | (96 | ) | (6,827 | ) | 1,602 | (1,960 | ) | 163 | |||||||||||||||||||
Total | $ | 22,171 | $ | 198 | $ | (242 | ) | $ | (15,311 | ) | $ | 4,088 | $ | (2,763 | ) | $ | 8,141 | ||||||||||||
(a) | “Purchases, sales, issues, and settlements” column consists only of settlements. There were no purchases, sales, or issues of investment securities for 2014. | ||||||||||||||||||||||||||||
(b) | During 2014, we transferred $2.5 million of CMBS available-for-sale securities and $1.6 million of RMBS trading securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
(c) | During 2014, we transferred $0.8 million of CDO/ABS available-for-sale securities, $1.2 million of RMBS trading securities, and $0.8 million of CDO/ABS trading securities out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes during 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements* | into | out of Level 3 | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (180 | ) | $ | 475 | $ | (101 | ) | $ | — | $ | (1,007 | ) | $ | 12,604 | ||||||||||||
RMBS | 74 | (35 | ) | 74 | — | — | — | 113 | |||||||||||||||||||||
CMBS | 153 | (7 | ) | 5 | (149 | ) | — | — | 2 | ||||||||||||||||||||
CDO/ABS | 1,200 | — | — | (400 | ) | — | — | 800 | |||||||||||||||||||||
Total | 14,844 | (222 | ) | 554 | (650 | ) | — | (1,007 | ) | 13,519 | |||||||||||||||||||
Other long-term investments | 1,380 | 2 | (102 | ) | (11 | ) | — | — | 1,269 | ||||||||||||||||||||
Total available-for-sale securities | 16,224 | (220 | ) | 452 | (661 | ) | — | (1,007 | ) | 14,788 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | 12,192 | 53 | — | (4,862 | ) | — | — | 7,383 | |||||||||||||||||||||
Total | $ | 28,416 | $ | (167 | ) | $ | 452 | $ | (5,523 | ) | $ | — | $ | (1,007 | ) | $ | 22,171 | ||||||||||||
* | The detail of purchases, sales, issues, and settlements during 2013 is presented in the following table. | ||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis during 2013: | |||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (1,082 | ) | $ | (101 | ) | ||||||||||||||||
CMBS | — | — | — | (149 | ) | (149 | ) | ||||||||||||||||||||||
CDO/ABS | — | — | — | (400 | ) | (400 | ) | ||||||||||||||||||||||
Total | 2,016 | (1,035 | ) | — | (1,631 | ) | (650 | ) | |||||||||||||||||||||
Other long-term investments | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||
Total available-for-sale securities | 2,016 | (1,035 | ) | — | (1,642 | ) | (661 | ) | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (4,862 | ) | (4,862 | ) | ||||||||||||||||||||||
Total | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (6,504 | ) | $ | (5,523 | ) | ||||||||||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | The following table presents changes during 2014 in Level 3 assets and liabilities measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements (a) | into | out of Level 3 (c) | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 (b) | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 12,604 | $ | 151 | $ | (283 | ) | $ | (8,394 | ) | $ | — | $ | — | $ | 4,078 | |||||||||||||
RMBS | 113 | (14 | ) | (43 | ) | — | — | — | 56 | ||||||||||||||||||||
CMBS | 2 | — | 13 | — | 2,486 | — | 2,501 | ||||||||||||||||||||||
CDO/ABS | 800 | — | 3 | — | — | (803 | ) | — | |||||||||||||||||||||
Total | 13,519 | 137 | (310 | ) | (8,394 | ) | 2,486 | (803 | ) | 6,635 | |||||||||||||||||||
Other long-term investments | 1,269 | — | 164 | (90 | ) | — | — | 1,343 | |||||||||||||||||||||
Total available-for-sale securities | 14,788 | 137 | (146 | ) | (8,484 | ) | 2,486 | (803 | ) | 7,978 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | (80 | ) | (96 | ) | (106 | ) | 1,602 | (1,157 | ) | 163 | ||||||||||||||||||
CDO/ABS | 7,383 | 141 | — | (6,721 | ) | — | (803 | ) | — | ||||||||||||||||||||
Total trading securities | 7,383 | 61 | (96 | ) | (6,827 | ) | 1,602 | (1,960 | ) | 163 | |||||||||||||||||||
Total | $ | 22,171 | $ | 198 | $ | (242 | ) | $ | (15,311 | ) | $ | 4,088 | $ | (2,763 | ) | $ | 8,141 | ||||||||||||
(a) | “Purchases, sales, issues, and settlements” column consists only of settlements. There were no purchases, sales, or issues of investment securities for 2014. | ||||||||||||||||||||||||||||
(b) | During 2014, we transferred $2.5 million of CMBS available-for-sale securities and $1.6 million of RMBS trading securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
(c) | During 2014, we transferred $0.8 million of CDO/ABS available-for-sale securities, $1.2 million of RMBS trading securities, and $0.8 million of CDO/ABS trading securities out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes during 2013 in Level 3 assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, sales, issues, | Transfers | Transfers | Balance | |||||||||||||||||||||||||
settlements* | into | out of Level 3 | at end of period | ||||||||||||||||||||||||||
(dollars in thousands) | Balance at beginning of period | Other revenues | Other | Level 3 | |||||||||||||||||||||||||
comprehensive income (loss) | |||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13,417 | $ | (180 | ) | $ | 475 | $ | (101 | ) | $ | — | $ | (1,007 | ) | $ | 12,604 | ||||||||||||
RMBS | 74 | (35 | ) | 74 | — | — | — | 113 | |||||||||||||||||||||
CMBS | 153 | (7 | ) | 5 | (149 | ) | — | — | 2 | ||||||||||||||||||||
CDO/ABS | 1,200 | — | — | (400 | ) | — | — | 800 | |||||||||||||||||||||
Total | 14,844 | (222 | ) | 554 | (650 | ) | — | (1,007 | ) | 13,519 | |||||||||||||||||||
Other long-term investments | 1,380 | 2 | (102 | ) | (11 | ) | — | — | 1,269 | ||||||||||||||||||||
Total available-for-sale securities | 16,224 | (220 | ) | 452 | (661 | ) | — | (1,007 | ) | 14,788 | |||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | 12,192 | 53 | — | (4,862 | ) | — | — | 7,383 | |||||||||||||||||||||
Total | $ | 28,416 | $ | (167 | ) | $ | 452 | $ | (5,523 | ) | $ | — | $ | (1,007 | ) | $ | 22,171 | ||||||||||||
* | The detail of purchases, sales, issues, and settlements during 2013 is presented in the following table. | ||||||||||||||||||||||||||||
The following table presents the detail of purchases, sales, issuances, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis during 2013: | |||||||||||||||||||||||||||||
(dollars in thousands) | Purchases | Sales | Issues | Settlements | Total | ||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (1,082 | ) | $ | (101 | ) | ||||||||||||||||
CMBS | — | — | — | (149 | ) | (149 | ) | ||||||||||||||||||||||
CDO/ABS | — | — | — | (400 | ) | (400 | ) | ||||||||||||||||||||||
Total | 2,016 | (1,035 | ) | — | (1,631 | ) | (650 | ) | |||||||||||||||||||||
Other long-term investments | — | — | — | (11 | ) | (11 | ) | ||||||||||||||||||||||
Total available-for-sale securities | 2,016 | (1,035 | ) | — | (1,642 | ) | (661 | ) | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
CDO/ABS | — | — | — | (4,862 | ) | (4,862 | ) | ||||||||||||||||||||||
Total | $ | 2,016 | $ | (1,035 | ) | $ | — | $ | (6,504 | ) | $ | (5,523 | ) | ||||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a recurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a recurring basis for which information about the unobservable inputs is reasonably available to us at December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 1.05% (a) | 2.68% – 8.48% (4.67%) | |||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 139 bps (a) | — | |||||||||||||||||||||||||
CMBS | Discounted cash flows | Spread | 736 bps (a) | — | |||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs Nature of investment Local market conditions Comparables Operating performance Recent financing activity | N/A (b) | N/A (b) | |||||||||||||||||||||||||
(a) | At December 31, 2014, corporate debt, RMBS, and CMBS each consisted of one bond. | ||||||||||||||||||||||||||||
(b) | Not applicable. | ||||||||||||||||||||||||||||
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | ||||||||||||||||||||||||||||
Fair Value Measurements Using | Impairment Charges | ||||||||||||||||||||||||||||
(dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 19,446 | $ | 19,446 | $ | 15,264 | |||||||||||||||||||
Commercial mortgage loans | — | — | 10,796 | 10,796 | (1,828 | ) | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 30,242 | $ | 30,242 | $ | 13,436 | |||||||||||||||||||
At or for the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 71,469 | $ | 71,469 | $ | 25,257 | |||||||||||||||||||
Commercial mortgage loans | — | — | 11,935 | 11,935 | (2,010 | ) | |||||||||||||||||||||||
Total | $ | — | $ | — | $ | 83,404 | $ | 83,404 | $ | 23,247 | |||||||||||||||||||
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A * | N/A * | |||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions Nature of investment Comparable property sales Operating performance | N/A * | N/A * | |||||||||||||||||||||||||
* | Not applicable. |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of selected quarterly financial data | Our selected quarterly financial data for 2014 was as follows: | Our selected quarterly financial data for 2013 was as follows: | ||||||||||||||||||||||||||||||||
(dollars in thousands) | Fourth | Third | Second | First | (dollars in thousands) | Fourth | Third | Second | First | |||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||||
Interest income | $ | 408,804 | $ | 431,816 | $ | 391,353 | $ | 402,569 | Interest income | $ | 414,338 | $ | 417,141 | $ | 407,846 | $ | 408,517 | |||||||||||||||||
Interest expense | 157,198 | 172,492 | 171,797 | 181,746 | Interest expense | 192,818 | 205,270 | 214,285 | 230,306 | |||||||||||||||||||||||||
Provision for finance receivable losses | 94,186 | 92,114 | 74,246 | 107,012 | Provision for finance receivable losses | 133,509 | 101,390 | 64,384 | 94,231 | |||||||||||||||||||||||||
Other revenues | (25,188 | ) | 662,819 | 92,296 | 99,455 | Other revenues | 41,771 | 16,751 | 56,316 | 47,000 | ||||||||||||||||||||||||
Other expenses | 172,396 | 182,431 | 151,517 | 150,984 | Other expenses | 147,557 | 278,285 | 141,948 | 141,614 | |||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | (40,164 | ) | 647,598 | 86,089 | 62,282 | Income (loss) before provision for (benefit from) income taxes | (17,775 | ) | (151,053 | ) | 43,545 | (10,634 | ) | |||||||||||||||||||||
Provision for (benefit from) income taxes | (12,618 | ) | 219,092 | 32,811 | 24,080 | Provision for (benefit from) income taxes | (9,180 | ) | (57,145 | ) | 16,398 | (3,350 | ) | |||||||||||||||||||||
Net income (loss) | (27,546 | ) | 428,506 | 53,278 | 38,202 | Net income (loss) | $ | (8,595 | ) | $ | (93,908 | ) | $ | 27,147 | $ | (7,284 | ) | |||||||||||||||||
Net income attributable to non-controlling interests | 21,272 | 23,225 | — | — | ||||||||||||||||||||||||||||||
Net income (loss) attributable to Springleaf Finance Corporation | $ | (48,818 | ) | $ | 405,281 | $ | 53,278 | $ | 38,202 | |||||||||||||||||||||||||
Nature_of_Operations_Details
Nature of Operations (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||
Aug. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 06, 2014 | Jul. 31, 2014 | Mar. 31, 2014 | Mar. 07, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Nov. 07, 2014 | Dec. 31, 2014 | Dec. 19, 2014 | Oct. 23, 2014 | Jun. 30, 2014 | Aug. 06, 2014 | 23-May-14 | Dec. 31, 2011 | Apr. 01, 2013 | Aug. 01, 2014 | ||
segment | |||||||||||||||||||||
position | |||||||||||||||||||||
state | |||||||||||||||||||||
employee | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Finance receivables | $6,452,018,000 | $11,143,859,000 | $6,452,018,000 | $6,452,018,000 | |||||||||||||||||
Number of States in which Entity Operates | 26 | 26 | 26 | ||||||||||||||||||
Number of business segments | 3 | ||||||||||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date | 300 | 300 | 300 | ||||||||||||||||||
Restructuring and Related Cost, Number of Employees Terminated, Inception to Date | 170 | 170 | 170 | ||||||||||||||||||
Restructuring and Related Cost, Number of Employees Transferred | 130 | 130 | 130 | ||||||||||||||||||
Restructuring Costs | 3,800,000 | ||||||||||||||||||||
Cost of mortgages sold | 6,300,000,000 | 18,000,000 | 171,000,000 | ||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 608,400,000 | 701,629,000 | [1] | 0 | 0 | ||||||||||||||||
Financing Receivable Held-for-sale, Carrying Value of Loans Sold | 4,000,000,000 | ||||||||||||||||||||
Provision for recourse obligations, net of recoveries | 19,592,000 | 322,000 | 3,269,000 | ||||||||||||||||||
Securitized Assets Sales Price Agreed | 38,800,000 | 263,700,000 | |||||||||||||||||||
Mortgage Loans on Real Estate, Sale Price of Mortgages Sold | 1,600,000,000 | ||||||||||||||||||||
Holdback provision receivable on loans sold | 64,400,000 | 64,400,000 | 64,400,000 | ||||||||||||||||||
Assets | 11,126,470,000 | 12,732,037,000 | 14,640,212,000 | 11,126,470,000 | 11,126,470,000 | ||||||||||||||||
Liabilities | 9,245,416,000 | 11,403,896,000 | 9,245,416,000 | 9,245,416,000 | |||||||||||||||||
Shareholder’s equity | 1,881,054,000 | 1,328,141,000 | 1,242,582,000 | 1,881,054,000 | 1,881,054,000 | 1,388,741,000 | |||||||||||||||
Non-controlling interests | -188,307,000 | 0 | -188,307,000 | -188,307,000 | |||||||||||||||||
Springleaf Financial Holdings, LLC | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Percent of common stock held by related party | 75.00% | 75.00% | 75.00% | ||||||||||||||||||
Subsidiaries Wholly Owned | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 737,200,000 | ||||||||||||||||||||
Consumer and Insurance | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Number of operating segments | 2 | ||||||||||||||||||||
Consumer | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Number of States in which Entity Operates | 26 | 26 | 26 | ||||||||||||||||||
Springleaf Acquisition Corporation | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Related Party Transaction Number of Shares of Related Party Common Stock Contributed by Parent | 100 | ||||||||||||||||||||
Related Party Common Stock Par or Stated Value Per Share | $0.00 | ||||||||||||||||||||
Assets | 2,300,000,000 | ||||||||||||||||||||
Liabilities | 1,700,000,000 | ||||||||||||||||||||
Shareholder’s equity | 691,000,000 | ||||||||||||||||||||
Non-controlling interests | 394,600,000 | ||||||||||||||||||||
Corporate Joint Venture | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | 47.00% | 47.00% | |||||||||||||||||
Consumer Portfolio | Corporate Joint Venture | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Principal Amount Outstanding of Loans Held-in-portfolio | 3,900,000,000 | ||||||||||||||||||||
Residential Portfolio Segment | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Finance receivables | 625,335,000 | 7,885,016,000 | 625,335,000 | 625,335,000 | |||||||||||||||||
Residential Portfolio Segment | Consolidated Entity Excluding Variable Interest Entities (VIE) | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 89,900,000 | 79,000,000 | |||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | -16,900,000 | ||||||||||||||||||||
Residential Portfolio Segment | Collateralized Mortgage Backed Securities | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 5,100,000,000 | ||||||||||||||||||||
September Whole Loan | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 778,400,000 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | -5,000,000 | ||||||||||||||||||||
Provision for recourse obligations, net of recoveries | 7,000,000 | ||||||||||||||||||||
Mortgage Loans on Real Estate, Sale Price of Mortgages Sold | 795,100,000 | ||||||||||||||||||||
Holdback provision on mortgage loans | 120,000,000 | ||||||||||||||||||||
Holdback provision on mortgage loans subject to finalization of terms and conditions | 40,000,000 | ||||||||||||||||||||
Holdback provision received on mortgage loans | 83,000,000 | ||||||||||||||||||||
Holdback provision receivable on loans sold | 37,000,000 | 37,000,000 | 37,000,000 | ||||||||||||||||||
September Whole Loan | Collateralized Mortgage Backed Securities | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Financing Receivable Held-for-sale, Carrying Value of Loans Sold | 4,000,000,000 | ||||||||||||||||||||
November Whole Loan | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 250,600,000 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 7,800,000 | ||||||||||||||||||||
Mortgage Loans on Real Estate, Sale Price of Mortgages Sold | 270,100,000 | ||||||||||||||||||||
Holdback provision on mortgage loans | 34,000,000 | ||||||||||||||||||||
Holdback provision received on mortgage loans | 11,500,000 | ||||||||||||||||||||
Proceeds from sale of mortgage loans held-for-sale | 236,000,000 | ||||||||||||||||||||
Holdback provision receivable on loans sold | 22,800,000 | 22,800,000 | 22,800,000 | ||||||||||||||||||
December Whole Loan | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 23,600,000 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 600,000 | ||||||||||||||||||||
Mortgage Loans on Real Estate, Sale Price of Mortgages Sold | 25,800,000 | ||||||||||||||||||||
Holdback provision on mortgage loans | 4,500,000 | ||||||||||||||||||||
Proceeds from sale of mortgage loans held-for-sale | 21,000,000 | ||||||||||||||||||||
Holdback provision receivable on loans sold | 4,500,000 | 4,500,000 | 4,500,000 | ||||||||||||||||||
Nationstar | Affiliated companies | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Securitized Assets Sales Price Agreed | 38,800,000 | ||||||||||||||||||||
Proceeds from Sale of Mortgage Servicing Rights (MSR) | 19,400,000 | 15,700,000 | |||||||||||||||||||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 5,000,000,000 | ||||||||||||||||||||
Sale of Mortgage Servicing Rights (MSR), Period for Remaining Percentage of Proceeds to Be Received | 120 days | ||||||||||||||||||||
Holdback provision receivable on loans sold | 3,700,000 | 3,700,000 | 3,700,000 | ||||||||||||||||||
Consolidated VIEs | Residential Portfolio Segment | Collateralized Mortgage Backed Securities | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Finance receivables | 5,595,150,000 | ||||||||||||||||||||
Consolidated VIEs | Residential Portfolio Segment | Collateralized Mortgage Backed Securities | American General Mortgage Loan Trust 2009 1 | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 724,900,000 | ||||||||||||||||||||
Consolidated VIEs | Residential Portfolio Segment | Collateralized Mortgage Backed Securities | American General Mortgage Loan Trust 2009 1 | Subsidiaries Wholly Owned | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 724,900,000 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 72,000,000 | ||||||||||||||||||||
Consolidated VIEs | Residential Portfolio Segment | Collateralized Mortgage Backed Securities | American General Mortgage Loan Trust 2010 1 | Subsidiaries Wholly Owned | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Cost of mortgages sold | 444,400,000 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 34,800,000 | ||||||||||||||||||||
Other | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Number of States where Personal Lending and Retail Sales Financing Ceased Due to Restructuring Activities | 14 | ||||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 0 | [1] | |||||||||||||||||||
Assets | $563,975,000 | $663,997,000 | $2,230,109,000 | $563,975,000 | $563,975,000 | ||||||||||||||||
Minimum | |||||||||||||||||||||
Business and summary of significant accounting policies | |||||||||||||||||||||
Number of Customer Accounts from which Finance Receivable Due | 1,229,480 | 1,229,480 | 1,229,480 | ||||||||||||||||||
Number of Branch Offices | 831 | ||||||||||||||||||||
Entity Number of Employees | 3,239 | 3,239 | 3,239 | ||||||||||||||||||
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||
Aug. 29, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 07, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2011 | Jul. 31, 2014 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Allowance for finance receivable losses | $174,223,000 | $332,195,000 | $174,223,000 | $332,195,000 | $182,701,000 | $69,319,000 | |||||||||||||
Cost of mortgages sold | 6,300,000,000 | 18,000,000 | 171,000,000 | ||||||||||||||||
Net gain on sales of real estate loans and related trust assets | -608,400,000 | -701,629,000 | [1] | 0 | 0 | ||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | 12,618,000 | -219,092,000 | -32,811,000 | -24,080,000 | 9,180,000 | 57,145,000 | -16,398,000 | 3,350,000 | -263,365,000 | 53,277,000 | 88,317,000 | ||||||||
Finance receivables past due period | 60 days | ||||||||||||||||||
Period in which Most Repurchase Requests for Financial Receivable Sold Occur | 5 years | ||||||||||||||||||
Financing Receivable Held-for-sale, Carrying Value of Loans Sold | 4,000,000,000 | ||||||||||||||||||
Personal Loans | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 1,800,000 | -4,500,000 | |||||||||||||||||
Financing Receivable Partial Payment as Percentage of Regular Monthly Payment | 50.00% | ||||||||||||||||||
Number of past due contractual payments to occur before finance charges stop accruing | 4 | ||||||||||||||||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | ||||||||||||||||||
Financing Receivable Number of Deferments in Rolling Period | 2 | ||||||||||||||||||
Financing Receivable Rolling Period | 12 months | ||||||||||||||||||
Credit card receivable | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Financing Receivable Partial Payment as Percentage of Regular Monthly Payment | 50.00% | ||||||||||||||||||
Financing Receivable Number of Deferments in Rolling Period | 2 | ||||||||||||||||||
Financing Receivable Rolling Period | 12 months | ||||||||||||||||||
Retail Sales Finance, revolving retail | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Number of past due contractual payments to occur before finance charges stop accruing | 6 | ||||||||||||||||||
Retail Sales Finance, retail sales contracts | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Number of past due contractual payments to occur before finance charges stop accruing | 4 | ||||||||||||||||||
Residential Portfolio Segment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | -701,600,000 | ||||||||||||||||||
Financing Receivable Number of Contractual Payments Past Due on Collateral Dependent Loan | 2 | ||||||||||||||||||
Financing Receivable Number of Installments Past Due Foreclosure | 4 | ||||||||||||||||||
Real Estate Loans Central | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Number of past due contractual payments to occur before finance charges stop accruing | 3 | ||||||||||||||||||
Financing Receivable Number of Deferments in Rolling Period | 1 | ||||||||||||||||||
Financing Receivable Rolling Period | 12 months | ||||||||||||||||||
Financing Receivable Number of Contractual Payments Required for Granting Deferment | 2 | ||||||||||||||||||
Real Estate Loans Branch | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Financing Receivable Partial Payment as Percentage of Regular Monthly Payment | 50.00% | ||||||||||||||||||
Number of past due contractual payments to occur before finance charges stop accruing | 4 | ||||||||||||||||||
Financing Receivable Number of Deferments in Rolling Period | 2 | ||||||||||||||||||
Financing Receivable Rolling Period | 12 months | ||||||||||||||||||
Residential Portfolio Segment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Allowance for finance receivable losses | 40,171,000 | 236,032,000 | 40,171,000 | 236,032,000 | 113,861,000 | 28,790,000 | |||||||||||||
Collateralized Mortgage Backed Securities | Residential Portfolio Segment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 5,100,000,000 | ||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Allowance for finance receivable losses | 71,668,000 | 153,084,000 | 71,668,000 | 153,084,000 | |||||||||||||||
Consolidated VIEs | Adjustments | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Allowance for finance receivable losses | -26,800,000 | -26,800,000 | |||||||||||||||||
Corporate Joint Venture | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | 47.00% | ||||||||||||||||
American General Mortgage Loan Trust 2009 1 | Consolidated VIEs | Collateralized Mortgage Backed Securities | Residential Portfolio Segment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 724,900,000 | ||||||||||||||||||
American General Mortgage Loan Trust 2009 1 | Consolidated VIEs | Collateralized Mortgage Backed Securities | Residential Portfolio Segment | As previously stated | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 742,000,000 | ||||||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Residential Portfolio Segment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 89,900,000 | 79,000,000 | |||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 16,900,000 | ||||||||||||||||||
Consolidated Entity Excluding Variable Interest Entities (VIE) | Residential Portfolio Segment | As previously stated | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 93,300,000 | ||||||||||||||||||
September Whole Loan | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 778,400,000 | ||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 5,000,000 | ||||||||||||||||||
September Whole Loan | Residential Mortgage | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 778,400,000 | ||||||||||||||||||
September Whole Loan | Residential Mortgage | Adjustments | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Net gain on sales of real estate loans and related trust assets | 9,800,000 | 9,800,000 | 9,800,000 | ||||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | 3,600,000 | ||||||||||||||||||
September Whole Loan | Residential Mortgage | As previously stated | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Cost of mortgages sold | 768,600,000 | ||||||||||||||||||
September Whole Loan | Collateralized Mortgage Backed Securities | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Financing Receivable Held-for-sale, Carrying Value of Loans Sold | 4,000,000,000 | ||||||||||||||||||
September Whole Loan | Collateralized Mortgage Backed Securities | Adjustments | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Tax Adjustments, Settlements, and Unusual Provisions | -1,700,000 | ||||||||||||||||||
Gain (Loss) on Sales of Mortgage Backed Securities (MBS) | $4,500,000 | $4,500,000 | $4,500,000 | ||||||||||||||||
Earnings Per Share, Basic and Diluted | $0.02 | ||||||||||||||||||
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Finance_Receivables_Narrative_
Finance Receivables - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Jul. 31, 2014 | ||||
account | account | account | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | $6,452,018,000 | $11,143,859,000 | ||||||
Carrying Value | 8,384,910,000 | [1] | 10,640,728,000 | |||||
Finance receivables pledged as collateral for secured term loan | 1,000,000,000 | |||||||
Loans Receivable Held-for-sale, Net | 205,000,000 | |||||||
TDR gross finance receivables | 229,150,000 | [2],[3] | 1,381,345,000 | [4] | ||||
Financing Receivable, Modifications, Recorded Investment | 137,199,000 | 1,386,039,000 | ||||||
Amount of commitments to lend additional funds on TDR finance receivables | 0 | |||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 972,603,000 | [5] | 1,130,989,000 | 580,987,000 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 49,989,000 | [6] | 64,157,000 | 32,288,000 | ||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 241,308,000 | [7] | 587,936,000 | 567,016,000 | ||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 229,661,000 | [7] | 605,861,000 | 572,796,000 | ||||
Financing Receivable, Modifications, Number of Contracts | 7,735 | [8] | 10,325 | 11,334 | ||||
Number of TDR accounts | 718 | [9] | 1,283 | 1,032 | ||||
TDR net finance receivables | 34,414,000 | [10],[9] | 70,105,000 | [10] | 67,250,000 | [10] | ||
Variable Interest Entity, Primary Beneficiary | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Carrying Value | 3,643,956,000 | [11] | 5,160,227,000 | [11] | ||||
Personal Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | |||||||
Personal Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 3,799,788,000 | 3,159,932,000 | ||||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | |||||||
Financing Receivable, Modifications, Recorded Investment | 22,021,000 | 14,718,000 | ||||||
Personal Loans | Asset-backed securities | Variable Interest Entity, Primary Beneficiary | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 1,852,989,000 | 1,572,070,000 | ||||||
Personal Loans | Titled personal property | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Amount of receivable secured by personal property | 1,900,000,000 | |||||||
Percentage of net finance receivables secured by the real and/or personal property of the borrower | 50.00% | |||||||
Personal Loans | Consumer household goods or other items of personal property | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Amount of receivable secured by personal property | 1,300,000,000 | |||||||
Percentage of net finance receivables secured by the real and/or personal property of the borrower | 36.00% | |||||||
Personal Loans | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Original term | 4 years | |||||||
SpringCastle Portfolio | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 1,979,190,000 | 0 | ||||||
Financing Receivable, Modifications, Recorded Investment | 9,905,000 | 0 | ||||||
SpringCastle Portfolio | Collateralized Mortgage Backed Securities | Variable Interest Entity, Primary Beneficiary | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 1,979,190,000 | [11] | ||||||
Residential Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 625,335,000 | 7,885,016,000 | ||||||
Financing Receivable, Modifications, Recorded Investment | 105,273,000 | 1,371,321,000 | ||||||
Residential Portfolio Segment | Collateralized Mortgage Backed Securities | Variable Interest Entity, Primary Beneficiary | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 5,595,150,000 | |||||||
Residential Portfolio Segment | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Original term | 360 months | |||||||
Revolving Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | |||||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 100,000 | 400,000 | ||||||
Credit card receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 47,705,000 | 98,911,000 | ||||||
Financing Receivable, Modifications, Recorded Investment | 0 | 0 | ||||||
Credit card receivable | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Original term | 60 months | |||||||
Affiliates of Fortress or AIG | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Including Held for Sale, Carrying Amount, Net | 67,500,000 | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Including Held for Sale, Outstanding Balance | 99,300,000 | |||||||
Finance Receivables Originated | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion, Including Held for Sale | 14,000,000 | |||||||
Securitizations | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Carrying Value | 3,643,956,000 | [1] | ||||||
Securitizations | Variable Interest Entity, Primary Beneficiary | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Carrying Value | 3,600,000,000 | 5,200,000,000 | ||||||
First Mortgage | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivables Real Estate Loans as Percentage of Net Finance Receivables Outstanding | 36.00% | |||||||
First Mortgage | Residential Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 227,000,000 | |||||||
Second Mortgage | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivables Real Estate Loans as Percentage of Net Finance Receivables Outstanding | 64.00% | |||||||
Second Mortgage | Residential Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 398,400,000 | |||||||
Residential Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
TDR gross finance receivables | 195,602,000 | [2],[3] | 1,366,346,000 | [4] | ||||
Residential Portfolio Segment | Real Estate Loans Held for Sale | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
TDR gross finance receivables | 90,800,000 | |||||||
Financing Receivable, Modifications, Recorded Investment | 91,100,000 | |||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 248,119,000 | |||||||
Impaired Financing Receivable, Interest Income, Accrual Method | 4,500,000 | |||||||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 6,200,000 | |||||||
Financing Receivable, Modifications, Post-Modification Recorded Investment | 6,700,000 | |||||||
Financing Receivable, Modifications, Number of Contracts | 94 | |||||||
Number of TDR accounts | 49 | |||||||
TDR net finance receivables | $2,700,000 | |||||||
Corporate Joint Venture | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | ||||||
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | |||||||
[2] | TDR real estate loan gross finance receivables at December 31, 2014 include $90.8 million of TDR finance receivables held for sale. | |||||||
[3] | (a)As defined earlier in this Note. | |||||||
[4] | TDR real estate loan net finance receivables at December 31, 2014 include $91.1 million of TDR finance receivables held for sale. | |||||||
[5] | TDR real estate loan average net receivables for 2014 include $248.1 million of TDR average net receivables held for sale, which reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | |||||||
[6] | TDR real estate loan finance charges recognized for 2014 include $4.5 million of interest income on TDR finance receivables held for sale. | |||||||
[7] | TDR real estate loan net finance receivables for 2014 include $6.2 million of pre-modification and $6.7 million of post-modification TDR net finance receivables held for sale. | |||||||
[8] | Number of new TDR real estate loan accounts for 2014 includes 94 new TDR accounts that were held for sale. | |||||||
[9] | TDR real estate loan net finance receivables for 2014 that defaulted during the previous 12 month period include 49 TDR accounts that were held for sale totaling $2.7 million. | |||||||
[10] | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | |||||||
[11] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. |
Finance_Receivables_By_Type_De
Finance Receivables - By Type (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross receivables | $7,076,828 | [1] | $11,584,706 | [1] |
Unearned finance charges and points and fees | -770,611 | -571,554 | ||
Accrued finance charges | 101,690 | 91,069 | ||
Deferred origination costs | 44,111 | 39,638 | ||
Total | 6,452,018 | 11,143,859 | ||
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross receivables | 4,462,123 | [1] | 3,632,462 | [1] |
Unearned finance charges and points and fees | -764,473 | -559,902 | ||
Accrued finance charges | 58,102 | 48,008 | ||
Deferred origination costs | 44,036 | 39,364 | ||
Total | 3,799,788 | 3,159,932 | ||
SpringCastle Portfolio | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross receivables | 1,941,334 | [1] | ||
Accrued finance charges | 37,856 | |||
Total | 1,979,190 | 0 | ||
Real Estate Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross receivables | 621,105 | [1] | 7,843,787 | [1] |
Unearned finance charges and points and fees | -1,173 | -1,208 | ||
Accrued finance charges | 5,328 | 42,163 | ||
Deferred origination costs | 75 | 274 | ||
Total | 625,335 | 7,885,016 | ||
Retail Sales Finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross receivables | 52,266 | [1] | 108,457 | [1] |
Unearned finance charges and points and fees | -4,965 | -10,444 | ||
Accrued finance charges | 404 | 898 | ||
Total | $47,705 | $98,911 | ||
[1] | Gross receivables are defined as follows:•finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its fair value;•finance receivables originated subsequent to the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and•purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. |
Finance_Receivables_Maturities
Finance Receivables - Maturities By Type (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Maturities of net finance receivables by type | ||
2015 | $1,059,491 | |
2016 | 1,414,016 | |
2017 | 1,157,507 | |
2018 | 696,652 | |
2019 | 307,716 | |
2020 and thereafter | 1,816,636 | |
Net finance receivables | 6,452,018 | 11,143,859 |
Unused credit lines | 385,767 | 37,334 |
Personal Loans | ||
Maturities of net finance receivables by type | ||
2015 | 933,835 | |
2016 | 1,242,892 | |
2017 | 973,933 | |
2018 | 500,851 | |
2019 | 103,485 | |
2020 and thereafter | 44,792 | |
Unused credit lines | 1,471 | 4,996 |
Real Estate Loans | ||
Maturities of net finance receivables by type | ||
2015 | 3,887 | |
2016 | 8,014 | |
2017 | 14,044 | |
2018 | 17,049 | |
2019 | 17,100 | |
2020 and thereafter | 565,241 | |
Unused credit lines | 30,646 | 32,338 |
Retail Sales Finance | ||
Maturities of net finance receivables by type | ||
2015 | 11,313 | |
2016 | 13,089 | |
2017 | 8,535 | |
2018 | 4,880 | |
2019 | 2,554 | |
2020 and thereafter | 7,334 | |
SpringCastle Portfolio | ||
Maturities of net finance receivables by type | ||
2015 | 110,456 | |
2016 | 150,021 | |
2017 | 160,995 | |
2018 | 173,872 | |
2019 | 184,577 | |
2020 and thereafter | 1,199,269 | |
Net finance receivables | 1,979,190 | 0 |
Unused credit lines | $353,650 | $0 |
Finance_Receivables_Unused_Lin
Finance Receivables - Unused Lines Of Credit Extended To Customers (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused credit lines | $385,767 | $37,334 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused credit lines | 1,471 | 4,996 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused credit lines | 30,646 | 32,338 |
SpringCastle Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unused credit lines | $353,650 | $0 |
Finance_Receivables_Geographic
Finance Receivables - Geographic Diversification (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
GEOGRAPHIC DIVERSIFICATION | |||
Total | $6,452,018 | $11,143,859 | |
Finance receivable | Geographic concentration | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 6,452,018 | 11,143,858 | [1] |
Concentration (as a percent) | 100.00% | 100.00% | [1] |
Finance receivable | Geographic concentration | North Carolina | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 634,197 | 800,491 | [1] |
Concentration (as a percent) | 10.00% | 7.00% | [1] |
Finance receivable | Geographic concentration | California | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 533,073 | 1,091,734 | [1] |
Concentration (as a percent) | 8.00% | 10.00% | [1] |
Finance receivable | Geographic concentration | Illinois | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 411,740 | 605,565 | [1] |
Concentration (as a percent) | 6.00% | 5.00% | [1] |
Finance receivable | Geographic concentration | Pennsylvania | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 388,024 | 527,225 | [1] |
Concentration (as a percent) | 6.00% | 5.00% | [1] |
Finance receivable | Geographic concentration | Ohio | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 387,657 | 652,540 | [1] |
Concentration (as a percent) | 6.00% | 6.00% | [1] |
Finance receivable | Geographic concentration | Virginia | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 348,644 | 683,241 | [1] |
Concentration (as a percent) | 5.00% | 6.00% | [1] |
Finance receivable | Geographic concentration | Indiana | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 344,329 | 432,235 | [1] |
Concentration (as a percent) | 5.00% | 4.00% | [1] |
Finance receivable | Geographic concentration | Florida | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | 327,719 | 716,802 | [1] |
Concentration (as a percent) | 5.00% | 6.00% | [1] |
Finance receivable | Geographic concentration | Other | |||
GEOGRAPHIC DIVERSIFICATION | |||
Total | $3,076,635 | $5,634,025 | [1] |
Concentration (as a percent) | 49.00% | 51.00% | [1] |
[1] | *December 31, 2013 concentrations of net finance receivables are presented in the order of December 31, 2014 state concentrations. |
Finance_Receivables_By_Type_An
Finance Receivables - By Type And By Days Delinquent (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Net finance receivables: | ||
60-89 days past due | $80,098 | $126,365 |
90-119 days past due | 57,830 | 91,631 |
120-149 days past due | 45,906 | 74,301 |
150-179 days past due | 38,571 | 60,398 |
180 days or more past due | 16,004 | 354,110 |
Total delinquent finance receivables | 238,409 | 706,805 |
Current | 6,081,293 | 10,211,660 |
30-59 days past due | 132,316 | 225,394 |
Net finance receivables | 6,452,018 | 11,143,859 |
Personal Loans | ||
Net finance receivables: | ||
60-89 days past due | 36,836 | 28,297 |
90-119 days past due | 29,332 | 22,648 |
120-149 days past due | 24,200 | 18,662 |
150-179 days past due | 20,518 | 14,618 |
180 days or more past due | 1,697 | 934 |
Total delinquent finance receivables | 112,583 | 85,159 |
Current | 3,631,891 | 3,027,460 |
30-59 days past due | 55,314 | 47,313 |
Net finance receivables | 3,799,788 | 3,159,932 |
SpringCastle Portfolio | ||
Net finance receivables: | ||
60-89 days past due | 30,680 | |
90-119 days past due | 18,988 | |
120-149 days past due | 15,689 | |
150-179 days past due | 14,172 | |
180 days or more past due | 2,248 | |
Total delinquent finance receivables | 81,777 | |
Current | 1,839,595 | |
30-59 days past due | 57,818 | |
Net finance receivables | 1,979,190 | 0 |
Real Estate Loans | ||
Net finance receivables: | ||
60-89 days past due | 12,039 | 96,778 |
90-119 days past due | 9,039 | 67,966 |
120-149 days past due | 5,516 | 54,882 |
150-179 days past due | 3,573 | 45,040 |
180 days or more past due | 12,034 | 353,003 |
Total delinquent finance receivables | 42,201 | 617,669 |
Current | 564,961 | 7,092,107 |
30-59 days past due | 18,173 | 175,240 |
Net finance receivables | 625,335 | 7,885,016 |
Retail Sales Finance | ||
Net finance receivables: | ||
60-89 days past due | 543 | 1,290 |
90-119 days past due | 471 | 1,017 |
120-149 days past due | 501 | 757 |
150-179 days past due | 308 | 740 |
180 days or more past due | 25 | 173 |
Total delinquent finance receivables | 1,848 | 3,977 |
Current | 44,846 | 92,093 |
30-59 days past due | 1,011 | 2,841 |
Net finance receivables | $47,705 | $98,911 |
Finance_Receivables_Performing
Finance Receivables - Performing And NonPerforming By Type (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Performing and nonperforming net finance receivables by type | ||
Total | $6,452,018 | $11,143,859 |
Personal Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 3,799,788 | 3,159,932 |
SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Total | 1,979,190 | 0 |
Real Estate Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 625,335 | 7,885,016 |
Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Total | 47,705 | 98,911 |
Performing | ||
Performing and nonperforming net finance receivables by type | ||
Total | 6,293,707 | 10,563,419 |
Performing | Personal Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 3,724,041 | 3,103,070 |
Performing | SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Total | 1,928,093 | |
Performing | Real Estate Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 595,173 | 7,364,125 |
Performing | Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Total | 46,400 | 96,224 |
Nonperforming | ||
Performing and nonperforming net finance receivables by type | ||
Total | 158,311 | 580,440 |
Nonperforming | Personal Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 75,747 | 56,862 |
Nonperforming | SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Total | 51,097 | |
Nonperforming | Real Estate Loans | ||
Performing and nonperforming net finance receivables by type | ||
Total | 30,162 | 520,891 |
Nonperforming | Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Total | $1,305 | $2,687 |
Finance_Receivables_Purchased_
Finance Receivables - Purchased Credit Impaired Held For Investment And Held For Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying amount, net of allowance | $432,589 | [1] | $1,250,621 |
Outstanding balance | 779,074 | [2] | 1,782,271 |
Allowance for purchased credit impaired finance receivable losses | 4,534 | 57,261 | |
SpringCastle Portfolio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying amount, net of allowance | 339,795 | [1] | |
Outstanding balance | 628,091 | [2] | |
FA Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying amount, net of allowance | 92,794 | [1] | 1,250,621 |
Outstanding balance | 150,983 | [2] | 1,782,271 |
Allowance for purchased credit impaired finance receivable losses | $4,534 | $57,261 | |
[1] | The carrying amount of purchased credit impaired FA Loans at December 31, 2014 includes $67.5 million of purchased credit impaired finance receivables held for sale. | ||
[2] | The outstanding balance of purchased credit impaired FA Loans at December 31, 2014 includes $99.3 million of purchased credit impaired finance receivables held for sale. |
Finance_Receivables_Changes_In
Finance Receivables - Changes In Accretable Yield For Purchased Credit Impaired (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Changes in accretable yield for purchased credit impaired finance receivables | ||||||
Balance at beginning of period | $766,927 | $624,879 | $464,415 | |||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | [1] | ||||
Accretion | -116,583 | [2] | -128,167 | -131,442 | ||
Reclassifications from nonaccretable difference | 331,095 | [3] | 303,328 | [3] | 318,333 | [3] |
Transfers due to finance receivables sold | -651,108 | |||||
Disposals of finance receivables | -30,021 | [4] | -33,113 | [4] | -26,427 | [4] |
Balance at end of period | 560,254 | 766,927 | 624,879 | |||
SpringCastle Portfolio | ||||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||||
Accretable yield for SpringCastle Portfolio contributed to SFC (a) | 259,944 | [1] | ||||
Accretion | -36,707 | [2] | ||||
Reclassifications from nonaccretable difference | 331,712 | [3] | ||||
Transfers due to finance receivables sold | 0 | |||||
Disposals of finance receivables | -14,128 | [4] | ||||
Balance at end of period | 540,821 | |||||
FA Loans | ||||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||||
Balance at beginning of period | 766,927 | 624,879 | 464,415 | |||
Accretion | -79,876 | [2] | -128,167 | -131,442 | ||
Reclassifications from nonaccretable difference | -617 | [3] | 303,328 | [3] | 318,333 | [3] |
Transfers due to finance receivables sold | -651,108 | |||||
Disposals of finance receivables | -15,893 | [4] | -33,113 | [4] | -26,427 | [4] |
Balance at end of period | $19,433 | $766,927 | $624,879 | |||
[1] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. | |||||
[2] | Accretion on our purchased credit impaired FA Loans for 2014 includes $14.0 million of accretion on purchased credit impaired finance receivables held for sale, which is reported as interest income on finance receivables held for sale originated as held for investment. | |||||
[3] | Reclassifications from nonaccretable difference represent the increases in accretion resulting from higher estimated undiscounted cash flows. | |||||
[4] | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged-off during the period. |
Finance_Receivables_TDR_Held_F
Finance Receivables - TDR Held For Investment And Held For Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
TDR FINANCE RECEIVABLES | ||||
TDR gross finance receivables | $229,150 | [1],[2] | $1,381,345 | [3] |
TDR net finance receivables | 228,292 | [3] | 1,386,039 | |
Allowance for TDR finance receivable losses | 36,064 | 177,934 | ||
Personal Loans | ||||
TDR FINANCE RECEIVABLES | ||||
TDR gross finance receivables | 22,441 | [1],[2] | 14,999 | [3] |
TDR net finance receivables | 22,021 | [3] | 14,718 | |
Allowance for TDR finance receivable losses | 1,522 | 923 | ||
SpringCastle Portfolio | ||||
TDR FINANCE RECEIVABLES | ||||
TDR gross finance receivables | 11,107 | [1],[2] | 0 | [3] |
TDR net finance receivables | 9,905 | [3] | 0 | |
Allowance for TDR finance receivable losses | 2,673 | 0 | ||
Real Estate Loans | ||||
TDR FINANCE RECEIVABLES | ||||
TDR gross finance receivables | 195,602 | [1],[2] | 1,366,346 | [3] |
TDR net finance receivables | 196,366 | [3] | 1,371,321 | |
Allowance for TDR finance receivable losses | $31,869 | $177,011 | ||
[1] | TDR real estate loan gross finance receivables at December 31, 2014 include $90.8 million of TDR finance receivables held for sale. | |||
[2] | (a)As defined earlier in this Note. | |||
[3] | TDR real estate loan net finance receivables at December 31, 2014 include $91.1 million of TDR finance receivables held for sale. |
Finance_Receivables_TDR_Recogn
Finance Receivables - TDR Recognized (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
TDR average net receivables and finance charges recognized on TDR finance receivables | ||||
TDR average net receivables | $972,603 | [1] | $1,130,989 | $580,987 |
TDR finance charges recognized | 49,989 | [2] | 64,157 | 32,288 |
Personal Loans | ||||
TDR average net receivables and finance charges recognized on TDR finance receivables | ||||
TDR average net receivables | 16,459 | [1] | 14,603 | 13,261 |
TDR finance charges recognized | 1,823 | [2] | 1,228 | 1,212 |
SpringCastle Portfolio | ||||
TDR average net receivables and finance charges recognized on TDR finance receivables | ||||
TDR average net receivables | 5,178 | [1] | 0 | 0 |
TDR finance charges recognized | 594 | [2] | 0 | 0 |
Real Estate Loans Held for Investment | Real Estate Loans | ||||
TDR average net receivables and finance charges recognized on TDR finance receivables | ||||
TDR average net receivables | 950,966 | [1] | 1,116,386 | 567,726 |
TDR finance charges recognized | $47,572 | [2] | $62,929 | $31,076 |
[1] | TDR real estate loan average net receivables for 2014 include $248.1 million of TDR average net receivables held for sale, which reflect a five-month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. | |||
[2] | TDR real estate loan finance charges recognized for 2014 include $4.5 million of interest income on TDR finance receivables held for sale. |
Finance_Receivables_TDR_New_Vo
Finance Receivables - TDR New Volume (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
account | account | account | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre-modification TDR net finance receivables | $241,308 | [1] | $587,936 | $567,016 |
Post-modification TDR net finance receivables | 229,661 | [1] | 605,861 | 572,796 |
Number of TDR accounts | 7,735 | [2] | 10,325 | 11,334 |
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre-modification TDR net finance receivables | 17,595 | [1] | 14,506 | 18,225 |
Post-modification TDR net finance receivables | 16,108 | [1] | 12,388 | 15,536 |
Number of TDR accounts | 4,206 | [2] | 3,240 | 5,639 |
SpringCastle Portfolio | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre-modification TDR net finance receivables | 10,363 | [1] | 0 | 0 |
Post-modification TDR net finance receivables | 10,258 | [1] | 0 | 0 |
Number of TDR accounts | 1,155 | [2] | 0 | 0 |
Residential Portfolio Segment | Real Estate Loans Held for Investment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre-modification TDR net finance receivables | 213,350 | [1] | 573,430 | 548,791 |
Post-modification TDR net finance receivables | $203,295 | [1] | $593,473 | $557,260 |
Number of TDR accounts | 2,374 | [2] | 7,085 | 5,695 |
[1] | TDR real estate loan net finance receivables for 2014 include $6.2 million of pre-modification and $6.7 million of post-modification TDR net finance receivables held for sale. | |||
[2] | Number of new TDR real estate loan accounts for 2014 includes 94 new TDR accounts that were held for sale. |
Finance_Receivables_Held_For_I
Finance Receivables - Held For Investment And Held For Sale Modified As TDR (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
account | account | account | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR net finance receivables | $34,414 | [1],[2] | $70,105 | [1] | $67,250 | [1] |
Number of TDR accounts | 718 | [2] | 1,283 | 1,032 | ||
Personal Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR net finance receivables | 499 | [1],[2] | 1,294 | [1] | 1,154 | [1] |
Number of TDR accounts | 141 | [2] | 355 | 438 | ||
SpringCastle Portfolio | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR net finance receivables | 566 | [1],[2] | 0 | [1] | 0 | [1] |
Number of TDR accounts | 53 | [2] | 0 | 0 | ||
Residential Portfolio Segment | Real Estate Loans Held for Investment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR net finance receivables | $33,349 | [1],[2] | $68,811 | [1] | $66,096 | [1] |
Number of TDR accounts | 524 | [2] | 928 | 594 | ||
[1] | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | |||||
[2] | TDR real estate loan net finance receivables for 2014 that defaulted during the previous 12 month period include 49 TDR accounts that were held for sale totaling $2.7 million. |
Allowance_for_Finance_Receivab2
Allowance for Finance Receivable Losses - Changes in Allowance for Finance Receivable Losses by Type (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||
Mar. 31, 2014 | Jun. 13, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 31, 2013 | Jul. 31, 2014 | ||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at beginning of period | $332,195,000 | $182,701,000 | $69,319,000 | $332,195,000 | $182,701,000 | $69,319,000 | ||||||||||||||
Provision for finance receivable losses | 94,186,000 | 92,114,000 | 74,246,000 | 107,012,000 | 133,509,000 | 101,390,000 | 64,384,000 | 94,231,000 | 367,558,000 | 393,514,000 | 340,962,000 | |||||||||
Charge-offs | -324,825,000 | [1] | -316,872,000 | [2] | -279,398,000 | |||||||||||||||
Recoveries | 38,311,000 | [3] | 73,604,000 | [4] | 53,119,000 | |||||||||||||||
Transfers to finance receivables held for sale | -239,726,000 | [5] | -752,000 | [6] | -1,301,000 | [7] | ||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 710,000 | [8] | ||||||||||||||||||
Balance at end of period | 174,223,000 | 332,195,000 | 174,223,000 | 332,195,000 | 182,701,000 | |||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 37,200,000 | |||||||||||||||||||
Adjustment for the subsequent buyback of previously charged-off finance receivables sold | 200,000 | 4,000,000 | ||||||||||||||||||
Finance receivables transferred from held for investment to held for sale | 6,600,000,000 | 17,300,000 | 180,900,000 | |||||||||||||||||
Transfers to finance receivables held for sale which have a specific allowance | 18,000,000 | 77,800,000 | ||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at end of period | 71,668,000 | 153,084,000 | 71,668,000 | 153,084,000 | ||||||||||||||||
Adjustments | Consolidated VIEs | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at end of period | -26,800,000 | -26,800,000 | ||||||||||||||||||
Personal Loans | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at beginning of period | 94,323,000 | 66,580,000 | 39,522,000 | 94,323,000 | 66,580,000 | 39,522,000 | ||||||||||||||
Provision for finance receivable losses | 202,735,000 | 129,839,000 | 114,288,000 | |||||||||||||||||
Charge-offs | -191,817,000 | [1] | -148,980,000 | [2] | -119,383,000 | |||||||||||||||
Recoveries | 25,288,000 | [3] | 47,636,000 | [4] | 33,260,000 | |||||||||||||||
Transfers to finance receivables held for sale | -752,000 | [6] | -1,107,000 | [7] | ||||||||||||||||
Balance at end of period | 130,529,000 | 94,323,000 | 130,529,000 | 94,323,000 | 66,580,000 | |||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 22,700,000 | |||||||||||||||||||
Threshold Period Past Due for Write-off of Financing Receivable | 180 days | |||||||||||||||||||
Personal Loans | As previously stated | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Minimum percentage of original loan amount to be received before charge-off (as a percent) | 5.00% | |||||||||||||||||||
Personal Loans | Change in charge-off policy | Adjustments | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Charge-offs | 13,300,000 | |||||||||||||||||||
SpringCastle Portfolio | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at beginning of period | 0 | 0 | ||||||||||||||||||
Provision for finance receivable losses | 48,968,000 | |||||||||||||||||||
Charge-offs | -51,763,000 | [1] | ||||||||||||||||||
Recoveries | 4,862,000 | [3] | ||||||||||||||||||
Transfers to finance receivables held for sale | 0 | [6] | 0 | [7] | ||||||||||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 710,000 | [8] | ||||||||||||||||||
Balance at end of period | 2,777,000 | 0 | 2,777,000 | 0 | ||||||||||||||||
Real Estate Loans | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at beginning of period | 236,032,000 | 113,861,000 | 28,790,000 | 236,032,000 | 113,861,000 | 28,790,000 | ||||||||||||||
Provision for finance receivable losses | 113,000,000 | 264,677,000 | 215,613,000 | |||||||||||||||||
Charge-offs | -75,936,000 | [1] | -158,392,000 | [2] | -139,980,000 | |||||||||||||||
Recoveries | 6,801,000 | [3] | 15,886,000 | [4] | 9,438,000 | |||||||||||||||
Transfers to finance receivables held for sale | -239,726,000 | [5] | ||||||||||||||||||
Balance at end of period | 40,171,000 | 236,032,000 | 40,171,000 | 236,032,000 | 113,861,000 | |||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 2,200,000 | 9,100,000 | ||||||||||||||||||
Retail Sales Finance | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Balance at beginning of period | 1,840,000 | 2,260,000 | 1,007,000 | 1,840,000 | 2,260,000 | 1,007,000 | ||||||||||||||
Provision for finance receivable losses | 2,855,000 | -1,002,000 | 11,061,000 | |||||||||||||||||
Charge-offs | -5,309,000 | [1] | -9,500,000 | [2] | -20,035,000 | |||||||||||||||
Recoveries | 1,360,000 | [3] | 10,082,000 | [4] | 10,421,000 | |||||||||||||||
Transfers to finance receivables held for sale | -194,000 | [7] | ||||||||||||||||||
Balance at end of period | 746,000 | 1,840,000 | 746,000 | 1,840,000 | 2,260,000 | |||||||||||||||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 5,400,000 | |||||||||||||||||||
Corporate Joint Venture | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | 47.00% | |||||||||||||||||
Borrowers in Bankruptcy Status | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | ||||||||||||||||||||
Charge-offs | ($4,400,000) | [2] | ||||||||||||||||||
[1] | Charge-offs during 2014 included a $4.4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. | |||||||||||||||||||
[2] | Effective March 31, 2013, we charge off to the allowance for finance receivable losses personal loans that are 180 days past due. Previously, we charged-off to the allowance for finance receivable losses personal loans on which payments received in the prior six months totaled less than 5% of the original loan amount. As a result of this change, we recorded $13.3 million of additional charge-offs in March 2013. | |||||||||||||||||||
[3] | Recoveries during 2014 included $2.2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014, net of a $0.2 million reserve for subsequent buybacks. | |||||||||||||||||||
[4] | Recoveries in 2013 included $37.2 million ($22.7 million of personal loan recoveries, $9.1 million of real estate loan recoveries, and $5.4 million of retail sales finance recoveries) resulting from a sale of previously charged-off finance receivables in June 2013, net of a $4.0 million adjustment for the subsequent buyback of certain finance receivables. | |||||||||||||||||||
[5] | During 2014, we reduced the carrying value of certain real estate loans to $6.6 billion as a result of the transfers of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | |||||||||||||||||||
[6] | During the fourth quarter of 2013, we decreased the allowance for finance receivable losses as a result of the transfer of $18.0 million of personal loans of our lending operations in Puerto Rico from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future | |||||||||||||||||||
[7] | During the first quarter of 2012, we decreased the allowance for finance receivable losses as a result of the transfers of $77.8 million of finance receivables from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | |||||||||||||||||||
[8] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio. |
Allowance_for_Finance_Receivab3
Allowance for Finance Receivable Losses - Carrying Value Charged-off (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for finance receivable losses for finance receivables: | ||||||
Financing Receivable Purchased Credit Impaired Financing Receivable Carrying Amount, Gross Charge Off | $15,331 | [1] | $41,358 | [1] | $38,271 | [1] |
Residential Portfolio Segment | ||||||
Allowance for finance receivable losses for finance receivables: | ||||||
Financing Receivable Purchased Credit Impaired Financing Receivable Carrying Amount, Gross Charge Off | $13,156 | |||||
[1] | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. |
Allowance_for_Finance_Receivab4
Allowance for Finance Receivable Losses - By Type And By Impairment Method (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | $133,625 | $97,000 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 4,534 | 57,261 | ||
Individually evaluated for impairment (TDR finance receivables) | 36,064 | 177,934 | ||
Total | 174,223 | 332,195 | 182,701 | 69,319 |
Finance receivables: | ||||
Collectively evaluated for impairment | 5,945,197 | 8,449,938 | ||
Purchased credit impaired finance receivables | 369,622 | 1,307,882 | ||
TDR finance receivables | 137,199 | 1,386,039 | ||
Net finance receivables | 6,452,018 | 11,143,859 | ||
Personal Loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 129,007 | 93,400 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Individually evaluated for impairment (TDR finance receivables) | 1,522 | 923 | ||
Total | 130,529 | 94,323 | 66,580 | 39,522 |
Finance receivables: | ||||
Collectively evaluated for impairment | 3,777,767 | 3,145,214 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 22,021 | 14,718 | ||
Net finance receivables | 3,799,788 | 3,159,932 | ||
SpringCastle Portfolio | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 104 | 0 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Individually evaluated for impairment (TDR finance receivables) | 2,673 | 0 | ||
Total | 2,777 | 0 | ||
Finance receivables: | ||||
Collectively evaluated for impairment | 1,629,490 | 0 | ||
Purchased credit impaired finance receivables | 339,795 | 0 | ||
TDR finance receivables | 9,905 | 0 | ||
Net finance receivables | 1,979,190 | 0 | ||
Real Estate Loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 3,768 | 1,760 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 4,534 | 57,261 | ||
Individually evaluated for impairment (TDR finance receivables) | 31,869 | 177,011 | ||
Total | 40,171 | 236,032 | 113,861 | 28,790 |
Finance receivables: | ||||
Collectively evaluated for impairment | 490,235 | 5,205,813 | ||
Purchased credit impaired finance receivables | 29,827 | 1,307,882 | ||
TDR finance receivables | 105,273 | 1,371,321 | ||
Net finance receivables | 625,335 | 7,885,016 | ||
Retail Sales Finance | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 746 | 1,840 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Individually evaluated for impairment (TDR finance receivables) | 0 | 0 | ||
Total | 746 | 1,840 | 2,260 | 1,007 |
Finance receivables: | ||||
Collectively evaluated for impairment | 47,705 | 98,911 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 0 | 0 | ||
Net finance receivables | $47,705 | $98,911 |
Finance_Receivables_Held_for_S1
Finance Receivables Held for Sale (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Aug. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans Receivable Held-for-sale, Net | $205,000,000 | ||||
Finance receivables held for sale originated as held for investment | 60,089,000 | 333,000 | 2,740,000 | ||
Finance receivables transferred from held for investment to held for sale | 6,600,000,000 | 17,300,000 | 180,900,000 | ||
Cost of mortgages sold | 6,300,000,000 | 18,000,000 | 171,000,000 | ||
Net gain (loss) on sales of real estate loans and related trust assets | 608,400,000 | 701,629,000 | [1] | 0 | 0 |
Holdback provision receivable on loans sold | 64,400,000 | ||||
Finance receivables transferred from held for sale back to held for investment | 0 | 0 | 1,353,000 | ||
Real Estate Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net gain (loss) on sales of real estate loans and related trust assets | 701,600,000 | ||||
Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net gain (loss) on sales of real estate loans and related trust assets | ($1,800,000) | $4,500,000 | |||
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | $582,706,000 | $496,658,000 | ||
Unrealized Gains | 19,731,000 | 10,412,000 | ||
Unrealized Losses | -1,623,000 | -3,706,000 | ||
Fair Value | 600,814,000 | 503,364,000 | ||
Interest in a limited partnership | 500,000 | 600,000 | ||
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss | 0 | 0 | ||
Net impairment losses recognized in net income (loss) | 0 | |||
Bonds: | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 573,564,000 | 486,570,000 | ||
Unrealized Gains | 19,604,000 | 10,412,000 | ||
Unrealized Losses | -1,465,000 | -3,542,000 | ||
Fair Value | 591,703,000 | 493,440,000 | ||
U.S. government and government sponsored entities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 60,704,000 | 58,748,000 | ||
Unrealized Gains | 2,638,000 | 565,000 | ||
Unrealized Losses | -11,000 | -680,000 | ||
Fair Value | 63,331,000 | 58,633,000 | ||
Obligations of states, municipalities, and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 99,228,000 | 101,118,000 | ||
Unrealized Gains | 2,558,000 | 1,703,000 | ||
Unrealized Losses | -103,000 | -76,000 | ||
Fair Value | 101,683,000 | 102,745,000 | ||
Certificates of deposit and commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 1,125,000 | [1] | ||
Unrealized Gains | 0 | [1] | ||
Unrealized Losses | 0 | [1] | ||
Fair Value | 1,125,000 | [1] | ||
AFS pledged as collateral | 1,000,000 | |||
Corporate debt | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 256,049,000 | 233,977,000 | ||
Unrealized Gains | 11,833,000 | 6,126,000 | ||
Unrealized Losses | -954,000 | -2,187,000 | ||
Fair Value | 266,928,000 | 237,916,000 | ||
RMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 70,514,000 | 81,259,000 | ||
Unrealized Gains | 2,470,000 | 1,923,000 | ||
Unrealized Losses | -27,000 | -559,000 | ||
Fair Value | 72,957,000 | 82,623,000 | ||
Net impairment losses recognized in net income (loss) | 26,000 | |||
CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 24,610,000 | 7,487,000 | ||
Unrealized Gains | 72,000 | 76,000 | ||
Unrealized Losses | -253,000 | -16,000 | ||
Fair Value | 24,429,000 | 7,547,000 | ||
CDO/ABS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 61,334,000 | 3,981,000 | ||
Unrealized Gains | 33,000 | 19,000 | ||
Unrealized Losses | -117,000 | -24,000 | ||
Fair Value | 61,250,000 | 3,976,000 | ||
Preferred stocks | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 7,163,000 | 7,844,000 | ||
Unrealized Gains | 83,000 | 0 | ||
Unrealized Losses | -152,000 | -39,000 | ||
Fair Value | 7,094,000 | 7,805,000 | ||
Other long-term investments | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 1,305,000 | [2] | 1,394,000 | [2] |
Unrealized Gains | 44,000 | [2] | 0 | [2] |
Unrealized Losses | -6,000 | [2] | -125,000 | [2] |
Fair Value | 1,343,000 | [2] | 1,269,000 | [2] |
Common stocks | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/Amortized Cost | 674,000 | [3] | 850,000 | [3] |
Unrealized Gains | 0 | [3] | ||
Unrealized Losses | 0 | [3] | ||
Fair Value | $674,000 | [3] | $850,000 | [3] |
[1] | Includes certificates of deposit totaling $1.0 million pledged as collateral, primarily to support bank lines of credit. | |||
[2] | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at December 31, 2014 and $0.6 million at December 31, 2013). | |||
[3] | Consists of Federal Home Loan Bank common stock, which is classified as a restricted investment and carried at cost. |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value | |||
Less Than 12 Months | $140,154,000 | $157,356,000 | |
12 Months or Longer | 9,852,000 | 11,772,000 | |
Total | 150,006,000 | 169,128,000 | |
Unrealized Losses | |||
Less Than 12 Months | -1,402,000 | -3,054,000 | |
12 Months or Longer | -221,000 | -652,000 | |
Total | -1,623,000 | -3,706,000 | |
Other-than-temporary impairment credit loss | |||
Net impairment losses recognized in net income (loss) | 0 | ||
Bonds: | |||
Fair Value | |||
Less Than 12 Months | 134,083,000 | 148,282,000 | |
12 Months or Longer | 9,747,000 | 11,772,000 | |
Total | 143,830,000 | 160,054,000 | |
Unrealized Losses | |||
Less Than 12 Months | -1,250,000 | -2,890,000 | |
12 Months or Longer | -215,000 | -652,000 | |
Total | -1,465,000 | -3,542,000 | |
U.S. government and government sponsored entities | |||
Fair Value | |||
Less Than 12 Months | 44,314,000 | ||
12 Months or Longer | 970,000 | 0 | |
Total | 970,000 | 44,314,000 | |
Unrealized Losses | |||
Less Than 12 Months | -680,000 | ||
12 Months or Longer | -11,000 | 0 | |
Total | -11,000 | -680,000 | |
Obligations of states, municipalities, and political subdivisions | |||
Fair Value | |||
Less Than 12 Months | 27,395,000 | 14,220,000 | |
12 Months or Longer | 624,000 | ||
Total | 28,019,000 | 14,220,000 | |
Unrealized Losses | |||
Less Than 12 Months | -100,000 | -76,000 | |
12 Months or Longer | -3,000 | ||
Total | -103,000 | -76,000 | |
Corporate debt | |||
Fair Value | |||
Less Than 12 Months | 35,558,000 | 65,809,000 | |
12 Months or Longer | 6,119,000 | 11,772,000 | |
Total | 41,677,000 | 77,581,000 | |
Unrealized Losses | |||
Less Than 12 Months | -828,000 | -1,535,000 | |
12 Months or Longer | -126,000 | -652,000 | |
Total | -954,000 | -2,187,000 | |
RMBS | |||
Fair Value | |||
Less Than 12 Months | 8,591,000 | 18,288,000 | |
12 Months or Longer | 0 | 0 | |
Total | 8,591,000 | 18,288,000 | |
Unrealized Losses | |||
Less Than 12 Months | -27,000 | -559,000 | |
12 Months or Longer | 0 | 0 | |
Total | -27,000 | -559,000 | |
Other-than-temporary impairment credit loss | |||
Net impairment losses recognized in net income (loss) | 26,000 | ||
CMBS | |||
Fair Value | |||
Less Than 12 Months | 16,426,000 | 2,993,000 | |
12 Months or Longer | 2,034,000 | ||
Total | 18,460,000 | 2,993,000 | |
Unrealized Losses | |||
Less Than 12 Months | -178,000 | -16,000 | |
12 Months or Longer | -75,000 | ||
Total | -253,000 | -16,000 | |
CDO/ABS | |||
Fair Value | |||
Less Than 12 Months | 46,113,000 | 2,658,000 | |
12 Months or Longer | 0 | 0 | |
Total | 46,113,000 | 2,658,000 | |
Unrealized Losses | |||
Less Than 12 Months | -117,000 | -24,000 | |
12 Months or Longer | 0 | 0 | |
Total | -117,000 | -24,000 | |
Preferred stocks | |||
Fair Value | |||
Less Than 12 Months | 6,071,000 | 7,805,000 | |
12 Months or Longer | 0 | ||
Total | 6,071,000 | 7,805,000 | |
Unrealized Losses | |||
Less Than 12 Months | -152,000 | -39,000 | |
12 Months or Longer | 0 | ||
Total | -152,000 | -39,000 | |
Other long-term investments | |||
Fair Value | |||
Less Than 12 Months | 1,269,000 | ||
12 Months or Longer | 105,000 | ||
Total | 105,000 | 1,269,000 | |
Unrealized Losses | |||
Less Than 12 Months | -125,000 | ||
12 Months or Longer | -6,000 | ||
Total | -6,000 | -125,000 | |
Corporate debt, RMBS, and CMBS | |||
Other-than-temporary impairment credit loss | |||
Net impairment losses recognized in net income (loss) | $900,000 |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities | |||
Balance at beginning of period | $1,523 | $1,650 | $3,725 |
Impairment previously recognized | 26 | 924 | |
Realized due to dispositions with no prior intention to sell | -205 | -153 | -2,999 |
Balance at end of period | 1,318 | 1,523 | 1,650 |
Available-for-sale securities sold or redeemed | |||
Fair value | 260,418 | 253,705 | 107,654 |
Realized gains | 8,946 | 4,176 | 1,546 |
Realized losses | -1,131 | -2,002 | -1,222 |
Net realized gains (losses) | $7,815 | $2,174 | $324 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Fair Value | |
Due in 1 year or less | $32,646 |
Due after 1 year through 5 years | 179,521 |
Due after 5 years through 10 years | 80,242 |
Due after 10 years | 140,658 |
Mortgage-backed, asset-backed, and collateralized securities | 158,636 |
Fair Value | 591,703 |
Amortized Cost | |
Due in 1 year or less | 32,188 |
Due after 1 year through 5 years | 176,060 |
Due after 5 years through 10 years | 77,809 |
Due after 10 years | 131,049 |
Mortgage-backed, asset-backed, and collateralized securities | 156,458 |
Amortized Cost | $573,564 |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trading securities | |||
Trading securities | $2,320,517 | $51,654 | |
Realized gains (losses) on trading securities | |||
Net unrealized gains (losses) on trading securities held at year end | -9,202 | -476 | 3,344 |
Net realized gains (losses) on trading securities sold or redeemed during the year | 4,845 | 214 | 239 |
Total | -4,357 | -262 | 3,583 |
U.S. government and government sponsored entities | |||
Trading securities | |||
Trading securities | 302,084 | ||
Obligations of states, municipalities, and political subdivisions | |||
Trading securities | |||
Trading securities | 13,788 | ||
Certificates of deposit and commercial paper | |||
Trading securities | |||
Trading securities | 237,637 | 0 | |
Non-U.S. government and government sponsored entities | |||
Trading securities | |||
Trading securities | 19,613 | 0 | |
Corporate debt | |||
Trading securities | |||
Trading securities | 1,055,682 | 1,837 | |
RMBS | |||
Trading securities | |||
Trading securities | 35,491 | 10,671 | |
CMBS | |||
Trading securities | |||
Trading securities | 148,880 | 29,897 | |
CDO/ABS | |||
Trading securities | |||
Trading securities | $507,342 | $9,249 |
Investment_Securities_Narrativ
Investment Securities (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $600,814 | $503,364 |
Insurance Regulatory Authorities Bonds on Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities | $11,600 | $10,700 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Assets [Abstract] | ||||
Current tax receivable | $104,723,000 | [1] | $28,496,000 | [1] |
Other investments | 103,546,000 | [2] | 109,465,000 | [2] |
Receivables related to sales of real estate loans and related trust assets | 78,747,000 | [3] | 0 | [3] |
Fixed assets, net | 73,440,000 | [4] | 70,031,000 | [4] |
Prepaid expenses and deferred charges | 51,869,000 | 64,466,000 | ||
Ceded insurance reserves | 21,965,000 | 21,655,000 | ||
Other intangible assets, net | 19,597,000 | 23,952,000 | ||
Real estate owned | 13,295,000 | 48,498,000 | ||
Receivables from parent and affiliates | 11,563,000 | 39,364,000 | ||
Escrow advance receivable | 8,069,000 | 23,527,000 | ||
Other | 16,033,000 | 33,722,000 | ||
Total | 502,847,000 | 463,176,000 | ||
Holdback provision receivable on loans sold | 64,400,000 | |||
Accumulated depreciation on fixed assets | $167,500,000 | $154,500,000 | ||
[1] | Current tax receivable includes current federal and state tax assets. | |||
[2] | (b)Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. | |||
[3] | Receivables related to sales of real estate loans and related trust assets includes 64.4 million of holdback provisions on the real estate loan sales as disclosed in Note 1. | |||
[4] | Fixed assets were net of accumulated depreciation of $167.5 million at December 31, 2014 and $154.5 million at December 31, 2013. |
Other_Assets_Details_2
Other Assets (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Intangible asset | |||
Gross Carrying Amount | $74,927,000 | $74,927,000 | |
Accumulated Amortization | -55,330,000 | -50,975,000 | |
Net Other Intangible Assets | 19,597,000 | 23,952,000 | |
Amortization expense | 4,400,000 | 5,100,000 | 13,600,000 |
Impairment Charges | 4,600,000 | ||
Estimated Aggregate Amortization Expense | |||
2015 | 3,931,000 | ||
2016 | 768,000 | ||
2017 | 213,000 | ||
2018 | 167,000 | ||
2019 | 161,000 | ||
Value of business acquired (“VOBAâ€) | |||
Intangible asset | |||
Gross Carrying Amount | 35,778,000 | 35,778,000 | |
Accumulated Amortization | -31,799,000 | -31,260,000 | |
Net Other Intangible Assets | 3,979,000 | 4,518,000 | |
Customer relationships | |||
Intangible asset | |||
Gross Carrying Amount | 17,879,000 | 17,879,000 | |
Accumulated Amortization | -14,847,000 | -11,559,000 | |
Net Other Intangible Assets | 3,032,000 | 6,320,000 | |
Licenses | |||
Intangible asset | |||
Gross Carrying Amount | 11,575,000 | 11,575,000 | |
Accumulated Amortization | 0 | 0 | |
Net Other Intangible Assets | 11,575,000 | 11,575,000 | |
Customer lists | |||
Intangible asset | |||
Gross Carrying Amount | 9,695,000 | 9,695,000 | |
Accumulated Amortization | -8,684,000 | -8,156,000 | |
Net Other Intangible Assets | $1,011,000 | $1,539,000 |
Transactions_with_Affiliates_o2
Transactions with Affiliates of Fortress or AIG (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Oct. 23, 2014 | Aug. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 05, 2013 | Aug. 05, 2013 | Aug. 06, 2014 | 23-May-14 | Mar. 06, 2014 | |
Related Party Transaction [Line Items] | ||||||||||
Reserves for reinsurance agreements | $58,440,000 | $61,817,000 | ||||||||
Securitized Assets Sales Price Agreed | 38,800,000 | 263,700,000 | ||||||||
Proceeds from Sale of Mortgage Servicing Rights (MSR), Percentage Received | 40.00% | 50.00% | ||||||||
Insurance coverage premium expense | 1,000,000 | 900,000 | 800,000 | |||||||
Nationstar | Owners | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Subservicing fees | 5,312,000 | 8,544,000 | 9,843,000 | |||||||
Refinancing concessions | 291,000 | 4,420,000 | ||||||||
Logan Circle Partners L P | Affiliated companies | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Costs and fees incurred for the investment management services | 1,200,000 | 1,000,000 | 1,100,000 | |||||||
Subsidiaries of American International Group Inc | Affiliated companies | Merit | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Reserves for reinsurance agreements | 43,600,000 | 45,600,000 | ||||||||
AIGFP | Affiliated companies | Cross currency interest rate derivative | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of positions | 0 | 0 | ||||||||
Notional amount of terminated instruments | 416,600,000 | 416,600,000 | ||||||||
SFI | Affiliated companies | AIGFP | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amount of cash collateral returned | 40,000,000 | |||||||||
Merrill Lynch Pierce Fenner and Smith | Affiliated companies | American General Mortgage Loan Trust 2009 1 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Securitized Assets Sales Price Agreed | 737,200,000 | |||||||||
Percentage of interest concurrently agreed to be sold by counterparty to related party | 75.00% | |||||||||
Nationstar | Affiliated companies | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Securitized Assets Sales Price Agreed | 38,800,000 | |||||||||
Spring Castle Acquisition LLC | NRZ Consumer LLC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Ownership Percentage | 30.00% | |||||||||
Other Noninterest Income | AIGFP | Affiliated companies | Cross currency interest rate derivative | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Loss recorded in other revenues - other on termination | 1,900,000 | |||||||||
Servicing Agreement | Nationstar | Affiliated companies | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accounts receivable, related parties | $1,400,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||
Jul. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 05, 2013 | Feb. 28, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Jul. 26, 2013 | Jan. 31, 2014 | Jul. 31, 2013 | Jan. 31, 2013 | Jul. 31, 2012 | Jan. 31, 2012 | Jun. 07, 2013 | |||
Related Party Transaction [Line Items] | |||||||||||||||||
Note receivable from parent | $251,489,000 | $167,989,000 | |||||||||||||||
Receivables from parent and affiliates | 11,563,000 | 39,364,000 | |||||||||||||||
Income Taxes Receivable | 104,723,000 | [1] | 28,496,000 | [1] | |||||||||||||
Fees payable | 47,680,000 | [2] | 38,463,000 | [2] | |||||||||||||
Springleaf Acquisition Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction Number of Shares of Related Party Common Stock Contributed by Parent | 100 | ||||||||||||||||
Related Party Common Stock Par or Stated Value Per Share | $0.00 | ||||||||||||||||
CSI | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Receivables from parent and affiliates | 16,400,000 | ||||||||||||||||
Springleaf Finance Management Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Receivables from parent and affiliates | 1,000,000 | ||||||||||||||||
Affiliated companies | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payable due to SFI | 47,700,000 | 38,500,000 | |||||||||||||||
Springleaf Financial Holdings, LLC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Receivables from parent and affiliates | 54,300,000 | ||||||||||||||||
Payable to affiliate | 42,700,000 | ||||||||||||||||
CSI | Spring Castle Holdings LLC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Fees payable | 6,800,000 | ||||||||||||||||
SFI | Affiliated companies | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Note receivable from parent | 251,500,000 | 168,000,000 | |||||||||||||||
Interest receivables on note | 400,000 | 500,000 | |||||||||||||||
Interest revenue on note receivable | 5,300,000 | 15,100,000 | 17,300,000 | ||||||||||||||
Payable due to SFI | 16,600,000 | 22,000,000 | |||||||||||||||
Fees paid | 2,700,000 | 6,900,000 | |||||||||||||||
Capital contributions received to satisfy interest payments | 10,500,000 | 10,500,000 | 10,500,000 | 10,500,000 | 10,500,000 | 10,500,000 | |||||||||||
SFI | Affiliated companies | AIGFP | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Amount of cash collateral returned | 40,000,000 | ||||||||||||||||
SFI | Affiliated companies | SFSSC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Additional amount paid towards settlement | 3,100,000 | ||||||||||||||||
Fees paid | 600,000 | ||||||||||||||||
Second Street Funding Corporation | Subsidiary of Common Parent [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Income Taxes Receivable | 4,000,000 | 15,600,000 | |||||||||||||||
Springleaf Finance Management Corporation | Affiliated companies | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payable due to SFI | 500,000 | ||||||||||||||||
Services Agreement | Affiliated companies | Spring Castle Holdings LLC | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Payable to affiliate | 10,200,000 | ||||||||||||||||
Services Agreement | Spring leaf General Services Corporation | Affiliated companies | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of allocated cost of service | 100.00% | ||||||||||||||||
Services Agreement | Spring leaf General Services Corporation | Affiliated companies | Springleaf Finance Management Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Fees payable | 19,200,000 | 9,400,000 | |||||||||||||||
Service fee expenses | 212,900,000 | 141,700,000 | |||||||||||||||
License Agreement | Spring leaf General Services Corporation | Affiliated companies | Springleaf Finance Management Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Percentage of allocated cost of service | 100.00% | ||||||||||||||||
Percentage of actual cost incurred | 100.00% | ||||||||||||||||
Margin on the systems and software (as a percent) | 7.00% | ||||||||||||||||
License fees | 5,400,000 | 6,100,000 | |||||||||||||||
Building Lease Agreement | Spring leaf General Services Corporation | Affiliated companies | Springleaf Finance Management Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Number of buildings leased | 6 | ||||||||||||||||
Annual rental fees | 3,700,000 | ||||||||||||||||
Rent charged | 3,700,000 | 3,800,000 | |||||||||||||||
Intercompany Demand Note Due 31 December 2022 | SFI | Affiliated companies | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Related Party Transaction Note Receivable Maximum Borrowing Capacity | 50,000,000 | ||||||||||||||||
Interest revenue on intercompany promissory note | 7.00% | ||||||||||||||||
Intercompany Demand Note Due 31 December 2022 | SFI | Affiliated companies | Springleaf Acquisition Corporation | |||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||
Interest Expense, Related Party | 80,000 | ||||||||||||||||
Carrying Amount of Additional Debt Recorded | $1,200,000 | $2,500,000 | |||||||||||||||
Interest rates (as a percent) | 8.00% | ||||||||||||||||
[1] | Current tax receivable includes current federal and state tax assets. | ||||||||||||||||
[2] | See Note 10 for further information on payables to parent and affiliates. |
Longterm_Debt_Carrying_Value_a
Long-term Debt - Carrying Value and Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Carrying Value | $8,384,910 | [1] | $10,640,728 |
Fair Value | 9,181,765 | 11,776,576 | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Carrying Value | 171,623 | [1] | 171,587 |
Fair Value | 261,625 | 294,000 | |
Senior debt | |||
Debt Instrument [Line Items] | |||
Carrying Value | 8,213,287 | 10,469,141 | |
Fair Value | $8,920,140 | $11,482,576 | |
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. |
Longterm_Debt_Weighted_Average
Long-term Debt - Weighted Average Interest Rates (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 7.19% | 7.14% | 8.29% |
Weighted average interest rates | 7.26% | 6.84% | |
Senior debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 7.10% | 7.06% | 8.24% |
Weighted average interest rates | 7.16% | 6.76% | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 12.26% | 12.26% | 12.26% |
Weighted average interest rates | 12.26% | 12.26% |
Longterm_Debt_Principal_Maturi
Long-term Debt - Principal Maturities By Type (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
First quarter 2015 | $16,575 | ||
Second quarter 2015 | 7,092 | ||
Third quarter 2015 | 23,544 | ||
Fourth quarter 2015 | 750,000 | ||
2015 | 797,211 | ||
2016 | 375,000 | ||
2017 | 1,902,321 | ||
2018 | 0 | ||
2019 | 700,000 | ||
2020-2067 | 1,600,000 | ||
Securitizations (c) | 3,646,596 | [1] | |
Total principal maturities | 9,021,128 | ||
Carrying Value | 8,384,910 | [2] | 10,640,728 |
Retail Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 6.00% | [3] | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 7.50% | [3] | |
First quarter 2015 | 16,575 | ||
Second quarter 2015 | 7,092 | ||
Third quarter 2015 | 23,544 | ||
Fourth quarter 2015 | 0 | ||
2015 | 47,211 | ||
2016 | 0 | ||
Total principal maturities | 47,211 | ||
Carrying Value | 46,469 | [2] | |
Medium Term Notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 5.25% | [3],[4] | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 8.25% | [3],[4] | |
Fourth quarter 2015 | 750,000 | [4] | |
2015 | 750,000 | [4] | |
2016 | 375,000 | [4] | |
2017 | 1,902,321 | [4] | |
2018 | 0 | [4] | |
2019 | 700,000 | [4] | |
2020-2067 | 1,250,000 | [4] | |
Total principal maturities | 4,977,321 | [4] | |
Carrying Value | 4,522,862 | [2],[4] | |
Securitizations | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 1.79% | [3] | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 6.82% | [3] | |
Securitizations (c) | 3,646,596 | [1] | |
Total principal maturities | 3,646,596 | ||
Carrying Value | 3,643,956 | [2] | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Interest rates (as a percent) | 6.00% | [3] | |
2020-2067 | 350,000 | ||
Total principal maturities | 350,000 | ||
Carrying Value | $171,623 | [2] | $171,587 |
[1] | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 12 for further information on our long-term debt associated with securitizations. | ||
[2] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | ||
[3] | The interest rates shown are the range of contractual rates in effect at December 31, 2014. | ||
[4] | Medium term notes included $700 million aggregate principal amount of 5.25% Senior Notes due 2019, which were issued in December 2014, and reflects the related repurchases of $459 million aggregate principal amount of medium term notes due 2017 as discussed below under the caption “Repurchase or Repayment of Debt†in this note. |
Longterm_Debt_Narrative_Detail
Long-term Debt - Narrative (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Jan. 31, 2007 | Mar. 31, 2014 | Dec. 30, 2013 | Dec. 30, 2013 | Oct. 03, 2014 | Dec. 31, 2014 | Jul. 31, 2014 | Dec. 03, 2014 | |||
Principal maturities of long-term debt by type of debt | |||||||||||
Debt Instrument Covenant Number Of Agreements Requiring Specific Financial Targets Or Ratios | 0 | 0 | |||||||||
Corporate Joint Venture | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | 47.00% | ||||||||
Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 5.25% | [1],[2] | |||||||||
Senior Notes issued in May 2013 | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 700,000,000 | $700,000,000 | |||||||||
Medium Term Notes Due 2017 | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 459,000,000 | 459,000,000 | |||||||||
Junior Subordinated Debt | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 6.00% | [1] | 6.00% | [1] | |||||||
Junior Subordinated Debt | Springleaf Finance Corporation | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 350,000,000 | ||||||||||
Term of debt | 60 years | ||||||||||
Trailing period used to calculate fixed charge ratio | 12 months | ||||||||||
Junior Subordinated Debt | Springleaf Finance Corporation | Minimum | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Tangible equity to tangible managed assets (as a percent) | 5.50% | 5.50% | |||||||||
Average fixed charge ratio | 1.1 | 1.1 | |||||||||
Securitizations | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 1.79% | [1] | |||||||||
Securitizations | Springleaf Finance Corporation | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Number of consumer loan securitizations with debt covenants requiring specific financial targets or ratios | 1 | 1 | |||||||||
Secured Term Loan | Springleaf Financial Funding Company | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Repayments of Debt | 750,000,000 | ||||||||||
Guaranty Agreements | Senior debt | Parent Company | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 700,000,000 | ||||||||||
Interest rates (as a percent) | 5.25% | ||||||||||
Guaranty Agreements | Senior debt | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 4,300,000,000 | 5,200,000,000 | 5,200,000,000 | 4,300,000,000 | |||||||
Guaranty Agreements | 8.250% Senior Notes due 2023 | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 8.25% | 8.25% | |||||||||
Guaranty Agreements | 7.750% Senior Notes due 2021 | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 7.75% | 7.75% | |||||||||
Guaranty Agreements | 6.00% Senior Notes due 2020 | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 6.00% | 6.00% | |||||||||
Guaranty Agreements | Senior Notes 1999 Indenture | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 3,100,000,000 | 3,900,000,000 | 3,900,000,000 | 3,100,000,000 | |||||||
Guaranty Agreements | Junior Subordinated Debt | Springleaf Holding Inc. | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 350,000,000 | 350,000,000 | 350,000,000 | 350,000,000 | |||||||
Term of debt | 60 years | 60 years | |||||||||
SpringCastle Funding Asset-backed Notes 2013-A [Member] | Corporate Joint Venture | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Gains (Losses) on Extinguishment of Debt | 21,200,000 | ||||||||||
5.25 % Senior Notes due 2019 | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Long term debt | 700,000,000 | 700,000,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 5.25% | ||||||||||
Medium Term Notes Due 2017 | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Gains (Losses) on Extinguishment of Debt | 17,100,000 | ||||||||||
Deferred Finance Costs, Net | 56,600,000 | 56,600,000 | |||||||||
6.50 % Medium Term Notes due 2017 [Member] | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 6.50% | 6.50% | |||||||||
Debt Instrument, Repurchase Amount | 23,000,000 | 23,000,000 | |||||||||
6.90 % Medium Term Notes due 2017 | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Interest rates (as a percent) | 6.90% | 6.90% | |||||||||
Debt Instrument, Repurchase Amount | 66,000,000 | 66,000,000 | |||||||||
Beneficial Owners of Debt | Medium Term Notes Due 2017 | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Gains (Losses) on Extinguishment of Debt | 19,700,000 | ||||||||||
Beneficial Owners of Debt | 6.50 % Medium Term Notes due 2017 [Member] | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Debt Instrument, Repurchase Amount | 9,000,000 | 9,000,000 | |||||||||
Beneficial Owners of Debt | 6.90 % Medium Term Notes due 2017 | Medium Term Notes | |||||||||||
Principal maturities of long-term debt by type of debt | |||||||||||
Debt Instrument, Repurchase Amount | 361,000,000 | $361,000,000 | |||||||||
[1] | The interest rates shown are the range of contractual rates in effect at December 31, 2014. | ||||||||||
[2] | Medium term notes included $700 million aggregate principal amount of 5.25% Senior Notes due 2019, which were issued in December 2014, and reflects the related repurchases of $459 million aggregate principal amount of medium term notes due 2017 as discussed below under the caption “Repurchase or Repayment of Debt†in this note. |
Variable_Interest_Entities_Nar
Variable Interest Entities - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 20, 2012 | Aug. 08, 2012 | Oct. 25, 2012 | Apr. 10, 2013 | Jul. 09, 2013 | Oct. 09, 2013 | Feb. 28, 2013 | Jun. 19, 2013 | Sep. 25, 2013 | Sep. 27, 2013 | Dec. 20, 2013 | Mar. 26, 2014 | Jun. 26, 2014 | Mar. 27, 2014 | Sep. 26, 2013 | Jun. 13, 2013 | Oct. 03, 2014 | Jul. 31, 2014 | Feb. 19, 2013 | Jun. 13, 2014 | |
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Interest expense | $157,198,000 | $172,492,000 | $171,797,000 | $181,746,000 | $192,818,000 | $205,270,000 | $214,285,000 | $230,306,000 | $683,233,000 | $842,679,000 | $1,067,709,000 | ||||||||||||||||||||
Cost of mortgages sold | 6,300,000,000 | 18,000,000 | 171,000,000 | ||||||||||||||||||||||||||||
Reserve For Sales Recourse Obligations Related To Finance Receivables Sold | 22,400,000 | ||||||||||||||||||||||||||||||
Corporate Joint Venture | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 47.00% | 47.00% | 47.00% | ||||||||||||||||||||||||||||
Collateralized Mortgage Backed Securities | The 2013-3 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 22,517,000 | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | 22,623,000 | 22,623,000 | |||||||||||||||||||||||||||||
Consolidated VIEs | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Interest expense | 162,900,000 | 146,700,000 | 111,400,000 | ||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2012-1 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 371,000,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 4.38% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 367,800,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 42,600,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2012-2 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 750,800,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 3.59% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 749,700,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 107,700,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2012-3 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 787,400,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 2.80% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 787,200,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 112,300,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2013-1 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 782,500,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 2.85% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 782,400,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 236,800,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2013-2 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 599,400,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 2.88% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 590,900,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 535,100,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Collateralized Mortgage Backed Securities | The 2013-3 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 270,500,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 3.40% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 269,400,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 228,700,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | 2013-A Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 567,900,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 2.83% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 567,500,000 | ||||||||||||||||||||||||||||||
Interest reserve requirement on notes sold under securitization | 6,600,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 36,400,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | 2013-B Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 256,200,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 4.11% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 255,400,000 | ||||||||||||||||||||||||||||||
Interest reserve requirement on notes sold under securitization | 4,400,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | 2013-B Trust | Senior note | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 114,000,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | 2013-B Trust | Subordinate notes | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 29,800,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | 2013-BAC Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 500,000,000 | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | Springleaf 2013-VFN1 Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Maximum principal balance of notes that can be issued under private securitization transaction | 350,000,000 | ||||||||||||||||||||||||||||||
Amount Funded at Closing of Securitization Transaction | 0 | ||||||||||||||||||||||||||||||
Funding Period | 2 years | ||||||||||||||||||||||||||||||
Extended Funding Period | 1 year | ||||||||||||||||||||||||||||||
Amount Outstanding under Securitization Transaction | 0 | 0 | |||||||||||||||||||||||||||||
Funding Period Including Extended Period | 3 years | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | Sumner Brook 2013-VFN1 Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Maximum principal balance of notes that can be issued under private securitization transaction | 350,000,000 | ||||||||||||||||||||||||||||||
Amount Funded at Closing of Securitization Transaction | 0 | ||||||||||||||||||||||||||||||
Funding Period | 2 years | 2 years | |||||||||||||||||||||||||||||
Amount Outstanding under Securitization Transaction | 0 | 0 | |||||||||||||||||||||||||||||
Funding Period Including Extended Period | 2 years | ||||||||||||||||||||||||||||||
Consolidated VIEs | Asset-backed securities | Personal Loans | 2013-BAC Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 500,000,000 | ||||||||||||||||||||||||||||||
Personal Loans | Consolidated VIEs | Asset-backed securities | 2014-A Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Amount of notes sold under private securitization | 559,300,000 | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 2.62% | ||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 559,200,000 | ||||||||||||||||||||||||||||||
Interest reserve requirement on notes sold under securitization | 6,400,000 | ||||||||||||||||||||||||||||||
Qualitative and Quantitative Information, Transferor's Continuing Involvement, Principal Amount Outstanding | 32,900,000 | ||||||||||||||||||||||||||||||
Personal Loans | Consolidated VIEs | Asset-backed securities | Whitford Brook Funding Trust2014 VFN1 | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Maximum principal balance of notes that can be issued under private securitization transaction | 300,000,000 | ||||||||||||||||||||||||||||||
Funding Period | 3 years | ||||||||||||||||||||||||||||||
Securitization Required Minimum Balance | 100,000,000 | ||||||||||||||||||||||||||||||
Amount Outstanding under Securitization Transaction | 100,000,000 | 100,000,000 | |||||||||||||||||||||||||||||
Personal Loans | Consolidated VIEs | Asset-backed securities | 2013-BAC Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Repayments of Debt | 231,300,000 | ||||||||||||||||||||||||||||||
Personal Loans | Consolidated VIEs | Asset-backed securities | Midbrook 2013-VFN1 Securitization | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Maximum principal balance of notes that can be issued under private securitization transaction | 300,000,000 | 300,000,000 | |||||||||||||||||||||||||||||
Amount Funded at Closing of Securitization Transaction | 0 | 0 | |||||||||||||||||||||||||||||
Funding Period | 1 year | ||||||||||||||||||||||||||||||
Funding Period Including Extended Period | 2 years | ||||||||||||||||||||||||||||||
Real Estate Loans | Collateralized Mortgage Backed Securities | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Cost of mortgages sold | 5,100,000,000 | ||||||||||||||||||||||||||||||
Reserve For Sales Recourse Obligations Related To Finance Receivables Sold | 6,500,000 | ||||||||||||||||||||||||||||||
Real Estate Loans | Collateralized Mortgage Backed Securities | The 2012-2 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 20,000,000 | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | 20,675,000 | 20,675,000 | |||||||||||||||||||||||||||||
Real Estate Loans | Collateralized Mortgage Backed Securities | The 2012-3 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 7,500,000 | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | 7,753,000 | 7,753,000 | |||||||||||||||||||||||||||||
Real Estate Loans | Collateralized Mortgage Backed Securities | The 2013-2 Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 157,517,000 | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | 148,559,000 | 148,559,000 | |||||||||||||||||||||||||||||
Real Estate Loans | Asset-backed securities | 2013-B Trust | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Principal Amount of Previously Retained Notes Issued | 114,000,000 | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | 111,578,000 | 111,578,000 | |||||||||||||||||||||||||||||
Spring Castle Credit Funding LLC | Asset-backed securities | |||||||||||||||||||||||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||||||||||||||||||||||
Proceeds from Sale of Available-for-sale Securities, Debt | 2,550,000,000 | ||||||||||||||||||||||||||||||
Long-term Debt, Unpaid Principal Balance | 1,460,000,000 | ||||||||||||||||||||||||||||||
Debt Instrument, Face Amount, Notes Purchased from SAC | 362,500,000 | ||||||||||||||||||||||||||||||
Debt Instrument, Face Amount, Retained by Co-Issuers | 61,600,000 | ||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | ||||||||||||||||||||||||||||||
Weighted average yield (as a percent) | 4.68% | ||||||||||||||||||||||||||||||
Carrying Amount of Additional Debt Recorded | $2,620,000,000 |
Variable_Interest_Entities_Car
Variable Interest Entities - Carrying Amounts Of Consolidated VIE Assets And Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Thousands, unless otherwise specified | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $6,452,018 | $11,143,859 | ||||
Allowance for finance receivable losses | 174,223 | 332,195 | 182,701 | 69,319 | ||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||||
Carrying Value | 8,384,910 | [1] | 10,640,728 | |||
Personal Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 3,799,788 | 3,159,932 | ||||
Allowance for finance receivable losses | 130,529 | 94,323 | 66,580 | 39,522 | ||
SpringCastle Portfolio | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,979,190 | 0 | ||||
Allowance for finance receivable losses | 2,777 | 0 | ||||
Residential Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 625,335 | 7,885,016 | ||||
Allowance for finance receivable losses | 40,171 | 236,032 | 113,861 | 28,790 | ||
Variable Interest Entity, Primary Beneficiary | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for finance receivable losses | 71,668 | 153,084 | ||||
Restricted cash and cash equivalents | 210,337 | 345,906 | ||||
Carrying Value | 3,643,956 | [2] | 5,160,227 | [2] | ||
Asset-backed securities | Variable Interest Entity, Primary Beneficiary | Personal Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,852,989 | 1,572,070 | ||||
Collateralized Mortgage Backed Securities | Variable Interest Entity, Primary Beneficiary | SpringCastle Portfolio | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,979,190 | [2] | ||||
Collateralized Mortgage Backed Securities | Variable Interest Entity, Primary Beneficiary | Residential Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $5,595,150 | |||||
[1] | The net carrying amount of our long-term debt associated with certain securitizations that were either 1) issued at a premium or discount or 2) revalued at a premium or discount based on its fair value at the time of the Fortress Acquisition or 3) recorded at fair value on a recurring basis in circumstances when the embedded derivative within the securitization structure cannot be separately accounted for at fair value. | |||||
[2] | As a result of the SAC Capital Contribution on July 31, 2014, SFC owns a 47% equity interest in the SpringCastle Portfolio and the long-term debt associated with the securitization of the SpringCastle Portfolio. |
Variable_Interest_Entities_Mor
Variable Interest Entities - Mortgage-backed And Asset-backed Notes Sold (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
The 2012-2 Trust | Collateralized Mortgage Backed Securities | Residential Portfolio Segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principal Amount of Previously Retained Notes Issued | $20,000,000 |
Carrying Amount of Additional Debt Recorded | 20,675,000 |
The 2012-3 Trust | Collateralized Mortgage Backed Securities | Residential Portfolio Segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principal Amount of Previously Retained Notes Issued | 7,500,000 |
Carrying Amount of Additional Debt Recorded | 7,753,000 |
The 2013-2 Trust | Collateralized Mortgage Backed Securities | Residential Portfolio Segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principal Amount of Previously Retained Notes Issued | 157,517,000 |
Carrying Amount of Additional Debt Recorded | 148,559,000 |
The 2013-3 Trust | Collateralized Mortgage Backed Securities | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principal Amount of Previously Retained Notes Issued | 22,517,000 |
Carrying Amount of Additional Debt Recorded | 22,623,000 |
2013-B Trust | Asset-backed securities | Residential Portfolio Segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Principal Amount of Previously Retained Notes Issued | 114,000,000 |
Carrying Amount of Additional Debt Recorded | $111,578,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | 1 Months Ended | 12 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 05, 2013 | Aug. 05, 2013 |
Cash flow hedges | Cash flow hedges | Cross currency interest rate | Other Noninterest Income | Other Noninterest Income | AIGFP | AIGFP | |
USD ($) | USD ($) | Cash flow hedges | USD ($) | USD ($) | Affiliated companies | Affiliated companies | |
EUR (€) | Cross currency interest rate | Other Noninterest Income | |||||
instrument | Cross currency interest rate | ||||||
USD ($) | |||||||
Fair value of derivative instruments | |||||||
Number of derivative instruments | 0 | ||||||
Deferred net gain on cash flow hedges reclassified from accumulated other comprehensive income to earnings | $0.20 | ||||||
Loss recorded in other revenues - other on termination | 1.9 | ||||||
Decrease in notional amounts | 676.7 | ||||||
Ineffective portion | 0.7 | ||||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $3.40 | $33.80 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Cross currency interest rate, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cross currency interest rate | ||
Fair value of derivative instruments | ||
Balance at beginning of period | $416,636 | $1,269,500 |
Expired contracts | 0 | 0 |
Discontinued and terminated contracts | -416,636 | -852,864 |
Balance at end of period | $0 | $416,636 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 3) (Cross currency interest rate, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Gain (loss) for cash flow hedges | Reclassification | ||||
Amount of gain (loss) recognized | ||||
From AOCI(L) to Earnings | $160 | [1],[2] | ($10,504) | [1],[2] |
Cash flow hedges | ||||
Amount of gain (loss) recognized | ||||
AOCI(L) | -16,987 | |||
Recognized in Other Revenues - Other | -426 | |||
Other Revenues - Other | Gain (loss) for cash flow hedges | Reclassification | ||||
Amount of gain (loss) recognized | ||||
From AOCI(L) to Other Revenues - Other | -12,343 | [1] | ||
Interest Expense | Gain (loss) for cash flow hedges | Reclassification | ||||
Amount of gain (loss) recognized | ||||
From AOCI(L) to Interest Expense | $160 | [1] | $1,839 | [1] |
[1] | Accumulated other comprehensive income (loss). | |||
[2] | Represents the total amounts reclassified from accumulated other comprehensive income or loss to other revenues — other and to interest expense for cash flow hedges as disclosed on our consolidated statement of comprehensive income (loss). |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details 4) (Other Noninterest Income, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Noninterest Income | ||
Derivative adjustments included in other revenues - other | ||
Mark to market losses | ($8,244) | ($28,659) |
Net interest income | 9,161 | 18,745 |
Credit valuation adjustment gains (losses) | 50 | -3,559 |
Ineffectiveness losses | 0 | -426 |
Other | -292 | 2,136 |
Total | $675 | ($11,763) |
Insurance_Details
Insurance (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Insurance claims and policyholder liabilities | ||
Insurance claims and policyholder liabilities | $445,553 | $394,168 |
Insurance claims and policyholder liabilities assumed from other insurers | 58,440 | 61,817 |
Non-affiliated insurance companies | ||
Insurance claims and policyholder liabilities | ||
Insurance claims and policyholder liabilities assumed from other insurers | 14,853 | 16,198 |
Affiliated companies | ||
Insurance claims and policyholder liabilities | ||
Insurance claims and policyholder liabilities assumed from other insurers | 43,587 | 45,619 |
Finance receivable | ||
Insurance claims and policyholder liabilities | ||
Unearned premium reserves | 193,710 | 151,987 |
Benefit reserves | 107,339 | 94,954 |
Claim reserves | 28,299 | 25,325 |
Insurance claims and policyholder liabilities | 329,348 | 272,266 |
Non-finance receivable | ||
Insurance claims and policyholder liabilities | ||
Benefit reserves | 74,639 | 79,352 |
Claim reserves | 41,566 | 42,550 |
Insurance claims and policyholder liabilities | $116,205 | $121,902 |
Insurance_Details_2
Insurance (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | |||
Balance at beginning of period | $46,220 | $51,037 | $47,369 |
Additions for losses and loss adjustment expense incurred to: | |||
Current year | 64,529 | 58,895 | 59,883 |
Prior years | -2,541 | -6,028 | -2,193 |
Total | 61,988 | 52,867 | 57,690 |
Reductions for losses and loss adjustment expenses paid related to: | |||
Current year | -39,359 | -34,591 | -33,956 |
Prior years | -20,949 | -23,093 | -20,066 |
Total | -60,308 | -57,684 | -54,022 |
Balance at end of period | $47,900 | $46,220 | $51,037 |
Insurance_Details_3
Insurance (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property and casualty | |||
Statutory net income and statutory capital and surplus | |||
Statutory net income | $15,803 | $40,616 | $18,493 |
Statutory capital and surplus | 107,696 | 153,710 | |
Life and accident and health | |||
Statutory net income and statutory capital and surplus | |||
Statutory net income | -2,411 | 3,285 | 10,131 |
Statutory capital and surplus | $171,383 | $184,465 |
Insurance_Details_4
Insurance (Details 4) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 20, 2014 | Sep. 30, 2013 | Jun. 30, 2012 | Jul. 31, 2013 | |
Insurance | |||||||
Ceded insurance reserves | $21,965,000 | $21,655,000 | |||||
Prior years | -2,541,000 | -6,028,000 | -2,193,000 | ||||
Maximum amount of dividends that may be paid in a 12 month period without prior approval from regulatory agencies, as a percentage of policyholder's surplus | 10.00% | ||||||
Merit | |||||||
Insurance | |||||||
Proceeds from Dividends Received | 18,000,000 | ||||||
Subsidiaries | |||||||
Insurance | |||||||
Dividends paid | 150,000,000 | 150,000,000 | |||||
Yosemite | |||||||
Insurance | |||||||
Proceeds from Dividends Received | 57,000,000 | ||||||
Dividends paid | 57,800,000 | ||||||
Payment of approved extraordinary dividend as percentage of wholly owned subsidiary common stock | 100.00% | ||||||
Non-affiliated insurance companies | |||||||
Insurance | |||||||
Ceded insurance reserves | $22,000,000 | $21,700,000 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Liabilities Disclosure [Abstract] | ||||
Accrued interest on debt | $57,343 | $71,034 | ||
Retirement plans | 49,916 | 14,836 | ||
Payables to parent and affiliates | 47,680 | [1] | 38,463 | [1] |
Other accrued expenses and accounts payable | 26,245 | 11,395 | ||
Loan principal warranty reserve | 24,005 | 4,702 | ||
United Kingdom subsidiary reserves | 14,271 | 34,475 | ||
Salary and benefit liabilities | 11,163 | 18,718 | ||
Bank overdrafts | 5,344 | 7,748 | ||
Other insurance liabilities | 4,357 | 3,911 | ||
Other | 15,222 | 18,184 | ||
Total | $255,546 | $223,466 | ||
[1] | See Note 10 for further information on payables to parent and affiliates. |
Capital_Stock_Details
Capital Stock (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jul. 31, 2014 | Dec. 31, 2013 | Jul. 10, 2014 | Jan. 10, 2014 | Jul. 10, 2013 | Jan. 11, 2013 |
item | |||||||
Capital stock | |||||||
Number of classes of authorized capital stock | 2 | ||||||
Par value and shares authorized | |||||||
Special Shares, Par Value (in dollars per share) | $0 | ||||||
Common Shares, Par Value (in dollars per share) | 0.5 | ||||||
Special Shares authorized | 25,000,000 | ||||||
Common Shares Authorized | 25,000,000 | 25,000,000 | |||||
Shares issued and outstanding | |||||||
Special Stock Shares Issued | 0 | 0 | |||||
Special Stock Shares Outstanding | 0 | 0 | |||||
Common shares, shares issued | 10,160,020 | 10,160,018 | |||||
Common shares, shares outstanding | 10,160,020 | 10,160,018 | |||||
SFI | |||||||
Capital stock | |||||||
Capital contributions received to satisfy hybrid debt semi-annual interest payments | $10.50 | $10.50 | $10.50 | $10.50 | |||
Springleaf Acquisition Corporation | |||||||
Capital stock | |||||||
Related Party Transaction Number of Shares of Related Party Common Stock Contributed by Parent | 100 | ||||||
Related Party Common Stock Par or Stated Value Per Share | $0.00 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | $28,095 | $25,896 | ($27,073) |
Other comprehensive income (loss) before reclassifications | -19,799 | 3,699 | 43,958 |
Reclassification adjustments from accumulated other comprehensive income | -5,080 | -1,500 | 9,011 |
Balance at end of period | 3,216 | 28,095 | 25,896 |
Unrealized gains (losses) on investment securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 4,362 | 13,545 | 3,678 |
Other comprehensive income (loss) before reclassifications | 12,495 | -7,787 | 7,684 |
Reclassification adjustments from accumulated other comprehensive income | -5,080 | -1,396 | 2,183 |
Balance at end of period | 11,777 | 4,362 | 13,545 |
Unrealized gains (losses) on cash flow hedges | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 0 | 104 | 4,318 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | -11,042 |
Reclassification adjustments from accumulated other comprehensive income | 0 | -104 | 6,828 |
Balance at end of period | 0 | 0 | 104 |
Retirement Plan Liabilities Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 20,153 | 8,120 | -35,221 |
Other comprehensive income (loss) before reclassifications | -33,094 | 12,033 | 43,341 |
Balance at end of period | -12,941 | 20,153 | 8,120 |
Foreign Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 3,580 | 4,127 | 152 |
Other comprehensive income (loss) before reclassifications | 800 | -547 | 3,975 |
Balance at end of period | $4,380 | $3,580 | $4,127 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | ($39,019) | ($33,610) | ($31,134) | ||||||||
Income tax effect | -12,618 | 219,092 | 32,811 | 24,080 | -9,180 | -57,145 | 16,398 | -3,350 | 263,365 | -53,277 | -88,317 |
Reclassification from accumulated other comprehensive income to interest expense, before taxes | 157,198 | 172,492 | 171,797 | 181,746 | 192,818 | 205,270 | 214,285 | 230,306 | 683,233 | 842,679 | 1,067,709 |
Reclassification from accumulated other comprehensive income to other revenues, before taxes | 13,073 | -21,765 | 28,297 | ||||||||
Net income (loss) | 27,546 | -428,506 | -53,278 | -38,202 | 8,595 | 93,908 | -27,147 | 7,284 | -492,440 | 82,640 | 219,068 |
Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Net income (loss) | 5,080 | 1,500 | -9,011 | ||||||||
Unrealized gains (losses) on investment securities | Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | 7,815 | 2,148 | -3,359 | ||||||||
Income tax effect | -2,735 | -752 | 1,176 | ||||||||
Net income (loss) | 5,080 | 1,396 | -2,183 | ||||||||
Unrealized gains (losses) on cash flow hedges | Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Income tax effect | 0 | -56 | 3,676 | ||||||||
Reclassification from accumulated other comprehensive income to interest expense, before taxes | 0 | 160 | 1,839 | ||||||||
Reclassification from accumulated other comprehensive income to other revenues, before taxes | 0 | 0 | -12,343 | ||||||||
Net income (loss) | $0 | $104 | ($6,828) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Federal: | |||||||||||
Current | $228,158,000 | $61,713,000 | $72,399,000 | ||||||||
Deferred | 16,692,000 | -107,124,000 | -156,980,000 | ||||||||
Total federal | 244,850,000 | -45,411,000 | -84,581,000 | ||||||||
Foreign: | |||||||||||
Current | 370,000 | 634,000 | 2,604,000 | ||||||||
Deferred | 3,746,000 | -1,418,000 | -15,777,000 | ||||||||
Deferred - valuation allowance | -3,772,000 | 2,346,000 | 15,655,000 | ||||||||
Total foreign | 344,000 | 1,562,000 | 2,482,000 | ||||||||
State: | |||||||||||
Current | 17,498,000 | 2,481,000 | 8,294,000 | ||||||||
Deferred | -2,533,000 | -19,240,000 | -22,656,000 | ||||||||
Deferred - valuation allowance | 3,206,000 | 7,331,000 | 8,144,000 | ||||||||
Total state | 18,171,000 | -9,428,000 | -6,218,000 | ||||||||
Total | -12,618,000 | 219,092,000 | 32,811,000 | 24,080,000 | -9,180,000 | -57,145,000 | 16,398,000 | -3,350,000 | 263,365,000 | -53,277,000 | -88,317,000 |
Reconciliation of the statutory federal income tax rate to the effective tax rate | |||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Non-controlling interests | -2.06% | 0.00% | 0.00% | ||||||||
State income taxes, net of federal | 1.57% | 4.39% | 1.32% | ||||||||
Foreign operations | 0.95% | -0.95% | -3.25% | ||||||||
Valuation allowance | -0.50% | -1.73% | -5.09% | ||||||||
Nontaxable investment income | -0.12% | 1.11% | 0.89% | ||||||||
Interest and penalties on prior year tax returns | -0.12% | -4.38% | -0.33% | ||||||||
Change in tax status | 0.00% | 8.35% | 0.00% | ||||||||
Nondeductible compensation | 0.00% | -1.99% | 0.00% | ||||||||
Other, net | 0.13% | -0.60% | 0.19% | ||||||||
Effective income tax rate | 34.85% | 39.20% | 28.73% | ||||||||
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | |||||||||||
Balance at beginning of year | 1,887,000 | 1,580,000 | 1,887,000 | 1,580,000 | |||||||
Increases in tax positions for prior years | 2,470,000 | 307,000 | 1,091,000 | ||||||||
Decreases in tax positions for prior years | 0 | 0 | 0 | ||||||||
Increases in tax positions for current years | 0 | 489,000 | |||||||||
Decreases in tax positions for current years | 0 | 0 | 0 | ||||||||
Lapse in statute of limitations | -595,000 | 0 | 0 | ||||||||
Balance at end of year | 3,762,000 | 1,887,000 | 3,762,000 | 1,887,000 | 1,580,000 | ||||||
Accrued payment of interest (net of federal benefit) and penalties | $1,200,000 | $200,000 | $1,200,000 | $200,000 | $200,000 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Mark to market - receivables | $32,565 | $48,770 |
State taxes, net of federal | 21,324 | 20,106 |
Pension/employee benefits | 19,583 | 8,155 |
Net operating losses and tax attributes | 18,915 | 26,201 |
Joint venture | 12,274 | 0 |
Legal and warranty reserve | 9,467 | 1,216 |
Payment protection insurance liability | 4,929 | 11,353 |
Deferred insurance commissions | 3,473 | 2,781 |
Real estate owned | 2,738 | 3,058 |
Securitization | 0 | 68,183 |
Market discount - investments | 0 | 14,134 |
Insurance reserves | 0 | 3,711 |
Other | 2,154 | 2,327 |
Total | 127,422 | 209,995 |
Deferred tax liabilities: | ||
Debt writedown | 194,261 | 268,988 |
Discount - debt exchange | 22,377 | 14,390 |
Insurance reserves | 10,175 | 0 |
Other intangible assets | 6,859 | 8,443 |
Market discount - investments | 3,292 | 0 |
Fixed assets | 1,851 | 2,050 |
Derivative | 0 | 1,899 |
Other | 0 | 10,929 |
Total | 238,815 | 306,699 |
Net deferred tax liabilities before valuation allowance | -111,393 | -96,704 |
Valuation allowance | -44,383 | -45,220 |
Net deferred tax liabilities | ($155,776) | ($141,924) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income taxes | ||
Net deferred tax liabilities | $155,776,000 | $141,924,000 |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 3,300,000 | |
Valuation allowance | 44,383,000 | 45,220,000 |
State | ||
Income taxes | ||
Valuation allowance | 25,900,000 | 23,800,000 |
Income Taxes Receivable, Current | 4,900,000 | 7,700,000 |
Operating Loss Carryforwards | 499,700,000 | 348,400,000 |
United Kingdom operations | ||
Income taxes | ||
Foreign net operating loss carryforward from United Kingdom operations | 15,500,000 | 20,300,000 |
Valuation allowance | 18,500,000 | 21,400,000 |
Federal and foreign tax authorities | ||
Income taxes | ||
Income Taxes Receivable, Current | 99,800,000 | 20,800,000 |
Puerto Rico Jurisdiction | ||
Income taxes | ||
Foreign net operating loss carryforward from United Kingdom operations | 1,900,000 | 1,100,000 |
Deferred And Accrued Taxes | ||
Income taxes | ||
Accrual for Taxes Other than Income Taxes | $3,600,000 | $3,600,000 |
Restructuring_Details
Restructuring (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2012 | Dec. 31, 2014 | |
branch | ||
state | ||
Restructuring | ||
Number of states where entity does not have a significant presence | 14 | |
Number of states where certain branch operations consolidated | 26 | |
Number of branch offices closed | 231 | |
Restructuring expenses - pretax | $23,503,000 | $23,503,000 |
Restructuring Costs | 3,800,000 | |
Headquarters in Evansville, Indiana and in United Kingdom | ||
Restructuring | ||
Reduction in number of employees | 820 | |
Consumer and Insurance | ||
Restructuring | ||
Restructuring expenses - pretax | 15,863,000 | |
Real Estate Loans | ||
Restructuring | ||
Restructuring expenses - pretax | 818,000 | |
Other | ||
Restructuring | ||
Restructuring expenses - pretax | $6,822,000 |
Restructuring_Details_2
Restructuring (Details 2) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Changes in restructuring liability | ||||||
Balance at beginning of period | $40 | $421 | $0 | |||
Amounts charged to expense | 0 | 0 | 23,503 | |||
Amounts paid | -40 | -381 | -18,036 | |||
Non-cash expenses | -5,046 | |||||
Balance at end of period | 0 | 40 | 421 | |||
Severance Expenses | ||||||
Changes in restructuring liability | ||||||
Balance at beginning of period | 0 | 56 | 0 | |||
Amounts charged to expense | 11,600 | |||||
Amounts paid | 0 | -56 | -11,544 | |||
Non-cash expenses | 0 | |||||
Balance at end of period | 0 | 0 | 56 | |||
Contract Termination Expenses | ||||||
Changes in restructuring liability | ||||||
Balance at beginning of period | 40 | 365 | 0 | |||
Amounts charged to expense | 5,840 | |||||
Amounts paid | -40 | -325 | -5,475 | |||
Non-cash expenses | 0 | |||||
Balance at end of period | 0 | 40 | 365 | |||
Asset Writedowns | ||||||
Changes in restructuring liability | ||||||
Balance at beginning of period | 0 | 0 | 0 | |||
Amounts charged to expense | 5,246 | |||||
Amounts paid | 0 | 0 | 0 | |||
Non-cash expenses | -5,246 | |||||
Balance at end of period | 0 | 0 | 0 | |||
Other Exit Expenses | ||||||
Changes in restructuring liability | ||||||
Balance at beginning of period | 0 | [1] | 0 | [1] | 0 | [1] |
Amounts charged to expense | 817 | [1] | ||||
Amounts paid | 0 | [1] | 0 | [1] | -1,017 | [1] |
Non-cash expenses | 200 | [1] | ||||
Balance at end of period | $0 | [1] | $0 | [1] | $0 | [1] |
[1] | Primarily includes removal expenses for branch furniture and signs and fees for outplacement services. Also includes the impairment of the market value adjustment on leased branch offices from the Fortress Acquisition. |
Lease_Commitments_Rent_Expense2
Lease Commitments, Rent Expense, and Contingent Liabilities (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases | |
First quarter 2015 | $6,863 |
Second quarter 2015 | 6,695 |
Third quarter 2015 | 6,405 |
Fourth quarter 2015 | 6,131 |
2015 | 26,094 |
2016 | 20,982 |
2017 | 15,128 |
2018 | 9,809 |
2019 | 4,957 |
2020 and thereafter | 2,809 |
Total | $79,779 |
Lease_Commitments_Rent_Expense3
Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Balance at beginning of period | $4,702 | $4,863 | $1,648 |
Provision for recourse obligations, net of recoveries | 19,592 | 322 | 3,269 |
Recourse losses | -211 | -483 | -54 |
Balance at end of period | $24,083 | $4,702 | $4,863 |
Lease_Commitments_Rent_Expense4
Lease Commitments, Rent Expense, and Contingent Liabilities Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
loan | loan | loan | |
request | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expense | $28.60 | $30 | $36.30 |
Reserve For Sales Recourse Obligations Related To Finance Receivables Sold | 22.4 | ||
Cost of mortgages sold | 6,300 | 18 | 171 |
Financing Receivable Loans Reaching Defined Delinquency Limits Repurchased under Loan Sale Agreement Number | 9 | 20 | 20 |
Payments to Repurchase Financing Receivables Reaching Defined Delinquency Limits and under Loan Sale Agreement | 1.5 | 2.9 | 2.8 |
Number of Material Unresolved Recourse Requests | 0 | ||
Estimated PPI claims reserve | $14.10 | $33.50 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Retirement Plan | |||
Benefit Plans | |||
Minimum eligibility age to participate in the plan | 21 years | ||
Continuous service period required to participate in the plan | 12 months | ||
Vesting period | 5 years | ||
Normal retirement age | 65 years | ||
Maximum credited service period | 44 years | ||
CommoLoCo Retirement Plan | |||
Benefit Plans | |||
Minimum eligibility age to participate in the plan | 21 years | ||
Continuous service period required to participate in the plan | 1 year | ||
Postretirement Plans | |||
Benefit Plans | |||
Minimum eligibility age to participate in the plan | 55 years | ||
Continuous service period required to participate in the plan | 10 years | ||
Settlement gain | $4,110 | ||
Curtailment gain | $2,076 | $0 | $579 |
Defined Benefit Postretirement Life Insurance | |||
Benefit Plans | |||
Minimum eligibility age to participate in the plan | 55 years | ||
Continuous service period required to participate in the plan | 10 years |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Springleaf Financial Services 401(k) Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | 100.00% | |
Percentage of employee salary eligible for employer matching contribution | 4.00% | 4.00% | 6.00% |
Maximum employer discretionary profit sharing contribution as percentage of annual pay | 4.00% | ||
Salaries and benefit expense related to plan | $4.20 | $3.90 | $1.90 |
Springleaf Financial Services 401(k) Plan | 0-4 years of service | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 10.00% | ||
Springleaf Financial Services 401(k) Plan | 0-4 years of service | Minimum | |||
401(K) PLANS | |||
Period of employee's service | 0 years | ||
Springleaf Financial Services 401(k) Plan | 0-4 years of service | Maximum | |||
401(K) PLANS | |||
Period of employee's service | 4 years | ||
Springleaf Financial Services 401(k) Plan | 5-9 years of service | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 20.00% | ||
Springleaf Financial Services 401(k) Plan | 5-9 years of service | Minimum | |||
401(K) PLANS | |||
Period of employee's service | 5 years | ||
Springleaf Financial Services 401(k) Plan | 5-9 years of service | Maximum | |||
401(K) PLANS | |||
Period of employee's service | 9 years | ||
Springleaf Financial Services 401(k) Plan | 10 or more years of service | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 30.00% | ||
Springleaf Financial Services 401(k) Plan | 10 or more years of service | Minimum | |||
401(K) PLANS | |||
Period of employee's service | 10 years | ||
Springleaf Financial Services 401(k) Plan | 10 or more years of service | Maximum | |||
401(K) PLANS | |||
Period of employee's service | 10 years | ||
CommoLoCo Thrift Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | ||
Percentage of employee salary eligible for employer matching contribution | 3.00% | ||
Employer's match of employees' contributions of the next 3% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 3.00% |
Benefit_Plans_Details_3
Benefit Plans (Details 3) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Fair value of plan assets | ||||||
Balance at the end of the period | $359,198,000 | $316,660,000 | ||||
Pension | ||||||
Projected benefit obligation | ||||||
Balance at the beginning of the period | 322,465,000 | [1] | 367,591,000 | [1] | 435,221,000 | [1] |
Service cost | 0 | [1] | 14,968,000 | [1] | ||
Interest cost | 15,240,000 | [1] | 14,083,000 | [1] | 18,342,000 | [1] |
Actuarial loss (gain) | 82,952,000 | [1],[2] | -46,806,000 | [1],[2] | 25,809,000 | [1],[2] |
Benefits paid: Plan assets | -11,894,000 | [1] | -12,403,000 | [1] | -10,376,000 | [1] |
Curtailment | -34,000 | [1] | 0 | [1] | -78,558,000 | [1] |
Settlement | 0 | [1] | -37,815,000 | [1] | ||
Liability recognized at end of year | 0 | 0 | [1] | 0 | [1] | |
Balance at the end of the period | 408,729,000 | [1] | 322,465,000 | [1] | 367,591,000 | [1] |
Fair value of plan assets | ||||||
Balance at the beginning of the period | 316,660,000 | [1] | 346,824,000 | [1] | 350,374,000 | [1] |
Actual return of plan assets, net of expenses | 53,789,000 | [1] | -18,405,000 | [1] | 43,579,000 | [1] |
Company contributions | 643,000 | [1] | 643,000 | [1] | 1,062,000 | [1] |
Benefits paid: Plan assets | -11,894,000 | [1] | -12,402,000 | [1] | -48,191,000 | [1] |
Balance at the end of the period | 359,198,000 | [1] | 316,660,000 | [1] | 346,824,000 | [1] |
Funded status, end of period | -49,531,000 | [1] | -5,805,000 | [1] | -20,767,000 | [1] |
Net amounts recognized in the consolidated balance sheet: | ||||||
Noncurrent assets | 0 | [1] | 6,740,000 | [1] | ||
Current liabilities | -653,000 | [1] | -645,000 | [1] | -619,000 | [1] |
Noncurrent liabilities | -48,878,000 | [1] | -11,900,000 | [1] | -20,148,000 | [1] |
Total amounts recognized | -49,531,000 | [1] | -5,805,000 | [1] | -20,767,000 | [1] |
Pretax amounts recognized in accumulated other comprehensive income or loss: | ||||||
Net gain (loss) | -19,288,000 | [1] | 26,267,000 | [1] | 13,303,000 | [1] |
Total amounts recognized | -19,288,000 | [1] | 26,267,000 | [1] | 13,303,000 | [1] |
Projected benefit obligation of non-qualified unfunded plans | 10,500,000 | 9,200,000 | ||||
Accumulated benefit obligation | 408,700,000 | 322,500,000 | ||||
Postretirement | ||||||
Projected benefit obligation | ||||||
Balance at the beginning of the period | 2,291,000 | [3] | 6,687,000 | [3] | 6,725,000 | [3] |
Service cost | 82,000 | [3] | 289,000 | [3] | 285,000 | [3] |
Interest cost | 92,000 | [3] | 224,000 | [3] | 262,000 | [3] |
Actuarial loss (gain) | 256,000 | [2],[3] | -4,767,000 | [2],[3] | 166,000 | [2],[3] |
Benefits paid: Company assets | -162,000 | [3] | -142,000 | [3] | -172,000 | [3] |
Curtailment | -2,076,000 | [3] | 0 | [3] | -579,000 | [3] |
Settlement | -483,000 | [3] | ||||
Liability recognized at end of year | 385,000 | [3] | 0 | [3] | 0 | [3] |
Balance at the end of the period | 385,000 | [3] | 2,291,000 | [3] | 6,687,000 | [3] |
Fair value of plan assets | ||||||
Company contributions | 162,000 | [3] | 142,000 | [3] | 172,000 | [3] |
Benefits paid: Company assets | -162,000 | [3] | -142,000 | [3] | -172,000 | [3] |
Funded status, end of period | -385,000 | [3] | -2,291,000 | [3] | -6,687,000 | [3] |
Net amounts recognized in the consolidated balance sheet: | ||||||
Current liabilities | -23,000 | [3] | -101,000 | [3] | -178,000 | [3] |
Noncurrent liabilities | -362,000 | [3] | -2,190,000 | [3] | -6,509,000 | [3] |
Total amounts recognized | -385,000 | [3] | -2,291,000 | [3] | -6,687,000 | [3] |
Pretax amounts recognized in accumulated other comprehensive income or loss: | ||||||
Net gain (loss) | 0 | [3] | 4,185,000 | [3] | -582,000 | [3] |
Total amounts recognized | $0 | [3] | $4,185,000 | [3] | ($582,000) | [3] |
[1] | Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10.5 million at December 31, 2014 and $9.2 million at December 31, 2013. | |||||
[2] | We adopted new mortality tables in 2014, which increased the plan liabilities during 2014. | |||||
[3] | We do not currently fund postretirement benefits. |
Benefit_Plans_Details_4
Benefit Plans (Details 4) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | ||||||
Total recognized in other comprehensive income or loss | $49,740,000 | ($17,731,000) | ($67,019,000) | |||
Pension | ||||||
Benefit Plans | ||||||
Accumulated benefit obligation | 408,700,000 | 322,500,000 | ||||
PBO Exceeds Fair Value of Plan Assets | ||||||
Projected benefit obligation | 408,729,000 | 322,465,000 | ||||
Accumulated benefit obligation | 408,729,000 | 322,465,000 | ||||
Fair value of plan assets | 359,198,000 | 316,660,000 | ||||
ABO Exceeds Fair Value of Plan Assets | ||||||
Projected benefit obligation | 0 | 322,465,000 | ||||
Accumulated benefit obligation | 385,000 | 322,465,000 | ||||
Fair value of plan assets | 0 | 316,660,000 | ||||
Components of net periodic benefit cost: | ||||||
Service cost | 0 | [1] | 14,968,000 | [1] | ||
Interest cost | 15,240,000 | [1] | 14,083,000 | [1] | 18,342,000 | [1] |
Expected return on assets | -16,433,000 | -15,498,000 | -20,912,000 | |||
Actuarial loss (gain) | 6,000 | 61,000 | 285,000 | |||
Curtailment gain | 0 | -7,115,000 | ||||
Settlement loss (gain) | 0 | -1,401,000 | ||||
Expense to recognize liability | 0 | 0 | [1] | 0 | [1] | |
Net periodic benefit cost | -1,187,000 | -1,354,000 | 4,167,000 | |||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | ||||||
Net actuarial loss (gain) | 45,595,000 | -12,903,000 | 3,142,000 | |||
Amortization of net actuarial gain (loss) | -6,000 | -61,000 | -285,000 | |||
Net curtailment loss | -34,000 | 0 | -71,443,000 | |||
Net settlement gain (loss) | 0 | 1,401,000 | ||||
Total recognized in other comprehensive income or loss | 45,555,000 | -12,964,000 | -67,185,000 | |||
Total recognized in net periodic benefit cost and other comprehensive income or loss | 44,368,000 | -14,318,000 | -63,018,000 | |||
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | ||||||
Estimated net loss | 96,000 | |||||
Estimated prior service credit | 0 | |||||
Postretirement | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 82,000 | [2] | 289,000 | [2] | 285,000 | [2] |
Interest cost | 92,000 | [2] | 224,000 | [2] | 262,000 | [2] |
Actuarial loss (gain) | -302,000 | 0 | ||||
Curtailment gain | -2,076,000 | 0 | -579,000 | |||
Settlement loss (gain) | -4,110,000 | |||||
Expense to recognize liability | 385,000 | [2] | 0 | [2] | 0 | [2] |
Net periodic benefit cost | -5,929,000 | 513,000 | -32,000 | |||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | ||||||
Net actuarial loss (gain) | 256,000 | -4,767,000 | 166,000 | |||
Amortization of net actuarial gain (loss) | 302,000 | 0 | ||||
Net curtailment loss | 0 | |||||
Net settlement gain (loss) | 3,627,000 | |||||
Total recognized in other comprehensive income or loss | 4,185,000 | -4,767,000 | 166,000 | |||
Total recognized in net periodic benefit cost and other comprehensive income or loss | -1,744,000 | -4,254,000 | 134,000 | |||
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | ||||||
Estimated net loss and prior service credit | $0 | |||||
[1] | Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10.5 million at December 31, 2014 and $9.2 million at December 31, 2013. | |||||
[2] | We do not currently fund postretirement benefits. |
Benefit_Plans_Details_5
Benefit Plans (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed income securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 94.00% | |
Target asset allocation (as a percent) | 94.00% | |
Equity securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 5.00% | |
Target asset allocation (as a percent) | 6.00% | |
Cash and cash equivalents | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 1.00% | |
Pension | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 3.89% | 4.83% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 4.83% | 3.97% |
Rate of compensation increase (as a percent) | 5.29% | 4.55% |
Expected return on assets (as a percent) | 0.00% | |
Expected future benefit payments, net of participants' contribution | ||
2014 | $13,015 | |
2015 | 13,662 | |
2016 | 14,278 | |
2017 | 14,785 | |
2018 | 15,351 | |
2019-2023 | 85,340 | |
Postretirement | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 3.80% | 4.70% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 3.80% | 3.89% |
Expected future benefit payments, net of participants' contribution | ||
2014 | 23 | |
2015 | 22 | |
2016 | 22 | |
2017 | 23 | |
2018 | 23 | |
2019-2023 | $112 | |
Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.30% | |
CommoLoCo Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 6.20% |
Benefit_Plans_Details_6
Benefit Plans (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Benefit Plans | ||||
Total fair value of plan assets | $359,198 | $316,660 | ||
Level 1 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 2,170 | 2,920 | ||
Level 2 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 357,028 | 313,740 | ||
Cash and cash equivalents | ||||
Benefit Plans | ||||
Total fair value of plan assets | 2,170 | 2,920 | ||
Cash and cash equivalents | Level 1 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 2,170 | 2,920 | ||
Equity securities | U.S. | ||||
Benefit Plans | ||||
Total fair value of plan assets | 19,080 | [1] | 17,306 | [1] |
Equity securities | U.S. | Level 2 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 19,080 | [1] | 17,306 | [1] |
Equity securities | International | ||||
Benefit Plans | ||||
Total fair value of plan assets | 972 | [2] | 1,015 | [2] |
Equity securities | International | Level 2 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 972 | [2] | 1,015 | [2] |
Investment Grade Securities | U.S. | ||||
Benefit Plans | ||||
Total fair value of plan assets | 335,420 | [3] | 293,903 | [3] |
Investment Grade Securities | U.S. | Level 2 | ||||
Benefit Plans | ||||
Total fair value of plan assets | 335,420 | [3] | 293,903 | [3] |
High Yield Securities | U.S. | ||||
Benefit Plans | ||||
Total fair value of plan assets | 1,556 | [4] | 1,516 | [4] |
High Yield Securities | U.S. | Level 2 | ||||
Benefit Plans | ||||
Total fair value of plan assets | $1,556 | [4] | $1,516 | [4] |
[1] | Includes index mutual funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. | |||
[2] | Includes investment mutual funds in companies in emerging and developed markets. | |||
[3] | Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. | |||
[4] | Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. |
ShareBased_Compensation_Narrat
Share-Based Compensation - Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 08, 2013 | Sep. 30, 2013 | Oct. 31, 2013 | Oct. 09, 2013 | |
employee | |||||||
SHARE-BASED COMPENSATION | |||||||
Total income tax benefit recognized for stock-based compensation | $300,000 | $50,500,000 | |||||
Unrecognized compensation expense | 2,200,000 | ||||||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 1 year 10 months 24 days | ||||||
Service-Based Awards [Member] | |||||||
SHARE-BASED COMPENSATION | |||||||
Weighted Average Grant Date Fair Value, Granted | $25.65 | $17 | |||||
Fair value of vested shares | 1,400,000 | ||||||
Vested shares | 0 | ||||||
Restricted Stock Units | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting period of award without rights | 4 years 2 months 12 days | ||||||
Weighted Average Grant Date Fair Value, Granted | $25.65 | ||||||
Vested shares | 58,844 | ||||||
Shares granted | 192,938 | ||||||
Share-based compensation expense | 700,000 | 145,000,000 | |||||
Weighted Average Grant Date Fair Value | $17.91 | $17.03 | $17.03 | ||||
Restricted Stock Units | Springleaf Holdings, LLC | |||||||
SHARE-BASED COMPENSATION | |||||||
Share-based compensation expense | 145,000,000 | ||||||
Percentage of outstanding shares into which equity awards are converted to rights | 8.20% | ||||||
Shares delivered to holders of the award | 8,203,125 | ||||||
Weighted Average Grant Date Fair Value | $16 | ||||||
Period within which equity awards cannot be sold or transferred | 5 years | ||||||
Restricted Stock Units | Executives | Springleaf Holdings, LLC | |||||||
SHARE-BASED COMPENSATION | |||||||
Shares granted | 8.203125 | ||||||
Number of executives to whom share-based awards granted | 2 | ||||||
Share-based compensation expense | 131,300,000 | ||||||
Reductions to awards during the period (in shares) | 0.859375 | ||||||
Restricted Stock Units | Management | Springleaf Holdings, LLC | |||||||
SHARE-BASED COMPENSATION | |||||||
Additional compensation expense | 13,700,000 | ||||||
Restricted Stock Awards | |||||||
SHARE-BASED COMPENSATION | |||||||
Vesting period of award with rights | 3 years | ||||||
Performance Shares | |||||||
SHARE-BASED COMPENSATION | |||||||
Weighted Average Grant Date Fair Value, Granted | $25.78 | ||||||
Vested shares | 0 | ||||||
Shares granted | 600,230 | ||||||
Share-based compensation expense | 0 | ||||||
Weighted Average Grant Date Fair Value | $25.84 | $0 | $0 | ||||
Incentive Units | |||||||
SHARE-BASED COMPENSATION | |||||||
Share-based compensation expense | $0 | $0 | |||||
Omnibus Incentive Plan | |||||||
SHARE-BASED COMPENSATION | |||||||
Number of shares of common stock authorized | 11,478,844 | 11,478,844 | |||||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted | 10.00% |
ShareBased_Compensation_Servic
Share-Based Compensation - Service-based Activity (Details) (Restricted Stock Units, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock Units | |
Number of Shares | |
Unvested shares at beginning of period | 1,367,996 |
Granted | 192,938 |
Vested | -58,844 |
Forfeited | -149,225 |
Unvested shares at end of period | 1,352,865 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value | $17.03 |
Weighted Average Grant Date Fair Value, Granted | $25.65 |
Weighted Average Grant Date Fair Value, Vested | $23.33 |
Weighted Average Grant Date Fair Value, Forfeited | $17.73 |
Weighted Average Grant Date Fair Value | $17.91 |
Weighted Average Remaining Term (in Years) | 2 years 10 months 21 days |
ShareBased_Compensation_Perfor
Share-Based Compensation - Performance Based Activity (Details) (Performance Shares, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Performance Shares | |
Number of Shares | |
Unvested shares at beginning of period | 0 |
Granted | 600,230 |
Forfeited | -16,771 |
Unvested shares at end of period | 583,459 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value | $0 |
Weighted Average Grant Date Fair Value, Granted | $25.78 |
Weighted Average Grant Date Fair Value, Forfeited | $23.85 |
Weighted Average Grant Date Fair Value | $25.84 |
Weighted Average Remaining Term (in Years) | 3 years 7 months 2 days |
Segment_Information_Details
Segment Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Aug. 29, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Number of business segments | 3 | ||||||||||||
Finance charges | $1,574,453 | $1,647,509 | $1,691,906 | ||||||||||
Finance receivables held for sale originated as held for investment | 60,089 | 333 | 2,740 | ||||||||||
Interest income | 408,804 | 431,816 | 391,353 | 402,569 | 414,338 | 417,141 | 407,846 | 408,517 | 1,634,542 | 1,647,842 | 1,694,646 | ||
Interest expense | 157,198 | 172,492 | 171,797 | 181,746 | 192,818 | 205,270 | 214,285 | 230,306 | 683,233 | 842,679 | 1,067,709 | ||
Net interest income | 951,309 | 805,163 | 626,937 | ||||||||||
Provision for finance receivable losses | 94,186 | 92,114 | 74,246 | 107,012 | 133,509 | 101,390 | 64,384 | 94,231 | 367,558 | 393,514 | 340,962 | ||
Net interest income after provision for finance receivable losses | 583,751 | 411,649 | 285,975 | ||||||||||
Other revenues: | |||||||||||||
Insurance | 166,459 | 148,179 | 126,423 | ||||||||||
Investment | 39,019 | 33,610 | 31,134 | ||||||||||
Intersegment - insurance commissions | 0 | ||||||||||||
Net loss on repurchases and repayments of debt | -66,175 | -41,716 | -15,128 | ||||||||||
Net gain on fair value adjustments on debt | 1,523 | 0 | 0 | ||||||||||
Net gain on sales of real estate loans and related trust assets | 608,400 | 701,629 | [1] | 0 | 0 | ||||||||
Other | -13,073 | 21,765 | -28,297 | ||||||||||
Total other revenues | -25,188 | 662,819 | 92,296 | 99,455 | 41,771 | 16,751 | 56,316 | 47,000 | 829,382 | 161,838 | 114,132 | ||
Operating expenses: | |||||||||||||
Salaries and benefits | 320,742 | 447,084 | 319,932 | ||||||||||
Other operating expenses | 260,955 | 197,441 | 303,378 | ||||||||||
Restructuring expenses | 0 | 0 | 23,503 | ||||||||||
Insurance losses and loss adjustment expenses | 75,631 | 64,879 | 60,679 | ||||||||||
Total other expenses | 172,396 | 182,431 | 151,517 | 150,984 | 147,557 | 278,285 | 141,948 | 141,614 | 657,328 | 709,404 | 707,492 | ||
Income (loss) before provision for (benefit from) income taxes | -40,164 | 647,598 | 86,089 | 62,282 | -17,775 | -151,053 | 43,545 | -10,634 | 755,805 | -135,917 | -307,385 | ||
Income before provision for income taxes attributable to non-controlling interests | 44,497 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 711,308 | ||||||||||||
Assets | 11,126,470 | 12,732,037 | 11,126,470 | 12,732,037 | 14,640,212 | ||||||||
Operating segments | Consumer and Insurance | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Number of business segments | 2 | ||||||||||||
Finance charges | 911,098 | 720,824 | 585,041 | ||||||||||
Finance receivables held for sale originated as held for investment | 0 | ||||||||||||
Interest income | 911,098 | 720,824 | 585,041 | ||||||||||
Interest expense | 163,299 | 149,228 | 141,710 | ||||||||||
Net interest income | 747,799 | 571,596 | 443,331 | ||||||||||
Provision for finance receivable losses | 200,071 | 116,570 | 90,598 | ||||||||||
Net interest income after provision for finance receivable losses | 547,728 | 455,026 | 352,733 | ||||||||||
Other revenues: | |||||||||||||
Insurance | 166,345 | 148,131 | 126,423 | ||||||||||
Investment | 44,532 | 41,704 | 41,417 | ||||||||||
Intersegment - insurance commissions | -434 | -30 | -272 | ||||||||||
Net loss on repurchases and repayments of debt | -6,690 | -5,354 | 5,890 | ||||||||||
Net gain on fair value adjustments on debt | 0 | ||||||||||||
Net gain on sales of real estate loans and related trust assets | 0 | [1] | |||||||||||
Other | 10,833 | 11,695 | 10,788 | ||||||||||
Total other revenues | 214,586 | 196,146 | 184,246 | ||||||||||
Operating expenses: | |||||||||||||
Salaries and benefits | 273,584 | 253,676 | 258,683 | ||||||||||
Other operating expenses | 172,321 | 128,099 | 124,920 | ||||||||||
Restructuring expenses | 15,863 | ||||||||||||
Insurance losses and loss adjustment expenses | 76,568 | 65,783 | 62,092 | ||||||||||
Total other expenses | 522,473 | 447,558 | 461,558 | ||||||||||
Income (loss) before provision for (benefit from) income taxes | 239,841 | 203,614 | 75,421 | ||||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 239,841 | ||||||||||||
Assets | 4,472,211 | 4,186,573 | 4,472,211 | 4,186,573 | 3,573,653 | ||||||||
Operating segments | Acquisitions and Servicing Segment | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Finance charges | 216,758 | ||||||||||||
Finance receivables held for sale originated as held for investment | 0 | ||||||||||||
Interest income | 216,758 | ||||||||||||
Interest expense | 35,351 | ||||||||||||
Net interest income | 181,407 | ||||||||||||
Provision for finance receivable losses | 48,968 | ||||||||||||
Net interest income after provision for finance receivable losses | 132,439 | ||||||||||||
Other revenues: | |||||||||||||
Investment | 5,347 | ||||||||||||
Net loss on repurchases and repayments of debt | -21,152 | ||||||||||||
Net gain on fair value adjustments on debt | 1,523 | ||||||||||||
Net gain on sales of real estate loans and related trust assets | 0 | [1] | |||||||||||
Total other revenues | -14,282 | ||||||||||||
Operating expenses: | |||||||||||||
Salaries and benefits | 2 | ||||||||||||
Other operating expenses | 29,810 | ||||||||||||
Total other expenses | 29,812 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes | 88,345 | ||||||||||||
Income before provision for income taxes attributable to non-controlling interests | 44,497 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 43,848 | ||||||||||||
Assets | 2,431,267 | 2,431,267 | |||||||||||
Operating segments | Real Estate Loans | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Finance charges | 350,335 | 690,329 | 810,441 | ||||||||||
Finance receivables held for sale originated as held for investment | 51,316 | 2,734 | |||||||||||
Interest income | 401,651 | 690,329 | 813,175 | ||||||||||
Interest expense | 349,544 | 538,939 | 659,536 | ||||||||||
Net interest income | 52,107 | 151,390 | 153,639 | ||||||||||
Provision for finance receivable losses | 128,213 | 255,438 | 54,061 | ||||||||||
Net interest income after provision for finance receivable losses | -76,106 | -104,048 | 99,578 | ||||||||||
Other revenues: | |||||||||||||
Insurance | 0 | ||||||||||||
Investment | -891 | ||||||||||||
Intersegment - insurance commissions | 445 | 134 | 95 | ||||||||||
Net loss on repurchases and repayments of debt | -21,977 | -46,388 | 13,777 | ||||||||||
Net gain on fair value adjustments on debt | 8,298 | 56,890 | 10,369 | ||||||||||
Net gain on sales of real estate loans and related trust assets | 191,809 | [1] | |||||||||||
Other | -15,335 | -3,794 | -74,450 | ||||||||||
Total other revenues | 162,349 | 6,842 | -50,209 | ||||||||||
Operating expenses: | |||||||||||||
Salaries and benefits | 37,023 | 27,205 | 29,617 | ||||||||||
Other operating expenses | 54,572 | 56,900 | 73,851 | ||||||||||
Restructuring expenses | 818 | ||||||||||||
Total other expenses | 91,595 | 84,105 | 104,286 | ||||||||||
Income (loss) before provision for (benefit from) income taxes | -5,352 | -181,311 | -54,917 | ||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | -5,352 | ||||||||||||
Assets | 3,647,123 | 8,472,387 | 3,647,123 | 8,472,387 | 9,627,259 | ||||||||
Other | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Finance charges | 16,429 | 45,035 | 100,097 | ||||||||||
Finance receivables held for sale originated as held for investment | 333 | ||||||||||||
Interest income | 16,429 | 45,368 | 100,097 | ||||||||||
Interest expense | 7,393 | 15,009 | 33,775 | ||||||||||
Net interest income | 9,036 | 30,359 | 66,322 | ||||||||||
Provision for finance receivable losses | 6,502 | -199 | 10,659 | ||||||||||
Net interest income after provision for finance receivable losses | 2,534 | 30,558 | 55,663 | ||||||||||
Other revenues: | |||||||||||||
Insurance | 119 | 80 | 108 | ||||||||||
Intersegment - insurance commissions | -11 | -104 | 177 | ||||||||||
Net loss on repurchases and repayments of debt | -326 | -1,071 | 1,415 | ||||||||||
Net gain on fair value adjustments on debt | 0 | ||||||||||||
Net gain on sales of real estate loans and related trust assets | 0 | [1] | |||||||||||
Other | 5,979 | 14,226 | 21,148 | ||||||||||
Total other revenues | 5,761 | 13,131 | 22,848 | ||||||||||
Operating expenses: | |||||||||||||
Salaries and benefits | 10,512 | 166,401 | 32,162 | ||||||||||
Other operating expenses | 499 | 8,239 | 94,867 | ||||||||||
Restructuring expenses | 6,822 | ||||||||||||
Insurance losses and loss adjustment expenses | 0 | ||||||||||||
Total other expenses | 11,011 | 174,640 | 133,851 | ||||||||||
Income (loss) before provision for (benefit from) income taxes | -2,716 | -130,951 | -55,340 | ||||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | -2,716 | ||||||||||||
Assets | 563,975 | 663,997 | 563,975 | 663,997 | 2,230,109 | ||||||||
Eliminations | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Interest expense | -5,347 | ||||||||||||
Net interest income | 5,347 | ||||||||||||
Net interest income after provision for finance receivable losses | 5,347 | ||||||||||||
Other revenues: | |||||||||||||
Insurance | 0 | ||||||||||||
Investment | -5,347 | ||||||||||||
Net loss on repurchases and repayments of debt | 0 | ||||||||||||
Net gain on fair value adjustments on debt | 0 | ||||||||||||
Net gain on sales of real estate loans and related trust assets | 0 | [1] | |||||||||||
Total other revenues | -5,347 | ||||||||||||
Operating expenses: | |||||||||||||
Insurance losses and loss adjustment expenses | 0 | ||||||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | ||||||||||||
Push-down Accounting Adjustments | |||||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||||
Finance charges | 79,833 | 191,321 | 196,327 | ||||||||||
Finance receivables held for sale originated as held for investment | 8,773 | 6 | |||||||||||
Interest income | 88,606 | 191,321 | 196,333 | ||||||||||
Interest expense | 132,993 | 139,503 | 232,688 | ||||||||||
Net interest income | -44,387 | 51,818 | -36,355 | ||||||||||
Provision for finance receivable losses | -16,196 | 21,705 | 185,644 | ||||||||||
Net interest income after provision for finance receivable losses | -28,191 | 30,113 | -221,999 | ||||||||||
Other revenues: | |||||||||||||
Insurance | -5 | -32 | -108 | ||||||||||
Investment | -4,622 | -8,094 | -10,283 | ||||||||||
Net loss on repurchases and repayments of debt | -16,030 | 11,097 | -36,210 | ||||||||||
Net gain on fair value adjustments on debt | -8,298 | -56,890 | -10,369 | ||||||||||
Net gain on sales of real estate loans and related trust assets | 509,820 | [1] | |||||||||||
Other | -14,550 | -362 | 14,217 | ||||||||||
Total other revenues | 466,315 | -54,281 | -42,753 | ||||||||||
Operating expenses: | |||||||||||||
Salaries and benefits | -379 | -198 | -530 | ||||||||||
Other operating expenses | 3,753 | 4,203 | 9,740 | ||||||||||
Insurance losses and loss adjustment expenses | -937 | -904 | -1,413 | ||||||||||
Total other expenses | 2,437 | 3,101 | 7,797 | ||||||||||
Income (loss) before provision for (benefit from) income taxes | 435,687 | -27,269 | -272,549 | ||||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | ||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 435,687 | ||||||||||||
Assets | $11,894 | ($590,920) | $11,894 | ($590,920) | ($790,809) | ||||||||
[1] | For purposes of our segment reporting presentation, we have combined the lower of cost or fair value adjustments recorded on the dates the real estate loans were transferred to finance receivables held for sale with the final gain (loss) on the sales of these loans. |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets | ||||
Investment securities | $2,921,815 | $555,614 | ||
Note receivable from parent | 251,489 | 167,989 | ||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||
Other assets: | ||||
Commercial mortgage loans | 103,546 | [1] | 109,465 | [1] |
Escrow advance receivable | 8,069 | 23,527 | ||
Receivables from parent and affiliates | 11,563 | 39,364 | ||
Liabilities | ||||
Long-term debt | 9,181,765 | 11,776,576 | ||
Fair Value Measurements Using Level 1 | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 749,582 | 374,835 | ||
Investment securities | 0 | |||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||
Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Investment securities | 2,912,516 | 531,997 | ||
Note receivable from parent | 251,489 | 167,989 | ||
Other assets: | ||||
Receivables from parent and affiliates | 11,563 | 39,364 | ||
Receivables related to sales of real estate loans and related trust assets | 67,115 | |||
Liabilities | ||||
Long-term debt | 9,181,765 | 11,776,576 | ||
Payable to parent and affiliate | 47,680 | 38,463 | ||
Fair Value Measurements Using Level 3 | ||||
Assets | ||||
Investment securities | 9,299 | 23,617 | ||
Net finance receivables, less allowance for finance receivable losses | 6,948,883 | 11,113,980 | ||
Finance receivables held for sale | 208,767 | |||
Other assets: | ||||
Commercial mortgage loans | 78,173 | 94,681 | ||
Escrow advance receivable | 8,069 | 23,527 | ||
Total Fair Value | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 749,582 | 374,835 | ||
Investment securities | 2,921,815 | 555,614 | ||
Net finance receivables, less allowance for finance receivable losses | 6,948,883 | 11,113,980 | ||
Finance receivables held for sale | 208,767 | |||
Note receivable from parent | 251,489 | 167,989 | ||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||
Other assets: | ||||
Commercial mortgage loans | 78,173 | 94,681 | ||
Escrow advance receivable | 8,069 | 23,527 | ||
Receivables from parent and affiliates | 11,563 | 39,364 | ||
Receivables related to sales of real estate loans and related trust assets | 67,115 | |||
Liabilities | ||||
Long-term debt | 9,181,765 | 11,776,576 | ||
Payable to parent and affiliate | 47,680 | 38,463 | ||
Total Carrying Value | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 749,582 | 374,835 | ||
Investment securities | 2,921,815 | 555,614 | ||
Net finance receivables, less allowance for finance receivable losses | 6,277,795 | 10,811,664 | ||
Finance receivables held for sale | 204,967 | |||
Note receivable from parent | 251,489 | 167,989 | ||
Restricted cash and cash equivalents | 217,975 | 358,759 | ||
Other assets: | ||||
Commercial mortgage loans | 84,539 | 102,200 | ||
Escrow advance receivable | 8,069 | 23,527 | ||
Receivables from parent and affiliates | 11,563 | 39,364 | ||
Receivables related to sales of real estate loans and related trust assets | 78,747 | |||
Liabilities | ||||
Long-term debt | 8,384,910 | 10,640,728 | ||
Payable to parent and affiliate | $47,680 | $38,463 | ||
[1] | (b)Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Assets | ||||
Available-for-sale securities | $600,814,000 | $503,364,000 | ||
Trading securities | 2,320,517,000 | 51,654,000 | ||
Investment securities | 2,921,815,000 | 555,614,000 | ||
Interest in a limited partnership | 500,000 | 600,000 | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | 0 | ||
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | ||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | ||
Investment securities: | ||||
Assets | ||||
Available-for-sale securities | 591,703,000 | 493,440,000 | ||
U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 63,331,000 | 58,633,000 | ||
Trading securities | 302,084,000 | |||
Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,683,000 | 102,745,000 | ||
Trading securities | 13,788,000 | |||
Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 266,928,000 | 237,916,000 | ||
Trading securities | 1,055,682,000 | 1,837,000 | ||
RMBS | ||||
Assets | ||||
Available-for-sale securities | 72,957,000 | 82,623,000 | ||
Trading securities | 35,491,000 | 10,671,000 | ||
CMBS | ||||
Assets | ||||
Available-for-sale securities | 24,429,000 | 7,547,000 | ||
Trading securities | 148,880,000 | 29,897,000 | ||
CDO/ABS | ||||
Assets | ||||
Available-for-sale securities | 61,250,000 | 3,976,000 | ||
Trading securities | 507,342,000 | 9,249,000 | ||
Common stocks | ||||
Assets | ||||
Available-for-sale securities | 674,000 | [1] | 850,000 | [1] |
Preferred stocks | ||||
Assets | ||||
Available-for-sale securities | 7,094,000 | 7,805,000 | ||
Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,343,000 | [2] | 1,269,000 | [2] |
Fair Value Measurements Using Level 1 | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 749,582,000 | 374,835,000 | ||
Investment securities | 0 | |||
Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Investment securities | 2,912,516,000 | 531,997,000 | ||
Fair Value Measurements Using Level 3 | ||||
Assets | ||||
Investment securities | 9,299,000 | 23,617,000 | ||
Recurring basis | Fair Value Measurements Using Level 1 | ||||
Assets | ||||
Cash and cash equivalents in mutual funds | 236,480,000 | 185,829,000 | ||
Available-for-sale securities | 0 | [3] | ||
Investment securities | 0 | |||
Restricted cash in mutual funds | 206,691,000 | 321,617,000 | ||
Total | 443,171,000 | 507,446,000 | ||
Recurring basis | Fair Value Measurements Using Level 1 | Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 0 | [4] | ||
Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Available-for-sale securities | 592,162,000 | 487,726,000 | [3] | |
Trading securities | 2,320,354,000 | 44,271,000 | ||
Investment securities | 2,912,516,000 | 531,997,000 | ||
Total | 3,077,225,000 | 531,997,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Investment securities: | ||||
Assets | ||||
Available-for-sale securities | 585,068,000 | 479,921,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 63,331,000 | 58,633,000 | ||
Trading securities | 302,084,000 | |||
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,683,000 | 102,745,000 | ||
Trading securities | 13,788,000 | |||
Recurring basis | Fair Value Measurements Using Level 2 | Non-U.S. government and government sponsored entities | ||||
Assets | ||||
Trading securities | 19,613,000 | |||
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 262,850,000 | 225,312,000 | ||
Trading securities | 1,055,682,000 | 1,837,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | RMBS | ||||
Assets | ||||
Available-for-sale securities | 72,901,000 | 82,510,000 | ||
Trading securities | 35,328,000 | 10,671,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | CMBS | ||||
Assets | ||||
Available-for-sale securities | 21,928,000 | 7,545,000 | ||
Trading securities | 148,880,000 | 29,897,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | CDO/ABS | ||||
Assets | ||||
Available-for-sale securities | 61,250,000 | 3,176,000 | ||
Trading securities | 507,342,000 | 1,866,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stocks | ||||
Assets | ||||
Available-for-sale securities | 7,094,000 | 7,805,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | ||||
Assets | ||||
Available-for-sale securities | 7,978,000 | 14,788,000 | [3] | |
Trading securities | 163,000 | 7,383,000 | ||
Investment securities | 8,141,000 | 22,171,000 | ||
Total | 8,141,000 | 22,171,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Investment securities: | ||||
Assets | ||||
Available-for-sale securities | 6,635,000 | 13,519,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 4,078,000 | 12,604,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | RMBS | ||||
Assets | ||||
Available-for-sale securities | 56,000 | 113,000 | ||
Trading securities | 163,000 | |||
Recurring basis | Fair Value Measurements Using Level 3 | CMBS | ||||
Assets | ||||
Available-for-sale securities | 2,501,000 | 2,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | CDO/ABS | ||||
Assets | ||||
Available-for-sale securities | 0 | 800,000 | ||
Trading securities | 0 | 7,383,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Preferred stocks | ||||
Assets | ||||
Available-for-sale securities | 0 | |||
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,343,000 | 1,269,000 | [4] | |
Total | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 749,582,000 | 374,835,000 | ||
Investment securities | 2,921,815,000 | 555,614,000 | ||
Total | Recurring basis | ||||
Assets | ||||
Cash and cash equivalents in mutual funds | 236,480,000 | 185,829,000 | ||
Available-for-sale securities | 600,140,000 | 502,514,000 | [3] | |
Trading securities | 2,320,517,000 | 51,654,000 | ||
Investment securities | 2,920,657,000 | 554,168,000 | ||
Restricted cash in mutual funds | 206,691,000 | 321,617,000 | ||
Total | 3,528,537,000 | 1,061,614,000 | ||
Total | Recurring basis | Investment securities: | ||||
Assets | ||||
Available-for-sale securities | 591,703,000 | 493,440,000 | ||
Total | Recurring basis | U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 63,331,000 | 58,633,000 | ||
Trading securities | 302,084,000 | |||
Total | Recurring basis | Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,683,000 | 102,745,000 | ||
Trading securities | 13,788,000 | |||
Total | Recurring basis | Non-U.S. government and government sponsored entities | ||||
Assets | ||||
Trading securities | 19,613,000 | |||
Total | Recurring basis | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 266,928,000 | 237,916,000 | ||
Trading securities | 1,055,682,000 | 1,837,000 | ||
Total | Recurring basis | RMBS | ||||
Assets | ||||
Available-for-sale securities | 72,957,000 | 82,623,000 | ||
Trading securities | 35,491,000 | 10,671,000 | ||
Total | Recurring basis | CMBS | ||||
Assets | ||||
Available-for-sale securities | 24,429,000 | 7,547,000 | ||
Trading securities | 148,880,000 | 29,897,000 | ||
Total | Recurring basis | CDO/ABS | ||||
Assets | ||||
Available-for-sale securities | 61,250,000 | 3,976,000 | ||
Trading securities | 507,342,000 | 9,249,000 | ||
Total | Recurring basis | Preferred stocks | ||||
Assets | ||||
Available-for-sale securities | 7,094,000 | 7,805,000 | ||
Total | Recurring basis | Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,343,000 | 1,269,000 | [4] | |
Not Carried at Fair Value | Common stocks | ||||
Assets | ||||
Available-for-sale securities | 700,000 | 900,000 | ||
Certificates of deposit and commercial paper | Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 164,709,000 | |||
Certificates of deposit and commercial paper | Total | Recurring basis | ||||
Assets | ||||
Cash equivalents in certificates of deposit and commercial paper | 164,709,000 | |||
Cash Equivalents | Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Available-for-sale securities | 1,125,000 | |||
Cash Equivalents | Total | Recurring basis | ||||
Assets | ||||
Available-for-sale securities | 1,125,000 | |||
Cash and cash equivalents | Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Trading securities | 237,637,000 | |||
Cash and cash equivalents | Total | Recurring basis | ||||
Assets | ||||
Trading securities | $237,637,000 | |||
[1] | Consists of Federal Home Loan Bank common stock, which is classified as a restricted investment and carried at cost. | |||
[2] | Excludes interest in a limited partnership that we account for using the equity method ($0.5 million at December 31, 2014 and $0.6 million at December 31, 2013). | |||
[3] | Common stocks not carried at fair value totaled $0.7 million at December 31, 2014 and $0.9 million at December 31, 2013 and, therefore, have been excluded from the table above. | |||
[4] | Other long-term investments excludes our interest in a limited partnership of $0.5 million at December 31, 2014 and $0.6 million at December 31, 2013 that we account for using the equity method. |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Purchases, sales, or issues of investment securities | $0 | |||
Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 14,788 | 16,224 | ||
Net gains (losses) included in: Other revenues | 137 | -220 | ||
Net gains (losses) included in: Other comprehensive income (loss) | -146 | 452 | ||
Purchases, sales, issues, settlements | -8,484 | [1] | -661 | [2] |
Transfers into Level 3 | 2,486 | [3] | ||
Transfers out of Level 3 | -803 | [4] | -1,007 | |
Balance at end of period | 7,978 | 14,788 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Purchases | 2,016 | |||
Sales | -1,035 | |||
Settlements | -1,642 | |||
Total | -8,484 | [1] | -661 | [2] |
Trading securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 7,383 | |||
Net gains (losses) included in: Other revenues | 61 | |||
Net gains (losses) included in: Other comprehensive income (loss) | -96 | |||
Purchases, sales, issues, settlements | -6,827 | [1] | ||
Transfers into Level 3 | 1,602 | [3] | ||
Transfers out of Level 3 | -1,960 | [4] | ||
Balance at end of period | 163 | |||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Total | -6,827 | [1] | ||
Investment securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 22,171 | 28,416 | ||
Net gains (losses) included in: Other revenues | 198 | -167 | ||
Net gains (losses) included in: Other comprehensive income (loss) | -242 | 452 | ||
Purchases, sales, issues, settlements | -15,311 | [1] | -5,523 | [2] |
Transfers into Level 3 | 4,088 | [3] | ||
Transfers out of Level 3 | -2,763 | [4] | -1,007 | |
Balance at end of period | 8,141 | 22,171 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Purchases | 2,016 | |||
Sales | -1,035 | |||
Settlements | -6,504 | |||
Total | -15,311 | [1] | -5,523 | [2] |
Bonds: | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 13,519 | 14,844 | ||
Net gains (losses) included in: Other revenues | 137 | -222 | ||
Net gains (losses) included in: Other comprehensive income (loss) | -310 | 554 | ||
Purchases, sales, issues, settlements | -8,394 | [1] | -650 | [2] |
Transfers into Level 3 | 2,486 | [3] | ||
Transfers out of Level 3 | -803 | [4] | -1,007 | |
Balance at end of period | 6,635 | 13,519 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Purchases | 2,016 | |||
Sales | -1,035 | |||
Settlements | -1,631 | |||
Total | -8,394 | [1] | -650 | [2] |
Corporate debt | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 12,604 | 13,417 | ||
Net gains (losses) included in: Other revenues | 151 | -180 | ||
Net gains (losses) included in: Other comprehensive income (loss) | -283 | 475 | ||
Purchases, sales, issues, settlements | -8,394 | [1] | -101 | [2] |
Transfers out of Level 3 | 0 | [4] | -1,007 | |
Balance at end of period | 4,078 | 12,604 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Purchases | 2,016 | |||
Sales | -1,035 | |||
Settlements | -1,082 | |||
Total | -8,394 | [1] | -101 | [2] |
RMBS | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 113 | 74 | ||
Net gains (losses) included in: Other revenues | -14 | -35 | ||
Net gains (losses) included in: Other comprehensive income (loss) | -43 | 74 | ||
Balance at end of period | 56 | 113 | ||
RMBS | Trading securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Net gains (losses) included in: Other revenues | -80 | |||
Net gains (losses) included in: Other comprehensive income (loss) | -96 | |||
Purchases, sales, issues, settlements | -106 | [1] | ||
Transfers into Level 3 | 1,602 | [3] | ||
Transfers out of Level 3 | -1,157 | [4] | ||
Balance at end of period | 163 | |||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Total | -106 | [1] | ||
CMBS | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 2 | 153 | ||
Net gains (losses) included in: Other revenues | 0 | -7 | ||
Net gains (losses) included in: Other comprehensive income (loss) | 13 | 5 | ||
Purchases, sales, issues, settlements | 0 | [1] | -149 | [2] |
Transfers into Level 3 | 2,486 | [3] | ||
Balance at end of period | 2,501 | 2 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Settlements | -149 | |||
Total | 0 | [1] | -149 | [2] |
CDO/ABS | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 800 | 1,200 | ||
Net gains (losses) included in: Other comprehensive income (loss) | 3 | |||
Purchases, sales, issues, settlements | 0 | [1] | -400 | [2] |
Transfers out of Level 3 | -803 | [4] | ||
Balance at end of period | 0 | 800 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Settlements | -400 | |||
Total | 0 | [1] | -400 | [2] |
CDO/ABS | Trading securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 7,383 | 12,192 | ||
Net gains (losses) included in: Other revenues | 141 | 53 | ||
Purchases, sales, issues, settlements | -6,721 | [1] | -4,862 | [2] |
Transfers out of Level 3 | -803 | [4] | ||
Balance at end of period | 0 | 7,383 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Settlements | -4,862 | |||
Total | -6,721 | [1] | -4,862 | [2] |
Other long-term investments | Available-for-sale securities | ||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Balance at beginning of period | 1,269 | 1,380 | ||
Net gains (losses) included in: Other revenues | 0 | 2 | ||
Net gains (losses) included in: Other comprehensive income (loss) | 164 | -102 | ||
Purchases, sales, issues, settlements | -90 | [1] | -11 | [2] |
Balance at end of period | 1,343 | 1,269 | ||
Detail of purchases, sales, issues, and settlements of Level 3 assets and liabilities measured at fair value on a recurring basis | ||||
Settlements | -11 | |||
Total | ($90) | [1] | ($11) | [2] |
[1] | “Purchases, sales, issues, and settlements†column consists only of settlements. There were no purchases, sales, or issues of investment securities for 2014. | |||
[2] | The detail of purchases, sales, issues, and settlements during 2013 is presented in the following table. | |||
[3] | During 2014, we transferred $2.5 million of CMBS available-for-sale securities and $1.6 million of RMBS trading securities into Level 3 primarily related to the re-evaluated observability of pricing inputs. | |||
[4] | During 2014, we transferred $0.8 million of CDO/ABS available-for-sale securities, $1.2 million of RMBS trading securities, and $0.8 million of CDO/ABS trading securities out of Level 3 primarily related to the re-evaluated observability of pricing inputs. |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Level 3, Recurring, Discounted cash flows) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | ||
bond | |||
Corporate debt | |||
Valuation of Level 3 Financial Instruments | |||
Number of Bonds | 1 | ||
Unobservable Input | |||
Yield (as a percent) | 1.05% | [1] | |
Corporate debt | Minimum | |||
Unobservable Input | |||
Yield (as a percent) | 2.68% | ||
Corporate debt | Maximum | |||
Unobservable Input | |||
Yield (as a percent) | 8.48% | ||
Corporate debt | Weighted Average | |||
Unobservable Input | |||
Yield (as a percent) | 4.67% | ||
RMBS | |||
Valuation of Level 3 Financial Instruments | |||
Number of Bonds | 1 | ||
Unobservable Input | |||
Fair Value Inputs, Entity Credit Risk | 1.39% | [1] | |
CMBS | |||
Valuation of Level 3 Financial Instruments | |||
Number of Bonds | 1 | ||
Collateralized Mortgage Backed Securities [Member] | |||
Unobservable Input | |||
Fair Value Inputs, Entity Credit Risk | 7.36% | [1] | |
[1] | At December 31, 2014, corporate debt, RMBS, and CMBS each consisted of one bond. |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets measured at fair value on a non-recurring basis | ||||
Writedowns on assets resulting from restructuring | $0 | $5,046 | ||
Non-recurring basis | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 83,404 | 30,242 | 83,404 | |
Writedowns on assets resulting from restructuring | 23,247 | 13,436 | ||
Non-recurring basis | Real estate owned | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 71,469 | 19,446 | 71,469 | |
Impairment Charges | 25,257 | 15,264 | ||
Non-recurring basis | Commercial mortgage loans | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 11,935 | 10,796 | 11,935 | |
Impairment Charges | -2,010 | -1,828 | ||
Non-recurring basis | Fair Value Measurements Using Level 3 | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 83,404 | 30,242 | 83,404 | |
Non-recurring basis | Fair Value Measurements Using Level 3 | Real estate owned | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 71,469 | 19,446 | 71,469 | |
Non-recurring basis | Fair Value Measurements Using Level 3 | Commercial mortgage loans | ||||
Assets measured at fair value on a non-recurring basis | ||||
Assets at fair value | 11,935 | 10,796 | 11,935 | |
Loan Origination and Processing | Non-recurring basis | ||||
Assets measured at fair value on a non-recurring basis | ||||
Effect on Future Cash Flows, Amount | $0 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $408,804 | $431,816 | $391,353 | $402,569 | $414,338 | $417,141 | $407,846 | $408,517 | $1,634,542 | $1,647,842 | $1,694,646 |
Interest expense | 157,198 | 172,492 | 171,797 | 181,746 | 192,818 | 205,270 | 214,285 | 230,306 | 683,233 | 842,679 | 1,067,709 |
Provision for finance receivable losses | 94,186 | 92,114 | 74,246 | 107,012 | 133,509 | 101,390 | 64,384 | 94,231 | 367,558 | 393,514 | 340,962 |
Total other revenues | -25,188 | 662,819 | 92,296 | 99,455 | 41,771 | 16,751 | 56,316 | 47,000 | 829,382 | 161,838 | 114,132 |
Total other expenses | 172,396 | 182,431 | 151,517 | 150,984 | 147,557 | 278,285 | 141,948 | 141,614 | 657,328 | 709,404 | 707,492 |
Income (loss) before provision for (benefit from) income taxes | -40,164 | 647,598 | 86,089 | 62,282 | -17,775 | -151,053 | 43,545 | -10,634 | 755,805 | -135,917 | -307,385 |
Provision for (benefit from) income taxes | -12,618 | 219,092 | 32,811 | 24,080 | -9,180 | -57,145 | 16,398 | -3,350 | 263,365 | -53,277 | -88,317 |
Net income (loss) | -27,546 | 428,506 | 53,278 | 38,202 | -8,595 | -93,908 | 27,147 | -7,284 | 492,440 | -82,640 | -219,068 |
Net income attributable to non-controlling interests | 21,272 | 23,225 | 0 | 0 | 44,497 | 0 | 0 | ||||
Net income (loss) attributable to Springleaf Finance Corporation | ($48,818) | $405,281 | $53,278 | $38,202 | $447,943 | ($82,640) | ($219,068) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
Dec. 20, 2013 | Dec. 31, 2014 | Jan. 16, 2015 | Feb. 26, 2015 | Sep. 30, 2015 | Mar. 09, 2015 | |
Subsequent events | ||||||
Long-term Debt, Gross | 9,021,128,000 | |||||
Consolidated VIEs | Asset-backed securities | Sumner Brook 2013-VFN1 Securitization | ||||||
Subsequent events | ||||||
Funding Period | 2 years | 2 years | ||||
Maximum principal balance of notes that can be issued under private securitization transaction | 350,000,000 | |||||
Amount Funded at Closing of Securitization Transaction | 0 | |||||
Subsequent event | Consolidated VIEs | Asset-backed securities | Sumner Brook 2013-VFN1 Securitization | ||||||
Subsequent events | ||||||
Funding Period | 3 years | |||||
Maximum principal balance of notes that can be issued under private securitization transaction | 350,000,000 | |||||
Amount Funded at Closing of Securitization Transaction | 0 | |||||
Personal Loans | Subsequent event | Consolidated VIEs | Asset-backed securities | Springleaf Funding Trust 2015-A | ||||||
Subsequent events | ||||||
Amount of notes sold under private securitization | 1,200,000,000 | |||||
Weighted average yield (as a percent) | 3.55% | |||||
Principal Amount of Previously Retained Notes Issued | 1,200,000,000 | |||||
Interest reserve requirement on notes sold under securitization | 12,500,000 | |||||
SpringCastle 2014-A Notes, Class C | Subsequent event | Springleaf Acquisition Corporation | ||||||
Subsequent events | ||||||
Long-term Debt, Gross | 231,700,000 | |||||
SpringCastle 2014-A Notes, Class D | Subsequent event | Springleaf Acquisition Corporation | ||||||
Subsequent events | ||||||
Long-term Debt, Gross | 130,800,000 | |||||
Scenario, Forecast | OneMain Financial Holdings, Inc. | ||||||
Subsequent events | ||||||
Payments to Acquire Businesses, Gross | $4,250,000,000 |