Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document Information [Line Items] | ||
Entity Registrant Name | SPRINGLEAF FINANCE CORP | |
Entity Central Index Key | 25598 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,160,020 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $2,294 | $749 |
Investment securities | 2,736 | 2,922 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $2.8 billion in 2015 and $1.9 billion in 2014) | 3,882 | 3,800 |
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.9 billion in 2015 and $2.0 billion in 2014) | 1,868 | 1,979 |
Real estate loans | 598 | 625 |
Retail sales finance | 39 | 48 |
Net finance receivables | 6,387 | 6,452 |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $76 million in 2015 and $72 million in 2014) | -175 | -174 |
Net finance receivables, less allowance for finance receivable losses | 6,212 | 6,278 |
Finance receivables held for sale | 199 | 205 |
Note receivable from parent | 263 | 251 |
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $330 million in 2015 and $210 million in 2014) | 344 | 218 |
Other assets | 441 | 503 |
Total assets | 12,489 | 11,126 |
Liabilities and Shareholder's Equity | ||
Long-term debt (includes debt of consolidated VIEs of $4.9 billion in 2015 and $3.6 billion in 2014) | 9,635 | 8,385 |
Insurance claims and policyholder liabilities | 443 | 446 |
Deferred and accrued taxes | 145 | 159 |
Other liabilities | 369 | 255 |
Total liabilities | 10,592 | 9,245 |
Commitments and contingent liabilities | ||
Shareholder's equity: | ||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,020 shares issued and outstanding at March 31, 2015 and December 31, 2014 | 5 | 5 |
Additional paid-in capital | 740 | 740 |
Accumulated other comprehensive income | 3 | 3 |
Retained earnings | 1,324 | 1,321 |
Springleaf Finance Corporation shareholder’s equity | 2,072 | 2,069 |
Non-controlling interests | -175 | -188 |
Total shareholder’s equity | 1,897 | 1,881 |
Total liabilities and shareholder’s equity | $12,489 | $11,126 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Personal loans | $3,882 | $3,800 |
SpringCastle Portfolio | 1,868 | 1,979 |
Allowance for finance receivable losses | 175 | 174 |
Restricted cash and cash equivalents | 344 | 218 |
Long-term debt | 9,635 | 8,385 |
Common Stock, par value (dollars per share) | $0.50 | $0.50 |
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common shares, shares issued | 10,160,020 | 10,160,020 |
Common shares, shares outstanding | 10,160,020 | 10,160,020 |
Consolidated VIEs | ||
Personal loans | 2,800 | 1,900 |
SpringCastle Portfolio | 1,900 | 2,000 |
Allowance for finance receivable losses | 76 | 72 |
Restricted cash and cash equivalents | 330 | 210 |
Long-term debt | $4,878 | $3,644 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Finance charges | $398 | $398 |
Finance receivables held for sale originated as held for investment | 4 | 4 |
Total interest income | 402 | 402 |
Interest expense | 158 | 182 |
Net interest income | 244 | 220 |
Provision for finance receivable losses | 86 | 107 |
Net interest income after provision for finance receivable losses | 158 | 113 |
Other revenues: | ||
Insurance | 36 | 38 |
Investment | 17 | 10 |
Net loss on repurchases and repayments of debt | 0 | -7 |
Net gain on sales of real estate loans and related trust assets | 0 | 55 |
Other | 0 | 4 |
Total other revenues | 53 | 100 |
Operating expenses: | ||
Salaries and benefits | 80 | 82 |
Other operating expenses | 73 | 51 |
Insurance losses and loss adjustment expenses | 16 | 18 |
Total other expenses | 169 | 151 |
Income before provision for income taxes | 42 | 62 |
Provision for income taxes | 8 | 24 |
Net income | 34 | 38 |
Net income attributable to non-controlling interests | 31 | |
Net income attributable to Springleaf Finance Corporation | $3 | $38 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $34 | $38 |
Net unrealized gains on: | ||
Net unrealized gains on non-credit impaired investment securities | 5 | 10 |
Foreign currency translation adjustments | 1 | 0 |
Net unrealized gains on: | ||
Net unrealized gains on non-credit impaired investment securities | -2 | -4 |
Other comprehensive income, net of tax, before reclassification adjustments | 4 | 6 |
Reclassification adjustments included in net income: | ||
Net realized gains on investment securities | -6 | -2 |
Income tax effect: | ||
Net realized gains on investment securities | 2 | 1 |
Reclassification adjustments included in net income, net of tax | -4 | -1 |
Other comprehensive income, net of tax | 0 | 5 |
Comprehensive income | 34 | 43 |
Comprehensive income attributable to non-controlling interests | 31 | 0 |
Comprehensive income attributable to Springleaf Finance Corporation | $3 | $43 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings | Springleaf Finance Corporation Shareholder’s Equity | Non-controlling Interests |
In Millions, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2013 | $1,328 | $5 | $422 | $28 | $873 | $1,328 | |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 11 | 11 | 11 | ||||
Investment securities | 5 | 5 | 5 | ||||
Net income | 38 | 38 | 38 | ||||
Ending Balance at Mar. 31, 2014 | 1,382 | 5 | 433 | 33 | 911 | 1,382 | 0 |
Beginning Balance at Dec. 31, 2014 | 1,881 | 5 | 740 | 3 | 1,321 | 2,069 | -188 |
Common shares issued and outstanding | |||||||
Distributions declared to joint venture partners | -18 | -18 | |||||
Net income | 34 | 3 | 3 | 31 | |||
Ending Balance at Mar. 31, 2015 | $1,897 | $5 | $740 | $3 | $1,324 | $2,072 | ($175) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net income | $34 | $38 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 86 | 107 |
Depreciation and amortization | 17 | 27 |
Deferred income tax benefit | -14 | -83 |
Net gain on sales of real estate loans and related trust assets | 0 | -55 |
Net charge-offs on finance receivables held for sale | 1 | |
Net loss on repurchases and repayments of debt | 0 | 7 |
Other | -8 | -1 |
Cash flows due to changes in: | ||
Other assets and other liabilities | 72 | 58 |
Insurance claims and policyholder liabilities | -2 | 0 |
Taxes receivable and payable | 18 | 106 |
Accrued interest and finance charges | 7 | 1 |
Restricted cash and cash equivalents not reinvested | 0 | -3 |
Net cash provided by operating activities | 211 | 202 |
Cash flows from investing activities | ||
Finance receivables originated or purchased, net of deferred origination costs | -624 | -498 |
Principal collections on finance receivables | 624 | 629 |
Cash advances on intercompany notes receivables | -28 | 0 |
Principal collections on intercompany notes receivables | 16 | 0 |
Sales and principal collections on finance receivables held for sale originated as held for investment | 52 | 816 |
Available-for-sale investment securities purchased | -95 | -90 |
Trading investment securities purchased | -945 | -9 |
Available-for-sale investment securities called, sold, and matured | 56 | 55 |
Trading investment securities called, sold, and matured | 1,193 | 1 |
Change in restricted cash and cash equivalents | -120 | 0 |
Proceeds from sale of real estate owned | 5 | 22 |
Other, net | 10 | -3 |
Net cash provided by investing activities | 144 | 923 |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 1,523 | 575 |
Repayment of long-term debt | -315 | -1,367 |
Distributions to joint venture partners | -18 | |
Capital contributions from parent | 0 | 11 |
Net cash provided by (used for) financing activities | 1,190 | -781 |
Net change in cash and cash equivalents | 1,545 | 344 |
Cash and cash equivalents at beginning of period | 749 | 375 |
Cash and cash equivalents at end of period | 2,294 | 719 |
Supplemental non-cash activities | ||
Transfer of finance receivables to real estate owned | 2 | 17 |
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 835 |
Unsettled investment security purchases and sales | $19 | $0 |
Business_and_Basis_of_Presenta
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | Business and Basis of Presentation |
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”). | |
At March 31, 2015, Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 75% of the common stock of Springleaf Holdings, Inc.(“SHI”). 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”). As a result of SHI’s offering of its common stock, which closed on May 4, 2015, the Initial Stockholder owned approximately 57.7% of SHI’s common stock as of such date, and the economic interests of Fortress and AIG were approximately 54.6% and 3.1%, respectively. If the option granted to the underwriters to purchase additional shares is exercised in full at a later date, the Initial Stockholder will own approximately 54.6% of SHI’s common stock, and the economic interests of Fortress and AIG will be approximately 54.6% and 0%, respectively. | |
SFC is a financial services holding company with subsidiaries engaged in the consumer finance and credit insurance businesses. | |
BASIS OF PRESENTATION | |
We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by 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 condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain prior period items in our condensed consolidated cash flow statement. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting. | |
Prior Period Revisions | |
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 prior period amounts have been corrected in Notes 4 and 5 in this report. |
Significant_Transactions
Significant Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions |
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. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED | |
Troubled Debt Restructurings | |
In January 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”), 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 amendments in this ASU became effective prospectively for the Company for fiscal years, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this ASU did not have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | |
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. In April 2015, the FASB voted to propose a deferral of the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Many of our revenue sources are not within the scope of this new standard, and we are evaluating whether the adoption of this ASU for those revenue sources that are in scope will have a material effect on our consolidated statements of financial condition, results of operations, or cash flows. | |
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. | |
Debt Issuance Costs | |
In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest, which simplifies the presentation of debt issuance costs. Under this standard, debt issuance costs related to a note shall be reported in the balance sheet as a direct reduction from the face amount of that note. The ASU also clarifies that discount, premium or debt issuance costs shall not be classified as a deferred charged or deferred credit. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. We are currently evaluating the potential impact of adopting this ASU on our consolidated statements of financial condition, results of operations, or cash flows. | |
We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our condensed consolidated financial statements or disclosures. |
Finance_Receivables
Finance Receivables | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Finance Receivables | Finance Receivables | ||||||||||||||||||||
Our finance receivable types include personal loans, the SpringCastle Portfolio, real estate loans, and retail sales finance as defined below: | |||||||||||||||||||||
• | Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, generally have maximum original terms of four years, and are usually fixed-rate, fixed-term loans. At March 31, 2015, $2.0 billion of personal loans, or 52%, were secured by collateral consisting of titled personal property (such as automobiles) and $1.9 billion, or 48%, were secured by consumer household goods or other items of personal property or were unsecured. | ||||||||||||||||||||
• | SpringCastle Portfolio — are loans acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest (the “SpringCastle Portfolio”). 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 March 31, 2015, $221 million of real estate loans, or 37%, were secured by first mortgages and $377 million, or 63%, 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. Since we ceased real estate lending in January 2012, our real estate loans are in a liquidating status. | ||||||||||||||||||||
• | Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months. Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is also in a liquidating status. | ||||||||||||||||||||
Components of net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Gross receivables* | $ | 4,558 | $ | 1,833 | $ | 594 | $ | 43 | $ | 7,028 | |||||||||||
Unearned finance charges and points and fees | (773 | ) | — | (1 | ) | (4 | ) | (778 | ) | ||||||||||||
Accrued finance charges | 54 | 35 | 5 | — | 94 | ||||||||||||||||
Deferred origination costs | 43 | — | — | — | 43 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Gross receivables* | $ | 4,462 | $ | 1,941 | $ | 621 | $ | 52 | $ | 7,076 | |||||||||||
Unearned finance charges and points and fees | (764 | ) | — | (1 | ) | (5 | ) | (770 | ) | ||||||||||||
Accrued finance charges | 58 | 38 | 5 | 1 | 102 | ||||||||||||||||
Deferred origination costs | 44 | — | — | — | 44 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“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 (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — 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 $2.8 billion at March 31, 2015 and $1.9 billion at December 31, 2014 and SpringCastle Portfolio loans with a carrying value of $1.9 billion at March 31, 2015 and $2.0 billion at December 31, 2014 associated with securitizations that remain on our balance sheet. The carrying value of consolidated long-term debt associated with securitizations totaled $4.9 billion at March 31, 2015 and $3.6 billion at December 31, 2014. | |||||||||||||||||||||
Unused lines of credit extended to customers by the Company were as follows: | |||||||||||||||||||||
(dollars in millions) | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Personal loans | $ | 1 | $ | 1 | |||||||||||||||||
SpringCastle Portfolio | 361 | 354 | |||||||||||||||||||
Real estate loans | 31 | 31 | |||||||||||||||||||
Total | $ | 393 | $ | 386 | |||||||||||||||||
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. | |||||||||||||||||||||
CREDIT QUALITY INDICATORS | |||||||||||||||||||||
We consider the delinquency status and nonperforming status of the finance receivable as our credit quality indicators. | |||||||||||||||||||||
We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at March 31, 2015 and at December 31, 2014 were immaterial. Our personal loans, SpringCastle Portfolio, and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. | |||||||||||||||||||||
Delinquent Finance Receivables | |||||||||||||||||||||
We consider the delinquency status of the finance receivable as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. We consider finance receivables 60 days or more past due as delinquent and consider the likelihood of collection to decrease at such time. | |||||||||||||||||||||
The following is a summary of net finance receivables by type and by days delinquent: | |||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 30 | $ | 25 | $ | 9 | $ | — | $ | 64 | |||||||||||
90-119 days past due | 24 | 16 | 5 | — | 45 | ||||||||||||||||
120-149 days past due | 24 | 13 | 4 | — | 41 | ||||||||||||||||
150-179 days past due | 23 | 12 | 4 | — | 39 | ||||||||||||||||
180 days or more past due | 2 | 3 | 13 | — | 18 | ||||||||||||||||
Total delinquent finance receivables | 103 | 69 | 35 | — | 207 | ||||||||||||||||
Current | 3,729 | 1,756 | 548 | 38 | 6,071 | ||||||||||||||||
30-59 days past due | 50 | 43 | 15 | 1 | 109 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 36 | $ | 31 | $ | 12 | $ | 1 | $ | 80 | |||||||||||
90-119 days past due | 30 | 19 | 9 | — | 58 | ||||||||||||||||
120-149 days past due | 24 | 16 | 5 | 1 | 46 | ||||||||||||||||
150-179 days past due | 21 | 14 | 4 | — | 39 | ||||||||||||||||
180 days or more past due | 2 | 2 | 12 | — | 16 | ||||||||||||||||
Total delinquent finance receivables | 113 | 82 | 42 | 2 | 239 | ||||||||||||||||
Current | 3,632 | 1,839 | 565 | 45 | 6,081 | ||||||||||||||||
30-59 days past due | 55 | 58 | 18 | 1 | 132 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
Nonperforming Finance Receivables | |||||||||||||||||||||
We also monitor finance receivable performance trends to evaluate the potential risk of future credit losses. At 90 days or more past due, we consider our finance receivables to be nonperforming. Once the finance receivables are considered as nonperforming, we consider them to be at increased risk for credit loss. | |||||||||||||||||||||
Our performing and nonperforming net finance receivables by type were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Performing | $ | 3,809 | $ | 1,824 | $ | 572 | $ | 39 | $ | 6,244 | |||||||||||
Nonperforming | 73 | 44 | 26 | — | 143 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Performing | $ | 3,723 | $ | 1,928 | $ | 595 | $ | 47 | $ | 6,293 | |||||||||||
Nonperforming | 77 | 51 | 30 | 1 | 159 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES | |||||||||||||||||||||
As a result of the significance of the ownership interest acquired by FCFI Acquisition LLC, an affiliate of Fortress (the “Fortress Acquisition”), we revalued our assets and liabilities based on their fair value at the date of the Fortress Acquisition, November 30, 2010, in accordance with business combination standards (“push-down accounting”) and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value. | |||||||||||||||||||||
In connection with SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC on July 31, 2014 (the “SAC Capital Contribution”), 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. | |||||||||||||||||||||
At March 31, 2015 and December 31, 2014, finance receivables held for sale totaled $199 million and $205 million, respectively. See Note 6 for further information on our finance receivables held for sale, which consist of our non-core real estate loans. 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 our purchased credit impaired finance receivables and TDR finance receivables by finance receivables held for investment and finance receivables held for sale in the tables below. The financial data related to finance receivables held for sale in the following tables were immaterial during the first quarter of 2014 since the loans were transferred and sold within the same month. | |||||||||||||||||||||
Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in millions) | SCP Loans | FA Loans | Total | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 309 | $ | 90 | $ | 399 | |||||||||||||||
Outstanding balance (b) | 587 | 147 | 734 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 5 | 5 | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 340 | $ | 93 | $ | 433 | |||||||||||||||
Outstanding balance (b) | 628 | 151 | 779 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 5 | 5 | ||||||||||||||||||
(a) | The carrying amount of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $66 million and $68 million, respectively, of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
(b) | The outstanding balance of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $97 million and $99 million, respectively, of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
The allowance for purchased credit impaired finance receivable losses at March 31, 2015 and December 31, 2014, 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 millions) | SCP Loans | FA Loans | Total | ||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Balance at beginning of period | $ | 541 | $ | 19 | $ | 560 | |||||||||||||||
Accretion (a) | (24 | ) | (3 | ) | (27 | ) | |||||||||||||||
Disposals of finance receivables (b) | (12 | ) | — | (12 | ) | ||||||||||||||||
Balance at end of period | $ | 505 | $ | 16 | $ | 521 | |||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 767 | $ | 767 | |||||||||||||||
Accretion | — | (29 | ) | (29 | ) | ||||||||||||||||
Transfers due to finance receivables sold | — | (57 | ) | (57 | ) | ||||||||||||||||
Disposals of finance receivables (b) | — | (5 | ) | (5 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 676 | $ | 676 | |||||||||||||||
(a) | Accretion on our purchased credit impaired FA Loans for the three months ended March 31, 2015 includes $2 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. | ||||||||||||||||||||
(b) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period. | ||||||||||||||||||||
TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES | |||||||||||||||||||||
Information regarding TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 27 | $ | 12 | $ | 194 | $ | 233 | |||||||||||||
TDR net finance receivables (c) | 26 | 11 | 195 | 232 | |||||||||||||||||
Allowance for TDR finance receivable losses | 3 | 3 | 31 | 37 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 22 | $ | 11 | $ | 196 | $ | 229 | |||||||||||||
TDR net finance receivables (c) | 22 | 10 | 196 | 228 | |||||||||||||||||
Allowance for TDR finance receivable losses | 1 | 3 | 32 | 36 | |||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
(b) | TDR real estate loan gross finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, of TDR finance receivables held for sale. | ||||||||||||||||||||
(c) | TDR real estate loan net finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, 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 millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
TDR average net receivables (a) | $ | 25 | $ | 11 | $ | 195 | $ | 231 | |||||||||||||
TDR finance charges recognized (b) | 1 | — | 3 | 4 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
TDR average net receivables | $ | 13 | $ | — | $ | 1,413 | $ | 1,426 | |||||||||||||
TDR finance charges recognized | — | — | 18 | 18 | |||||||||||||||||
(a) | TDR real estate loan average net receivables for the three months ended March 31, 2015 include $90 million of TDR average net receivables held for sale. | ||||||||||||||||||||
(b) | TDR real estate loan finance charges recognized for the three months ended March 31, 2015 include $1 million of interest income on TDR finance receivables held for sale. | ||||||||||||||||||||
Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Pre-modification TDR net finance receivables (a) | $ | 9 | $ | 2 | $ | 4 | $ | 15 | |||||||||||||
Post-modification TDR net finance receivables (a) | $ | 8 | $ | 2 | $ | 4 | $ | 14 | |||||||||||||
Number of TDR accounts (b) | 1,854 | 195 | 78 | 2,127 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 3 | $ | — | $ | 102 | $ | 105 | |||||||||||||
Post-modification TDR net finance receivables | $ | 2 | $ | — | $ | 93 | $ | 95 | |||||||||||||
Number of TDR accounts | 662 | — | 988 | 1,650 | |||||||||||||||||
(a) | TDR real estate loan net finance receivables for the three months ended March 31, 2015 include less than $1 million of pre-modification and post-modification TDR net finance receivables held for sale. | ||||||||||||||||||||
(b) | Number of new TDR real estate loan accounts for the three months ended March 31, 2015 includes 9 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 millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
TDR net finance receivables (a) (b) (c) | $ | — | $ | — | $ | 1 | $ | 1 | |||||||||||||
Number of TDR accounts (b) | 57 | 10 | 18 | 85 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
TDR net finance receivables (a) (c) | $ | — | $ | — | $ | 16 | $ | 16 | |||||||||||||
Number of TDR accounts | 15 | — | 229 | 244 | |||||||||||||||||
(a) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | ||||||||||||||||||||
(b) | Includes 9 TDR real estate loan accounts totaling less than $1 million that were held for sale. | ||||||||||||||||||||
(c) | TDR personal loans for the three months ended March 31, 2015 and 2014 and TDR SpringCastle Portfolio for the three months ended March 31, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the table above. |
Allowance_for_Finance_Receivab
Allowance for Finance Receivable Losses | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses | ||||||||||||||||||||
Changes in the allowance for finance receivable losses by finance receivable type were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Consolidated Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Balance at beginning of period | $ | 130 | $ | 3 | $ | 40 | $ | 1 | $ | 174 | |||||||||||
Provision for finance receivable losses | 55 | 27 | 4 | — | 86 | ||||||||||||||||
Charge-offs | (61 | ) | (30 | ) | (6 | ) | (1 | ) | (98 | ) | |||||||||||
Recoveries | 8 | 3 | 1 | 1 | 13 | ||||||||||||||||
Balance at end of period | $ | 132 | $ | 3 | $ | 39 | $ | 1 | $ | 175 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94 | $ | — | $ | 236 | $ | 2 | $ | 332 | |||||||||||
Provision for finance receivable losses | 47 | — | 58 | 2 | 107 | ||||||||||||||||
Charge-offs | (44 | ) | — | (28 | ) | (1 | ) | (73 | ) | ||||||||||||
Recoveries (a) | 4 | — | 4 | — | 8 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (10 | ) | — | (10 | ) | ||||||||||||||
Balance at end of period | $ | 101 | $ | — | $ | 260 | $ | 3 | $ | 364 | |||||||||||
(a) | Recoveries during the three months ended March 31, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. | ||||||||||||||||||||
(b) | During the first quarter of 2014, we reduced the carrying value of certain real estate loans to $825 million as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
Included in the allowance for finance receivable losses are allowances associated with securitizations that totaled $76 million at March 31, 2015 and $72 million at December 31, 2014. See Note 11 for further discussion regarding our securitization transactions. | |||||||||||||||||||||
The carrying value charged-off for purchased credit impaired loans was as follows: | |||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 7 | $ | — | |||||||||||||||||
FA Loans gross charge-offs* | — | 6 | |||||||||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | |||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | — | $ | 3 | $ | 1 | $ | 133 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 5 | — | 5 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | 3 | 3 | 31 | — | 37 | ||||||||||||||||
Total | $ | 132 | $ | 3 | $ | 39 | $ | 1 | $ | 175 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,856 | $ | 1,548 | $ | 463 | $ | 39 | $ | 5,906 | |||||||||||
Purchased credit impaired finance receivables | — | 309 | 30 | — | 339 | ||||||||||||||||
TDR finance receivables | 26 | 11 | 105 | — | 142 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | — | $ | 3 | $ | 1 | $ | 133 | |||||||||||
Purchased credit impaired finance receivables | — | — | 5 | — | 5 | ||||||||||||||||
TDR finance receivables | 1 | 3 | 32 | — | 36 | ||||||||||||||||
Total | $ | 130 | $ | 3 | $ | 40 | $ | 1 | $ | 174 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,778 | $ | 1,629 | $ | 490 | $ | 48 | $ | 5,945 | |||||||||||
Purchased credit impaired finance receivables | — | 340 | 30 | — | 370 | ||||||||||||||||
TDR finance receivables | 22 | 10 | 105 | — | 137 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
Finance_Receivables_Held_for_S
Finance Receivables Held for Sale | 3 Months Ended |
Mar. 31, 2015 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale |
We report finance receivables held for sale of $199 million at March 31, 2015 and $205 million at December 31, 2014, which are carried at the 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 interim consolidated statements of operations, which totaled $4 million during each of the three months ended March 31, 2015 and 2014. | |
We did not have any transfer activity to or from finance receivables held for sale during the first quarter of 2015. | |
On March 1, 2014, we transferred $825 million of real estate loans, (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. On March 31, 2014, we sold the finance receivables held for sale totaling $815 million and recorded a net gain of $55 million. |
Investment_Securities
Investment Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investment Securities | Investment Securities | ||||||||||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES | |||||||||||||||||||||||||
Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: | |||||||||||||||||||||||||
(dollars in millions) | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Amortized | Gains | Losses | Value | ||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 30 | $ | 2 | $ | — | $ | 32 | |||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 100 | 2 | (1 | ) | 101 | ||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1 | — | — | 1 | |||||||||||||||||||||
Corporate debt | 291 | 13 | — | 304 | |||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 115 | 1 | — | 116 | |||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 42 | — | — | 42 | |||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 58 | — | — | 58 | |||||||||||||||||||||
Total | 637 | 18 | (1 | ) | 654 | ||||||||||||||||||||
Preferred stock | 8 | — | — | 8 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | 1 | |||||||||||||||||||||
Total (b) | $ | 646 | $ | 18 | $ | (1 | ) | $ | 663 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 61 | $ | 3 | $ | — | $ | 64 | |||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 99 | 3 | — | 102 | |||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1 | — | — | 1 | |||||||||||||||||||||
Corporate debt | 256 | 12 | (1 | ) | 267 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 71 | 2 | — | 73 | |||||||||||||||||||||
CMBS | 25 | — | (1 | ) | 24 | ||||||||||||||||||||
CDO/ABS | 61 | — | — | 61 | |||||||||||||||||||||
Total | 574 | 20 | (2 | ) | 592 | ||||||||||||||||||||
Preferred stock | 7 | — | — | 7 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | 1 | |||||||||||||||||||||
Total (b) | $ | 582 | $ | 20 | $ | (2 | ) | $ | 600 | ||||||||||||||||
(a) | Includes certificates of deposit totaling $1 million pledged as collateral, primarily to support bank lines of credit at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(b) | Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at March 31, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost. | ||||||||||||||||||||||||
As of March 31, 2015 and December 31, 2014, we had no available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss. | |||||||||||||||||||||||||
Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses * | Value | Losses * | Value | Losses | ||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | $ | 19 | $ | (1 | ) | $ | 6 | $ | — | $ | 25 | $ | (1 | ) | |||||||||||
Corporate debt | 30 | — | 5 | — | 35 | — | |||||||||||||||||||
RMBS | 43 | — | — | — | 43 | — | |||||||||||||||||||
CMBS | 17 | — | 5 | — | 22 | — | |||||||||||||||||||
CDO/ABS | 21 | — | — | — | 21 | — | |||||||||||||||||||
Total | 130 | (1 | ) | 16 | — | 146 | (1 | ) | |||||||||||||||||
Preferred stock | 6 | — | — | — | 6 | — | |||||||||||||||||||
Total | $ | 136 | $ | (1 | ) | $ | 16 | $ | — | $ | 152 | $ | (1 | ) | |||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||
Obligations of states, municipalities, and political subdivisions | 27 | — | 1 | — | 28 | — | |||||||||||||||||||
Corporate debt | 36 | (1 | ) | 6 | — | 42 | (1 | ) | |||||||||||||||||
RMBS | 9 | — | — | — | 9 | — | |||||||||||||||||||
CMBS | 16 | (1 | ) | 2 | — | 18 | (1 | ) | |||||||||||||||||
CDO/ABS | 46 | — | — | — | 46 | — | |||||||||||||||||||
Total | 134 | (2 | ) | 10 | — | 144 | (2 | ) | |||||||||||||||||
Preferred stock | 6 | — | — | — | 6 | — | |||||||||||||||||||
Total | $ | 140 | $ | (2 | ) | $ | 10 | $ | — | $ | 150 | $ | (2 | ) | |||||||||||
* | Unrealized losses on certain available-for-sale securities for the three months ended March 31, 2015 and 2014 were less than $1 million and, therefore, are not quantified in the table above. | ||||||||||||||||||||||||
We continue to monitor unrealized loss positions for potential impairments. During the three months ended March 31, 2015 and 2014, we did not recognize any other-than-temporary impairment credit loss write-downs to investment revenues. | |||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, there were no additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities. | |||||||||||||||||||||||||
The 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 millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Fair value | $ | 74 | $ | 51 | |||||||||||||||||||||
Realized gains | $ | 7 | $ | 2 | |||||||||||||||||||||
Realized losses | (1 | ) | — | ||||||||||||||||||||||
Net realized gains | $ | 6 | $ | 2 | |||||||||||||||||||||
Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2015 were as follows: | |||||||||||||||||||||||||
(dollars in millions) | Fair Value | Amortized Cost | |||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 39 | $ | 39 | |||||||||||||||||||||
Due after 1 year through 5 years | 195 | 191 | |||||||||||||||||||||||
Due after 5 years through 10 years | 112 | 104 | |||||||||||||||||||||||
Due after 10 years | 92 | 88 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 216 | 215 | |||||||||||||||||||||||
Total | $ | 654 | $ | 637 | |||||||||||||||||||||
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 $12 million at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||
TRADING SECURITIES | |||||||||||||||||||||||||
The fair value of trading securities by type was as follows: | |||||||||||||||||||||||||
(dollars in millions) | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 1,079 | $ | 302 | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 7 | 14 | |||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 238 | |||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 20 | |||||||||||||||||||||||
Corporate debt | 529 | 1,056 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 15 | 35 | |||||||||||||||||||||||
CMBS | 120 | 149 | |||||||||||||||||||||||
CDO/ABS | 322 | 507 | |||||||||||||||||||||||
Total | $ | 2,072 | $ | 2,321 | |||||||||||||||||||||
The net unrealized and realized gains on our trading securities, which we report in investment revenues, were as follows: | |||||||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Net unrealized gains on trading securities held at period end | $ | 3 | $ | — | |||||||||||||||||||||
Net realized gains on trading securities sold or redeemed | — | — | |||||||||||||||||||||||
Total | $ | 3 | $ | — | |||||||||||||||||||||
Transactions_with_Affiliates_o
Transactions with Affiliates of Fortress or AIG (Affiliates of Fortress or AIG) | 3 Months Ended |
Mar. 31, 2015 | |
Affiliates of Fortress or AIG | |
Transactions with Affiliates of Fortress or AIG | |
Transactions with Affiliates of Fortress or AIG | Transactions with Affiliates of Fortress or AIG |
SUBSERVICING AGREEMENT | |
Nationstar Mortgage LLC (“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 subservicing fees of less than $1 million for the three months ended March 31, 2015 and $2 million for the three months ended March 31, 2014. | |
As a result of the sales of our real estate loans during 2014 (some of which were serviced by Nationstar) and the sale of certain mortgage servicing rights in 2014 our exposure to these affiliated services is reduced. | |
INVESTMENT MANAGEMENT AGREEMENT | |
Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services were under $1 million for the three months ended March 31, 2015 and 2014. | |
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 $44 million at March 31, 2015 and December 31, 2014. | |
INSURANCE COVERAGE | |
We hold various insurance policies with AIG subsidiaries covering liabilities of directors and officers, errors and omissions, lawyers, employment practices, fiduciary, and fidelity bond. Premium expenses on these policies were under $1 million for the three months ended March 31, 2015 and 2014. | |
JOINT VENTURE | |
Certain subsidiaries of New Residential Investment Corp. (“NRZ”), own a 30% equity interest in the joint venture that acquired the SpringCastle Portfolio, in which we own a 47% equity interest. NRZ is managed by an affiliate of Fortress. | |
THIRD STREET DISPOSITION | |
On March 6, 2014, we entered into an agreement to sell, subject to certain closing conditions, all of our interest in the mortgage-backed retained certificates related to a securitization transaction completed in 2009 to Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPFS”). Concurrently, NRZ and MLPFS entered into an agreement pursuant to which NRZ agreed to purchase approximately 75% of these retained certificates. NRZ is managed by an affiliate of Fortress. | |
MSR SALE | |
SFC and MorEquity, Inc. (“MorEquity”), a wholly owned subsidiary, entered into an agreement, dated and effective August 1, 2014, to sell the servicing rights of the mortgage loans primarily underlying the mortgage securitizations completed during 2011 through 2013 to Nationstar for a purchase price of $39 million (the “MSR Sale”). From the closing of the MSR Sale on August 29, 2014, until the servicing transfer on September 30, 2014, we continued to service certain loans on behalf of Nationstar under an interim servicing agreement. At March 31, 2015 and December 31, 2014, the receivable from Nationstar for our interim servicing fees totaled $1 million. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. |
Related_Party_Transactions
Related Party Transactions (Related Parties other than Affiliates of Fortress or AIG) | 3 Months Ended |
Mar. 31, 2015 | |
Related Parties other than Affiliates of Fortress or AIG | |
Related Party Transactions | |
Related Party Transactions | 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 $263 million at March 31, 2015 and $251 million at December 31, 2014. Interest receivable on this note totaled $1 million at March 31, 2015 and was immaterial at December 31, 2014. The interest rate for the unpaid principal balance is the prime rate. Interest revenue on the note receivable from SFI totaled $2 million and $1 million, respectively, for the three months ended March 31, 2015 and 2014. | |
Receivables from Parent and Affiliates | |
At March 31, 2015 and December 31, 2014, receivables from our parent and affiliates totaled $12 million. 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 million at March 31, 2015 and December 31, 2014. 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 March 31, 2015 and December 31, 2014 are presented net of a payable to SFI of $28 million and $43 million, respectively. Excluding this payable, receivables from our parent and affiliates totaled $40 million at March 31, 2015 and $54 million at December 31, 2014. | |
Payables to Parent and Affiliates | |
At March 31, 2015 and December 31, 2014, payables to parent and affiliates totaled $47 million and $48 million, respectively. SFC’s payable to parent totaled $23 million and $17 million at March 31, 2015 and December 31, 2014, respectively, primarily due to payments made by SFI for the benefit of SFC. At March 31, 2015 and December 31, 2014, Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $21 million and $19 million, respectively, to Springleaf General Services Corporation (“SGSC”), a subsidiary of SFI, related to the intercompany agreements further discussed below in this Note. At March 31, 2015 and December 31, 2014, SFMC, also had a payable of $1 million to Springleaf Consumer Loan, Inc. for internet lending referral fees charged to the branch network. | |
SFI provides funding for SAC’s operations through an intercompany demand note, 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 March 31, 2015 and December 31, 2014, the note payable to SFI totaled $1 million and was reported in other liabilities. Interest expense on the note payable to SFI for the three months ended March 31, 2015 was immaterial. | |
SFI provides servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC. At March 31, 2015 and December 31, 2014, SpringCastle Holdings LLC’s payable to SFI totaled $5 million and $10 million, respectively. | |
CAPITAL CONTRIBUTIONS | |
During January of 2014, SFC received a capital contribution from SFI of $11 million to satisfy an interest payment required by SFC’s debenture due in January of 2014. | |
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 $21 million at March 31, 2015 and $19 million at December 31, 2014. | |
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 the three months ended March 31, 2015 and 2014, SFMC recorded $54 million and $45 million, respectively, of service fee expenses, which are included in other operating expenses. | |
License Agreement | |
The license 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 the three months ended March 31, 2015 and 2014, SFMC recorded $1 million of license fees, which are included as a contra expense to other operating expenses. | |
Building Lease | |
The building lease agreement provides that SFMC will lease six of its buildings to SGSC for an annual rental amount of $4 million, plus additional rental amounts to cover other sums and charges, including real estate taxes, water charges, and sewer rents. During the three months ended March 31, 2015 and 2014, SFMC recorded $1 million of rent charged to SGSC, which are included as a contra expense to other operating expenses. |
Longterm_Debt
Long-term Debt | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Long-term Debt | Long-term Debt | ||||||||||||||||||||
Principal maturities of long-term debt (excluding projected securitization repayments by period) by type of debt at March 31, 2015 were as follows: | |||||||||||||||||||||
(dollars in millions) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes | Debt | ||||||||||||||||||||
Interest rates (a) | 6.50%-7.50% | 5.25%-8.25% | 2.41%-6.82% | 6 | % | ||||||||||||||||
Second quarter 2015 | $ | 7 | $ | — | $ | — | $ | — | $ | 7 | |||||||||||
Third quarter 2015 | 24 | — | — | — | 24 | ||||||||||||||||
Fourth quarter 2015 | — | 750 | — | — | 750 | ||||||||||||||||
First quarter 2016 | — | — | — | — | — | ||||||||||||||||
Remainder of 2016 | — | 375 | — | — | 375 | ||||||||||||||||
2017 | — | 1,902 | — | — | 1,902 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019 | — | 700 | — | — | 700 | ||||||||||||||||
2020-2067 | — | 1,250 | — | 350 | 1,600 | ||||||||||||||||
Securitizations (b) | — | — | 4,873 | — | 4,873 | ||||||||||||||||
Total principal maturities | $ | 31 | $ | 4,977 | $ | 4,873 | $ | 350 | $ | 10,231 | |||||||||||
Total carrying amount (c) | $ | 30 | $ | 4,555 | $ | 4,878 | $ | 172 | $ | 9,635 | |||||||||||
(a) | The interest rates shown are the range of contractual rates in effect at March 31, 2015. | ||||||||||||||||||||
(b) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(c) | 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. As of March 31, 2015, approximately $700 million aggregate principal amount of senior notes were outstanding. | |||||||||||||||||||||
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 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: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60-year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60-year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, 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 March 31, 2015, approximately $5.0 billion aggregate principal amount of senior notes, including $3.1 billion aggregate principal amount of senior notes under the 1999 Indenture, and $350 million aggregate principal amount of a junior subordinated debenture were outstanding. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities | |||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||
As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for securitization transactions. Since these transactions involve securitization trusts required to be consolidated, the securitized assets and related liabilities are included in our condensed consolidated financial statements and are accounted for as secured borrowings. As a result of the 2014 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. The holders of the asset-backed securities have no recourse to the Company if the cash flows from the underlying qualified securitized assets are not sufficient to pay all principal and interest on the asset-backed securities. After these senior obligations are extinguished, substantially all cash inflows will be directed to the subordinated notes until fully repaid and, thereafter, to the residual interest that we own in each trust. We retain interests in these securitization transactions, including 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 millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 2,838 | $ | 1,853 | |||||
SpringCastle Portfolio | 1,868 | 1,979 | |||||||
Allowance for finance receivable losses | 76 | 72 | |||||||
Restricted cash and cash equivalents | 330 | 210 | |||||||
Liabilities | |||||||||
Long-term debt | $ | 4,878 | $ | 3,644 | |||||
Renewal of Sumner Brook 2013-VFN1 Securitization | |||||||||
On January 16, 2015, we amended the note purchase agreement with Sumner Brook Funding Trust 2013-VFN1 (the “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 3.58% weighted average yield. We sold the asset-backed notes for $1.2 billion, after the price discount but before expenses and a $12 million interest reserve requirement. | |||||||||
Sale of SpringCastle 2014-A Notes | |||||||||
On March 9, 2015, SAC agreed to sell $232 million and $131 million principal amount of the previously retained Class C and Class D SpringCastle 2014-A Notes, respectively, to an unaffiliated third party at a premium to the principal balance. The sale was completed on March 16, 2015. | |||||||||
Amendment to Whitford Brook 2014-VFN1 Securitization | |||||||||
On March 24, 2015, we amended the Sale and Servicing Agreement relating to the Whitford Brook Funding Trust 2014-VFN1 (the “Whitford Brook 2014-A Trust”) to no longer require a $100 million minimum balance drawn under the variable funding notes, which are backed by personal loans acquired from subsidiaries of SFC. On March 25, 2015, we paid down the balance of $100 million. | |||||||||
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 for the three months ended March 31, 2015 totaled $38 million, compared to $43 million for the three months ended March 31, 2014. | |||||||||
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. During 2014, we established a reserve for sales recourse obligations of $6 million related to these sales. At March 31, 2015, this reserve totaled $6 million. We had no repurchase activity associated with these sales as of March 31, 2015. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | ||||||||||||||||
Changes in accumulated other comprehensive income were as follows: | |||||||||||||||||
(dollars in millions) | Unrealized | Retirement | Foreign | Total | |||||||||||||
Gains (Losses) | Plan | Currency | Accumulated | ||||||||||||||
Investment | Liabilities | Translation | Other | ||||||||||||||
Securities | Adjustments | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
(Loss) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Balance at beginning of period | $ | 12 | $ | (13 | ) | $ | 4 | $ | 3 | ||||||||
Other comprehensive income before reclassifications | 3 | — | 1 | 4 | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (4 | ) | — | — | (4 | ) | |||||||||||
Balance at end of period | $ | 11 | $ | (13 | ) | $ | 5 | $ | 3 | ||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Balance at beginning of period | $ | 4 | $ | 20 | $ | 4 | $ | 28 | |||||||||
Other comprehensive income before reclassifications | 6 | — | — | 6 | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1 | ) | — | — | (1 | ) | |||||||||||
Balance at end of period | $ | 9 | $ | 20 | $ | 4 | $ | 33 | |||||||||
Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our condensed consolidated statements of operations were as follows: | |||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Unrealized gains on investment securities: | |||||||||||||||||
Reclassification from accumulated other comprehensive income | $ | 6 | $ | 2 | |||||||||||||
to investment revenues, before taxes | |||||||||||||||||
Income tax effect | (2 | ) | (1 | ) | |||||||||||||
Reclassification from accumulated other comprehensive income | $ | 4 | $ | 1 | |||||||||||||
to investment revenues, net of taxes | |||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
At March 31, 2015, we had a net deferred tax liability of $141 million, compared to $156 million at December 31, 2014. The decrease in the net deferred tax liability was primarily due to purchase accounting for debt writedown. The impact to our uncertain tax positions was immaterial. | |
The effective tax rate for the three months ended March 31, 2015 was 19.3% compared to 38.7% for the same period in 2014. The effective tax rate for the three months ended March 31, 2015 differed from the federal statutory rate primarily due to the effect of the non-controlling interest in our joint venture. The effective tax rate for the three months ended March 31, 2014 differed from the federal statutory rate primarily due to the effect of our state income taxes. | |
We have been contacted by the Internal Revenue Service for the examination of our U.S. Federal tax return for the year 2013. Management believes it has adequately provided for taxes for such year. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
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 condensed consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. | |
For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. | |
For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our condensed consolidated financial statements as a whole. | |
SALES RECOURSE OBLIGATIONS | |
During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales. At March 31, 2015, our reserve for sales recourse obligations totaled $24 million, of which $23 million related to the real estate loan sales in 2014. During the three months ended March 31, 2015 and 2014, we had no repurchase activity or recourse losses associated with the real estate loan sales in 2014 or other prior sales of finance receivables. At March 31, 2015, there were no material recourse requests that management believes will not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. | |
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 $13 million at March 31, 2015 and $14 million at December 31, 2014. |
Benefit_Plans
Benefit Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Benefit Plans | Benefit Plans | ||||||||
The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans: | |||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Pension | |||||||||
Components of net periodic benefit cost: | |||||||||
Interest cost | $ | 4 | $ | 4 | |||||
Expected return on assets | (5 | ) | (4 | ) | |||||
Net periodic benefit cost | $ | (1 | ) | $ | — | ||||
The components of net periodic benefit cost with respect to our post retirement plan were less than $1 million for the three months ended March 31, 2015 and 2014 and, therefore, were not included in the table above. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment Information | Segment Information | ||||||||||||||||||||||||||||
Our segments coincide with how our businesses are managed. At March 31, 2015, 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 began presenting them as one segment, effective December 31, 2014. 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. | |||||||||||||||||||||||||||||
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 27 states, which are our core operating states. Our centralized operations underwrite and process certain loan applications that we receive from our branch operations or through an internet portal. If the applicant is located near an existing branch (“in footprint”), our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch (“out of footprint”), our centralized operations originate the loan. | ||||||||||||||||||||||||||||
• | Acquisitions and Servicing — We service the SpringCastle Portfolio that was acquired by an indirect subsidiary of SHI through a joint venture in which SFC currently owns a 47% equity interest. The SpringCastle Portfolio consists of unsecured loans and loans secured by subordinate residential real estate mortgages (which we service as unsecured loans due to the fact that the liens are subordinated to superior ranking security interests) and includes both closed-end accounts and open-end lines of credit. These loans vary in form and substance from our typical branch serviced loans and are in a liquidating status 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 and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. | ||||||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
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 subsequent to 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 condensed consolidated financial statement amounts. | |||||||||||||||||||||||||||||
(dollars in millions) | Consumer and Insurance | Acquisitions | Real | Other | Eliminations | Push-down | Consolidated | ||||||||||||||||||||||
and | Estate | Accounting | Total | ||||||||||||||||||||||||||
Servicing | Adjustments | ||||||||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Interest income | $ | 254 | $ | 125 | $ | 18 | $ | 2 | $ | — | $ | 3 | $ | 402 | |||||||||||||||
Interest expense | 40 | 23 | 60 | 10 | (5 | ) | 30 | 158 | |||||||||||||||||||||
Provision for finance receivable losses | 55 | 27 | 2 | — | — | 2 | 86 | ||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 159 | 75 | (44 | ) | (8 | ) | 5 | (29 | ) | 158 | |||||||||||||||||||
Other revenues | 51 | 5 | 3 | 2 | (5 | ) | (3 | ) | 53 | ||||||||||||||||||||
Other expenses | 140 | 16 | 7 | 5 | — | 1 | 169 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 70 | 64 | (48 | ) | (11 | ) | — | (33 | ) | 42 | |||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | 31 | — | — | — | — | 31 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 70 | $ | 33 | $ | (48 | ) | $ | (11 | ) | $ | — | $ | (33 | ) | $ | 11 | ||||||||||||
Assets | $ | 5,042 | $ | 1,964 | $ | 3,641 | $ | 1,832 | $ | — | $ | 10 | $ | 12,489 | |||||||||||||||
(dollars in millions) | Consumer and Insurance | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Interest income | $ | 209 | $ | 152 | $ | 5 | $ | 36 | $ | 402 | |||||||||||||||||||
Interest expense | 41 | 110 | 2 | 29 | 182 | ||||||||||||||||||||||||
Provision for finance receivable losses | 45 | 61 | 1 | — | 107 | ||||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 123 | (19 | ) | 2 | 7 | 113 | |||||||||||||||||||||||
Other revenues | 49 | (64 | ) | 2 | 113 | 100 | |||||||||||||||||||||||
Other expenses | 123 | 22 | 5 | 1 | 151 | ||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 49 | $ | (105 | ) | $ | (1 | ) | $ | 119 | $ | 62 | |||||||||||||||||
Assets | $ | 4,173 | $ | 7,259 | $ | 1,009 | $ | (434 | ) | $ | 12,007 | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||||||
The fair value of a financial instrument is the amount that would be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. | |||||||||||||||||||||||||||||
The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | Total | Total | |||||||||||||||||||||||||||
Fair | Carrying | ||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Value | Value | ||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,294 | $ | — | $ | — | $ | 2,294 | $ | 2,294 | |||||||||||||||||||
Investment securities | — | 2,730 | 6 | 2,736 | 2,736 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,883 | 6,883 | 6,212 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 203 | 203 | 199 | ||||||||||||||||||||||||
Note receivable from parent | — | 263 | — | 263 | 263 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 344 | — | — | 344 | 344 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 67 | 67 | 72 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8 | 8 | 8 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 12 | — | 12 | 12 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 27 | — | 27 | 36 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 10,390 | $ | — | $ | 10,390 | $ | 9,635 | |||||||||||||||||||
Payables to parent and affiliates | — | 47 | — | 47 | 47 | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 749 | $ | — | $ | — | $ | 749 | $ | 749 | |||||||||||||||||||
Investment securities | — | 2,913 | 9 | 2,922 | 2,922 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,949 | 6,949 | 6,278 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 209 | 209 | 205 | ||||||||||||||||||||||||
Note receivable from parent | — | 251 | — | 251 | 251 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 218 | — | — | 218 | 218 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 78 | 78 | 85 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8 | 8 | 8 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 12 | — | 12 | 12 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 67 | — | 67 | 79 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 9,182 | $ | — | $ | 9,182 | $ | 8,385 | |||||||||||||||||||
Payables to parent and affiliates | — | 48 | — | 48 | 48 | ||||||||||||||||||||||||
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 millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 1,165 | $ | — | $ | — | $ | 1,165 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 32 | — | 32 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 101 | — | 101 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Corporate debt | — | 300 | 4 | 304 | |||||||||||||||||||||||||
RMBS | — | 116 | — | 116 | |||||||||||||||||||||||||
CMBS | — | 42 | — | 42 | |||||||||||||||||||||||||
CDO/ABS | — | 58 | — | 58 | |||||||||||||||||||||||||
Total | — | 650 | 4 | 654 | |||||||||||||||||||||||||
Preferred stock | — | 8 | — | 8 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1 | 1 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 658 | 5 | 663 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 1,079 | — | 1,079 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 7 | — | 7 | |||||||||||||||||||||||||
Corporate debt | — | 529 | — | 529 | |||||||||||||||||||||||||
RMBS | — | 15 | — | 15 | |||||||||||||||||||||||||
CMBS | — | 120 | — | 120 | |||||||||||||||||||||||||
CDO/ABS | — | 322 | — | 322 | |||||||||||||||||||||||||
Total trading securities | — | 2,072 | — | 2,072 | |||||||||||||||||||||||||
Total investment securities | — | 2,730 | 5 | 2,735 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 322 | — | — | 322 | |||||||||||||||||||||||||
Total | $ | 1,487 | $ | 2,731 | $ | 5 | $ | 4,223 | |||||||||||||||||||||
Fair Value Measurements Using | Total Carried At Fair Value | ||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 236 | $ | — | $ | — | $ | 236 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 165 | — | 165 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 64 | — | 64 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102 | — | 102 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Corporate debt | — | 263 | 4 | 267 | |||||||||||||||||||||||||
RMBS | — | 73 | — | 73 | |||||||||||||||||||||||||
CMBS | — | 21 | 3 | 24 | |||||||||||||||||||||||||
CDO/ABS | — | 61 | — | 61 | |||||||||||||||||||||||||
Total | — | 585 | 7 | 592 | |||||||||||||||||||||||||
Preferred stock | — | 7 | — | 7 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1 | 1 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 592 | 8 | 600 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 302 | — | 302 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 14 | — | 14 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 238 | — | 238 | |||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 20 | — | 20 | |||||||||||||||||||||||||
Corporate debt | — | 1,056 | — | 1,056 | |||||||||||||||||||||||||
RMBS | — | 35 | — | 35 | |||||||||||||||||||||||||
CMBS | — | 149 | — | 149 | |||||||||||||||||||||||||
CDO/ABS | — | 507 | — | 507 | |||||||||||||||||||||||||
Total trading securities | — | 2,321 | — | 2,321 | |||||||||||||||||||||||||
Total investment securities | — | 2,913 | 8 | 2,921 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 207 | — | — | 207 | |||||||||||||||||||||||||
Total | $ | 443 | $ | 3,078 | $ | 8 | $ | 3,529 | |||||||||||||||||||||
(a) | Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method. | ||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $1 million at March 31, 2015 and December 31, 2014 and therefore have been excluded from the table above. | ||||||||||||||||||||||||||||
We had no transfers between Level 1 and Level 2 during the three months ended March 31, 2015. | |||||||||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2015: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 * | period | |||||||||||||||||||||||||||
(dollars in millions) | Balance at | Other | Other | settlements | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||
CMBS | 3 | — | — | — | — | (3 | ) | — | |||||||||||||||||||||
Total | 7 | — | — | — | — | (3 | ) | 4 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | (3 | ) | $ | 5 | ||||||||||||||
* | During the three months ended March 31, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2014: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 (b) | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 | period | |||||||||||||||||||||||||||
(dollars in millions) | Balance at | Other | Other | settlements (a) | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13 | $ | — | $ | — | $ | (4 | ) | $ | — | $ | — | $ | 9 | ||||||||||||||
CDO/ABS | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total | 14 | — | — | (4 | ) | — | — | 10 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total available-for-sale securities | 15 | — | — | (4 | ) | — | — | 11 | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||
CDO/ABS | 7 | — | — | — | — | — | 7 | ||||||||||||||||||||||
Total trading securities | 7 | — | — | — | 1 | — | 8 | ||||||||||||||||||||||
Total | $ | 22 | $ | — | $ | — | $ | (4 | ) | $ | 1 | $ | — | $ | 19 | ||||||||||||||
(a) | “Purchases, sales, issues, and settlements” column only consist of settlements for the three months ended March 31, 2014, as the purchases were immaterial. | ||||||||||||||||||||||||||||
(b) | During the three months ended March 31, 2014, we transferred $1 million of RMBS securities into Level 3 primarily due to lesser pricing transparency resulting in using broker pricing, where as vendor pricing had been previously used. | ||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 1.04% (a) | 1.05% (a) | |||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 761 bps (a) | 736 bps (a) (b) | |||||||||||||||||||||||||
CMBS | Discounted cash flows | Spread | — | 139 bps (a) (b) | |||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs | N/A (c) | N/A (c) | |||||||||||||||||||||||||
Nature of investment | |||||||||||||||||||||||||||||
Local market conditions | |||||||||||||||||||||||||||||
Comparables | |||||||||||||||||||||||||||||
Operating performance | |||||||||||||||||||||||||||||
Recent financing activity | |||||||||||||||||||||||||||||
(a) | At March 31, 2015 and December 31, 2014, corporate debt and RMBS each consisted of one bond. At December 31, 2014, CMBS also consisted of one bond. | ||||||||||||||||||||||||||||
(b) | During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above. | ||||||||||||||||||||||||||||
(c) | Not applicable. | ||||||||||||||||||||||||||||
The fair values of the assets using significant unobservable inputs are sensitive and can be impacted by significant increases or decreases in any of those inputs. Level 3 broker-priced instruments, including RMBS (except for the one bond previously noted), CMBS (except for the one bond previously noted), and CDO/ABS, are excluded from the table above because the unobservable inputs are not reasonably available to us. | |||||||||||||||||||||||||||||
Our RMBS, CMBS, and CDO/ABS securities have unobservable inputs that are reliant on and sensitive to the quality of their underlying collateral. The inputs, although not identical, have similar characteristics and interrelationships. Generally a change in the assumption used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment speeds. An improvement in the workout criteria related to the restructured debt and/or debt covenants of the underlying collateral may lead to an improvement in the cash flows and have an inverse impact on other inputs, specifically a reduction in the amount of discount applied for marketability and liquidity, making the structured bonds more attractive to market participants. | |||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS | |||||||||||||||||||||||||||||
We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. | |||||||||||||||||||||||||||||
Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | |||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 11 | 11 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 26 | $ | 26 | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 19 | $ | 19 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 11 | 11 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 30 | $ | 30 | |||||||||||||||||||||
Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows: | |||||||||||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | 1 | $ | 6 | |||||||||||||||||||||||||
Commercial mortgage loans * | — | — | |||||||||||||||||||||||||||
Total | $ | 1 | $ | 6 | |||||||||||||||||||||||||
* | Net impairment charges recorded on commercial mortgage loans for the three months ended March 31, 2015 and 2014 were less than $1 million and, therefore, are not quantified in the table above. | ||||||||||||||||||||||||||||
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 for the three months ended March 31, 2015 and 2014 and recorded the writedowns in other revenues — other. The fair values of real estate owned disclosed in the table above are unadjusted for transaction costs as required by the authoritative guidance for fair value measurements. The amounts of real estate owned recorded in other assets are net of transaction costs as required by the authoritative guidance for accounting for the impairment of long-lived assets. | |||||||||||||||||||||||||||||
In accordance with the authoritative guidance for the accounting for the impairment of commercial mortgage loans, we recorded allowance adjustments on certain impaired commercial mortgage loans reported in our Consumer and Insurance segment to record their fair value for the three months ended March 31, 2015 and 2014 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 March 31, 2015 and December 31, 2014 is as follows: | |||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A* | N/A* | |||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions | N/A* | N/A* | |||||||||||||||||||||||||
Nature of investment | |||||||||||||||||||||||||||||
Comparable property sales | |||||||||||||||||||||||||||||
Operating performance | |||||||||||||||||||||||||||||
* | 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 fair value of certificates of deposit and commercial paper having maturity dates greater than three months is based on the amortized cost, which is assumed to be immaterially different from the 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 of receivables from parent and affiliates 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 March 31, 2015, 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. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
SECURITIZATION | |
2015-B Securitization | |
On April 7, 2015, we completed a private securitization transaction in which a wholly owned special purpose vehicle sold $314 million of notes backed by personal loans held by Springleaf Funding Trust 2015-B (the “2015-B Trust”), at a 3.84% weighted average yield. We sold the asset-backed notes for $314 million, after the immaterial price discount but before expenses and a $3 million interest reserve requirement. |
Business_and_Basis_of_Presenta1
Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“U.S. GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements, but does not include all disclosures required by 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 condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2015 presentation, we reclassified certain prior period items in our condensed consolidated cash flow statement. These statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 (“2014 Annual Report on Form 10-K”). We follow the same significant accounting policies for our interim reporting. |
Finance_Receivables_Tables
Finance Receivables (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||
Schedule of components of net finance receivables by type | Components of net finance receivables by type were as follows: | ||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Gross receivables* | $ | 4,558 | $ | 1,833 | $ | 594 | $ | 43 | $ | 7,028 | |||||||||||
Unearned finance charges and points and fees | (773 | ) | — | (1 | ) | (4 | ) | (778 | ) | ||||||||||||
Accrued finance charges | 54 | 35 | 5 | — | 94 | ||||||||||||||||
Deferred origination costs | 43 | — | — | — | 43 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Gross receivables* | $ | 4,462 | $ | 1,941 | $ | 621 | $ | 52 | $ | 7,076 | |||||||||||
Unearned finance charges and points and fees | (764 | ) | — | (1 | ) | (5 | ) | (770 | ) | ||||||||||||
Accrued finance charges | 58 | 38 | 5 | 1 | 102 | ||||||||||||||||
Deferred origination costs | 44 | — | — | — | 44 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
* | Gross receivables are defined as follows: | ||||||||||||||||||||
• | finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“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 (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; and | ||||||||||||||||||||
• | purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts. | ||||||||||||||||||||
Schedule of unused credit lines extended to customers by the Company | Unused lines of credit extended to customers by the Company were as follows: | ||||||||||||||||||||
(dollars in millions) | March 31, | December 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Personal loans | $ | 1 | $ | 1 | |||||||||||||||||
SpringCastle Portfolio | 361 | 354 | |||||||||||||||||||
Real estate loans | 31 | 31 | |||||||||||||||||||
Total | $ | 393 | $ | 386 | |||||||||||||||||
Summary of net finance receivables by type and by days delinquent | The following is a summary of net finance receivables by type and by days delinquent: | ||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 30 | $ | 25 | $ | 9 | $ | — | $ | 64 | |||||||||||
90-119 days past due | 24 | 16 | 5 | — | 45 | ||||||||||||||||
120-149 days past due | 24 | 13 | 4 | — | 41 | ||||||||||||||||
150-179 days past due | 23 | 12 | 4 | — | 39 | ||||||||||||||||
180 days or more past due | 2 | 3 | 13 | — | 18 | ||||||||||||||||
Total delinquent finance receivables | 103 | 69 | 35 | — | 207 | ||||||||||||||||
Current | 3,729 | 1,756 | 548 | 38 | 6,071 | ||||||||||||||||
30-59 days past due | 50 | 43 | 15 | 1 | 109 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Net finance receivables: | |||||||||||||||||||||
60-89 days past due | $ | 36 | $ | 31 | $ | 12 | $ | 1 | $ | 80 | |||||||||||
90-119 days past due | 30 | 19 | 9 | — | 58 | ||||||||||||||||
120-149 days past due | 24 | 16 | 5 | 1 | 46 | ||||||||||||||||
150-179 days past due | 21 | 14 | 4 | — | 39 | ||||||||||||||||
180 days or more past due | 2 | 2 | 12 | — | 16 | ||||||||||||||||
Total delinquent finance receivables | 113 | 82 | 42 | 2 | 239 | ||||||||||||||||
Current | 3,632 | 1,839 | 565 | 45 | 6,081 | ||||||||||||||||
30-59 days past due | 55 | 58 | 18 | 1 | 132 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
Schedule of performing and nonperforming net finance receivables by type | Our performing and nonperforming net finance receivables by type were as follows: | ||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Performing | $ | 3,809 | $ | 1,824 | $ | 572 | $ | 39 | $ | 6,244 | |||||||||||
Nonperforming | 73 | 44 | 26 | — | 143 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Performing | $ | 3,723 | $ | 1,928 | $ | 595 | $ | 47 | $ | 6,293 | |||||||||||
Nonperforming | 77 | 51 | 30 | 1 | 159 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
Schedule of information regarding purchased credit impaired finance receivables | Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in millions) | SCP Loans | FA Loans | Total | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 309 | $ | 90 | $ | 399 | |||||||||||||||
Outstanding balance (b) | 587 | 147 | 734 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 5 | 5 | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying amount, net of allowance (a) | $ | 340 | $ | 93 | $ | 433 | |||||||||||||||
Outstanding balance (b) | 628 | 151 | 779 | ||||||||||||||||||
Allowance for purchased credit impaired finance receivable losses | — | 5 | 5 | ||||||||||||||||||
(a) | The carrying amount of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $66 million and $68 million, respectively, of purchased credit impaired finance receivables held for sale. | ||||||||||||||||||||
(b) | The outstanding balance of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $97 million and $99 million, respectively, 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 millions) | SCP Loans | FA Loans | Total | ||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Balance at beginning of period | $ | 541 | $ | 19 | $ | 560 | |||||||||||||||
Accretion (a) | (24 | ) | (3 | ) | (27 | ) | |||||||||||||||
Disposals of finance receivables (b) | (12 | ) | — | (12 | ) | ||||||||||||||||
Balance at end of period | $ | 505 | $ | 16 | $ | 521 | |||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | — | $ | 767 | $ | 767 | |||||||||||||||
Accretion | — | (29 | ) | (29 | ) | ||||||||||||||||
Transfers due to finance receivables sold | — | (57 | ) | (57 | ) | ||||||||||||||||
Disposals of finance receivables (b) | — | (5 | ) | (5 | ) | ||||||||||||||||
Balance at end of period | $ | — | $ | 676 | $ | 676 | |||||||||||||||
(a) | Accretion on our purchased credit impaired FA Loans for the three months ended March 31, 2015 includes $2 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. | ||||||||||||||||||||
(b) | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period. | ||||||||||||||||||||
Schedule of information regarding troubled debt restructured ("TDR") finance receivables | Information regarding TDR finance receivables held for investment and held for sale were as follows: | ||||||||||||||||||||
(dollars in millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 27 | $ | 12 | $ | 194 | $ | 233 | |||||||||||||
TDR net finance receivables (c) | 26 | 11 | 195 | 232 | |||||||||||||||||
Allowance for TDR finance receivable losses | 3 | 3 | 31 | 37 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
TDR gross finance receivables (a) (b) | $ | 22 | $ | 11 | $ | 196 | $ | 229 | |||||||||||||
TDR net finance receivables (c) | 22 | 10 | 196 | 228 | |||||||||||||||||
Allowance for TDR finance receivable losses | 1 | 3 | 32 | 36 | |||||||||||||||||
(a) | As defined earlier in this Note. | ||||||||||||||||||||
(b) | TDR real estate loan gross finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, of TDR finance receivables held for sale. | ||||||||||||||||||||
(c) | TDR real estate loan net finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, 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 millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
TDR average net receivables (a) | $ | 25 | $ | 11 | $ | 195 | $ | 231 | |||||||||||||
TDR finance charges recognized (b) | 1 | — | 3 | 4 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
TDR average net receivables | $ | 13 | $ | — | $ | 1,413 | $ | 1,426 | |||||||||||||
TDR finance charges recognized | — | — | 18 | 18 | |||||||||||||||||
(a) | TDR real estate loan average net receivables for the three months ended March 31, 2015 include $90 million of TDR average net receivables held for sale. | ||||||||||||||||||||
(b) | TDR real estate loan finance charges recognized for the three months ended March 31, 2015 include $1 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 millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Pre-modification TDR net finance receivables (a) | $ | 9 | $ | 2 | $ | 4 | $ | 15 | |||||||||||||
Post-modification TDR net finance receivables (a) | $ | 8 | $ | 2 | $ | 4 | $ | 14 | |||||||||||||
Number of TDR accounts (b) | 1,854 | 195 | 78 | 2,127 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Pre-modification TDR net finance receivables | $ | 3 | $ | — | $ | 102 | $ | 105 | |||||||||||||
Post-modification TDR net finance receivables | $ | 2 | $ | — | $ | 93 | $ | 95 | |||||||||||||
Number of TDR accounts | 662 | — | 988 | 1,650 | |||||||||||||||||
(a) | TDR real estate loan net finance receivables for the three months ended March 31, 2015 include less than $1 million of pre-modification and post-modification TDR net finance receivables held for sale. | ||||||||||||||||||||
(b) | Number of new TDR real estate loan accounts for the three months ended March 31, 2015 includes 9 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 millions) | Personal Loans | SpringCastle Portfolio | Real | Total | |||||||||||||||||
Estate Loans | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
TDR net finance receivables (a) (b) (c) | $ | — | $ | — | $ | 1 | $ | 1 | |||||||||||||
Number of TDR accounts (b) | 57 | 10 | 18 | 85 | |||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
TDR net finance receivables (a) (c) | $ | — | $ | — | $ | 16 | $ | 16 | |||||||||||||
Number of TDR accounts | 15 | — | 229 | 244 | |||||||||||||||||
(a) | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | ||||||||||||||||||||
(b) | Includes 9 TDR real estate loan accounts totaling less than $1 million that were held for sale. | ||||||||||||||||||||
(c) | TDR personal loans for the three months ended March 31, 2015 and 2014 and TDR SpringCastle Portfolio for the three months ended March 31, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the table above. |
Allowance_for_Finance_Receivab1
Allowance for Finance Receivable Losses (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Loans and Leases Receivable, Allowance [Abstract] | |||||||||||||||||||||
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: | ||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Consolidated Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Balance at beginning of period | $ | 130 | $ | 3 | $ | 40 | $ | 1 | $ | 174 | |||||||||||
Provision for finance receivable losses | 55 | 27 | 4 | — | 86 | ||||||||||||||||
Charge-offs | (61 | ) | (30 | ) | (6 | ) | (1 | ) | (98 | ) | |||||||||||
Recoveries | 8 | 3 | 1 | 1 | 13 | ||||||||||||||||
Balance at end of period | $ | 132 | $ | 3 | $ | 39 | $ | 1 | $ | 175 | |||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Balance at beginning of period | $ | 94 | $ | — | $ | 236 | $ | 2 | $ | 332 | |||||||||||
Provision for finance receivable losses | 47 | — | 58 | 2 | 107 | ||||||||||||||||
Charge-offs | (44 | ) | — | (28 | ) | (1 | ) | (73 | ) | ||||||||||||
Recoveries (a) | 4 | — | 4 | — | 8 | ||||||||||||||||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale (b) | — | — | (10 | ) | — | (10 | ) | ||||||||||||||
Balance at end of period | $ | 101 | $ | — | $ | 260 | $ | 3 | $ | 364 | |||||||||||
(a) | Recoveries during the three months ended March 31, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. | ||||||||||||||||||||
(b) | During the first quarter of 2014, we reduced the carrying value of certain real estate loans to $825 million as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||||||||||||||||||
Schedule of carrying value charged-off for purchased credit impaired loans | The carrying value charged-off for purchased credit impaired loans was as follows: | ||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Charged-off against provision for finance receivable losses: | |||||||||||||||||||||
SCP Loans | $ | 7 | $ | — | |||||||||||||||||
FA Loans gross charge-offs* | — | 6 | |||||||||||||||||||
* | Represents additional impairment recognized, subsequent to the establishment of the pools of purchased credit impaired loans, related to loans that have been foreclosed and transferred to real estate owned status. | ||||||||||||||||||||
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: | ||||||||||||||||||||
(dollars in millions) | Personal | SpringCastle | Real | Retail | Total | ||||||||||||||||
Loans | Portfolio | Estate Loans | Sales Finance | ||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | — | $ | 3 | $ | 1 | $ | 133 | |||||||||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | — | — | 5 | — | 5 | ||||||||||||||||
Individually evaluated for impairment (TDR finance receivables) | 3 | 3 | 31 | — | 37 | ||||||||||||||||
Total | $ | 132 | $ | 3 | $ | 39 | $ | 1 | $ | 175 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,856 | $ | 1,548 | $ | 463 | $ | 39 | $ | 5,906 | |||||||||||
Purchased credit impaired finance receivables | — | 309 | 30 | — | 339 | ||||||||||||||||
TDR finance receivables | 26 | 11 | 105 | — | 142 | ||||||||||||||||
Total | $ | 3,882 | $ | 1,868 | $ | 598 | $ | 39 | $ | 6,387 | |||||||||||
31-Dec-14 | |||||||||||||||||||||
Allowance for finance receivable losses for finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 129 | $ | — | $ | 3 | $ | 1 | $ | 133 | |||||||||||
Purchased credit impaired finance receivables | — | — | 5 | — | 5 | ||||||||||||||||
TDR finance receivables | 1 | 3 | 32 | — | 36 | ||||||||||||||||
Total | $ | 130 | $ | 3 | $ | 40 | $ | 1 | $ | 174 | |||||||||||
Finance receivables: | |||||||||||||||||||||
Collectively evaluated for impairment | $ | 3,778 | $ | 1,629 | $ | 490 | $ | 48 | $ | 5,945 | |||||||||||
Purchased credit impaired finance receivables | — | 340 | 30 | — | 370 | ||||||||||||||||
TDR finance receivables | 22 | 10 | 105 | — | 137 | ||||||||||||||||
Total | $ | 3,800 | $ | 1,979 | $ | 625 | $ | 48 | $ | 6,452 | |||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: | ||||||||||||||||||||||||
(dollars in millions) | Cost/ | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Amortized | Gains | Losses | Value | ||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 30 | $ | 2 | $ | — | $ | 32 | |||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 100 | 2 | (1 | ) | 101 | ||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1 | — | — | 1 | |||||||||||||||||||||
Corporate debt | 291 | 13 | — | 304 | |||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
Residential mortgage-backed securities (“RMBS”) | 115 | 1 | — | 116 | |||||||||||||||||||||
Commercial mortgage-backed securities (“CMBS”) | 42 | — | — | 42 | |||||||||||||||||||||
Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) | 58 | — | — | 58 | |||||||||||||||||||||
Total | 637 | 18 | (1 | ) | 654 | ||||||||||||||||||||
Preferred stock | 8 | — | — | 8 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | 1 | |||||||||||||||||||||
Total (b) | $ | 646 | $ | 18 | $ | (1 | ) | $ | 663 | ||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 61 | $ | 3 | $ | — | $ | 64 | |||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 99 | 3 | — | 102 | |||||||||||||||||||||
Certificates of deposit and commercial paper (a) | 1 | — | — | 1 | |||||||||||||||||||||
Corporate debt | 256 | 12 | (1 | ) | 267 | ||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 71 | 2 | — | 73 | |||||||||||||||||||||
CMBS | 25 | — | (1 | ) | 24 | ||||||||||||||||||||
CDO/ABS | 61 | — | — | 61 | |||||||||||||||||||||
Total | 574 | 20 | (2 | ) | 592 | ||||||||||||||||||||
Preferred stock | 7 | — | — | 7 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | 1 | |||||||||||||||||||||
Total (b) | $ | 582 | $ | 20 | $ | (2 | ) | $ | 600 | ||||||||||||||||
(a) | Includes certificates of deposit totaling $1 million pledged as collateral, primarily to support bank lines of credit at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
(b) | Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at March 31, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost. | ||||||||||||||||||||||||
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
(dollars in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses * | Value | Losses * | Value | Losses | ||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | $ | 19 | $ | (1 | ) | $ | 6 | $ | — | $ | 25 | $ | (1 | ) | |||||||||||
Corporate debt | 30 | — | 5 | — | 35 | — | |||||||||||||||||||
RMBS | 43 | — | — | — | 43 | — | |||||||||||||||||||
CMBS | 17 | — | 5 | — | 22 | — | |||||||||||||||||||
CDO/ABS | 21 | — | — | — | 21 | — | |||||||||||||||||||
Total | 130 | (1 | ) | 16 | — | 146 | (1 | ) | |||||||||||||||||
Preferred stock | 6 | — | — | — | 6 | — | |||||||||||||||||||
Total | $ | 136 | $ | (1 | ) | $ | 16 | $ | — | $ | 152 | $ | (1 | ) | |||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | — | $ | — | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||
Obligations of states, municipalities, and political subdivisions | 27 | — | 1 | — | 28 | — | |||||||||||||||||||
Corporate debt | 36 | (1 | ) | 6 | — | 42 | (1 | ) | |||||||||||||||||
RMBS | 9 | — | — | — | 9 | — | |||||||||||||||||||
CMBS | 16 | (1 | ) | 2 | — | 18 | (1 | ) | |||||||||||||||||
CDO/ABS | 46 | — | — | — | 46 | — | |||||||||||||||||||
Total | 134 | (2 | ) | 10 | — | 144 | (2 | ) | |||||||||||||||||
Preferred stock | 6 | — | — | — | 6 | — | |||||||||||||||||||
Total | $ | 140 | $ | (2 | ) | $ | 10 | $ | — | $ | 150 | $ | (2 | ) | |||||||||||
* | Unrealized losses on certain available-for-sale securities for the three months ended March 31, 2015 and 2014 were less than $1 million and, therefore, are not quantified in the table above. | ||||||||||||||||||||||||
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at March 31, 2015 were as follows: | ||||||||||||||||||||||||
(dollars in millions) | Fair Value | Amortized Cost | |||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | |||||||||||||||||||||||||
Due in 1 year or less | $ | 39 | $ | 39 | |||||||||||||||||||||
Due after 1 year through 5 years | 195 | 191 | |||||||||||||||||||||||
Due after 5 years through 10 years | 112 | 104 | |||||||||||||||||||||||
Due after 10 years | 92 | 88 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | 216 | 215 | |||||||||||||||||||||||
Total | $ | 654 | $ | 637 | |||||||||||||||||||||
Schedule of fair value of trading securities by type | The fair value of trading securities by type was as follows: | ||||||||||||||||||||||||
(dollars in millions) | March 31, | December 31, | |||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Fixed maturity trading securities: | |||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||
U.S. government and government sponsored entities | $ | 1,079 | $ | 302 | |||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | 7 | 14 | |||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 238 | |||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 20 | |||||||||||||||||||||||
Corporate debt | 529 | 1,056 | |||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | |||||||||||||||||||||||||
RMBS | 15 | 35 | |||||||||||||||||||||||
CMBS | 120 | 149 | |||||||||||||||||||||||
CDO/ABS | 322 | 507 | |||||||||||||||||||||||
Total | $ | 2,072 | $ | 2,321 | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of realized gains, realized losses, and net realized gains 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 millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Fair value | $ | 74 | $ | 51 | |||||||||||||||||||||
Realized gains | $ | 7 | $ | 2 | |||||||||||||||||||||
Realized losses | (1 | ) | — | ||||||||||||||||||||||
Net realized gains | $ | 6 | $ | 2 | |||||||||||||||||||||
Trading securities | |||||||||||||||||||||||||
Investment securities | |||||||||||||||||||||||||
Schedule of net unrealized and realized gains (losses) on trading securities | The net unrealized and realized gains on our trading securities, which we report in investment revenues, were as follows: | ||||||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Net unrealized gains on trading securities held at period end | $ | 3 | $ | — | |||||||||||||||||||||
Net realized gains on trading securities sold or redeemed | — | — | |||||||||||||||||||||||
Total | $ | 3 | $ | — | |||||||||||||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
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 March 31, 2015 were as follows: | ||||||||||||||||||||
(dollars in millions) | Retail | Medium | Securitizations | Junior | Total | ||||||||||||||||
Notes | Term | Subordinated | |||||||||||||||||||
Notes | Debt | ||||||||||||||||||||
Interest rates (a) | 6.50%-7.50% | 5.25%-8.25% | 2.41%-6.82% | 6 | % | ||||||||||||||||
Second quarter 2015 | $ | 7 | $ | — | $ | — | $ | — | $ | 7 | |||||||||||
Third quarter 2015 | 24 | — | — | — | 24 | ||||||||||||||||
Fourth quarter 2015 | — | 750 | — | — | 750 | ||||||||||||||||
First quarter 2016 | — | — | — | — | — | ||||||||||||||||
Remainder of 2016 | — | 375 | — | — | 375 | ||||||||||||||||
2017 | — | 1,902 | — | — | 1,902 | ||||||||||||||||
2018 | — | — | — | — | — | ||||||||||||||||
2019 | — | 700 | — | — | 700 | ||||||||||||||||
2020-2067 | — | 1,250 | — | 350 | 1,600 | ||||||||||||||||
Securitizations (b) | — | — | 4,873 | — | 4,873 | ||||||||||||||||
Total principal maturities | $ | 31 | $ | 4,977 | $ | 4,873 | $ | 350 | $ | 10,231 | |||||||||||
Total carrying amount (c) | $ | 30 | $ | 4,555 | $ | 4,878 | $ | 172 | $ | 9,635 | |||||||||||
(a) | The interest rates shown are the range of contractual rates in effect at March 31, 2015. | ||||||||||||||||||||
(b) | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations. | ||||||||||||||||||||
(c) | 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Variable Interest Entities | |||||||||
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: | ||||||||
(dollars in millions) | March 31, | December 31, | |||||||
2015 | 2014 | ||||||||
Assets | |||||||||
Finance receivables: | |||||||||
Personal loans | $ | 2,838 | $ | 1,853 | |||||
SpringCastle Portfolio | 1,868 | 1,979 | |||||||
Allowance for finance receivable losses | 76 | 72 | |||||||
Restricted cash and cash equivalents | 330 | 210 | |||||||
Liabilities | |||||||||
Long-term debt | $ | 4,878 | $ | 3,644 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||
Schedule of changes in accumulated other comprehensive income | Changes in accumulated other comprehensive income were as follows: | ||||||||||||||||
(dollars in millions) | Unrealized | Retirement | Foreign | Total | |||||||||||||
Gains (Losses) | Plan | Currency | Accumulated | ||||||||||||||
Investment | Liabilities | Translation | Other | ||||||||||||||
Securities | Adjustments | Adjustments | Comprehensive | ||||||||||||||
Income | |||||||||||||||||
(Loss) | |||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||
Balance at beginning of period | $ | 12 | $ | (13 | ) | $ | 4 | $ | 3 | ||||||||
Other comprehensive income before reclassifications | 3 | — | 1 | 4 | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (4 | ) | — | — | (4 | ) | |||||||||||
Balance at end of period | $ | 11 | $ | (13 | ) | $ | 5 | $ | 3 | ||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||
Balance at beginning of period | $ | 4 | $ | 20 | $ | 4 | $ | 28 | |||||||||
Other comprehensive income before reclassifications | 6 | — | — | 6 | |||||||||||||
Reclassification adjustments from accumulated other comprehensive income | (1 | ) | — | — | (1 | ) | |||||||||||
Balance at end of period | $ | 9 | $ | 20 | $ | 4 | $ | 33 | |||||||||
Schedule of reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income to the applicable line item on our condensed consolidated statements of operations were as follows: | ||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Unrealized gains on investment securities: | |||||||||||||||||
Reclassification from accumulated other comprehensive income | $ | 6 | $ | 2 | |||||||||||||
to investment revenues, before taxes | |||||||||||||||||
Income tax effect | (2 | ) | (1 | ) | |||||||||||||
Reclassification from accumulated other comprehensive income | $ | 4 | $ | 1 | |||||||||||||
to investment revenues, net of taxes | |||||||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Schedule of components of net periodic benefit cost | The following table presents the components of net periodic benefit cost with respect to our defined benefit pension plans: | ||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Pension | |||||||||
Components of net periodic benefit cost: | |||||||||
Interest cost | $ | 4 | $ | 4 | |||||
Expected return on assets | (5 | ) | (4 | ) | |||||
Net periodic benefit cost | $ | (1 | ) | $ | — | ||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Schedule of information about the Company's segments as well as reconciliations to condensed consolidated financial statement amounts | The following tables present information about the Company’s segments as well as reconciliations to the condensed consolidated financial statement amounts. | ||||||||||||||||||||||||||||
(dollars in millions) | Consumer and Insurance | Acquisitions | Real | Other | Eliminations | Push-down | Consolidated | ||||||||||||||||||||||
and | Estate | Accounting | Total | ||||||||||||||||||||||||||
Servicing | Adjustments | ||||||||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Interest income | $ | 254 | $ | 125 | $ | 18 | $ | 2 | $ | — | $ | 3 | $ | 402 | |||||||||||||||
Interest expense | 40 | 23 | 60 | 10 | (5 | ) | 30 | 158 | |||||||||||||||||||||
Provision for finance receivable losses | 55 | 27 | 2 | — | — | 2 | 86 | ||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 159 | 75 | (44 | ) | (8 | ) | 5 | (29 | ) | 158 | |||||||||||||||||||
Other revenues | 51 | 5 | 3 | 2 | (5 | ) | (3 | ) | 53 | ||||||||||||||||||||
Other expenses | 140 | 16 | 7 | 5 | — | 1 | 169 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | 70 | 64 | (48 | ) | (11 | ) | — | (33 | ) | 42 | |||||||||||||||||||
Income before provision for income taxes attributable to non-controlling interests | — | 31 | — | — | — | — | 31 | ||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | $ | 70 | $ | 33 | $ | (48 | ) | $ | (11 | ) | $ | — | $ | (33 | ) | $ | 11 | ||||||||||||
Assets | $ | 5,042 | $ | 1,964 | $ | 3,641 | $ | 1,832 | $ | — | $ | 10 | $ | 12,489 | |||||||||||||||
(dollars in millions) | Consumer and Insurance | Real Estate | Other | Push-down | Consolidated | ||||||||||||||||||||||||
Accounting | Total | ||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Interest income | $ | 209 | $ | 152 | $ | 5 | $ | 36 | $ | 402 | |||||||||||||||||||
Interest expense | 41 | 110 | 2 | 29 | 182 | ||||||||||||||||||||||||
Provision for finance receivable losses | 45 | 61 | 1 | — | 107 | ||||||||||||||||||||||||
Net interest income (loss) after provision for finance receivable losses | 123 | (19 | ) | 2 | 7 | 113 | |||||||||||||||||||||||
Other revenues | 49 | (64 | ) | 2 | 113 | 100 | |||||||||||||||||||||||
Other expenses | 123 | 22 | 5 | 1 | 151 | ||||||||||||||||||||||||
Income (loss) before provision for (benefit from) income taxes | $ | 49 | $ | (105 | ) | $ | (1 | ) | $ | 119 | $ | 62 | |||||||||||||||||
Assets | $ | 4,173 | $ | 7,259 | $ | 1,009 | $ | (434 | ) | $ | 12,007 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: | ||||||||||||||||||||||||||||
Fair Value Measurements Using | Total | Total | |||||||||||||||||||||||||||
Fair | Carrying | ||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Value | Value | ||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,294 | $ | — | $ | — | $ | 2,294 | $ | 2,294 | |||||||||||||||||||
Investment securities | — | 2,730 | 6 | 2,736 | 2,736 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,883 | 6,883 | 6,212 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 203 | 203 | 199 | ||||||||||||||||||||||||
Note receivable from parent | — | 263 | — | 263 | 263 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 344 | — | — | 344 | 344 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 67 | 67 | 72 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8 | 8 | 8 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 12 | — | 12 | 12 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 27 | — | 27 | 36 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 10,390 | $ | — | $ | 10,390 | $ | 9,635 | |||||||||||||||||||
Payables to parent and affiliates | — | 47 | — | 47 | 47 | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 749 | $ | — | $ | — | $ | 749 | $ | 749 | |||||||||||||||||||
Investment securities | — | 2,913 | 9 | 2,922 | 2,922 | ||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | — | — | 6,949 | 6,949 | 6,278 | ||||||||||||||||||||||||
Finance receivables held for sale | — | — | 209 | 209 | 205 | ||||||||||||||||||||||||
Note receivable from parent | — | 251 | — | 251 | 251 | ||||||||||||||||||||||||
Restricted cash and cash equivalents | 218 | — | — | 218 | 218 | ||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 78 | 78 | 85 | ||||||||||||||||||||||||
Escrow advance receivable | — | — | 8 | 8 | 8 | ||||||||||||||||||||||||
Receivables from parent and affiliates | — | 12 | — | 12 | 12 | ||||||||||||||||||||||||
Receivables related to sales of real estate loans and related trust assets | — | 67 | — | 67 | 79 | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 9,182 | $ | — | $ | 9,182 | $ | 8,385 | |||||||||||||||||||
Payables to parent and affiliates | — | 48 | — | 48 | 48 | ||||||||||||||||||||||||
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 millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 1,165 | $ | — | $ | — | $ | 1,165 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 32 | — | 32 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 101 | — | 101 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Corporate debt | — | 300 | 4 | 304 | |||||||||||||||||||||||||
RMBS | — | 116 | — | 116 | |||||||||||||||||||||||||
CMBS | — | 42 | — | 42 | |||||||||||||||||||||||||
CDO/ABS | — | 58 | — | 58 | |||||||||||||||||||||||||
Total | — | 650 | 4 | 654 | |||||||||||||||||||||||||
Preferred stock | — | 8 | — | 8 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1 | 1 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 658 | 5 | 663 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 1,079 | — | 1,079 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 7 | — | 7 | |||||||||||||||||||||||||
Corporate debt | — | 529 | — | 529 | |||||||||||||||||||||||||
RMBS | — | 15 | — | 15 | |||||||||||||||||||||||||
CMBS | — | 120 | — | 120 | |||||||||||||||||||||||||
CDO/ABS | — | 322 | — | 322 | |||||||||||||||||||||||||
Total trading securities | — | 2,072 | — | 2,072 | |||||||||||||||||||||||||
Total investment securities | — | 2,730 | 5 | 2,735 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 322 | — | — | 322 | |||||||||||||||||||||||||
Total | $ | 1,487 | $ | 2,731 | $ | 5 | $ | 4,223 | |||||||||||||||||||||
Fair Value Measurements Using | Total Carried At Fair Value | ||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash equivalents in mutual funds | $ | 236 | $ | — | $ | — | $ | 236 | |||||||||||||||||||||
Cash equivalents in certificates of deposit and commercial paper | — | 165 | — | 165 | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 64 | — | 64 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 102 | — | 102 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 1 | — | 1 | |||||||||||||||||||||||||
Corporate debt | — | 263 | 4 | 267 | |||||||||||||||||||||||||
RMBS | — | 73 | — | 73 | |||||||||||||||||||||||||
CMBS | — | 21 | 3 | 24 | |||||||||||||||||||||||||
CDO/ABS | — | 61 | — | 61 | |||||||||||||||||||||||||
Total | — | 585 | 7 | 592 | |||||||||||||||||||||||||
Preferred stock | — | 7 | — | 7 | |||||||||||||||||||||||||
Other long-term investments (a) | — | — | 1 | 1 | |||||||||||||||||||||||||
Total available-for-sale securities (b) | — | 592 | 8 | 600 | |||||||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
U.S. government and government sponsored entities | — | 302 | — | 302 | |||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | — | 14 | — | 14 | |||||||||||||||||||||||||
Certificates of deposit and commercial paper | — | 238 | — | 238 | |||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | — | 20 | — | 20 | |||||||||||||||||||||||||
Corporate debt | — | 1,056 | — | 1,056 | |||||||||||||||||||||||||
RMBS | — | 35 | — | 35 | |||||||||||||||||||||||||
CMBS | — | 149 | — | 149 | |||||||||||||||||||||||||
CDO/ABS | — | 507 | — | 507 | |||||||||||||||||||||||||
Total trading securities | — | 2,321 | — | 2,321 | |||||||||||||||||||||||||
Total investment securities | — | 2,913 | 8 | 2,921 | |||||||||||||||||||||||||
Restricted cash in mutual funds | 207 | — | — | 207 | |||||||||||||||||||||||||
Total | $ | 443 | $ | 3,078 | $ | 8 | $ | 3,529 | |||||||||||||||||||||
(a) | Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method. | ||||||||||||||||||||||||||||
(b) | Common stocks not carried at fair value totaled $1 million at March 31, 2015 and December 31, 2014 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 in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2015: | ||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 * | period | |||||||||||||||||||||||||||
(dollars in millions) | Balance at | Other | Other | settlements | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||
CMBS | 3 | — | — | — | — | (3 | ) | — | |||||||||||||||||||||
Total | 7 | — | — | — | — | (3 | ) | 4 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total | $ | 8 | $ | — | $ | — | $ | — | $ | — | $ | (3 | ) | $ | 5 | ||||||||||||||
* | During the three months ended March 31, 2015, we transferred CMBS securities totaling $3 million out of Level 3 primarily related to the re-evaluated observability of pricing inputs. | ||||||||||||||||||||||||||||
The following table presents changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2014: | |||||||||||||||||||||||||||||
Net gains (losses) included in: | Purchases, | Transfers into | Transfers | Balance | |||||||||||||||||||||||||
sales, | Level 3 (b) | out of | at end of | ||||||||||||||||||||||||||
issues, | Level 3 | period | |||||||||||||||||||||||||||
(dollars in millions) | Balance at | Other | Other | settlements (a) | |||||||||||||||||||||||||
beginning | revenues | comprehensive | |||||||||||||||||||||||||||
of period | income (loss) | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
Corporate debt | $ | 13 | $ | — | $ | — | $ | (4 | ) | $ | — | $ | — | $ | 9 | ||||||||||||||
CDO/ABS | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total | 14 | — | — | (4 | ) | — | — | 10 | |||||||||||||||||||||
Other long-term investments | 1 | — | — | — | — | — | 1 | ||||||||||||||||||||||
Total available-for-sale securities | 15 | — | — | (4 | ) | — | — | 11 | |||||||||||||||||||||
Trading securities: | |||||||||||||||||||||||||||||
Bonds: | |||||||||||||||||||||||||||||
RMBS | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||
CDO/ABS | 7 | — | — | — | — | — | 7 | ||||||||||||||||||||||
Total trading securities | 7 | — | — | — | 1 | — | 8 | ||||||||||||||||||||||
Total | $ | 22 | $ | — | $ | — | $ | (4 | ) | $ | 1 | $ | — | $ | 19 | ||||||||||||||
(a) | “Purchases, sales, issues, and settlements” column only consist of settlements for the three months ended March 31, 2014, as the purchases were immaterial. | ||||||||||||||||||||||||||||
(b) | During the three months ended March 31, 2014, we transferred $1 million of RMBS securities into Level 3 primarily due to lesser pricing transparency resulting in using broker pricing, where as vendor pricing had been previously used. | ||||||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 is as follows: | ||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Corporate debt | Discounted cash flows | Yield | 1.04% (a) | 1.05% (a) | |||||||||||||||||||||||||
RMBS | Discounted cash flows | Spread | 761 bps (a) | 736 bps (a) (b) | |||||||||||||||||||||||||
CMBS | Discounted cash flows | Spread | — | 139 bps (a) (b) | |||||||||||||||||||||||||
Other long-term investments | Discounted cash flows and indicative valuations | Historical costs | N/A (c) | N/A (c) | |||||||||||||||||||||||||
Nature of investment | |||||||||||||||||||||||||||||
Local market conditions | |||||||||||||||||||||||||||||
Comparables | |||||||||||||||||||||||||||||
Operating performance | |||||||||||||||||||||||||||||
Recent financing activity | |||||||||||||||||||||||||||||
(a) | At March 31, 2015 and December 31, 2014, corporate debt and RMBS each consisted of one bond. At December 31, 2014, CMBS also consisted of one bond. | ||||||||||||||||||||||||||||
(b) | During the first quarter of 2015, we identified that we incorrectly disclosed the weighted average ranges of our RMBS bond and CMBS bond as of December 31, 2014. The weighted average ranges of these bonds at December 31, 2014 have been corrected in the table above. | ||||||||||||||||||||||||||||
(c) | Not applicable. | ||||||||||||||||||||||||||||
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: | ||||||||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||||||||
(dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
31-Mar-15 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 11 | 11 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 26 | $ | 26 | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | — | $ | — | $ | 19 | $ | 19 | |||||||||||||||||||||
Commercial mortgage loans | — | — | 11 | 11 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | 30 | $ | 30 | |||||||||||||||||||||
Schedule of net impairment charges recorded on assets measured at fair value on a non-recurring basis | Net impairment charges recorded on assets measured at fair value on a non-recurring basis were as follows: | ||||||||||||||||||||||||||||
(dollars in millions) | Three Months Ended March 31, | ||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Real estate owned | $ | 1 | $ | 6 | |||||||||||||||||||||||||
Commercial mortgage loans * | — | — | |||||||||||||||||||||||||||
Total | $ | 1 | $ | 6 | |||||||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 is as follows: | ||||||||||||||||||||||||||||
Range (Weighted Average) | |||||||||||||||||||||||||||||
Valuation Technique(s) | Unobservable Input | 31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Real estate owned | Market approach | Third-party valuation | N/A* | N/A* | |||||||||||||||||||||||||
Commercial mortgage loans | Market approach | Local market conditions | N/A* | N/A* | |||||||||||||||||||||||||
Nature of investment | |||||||||||||||||||||||||||||
Comparable property sales | |||||||||||||||||||||||||||||
Operating performance | |||||||||||||||||||||||||||||
* | Not applicable. |
Business_and_Basis_of_Presenta2
Business and Basis of Presentation (Details) | Mar. 31, 2015 | 4-May-15 |
Corporate Joint Venture | ||
Related Party Transactions | ||
Ownership percentage in joint venture | 47.00% | |
Majority Shareholder | ||
Related Party Transactions | ||
Percent of common stock held by related party | 75.00% | |
common stock ownership, If the option granted to the underwriters to purchase additional shares is exercised in full at a later date | 54.60% | |
Affiliates of Fortress or AIG | ||
Related Party Transactions | ||
common stock ownership, If the option granted to the underwriters to purchase additional shares is exercised in full at a later date | 54.60% | |
Subsidiaries of American International Group Inc | ||
Related Party Transactions | ||
common stock ownership, If the option granted to the underwriters to purchase additional shares is exercised in full at a later date | 0.00% | |
Subsequent Event | Majority Shareholder | ||
Related Party Transactions | ||
Percent of common stock held by related party | 57.70% | |
Subsequent Event | Affiliates of Fortress or AIG | ||
Related Party Transactions | ||
Percent of common stock held by related party | 54.60% | |
Subsequent Event | Subsidiaries of American International Group Inc | ||
Related Party Transactions | ||
Percent of common stock held by related party | 3.10% |
Significant_Transactions_Detai
Significant Transactions (Details) (OneMain Financial Holdings, Inc., USD $) | 3 Months Ended |
In Billions, unless otherwise specified | Mar. 31, 2015 |
OneMain Financial Holdings, Inc. | |
Business Acquisition [Line Items] | |
Aggregate purchase price | $4.25 |
Finance_Receivables_Narrative_
Finance Receivables Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |||||
account | account | |||||||
Finance Receivables | ||||||||
Net finance receivables | $6,387,000,000 | $6,387,000,000 | $6,452,000,000 | |||||
Long-term debt | 9,635,000,000 | 9,635,000,000 | 8,385,000,000 | |||||
Loans receivable held for sale | 199,000,000 | 199,000,000 | 205,000,000 | |||||
TDR gross finance receivables | 233,000,000 | [1],[2] | 233,000,000 | [1],[2] | 229,000,000 | [1],[2] | ||
TDR finance receivables | 142,000,000 | 142,000,000 | 137,000,000 | |||||
TDR average net receivables | 231,000,000 | [3] | 1,426,000,000 | |||||
TDR finance charges recognized | 4,000,000 | [4] | 18,000,000 | |||||
Pre-modification TDR net finance receivables | 15,000,000 | [5] | 105,000,000 | |||||
Post-modification TDR net finance receivables | 14,000,000 | [5] | 95,000,000 | |||||
Number of TDR accounts | 2,127,000 | [6] | 1,650,000 | |||||
Number of TDR accounts | 85,000 | [7] | 244,000 | |||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 1,000,000 | [7],[8],[9] | 16,000,000 | [8],[9] | ||||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | ||||||
Consolidated VIEs | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 3,600,000,000 | |||||||
Long-term debt | 4,878,000,000 | 4,878,000,000 | 3,644,000,000 | |||||
Personal loans | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 3,882,000,000 | 3,882,000,000 | 3,800,000,000 | |||||
TDR finance receivables | 26,000,000 | 26,000,000 | 22,000,000 | |||||
Personal loans | Consumer Loan Securitizations | Consolidated VIEs | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 2,838,000,000 | 2,838,000,000 | 1,853,000,000 | |||||
Personal loans | Titled personal property | ||||||||
Finance Receivables | ||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,000,000,000 | 2,000,000,000 | ||||||
Financing Receivables Secured by Real and Personal Property of Borrower as Percentage of Net Finance Receivables | 52.00% | |||||||
Personal loans | Consumer household goods or other items of personal property | ||||||||
Finance Receivables | ||||||||
Loans and Leases Receivable, Collateral for Secured Borrowings | 1,900,000,000 | 1,900,000,000 | ||||||
Financing Receivables Secured by Real and Personal Property of Borrower as Percentage of Net Finance Receivables | 48.00% | |||||||
Real estate loans | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 598,000,000 | 598,000,000 | 625,000,000 | |||||
TDR finance receivables | 105,000,000 | 105,000,000 | 105,000,000 | |||||
Retail Sales Finance | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 39,000,000 | 39,000,000 | 48,000,000 | |||||
TDR finance receivables | 0 | 0 | 0 | |||||
Revolving Retail | ||||||||
Finance Receivables | ||||||||
Accrual of finance charges, past due period | 180 days | |||||||
SpringCastle Portfolio | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 1,868,000,000 | 1,868,000,000 | 1,979,000,000 | |||||
TDR finance receivables | 11,000,000 | 11,000,000 | 10,000,000 | |||||
SpringCastle Portfolio | Mortgage Loan Securitizations | Consolidated VIEs | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 1,868,000,000 | 1,868,000,000 | 1,979,000,000 | |||||
Affiliates of Fortress or AIG | ||||||||
Finance Receivables | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Including Held for Sale, Carrying Amount, Net | 66,000,000 | 66,000,000 | 68,000,000 | |||||
Outstanding balance, Finance Receivables Held for Sale | 97,000,000 | 97,000,000 | 99,000,000 | |||||
FA Loans | ||||||||
Finance Receivables | ||||||||
Accretion on purchased credit impaired finance receivables held for sale | 2,000,000 | |||||||
Securitizations | ||||||||
Finance Receivables | ||||||||
Long-term debt | 4,878,000,000 | [10] | 4,878,000,000 | [10] | ||||
Securitizations | Consolidated VIEs | ||||||||
Finance Receivables | ||||||||
Long-term debt | 4,900,000,000 | 4,900,000,000 | ||||||
Real estate loans secured by first mortgages | ||||||||
Finance Receivables | ||||||||
Financing Receivables Real Estate Loans as Percentage of Net Finance Receivables Outstanding | 37.00% | |||||||
Real estate loans secured by first mortgages | Real estate loans | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 221,000,000 | 221,000,000 | ||||||
Real estate loans secured by second mortgages | ||||||||
Finance Receivables | ||||||||
Financing Receivables Real Estate Loans as Percentage of Net Finance Receivables Outstanding | 63.00% | |||||||
Real estate loans secured by second mortgages | Real estate loans | ||||||||
Finance Receivables | ||||||||
Net finance receivables | 377,000,000 | 377,000,000 | ||||||
Real estate loans | ||||||||
Finance Receivables | ||||||||
TDR gross finance receivables | 194,000,000 | [1],[2] | 194,000,000 | [1],[2] | 196,000,000 | [1] | ||
TDR average net receivables | 195,000,000 | [3] | 1,413,000,000 | |||||
TDR finance charges recognized | 3,000,000 | [4] | 18,000,000 | |||||
Real estate loans | Real Estate Loans Held for Sale | ||||||||
Finance Receivables | ||||||||
TDR gross finance receivables | 90,000,000 | [1] | 90,000,000 | [1] | 91,000,000 | [1] | ||
TDR finance receivables | 90,000,000 | 90,000,000 | 91,000,000 | |||||
TDR average net receivables | 90,000,000 | [3] | ||||||
TDR finance charges recognized | 1,000,000 | |||||||
Pre-modification TDR net finance receivables | 1,000,000 | |||||||
Number of TDR accounts | 9 | |||||||
Number of TDR accounts | 9 | |||||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $1,000,000 | [7] | ||||||
Corporate Joint Venture | ||||||||
Finance Receivables | ||||||||
Ownership percentage in joint venture | 47.00% | 47.00% | ||||||
Maximum | Personal loans | ||||||||
Finance Receivables | ||||||||
Financing Receivables, Original Term | 4 years | |||||||
Maximum | Real estate loans | ||||||||
Finance Receivables | ||||||||
Financing Receivables, Original Term | 360 months | |||||||
Maximum | Retail Sales Finance | ||||||||
Finance Receivables | ||||||||
Financing Receivables, Original Term | 60 months | |||||||
[1] | As defined earlier in this Note. | |||||||
[2] | TDR real estate loan gross finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, of TDR finance receivables held for sale. | |||||||
[3] | TDR real estate loan average net receivables for the three months ended March 31, 2015 include $90 million of TDR average net receivables held for sale | |||||||
[4] | TDR real estate loan finance charges recognized for the three months ended March 31, 2015 include $1 million of interest income on TDR finance receivables held for sale. | |||||||
[5] | TDR real estate loan net finance receivables for the three months ended March 31, 2015 include less than $1 million of pre-modification and post-modification TDR net finance receivables held for sale. | |||||||
[6] | Number of new TDR real estate loan accounts for the three months ended March 31, 2015 includes 9 new TDR accounts that were held for sale. | |||||||
[7] | ncludes 9 TDR real estate loan accounts totaling less than $1 million that were held for sale. | |||||||
[8] | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | |||||||
[9] | TDR personal loans for the three months ended March 31, 2015 and 2014 and TDR SpringCastle Portfolio for the three months ended March 31, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the table above. | |||||||
[10] | 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. |
Finance_Receivables_Details_2
Finance Receivables (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Finance Receivables | ||||
Gross receivables | $7,028 | [1] | $7,076 | [1] |
Unearned finance charges and points and fees | -778 | -770 | ||
Accrued finance charges | 94 | 102 | ||
Deferred origination costs | 43 | 44 | ||
Net finance receivables | 6,387 | 6,452 | ||
Personal loans | ||||
Finance Receivables | ||||
Gross receivables | 4,558 | [1] | 4,462 | [1] |
Unearned finance charges and points and fees | -773 | -764 | ||
Accrued finance charges | 54 | 58 | ||
Deferred origination costs | 43 | 44 | ||
Net finance receivables | 3,882 | 3,800 | ||
SpringCastle Portfolio | ||||
Finance Receivables | ||||
Gross receivables | 1,833 | [1] | 1,941 | [1] |
Accrued finance charges | 35 | 38 | ||
Net finance receivables | 1,868 | 1,979 | ||
Real estate loans | ||||
Finance Receivables | ||||
Gross receivables | 594 | [1] | 621 | [1] |
Unearned finance charges and points and fees | -1 | -1 | ||
Accrued finance charges | 5 | 5 | ||
Net finance receivables | 598 | 625 | ||
Retail Sales Finance | ||||
Finance Receivables | ||||
Gross receivables | 43 | [1] | 52 | [1] |
Unearned finance charges and points and fees | -4 | -5 | ||
Accrued finance charges | 0 | 1 | ||
Net finance receivables | $39 | $48 | ||
[1] | Gross receivables are defined as follows:•finance receivables purchased as a performing receivable — gross finance receivables equal the unpaid principal balance (“UPBâ€) 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 (as defined in the Purchased Credit Impaired Finance Receivables section located in this Note) — 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_Details_3
Finance Receivables (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finance Receivables | ||
Unused credit lines | $393 | $386 |
Personal loans | ||
Finance Receivables | ||
Unused credit lines | 1 | 1 |
SpringCastle Portfolio | ||
Finance Receivables | ||
Unused credit lines | 361 | 354 |
Real estate loans | ||
Finance Receivables | ||
Unused credit lines | $31 | $31 |
Finance_Receivables_Details_4
Finance Receivables (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Net finance receivables: | ||
Net finance receivables | $6,387 | $6,452 |
Total delinquent finance receivables | 207 | 239 |
Current | 6,071 | 6,081 |
Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 3,882 | 3,800 |
Total delinquent finance receivables | 103 | 113 |
Current | 3,729 | 3,632 |
SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 1,868 | 1,979 |
Total delinquent finance receivables | 69 | 82 |
Current | 1,756 | 1,839 |
Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 598 | 625 |
Total delinquent finance receivables | 35 | 42 |
Current | 548 | 565 |
Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 39 | 48 |
Total delinquent finance receivables | 0 | 2 |
Current | 38 | 45 |
60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 64 | 80 |
60-89 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 30 | 36 |
60-89 days past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 25 | 31 |
60-89 days past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 9 | 12 |
60-89 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1 |
90-119 days past due | ||
Net finance receivables: | ||
Net finance receivables | 45 | 58 |
90-119 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 24 | 30 |
90-119 days past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 16 | 19 |
90-119 days past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 5 | 9 |
90-119 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
120-149 days past due | ||
Net finance receivables: | ||
Net finance receivables | 41 | 46 |
120-149 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 24 | 24 |
120-149 days past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 13 | 16 |
120-149 days past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 4 | 5 |
120-149 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1 |
150-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 39 | 39 |
150-179 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 23 | 21 |
150-179 days past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 12 | 14 |
150-179 days past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 4 | 4 |
150-179 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 18 | 16 |
180 days or more past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 2 | 2 |
180 days or more past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 3 | 2 |
180 days or more past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 13 | 12 |
180 days or more past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 109 | 132 |
30-59 days past due | Personal loans | ||
Net finance receivables: | ||
Net finance receivables | 50 | 55 |
30-59 days past due | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 43 | 58 |
30-59 days past due | Real estate loans | ||
Net finance receivables: | ||
Net finance receivables | 15 | 18 |
30-59 days past due | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | $1 | $1 |
Finance_Receivables_Details_5
Finance Receivables (Details 5) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | $6,387 | $6,452 |
Personal loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 3,882 | 3,800 |
SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 1,868 | 1,979 |
Real estate loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 598 | 625 |
Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 39 | 48 |
Performing | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 6,244 | 6,293 |
Performing | Personal loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 3,809 | 3,723 |
Performing | SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 1,824 | 1,928 |
Performing | Real estate loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 572 | 595 |
Performing | Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 39 | 47 |
Nonperforming | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 143 | 159 |
Nonperforming | Personal loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 73 | 77 |
Nonperforming | SpringCastle Portfolio | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 44 | 51 |
Nonperforming | Real estate loans | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | 26 | 30 |
Nonperforming | Retail Sales Finance | ||
Performing and nonperforming net finance receivables by type | ||
Net finance receivables due | $0 | $1 |
Finance_Receivables_Details_6
Finance Receivables (Details 6) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Finance Receivables | ||||
Carrying amount, net of allowance | $399 | [1] | $433 | [1] |
Outstanding balance | 734 | [2] | 779 | [2] |
Allowance for purchased credit impaired finance receivable losses | 5 | 5 | ||
SpringCastle Portfolio | ||||
Finance Receivables | ||||
Carrying amount, net of allowance | 309 | [1] | 340 | [1] |
Outstanding balance | 587 | [2] | 628 | [2] |
Allowance for purchased credit impaired finance receivable losses | 0 | 0 | ||
Affiliates of Fortress or AIG | ||||
Finance Receivables | ||||
Carrying amount, net of allowance | 90 | [1] | 93 | [1] |
Outstanding balance | 147 | [2] | 151 | [2] |
Allowance for purchased credit impaired finance receivable losses | 5 | 5 | ||
Carrying amount, net of allowance finance receivables held for sale | 66 | 68 | ||
Outstanding balance, Finance Receivables Held for Sale | $97 | $99 | ||
[1] | The carrying amount of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $66 million and $68 million, respectively, of purchased credit impaired finance receivables held for sale. | |||
[2] | The outstanding balance of purchased credit impaired FA Loans at March 31, 2015 and December 31, 2014 includes $97 million and $99 million, respectively, of purchased credit impaired finance receivables held for sale. |
Finance_Receivables_Details_7
Finance Receivables (Details 7) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | $560 | $767 | ||
Accretion | -27 | [1] | -29 | |
Transfers due to finance receivables sold | -57 | |||
Disposals of finance receivables | -12 | [2] | -5 | [2] |
Balance at end of period | 521 | 676 | ||
SpringCastle Portfolio | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 541 | 0 | ||
Accretion | -24 | [1] | 0 | |
Transfers due to finance receivables sold | 0 | |||
Disposals of finance receivables | -12 | [2] | 0 | [2] |
Balance at end of period | 505 | 0 | ||
Affiliates of Fortress or AIG | ||||
Changes in accretable yield for purchased credit impaired finance receivables | ||||
Balance at beginning of period | 19 | 767 | ||
Accretion | -3 | [1] | -29 | |
Disposals of finance receivables | 0 | [2] | -5 | [2] |
Balance at end of period | $16 | $676 | ||
[1] | (a)Accretion on our purchased credit impaired FA Loans for the three months ended March 31, 2015 includes $2 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. | |||
[2] | Disposals of finance receivables represent finance charges forfeited due to purchased credit impaired finance receivables charged off during the period. |
Finance_Receivables_Details_8
Finance Receivables (Details 8) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR gross finance receivables | $233 | [1],[2] | $229 | [1],[2] |
TDR net finance receivables | 232 | [3] | 228 | [3] |
Allowance for TDR finance receivable losses | 37 | 36 | ||
Personal Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR gross finance receivables | 27 | [1],[2] | 22 | [1],[2] |
TDR net finance receivables | 26 | [3] | 22 | [3] |
Allowance for TDR finance receivable losses | 3 | 1 | ||
SpringCastle Portfolio | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR gross finance receivables | 12 | [1],[2] | 11 | [1],[2] |
TDR net finance receivables | 11 | [3] | 10 | [3] |
Allowance for TDR finance receivable losses | 3 | 3 | ||
Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR gross finance receivables | 194 | [1],[2] | 196 | [1] |
TDR net finance receivables | 195 | [3] | 196 | [3] |
Allowance for TDR finance receivable losses | 31 | 32 | ||
Real Estate Loans Held for Sale | Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR gross finance receivables | $90 | [1] | $91 | [1] |
[1] | As defined earlier in this Note. | |||
[2] | TDR real estate loan gross finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, of TDR finance receivables held for sale. | |||
[3] | TDR real estate loan net finance receivables at March 31, 2015 and December 31, 2014 include $90 million and $91 million, respectively, of TDR finance receivables held for sale. |
Finance_Receivables_Details_9
Finance Receivables (Details 9) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
Minimum balance to be TDRs, that subsequently defaulted to be disclosed. | $1 | ||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 231 | [1] | 1,426 |
TDR finance charges recognized | 4 | [2] | 18 |
Personal Loans | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 25 | [1] | 13 |
TDR finance charges recognized | 1 | [2] | 0 |
SpringCastle Portfolio | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 11 | [1] | 0 |
TDR finance charges recognized | 0 | [2] | 0 |
Real estate loans | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 195 | [1] | 1,413 |
TDR finance charges recognized | 3 | [2] | 18 |
Real Estate Loans Held for Sale | Real estate loans | |||
TDR average net receivables and finance charges recognized on TDR finance receivables | |||
TDR average net receivables | 90 | [1] | |
TDR finance charges recognized | $1 | ||
[1] | TDR real estate loan average net receivables for the three months ended March 31, 2015 include $90 million of TDR average net receivables held for sale | ||
[2] | TDR real estate loan finance charges recognized for the three months ended March 31, 2015 include $1 million of interest income on TDR finance receivables held for sale. |
Finance_Receivables_Details_10
Finance Receivables (Details 10) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
account | account | ||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | $15 | [1] | $105 |
Post-modification TDR net finance receivables | 14 | [1] | 95 |
Number of TDR accounts | 2,127,000 | [2] | 1,650,000 |
Personal loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 9 | [1] | 3 |
Post-modification TDR net finance receivables | 8 | [1] | 2 |
Number of TDR accounts | 1,854,000 | [2] | 662,000 |
SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 2 | [1] | 0 |
Post-modification TDR net finance receivables | 2 | [1] | 0 |
Number of TDR accounts | 195,000 | [2] | 0 |
Real Estate Loans Held for Investment | Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
Pre-modification TDR net finance receivables | 4 | [1] | 102 |
Post-modification TDR net finance receivables | $4 | [1] | $93 |
Number of TDR accounts | 78,000 | [2] | 988,000 |
[1] | TDR real estate loan net finance receivables for the three months ended March 31, 2015 include less than $1 million of pre-modification and post-modification TDR net finance receivables held for sale. | ||
[2] | Number of new TDR real estate loan accounts for the three months ended March 31, 2015 includes 9 new TDR accounts that were held for sale. |
Finance_Receivables_Details_11
Finance Receivables (Details 11) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
account | account | |||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $1 | [1],[2],[3] | $16 | [1],[2] |
Number of TDR accounts | 85,000 | [3] | 244,000 | |
Personal loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | 0 | [1],[2],[3] | 0 | [1],[2] |
Number of TDR accounts | 57,000 | [3] | 15,000 | |
SpringCastle Portfolio | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | 0 | [1],[2],[3] | 0 | [1],[2] |
Number of TDR accounts | 10,000 | [3] | 0 | |
Real Estate Loans Held for Investment | Real Estate Loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
TDR net finance receivables | $1 | [1],[2],[3] | $16 | [1],[2] |
Number of TDR accounts | 18,000 | [3] | 229,000 | |
[1] | Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. | |||
[2] | TDR personal loans for the three months ended March 31, 2015 and 2014 and TDR SpringCastle Portfolio for the three months ended March 31, 2015 that defaulted during the previous 12 month period were less than $1 million and, therefore, are not quantified in the table above. | |||
[3] | ncludes 9 TDR real estate loan accounts totaling less than $1 million that were held for sale. |
Allowance_for_Finance_Receivab2
Allowance for Finance Receivable Losses (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | $174 | $332 | |||
Provision for finance receivable losses | 86 | 107 | |||
Charge-offs | -98 | -73 | |||
Recoveries | 13 | 8 | [1] | ||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | -10 | [2] | |||
Balance at end of period | 175 | 364 | |||
Carrying amount charged-off for purchased credit impaired loans | |||||
Carrying value of finance receivables transferred from held for investment to held for sale | 825 | ||||
Consolidated VIEs | |||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | 72 | ||||
Balance at end of period | 76 | 72 | |||
Personal loans | |||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | 130 | 94 | |||
Provision for finance receivable losses | 55 | 47 | |||
Charge-offs | -61 | -44 | |||
Recoveries | 8 | 4 | [1] | ||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | 0 | [2] | |||
Balance at end of period | 132 | 101 | |||
SpringCastle Portfolio | |||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | 3 | 0 | |||
Provision for finance receivable losses | 27 | 0 | |||
Charge-offs | -30 | 0 | |||
Recoveries | 3 | 0 | [1] | ||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | 0 | [2] | |||
Balance at end of period | 3 | 0 | |||
Carrying amount charged-off for purchased credit impaired loans | |||||
Purchased credit impaired finance receivables | 7 | ||||
Real estate loans | |||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | 40 | 236 | |||
Provision for finance receivable losses | 4 | 58 | |||
Charge-offs | -6 | -28 | |||
Recoveries | 1 | 4 | [1] | ||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | -10 | [2] | |||
Balance at end of period | 39 | 260 | |||
Recoveries resulting from sale of previously charged-off finance receivables and settlement of claims | 2 | ||||
Carrying amount charged-off for purchased credit impaired loans | |||||
Carrying value of finance receivables transferred from held for investment to held for sale | 825 | ||||
Retail Sales Finance | |||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||
Balance at beginning of period | 1 | 2 | |||
Provision for finance receivable losses | 0 | 2 | |||
Charge-offs | -1 | -1 | |||
Recoveries | 1 | 0 | [1] | ||
Reduction in the carrying value of real estate loans transferred to finance receivables held for sale | 0 | [2] | |||
Balance at end of period | 1 | 3 | |||
Affiliates of Fortress or AIG | |||||
Carrying amount charged-off for purchased credit impaired loans | |||||
Purchased credit impaired finance receivables | $6 | [3] | |||
[1] | Recoveries during the three months ended March 31, 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. | ||||
[2] | During the first quarter of 2014, we reduced the carrying value of certain real estate loans to $825 million as a result of the transfer of these loans from finance receivables held for investment to finance receivables held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. | ||||
[3] | 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_Receivab3
Allowance for Finance Receivable Losses (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | $133 | $133 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 175 | 174 | 364 | 332 |
Individually evaluated for impairment (TDR finance receivables) | 37 | 36 | ||
Allowance for finance receivable losses | 175 | 174 | 364 | 332 |
Finance receivables: | ||||
Collectively evaluated for impairment | 5,906 | 5,945 | ||
Purchased credit impaired finance receivables | 6,387 | 6,452 | ||
TDR finance receivables | 142 | 137 | ||
Net finance receivables | 6,387 | 6,452 | ||
Personal loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 129 | 129 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 132 | 130 | 101 | 94 |
Individually evaluated for impairment (TDR finance receivables) | 3 | 1 | ||
Allowance for finance receivable losses | 132 | 130 | 101 | 94 |
Finance receivables: | ||||
Collectively evaluated for impairment | 3,856 | 3,778 | ||
Purchased credit impaired finance receivables | 3,882 | 3,800 | ||
TDR finance receivables | 26 | 22 | ||
Net finance receivables | 3,882 | 3,800 | ||
SpringCastle Portfolio | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 3 | 3 | 0 | 0 |
Individually evaluated for impairment (TDR finance receivables) | 3 | 3 | ||
Allowance for finance receivable losses | 3 | 3 | 0 | 0 |
Finance receivables: | ||||
Collectively evaluated for impairment | 1,548 | 1,629 | ||
Purchased credit impaired finance receivables | 1,868 | 1,979 | ||
TDR finance receivables | 11 | 10 | ||
Net finance receivables | 1,868 | 1,979 | ||
Real estate loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 3 | 3 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 39 | 40 | 260 | 236 |
Individually evaluated for impairment (TDR finance receivables) | 31 | 32 | ||
Allowance for finance receivable losses | 39 | 40 | 260 | 236 |
Finance receivables: | ||||
Collectively evaluated for impairment | 463 | 490 | ||
Purchased credit impaired finance receivables | 598 | 625 | ||
TDR finance receivables | 105 | 105 | ||
Net finance receivables | 598 | 625 | ||
Retail Sales Finance | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Collectively evaluated for impairment | 1 | 1 | ||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 1 | 1 | 3 | 2 |
Individually evaluated for impairment (TDR finance receivables) | 0 | 0 | ||
Allowance for finance receivable losses | 1 | 1 | 3 | 2 |
Finance receivables: | ||||
Collectively evaluated for impairment | 39 | 48 | ||
Purchased credit impaired finance receivables | 39 | 48 | ||
TDR finance receivables | 0 | 0 | ||
Net finance receivables | 39 | 48 | ||
Receivables Acquired with Deteriorated Credit Quality | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 5 | 5 | ||
Allowance for finance receivable losses | 5 | 5 | ||
Finance receivables: | ||||
Purchased credit impaired finance receivables | 339 | 370 | ||
Net finance receivables | 339 | 370 | ||
Receivables Acquired with Deteriorated Credit Quality | Personal loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Allowance for finance receivable losses | 0 | 0 | ||
Finance receivables: | ||||
Purchased credit impaired finance receivables | 0 | 0 | ||
Net finance receivables | 0 | 0 | ||
Receivables Acquired with Deteriorated Credit Quality | SpringCastle Portfolio | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Allowance for finance receivable losses | 0 | 0 | ||
Finance receivables: | ||||
Purchased credit impaired finance receivables | 309 | 340 | ||
Net finance receivables | 309 | 340 | ||
Receivables Acquired with Deteriorated Credit Quality | Real estate loans | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 5 | 5 | ||
Allowance for finance receivable losses | 5 | 5 | ||
Finance receivables: | ||||
Purchased credit impaired finance receivables | 30 | 30 | ||
Net finance receivables | 30 | 30 | ||
Receivables Acquired with Deteriorated Credit Quality | Retail Sales Finance | ||||
Allowance for finance receivable losses for finance receivables: | ||||
Acquired with deteriorated credit quality (purchased credit impaired finance receivables) | 0 | 0 | ||
Allowance for finance receivable losses | 0 | 0 | ||
Finance receivables: | ||||
Purchased credit impaired finance receivables | 0 | 0 | ||
Net finance receivables | $0 | $0 |
Finance_Receivables_Held_for_S1
Finance Receivables Held for Sale (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 01, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Receivables Held-for-sale [Abstract] | |||||
Loans receivable held for sale | $199 | $205 | |||
Finance receivables held for sale originated as held for investment | 4 | 4 | |||
Carrying value of finance receivables transferred from held for investment to held for sale | 825 | ||||
Amount of loans sold | 815 | ||||
Net gain on sales of real estate loans and related trust assets | $55 | $0 | $55 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | $646 | [1] | $582 | [1] |
Unrealized Gains | 18 | [1] | 20 | [1] |
Unrealized Losses | -1 | [1] | -2 | [1] |
Fair Value | 663 | [1] | 600 | [1] |
Interest in a limited partnership | 1 | |||
Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 637 | 574 | ||
Unrealized Gains | 18 | 20 | ||
Unrealized Losses | -1 | -2 | ||
Fair Value | 654 | 592 | ||
U.S. government and government sponsored entities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 30 | 61 | ||
Unrealized Gains | 2 | 3 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 32 | 64 | ||
Obligations of states, municipalities, and political subdivisions | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 100 | 99 | ||
Unrealized Gains | 2 | 3 | ||
Unrealized Losses | -1 | 0 | ||
Fair Value | 101 | 102 | ||
Certificates of deposit and commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 1 | [2] | 1 | [2] |
Unrealized Gains | 0 | [2] | 0 | [2] |
Unrealized Losses | 0 | [2] | 0 | [2] |
Fair Value | 1 | [2] | 1 | [2] |
Certificates of deposit pledged as collateral | 1 | |||
Corporate debt | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 291 | 256 | ||
Unrealized Gains | 13 | 12 | ||
Unrealized Losses | 0 | -1 | ||
Fair Value | 304 | 267 | ||
Residential mortgage-backed securities (“RMBSâ€) | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 115 | 71 | ||
Unrealized Gains | 1 | 2 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 116 | 73 | ||
Commercial mortgage-backed securities (“CMBSâ€) | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 42 | 25 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | -1 | ||
Fair Value | 42 | 24 | ||
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 58 | 61 | ||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | 0 | 0 | ||
Fair Value | 58 | 61 | ||
Preferred stock | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 8 | 7 | ||
Unrealized Gains | 0 | |||
Unrealized Losses | 0 | |||
Fair Value | 8 | 7 | ||
Other long-term investments | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cost/ Amortized Cost | 1 | [1] | 1 | |
Unrealized Gains | 0 | [1] | ||
Unrealized Losses | 0 | [1] | ||
Fair Value | $1 | $1 | ||
[1] | Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at March 31, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost. | |||
[2] | Includes certificates of deposit totaling $1 million pledged as collateral, primarily to support bank lines of credit at March 31, 2015 and December 31, 2014. |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Fair Value | ||||
Less Than 12 Months | $136 | $140 | ||
12 Months or Longer | 16 | 10 | ||
Total | 152 | 150 | ||
Unrealized Losses | ||||
Less Than 12 Months | -1 | [1] | -2 | [1] |
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | -1 | -2 | ||
Bonds | ||||
Fair Value | ||||
Less Than 12 Months | 130 | 134 | ||
12 Months or Longer | 16 | 10 | ||
Total | 146 | 144 | ||
Unrealized Losses | ||||
Less Than 12 Months | -1 | [1] | -2 | [1] |
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | -1 | -2 | ||
Obligations of states, municipalities, and political subdivisions | ||||
Fair Value | ||||
Less Than 12 Months | 19 | 27 | ||
12 Months or Longer | 6 | 1 | ||
Total | 25 | 28 | ||
Unrealized Losses | ||||
Less Than 12 Months | -1 | [1] | 0 | [1] |
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | -1 | 0 | ||
U.S. government and government sponsored entities | ||||
Fair Value | ||||
Less Than 12 Months | 0 | |||
12 Months or Longer | 1 | |||
Total | 1 | |||
Unrealized Losses | ||||
Less Than 12 Months | 0 | [1] | ||
12 Months or Longer | 0 | [1] | ||
Total | 0 | |||
Corporate debt | ||||
Fair Value | ||||
Less Than 12 Months | 30 | 36 | ||
12 Months or Longer | 5 | 6 | ||
Total | 35 | 42 | ||
Unrealized Losses | ||||
Less Than 12 Months | -1 | [1] | ||
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | 0 | -1 | ||
Residential mortgage-backed securities (“RMBSâ€) | ||||
Fair Value | ||||
Less Than 12 Months | 43 | 9 | ||
Total | 43 | 9 | ||
Unrealized Losses | ||||
Less Than 12 Months | 0 | [1] | ||
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | 0 | 0 | ||
Commercial mortgage-backed securities (“CMBSâ€) | ||||
Fair Value | ||||
Less Than 12 Months | 17 | 16 | ||
12 Months or Longer | 5 | 2 | ||
Total | 22 | 18 | ||
Unrealized Losses | ||||
Less Than 12 Months | -1 | [1] | ||
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | 0 | -1 | ||
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Fair Value | ||||
Less Than 12 Months | 21 | 46 | ||
Total | 21 | 46 | ||
Unrealized Losses | ||||
Less Than 12 Months | 0 | [1] | ||
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | 0 | 0 | ||
Preferred stock | ||||
Fair Value | ||||
Less Than 12 Months | 6 | 6 | ||
Total | 6 | 6 | ||
Unrealized Losses | ||||
Less Than 12 Months | 0 | [1] | ||
12 Months or Longer | 0 | [1] | 0 | [1] |
Total | $0 | $0 | ||
[1] | Unrealized losses on certain available-for-sale securities for the three months ended March 31, 2015 and 2014 were less than $1 million and, therefore, are not quantified in the table above. |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Available-for-sale securities sold or redeemed | ||
Fair value | $74 | $51 |
Realized gains | 7 | 2 |
Realized losses | -1 | 0 |
Net realized gains | $6 | $2 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Fair Value | |
Due in 1 year or less | $39 |
Due after 1 year through 5 years | 195 |
Due after 5 years through 10 years | 112 |
Due after 10 years | 92 |
Mortgage-backed, asset-backed, and collateralized securities | 216 |
Total | 654 |
Amortized Cost | |
Due in 1 year or less | 39 |
Due after 1 year through 5 years | 191 |
Due after 5 years through 10 years | 104 |
Due after 10 years | 88 |
Mortgage-backed, asset-backed, and collateralized securities | 215 |
Total | $637 |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Trading securities | |||
Trading securities | $2,072 | $2,321 | |
Net unrealized and realized gains (losses) on trading securities | |||
Net unrealized gains on trading securities held at period end | 3 | 0 | |
Net realized gains on trading securities sold or redeemed | 0 | 0 | |
Total | 3 | 0 | |
U.S. government and government sponsored entities | |||
Trading securities | |||
Trading securities | 1,079 | 302 | |
Obligations of states, municipalities, and political subdivisions | |||
Trading securities | |||
Trading securities | 7 | 14 | |
Certificates of deposit and commercial paper | |||
Trading securities | |||
Trading securities | 0 | 238 | |
Non-U.S. government and government sponsored entities | |||
Trading securities | |||
Trading securities | 0 | 20 | |
Corporate debt | |||
Trading securities | |||
Trading securities | 529 | 1,056 | |
Residential mortgage-backed securities (“RMBSâ€) | |||
Trading securities | |||
Trading securities | 15 | 35 | |
Commercial mortgage-backed securities (“CMBSâ€) | |||
Trading securities | |||
Trading securities | 120 | 149 | |
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | |||
Trading securities | |||
Trading securities | $322 | $507 |
Investment_Securities_Narrativ
Investment Securities Narrative (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities with other-than-temporary impairments recognized in accumulated other comprehensive income or loss | $0 | $0 | ||
Available-for-sale securities | 663,000,000 | [1] | 600,000,000 | [1] |
Insurance Regulatory Authorities Bonds on Deposit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available-for-sale securities | $12,000,000 | $12,000,000 | ||
[1] | Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at March 31, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost. |
Transactions_with_Affiliates_o1
Transactions with Affiliates of Fortress or AIG (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Aug. 01, 2014 | Dec. 31, 2014 | Mar. 06, 2014 |
Transactions with Affiliates of Fortress or AIG | |||||
Insurance Coverage Premium Expense | $1 | $1 | |||
Price agreed on for sale of interest in securitized assets | 39 | ||||
Spring Castle Acquisition | NRZ Consumer LLC | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Ownership Percentage | 30.00% | ||||
Affiliated Entity | Logan Circle Partners L.P. | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Costs and fees incurred for the investment management services | 1 | 0.2 | |||
Affiliated Entity | Merit | Subsidiaries of American International Group Inc | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Reserves for reinsurance agreements | 44 | 44 | |||
Affiliated Entity | 2009-1 Trust | MLPFS | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Percentage of interest concurrently agreed to be sold by counterparty to related party | 75.00% | ||||
Affiliated Entity | Servicing Agreement | Nationstar Mortgage LLC | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Accounts Receivable, Related Parties | 1 | 1 | |||
Nationstar Mortgage LLC | Owners | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Subservicing fees | 1 | 2 | |||
Certificates of deposit and commercial paper | |||||
Transactions with Affiliates of Fortress or AIG | |||||
Certificates of deposit pledged as collateral | $1 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jul. 10, 2014 | Jan. 10, 2014 | Jul. 10, 2013 | Jan. 31, 2014 | Jun. 07, 2014 |
Related Party Transactions | ||||||||
Note receivable from SFI | $263 | $251 | ||||||
Receivables from parent and affiliates | 12 | 12 | ||||||
Percentage of allocated cost of service | 100.00% | |||||||
SFI | ||||||||
Related Party Transactions | ||||||||
Note receivable from SFI | 251 | |||||||
Capital contributions received to satisfy interest payments | 10.5 | 10.5 | 10.5 | |||||
Affiliated Entity | ||||||||
Related Party Transactions | ||||||||
Payables to parent and affiliates | 28 | 43 | ||||||
Payable due to SFI | 47 | 48 | ||||||
Affiliated Entity | Spring Castle Holdings LLC [Member] | Services Agreement | ||||||||
Related Party Transactions | ||||||||
Payables to parent and affiliates | 5 | 10 | ||||||
Affiliated Entity | Springleaf Finance Corporation | ||||||||
Related Party Transactions | ||||||||
Payable due to SFI | 23 | 17 | ||||||
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Services Agreement | ||||||||
Related Party Transactions | ||||||||
Fees payable | 21 | 19 | ||||||
Percentage of allocated cost of service | 100.00% | |||||||
Service fee expenses | 54 | 45 | ||||||
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | License Agreement | ||||||||
Related Party Transactions | ||||||||
Margin on the systems and software (as a percent) | 7.00% | |||||||
Percentage of actual cost incurred | 100.00% | |||||||
License fees | 1 | 1 | ||||||
Affiliated Entity | Spring leaf General Services Corporation | Springleaf Finance Management Corporation | Building Lease | ||||||||
Related Party Transactions | ||||||||
Number of buildings leased | 6 | |||||||
Annual rental fees | 4 | |||||||
Rent charged | 1 | 1 | ||||||
Affiliated Entity | SFI | ||||||||
Related Party Transactions | ||||||||
Note receivable from SFI | 263 | |||||||
Interest receivable on note | 1 | |||||||
Interest revenue on note receivable | 2 | 1 | ||||||
Capital contributions received to satisfy interest payments | 11 | |||||||
Affiliated Entity | Springleaf Finance Management Corporation | ||||||||
Related Party Transactions | ||||||||
Payable due to SFI | 1 | 0 | ||||||
Affiliated Entity | Intercompany Demand Note Due 31 December 2022 | SFI | SAC | ||||||||
Related Party Transactions | ||||||||
Interest rates (as a percent) | 8.00% | |||||||
Face amount of each issuance of debt | 1 | 1 | 2.5 | |||||
Majority Shareholder | ||||||||
Related Party Transactions | ||||||||
Receivables from parent and affiliates | 40 | 54 | ||||||
Subsidiary of Common Parent | Second Street Funding Corporation | ||||||||
Related Party Transactions | ||||||||
Current tax receivable | $4 | $4 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 30, 2013 | Dec. 30, 2013 | Dec. 31, 2014 | Dec. 03, 2014 | |
Principal maturities of long-term debt by type of debt | ||||||
Second quarter 2015 | $7 | |||||
Third quarter 2015 | 24 | |||||
Fourth quarter 2015 | 750 | |||||
First quarter 2016 | 0 | |||||
Remainder of 2016 | 375 | |||||
2017 | 1,902 | |||||
2018 | 0 | |||||
2019 | 700 | |||||
2020-2067 | 1,600 | |||||
Securitizations | 4,873 | |||||
Total principal maturities | 10,231 | |||||
Long-term debt | 9,635 | 8,385 | ||||
Retail Notes | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Contractual interest rate, minimum (as a percent) | 6.50% | [1] | ||||
Contractual interest rate, maximum (as a percent) | 7.50% | [1] | ||||
Second quarter 2015 | 7 | |||||
Third quarter 2015 | 24 | |||||
Fourth quarter 2015 | 0 | |||||
Remainder of 2016 | 0 | |||||
2017 | 0 | |||||
Total principal maturities | 31 | |||||
Long-term debt | 30 | [2] | ||||
Medium Term Notes | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Contractual interest rate, minimum (as a percent) | 5.25% | [1] | ||||
Contractual interest rate, maximum (as a percent) | 8.25% | [1] | ||||
Fourth quarter 2015 | 750 | |||||
First quarter 2016 | 0 | |||||
Remainder of 2016 | 375 | |||||
2017 | 1,902 | |||||
2018 | 0 | |||||
2019 | 700 | |||||
2020-2067 | 1,250 | |||||
Total principal maturities | 4,977 | |||||
Long-term debt | 4,555 | [2] | ||||
Securitizations | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Contractual interest rate, minimum (as a percent) | 2.41% | [1] | ||||
Contractual interest rate, maximum (as a percent) | 6.82% | [1] | ||||
Securitizations | 4,873 | [3] | ||||
Total principal maturities | 4,873 | |||||
Long-term debt | 4,878 | [2] | ||||
Junior Subordinated Debt | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Interest rates (as a percent) | 6.00% | [1] | ||||
2020-2067 | 350 | |||||
Total principal maturities | 350 | |||||
Long-term debt | 172 | [2] | ||||
Guaranty Agreements | Junior Subordinated Debt | Springleaf Holding Inc. | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Face amount of each issuance of debt | 350 | 350 | 350 | |||
Term of debt | 60 years | 60 years | ||||
Guaranty Agreements | Senior debt | Parent Company | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Interest rates (as a percent) | 5.25% | |||||
Face amount of each issuance of debt | 700 | |||||
Guaranty Agreements | Senior debt | Springleaf Holding Inc. | ||||||
Principal maturities of long-term debt by type of debt | ||||||
Face amount of each issuance of debt | 5,000 | 5,200 | 5,200 | |||
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 | ||||||
Face amount of each issuance of debt | $3,100 | |||||
[1] | The interest rates shown are the range of contractual rates in effect at March 31, 2015. | |||||
[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] | Securitizations are not included in above maturities by period due to their variable monthly repayments. See Note 11 for further information on our long-term debt associated with securitizations. |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 16, 2015 | Feb. 26, 2015 | Dec. 31, 2013 | Mar. 24, 2014 | Mar. 09, 2015 | |
Assets | ||||||||
Purchased credit impaired finance receivables | $6,387,000,000 | $6,452,000,000 | ||||||
Allowance for finance receivable losses | 175,000,000 | 364,000,000 | 174,000,000 | 332,000,000 | ||||
Restricted cash and cash equivalents | 344,000,000 | 218,000,000 | ||||||
Liabilities | ||||||||
Long-term debt | 9,635,000,000 | 8,385,000,000 | ||||||
Variable Interest Entities, other information | ||||||||
Long-term Debt, Gross | 10,231,000,000 | |||||||
Interest expense | 158,000,000 | 182,000,000 | ||||||
Real estate loans sold, reserve for sales recourse obligations | 23,000,000 | 22,000,000 | ||||||
Personal loans | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 3,882,000,000 | 3,800,000,000 | ||||||
Allowance for finance receivable losses | 132,000,000 | 101,000,000 | 130,000,000 | 94,000,000 | ||||
SpringCastle Portfolio | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 1,868,000,000 | 1,979,000,000 | ||||||
Allowance for finance receivable losses | 3,000,000 | 0 | 3,000,000 | 0 | ||||
Real Estate Loans | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 598,000,000 | 625,000,000 | ||||||
Allowance for finance receivable losses | 39,000,000 | 260,000,000 | 40,000,000 | 236,000,000 | ||||
Mortgage Loan Securitizations | Real Estate Loans | ||||||||
Variable Interest Entities, other information | ||||||||
Amount of loans sold | 5,100,000,000 | |||||||
Real estate loans sold, reserve for sales recourse obligations | 6,000,000 | 6,000,000 | ||||||
Consolidated VIEs | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 3,600,000,000 | |||||||
Allowance for finance receivable losses | 76,000,000 | 72,000,000 | ||||||
Restricted cash and cash equivalents | 330,000,000 | 210,000,000 | ||||||
Liabilities | ||||||||
Long-term debt | 4,878,000,000 | 3,644,000,000 | ||||||
Variable Interest Entities, other information | ||||||||
Interest expense | 38,000,000 | 43,000,000 | ||||||
Consolidated VIEs | Consumer Loan Securitizations | Sumner Brook Funding Trust 2013 VFN1 | ||||||||
Variable Interest Entities, other information | ||||||||
Funding period | 3 years | 2 years | ||||||
Maximum amount of notes that may be issued under private securitization facility | 350,000,000 | |||||||
Amounts funded at closing | 0 | |||||||
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 2,838,000,000 | 1,853,000,000 | ||||||
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Springleaf Funding Trust 2015-A | ||||||||
Variable Interest Entities, other information | ||||||||
Amount of notes sold under private securitization | 1,200,000,000 | |||||||
Weighted average yield (as a percent) | 3.58% | |||||||
Proceeds from notes sold under securitization transactions | 1,200,000,000 | |||||||
Interest reserve requirement on notes sold under securitization | 12,000,000 | |||||||
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Whitford Brook 2014-VFN1 Securitization | ||||||||
Variable Interest Entities, other information | ||||||||
Required minimum balance | 100,000,000 | |||||||
Consolidated VIEs | Mortgage Loan Securitizations | SpringCastle Portfolio | ||||||||
Assets | ||||||||
Purchased credit impaired finance receivables | 1,868,000,000 | 1,979,000,000 | ||||||
SpringCastle 2014-A Notes, Class C | SAC | ||||||||
Variable Interest Entities, other information | ||||||||
Long-term Debt, Gross | 232,000,000 | |||||||
SpringCastle 2014-A Notes, Class D | SAC | ||||||||
Variable Interest Entities, other information | ||||||||
Long-term Debt, Gross | $131,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated other comprehensive income (loss) | ||||
Balance at beginning of period | $3 | $28 | ||
Other comprehensive income before reclassifications | 4 | 6 | ||
Reclassification adjustments from accumulated other comprehensive income | -4 | -1 | ||
Balance at end of period | 3 | 33 | ||
Unrealized Gains (Losses) Investment Securities | ||||
Accumulated other comprehensive income (loss) | ||||
Balance at beginning of period | 12 | 4 | ||
Other comprehensive income before reclassifications | 3 | 6 | ||
Reclassification adjustments from accumulated other comprehensive income | -4 | -1 | ||
Balance at end of period | 11 | 9 | ||
Retirement Plan Liabilities Adjustments | ||||
Accumulated other comprehensive income (loss) | ||||
Balance at beginning of period | -13 | 20 | ||
Balance at end of period | -13 | 20 | -13 | 20 |
Foreign Currency Translation Adjustments | ||||
Accumulated other comprehensive income (loss) | ||||
Balance at beginning of period | 4 | 4 | ||
Other comprehensive income before reclassifications | 1 | 0 | ||
Balance at end of period | $5 | $4 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification adjustments from accumulated other comprehensive income | ||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | $17 | $10 |
Income tax effect | -8 | -24 |
Net income | 34 | 38 |
Unrealized Gains (Losses) Investment Securities | Reclassification adjustments | ||
Reclassification adjustments from accumulated other comprehensive income | ||
Reclassification from accumulated other comprehensive income to investment revenues, before taxes | 6 | 2 |
Income tax effect | -2 | -1 |
Net income | $4 | $1 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Net deferred tax liabilities | $141 | $156 | |
Effective income tax rate (as a percent) | 19.30% | 38.70% |
Contingencies_Details
Contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
loan | loan | ||
request | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Real estate loans sold, reserve for sales recourse obligations | $23 | $22 | |
Finance receivables reserve for sales recourse obligations | 24 | ||
Financing receivable loans reaching defined delinquency limits repurchased under loan sales | 0 | 0 | |
Number of unresolved recourse requests | 0 | ||
Estimated PPI claims reserve | $13 | $14 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pension | ||
Components of net periodic benefit cost: | ||
Interest cost | $4 | $4 |
Expected return on assets | -5 | -4 |
Net periodic benefit cost | -1 | 0 |
Other Postretirement Benefit Plan | ||
Components of net periodic benefit cost: | ||
Net periodic benefit cost | $1 | $1 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Interest income | $402 | $402 | |
Interest expense | 158 | 182 | |
Provision for finance receivable losses | 86 | 107 | |
Net interest income (loss) after provision for finance receivable losses | 158 | 113 | |
Other revenues | 53 | 100 | |
Other expenses | 169 | 151 | |
Income before provision for income taxes | 42 | 62 | |
Income before provision for income taxes attributable to non-controlling interests | 31 | ||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 11 | ||
Assets | 12,489 | 12,007 | 11,126 |
Operating segments | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Interest income | 254 | 209 | |
Interest expense | 40 | 41 | |
Provision for finance receivable losses | 55 | 45 | |
Net interest income (loss) after provision for finance receivable losses | 159 | 123 | |
Other revenues | 51 | 49 | |
Other expenses | 140 | 123 | |
Income before provision for income taxes | 70 | 49 | |
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 70 | ||
Assets | 5,042 | 4,173 | |
Operating segments | Acquisitions and Servicing | |||
Segment Reporting Information [Line Items] | |||
Interest income | 125 | ||
Interest expense | 23 | ||
Provision for finance receivable losses | 27 | ||
Net interest income (loss) after provision for finance receivable losses | 75 | ||
Other revenues | 5 | ||
Other expenses | 16 | ||
Income before provision for income taxes | 64 | ||
Income before provision for income taxes attributable to non-controlling interests | 31 | ||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 33 | ||
Assets | 1,964 | ||
Operating segments | Real estate loans | |||
Segment Reporting Information [Line Items] | |||
Interest income | 18 | 152 | |
Interest expense | 60 | 110 | |
Provision for finance receivable losses | 2 | 61 | |
Net interest income (loss) after provision for finance receivable losses | -44 | -19 | |
Other revenues | 3 | -64 | |
Other expenses | 7 | 22 | |
Income before provision for income taxes | -48 | -105 | |
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | -48 | ||
Assets | 3,641 | 7,259 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 2 | 5 | |
Interest expense | 10 | 2 | |
Provision for finance receivable losses | 1 | ||
Net interest income (loss) after provision for finance receivable losses | -8 | 2 | |
Other revenues | 2 | 2 | |
Other expenses | 5 | 5 | |
Income before provision for income taxes | -11 | -1 | |
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | -11 | ||
Assets | 1,832 | 1,009 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | ||
Interest expense | -5 | ||
Net interest income (loss) after provision for finance receivable losses | 5 | ||
Other revenues | -5 | ||
Other expenses | 0 | ||
Income before provision for income taxes | 0 | ||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 0 | ||
Push-down Accounting Adjustments | |||
Segment Reporting Information [Line Items] | |||
Interest income | 3 | 36 | |
Interest expense | 30 | 29 | |
Provision for finance receivable losses | 2 | ||
Net interest income (loss) after provision for finance receivable losses | -29 | 7 | |
Other revenues | -3 | 113 | |
Other expenses | 1 | 1 | |
Income before provision for income taxes | -33 | 119 | |
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | -33 | ||
Assets | $10 | ($434) |
Segment_Information_Narrative_
Segment Information Narrative (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | 3 |
Other | |
Segment Reporting Information [Line Items] | |
Number of States with Legacy Operations where Branch Based Personal Lending Ceased | 14 |
Consumer and Insurance Segment | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | 2 |
Consumer and Insurance | |
Segment Reporting Information [Line Items] | |
Number of States in which Entity Operates | 27 |
Corporate Joint Venture | |
Segment Reporting Information [Line Items] | |
Ownership percentage in joint venture | 47.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets | ||
Investment securities | $2,736 | $2,922 |
Note receivable from parent | 263 | 251 |
Restricted cash and cash equivalents | 344 | 218 |
Other assets: | ||
Receivables from parent and affiliates | 12 | 12 |
Fair Value Measurements Using Level 1 | ||
Assets | ||
Cash and cash equivalents | 2,294 | 749 |
Restricted cash and cash equivalents | 344 | 218 |
Fair Value Measurements Using Level 2 | ||
Assets | ||
Investment securities | 2,730 | 2,913 |
Note receivable from parent | 263 | 251 |
Other assets: | ||
Receivables from parent and affiliates | 12 | 12 |
Receivables related to sales of real estate loans and related trust assets | 27 | 67 |
Liabilities | ||
Long-term debt | 10,390 | 9,182 |
Payables to parent and affiliates | 47 | 48 |
Fair Value Measurements Using Level 3 | ||
Assets | ||
Investment securities | 6 | 9 |
Net finance receivables, less allowance for finance receivable losses | 6,883 | 6,949 |
Finance receivables held for sale | 203 | 209 |
Other assets: | ||
Commercial mortgage loans | 67 | 78 |
Escrow advance receivable | 8 | 8 |
Total Fair Value | ||
Assets | ||
Cash and cash equivalents | 2,294 | 749 |
Investment securities | 2,736 | 2,922 |
Net finance receivables, less allowance for finance receivable losses | 6,883 | 6,949 |
Finance receivables held for sale | 203 | 209 |
Note receivable from parent | 263 | 251 |
Restricted cash and cash equivalents | 344 | 218 |
Other assets: | ||
Commercial mortgage loans | 67 | 78 |
Escrow advance receivable | 8 | 8 |
Receivables from parent and affiliates | 12 | 12 |
Receivables related to sales of real estate loans and related trust assets | 27 | 67 |
Liabilities | ||
Long-term debt | 10,390 | 9,182 |
Payables to parent and affiliates | 47 | 48 |
Total Carrying Value | ||
Assets | ||
Cash and cash equivalents | 2,294 | 749 |
Investment securities | 2,736 | 2,922 |
Net finance receivables, less allowance for finance receivable losses | 6,212 | 6,278 |
Finance receivables held for sale | 199 | 205 |
Note receivable from parent | 263 | 251 |
Restricted cash and cash equivalents | 344 | 218 |
Other assets: | ||
Commercial mortgage loans | 72 | 85 |
Escrow advance receivable | 8 | 8 |
Receivables from parent and affiliates | 12 | 12 |
Receivables related to sales of real estate loans and related trust assets | 36 | 79 |
Liabilities | ||
Long-term debt | 9,635 | 8,385 |
Payables to parent and affiliates | $47 | $48 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
Assets | ||||
Available-for-sale securities | $663,000,000 | [1] | $600,000,000 | [1] |
Trading securities | 2,072,000,000 | 2,321,000,000 | ||
Total investment securities | 2,736,000,000 | 2,922,000,000 | ||
Transfer from Level 1 Assets to Level 2 | 0 | |||
Transfer from Level 2 Assets to Level 1 | 0 | |||
Transfer from Level 1 Liabilities to Level 2 | 0 | |||
Transfers from Level 2 Liabilities to Level 1 | 0 | |||
U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 32,000,000 | 64,000,000 | ||
Trading securities | 1,079,000,000 | 302,000,000 | ||
Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,000,000 | 102,000,000 | ||
Trading securities | 7,000,000 | 14,000,000 | ||
Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 304,000,000 | 267,000,000 | ||
Trading securities | 529,000,000 | 1,056,000,000 | ||
Residential mortgage-backed securities (“RMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 116,000,000 | 73,000,000 | ||
Trading securities | 15,000,000 | 35,000,000 | ||
Commercial mortgage-backed securities (“CMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 42,000,000 | 24,000,000 | ||
Trading securities | 120,000,000 | 149,000,000 | ||
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Assets | ||||
Available-for-sale securities | 58,000,000 | 61,000,000 | ||
Trading securities | 322,000,000 | 507,000,000 | ||
Bonds | ||||
Assets | ||||
Available-for-sale securities | 654,000,000 | 592,000,000 | ||
Preferred stock | ||||
Assets | ||||
Available-for-sale securities | 8,000,000 | 7,000,000 | ||
Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | 1,000,000 | ||
Total Carried At Fair Value | ||||
Assets | ||||
Cash and cash equivalents | 2,294,000,000 | 749,000,000 | ||
Total investment securities | 2,736,000,000 | 2,922,000,000 | ||
Not carried at fair value | Common Stock | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | 1,000,000 | ||
Fair Value Measurements Using Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 2,294,000,000 | 749,000,000 | ||
Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Total investment securities | 2,730,000,000 | 2,913,000,000 | ||
Fair Value Measurements Using Level 3 | ||||
Assets | ||||
Total investment securities | 6,000,000 | 9,000,000 | ||
Recurring basis | Total Carried At Fair Value | ||||
Assets | ||||
Cash equivalents in mutual funds | 1,165,000,000 | 236,000,000 | ||
Cash and cash equivalents | 1,000,000 | 165,000,000 | ||
Available-for-sale securities | 663,000,000 | 600,000,000 | ||
Trading securities | 2,072,000,000 | 2,321,000,000 | ||
Total investment securities | 2,735,000,000 | 2,921,000,000 | ||
Restricted cash in mutual funds | 322,000,000 | 207,000,000 | ||
Total | 4,223,000,000 | 3,529,000,000 | ||
Recurring basis | Total Carried At Fair Value | U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 32,000,000 | 64,000,000 | ||
Trading securities | 1,079,000,000 | 302,000,000 | ||
Recurring basis | Total Carried At Fair Value | Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,000,000 | 102,000,000 | ||
Trading securities | 7,000,000 | 14,000,000 | ||
Recurring basis | Total Carried At Fair Value | Non-U.S. government and government sponsored entities | ||||
Assets | ||||
Trading securities | 20,000,000 | |||
Recurring basis | Total Carried At Fair Value | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 304,000,000 | 267,000,000 | ||
Trading securities | 529,000,000 | 1,056,000,000 | ||
Recurring basis | Total Carried At Fair Value | Residential mortgage-backed securities (“RMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 116,000,000 | 73,000,000 | ||
Trading securities | 15,000,000 | 35,000,000 | ||
Recurring basis | Total Carried At Fair Value | Commercial mortgage-backed securities (“CMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 42,000,000 | 24,000,000 | ||
Trading securities | 120,000,000 | 149,000,000 | ||
Recurring basis | Total Carried At Fair Value | Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Assets | ||||
Available-for-sale securities | 58,000,000 | 61,000,000 | ||
Trading securities | 322,000,000 | 507,000,000 | ||
Recurring basis | Total Carried At Fair Value | Bonds | ||||
Assets | ||||
Available-for-sale securities | 654,000,000 | 592,000,000 | ||
Recurring basis | Total Carried At Fair Value | Preferred stock | ||||
Assets | ||||
Available-for-sale securities | 8,000,000 | 7,000,000 | ||
Recurring basis | Total Carried At Fair Value | Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | 1,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 1 | ||||
Assets | ||||
Cash equivalents in mutual funds | 1,165,000,000 | 236,000,000 | ||
Total investment securities | 0 | |||
Restricted cash in mutual funds | 322,000,000 | 207,000,000 | ||
Total | 1,487,000,000 | 443,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Cash and cash equivalents | 1,000,000 | 165,000,000 | ||
Available-for-sale securities | 658,000,000 | 592,000,000 | ||
Trading securities | 2,072,000,000 | 2,321,000,000 | ||
Total investment securities | 2,730,000,000 | 2,913,000,000 | ||
Restricted cash in mutual funds | 0 | |||
Total | 2,731,000,000 | 3,078,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | U.S. government and government sponsored entities | ||||
Assets | ||||
Available-for-sale securities | 32,000,000 | 64,000,000 | ||
Trading securities | 1,079,000,000 | 302,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Obligations of states, municipalities, and political subdivisions | ||||
Assets | ||||
Available-for-sale securities | 101,000,000 | 102,000,000 | ||
Trading securities | 7,000,000 | 14,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Non-U.S. government and government sponsored entities | ||||
Assets | ||||
Trading securities | 20,000,000 | |||
Recurring basis | Fair Value Measurements Using Level 2 | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 300,000,000 | 263,000,000 | ||
Trading securities | 529,000,000 | 1,056,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Residential mortgage-backed securities (“RMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 116,000,000 | 73,000,000 | ||
Trading securities | 15,000,000 | 35,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Commercial mortgage-backed securities (“CMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 42,000,000 | 21,000,000 | ||
Trading securities | 120,000,000 | 149,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Assets | ||||
Available-for-sale securities | 58,000,000 | 61,000,000 | ||
Trading securities | 322,000,000 | 507,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Bonds | ||||
Assets | ||||
Available-for-sale securities | 650,000,000 | 585,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 2 | Preferred stock | ||||
Assets | ||||
Available-for-sale securities | 8,000,000 | 7,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | ||||
Assets | ||||
Available-for-sale securities | 5,000,000 | 8,000,000 | ||
Trading securities | 0 | 0 | ||
Total investment securities | 5,000,000 | 8,000,000 | ||
Restricted cash in mutual funds | 0 | |||
Total | 5,000,000 | 8,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Corporate debt | ||||
Assets | ||||
Available-for-sale securities | 4,000,000 | 4,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Residential mortgage-backed securities (“RMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 0 | 0 | ||
Trading securities | 0 | |||
Recurring basis | Fair Value Measurements Using Level 3 | Commercial mortgage-backed securities (“CMBSâ€) | ||||
Assets | ||||
Available-for-sale securities | 0 | 3,000,000 | ||
Trading securities | 0 | |||
Recurring basis | Fair Value Measurements Using Level 3 | Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | ||||
Assets | ||||
Trading securities | 0 | |||
Recurring basis | Fair Value Measurements Using Level 3 | Bonds | ||||
Assets | ||||
Available-for-sale securities | 4,000,000 | 7,000,000 | ||
Recurring basis | Fair Value Measurements Using Level 3 | Other long-term investments | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | [2] | 1,000,000 | [2] |
Cash Equivalents | Recurring basis | Total Carried At Fair Value | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | 1,000,000 | ||
Trading securities | 238,000,000 | |||
Cash Equivalents | Recurring basis | Fair Value Measurements Using Level 2 | ||||
Assets | ||||
Available-for-sale securities | 1,000,000 | 1,000,000 | ||
Trading securities | $238,000,000 | |||
[1] | Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at March 31, 2015 and December 31, 2014, which is classified as a restricted investment and carried at cost. | |||
[2] | Other long-term investments excludes an immaterial interest in a limited partnership that we account for using the equity method. |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Purchases Sales and Issuances | $0 | $0 | |||
Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | ||||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | ||||
Purchases, sales, issues, settlements | -4,000,000 | ||||
Balance at end of period | 11,000,000 | 15,000,000 | |||
Trading securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Transfers into Level 3 | 1,000,000 | ||||
Balance at end of period | 8,000,000 | 7,000,000 | |||
Investment securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | 0 | |||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 | |||
Purchases, sales, issues, settlements | 0 | -4,000,000 | |||
Transfers into Level 3 | 0 | 1,000,000 | |||
Transfers out of Level 3 | -3,000,000 | ||||
Balance at end of period | 5,000,000 | 19,000,000 | 8,000,000 | 22,000,000 | |
Bonds | Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | 0 | |||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 | |||
Purchases, sales, issues, settlements | 0 | -4,000,000 | |||
Transfers out of Level 3 | -3,000,000 | ||||
Balance at end of period | 4,000,000 | 10,000,000 | 7,000,000 | 14,000,000 | |
Corporate debt | Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | 0 | |||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 | |||
Purchases, sales, issues, settlements | 0 | -4,000,000 | [1] | ||
Balance at end of period | 4,000,000 | 9,000,000 | 4,000,000 | 13,000,000 | |
Commercial mortgage-backed securities (“CMBSâ€) | Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | ||||
Transfers out of Level 3 | -3,000,000 | ||||
Balance at end of period | 0 | 3,000,000 | |||
Residential mortgage-backed securities (“RMBSâ€) | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Transfers into Level 3 | 400,000 | ||||
Residential mortgage-backed securities (“RMBSâ€) | Trading securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Transfers into Level 3 | 1,000,000 | ||||
Transfers out of Level 3 | -1,200,000 | -1,200,000 | |||
Balance at end of period | 1,000,000 | ||||
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Purchases, sales, issues, settlements | 0 | [1] | |||
Transfers out of Level 3 | -800,000 | -800,000 | |||
Balance at end of period | 1,000,000 | 1,000,000 | |||
Collateralized debt obligations (“CDOâ€)/Asset-backed securities (“ABSâ€) | Trading securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | ||||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | ||||
Purchases, sales, issues, settlements | 0 | [1] | |||
Transfers into Level 3 | 0 | ||||
Transfers out of Level 3 | -800,000 | -800,000 | |||
Balance at end of period | 7,000,000 | 7,000,000 | |||
Other long-term investments | Available-for-sale securities | |||||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||
Net gains (losses) included in: Other revenues | 0 | ||||
Net gains (losses) included in: Other comprehensive income (loss) | 0 | 0 | |||
Purchases, sales, issues, settlements | 0 | 0 | [1] | ||
Balance at end of period | $1,000,000 | $1,000,000 | $1,000,000 | $1,000,000 | |
[1] | “Purchases, sales, issues, and settlements†column only consist of settlements for the three months ended March 31, 2014, as the purchases were immaterial. |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Level 3, Recurring, Discounted cash flows) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | |||
bond | ||||
Corporate debt | ||||
Unobservable Input | ||||
Yield (as a percent) | 1.04% | [1] | 1.05% | [1] |
Number of bonds | 1 | |||
Commercial mortgage-backed securities (“CMBSâ€) | ||||
Unobservable Input | ||||
Number of bonds | 1 | |||
[1] | Not applicable. |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (Non-recurring basis, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | $26 | $30 | |
Total impairment charges | 1 | 6 | |
Real estate owned | |||
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | 15 | 19 | |
Impairment charges recorded on assets measured at fair value | 1 | 6 | |
Commercial mortgage loans | |||
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | 11 | 11 | |
Impairment charges recorded on assets measured at fair value | 0 | 0 | |
Level 3 | |||
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | 26 | 30 | |
Level 3 | Real estate owned | |||
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | 15 | 19 | |
Level 3 | Commercial mortgage loans | |||
Assets measured at fair value on a non-recurring basis | |||
Assets at fair value | $11 | $11 |
Subsequent_Events_Details
Subsequent Events (Details) (Consolidated VIEs, Consumer Loan Securitizations, Personal loans, Subsequent Event, Springleaf Funding Trust 2015 B, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 08, 2015 | Apr. 07, 2015 |
Consolidated VIEs | Consumer Loan Securitizations | Personal loans | Subsequent Event | Springleaf Funding Trust 2015 B | ||
Subsequent events | ||
Amount of notes sold under private securitization | $314 | |
Weighted average yield (as a percent) | 3.84% | |
Proceeds from Accounts Receivable Securitization | 314 | |
Amount for Interest Reserve Requirement on Notes Sold under Securitization Transaction | $3 |