Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Feb. 14, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | SPRINGLEAF FINANCE CORP | |
Entity Central Index Key | 25,598 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 240 | $ 321 |
Investment securities | 582 | 604 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated variable interest entities (“VIEs”) of $2.9 billion in 2016 and $3.6 billion in 2015) | 4,804 | 4,300 |
SpringCastle Portfolio (includes loans of consolidated VIEs of $1.7 billion in 2015) | 0 | 1,703 |
Real estate loans | 144 | 538 |
Retail sales finance | 11 | 23 |
Net finance receivables | 4,959 | 6,564 |
Unearned insurance premium and claim reserves | (212) | (250) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $94 million in 2016 and $128 million in 2015) | (204) | (224) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 4,543 | 6,090 |
Finance receivables held for sale (includes finance receivables held for sale of consolidated VIEs of $435 million in 2015) | 153 | 793 |
Notes receivable from parent and affiliates | 3,723 | 3,804 |
Restricted cash and cash equivalents (includes restricted cash and cash equivalents of consolidated VIEs of $211 million in 2016 and $282 million in 2015) | 227 | 295 |
Other assets | 251 | 281 |
Total assets | 9,719 | 12,188 |
Liabilities and Shareholder’s Equity | ||
Long-term debt (includes debt of consolidated VIEs of $2.7 billion in 2016 and $5.5 billion in 2015) | 6,837 | 9,582 |
Insurance claims and policyholder liabilities | 248 | 230 |
Deferred and accrued taxes | 106 | 128 |
Other liabilities (includes other liabilities of consolidated VIEs of $5 million in 2016 and $7 million in 2015) | 185 | 216 |
Total liabilities | 7,376 | 10,156 |
Commitments and contingent liabilities (Note 19) | ||
Shareholder’s equity: | ||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 and 10,160,020 shares issued and outstanding at December 31, 2016 and 2015, respectively | 5 | 5 |
Additional paid-in capital | 799 | 789 |
Accumulated other comprehensive loss | (7) | (24) |
Retained earnings | 1,546 | 1,341 |
Springleaf Finance Corporation shareholder’s equity | 2,343 | 2,111 |
Non-controlling interests | 0 | (79) |
Total shareholder’s equity | 2,343 | 2,032 |
Total liabilities and shareholder’s equity | $ 9,719 | $ 12,188 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Personal loans of consolidated VIEs | $ 4,804 | $ 4,300 |
SpringCastle Portfolio | 0 | 1,703 |
Allowance for finance receivable losses | 204 | 224 |
Finance receivables held for sale | 153 | 793 |
Restricted cash and cash equivalents | 227 | 295 |
Long-term debt | 6,837 | 9,582 |
Other Liabilities | $ 185 | $ 216 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 10,160,021 | 10,160,020 |
Common stock, shares outstanding | 10,160,021 | 10,160,020 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 94 | $ 128 |
Finance receivables held for sale | 435 | |
Restricted cash and cash equivalents | 211 | 282 |
Long-term debt | 2,675 | 5,513 |
Other Liabilities | 5 | 7 |
Personal Loans | ||
Allowance for finance receivable losses | 184 | 173 |
Finance receivables held for sale | 617 | |
Personal Loans | Consolidated VIEs | ||
Personal loans of consolidated VIEs | 2,943 | 3,621 |
SpringCastle Portfolio | ||
Allowance for finance receivable losses | $ 0 | 4 |
SpringCastle Portfolio | Consolidated VIEs | ||
SpringCastle Portfolio | $ 1,703 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Finance charges | $ 1,276 | $ 1,597 | $ 1,564 |
Finance receivables held for sale originated as held for investment | 74 | 60 | 61 |
Total interest income | 1,350 | 1,657 | 1,625 |
Interest expense | 556 | 667 | 683 |
Net interest income | 794 | 990 | 942 |
Provision for finance receivable losses | 329 | 339 | 352 |
Net interest income after provision for finance receivable losses | 465 | 651 | 590 |
Other revenues: | |||
Insurance | 160 | 158 | 166 |
Investment | 31 | 49 | 39 |
Interest income on notes receivable from parent and affiliates | 214 | 42 | 5 |
Net loss on repurchases and repayments of debt | (17) | 0 | (66) |
Net gain on sale of SpringCastle interests | 167 | 0 | 0 |
Net gain on sales of personal and real estate loans and related trust assets | 18 | 0 | 626 |
Other | 1 | (6) | (25) |
Total other revenues | 574 | 243 | 745 |
Operating expenses: | |||
Salaries and benefits | 347 | 364 | 321 |
Other operating expenses | 291 | 299 | 261 |
Insurance policy benefits and claims | 55 | 72 | 75 |
Total other expenses | 693 | 735 | 657 |
Income before provision for income taxes | 346 | 159 | 678 |
Provision for income taxes | 113 | 18 | 233 |
Net income | 233 | 141 | 445 |
Net income attributable to non-controlling interests | 28 | 127 | 48 |
Net income attributable to Springleaf Finance Corporation | $ 205 | $ 14 | $ 397 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 233 | $ 141 | $ 445 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 17 | (17) | 20 |
Retirement plan liabilities adjustments | 22 | (9) | (50) |
Income tax effect: | |||
Net unrealized (gains) losses on non-credit impaired available-for-sale securities | (6) | 5 | (7) |
Retirement plan liabilities adjustments | (7) | 3 | 17 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | 26 | (18) | (20) |
Reclassification adjustments included in net income: | |||
Net realized gains on available-for-sale securities | (8) | (14) | (8) |
Net realized gain on foreign currency translation adjustments | (4) | 0 | 0 |
Income tax effect: | |||
Net realized gains on available-for-sale securities | 3 | 5 | 3 |
Reclassification adjustments included in net income, net of tax | (9) | (9) | (5) |
Other comprehensive income (loss), net of tax | 17 | (27) | (25) |
Comprehensive income | 250 | 114 | 420 |
Comprehensive income attributable to non-controlling interests | 28 | 127 | 48 |
Comprehensive income (loss) attributable to Springleaf Finance Corporation | $ 222 | $ (13) | $ 372 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Non-controlling Interests | Springleaf Finance Corporation Shareholder’s Equity | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Additional Paid-in Capital | Common Stock |
Balance at beginning of period at Dec. 31, 2013 | $ 1,385 | $ 1,385 | $ 930 | $ 28 | $ 422 | $ 5 | |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 22 | 22 | 22 | ||||
Capital contribution of capital stock of Springleaf Acquisitions Corporation | 776 | $ 450 | 326 | 326 | |||
Share-based compensation expense, net of forfeitures | 1 | 1 | 1 | ||||
Distributions declared to joint venture partners | (627) | (627) | |||||
Other comprehensive income (loss) | (25) | (25) | (25) | ||||
Net income | 445 | 48 | 397 | 397 | |||
Balance at end of period at Dec. 31, 2014 | 1,977 | (129) | 2,106 | 1,327 | 3 | 771 | 5 |
Common shares issued and outstanding | |||||||
Non-cash incentive compensation from Initial Stockholder | 15 | 15 | 15 | ||||
Share-based compensation expense, net of forfeitures | 2 | 2 | 2 | ||||
Excess tax benefit from share-based compensation | 1 | 1 | 1 | ||||
Distributions declared to joint venture partners | (77) | (77) | |||||
Other comprehensive income (loss) | (27) | (27) | (27) | ||||
Net income | 141 | 127 | 14 | 14 | |||
Balance at end of period at Dec. 31, 2015 | 2,032 | (79) | 2,111 | 1,341 | (24) | 789 | 5 |
Common shares issued and outstanding | |||||||
Capital contributions from parent | 10 | 10 | 10 | ||||
Share-based compensation expense, net of forfeitures | 1 | 1 | 1 | ||||
Withholding tax on vested restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”) | (1) | (1) | (1) | ||||
Distributions declared to joint venture partners | (18) | (18) | |||||
Sale of equity interests in SpringCastle joint venture | 69 | 69 | |||||
Other comprehensive income (loss) | 17 | 0 | 17 | 0 | 17 | ||
Net income | 233 | 28 | 205 | 205 | |||
Balance at end of period at Dec. 31, 2016 | $ 2,343 | $ 0 | $ 2,343 | $ 1,546 | $ (7) | $ 799 | $ 5 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 233 | $ 141 | $ 445 |
Reconciling adjustments: | |||
Provision for finance receivable losses | 329 | 339 | 352 |
Depreciation and amortization | 144 | 92 | 112 |
Deferred income tax benefit | (83) | (50) | (12) |
Non-cash incentive compensation from Initial Stockholder | 0 | 15 | 0 |
Net gain on liquidation of United Kingdom subsidiary | (4) | 0 | 0 |
Net gain on sales of personal and real estate loans and related trust assets | (18) | (626) | |
Net loss on repurchases and repayments of debt | 17 | 0 | 66 |
Share-based compensation expense, net of forfeitures | 1 | 2 | 1 |
Net gain on sale of SpringCastle interests | (167) | 0 | 0 |
Other | 6 | (3) | 16 |
Cash flows due to changes in: | |||
Other assets and other liabilities | (37) | (54) | (9) |
Insurance claims and policyholder liabilities | (19) | 34 | 51 |
Taxes receivable and payable | 56 | 111 | (127) |
Accrued interest and finance charges | 14 | (23) | (39) |
Restricted cash and cash equivalents not reinvested | 4 | 0 | 5 |
Other, net | 2 | (1) | 1 |
Net cash provided by operating activities | 478 | 603 | 236 |
Cash flows from investing activities | |||
Net principal collections (originations) of finance receivables held for investment and held for sale | (557) | (799) | (88) |
Proceeds on sales of finance receivables held for sale originated as held for investment | 930 | 78 | 3,789 |
Proceeds from sale of SpringCastle interests | 101 | 0 | 0 |
Cash advances on intercompany notes receivable | (1,042) | (3,720) | (128) |
Proceeds from repayments of principal and assignment of intercompany notes receivable | 1,023 | 189 | 44 |
Available-for-sale securities purchased | (353) | (476) | (348) |
Trading and other securities purchased | (10) | (1,474) | (2,930) |
Available-for-sale securities called, sold, and matured | 380 | 470 | 269 |
Trading and other securities called, sold, and matured | 20 | 3,779 | 646 |
Change in restricted cash and cash equivalents | (10) | (72) | 93 |
Proceeds from sale of real estate owned | 8 | 14 | 58 |
Other, net | 26 | (12) | 0 |
Net cash provided by (used for) investing activities | 516 | (2,023) | 1,405 |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt, net of commissions | 3,854 | 3,028 | 3,557 |
Proceeds from intercompany note payable | 670 | 0 | 0 |
Repayments of long-term debt | (4,920) | (1,960) | (4,218) |
Distributions to joint venture partners | (18) | (77) | (627) |
Payments on note payable to affiliate | (670) | 0 | 0 |
Excess tax benefit from share-based compensation | 0 | 1 | 0 |
Withholding tax on vested RSUs and PRSUs | (1) | 0 | 0 |
Capital contributions from parent | 10 | 0 | 22 |
Net cash provided by (used for) financing activities | (1,075) | 992 | (1,266) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | (1) |
Net change in cash and cash equivalents | (81) | (428) | 374 |
Cash and cash equivalents at beginning of period | 321 | 749 | 375 |
Cash and cash equivalents at end of period | 240 | 321 | 749 |
Supplemental cash flow information | |||
Interest paid | (451) | (511) | (504) |
Income taxes received (paid) | (140) | 45 | (369) |
Supplemental non-cash activities | |||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 1,945 | 617 | 6,986 |
Increase in finance receivables held for investment financed with intercompany payable | 89 | 0 | 0 |
Transfer of finance receivables to real estate owned | 8 | 11 | 49 |
Net unsettled investment security purchases | 0 | 0 | (7) |
Springleaf Finance, Inc. contribution of consolidated assets from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation | 0 | 0 | 2,446 |
Springleaf Finance, Inc. contribution of consolidated liabilities from Springleaf Acquisition Corporation’s capital stock to Springleaf Finance Corporation | $ 0 | $ 0 | $ 1,670 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Springleaf Finance Corporation (“SFC” or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our”) is a wholly owned subsidiary of Springleaf Finance, Inc. (“SFI”). SFI is a wholly owned subsidiary of OneMain Holdings, Inc. (“OMH”). At December 31, 2016 , Springleaf Financial Holdings, LLC (the “Initial Stockholder”) owned approximately 58% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress Investment Group LLC (“Fortress”). |
Significant Transactions
Significant Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Significant Transactions [Abstract] | |
Significant Transactions | Significant Transactions OMH’S ACQUISITION OF ONEMAIN FINANCIAL HOLDINGS, LLC On November 15, 2015, OMH, through its wholly owned subsidiary, Independence Holdings, LLC (“Independence”), completed its acquisition of OneMain Financial Holdings, LLC (“OMFH”) from CitiFinancial Credit Company (“Citigroup”) for approximately $4.5 billion in cash (the “OneMain Acquisition”). As a result of the OneMain Acquisition, OMFH became a wholly owned, indirect subsidiary of OMH. OMFH is not a subsidiary of SFC and SFC is not a subsidiary of OMFH. In connection with the closing of the OneMain Acquisition, on November 13, 2015, OMH and certain subsidiaries of SFC entered into an Asset Preservation Stipulation and Order and agreed to a Proposed Final Judgment (collectively, the “Settlement Agreement”) with the U.S. Department of Justice (the “DOJ”), as well as the state attorneys general for Colorado, Idaho, Pennsylvania, Texas, Virginia, Washington and West Virginia. The Settlement Agreement resolved the inquiries of the DOJ and such attorneys general with respect to the OneMain Acquisition and allowed OMH to proceed with the closing. Pursuant to the Settlement Agreement, OMH agreed to divest 127 branches of SFC subsidiaries across 11 states as a condition for approval of the OneMain Acquisition. The Settlement Agreement required certain of OMH’s subsidiaries (the “Branch Sellers”) to operate these 127 branches as an ongoing, economically viable and competitive business until sold to the divestiture purchaser. The court overseeing the settlement appointed a third-party monitor to oversee management of the divestiture branches and ensure the Company’s compliance with the terms of the Settlement Agreement. SPRINGCASTLE INTERESTS SALE On March 31, 2016, SFI, SpringCastle Holdings, LLC (“SpringCastle Holdings”) and Springleaf Acquisition Corporation (“Springleaf Acquisition” and, together with SpringCastle Holdings, the “SpringCastle Sellers”), wholly owned subsidiaries of OMH, entered into a purchase agreement with certain subsidiaries of New Residential Investment Corp. (“NRZ” and such subsidiaries, the “NRZ Buyers”) and BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership—NQ—ESC L.P. (collectively, the “Blackstone Buyers” and together with the NRZ Buyers, the “SpringCastle Buyers”). Pursuant to the purchase agreement, on March 31, 2016, SpringCastle Holdings sold its 47% limited liability company interest in each of SpringCastle America, LLC, SpringCastle Credit, LLC and SpringCastle Finance, LLC, and Springleaf Acquisition sold its 47% limited liability company interest in SpringCastle Acquisition LLC, to the SpringCastle Buyers for an aggregate purchase price of approximately $112 million (the “SpringCastle Interests Sale”). SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC and SpringCastle Acquisition LLC are collectively referred to herein as the “SpringCastle Joint Venture.” The SpringCastle Joint Venture primarily holds subordinate ownership interests in a securitized loan portfolio (the “SpringCastle Portfolio”), which consists of unsecured loans and loans secured by subordinate residential real estate mortgages and includes both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in form and substance from the Company’s originated loans. At December 31, 2015, the SpringCastle Portfolio included over 232,000 of acquired loans, representing $1.7 billion in net finance receivables. In connection with the SpringCastle Interests Sale, the SpringCastle Buyers paid $101 million of the aggregate purchase price to the SpringCastle Sellers on March 31, 2016, with the remaining $11 million paid into an escrow account on July 29, 2016. Such escrowed funds are expected to be held in escrow for a period of up to five years following March 31, 2016, and, subject to the terms of the purchase agreement and assuming certain portfolio performance requirements are satisfied, paid to the SpringCastle Sellers at the end of such five -year period. In connection with the SpringCastle Interests Sale, we recorded a net gain in other revenues at the time of sale of $167 million . As a result of this sale, SpringCastle Acquisition and SpringCastle Holdings no longer hold any ownership interests of the SpringCastle Joint Venture. However, unless SFI is terminated, SFI will remain as servicer of the SpringCastle Portfolio under the servicing agreement for the SpringCastle Funding Trust. In addition, we deconsolidated the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt, as we no longer were considered the primary beneficiary. Prior to the SpringCastle Interests Sale, affiliates of the NRZ Buyers owned a 30% limited liability company interest in the SpringCastle Joint Venture, and affiliates of the Blackstone Buyers owned a 23% limited liability company interest in the SpringCastle Joint Venture (together, the “Other Members”). The Other Members are parties to the purchase agreement for purposes of certain limited indemnification obligations and post-closing expense reimbursement obligations of the SpringCastle Joint Venture to the SpringCastle Sellers. The NRZ Buyers are subsidiaries of NRZ, which is externally managed by an affiliate of Fortress. The Initial Stockholder, which owned approximately 58% of OMH’s common stock as of March 31, 2016, the date of sale, was owned primarily by a private equity fund managed by an affiliate of Fortress. Wesley Edens, Chairman of the Board of Directors of OMH, also serves as Chairman of the Board of Directors of NRZ. Mr. Edens is also a principal of Fortress and serves as Co-Chairman of the Board of Directors of Fortress. Douglas Jacobs, a member of the Board of Directors of OMH, also serves as a member of NRZ’s Board of Directors and Fortress’ Board of Directors. The purchase agreement included customary representations, warranties, covenants and indemnities. We did not record a sales recourse obligation related to the SpringCastle Interests Sale. SFC’S OFFERING OF 8.25% SENIOR NOTES On April 11, 2016, SFC issued $1.0 billion aggregate principal amount of 8.25% Senior Notes due 2020 (the “8.25% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “Base Indenture”), as supplemented by a First Supplemental Indenture, dated as of December 3, 2014 (the “First Supplemental Indenture”) and a Second Supplemental Indenture, dated as of April 11, 2016 (the “Second Supplemental Indenture” and, collectively with the Base Indenture and the First Supplemental Indenture, the “Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis. SFC used a portion of the proceeds from the offering to repurchase approximately $600 million aggregate principal amount of its existing senior notes that mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased new SFC senior notes in the offering. SFC intends to use the remaining net proceeds for general corporate purposes, which may include further debt repurchases and repayments. The notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries. The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund. The Indenture contains covenants that, among other things, (i) limit SFC’s ability to create liens on assets and (ii) restrict SFC’s ability to consolidate, merge or sell its assets. The Indenture also provides for events of default which, if any of them were to occur, would permit or require the principal of and accrued interest on the notes to become, or to be declared, due and payable. LENDMARK SALE On November 12, 2015, OMH and the Branch Sellers entered into a purchase and sale agreement with Lendmark Financial Services, LLC (“Lendmark”) to sell 127 Springleaf branches and, subject to certain exclusions, the associated personal loans issued to customers of such branches, fixed non-information technology assets and certain other tangible personal property located in such branches to Lendmark (the “Lendmark Sale”) for a purchase price equal to the sum of (i) the aggregate unpaid balance as of closing of the purchased loans multiplied by 103% , plus (ii) for each interest-bearing purchased loan, an amount equal to all unpaid interest that had accrued on the unpaid balance at the applicable note rate from the most recent interest payment date through the closing, plus (iii) the sum of all prepaid charges and fees and security deposits of the Branch Sellers to the extent arising under the purchased contracts as reflected on the books and records of the Branch Sellers as of closing, subject to certain limitations if the purchase price would exceed $ 695 million and Lendmark would be unable to obtain financing on certain specified terms. In anticipation of the sale of these branches, we transferred $608 million of personal loans from held for investment to held for sale on September 30, 2015. Pursuant to the Settlement Agreement, we were required to dispose of the branches to be sold in connection with the Lendmark Sale within 120 days following November 13, 2015, subject to such extensions as the DOJ may approve. As we did not believe we would be able to consummate the Lendmark Sale prior to April 1, 2016, we requested two extensions of the closing deadline set forth in the Settlement Agreement. The DOJ granted our requests through May 13, 2016. On May 2, 2016, we completed the Lendmark Sale for an aggregate cash purchase price of $624 million . Such sale was effective as of April 30, 2016, and included the sale to Lendmark of personal loans with an unpaid principal balance (“UPB”) as of March 31, 2016 of $600 million . OMH has entered into a transition services agreement with Lendmark dated as of May 2, 2016 (the “Transition Services Agreement”), and OMH’s and our activities will remain subject to the oversight of the Monitoring Trustee appointed by the court pursuant to the Settlement Agreement until the expiration of the Transition Services Agreement. The Transition Services Agreement is currently scheduled to expire on May 1, 2017. Although we and OMH continue to take such steps as we believe are necessary to comply with the terms of the Settlement Agreement, no assurance can be given that we will not incur fines or penalties associated with OMH’s or our activities pursuant to the Transition Services Agreement or OMH’s or our efforts to comply with the terms of the Settlement Agreement. On May 2, 2016, SFC used a portion of the proceeds from the Lendmark Sale to repay, in full, its revolving demand note with OMFH, which totaled $376 million (including interest payable of $6 million ). REAL ESTATE LOAN SALES August 2016 Real Estate Loan Sale On August 3, 2016, SFC and certain of its subsidiaries sold a portfolio of second lien mortgage loans for aggregate cash proceeds of $246 million (the “August 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of $4 million . Unless we are terminated or we resign as servicer, we will continue to service the loans included in this sale pursuant to a servicing agreement. The purchase and sale agreement and the servicing agreement include customary representations and warranties and indemnification provisions. December 2016 Real Estate Loan Sale On December 19, 2016, SFC and certain of its subsidiaries sold a portfolio of first and second lien mortgage loans for aggregate cash proceeds of $ 58 million (the “December 2016 Real Estate Loan Sale”). In connection with this sale, we recorded a net loss in other revenues at the time of sale of less than $ 1 million . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“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 owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2016 presentation, we reclassified certain items in prior periods of our consolidated financial statements. CHANGE IN ACCOUNTING POLICY Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired pool. Historically, we removed loans from a purchased credit impaired pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a purchased credit impaired pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of purchased credit impaired loans is preferable as it enhances consistency with our industry peers. As of January 1, 2015, the cumulative effect of retrospectively applying the change in accounting policy increased shareholder’s equity by $37 million . We have retrospectively applied this change in accounting policy. As a result, we have revised certain sections in our 2015 Annual Report on Form 10-K to reflect the retrospective application of this change in accounting policy, and such revised disclosures are included in exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 29, 2016. The effects of this change in accounting policy for 2016 were as follows: • decreased income before provision for income taxes by $55 million ; • decreased net income by $34 million ; and • decreased net income attributable to SFC by $36 million . ACCOUNTING POLICIES Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2016 , our three segments include: • Consumer and Insurance; • Acquisitions and Servicing; and • Real Estate. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our three segments. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the SpringCastle Portfolio, and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to update on a quarterly basis the amount of cash flows we expect to collect, which incorporates assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount, and such removal will not affect the yield used to recognize accretable yield of the pool. Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, or capitalize past due interest and, to a lesser extent, forgive principal or interest. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. Allowance for Finance Receivable Losses We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we may require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. Real Estate Owned We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. Reserve for Sales Recourse Obligations When we sell finance receivables, we may establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. Other Intangible Assets At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the insurance licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. Investment Securities We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholder’s equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assu |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Consolidation In February of 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreakers in their consolidation analysis and disclosures. The standard became effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. In October of 2016, the FASB issued ASU 2016-17, Interests Held through Related Parties that are under Common Control , which clarifies how a reporting entity should treat indirect interest in an entity that is held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Since we have adopted the amendments and updates in ASU 2015-02, we are required to apply the amendments in this update retrospectively for annual periods, and interim periods within those annual periods, beginning with the fiscal year in which the amendments in ASU 2015-02 were initially applied. We have adopted this ASU and concluded that is does not have a material effect on our consolidated financial statements. Technical Corrections and Improvements In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements , to correct differences between original guidance and the ASC), clarify the guidance, correct references and make minor improvements affecting a variety of topics. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. In December of 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements , to correct differences between original guidance and the ASC, clarify the guidance, correct references and make minor improvements affecting a variety of topics. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. Debt Instruments In March of 2016, the FASB issued ASU 2016-06, Contingent Puts and Call Options in Debt Instruments , which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. The ASU requires assessing the embedded call (put) options solely in accordance with the four-step decision sequence. The amendment of this ASU became effective on a modified retrospective basis for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have early adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. Stock Compensation In March of 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies the accounting for share-based payment transactions, income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU were adopted as follows: • We adopted the amendment requiring recognition of tax benefits related to exercised or vested awards through the income statement rather than additional paid-in capital on a prospective basis as of January 1, 2016. Further, as of January 1, 2016, there was no impact to additional paid-in capital as a result of our adoption of this ASU under the modified retrospective method. • We did not adopt the amendment allowing for the use of the actual number of shares vested each period, rather than estimating the number of awards that are expected to vest. We continue to use an estimate as it relates to the number of awards that are expected to vest. • We adopted the amendment for the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates, under the modified retrospective basis as of January 1, 2016. This amendment did not have a material impact on our consolidated financial statements. • We adopted the amendment requiring the classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes to be presented in the financing activities instead of the operating activities, under the retrospective method as of January 1, 2014. This amendment did not have a material impact on our consolidated financial statements. • We adopted the amendment requiring the classification of excess tax benefits on the statement of cash flows to be presented in the operating activities instead of the financing activities, under the prospective method as of September 30, 2016. This amendment did not have a material impact on our consolidated financial statements. Short-Duration Insurance Contracts Disclosures In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , to address enhanced disclosure requirements for insurers related to short-duration insurance contract claims and unpaid claims liability roll-forward for long and short-duration contracts. The disclosures are intended to provide users of financial statements more transparent information about an insurance entity’s initial claim estimates, subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The amendments in this ASU became effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. We have adopted this ASU and included the additional disclosures in Note 14 . Going Concern In August of 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which requires management to assess a company’s ability to continue as a going concern for each annual and interim reporting period, and disclose in its financial statements whether there is substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. We have adopted this ASU by performing the going concern assessment in accordance with the requirements of the ASU. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09, Revenue from Contracts with Customers . ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. We are evaluating whether the adoption of these accounting pronouncements will have a material effect on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendment in this ASU becomes effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Revenue Recognition and Derivatives and Hedging In May of 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) , to rescind certain SEC guidance in Topic 605 and Topic 815 as ASU 2014-09 becomes effective. Our adoption of ASU 2014-09 will bring us into alignment with this ASU. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will have a material effect on our consolidated financial statements and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which clarifies the presentation of restricted cash on the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2016, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, real estate loans, and retail sales finance as defined below: • Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of two to five years . At December 31, 2016 , we had over 928,000 personal loans representing $4.8 billion of net finance receivables, compared to 890,000 personal loans totaling $4.3 billion at December 31, 2015 . • Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months , and are considered non-conforming. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. Since we ceased real estate lending in January of 2012, our real estate loans have been in a liquidating status. • Retail sales finance — include retail sales contracts and revolving retail accounts. Retail sales contracts are closed-end accounts that represent a single purchase transaction. Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant. Retail sales contracts are secured by the personal property designated in the contract and generally have maximum original terms of 60 months . Revolving retail accounts are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is in a liquidating status. Our finance receivable types also included the SpringCastle Portfolio at December 31, 2015, as defined below: • SpringCastle Portfolio — included unsecured loans and loans secured by subordinate residential real estate mortgages that were sold on March 31, 2016, in connection with the SpringCastle Interests Sale. The SpringCastle Portfolio included both closed-end accounts and open-end lines of credit. These loans were in a liquidating status and varied in substance and form from our originated loans. Unless SFI is terminated, SFI will continue to provide the servicing for these loans pursuant to a servicing agreement, which SFI services as unsecured loans because the liens are subordinated to superior ranking security interests. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Gross receivables * $ 5,449 $ — $ 142 $ 12 $ 5,603 Unearned finance charges and points and fees (754 ) — 1 (1 ) (754 ) Accrued finance charges 63 — 1 — 64 Deferred origination costs 46 — — — 46 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 December 31, 2015 Gross receivables * $ 5,028 $ 1,672 $ 534 $ 25 $ 7,259 Unearned finance charges and points and fees (833 ) — — (2 ) (835 ) Accrued finance charges 60 31 4 — 95 Deferred origination costs 45 — — — 45 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the Fortress Acquisition (as defined below) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. At December 31, 2016 and 2015, unused lines of credit extended to customers by the Company totaled $ 4 million and $ 397 million , respectively. The unused lines of credit at December 31, 2015, were primarily attributable to the SpringCastle Portfolio. GEOGRAPHIC DIVERSIFICATION Geographic diversification of finance receivables reduces the concentration of credit risk associated with economic stresses in any one region. The largest concentrations of net finance receivables were as follows: December 31, 2016 2015 * (dollars in millions) Amount Percent Amount Percent Illinois $ 400 8 % $ 468 7 % North Carolina 398 8 593 9 Indiana 360 7 403 6 California 298 6 429 7 Texas 288 6 292 4 Georgia 276 6 323 5 Virginia 266 5 334 5 Ohio 266 5 371 6 Pennsylvania 255 5 375 6 Florida 254 5 345 5 South Carolina 254 5 291 4 Other 1,644 34 2,340 36 Total $ 4,959 100 % $ 6,564 100 % * December 31, 2015 concentrations of net finance receivables are presented in the order of December 31, 2016 state concentrations. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our primary credit quality indicator. We monitor delinquency trends to manage our exposure to credit risk. When finance receivables are 60 days past due, we consider them delinquent and transfer collections management of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Net finance receivables: Performing Current $ 4,579 $ — $ 102 $ 11 $ 4,692 30-59 days past due 64 — 9 — 73 60-89 days past due 45 — 4 — 49 Total performing 4,688 — 115 11 4,814 Nonperforming 90-179 days past due 112 — 8 — 120 180 days or more past due 4 — 21 — 25 Total nonperforming 116 — 29 — 145 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 December 31, 2015 Net finance receivables: Performing Current $ 4,077 $ 1,588 $ 486 $ 22 $ 6,173 30-59 days past due 65 49 13 — 127 60-89 days past due 49 26 19 — 94 Total performing 4,191 1,663 518 22 6,394 Nonperforming 90-179 days past due 106 39 7 1 153 180 days or more past due 3 1 13 — 17 Total nonperforming 109 40 20 1 170 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 We accrue finance charges on revolving retail finance receivables up to the date of charge-off at 180 days past due. Our revolving retail finance receivables that were more than 90 days past due and still accruing finance charges at December 31, 2016 and at December 31, 2015 were immaterial . Our personal loans and real estate loans do not have finance receivables that were more than 90 days past due and still accruing finance charges. PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased as part of the following transaction: • 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 purchase accounting and adjusted the carrying value of our finance receivables (the “FA Loans”) to their fair value. At December 31, 2015, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased as part of the following transaction: • SFI’s capital contribution of its wholly owned subsidiary, Springleaf Acquisition Corporation (“SAC”), to SFC - on July 31, 2014 (the “SAC Capital Contribution”), SFC acquired a 47% equity interest in the SpringCastle Portfolio (the “SCP Loans”), some of which were determined to be credit impaired when SAC acquired the SCP Loans on April 1, 2013. On March 31, 2016, we sold the SpringCastle Portfolio in connection with the SpringCastle Interests Sale described in Note 2 . We report the carrying amount (which initially was the fair value) of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below. At December 31, 2016 and 2015, finance receivables held for sale totaled $153 million and $ 793 million , respectively. See Note 7 for further information on our finance receivables held for sale, which include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below. 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 (a) Total December 31, 2016 Carrying amount, net of allowance $ — $ 70 $ 70 Outstanding balance (b) — 107 107 Allowance for purchased credit impaired finance receivable losses — 8 8 December 31, 2015 Carrying amount, net of allowance $ 350 $ 89 $ 439 Outstanding balance 482 136 618 Allowance for purchased credit impaired finance receivable losses — 12 12 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2016 2015 Carrying amount $ 54 $ 59 Outstanding balance 83 89 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. The allowance for purchased credit impaired finance receivable losses at December 31, 2016 and 2015 , reflected the net carrying value of the purchased credit impaired FA Loans being higher than the present value of the expected cash flows. Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) SCP Loans FA Loans Total Year Ended December 31, 2016 Balance at beginning of period $ 375 $ 66 $ 441 Accretion (a) (16 ) (7 ) (23 ) Reclassifications from nonaccretable difference (b) — 12 12 Transfers due to finance receivables sold (359 ) (11 ) (370 ) Balance at end of period $ — $ 60 $ 60 Year Ended December 31, 2015 Balance at beginning of period $ 452 $ 54 $ 506 Accretion (a) (77 ) (8 ) (85 ) Reclassifications from nonaccretable difference (b) — 20 20 Balance at end of period $ 375 $ 66 $ 441 Year Ended December 31, 2014 Balance at beginning of period $ — $ 768 $ 768 Accretable yield for SpringCastle Portfolio contributed to SFC 366 — 366 Accretion (a) (37 ) (75 ) (112 ) Reclassifications from nonaccretable difference (b) 123 19 142 Transfers due to finance receivables sold — (658 ) (658 ) Balance at end of period $ 452 $ 54 $ 506 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Accretion $ 5 $ 6 $ 13 (b) Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. TROUBLED DEBT RESTRUCTURED FINANCE RECEIVABLES Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Real Estate Total December 31, 2016 TDR gross finance receivables (b) $ 47 $ — $ 133 $ 180 TDR net finance receivables 47 — 134 181 Allowance for TDR finance receivable losses 20 — 11 31 December 31, 2015 TDR gross finance receivables (b) $ 32 $ 14 $ 200 $ 246 TDR net finance receivables 31 13 201 245 Allowance for TDR finance receivable losses 9 4 34 47 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2016 TDR gross finance receivables $ — $ 89 $ 89 TDR net finance receivables — 90 90 December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 (b) As defined earlier in this Note. As of December 31, 2016 , we had no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2016 TDR average net receivables $ 36 $ — $ 175 $ 211 TDR finance charges recognized 3 — 11 14 Year Ended December 31, 2015 TDR average net receivables $ 29 $ 12 $ 198 $ 239 TDR finance charges recognized 3 1 11 15 Year Ended December 31, 2014 TDR average net receivables (b) $ 17 $ 5 $ 951 $ 973 TDR finance charges recognized 2 1 47 50 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2016 TDR average net receivables $ 1 $ 102 $ 103 TDR finance charges recognized — 6 6 Year Ended December 31, 2015 TDR average net receivables (a) $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables (b) $ — $ 248 $ 248 TDR finance charges recognized — 4 4 (a) TDR personal loan average net receivables held for sale for 2015 reflect a three -month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. (b) TDR real estate loan average net receivables held for sale for 2014 reflect a five -month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. (b) TDR SpringCastle Portfolio loans average net receivables for the year ended December 31, 2014 reflect a five -month average since the SAC Capital Contribution occurred on July 31, 2014. The impact of the transfers of finance receivables held for investment to finance receivables held for sale and the subsequent sales of finance receivables held for sale during the first half of 2014 was immaterial since the loans were transferred and sold within the same months. Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 49 $ 1 $ 16 $ 66 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 1 $ 16 $ 48 Other (b) 12 — 1 13 Total post-modification TDR net finance receivables $ 43 $ 1 $ 17 $ 61 Number of TDR accounts 9,517 157 364 10,038 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 33 $ 7 $ 21 $ 61 Post-modification TDR net finance receivables: Rate reduction $ 15 $ 6 $ 17 $ 38 Other (b) 12 — 5 17 Total post-modification TDR net finance receivables $ 27 $ 6 $ 22 $ 55 Number of TDR accounts 6,515 721 385 7,621 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ 18 $ 4 $ 213 $ 235 Post-modification TDR net finance receivables: Rate reduction $ 10 $ 4 $ 157 $ 171 Other (b) 6 — 46 52 Total post-modification TDR net finance receivables $ 16 $ 4 $ 203 $ 223 Number of TDR accounts 4,206 468 2,374 7,048 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ — $ 5 $ 5 Post-modification TDR net finance receivables $ — $ 5 $ 5 Number of TDR accounts 174 122 296 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 (b) “Other” modifications primarily include forgiveness of principal or interest. Net finance receivables held for investment and held for sale that were modified as TDR finance receivables within the previous 12 months and for which there was a default during the period to cause the TDR finance receivables to be considered nonperforming ( 90 days or more past due) were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Total Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 6 $ — $ 3 $ 9 Number of TDR accounts 1,409 19 61 1,489 Year Ended December 31, 2015 TDR net finance receivables (b) $ 5 $ 2 $ 3 $ 10 Number of TDR accounts 1,221 147 46 1,414 Year Ended December 31, 2014 TDR net finance receivables (b) $ 1 $ 1 $ 33 $ 35 Number of TDR accounts 141 53 524 718 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2016 Balance at beginning of period $ 173 $ 4 $ 46 $ 1 $ 224 Provision for finance receivable losses 306 14 9 — 329 Charge-offs (340 ) (17 ) (11 ) (1 ) (369 ) Recoveries 45 3 5 1 54 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 184 $ — $ 19 $ 1 $ 204 Year Ended December 31, 2015 Balance at beginning of period $ 130 $ 3 $ 46 $ 1 $ 180 Provision for finance receivable losses 257 67 13 2 339 Charge-offs (250 ) (78 ) (18 ) (3 ) (349 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 173 $ 4 $ 46 $ 1 $ 224 Year Ended December 31, 2014 Balance at beginning of period $ 94 $ — $ 330 $ 2 $ 426 Provision for finance receivable losses 203 36 110 3 352 Charge-offs (c) (192 ) (39 ) (61 ) (5 ) (297 ) Recoveries (d) 25 5 6 1 37 Other (e) — — (339 ) — (339 ) Allowance for SpringCastle Portfolio contributed to SFC — 1 — — 1 Balance at end of period $ 130 $ 3 $ 46 $ 1 $ 180 (a) Other consists of: • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale; and • the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance receivable held for sale during 2016. (b) Other consists of the elimination of allowance for finance receivable losses due to the transfer of personal loans held for investment to finance receivable held for sale during 2015. (c) Charge-offs during 2014 included a $4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. (d) Recoveries during 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. (e) Other consists of the elimination of allowance for finance receivable losses due to the transfer of real estate loans held for investment to finance receivable held for sale during 2014. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ — $ 1 $ 165 Purchased credit impaired finance receivables — — 8 — 8 TDR finance receivables 20 — 11 — 31 Total $ 184 $ — $ 19 $ 1 $ 204 Finance receivables: Collectively evaluated for impairment $ 4,757 $ — $ 76 $ 11 $ 4,844 Purchased credit impaired finance receivables — — 24 — 24 TDR finance receivables 47 — 44 — 91 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 Allowance for finance receivable losses as a percentage of finance receivables 3.84 % — % 13.31 % 4.42 % 4.12 % December 31, 2015 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ — $ 1 $ 165 Purchased credit impaired finance receivables — — 12 — 12 TDR finance receivables 9 4 34 — 47 Total $ 173 $ 4 $ 46 $ 1 $ 224 Finance receivables: Collectively evaluated for impairment $ 4,271 $ 1,340 $ 387 $ 23 $ 6,021 Purchased credit impaired finance receivables — 350 42 — 392 TDR finance receivables 29 13 109 — 151 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 Allowance for finance receivable losses as a percentage of finance receivables 4.01 % 0.25 % 8.72 % 3.46 % 3.42 % See Note 3 for additional information on the determination of the allowance for finance receivable losses. |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 12 Months Ended |
Dec. 31, 2016 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $153 million at December 31, 2016 and $793 million at December 31, 2015 , which are carried at the lower of cost or fair value. At December 31, 2016 , finance receivables held for sale consisted entirely of real estate loans, compared to $617 million of personal loans and $176 million of real estate loans at December 31, 2015 . At December 31, 2016 and 2015 , the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. PERSONAL LOANS During 2015, we transferred $608 million of personal loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million . SPRINGCASTLE PORTFOLIO During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. We simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $167 million . REAL ESTATE LOANS On November 30, 2016, we transferred $50 million of loans of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In connection with the December 2016 Real Estate Loan Sale, we sold a portfolio of first and second lien mortgage loans with a carrying value of $58 million and recorded a net loss in other revenues of less than $1 million . On June 30, 2016, we transferred $257 million of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $250 million and recorded a net loss in other revenues of $4 million . During 2014, we transferred $6.6 billion of real estate loans (after deducting allowance for finance receivable losses) from held for investment to held for sale due to management’s intent to no longer hold these finance receivables for the foreseeable future. In 2014, we sold real estate loans held for sale totaling $6.4 billion and recorded a net gain of $626 million . At December 31, 2016 and 2015 , the remaining holdback reserve relating to these real estate sales totaled $3 million and $5 million , respectively. We did not have any other material transfer activity to or from finance receivables held for sale during 2016 , 2015 or 2014. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 13 $ — $ — $ 13 Obligations of states, municipalities, and political subdivisions 83 — (1 ) 82 Non-U.S. government and government sponsored entities 5 — — 5 Corporate debt 356 2 (5 ) 353 Mortgage-backed, asset-backed, and collateralized: Residential mortgage-backed securities (“RMBS”) 39 — — 39 Commercial mortgage-backed securities (“CMBS”) 33 — — 33 Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) 46 — — 46 Total bonds 575 2 (6 ) 571 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 582 $ 2 $ (6 ) $ 578 December 31, 2015 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 83 $ — $ (1 ) $ 82 Obligations of states, municipalities, and political subdivisions 88 1 — 89 Corporate debt 278 2 (13 ) 267 Mortgage-backed, asset-backed, and collateralized: RMBS 74 — — 74 CMBS 44 — — 44 CDO/ABS 30 — (1 ) 29 Total bonds 597 3 (15 ) 585 Preferred stock (a) 6 — (1 ) 5 Other long-term investments 1 — — 1 Total (b) $ 604 $ 3 $ (16 ) $ 591 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2016 and 2015 , which is classified as a restricted investment and carried at cost. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2016 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 57 (1 ) 2 — 59 (1 ) Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 171 (5 ) 5 — 176 (5 ) RMBS 33 — — — 33 — CMBS 22 — — — 22 — CDO/ABS 25 — — — 25 — Total bonds 320 (6 ) 7 — 327 (6 ) Preferred stock — — 6 — 6 — Total $ 320 $ (6 ) $ 13 $ — $ 333 $ (6 ) December 31, 2015 Bonds: U.S. government and government sponsored entities $ 76 $ (1 ) $ — $ — $ 76 $ (1 ) Obligations of states, municipalities, and political subdivisions 36 — 2 — 38 — Corporate debt 189 (13 ) 7 — 196 (13 ) RMBS 68 — — — 68 — CMBS 36 — 5 — 41 — CDO/ABS 29 (1 ) — — 29 (1 ) Total bonds 434 (15 ) 14 — 448 (15 ) Preferred stock — — 6 (1 ) 6 (1 ) Other long-term investments 1 — — — 1 — Total $ 435 $ (15 ) $ 20 $ (1 ) $ 455 $ (16 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. On a lot basis, we had 217 and 198 investment securities in an unrealized loss position at December 31, 2016 and 2015 , respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2016 , we had no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential impairments. During 2016 , 2015 and 2014 , we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues. Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: (dollars in millions) At or for the Year Ended December 31, 2016 Balance at beginning of period $ 1 Reductions: Realized due to dispositions with no prior intention to sell 1 Balance at end of period $ — During 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 proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Proceeds from sales and redemptions $ 308 $ 416 $ 260 Realized gains $ 9 $ 15 $ 9 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 8 $ 14 $ 8 Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2016 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 $ 37 $ 38 Due after 1 year through 5 years 231 232 Due after 5 years through 10 years 39 39 Due after 10 years 146 148 Mortgage-backed, asset-backed, and collateralized securities 118 118 Total $ 571 $ 575 Actual maturities may differ from contractual maturities since issuers and borrowers may have the right to call or prepay obligations. We may sell investment securities before maturity for general corporate and working capital purposes and to achieve certain investment strategies. The fair value of securities on deposit with third parties totaled $11 million at December 31, 2016 and December 31, 2015 . TRADING AND OTHER SECURITIES The fair value of trading and other securities by type was as follows: (dollars in millions) December 31, 2016 2015 Fixed maturity trading and other securities: Bonds Corporate debt $ 2 $ 10 Mortgage-backed, asset-backed, and collateralized: CMBS 1 2 Total * $ 3 $ 12 * The fair value of other securities, which we have elected the fair value option, totaled $3 million at December 31, 2016 and $2 million at December 31, 2015 . The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Net unrealized gains (losses) on trading and other securities held at year end $ — $ 4 $ (9 ) Net realized gains (losses) on trading and other securities sold or redeemed during the year 1 (3 ) 5 Total $ 1 $ 1 $ (4 ) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Components of other assets were as follows: (dollars in millions) December 31, 2016 2015 Fixed assets, net (a) $ 70 $ 83 Receivables from parent and affiliates 40 9 Prepaid expenses and deferred charges 38 35 Other investments (b) 30 67 Ceded insurance reserves 22 22 Other intangible assets 15 16 Cost basis investments 11 10 Escrow advance receivable 10 11 Real estate owned 4 8 Receivables related to sales of real estate loans and related trust assets (d) 3 5 Deferred tax assets 2 — Current tax receivable (c) — 8 Other 6 7 Total $ 251 $ 281 (a) Fixed assets were net of accumulated depreciation of $180 million at December 31, 2016 and $173 million at December 31, 2015 . (b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. (c) Current tax receivable includes current federal and state tax assets. (d) Receivables related to sales of real estate loans and related trust assets reflect the remaining balances of holdback provisions as of December 31, 2016 and 2015 . OTHER INTANGIBLE ASSETS The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2016 Value of business acquired (“VOBA”) $ 36 $ (33 ) $ 3 Customer relationships 18 (18 ) — Licenses 12 — 12 Customer lists 9 (9 ) — Total $ 75 $ (60 ) $ 15 December 31, 2015 VOBA $ 36 $ (32 ) $ 4 Customer relationships 18 (18 ) — Licenses 12 — 12 Customer lists 9 (9 ) — Total $ 75 $ (59 ) $ 16 Amortization expense totaled less than $1 million in 2016 and $4 million in 2015 and 2014 . The estimated aggregate amortization of other intangible assets for each of the next five years is less than $1 million . |
Transactions with Affiliates of
Transactions with Affiliates of Fortress | 12 Months Ended |
Dec. 31, 2016 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Transactions with Affiliates of Fortress | Transactions with Affiliates of Fortress SUBSERVICING AGREEMENT Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain of our indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of $2 million in 2016 , $2 million in 2015 , and $5 million in 2014 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1 million in each of 2016 , 2015 , and 2014 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. See Note 2 for further information on this sale. NRZ is managed by an affiliate of Fortress. Related Party Transactions AFFILIATE LENDING Notes Receivable from Parent and Affiliates Note Receivable from SFI. SFC’s note receivable from SFI 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 2017 and does not expect to demand payment from SFI in 2017 . The note receivable from SFI totaled $285 million at December 31, 2016 and $389 million at December 31, 2015 . The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . Interest revenue on the note receivable from SFI totaled $19 million during 2016 , $15 million during 2015 , and $5 million during 2014 , which we report in interest income on notes receivable from parent and affiliates. Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, Springleaf Financial Cash Services, Inc. (“CSI”), SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence (the “Independence Demand Note”), whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $ 3.55 billion . Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . On November 12, 2015, Independence borrowed $ 3.4 billion under the Independence Demand Note. At December 31, 2015, the note receivable from Independence totaled $ 3.4 billion , which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Independence Demand Note totaled $27 million during 2015 , which we report in interest income on notes receivable from parent and affiliates. On July 19, 2016, CSI, Independence, and OMFH entered into an Assignment of Intercompany Demand Note (the “Note Assignment”) pursuant to which CSI sold and assigned to OMFH, and OMFH purchased and assumed from CSI, an interest in and to CSI’s right to receive $150 million principal amount outstanding under the Independence Demand Note (the “Original Note”) for a purchase price of $150 million (the “Assignment Purchase Price”). On July 20, 2016, OMFH paid the Assignment Purchase Price to CSI. In connection with the Note Assignment discussed above, Independence exchanged the Original Note for a new intercompany demand note issued to CSI with a maximum borrowing amount not to exceed $3.4 billion (the “Cash Services Note”), and a new intercompany demand note issued to OMFH with a maximum borrowing amount not to exceed $150 million (the “OMFH Note” and together with the Cash Services Note, the “New Notes”). The New Notes provide that no advances shall be made to Independence on or after December 31, 2019 and all principal and interest shall be payable in full on December 31, 2019, unless earlier payment is demanded by CSI or OMFH. At December 31, 2016 , the note receivable from Independence relating to the Cash Services Note totaled $2.9 billion , which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Cash Services Note totaled $185 million during 2016 , which we report in interest income on notes receivable from parent and affiliates. OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $ 500 million . Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015 , no amounts were drawn by OMFH under the note. On August 12, 2016, SFC amended the note to increase the maximum amount that may be advanced to $750 million . At December 31, 2016 , the note receivable from OMFH totaled $530 million , which included compounded interest due to SFC. Interest revenue on the note receivable from OMFH totaled $10 million during 2016 , which we report in interest income on notes receivable from parent and affiliates. Receivables from Parent and Affiliates At December 31, 2016 and 2015 , receivables from parent and affiliates totaled $40 million and $9 million , respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates, and (iv) intercompany insurance premiums collected. Receivables from parent and affiliates at December 31, 2016 and 2015 were presented net of a payable to SFI of $6 million and $12 million , respectively. Excluding this payable, receivables from parent and affiliates totaled $46 million and $21 million at December 31, 2016 and 2015 , respectively. Note Payable to Affiliate On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . At December 31, 2016 and 2015 , no amounts were drawn under the note. Interest expense on the note payable to OMFH was $7 million during 2016 , which we report in interest expense. Payables to Parent and Affiliates At December 31, 2016 and 2015 , payables to parent and affiliates totaled $13 million and $24 million , respectively. At December 31, 2016 and 2015 , Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $12 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 December 31, 2016 and 2015 , SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. (“SCLI”) for internet lending referral fees charged to the branch network. Prior to the SpringCastle Interests Sale, SFI provided servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC, a subsidiary of SFC. At December 31, 2015, SpringCastle Holdings LLC’s payable to SFI totaled $4 million . Subsequent to the SpringCastle Interests Sale, SFI continues to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust. RELATED PARTY LOAN SALE TRANSACTIONS During 2016, Springleaf Consumer Loan, Inc. (“SCLI”), a subsidiary of SFI, entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which SCLI sold certain personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . SCLI continues to service these loans. During 2016 , SFC recorded $3 million of service fee expenses for these personal loans. RELATED PARTY DEBT PURCHASES In December of 2016, OneMain Assurance Services, LLC, a subsidiary of OMFH, purchased $5 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $5 million . At the purchase dates, these notes had a carrying value of $5 million . These purchase transactions did not impact our consolidated financial statements. CAPITAL CONTRIBUTIONS During 2016 and 2014, SFC received capital contributions from SFI totaling $10 million and $22 million , respectively, to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt. On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. 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 $12 million at December 31, 2016 and $19 million at December 31, 2015 . 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 2016 , 2015 , and 2014 , SFMC recorded $239 million , $224 million , and $213 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 2016 , 2015 , and 2014 , SFMC recorded $6 million , $6 million , and $5 million , respectively, 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 each of 2016 , 2015 , and 2014 , SFMC recorded $4 million of rent charged to SGSC, which are included as a contra expense to other operating expenses. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Affiliates of Fortress SUBSERVICING AGREEMENT Nationstar Mortgage LLC (“Nationstar”) subservices the real estate loans of certain of our indirect subsidiaries (collectively, the “Owners”). Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The Owners paid Nationstar subservicing fees of $2 million in 2016 , $2 million in 2015 , and $5 million in 2014 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle Partners, L.P. (“Logan Circle”) provides investment management services for our investments. Logan Circle is a wholly owned subsidiary of Fortress. Costs and fees incurred for these investment management services totaled $1 million in each of 2016 , 2015 , and 2014 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. See Note 2 for further information on this sale. NRZ is managed by an affiliate of Fortress. Related Party Transactions AFFILIATE LENDING Notes Receivable from Parent and Affiliates Note Receivable from SFI. SFC’s note receivable from SFI 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 2017 and does not expect to demand payment from SFI in 2017 . The note receivable from SFI totaled $285 million at December 31, 2016 and $389 million at December 31, 2015 . The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . Interest revenue on the note receivable from SFI totaled $19 million during 2016 , $15 million during 2015 , and $5 million during 2014 , which we report in interest income on notes receivable from parent and affiliates. Independence Demand Note. On November 12, 2015, in connection with the closing of the OneMain Acquisition, Springleaf Financial Cash Services, Inc. (“CSI”), SFC’s wholly owned subsidiary, entered into a revolving demand note with Independence (the “Independence Demand Note”), whereby CSI agreed to make advances to Independence from time to time, with an aggregate amount outstanding not to exceed $ 3.55 billion . Under the Independence Demand Note, Independence is required to use the proceeds of any advance either (i) to fund a portion of the purchase price for the OneMain Acquisition or (ii) for general corporate purposes. The note is payable in full on December 31, 2019, and CSI may demand payment at any time prior to December 31, 2019. Independence may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . On November 12, 2015, Independence borrowed $ 3.4 billion under the Independence Demand Note. At December 31, 2015, the note receivable from Independence totaled $ 3.4 billion , which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Independence Demand Note totaled $27 million during 2015 , which we report in interest income on notes receivable from parent and affiliates. On July 19, 2016, CSI, Independence, and OMFH entered into an Assignment of Intercompany Demand Note (the “Note Assignment”) pursuant to which CSI sold and assigned to OMFH, and OMFH purchased and assumed from CSI, an interest in and to CSI’s right to receive $150 million principal amount outstanding under the Independence Demand Note (the “Original Note”) for a purchase price of $150 million (the “Assignment Purchase Price”). On July 20, 2016, OMFH paid the Assignment Purchase Price to CSI. In connection with the Note Assignment discussed above, Independence exchanged the Original Note for a new intercompany demand note issued to CSI with a maximum borrowing amount not to exceed $3.4 billion (the “Cash Services Note”), and a new intercompany demand note issued to OMFH with a maximum borrowing amount not to exceed $150 million (the “OMFH Note” and together with the Cash Services Note, the “New Notes”). The New Notes provide that no advances shall be made to Independence on or after December 31, 2019 and all principal and interest shall be payable in full on December 31, 2019, unless earlier payment is demanded by CSI or OMFH. At December 31, 2016 , the note receivable from Independence relating to the Cash Services Note totaled $2.9 billion , which included compounded interest due to CSI. Interest revenue on the note receivable from Independence relating to the Cash Services Note totaled $185 million during 2016 , which we report in interest income on notes receivable from parent and affiliates. OneMain Demand Note. On November 15, 2015, in connection with the closing of the OneMain Acquisition, SFC entered into a revolving demand note (the “OneMain Demand Note”) with OMFH, whereby SFC agreed to make advances to OMFH from time to time, with an aggregate amount outstanding not to exceed $ 500 million . Under the OneMain Demand Note, OMFH is required to use the proceeds of any advance either (i) exclusively to finance the purchase, origination, pooling, funding or carrying of receivables by OMFH or any of its restricted subsidiaries or (ii) for general corporate purposes. The note is payable in full on December 31, 2024, and SFC may demand payment with five days prior notice. OMFH may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate. At December 31, 2015 , no amounts were drawn by OMFH under the note. On August 12, 2016, SFC amended the note to increase the maximum amount that may be advanced to $750 million . At December 31, 2016 , the note receivable from OMFH totaled $530 million , which included compounded interest due to SFC. Interest revenue on the note receivable from OMFH totaled $10 million during 2016 , which we report in interest income on notes receivable from parent and affiliates. Receivables from Parent and Affiliates At December 31, 2016 and 2015 , receivables from parent and affiliates totaled $40 million and $9 million , respectively. Receivables from parent and affiliates also included (i) interest receivable on SFC’s note receivable from SFI previously discussed in this Note, (ii) taxes paid by SFC for all entities under the tax sharing agreement, (iii) expenses paid by a subsidiary of SFC for the benefit of parent and affiliates, and (iv) intercompany insurance premiums collected. Receivables from parent and affiliates at December 31, 2016 and 2015 were presented net of a payable to SFI of $6 million and $12 million , respectively. Excluding this payable, receivables from parent and affiliates totaled $46 million and $21 million at December 31, 2016 and 2015 , respectively. Note Payable to Affiliate On December 1, 2015, in connection with the closing of the OneMain Acquisition, OMFH entered into a revolving demand note with SFC, whereby OMFH agreed to make advances to SFC from time to time, with an aggregate amount outstanding not to exceed $500 million . Under the note, SFC is required to use the proceeds of any advance for general corporate purposes. The note is payable in full on December 31, 2024, and OMFH may demand payment with five days prior notice. SFC may repay the note in whole or in part at any time without premium or penalty. The interest rate for the UPB is the lender’s cost of funds rate, which was 6.29% at December 31, 2016 . At December 31, 2016 and 2015 , no amounts were drawn under the note. Interest expense on the note payable to OMFH was $7 million during 2016 , which we report in interest expense. Payables to Parent and Affiliates At December 31, 2016 and 2015 , payables to parent and affiliates totaled $13 million and $24 million , respectively. At December 31, 2016 and 2015 , Springleaf Finance Management Corporation (“SFMC”), a subsidiary of SFC, had net payables of $12 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 December 31, 2016 and 2015 , SFMC also had a payable of $1 million to Springleaf Consumer Loan, Inc. (“SCLI”) for internet lending referral fees charged to the branch network. Prior to the SpringCastle Interests Sale, SFI provided servicing of the SpringCastle Portfolio through a master servicing agreement with SpringCastle Holdings, LLC, a subsidiary of SFC. At December 31, 2015, SpringCastle Holdings LLC’s payable to SFI totaled $4 million . Subsequent to the SpringCastle Interests Sale, SFI continues to act as the servicer of the SpringCastle Portfolio for the SpringCastle Funding Trust. RELATED PARTY LOAN SALE TRANSACTIONS During 2016, Springleaf Consumer Loan, Inc. (“SCLI”), a subsidiary of SFI, entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which SCLI sold certain personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . SCLI continues to service these loans. During 2016 , SFC recorded $3 million of service fee expenses for these personal loans. RELATED PARTY DEBT PURCHASES In December of 2016, OneMain Assurance Services, LLC, a subsidiary of OMFH, purchased $5 million principal amount of SFC’s medium term notes in the open market for an aggregate purchase price of $5 million . At the purchase dates, these notes had a carrying value of $5 million . These purchase transactions did not impact our consolidated financial statements. CAPITAL CONTRIBUTIONS During 2016 and 2014, SFC received capital contributions from SFI totaling $10 million and $22 million , respectively, to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt. On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. 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 $12 million at December 31, 2016 and $19 million at December 31, 2015 . 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 2016 , 2015 , and 2014 , SFMC recorded $239 million , $224 million , and $213 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 2016 , 2015 , and 2014 , SFMC recorded $6 million , $6 million , and $5 million , respectively, 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 each of 2016 , 2015 , and 2014 , SFMC recorded $4 million of rent charged to SGSC, which are included as a contra expense to other operating expenses. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Carrying value and fair value of long-term debt by type were as follows: December 31, 2016 December 31, 2015 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 6,665 $ 7,150 $ 9,410 $ 9,753 Junior subordinated debt 172 158 172 245 Total $ 6,837 $ 7,308 $ 9,582 $ 9,998 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2016 2015 2014 2016 2015 Senior debt 7.18 % 6.96 % 7.10 % 7.46 % 6.66 % Junior subordinated debt 12.26 12.26 12.26 12.26 12.26 Total 7.30 7.05 7.19 7.59 6.76 Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2016 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.50% 5.25% - 8.25% 6.00% First quarter 2017 $ — $ — $ — $ — Second quarter 2017 — — — — Third quarter 2017 — 257 — 257 Fourth quarter 2017 — 1,030 — 1,030 2017 — 1,287 — 1,287 2018 — — — — 2019 — 700 — 700 2020 — 1,300 — 1,300 2021 — 650 — 650 2022-2067 — 300 350 650 Securitizations (b) 2,687 — — 2,687 Total principal maturities $ 2,687 $ 4,237 $ 350 $ 7,274 Total carrying amount $ 2,675 $ 3,990 $ 172 $ 6,837 Debt issuance costs (c) $ (12 ) $ (15 ) $ — $ (27 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2016 . (b) Securitizations and borrowings under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. At December 31, 2016 , there were no amounts drawn under our revolving conduit facilities. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $9 million at December 31, 2016 and are reported in other assets. GUARANTY AGREEMENTS 8.25% SFC Notes On April 11, 2016, OMH entered into the Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on $1.0 billion of the 8.25% SFC Notes. As of December 31, 2016 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. See Note 2 for further discussion of this offering. 5.25% SFC Notes On December 3, 2014, OMH entered into the Base Indenture and the First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on $700 million of 5.25% Senior Notes due 2019 issued by SFC (the “ 5.25% SFC Notes”). As of December 31, 2016 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on approximately $5.2 billion aggregate principal amount of senior notes, on a senior unsecured basis, and $350 million aggregate principal amount of a junior subordinated debenture, on a junior subordinated basis, issued by SFC (collectively, the “Other SFC Notes”). The Other SFC Notes consisted of the following: 8.25% Senior Notes due 2023; 7.75% Senior Notes due 2021; 6.00% Senior Notes due 2020; a 60 -year junior subordinated debenture; and all senior notes outstanding on December 30, 2013, issued pursuant to the Indenture dated as of May 1, 1999 (the “1999 Indenture”), between SFC and Wilmington Trust, National Association (the successor trustee to Citibank N.A.). The 60 -year junior subordinated debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into a Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2016 , approximately $2.9 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. DEBT COVENANTS The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. In addition, the OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. With the exception of SFC’s junior subordinated debenture, none of SFC’s debt agreements require SFC or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, certain events, including non-payment of principal or interest, bankruptcy or insolvency, or a breach of a covenant or a representation or warranty, may constitute an event of default and trigger an acceleration of payments. In some cases, an event of default or acceleration of payments under one debt agreement may constitute a cross-default under other debt agreements resulting in an acceleration of payments under the other agreements. As of December 31, 2016 , SFC was in compliance with all of the covenants under our debt agreements. Junior Subordinated Debenture In January of 2007, SFC issued $350 million aggregate principal amount of 60 -year junior subordinated debenture (the “debenture”) under an indenture dated January 22, 2007 (the “Junior Subordinated Indenture”), by and between SFC and Deutsche Bank Trust Company, as trustee. The debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the debenture at par beginning in January of 2017. Pursuant to the terms of the debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the debenture (and not make dividend payments to SFI) unless SFC obtains non-debt capital funding in an amount equal to all accrued and unpaid interest on the debenture otherwise payable on the next interest payment date and pays such amount to the holders of the debenture. A mandatory trigger event occurs if SFC’s (i) tangible equity to tangible managed assets is less than 5.5% or (ii) average fixed charge ratio is not more than 1.10 x for the trailing four quarters. Based upon SFC’s financial results for the 12 months ended September 30, 2016, a mandatory trigger event did not occur with respect to the interest payment due in January of 2017, as SFC was in compliance with both required ratios discussed above. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that we are the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. We are deemed to be the primary beneficiary of each VIE because we have the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s and its affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any subordinated debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments (the “waterfall”). The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our subordinated and residual retained interests. We have no obligation to repurchase or replace qualified finance receivables that subsequently become delinquent or are otherwise in default. We parenthetically disclose on our consolidated balance sheets the VIE’s assets that can only be used to settle the VIE’s obligations and liabilities if its creditors have no recourse against the primary beneficiary’s general credit. The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2016 2015 Assets Cash and cash equivalents $ 2 $ 7 Finance receivables: Personal loans 2,943 3,621 SpringCastle Portfolio — 1,703 Allowance for finance receivable losses 94 128 Finance receivables held for sale — 435 Restricted cash and cash equivalents 211 282 Other assets 9 48 Liabilities Long-term debt $ 2,675 $ 5,513 Other liabilities 7 9 SECURITIZED BORROWINGS Our asset-backed notes issued in securitizations contain a revolving period ranging from 2 to 5 years during which no principal payments are required to be made on the notes. The indentures governing the secured borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. Our securitized borrowings at December 31, 2016 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2014-A (a) $ 217 2.78 % 2 years SLFT 2015-A (b) 1,163 3.47 % 3 years SLFT 2015-B (c) 314 3.78 % 5 years SLFT 2016-A (d) 500 3.10 % 2 years Total consumer securitizations 2,194 Auto Securitization: ODART 2016-1 (e) 493 2.37 % not applicable Total secured structured financings (f) (g) $ 2,687 (a) SLFT 2014-A Securitization. On March 26, 2014, we issued $ 592 million of notes backed by personal loans. The notes mature in December 2022. We initially retained $ 33 million of the asset-backed notes. (b) SLFT 2015-A Securitization. On February 26, 2015, we issued $ 1.2 billion of notes backed by personal loans. The notes mature in November 2024. (c) SLFT 2015-B Securitization. On April 7, 2015, we issued $ 314 million of notes backed by personal loans. The notes mature in May 2028. (d) SLFT 2016-A Securitization. On December 14, 2016, we issued $ 532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $ 32 million of the asset-backed notes. (e) ODART 2016-1 Securitization. On July 19, 2016, we issued $ 754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $ 54 million of the Class D notes. (f) Call of 2013-B Notes. On February 16, 2016, we exercised our right to redeem the asset-backed notes issued in June 2013 by the Springleaf Funding Trust 2013-B (the “2013-B Notes”) for a redemption price of $371 million . The outstanding principal balance of the asset-backed notes was $400 million on the date of the optional redemption. (g) Deconsolidation of SCFT 2014-A Notes. As a result of the SpringCastle Interests Sale, we deconsolidated the previously issued securitized interests of the SpringCastle Funding asset-backed notes (the “SCFT 2014-A Notes”) on March 31, 2016. REVOLVING CONDUIT FACILITIES As of December 31, 2016 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End First Avenue Funding LLC (a) $ 250 $ — June 2018 Midbrook 2013-VFN1 Trust (b) 100 — February 2018 Second Avenue Funding LLC 250 — June 2018 Springleaf 2013-VFN1 Trust (c) 850 — January 2018 Sumner Brook 2013-VFN1 Trust 350 — January 2018 Whitford Brook 2014-VFN1 Trust (d) 250 — June 2018 Seine River Funding, LLC (e) 500 — December 2019 Total (f) $ 2,550 $ — (a) First Avenue Funding LLC. On June 30, 2016, we amended the note purchase agreement with the First Avenue Funding LLC (“First Avenue”) to extend the revolving period ending in March 2018 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue. (b) Midbrook 2013-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Midbrook Funding Trust 2013-VFN1 to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. On December 20, 2016, we voluntarily reduced the maximum principal balance available under the variable funding notes from $300 million to $100 million . On February 24, 2017, the maximum principal balance will automatically decrease from $100 million to $50 million . Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. (c) Springleaf 2013-VFN1 Trust. On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to the satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. (d) Whitford Brook 2014-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Whitford Brook Funding Trust 2014-VFN1 to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12 th month following the end of the revolving period. (e) Seine River Funding, LLC. On December 22, 2016, we entered into a loan and security agreement (the “Seine River LSA”) with third party lenders pursuant to which we may borrow up to a maximum principal balance of $ 500 million . Any amounts borrowed under the Seine River LSA will be backed by personal loans acquired from subsidiaries of SFC from time to time. Following the revolving period, the principal balance of any outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in December 2022. (f) Termination of Mill River 2015-VFN1 Trust. On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million . On December 20, 2016, we voluntarily terminated the note purchase agreement with the Mill River 2015-VFN1 Trust. VIE INTEREST EXPENSE Other than our retained subordinate and residual interests in the remaining consolidated VIEs, we are under no obligation, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $122 million in 2016 , $184 million in 2015 , and $163 million in 2014 . DECONSOLIDATED VIES As a result of the SpringCastle Interests Sale on March 31, 2016, we deconsolidated the securitization trust holding the underlying loans of the SpringCastle Portfolio and previously issued securitized interests, which were reported in long-term debt. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Insurance | Insurance INSURANCE RESERVES Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2016 2015 Finance receivable related: Payable to SFC: Unearned premium reserves $ 189 $ 222 Claim reserves 23 28 Subtotal (a) 212 250 Payable to OMH: Unearned premium reserves (b) 6 — Payable to third-party beneficiaries: Unearned premium reserves 25 — Benefit reserves 105 113 Claim reserves 6 4 Subtotal (b) 136 117 Non-finance receivable related: Benefit reserves 65 72 Claim reserves 41 41 Subtotal (b) 106 113 Total $ 460 $ 480 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. Our insurance subsidiaries enter into reinsurance agreements with other insurers. Reserves related to unearned premiums, claims and benefits assumed from non-affiliated insurance companies totaled $52 million and $58 million at December 31, 2016 and 2015 , respectively. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $22 million at December 31, 2016 and 2015. Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): (dollars in millions) At or for the Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 73 $ 70 $ 68 Less reinsurance recoverables (22 ) (22 ) (22 ) Net balance at beginning of period 51 48 46 Additions for losses and loss adjustment expenses incurred to: Current year 65 64 65 Prior years * — — (3 ) Total 65 64 62 Reductions for losses and loss adjustment expenses paid related to: Current year (44 ) (40 ) (39 ) Prior years (24 ) (21 ) (21 ) Total (68 ) (61 ) (60 ) Net balance at end of period 48 51 48 Plus reinsurance recoverables 22 22 22 Balance at end of period $ 70 $ 73 $ 70 * Reflects a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2016 , were as follows: Years Ended December 31, At December 31, 2016 (dollars in millions) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2012 $ 39 $ 33 $ 32 $ 32 $ 33 $ — 19,981 2.8 % 2013 — 42 38 38 38 — 22,067 2.8 % 2014 — — 50 46 46 1 24,931 2.8 % 2015 — — — 54 50 5 26,180 2.8 % 2016 — — — — 55 20 24,235 2.6 % Total $ 222 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2016 , were as follows: Years Ended December 31, (dollars in millions) 2012 * 2013 * 2014 * 2015 * 2016 Credit Insurance Accident Year 2012 $ 20 $ 30 $ 32 $ 32 $ 32 2013 — 23 34 37 38 2014 — — 28 41 45 2015 — — — 31 45 2016 — — — — 36 Total $ 196 All outstanding liabilities before 2012, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 26 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2016 2015 * 2014 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 26 $ 29 $ 24 Other short-duration insurance lines 19 19 21 Total 45 48 45 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 22 22 22 Insurance lines other than short-duration 3 3 3 Total gross liability for unpaid claims and claim adjustment expense $ 70 $ 73 $ 70 * Unaudited. We use completion factors to estimate the unpaid claim liability for credit insurance and most other short-duration products. For some products, the unpaid claim liability is estimated as a percent of exposure. For the long-tailed Excess & Surplus products, which have a longer period of time before claims are paid, unpaid claim liabilities are estimated by a third party and reviewed by our appointed actuary using statistical analyses, including analysis of trends in loss severity and frequency. There have been no significant changes in methodologies or assumptions during 2016 . Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016 , were as follows: Years 1 2 3 4 5 Credit insurance 62.2 % 28.3 % 7.8 % 1.9 % 0.2 % STATUTORY ACCOUNTING Our insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana Department of Insurance (the “Indiana DOI”), which is a comprehensive basis of accounting other than GAAP. The primary differences between statutory accounting practices and GAAP are that under statutory accounting, policy acquisition costs are expensed as incurred, policyholder liabilities are generally valued using prescribed actuarial assumptions, and certain investment securities are reported at amortized cost. We are not required and did not apply purchase accounting to the insurance subsidiaries on a statutory basis. Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Property and casualty $ 11 $ 15 $ 16 Life and health 20 (1 ) (2 ) Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2016 2015 Property and casualty $ 63 $ 76 Life and health 133 123 Our insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2016 and 2015 , our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. DIVIDEND RESTRICTIONS State law restricts the amounts that our insurance subsidiaries, Yosemite Insurance Company (“Yosemite”) and Merit, may pay as dividends without prior notice to the Indiana DOI. The maximum amount of dividends (referred to as “ordinary dividends”) for an Indiana domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI prior to its payment. The maximum ordinary dividends for an Indiana domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI prior to its payment. These approved dividends are called “extraordinary dividends.” Our insurance subsidiaries paid extraordinary dividends to SFC totaling $63 million , $100 million , and $57 million during 2016, 2015, and 2014, respectively, and ordinary dividends of $18 million to SFC during 2014. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Components of other liabilities were as follows: (dollars in millions) December 31, 2016 2015 Accrued interest on debt $ 48 $ 55 Other accrued expenses and accounts payable 39 31 Retirement plans 31 55 Payables to parent and affiliates * 13 24 Loan principal warranty reserve 13 15 Salary and benefit liabilities 11 14 Other insurance liabilities 6 5 Other 24 17 Total $ 185 $ 216 * See Note 11 for further information on payables to parent and affiliates. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock SFC has two classes of authorized capital stock: special stock and common stock. SFC may issue special stock in series. The SFC board of directors determines the dividend, liquidation, redemption, conversion, voting and other rights prior to issuance. Par value and shares authorized at December 31, 2016 were as follows: Special Stock Common Stock Par value $ — $ 0.50 Shares authorized 25,000,000 25,000,000 Shares issued and outstanding were as follows: Special Stock Common Stock December 31, 2016 2015 2016 2015 Shares issued and outstanding — — 10,160,021 10,160,020 During 2016 and 2014, SFC received capital contributions from SFI totaling $10 million and $22 million , respectively, to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt. On July 31, 2014, SFI made a capital contribution to SFC, consisting of 100 shares of the common stock, par value of $0.01 per share, of SAC representing all of the issued and outstanding shares of capital stock of SAC. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2016 Balance at beginning of period $ (9 ) $ (19 ) $ 4 $ (24 ) Other comprehensive income before reclassifications 11 15 — 26 Reclassification adjustments from accumulated other comprehensive income (loss) (5 ) — (4 ) (9 ) Balance at end of period $ (3 ) $ (4 ) $ — $ (7 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (12 ) (6 ) — (18 ) Reclassification adjustments from accumulated other comprehensive income (loss) (9 ) — — (9 ) Balance at end of period $ (9 ) $ (19 ) $ 4 $ (24 ) Year Ended December 31, 2014 Balance at beginning of period $ 4 $ 20 $ 4 $ 28 Other comprehensive income (loss) before reclassifications 13 (33 ) — (20 ) Reclassification adjustments from accumulated other comprehensive income (5 ) — — (5 ) Balance at end of period $ 12 $ (13 ) $ 4 $ 3 Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 8 $ 14 $ 8 Income tax effect (3 ) (5 ) (3 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 5 9 5 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues 4 — — Total $ 9 $ 9 $ 5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes OMH and all of its eligible domestic U.S. subsidiaries, including SFC, file a consolidated life/non-life federal tax return with the Internal Revenue Service (“IRS”). Income taxes from the consolidated federal and state tax returns are allocated to the eligible subsidiaries under a tax sharing agreement with OMH. Our foreign subsidiaries file tax returns in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. The Company recognizes a deferred tax liability for the undistributed earnings of its foreign operations, if any, as we do not consider the amounts to be permanently reinvested. As of December 31, 2016 , the Company had no undistributed foreign earnings. Components of income before provision for income taxes were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Income before provision for income taxes - U.S. operations $ 347 $ 152 $ 676 Income (loss) before provision for income taxes - foreign operations (1 ) 7 2 Total $ 346 $ 159 $ 678 Components of provision for income taxes were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Current: Federal $ 181 $ 63 $ 228 Foreign * — — — State 15 5 17 Total current 196 68 245 Deferred: Federal (77 ) (46 ) (10 ) Foreign * — — — State (6 ) (4 ) (2 ) Total deferred (83 ) (50 ) (12 ) Total $ 113 $ 18 $ 233 * Provision for foreign income taxes was less than $1 million and, therefore, is not quantified in the table above. Expense from foreign income taxes includes our foreign subsidiaries that operate in Puerto Rico, the U.S. Virgin Islands, and the United Kingdom. Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: Years Ended December 31, 2016 2015 2014 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Non-controlling interests (2.86 ) (27.91 ) (2.51 ) State income taxes, net of federal 1.66 0.23 1.50 Tax impact of United Kingdom subsidiary liquidation (0.62 ) — — Excess tax benefit on share-based compensation (0.20 ) — — Nontaxable investment income (0.12 ) (0.29 ) (0.14 ) Nondeductible compensation — 3.39 — Other, net (0.10 ) 0.70 0.52 Effective income tax rate 32.76 % 11.12 % 34.37 % The effective tax rate for 2016, 2015, and 2014 differed from the federal statutory rate primarily due to the effects of the non-controlling interest in the previously owned SpringCastle Portfolio and state income taxes. The effective tax rate is based on income (loss) before taxes, which includes income (loss) attributable to non-controlling interests. The income (loss) attributable to the non-controlling interest is not included in the taxable income in SFC, resulting in variances from the federal statutory rate of (2.86)% , (27.91)% , and (2.51)% in 2016, 2015, and 2014, respectively. The difference in the impact on the effective tax rate due to non-controlling interest in 2016 as compared to 2015 is due to the fact that the net income attributable to non-controlling interest was a smaller percentage of the total income (loss) in 2016 compared to 2015. The difference in the impact on the effective tax rate due to non-controlling interest in 2015 as compared to 2014 is due to the fact that the net income attributable to non-controlling interest was a greater percentage of the total income (loss) before taxes in 2015 as compared to 2014. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 9 $ 4 $ 2 Increases in tax positions for current years 2 4 — Increases in tax positions for prior years — 4 3 Decreases in tax positions for prior years — (2 ) — Settlements with tax authorities — (1 ) — Lapse in statute of limitations — — (1 ) Balance at end of year $ 11 $ 9 $ 4 Our gross unrecognized tax benefits include interest and penalties. We recognize interest and penalties related to gross unrecognized tax benefits in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next twelve months is not expected to be material to our consolidated financial statements. We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the IRS. Management believes it has adequately provided for taxes for such year. No specific examination issue or adjustment has been identified to date. We are not currently under examination by any state taxing authority. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 77 $ 95 Mark-to-market 55 — State taxes, net of federal 27 19 Pension/employee benefits 13 26 Legal and warranty reserve 6 6 Federal and foreign net operating losses and tax attributes 3 16 Capital loss carryforward — 27 Joint venture — 8 Deferred insurance commissions — 5 Payment protection insurance liability — 2 Other 2 8 Total 183 212 Deferred tax liabilities: Debt fair value adjustment 118 150 Impact of tax accounting method change 38 76 Discount - debt exchange 16 20 Insurance reserves 14 15 Other intangible assets 5 5 Mark-to-market — 21 Other 5 — Total 196 287 Net deferred tax liabilities before valuation allowance (13 ) (75 ) Valuation allowance (29 ) (38 ) Net deferred tax liabilities $ (42 ) $ (113 ) The gross deferred tax liabilities are expected to reverse in time, and projected taxable income is expected to be sufficient to create positive taxable income, which will allow for the realization of all of our gross federal deferred tax assets and a portion of the state deferred tax assets. During 2016, we liquidated our United Kingdom operations. As such, there are no net operating loss carryforwards (and no offsetting valuation allowances) related to our United Kingdom operations at December 31, 2016. We had no remaining federal capital loss carryforwards at December 31, 2016 , as compared to $78 million at December 31, 2015 . During 2016, we utilized the federal capital loss to offset the capital gain generated through the tax accounting method change and the SpringCastle Interests Sale. At December 31, 2016 , we had state net operating loss carryforwards of $610 million , compared to $548 million at December 31, 2015 . The state net operating loss carryforwards expire between 2018 and 2037. We had a valuation allowance on our gross state deferred tax assets, net of deferred federal tax benefit of $26 million and $22 million at December 31, 2016 and 2015 , respectively. The total valuation allowance was established based on management’s determination that the deferred tax assets are more likely than not to not be realized. |
Lease Commitments, Rent Expense
Lease Commitments, Rent Expense, and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Commitments, Rent Expense, and Contingent Liabilities | Lease Commitments, Rent Expense, and Contingent Liabilities LEASE COMMITMENTS AND RENT EXPENSE Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments First quarter 2017 $ 5 Second quarter 2017 5 Third quarter 2017 5 Fourth quarter 2017 5 2017 20 2018 16 2019 10 2020 6 2021 2 2022+ 1 Total $ 55 In addition to rent, we pay taxes, insurance, and maintenance expenses under certain leases. In the normal course of business, we will renew leases that expire or replace them with leases on other properties. Rental expense totaled $28 million in 2016 , $28 million in 2015 , and $29 million in 2014 . LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and we can reasonably estimate the amount of that loss, we accrue the estimated loss by a charge to income. In many actions, however, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the amount of any loss. In addition, even where loss is reasonably possible or an exposure to loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, it is not always possible to reasonably estimate the size of the possible loss or range of loss. For certain legal actions, we cannot reasonably estimate such losses, particularly for actions that are in their early stages of development or where plaintiffs seek substantial or indeterminate damages. Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing novel or unsettled legal questions relevant to the actions in question, before a loss or additional loss or range of loss or additional loss can be reasonably estimated for any given action. For certain other legal actions, we can estimate reasonably possible losses, additional losses, ranges of loss or ranges of additional loss in excess of amounts accrued, but do not believe, based on current knowledge and after consultation with counsel, that such losses will have a material adverse effect on our consolidated financial statements as a whole. SALES RECOURSE OBLIGATIONS Real Estate Loan Sales During 2014, we established a reserve for sales recourse obligations of $22 million related to the real estate loan sales in 2014. We did not establish an additional reserve for sales recourse obligations associated with the August 2016 Real Estate Loan Sale or the December 2016 Real Estate Loan Sale. At December 31, 2016 , our reserve for sales recourse obligations totaled $13 million , which primarily related to the real estate loan sales in 2014. During 2016, we had no repurchase activity. During 2015, we repurchased 13 loans, totaling $1 million , associated with the real estate loan sales in 2014. During 2014, we had no repurchase activity associated with the sales of real estate loans in 2014; however, we repurchased 9 loans totaling $1 million during 2014 associated with other prior sales of finance receivables because these loans were reaching the defined delinquency limits or had breached the contractual representations and warranties under the loan sale agreements. At December 31, 2016 , there were no material recourse requests with loss exposure that management believed would not be covered by the reserve. However, we will continue to monitor any repurchase activity in the future and will adjust the reserve accordingly. When recourse losses are reasonably possible or exposure to such losses exists in excess of the liability already accrued, it is not always possible to reasonably estimate the size of the possible recourse losses or range of losses. The activity in our reserve for sales recourse obligations primarily associated with the real estate loan sales during 2014 was as follows: (dollars in millions) At or for the Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 15 $ 24 $ 5 Recourse losses — (2 ) — Provision for recourse obligations, net of recoveries * (2 ) (7 ) 19 Balance at end of period $ 13 $ 15 $ 24 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. Lendmark Sale We did not establish a reserve for sales recourse obligations associated with the personal loans sold in the Lendmark Sale in May 2016 due to the higher credit quality of the personal loans sold. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans PENSION PLANS Retirement Plan The Springleaf Financial Services Retirement Plan (the ”Retirement Plan”) is a noncontributory defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”). Effective December 31, 2012, the Retirement Plan was frozen. U.S. salaried employees who were employed by a participating company, had attained age 21 , and completed twelve months of continuous service were eligible to participate in the plan. Employees generally vested after 5 years of service. Prior to January 1, 2013, unreduced benefits were paid to retirees at normal retirement (age 65 ) and were based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Our current and former employees will not lose any vested benefits in the Retirement Plan that accrued prior to January 1, 2013. CommoLoCo Retirement Plan The CommoLoCo Retirement Plan is a noncontributory defined benefit plan which is subject to the provisions of the Puerto Rico tax code. Effective December 31, 2012, the CommoLoCo Retirement Plan was frozen. Puerto Rican residents employed by CommoLoCo, Inc., our Puerto Rican subsidiary, who had attained age 21 and completed one year of service were eligible to participate in the plan. Our current and former employees in Puerto Rico will not lose any vested benefits in the CommoLoCo Retirement Plan that accrued prior to January 1, 2013. Unfunded Defined Benefit Plans We sponsor unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by our other retirement plans. These include: (i) Springleaf Financial Services Excess Retirement Income Plan (the “Excess Retirement Income Plan”), which provides a benefit equal to the reduction in benefits payable to certain employees under our qualified retirement plan as a result of federal tax limitations on compensation and benefits payable; and (ii) the Supplemental Executive Retirement Plan (“SERP”), which provides additional retirement benefits to designated executives. Benefits under the Excess Retirement Income Plan were frozen as of December 31, 2012, and benefits under the SERP were frozen at the end of August 2004. 401(K) PLANS We sponsor voluntary savings plans for our U.S. employees and for our employees of CommoLoCo, Inc. Springleaf Financial Services 401(k) Plan The Springleaf Financial Services 401(k) Plan (the “401(k) Plan”) for 2016, 2015, and 2014 provided for a 100% Company matching on the first 4% of the salary reduction contributions of the employees. We do not anticipate any changes to the Company’s matching contributions for 2017 . In addition, the Company may make a discretionary profit sharing contribution to the 401(k) Plan. The Company has full discretion to determine whether to make such a contribution, and the amount of such contribution. In no event, however, will the discretionary profit sharing contribution exceed 4% of annual pay. In order to share in the retirement contribution, employees must have satisfied the 401(k) Plan’s eligibility requirements and be employed on the last day of the year. The employees are not required to contribute any money to the 401(k) Plan in order to qualify for the Company profit sharing contribution. The discretionary profit sharing contribution will be divided among participants eligible to share in the contribution for the year in the same proportion that the participant’s pay bears to the total pay of all participants. This means the amount allocated to each eligible participant’s account will, as a percentage of pay, be the same. The salaries and benefit expense associated with this plan was $4 million in 2016 , $5 million in 2015 , and $4 million in 2014 . CommoLoCo Thrift Plan The CommoLoCo Thrift Plan provides for salary reduction contributions by employees and 100% matching contributions by the Company of up to 3% of annual salary and 50% matching contributions by the Company of the next 3% of annual salary depending on the respective employee’s years of service. There was no salaries and benefit expense associated with this plan for 2016 , and this expense was immaterial in 2015 and 2014 . We do not anticipate any changes to the Company’s matching contributions for 2017 . OBLIGATIONS AND FUNDED STATUS The following table presents the funded status of the defined benefit pension plans and other postretirement benefit plans. The funded status of the plans is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. (dollars in millions) Pension (a) Postretirement (b) At or for the Years Ended December 31, 2016 2015 2014 2014 Projected benefit obligation, beginning of period $ 388 $ 409 $ 323 $ 2 Interest cost 16 15 15 — Actuarial loss (gain) (6 ) (24 ) 83 — Benefits paid: Plan assets (13 ) (12 ) (12 ) — Curtailment — — — (2 ) Projected benefit obligation, end of period 385 388 409 — Fair value of plan assets, beginning of period 333 359 317 — Actual return on plan assets, net of expenses 33 (15 ) 54 — Company contributions 1 1 — — Benefits paid: Plan assets (13 ) (12 ) (12 ) — Fair value of plan assets, end of period 354 333 359 — Funded status, end of period $ (31 ) $ (55 ) $ (50 ) $ — Other liabilities recognized in the consolidated balance sheet $ (31 ) $ (55 ) $ (50 ) $ — Pretax net loss recognized in accumulated other comprehensive income or loss $ (7 ) $ 29 $ (19 ) $ — (a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2016 , 2015 , and 2014. (b) We do not currently fund postretirement benefits. The accumulated benefit obligation for U.S. pension benefit plans was $385 million at December 31, 2016 and $388 million at December 31, 2015 . Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2016 2015 Projected benefit obligation $ 385 $ 388 Accumulated benefit obligation 385 388 Fair value of plan assets 354 333 The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: (dollars in millions) Pension Postretirement Years Ended December 31, 2016 2015 2014 2014 Components of net periodic benefit cost: Interest cost $ 16 $ 15 $ 15 $ — Expected return on assets (17 ) (19 ) (16 ) — Curtailment gain — — — (2 ) Settlement gain — — — (4 ) Net periodic benefit cost (1 ) (4 ) (1 ) (6 ) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (22 ) 9 46 — Net settlement gain — — — 4 Total recognized in other comprehensive income or loss (22 ) 9 46 4 Total recognized in net periodic benefit cost and other comprehensive income or loss $ (23 ) $ 5 $ 45 $ (2 ) We have made the following estimates relating to our combined defined benefit pension plans and our defined benefit postretirement plans: • the estimated net loss that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be less than $1 million for our combined defined benefit pension plans; • the estimated prior service credit that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year will be zero for our combined defined benefit pension plans; and • the estimated amortization from accumulated other comprehensive income or loss for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be zero for our defined benefit postretirement plans. Assumptions The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension Postretirement December 31, 2016 2015 2016 2015 Projected benefit obligation: Discount rate 4.04 % 4.26 % * 3.45 % Rate of compensation increase — — * * Net periodic benefit costs: Discount rate 4.26 % 3.89 % * 3.80 % Expected long-term rate of return on plan assets 5.27 % 5.27 % * * Rate of compensation increase (average) — — * * * Not applicable Discount Rate Methodology The projected benefit cash flows were discounted using the spot rates derived from the unadjusted Citigroup Pension Discount Curve at December 31, 2016 and an equivalent weighted average discount rate was derived that resulted in the same liability. This single discount rate for each plan was used. Investment Strategy The investment strategy with respect to assets relating to our pension plans is designed to achieve investment returns that will (i) provide for the benefit obligations of the plans over the long term; (ii) limit the risk of short-term funding shortfalls; and (iii) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. Allocation of Plan Assets The long-term strategic asset allocation is reviewed and revised annually. The plans’ assets are monitored by our Retirement Plans Committee and the investment managers, which can entail allocating the plans assets among approved asset classes within pre-approved ranges permitted by the strategic allocation. At December 31, 2016 , the actual asset allocation for the primary asset classes was 90% in fixed income securities, 9% in equity securities, and 1% in cash and cash equivalents. The 2017 target asset allocation for the primary asset classes is 89% in fixed income securities and 11% in equity securities. The actual allocation may differ from the target allocation at any particular point in time. The expected long-term rate of return for the plans was 5.3% for the Retirement Plan and 5.8% for the CommoLoCo Retirement Plan for 2016 . The expected rate of return is an aggregation of expected returns within each asset class category. The expected asset return and any contributions made by the Company together are expected to maintain the plans’ ability to meet all required benefit obligations. The expected asset return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns. While the assessment of the expected rate of return is long-term and thus not expected to change annually, significant changes in investment strategy or economic conditions may warrant such a change. Expected Cash Flows Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans’ payments and postretirement plan payments are deductible when paid. The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2016 are as follows: (dollars in millions) Pension 2017 $ 15 2018 15 2019 16 2020 16 2021 17 2022-2026 90 FAIR VALUE MEASUREMENTS — PLAN ASSETS The inputs and methodology used in determining the fair value of the plan assets are consistent with those used to measure our assets. The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2016 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 17 — 17 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 310 — 310 U.S. high yield (d) — 9 — 9 Total $ 3 $ 351 $ — $ 354 December 31, 2015 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 16 — 16 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 291 — 291 U.S. high yield (d) — 8 — 8 Total $ 3 $ 330 $ — $ 333 (a) Includes index mutual funds that primarily track several indices including Standard and Poor’s Rating Services (“S&P”) 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation OMNIBUS INCENTIVE PLAN In 2013, OMH adopted the 2013 Omnibus Incentive Plan, which was amended and restated effective as of May 25, 2016 (the “Omnibus Plan”) under which equity-based awards are granted to selected management employees, non-employee directors, independent contractors, and consultants. The amendment and restatement of the Omnibus Plan (i) extended the term of the Omnibus Plan from October 2023 to May 2026 and (ii) limited the number of cash and equity-based awards under the Omnibus Plan valued at more than $500,000 to non-employee directors during the calendar year. As of December 31, 2016 , 13,010,543 shares of common stock were reserved for issuance under the Omnibus Plan, including 1,790,868 shares subject to outstanding equity awards. The amount of shares reserved is adjusted annually at the beginning of the year by a number of shares equal to the excess of 10% of the number of outstanding shares on the last day of the previous fiscal year over the number of shares reserved and available for issuance as of the last day of the previous fiscal year. The Omnibus Plan allows for issuance of stock options, RSUs and restricted stock awards (“RSAs”), stock appreciation rights, and other stock-based awards and cash awards. SFC participates in stock awards of OMH. Unless specifically noted, the following disclosures are based on all award activity of OMH. Service-based Awards In connection with the initial public offering on October 16, 2013 and subsequent to the offering, OMH has granted service-based RSUs and RSAs to certain of our executives and employees. The RSUs are subject to a graded vesting period of 4.2 years or less and do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The RSAs are subject to a graded vesting period of three years or less and provide the holders the right to vote and to earn dividends during the vesting period. The fair value for restricted units and awards is generally the closing market price of OMH’s common stock on the date of the award. For awards granted in connection with the initial public offering, the fair value is the offering price. Expense is amortized on a straight line basis over the vesting period, based on the number of awards that are ultimately expected to vest. The weighted-average grant date fair value of service-based awards issued in 2016 , 2015 , and 2014 was $26.14 , $47.44 , and $25.65 , respectively. The total fair value of service-based awards that vested during 2016 , 2015 , and 2014 was $10 million , $7 million , and $1 million , respectively. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2016 2,007,927 $ 33.94 Granted 59,315 26.14 Vested (441,944 ) 22.77 Forfeited (242,378 ) 41.49 Unvested at December 31, 2016 1,382,920 35.86 2.13 Performance-based Awards During 2015 and 2014 , OMH awarded PRSUs that may be earned based on the financial performance of OMH. Certain PRSUs are subject to the achievement of performance goals during the period between the grant date and December 31, 2016. These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2016, whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2016, 2017, and 2018; therefore, a separate requisite service period exists for each year that begins on January 1 of the respective performance year. Vesting for these awards will occur on the filing date of this Annual Report on Form 10-K that occurs after the performance year or the date the actual performance outcome is determined, whichever is later. All of the PRSUs allow for partial vesting if a minimum level of performance is attained. The PRSUs do not provide the holders with any rights as shareholders, including the right to earn dividends during the vesting period. The fair value for PRSUs is based on the closing market price of our stock on the date of the award. Expense for performance-based shares is recognized over the requisite service period when it is probable that the performance goals will be achieved and is based on the total number of units expected to vest. Expense for awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. If minimum targets are not achieved by the end of the respective performance periods, all unvested shares related to those targets will be forfeited and cancelled, and all expense recognized to that date is reversed. No performance shares were granted during 2016 . The weighted average grant date fair value of performance-based awards issued in 2015 and 2014 was $ 34.45 and $25.78 , respectively. The total fair value of performance-based awards that vested during 2016 was $4 million . No performance-based awards vested in 2015 or 2014 . The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2016 581,113 $ 25.79 Vested (164,673 ) 25.10 Forfeited (8,492 ) 31.62 Unvested at December 31, 2016 407,948 25.94 1.71 Total share-based compensation expense, net of forfeitures, for all stock-based awards totaled $2 million , $2 million , and $1 million , respectively, during 2016 , 2015 , and 2014 . The total income tax benefit recognized for stock-based compensation was $1 million in 2016 and 2015 , and less than $1 million in 2014 . As of December 31, 2016 , there was total unrecognized compensation expense of $2 million related to nonvested restricted stock that is expected to be recognized over a weighted average period of 2.1 years . OMH Incentive Units In the fourth quarter of 2015, certain executives of the Company surrendered a portion of their incentive units in the Initial Stockholder and certain additional executives of the Company received a grant of incentive units in the Initial Stockholder. These incentive units are intended to encourage the executives to create sustainable, long-term value for the Company by providing them with interests that are subject to their continued employment with the Company and that only provide benefits (in the form of distributions) if the Initial Stockholder makes distributions to one or more of its common members that exceed specified amounts. The incentive units are entitled to vote together with the holders of common units in the Initial Stockholder as a single class on all matters. The incentive units may not be sold or otherwise transferred and the executives are entitled to receive these distributions only while they are employed with the Company, unless the executive’s termination of employment results from the executive’s death, in which case the executive’s beneficiaries will be entitled to receive any future distributions. Because the incentive units only provide economic benefits in the form of distributions while the holders are employed, and the holder generally does not have the ability to monetize the incentive units due to the transfer restrictions, the substance of the arrangement is that of a profit sharing agreement. These incentive units are subject to their continued employment with the Company and, in the case of the incentive units issued in 2015, the continued employment of both Jay Levine and John Anderson. These incentive units provide benefits (in the form of distributions) in the event the Initial Stockholder makes distributions to one or more of its members that exceed certain specified amounts. In connection with the sale of our common stock by the Initial Stockholder, certain of the specified thresholds were satisfied. In accordance with ASC Topic 710, Compensation-General, we recorded non-cash incentive compensation expense of $15 million in 2015 related to the incentive units. No expense was recognized for these awards during 2016 or 2014. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At December 31, 2016, our three segments included: • Consumer and Insurance — We originate and service personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. We also offer credit insurance (life insurance, disability insurance, and involuntary unemployment insurance), non-credit insurance, and ancillary products, such as auto membership plans. Branch operations primarily conduct business in 28 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 — SFI services the SpringCastle Portfolio that was acquired by an indirect subsidiary of OMH through a joint venture in which SFC previously owned a 47% equity interest. On March 31, 2016, the SpringCastle Portfolio was sold in connection with the sale of our equity interest in the SpringCastle Joint Venture. These loans consist of unsecured loans and loans secured by subordinate residential real estate mortgages and include both closed-end accounts and open-end lines of credit. These loans are in a liquidating status and vary in substance and form from our originated loans. Unless SFI is terminated, SFI will continue to provide the servicing for these loans pursuant to a servicing agreement, which SFI services as unsecured loans because the liens are subordinated to superior ranking security interests. • Real Estate — We service and hold real estate loans secured by first or second mortgages on residential real estate. Real estate loans previously originated through our branch offices or previously acquired or originated through centralized distribution channels are serviced by: (i) MorEquity and subserviced by Nationstar; (ii) Select Portfolio Servicing, Inc.; or (iii) our centralized operations. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. Prior to the OneMain Acquisition, this segment also included proceeds from the sale of our real estate loans in 2014. OMH used these proceeds to acquire OneMain. The remaining components (which we refer to as “Other”) consist of our other non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our three segments. These operations include: (i) our legacy operations in 14 states where we also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary, prior to its liquidation on August 16, 2016. The accounting policies of the segments are the same as those disclosed in Note 3, except as described below. Due to the nature of the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, Real Estate, and Other using a “Segment Accounting Basis,” which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). These allocations and adjustments currently have a material effect on our reported segment basis income as compared to GAAP. We believe a Segment Accounting Basis (a basis other than GAAP) provides investors a consistent basis on which management evaluates segment performance. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance, Real Estate and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Consumer and Insurance - receives remainder of unallocated average debt; and l Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) The net effect of the change in debt allocation and asset base methodologies for 2015, had it been in place as of the beginning of the year, would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively. For the period third quarter 2014 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equaled 83%, up to 100% and 100% of each of its respective asset base. Any excess was allocated to Consumer and Insurance. Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt. Asset base represented the following: l Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; l Real Estate - average net finance receivables, including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and l Other - average net finance receivables other than the periods listed below: l May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents, less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents, less operating cash reserve and cash included in other segments. Prior to third quarter 2014 The ratio of each segment average net finance receivables to total average net finance receivables was applied to average total debt to calculate the average segment debt. Average unsecured debt was allocated after average securitized debt and secured term loan to achieve the calculated average segment debt. Provision for finance receivable losses Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which are allocated to the segments based on the interest expense allocation of debt. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. The “Segment to GAAP Adjustment” column in the following tables primarily consists of: • Interest income - reverses the impact of premiums/discounts on purchased finance receivables and the interest income recognition under guidance in ASC 310-20, Nonrefundable Fees and Other Costs , and ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , and reestablishes interest income recognition on a historical cost basis; • Interest expense - reverses the impact of premiums/discounts on acquired long-term debt and reestablishes interest expense recognition on a historical cost basis; • Provision for finance receivable losses - reverses the impact of providing an allowance for finance receivable losses upon acquisition and reestablishes the allowance on a historical cost basis and reverses the impact of recognition of net charge-offs on purchased credit impaired finance receivables and reestablishes the net charge-offs on a historical cost basis; • Other revenues - reestablishes the historical cost basis of mark-to-market adjustments on finance receivables held for sale and on realized gains/losses associated with our investment portfolio; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the Fortress Acquisition. The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 1,192 $ 102 $ 47 $ 4 $ 5 $ 1,350 Interest expense 402 20 43 9 82 556 Provision for finance receivable losses 305 14 6 — 4 329 Net interest income (loss) after provision for finance receivable losses 485 68 (2 ) (5 ) (81 ) 465 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues * 219 — (29 ) 208 9 407 Other expenses 648 16 28 1 — 693 Income (loss) before provision for (benefit from) income taxes 56 219 (59 ) 202 (72 ) 346 Income before provision for income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 56 $ 191 $ (59 ) $ 202 $ (72 ) $ 318 Assets $ 5,494 $ — $ 361 $ 3,932 $ (68 ) $ 9,719 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2015 Interest income $ 1,115 $ 455 $ 68 $ 8 $ — $ 11 $ 1,657 Interest expense 190 87 213 55 (5 ) 127 667 Provision for finance receivable losses 255 68 (2 ) 1 — 17 339 Net interest income (loss) after provision for finance receivable losses 670 300 (143 ) (48 ) 5 (133 ) 651 Other revenues 212 5 4 42 (5 ) (15 ) 243 Other expenses 622 61 33 17 — 2 735 Income (loss) before provision for (benefit from) income taxes 260 244 (172 ) (23 ) — (150 ) 159 Income before provision for income taxes attributable to non-controlling interests — 127 — — — — 127 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 260 $ 117 $ (172 ) $ (23 ) $ — $ (150 ) $ 32 Assets $ 5,632 $ 1,784 $ 711 $ 4,119 $ — $ (58 ) $ 12,188 At or for the Year Ended December 31, 2014 Interest income $ 911 $ 212 $ 401 $ 16 $ — $ 85 $ 1,625 Interest expense 163 36 349 7 (5 ) 133 683 Provision for finance receivable losses 200 36 128 7 — (19 ) 352 Net interest income (loss) after provision for finance receivable losses 548 140 (76 ) 2 5 (29 ) 590 Other revenues 215 (15 ) 162 6 (5 ) 382 745 Other expenses 523 30 91 10 — 3 657 Income (loss) before provision for (benefit from) income taxes 240 95 (5 ) (2 ) — 350 678 Income before provision for income taxes attributable to non-controlling interests — 48 — — — — 48 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 240 $ 47 $ (5 ) $ (2 ) $ — $ 350 $ 630 Assets $ 4,218 $ 2,536 $ 3,665 $ 555 $ — $ 24 $ 10,998 * Other revenues reported in “Other” primarily includes interest income on the Cash Services Note (previously referred to as the “Independence Demand Note”) and on SFC’s note receivable from SFI. See Note 11 for further information on the notes receivable from parent and affiliates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. See Note 3 for a discussion of the accounting policies related to fair value measurements, which includes the valuation process and the inputs used to develop our fair value measurements. The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2016 Assets Cash and cash equivalents $ 198 $ 42 $ — $ 240 $ 240 Investment securities — 580 2 582 582 Net finance receivables, less allowance for finance receivable losses — — 5,122 5,122 4,755 Finance receivables held for sale — — 159 159 153 Notes receivable from parent and affiliates — 3,723 — 3,723 3,723 Restricted cash and cash equivalents 227 — — 227 227 Other assets: Commercial mortgage loans — — 24 24 24 Escrow advance receivable — — 10 10 10 Receivables from parent and affiliates — 40 — 40 40 Receivables related to sales of real estate loans and related trust assets — 1 — 1 3 Liabilities Long-term debt $ — $ 7,308 $ — $ 7,308 $ 6,837 Payables to parent and affiliates — 13 — 13 13 December 31, 2015 Assets Cash and cash equivalents $ 321 $ — $ — $ 321 $ 321 Investment securities — 602 2 604 604 Net finance receivables, less allowance for finance receivable losses — — 6,897 6,897 6,340 Finance receivables held for sale — — 819 819 793 Notes receivable from parent and affiliates — 3,804 — 3,804 3,804 Restricted cash and cash equivalents 295 — — 295 295 Other assets: Commercial mortgage loans — — 62 62 62 Escrow advance receivable — — 11 11 11 Receivables from parent and affiliates — 9 — 9 9 Receivables related to sales of real estate loans and related trust assets — 1 — 1 5 Liabilities Long-term debt $ — $ 9,998 $ — $ 9,998 $ 9,582 Payables to parent and affiliates — 24 — 24 24 FAIR VALUE MEASUREMENTS — RECURRING BASIS The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 119 $ — $ — $ 119 Cash equivalents securities — 42 — 42 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 13 — 13 Obligations of states, municipalities, and political subdivisions — 82 — 82 Non-U.S. government and government sponsored entities — 5 — 5 Corporate debt — 353 — 353 RMBS — 39 — 39 CMBS — 33 — 33 CDO/ABS — 46 — 46 Total bonds — 571 — 571 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 577 1 578 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 580 1 581 Restricted cash in mutual funds 212 — — 212 Total $ 331 $ 622 $ 1 $ 954 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2016 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2015 Assets Cash equivalents in mutual funds $ 224 $ — $ — $ 224 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 82 — 82 Obligations of states, municipalities, and political subdivisions — 89 — 89 Corporate debt — 267 — 267 RMBS — 74 — 74 CMBS — 44 — 44 CDO/ABS — 29 — 29 Total bonds — 585 — 585 Preferred stock — 5 — 5 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 590 1 591 Trading and other securities Bonds: Corporate debt — 10 — 10 CMBS — 2 — 2 Total trading and other securities (c) — 12 — 12 Total investment securities — 602 1 603 Restricted cash in mutual funds 276 — — 276 Total $ 500 $ 602 $ 1 $ 1,103 (a) Due to the insignificant activity within the Level 3 assets during 2015 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 , which is carried at cost. (c) The fair value of other securities totaled $2 million at December 31, 2015 . We had no transfers between Level 1 and Level 2 during 2016 and 2015 . FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2016 Assets Finance receivables held for sale $ — $ — $ 159 $ 159 $ 4 Real estate owned — — 5 5 2 Total $ — $ — $ 164 $ 164 $ 6 At or for the Year Ended December 31, 2015 Assets Real estate owned $ — $ — $ 11 $ 11 $ 3 Total $ — $ — $ 11 $ 11 $ 3 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. In accordance with the authoritative guidance for the accounting for the impairment of finance receivables held for sale, we wrote down certain finance receivables held for sale reported in our Real Estate segment to their fair value during the second quarter of 2016 and recorded the writedowns in other revenues. In accordance with the authoritative guidance for the accounting for the impairment of long-lived assets, we wrote down certain real estate owned reported in our Real Estate segment to their fair value less cost to sell during 2016 and 2015 and recorded the writedowns in other revenues. 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. The inputs and quantitative data used in our Level 3 valuations for our real estate owned and commercial mortgage loans are unobservable primarily due to the unique nature of specific real estate assets. Therefore, we used independent third-party providers, familiar with local markets, to determine the values used for fair value disclosures without adjustment. Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2016 and 2015 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2016 December 31, 2015 Finance receivables held for sale Income approach Market value for similar type loan transactions to obtain a price point * — Real estate owned Market approach Third-party valuation * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are 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 certain cash equivalents, approximates fair value. Mutual Funds The fair value of mutual funds is based on quoted market prices of the underlying shares held in the mutual funds. Investment Securities We utilize third-party valuation service providers to measure the fair value of our investment securities, which are classified as available-for-sale or as trading and other and consist primarily of bonds. Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure investment securities at fair value. We generally obtain market price data from exchange or dealer markets. We estimate the fair value of fixed maturity investment securities not traded in active markets by referring to traded securities with similar attributes, using dealer quotations and a matrix pricing methodology, or discounted cash flow analyses. This methodology considers such factors as the issuer’s industry, the security’s rating and tenor, its coupon rate, its position in the capital structure of the issuer, yield curves, credit curves, composite ratings, bid-ask spreads, prepayment rates and other relevant factors. For fixed maturity investment securities that are not traded in active markets or that are subject to transfer restrictions, we adjust the valuations to reflect illiquidity and/or non-transferability. Such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. We elect the fair value option for investment securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. The fair value of certain investment securities is based on the amortized cost, which is assumed to approximate fair value. Finance Receivables The fair value of net finance receivables, less allowance for finance receivable losses, for both non-impaired and purchased credit impaired finance receivables, is determined using discounted cash flow methodologies. The application of these methodologies requires us to make certain judgments and estimates based on our perception of market participant views related to the economic and competitive environment, the characteristics of our finance receivables, and other similar factors. The most significant judgments and estimates made relate to prepayment speeds, default rates, loss severity, and discount rates. The degree of judgment and estimation applied is significant in light of the current capital markets and, more broadly, economic environments. Therefore, the fair value of our finance receivables could not be determined with precision and may not be realized in an actual sale. Additionally, there may be inherent limitations in the valuation methodologies we employed, and changes in the underlying assumptions used could significantly affect the results of current or future values. Finance Receivables Held for Sale We determined the fair value of finance receivables held for sale that were originated as held for investment based on negotiations with prospective purchasers (if any) or by using projected cash flows discounted at the weighted-average interest rates offered by us in the market for similar finance receivables. We based cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Restricted Cash and Cash Equivalents The carrying amount of restricted cash and cash equivalents approximates fair value. Notes Receivable from Parent and Affiliates The carrying amount of the notes receivable from parent and affiliates approximates the fair value because the notes are payable on a demand basis prior to their due dates and the interest rates on these notes adjust with changing market interest rates. Commercial Mortgage Loans Given the short remaining average life of the portfolio, the carrying amount of commercial mortgage loans approximates fair value. The carrying amount includes an estimate for credit related losses, which is based on independent third-party valuations. Real Estate Owned We initially base our estimate of the fair value on independent third-party valuations at the time we take 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. We record at fair value long-term debt issuances that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. At December 31, 2016 , we had no debt carried at fair value under the fair value option. We estimate the fair values associated with variable rate revolving lines of credit to be equal to par. 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 | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events SECURITIZATIONS ODART 2017-1 Securitization On February 1, 2017, SFC completed a private securitization transaction in which OneMain Direct Auto Receivables Trust 2017-1 (“ODART 2017-1”), a wholly owned special purpose vehicle of SFC, issued $300 million principal amount of notes backed by direct auto loans with an aggregate UPB of $300 million as of December 31, 2016. $268 million principal amount of the notes issued by ODART 2017-1, represented by Classes A, B, C and D, were sold to unaffiliated parties at a weighted average interest rate of 2.61% . OneMain Direct Auto Funding, LLC, a wholly owned subsidiary of SFC, retained $11 million principal amount of the Class A notes, $1 million principal amount of each of the Classes B, C, and D notes and $18 million principal amount of the Class E notes. The notes have maturity dates that range from October 2020 to January 2025 and there is a revolving period, which ends on February 28, 2018, during which no principal payments are required to be made on the notes. The indenture governing the ODART 2017-1 notes contains customary early amortization events and events of default which, if triggered, may result in the acceleration of the obligation to pay principal and interest on the notes. Call of 2014-A Notes On February 15, 2017, Twenty First Street Funding LLC (“Twenty First Street”), a wholly owned subsidiary of SFC, exercised its right to redeem the asset backed notes issued by Springleaf Funding Trust 2014-A on March 26, 2014 (the “2014-A Notes”). To redeem the 2014-A Notes, Twenty First Street paid a redemption price of $ 188 million , which excluded $ 33 million for the Class D Notes owned by Twenty First Street on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the 2014-A Notes was $ 221 million on the date of the optional redemption. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Our selected quarterly financial data for 2016 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 303 $ 303 $ 313 $ 431 Interest expense 127 135 138 156 Provision for finance receivable losses 66 87 85 91 Other revenues 105 107 106 256 Other expenses 170 155 177 191 Income before provision for income taxes 45 33 19 249 Provision for income taxes 12 10 6 85 Net income 33 23 13 164 Net income attributable to non-controlling interests — — — 28 Net income attributable to Springleaf Finance Corporation $ 33 $ 23 $ 13 $ 136 Our selected quarterly financial data for 2015 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 430 $ 422 $ 406 $ 399 Interest expense 167 171 171 158 Provision for finance receivable losses 109 78 73 79 Other revenues 81 49 59 54 Other expenses 198 182 186 169 Income before provision for income taxes 37 40 35 47 Provision for income taxes 4 5 — 9 Net income 33 35 35 38 Net income attributable to non-controlling interests 29 32 33 33 Net income attributable to Springleaf Finance Corporation $ 4 $ 3 $ 2 $ 5 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using generally accepted accounting principles in the United States of America (“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 owned a 47% equity interest prior to March 31, 2016), and VIEs in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Ultimate results could differ from our estimates. We evaluated the effects of and the need to disclose events that occurred subsequent to the balance sheet date. To conform to the 2016 presentation, we reclassified certain items in prior periods of our consolidated financial statements. |
Operating Segment Reporting | Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2016 , our three segments include: • Consumer and Insurance; • Acquisitions and Servicing; and • Real Estate. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which are isolated by geographic market and/or distribution channel from our three segments. These operations include: (i) our legacy operations in 14 states where we had also ceased branch-based personal lending; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from its legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of our United Kingdom subsidiary, prior to its liquidation on August 16, 2016. We allocate revenues and expenses (on a Segment Accounting Basis) to each segment using the following methodologies: Interest income Directly correlated with a specific segment. Interest expense Acquisitions and Servicing - This segment includes interest expense specifically identified to the SpringCastle Portfolio. Consumer and Insurance, Real Estate and Other - The Company has securitization debt and unsecured debt. The Company first allocates interest expense to its segments based on actual expense for securitizations and secured term debt and using a weighted average for unsecured debt allocated to the segments. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Consumer and Insurance - receives remainder of unallocated average debt; and l Real Estate and Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale.) The net effect of the change in debt allocation and asset base methodologies for 2015, had it been in place as of the beginning of the year, would be an increase in interest expense of $208 million for Consumer and Insurance and a decrease in interest expense of $157 million and $51 million for Real Estate and Other, respectively. For the period third quarter 2014 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance, Real Estate and Other, such that the total debt allocated across each segment equaled 83%, up to 100% and 100% of each of its respective asset base. Any excess was allocated to Consumer and Insurance. Average unsecured debt was allocated after average securitized debt to achieve the calculated average segment debt. Asset base represented the following: l Consumer and Insurance - average net finance receivables, including average net finance receivables held for sale; l Real Estate - average net finance receivables, including average net finance receivables held for sale, cash and cash equivalents, investments including proceeds from Real Estate sales; and l Other - average net finance receivables other than the periods listed below: l May 2015 to the OneMain Acquisition - average net finance receivables and cash and cash equivalents, less proceeds from equity issuance in 2015, operating cash reserve and cash included in other segments. l February 2015 to April 2015 - average net finance receivables and cash and cash equivalents, less operating cash reserve and cash included in other segments. Prior to third quarter 2014 The ratio of each segment average net finance receivables to total average net finance receivables was applied to average total debt to calculate the average segment debt. Average unsecured debt was allocated after average securitized debt and secured term loan to achieve the calculated average segment debt. Provision for finance receivable losses Directly correlated with a specific segment, except for allocations to Other, which are based on the remaining delinquent accounts as a percentage of total delinquent accounts. Other revenues Directly correlated with a specific segment, except for: (i) net gain (loss) on repurchases and repayments of debt, which is allocated to the segments based on the interest expense allocation of debt and (ii) gains and losses on foreign currency exchange, which are allocated to the segments based on the interest expense allocation of debt. Other expenses Salaries and benefits - Directly correlated with a specific segment. Other salaries and benefits not directly correlated with a specific segment are allocated to each of the segments based on services provided. Other operating expenses - Directly correlated with a specific segment. Other operating expenses not directly correlated with a specific segment are allocated to each of the segments based on services provided. Insurance policy benefits and claims - Directly correlated with a specific segment. |
Finance Receivables | Finance Receivables Generally, we classify finance receivables as held for investment based on management’s intent at the time of origination. We determine classification on a loan-by-loan basis. We classify finance receivables as held for investment due to our ability and intent to hold them until their contractual maturities. We carry finance receivables at amortized cost which includes accrued finance charges on interest bearing finance receivables, net unamortized deferred origination costs and unamortized points and fees, unamortized net premiums and discounts on purchased finance receivables, and unamortized finance charges on precomputed receivables. We include the cash flows from finance receivables held for investment in the consolidated statements of cash flows as investing activities, except for collections of interest, which we include as cash flows from operating activities. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Finance Receivable Revenue Recognition | Finance Receivable Revenue Recognition We recognize finance charges as revenue on the accrual basis using the interest method, which we report in interest income. We amortize premiums or accrete discounts on finance receivables as an adjustment to finance charge income using the interest method and contractual cash flows. We defer the costs to originate certain finance receivables and the revenue from nonrefundable points and fees on loans and amortize them as an adjustment to finance charge income using the interest method. We stop accruing finance charges when the fourth contractual payment becomes past due for personal loans, the SpringCastle Portfolio, and retail sales contracts and when the sixth contractual payment becomes past due for revolving retail accounts. For finance receivables serviced externally, including real estate loans, we stop accruing finance charges when the third or fourth contractual payment becomes past due depending on the type of receivable and respective third party servicer. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. For certain finance receivables that had a carrying value that included a purchase premium or discount, we stop accreting the premium or discount at the time we stop accruing finance charges. We do not reverse accretion of premium or discount that was previously recognized. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. We resume the accrual of interest on a nonaccrual finance receivable when the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. At that time we also resume accretion of any unamortized premium or discount resulting from a previous purchase premium or discount. We accrete the amount required to adjust the initial fair value of our finance receivables to their contractual amounts over the life of the related finance receivable for non-credit impaired finance receivables and over the life of a pool of finance receivables for purchased credit impaired finance receivables as described in our policy for purchase credit impaired finance receivables. |
Purchased Credit Impaired Finance Receivables | Purchased Credit Impaired Finance Receivables As part of each of our acquisitions, we identify a population of finance receivables for which it is determined that it is probable that we will be unable to collect all contractually required payments. The population of accounts identified generally consists of those finance receivables that are (i) 60 days or more past due at acquisition, (ii) which had been classified as troubled debt restructured (“TDR”) finance receivables as of the acquisition date, (iii) may have been previously modified, or (iv) had other indications of credit deterioration as of the acquisition date. We accrete the excess of the cash flows expected to be collected on the purchased credit impaired finance receivables over the discounted cash flows (the “accretable yield”) into interest income at a level rate of return over the expected lives of the underlying pools of the purchased credit impaired finance receivables. The underlying pools are based on finance receivables with common risk characteristics. We have established policies and procedures to update on a quarterly basis the amount of cash flows we expect to collect, which incorporates assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of then current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment, which is recognized through the provision for finance receivable losses. Probable significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses; any remaining increases are recognized prospectively as adjustments to the respective pool’s yield. Our purchased credit impaired finance receivables remain in our purchased credit impaired pools until liquidation or write-off. We do not reclassify modified purchased credit impaired finance receivables as TDR finance receivables. We have additionally established policies and procedures related to maintaining the integrity of these pools. A finance receivable will not be removed from a pool unless we sell, foreclose, or otherwise receive assets in satisfaction of a particular finance receivable or a finance receivable is written-off. If a finance receivable is renewed and additional funds are lent and terms are adjusted to current market conditions, we consider this a new finance receivable and the previous finance receivable is removed from the pool. If the facts and circumstances indicate that a finance receivable should be removed from a pool, that finance receivable will be removed at its allocated carrying amount, and such removal will not affect the yield used to recognize accretable yield of the pool. Effective April 1, 2016, we changed our accounting policy for the derecognition of loans within a purchased credit impaired pool. Historically, we removed loans from a purchased credit impaired pool upon charge-off of the loan, based on the Company’s charge-off accounting policy at their allocated carrying value. Under our new accounting policy, loans will be removed from a purchased credit impaired pool when the loan is written-off, at which time further collections efforts would not be pursued, or sold or repaid. While both methods are acceptable under GAAP, we believe the new method for derecognition of purchased credit impaired loans is preferable as it enhances consistency with our industry peers. As of January 1, 2015, the cumulative effect of retrospectively applying the change in accounting policy increased shareholder’s equity by $37 million . We have retrospectively applied this change in accounting policy. As a result, we have revised certain sections in our 2015 Annual Report on Form 10-K to reflect the retrospective application of this change in accounting policy, and such revised disclosures are included in exhibits to our Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on August 29, 2016. |
Troubled Debt Restructured Finance Receivables | Troubled Debt Restructured Finance Receivables We make modifications to our personal loans to assist borrowers who are experiencing financial difficulty, are in bankruptcy or are participating in a consumer credit counseling arrangement. We make modifications to our real estate loans to assist borrowers in avoiding foreclosure. When we modify a loan’s contractual terms for economic or other reasons related to the borrower’s financial difficulties and grant a concession that we would not otherwise consider, we classify that loan as a TDR finance receivable. We restructure finance receivables only if we believe the customer has the ability to pay under the restructured terms for the foreseeable future. We establish reserves on our TDR finance receivables by discounting the estimated cash flows associated with the respective receivables at the interest rate prior to the modification to the account and record any difference between the discounted cash flows and the carrying value as an allowance adjustment. We may modify the terms of existing accounts in certain circumstances, such as certain bankruptcy or other catastrophic situations or for economic or other reasons related to a borrower’s financial difficulties that justify modification. When we modify an account, we primarily use a combination of the following to reduce the borrower’s monthly payment: reduce interest rate, extend the term, or capitalize past due interest and, to a lesser extent, forgive principal or interest. Additionally, as part of the modification, we may require trial payments. If the account is delinquent at the time of modification, the account is brought current for delinquency reporting. Account modifications that are deemed to be a TDR finance receivable are measured for impairment. Account modifications that are not classified as a TDR finance receivable are measured for impairment in accordance with our policy for allowance for finance receivable losses. Finance charges for TDR finance receivables require the application of judgment. We recognize the contractual interest portion of payments received on nonaccrual finance receivables as finance charges at the time of receipt. TDR finance receivables that are placed on nonaccrual status remain on nonaccrual status until the past due status on the individual finance receivable improves to the point that the finance receivable no longer meets our policy for nonaccrual. |
Allowance for Finance Receivable Losses | We establish the allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by finance receivable type. Our finance receivable types (personal loans, real estate loans, and retail sales finance) consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivable types for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. Management considers numerous internal and external factors in estimating probable incurred losses in our finance receivable portfolio, including the following: • prior finance receivable loss and delinquency experience; • the composition of our finance receivable portfolio; and • current economic conditions, including the levels of unemployment and personal bankruptcies. We base the allowance for finance receivable losses primarily on historical loss experience using a roll rate-based model applied to our finance receivable portfolios. In our roll rate-based model, our finance receivable types are stratified by delinquency stages (i.e., current, 1-29 days past due, 30-59 days past due, etc.) and projected forward in one-month increments using historical roll rates. In each month of the simulation, losses on our finance receivable types are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. No new volume is assumed. This process is repeated until the number of iterations equals the loss emergence period (the interval of time between the event which causes a borrower to default on a finance receivable and our recording of the charge-off) for our finance receivable types. As delinquency is a primary input into our roll rate-based model, we inherently consider nonaccrual loans in our estimate of the allowance for finance receivable losses. Management exercises its judgment, based on quantitative analyses, qualitative factors, such as recent delinquency and other credit trends, and experience in the consumer finance industry, when determining the amount of the allowance for finance receivable losses. We adjust the amounts determined by the roll rate-based model for management’s estimate of the effects of model imprecision, any changes to underwriting criteria, portfolio seasoning, and current economic conditions, including levels of unemployment and personal bankruptcies. We charge or credit this adjustment to expense through the provision for finance receivable losses. We generally charge off to the allowance for finance receivable losses personal loans that are beyond 180 days past due. To avoid unnecessary real estate loan foreclosures, we may refer borrowers to counseling services, as well as consider a cure agreement, loan modification, voluntary sale (including a short sale), or deed in lieu of foreclosure. When two payments are past due on a collateral dependent real estate loan and it appears that foreclosure may be necessary, we inspect the property as part of assessing the costs, risks, and benefits associated with foreclosure. Generally, we start foreclosure proceedings on real estate loans when four monthly installments are past due. When foreclosure is completed and we have obtained title to the property, we obtain a third-party’s valuation of the property, which is either a full appraisal or a real estate broker’s or appraiser’s estimate of the property sale value without the benefit of a full interior and exterior appraisal and lacking sales comparisons. Such appraisals or real estate brokers’ or appraisers’ estimate of value are one factor considered in establishing an appropriate valuation; however, we are ultimately responsible for the valuation established. We reduce finance receivables by the amount of the real estate loan, establish a real estate owned asset, and charge off any loan amount in excess of that value to the allowance for finance receivable losses. We infrequently extend the charge-off period for individual accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. We increase the allowance for finance receivable losses for recoveries on accounts previously charged-off. We may renew a delinquent account if the customer meets current underwriting criteria and it does not appear that the cause of past delinquency will affect the customer’s ability to repay the new loan. We subject all renewals to the same credit risk underwriting process as we would a new application for credit. For our personal loans and retail sales finance receivables, we may offer those customers whose accounts are in good standing the opportunity of a deferment, which extends the term of an account. We may extend this offer to customers when they are experiencing higher than normal personal expenses. Generally, this offer is not extended to customers who are delinquent. However, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem. The account is considered current upon granting the deferment. To evaluate whether a borrower’s financial difficulties are temporary or other than temporary we review the terms of each deferment to ensure that the borrower has the financial ability to repay the outstanding principal and associated interest in full following the deferment and after the customer is brought current. If, following this analysis, we believe a borrower’s financial difficulties are other than temporary, we will not grant deferment, and the loans may continue to age until they are charged off. We generally limit a customer to two deferments in a rolling twelve month period unless we determine that an exception is warranted and is consistent with our credit risk policies. For our real estate loans, we may offer a deferment to a delinquent customer who is experiencing a temporary financial problem, which extends the term of an account. Prior to granting the deferment, we may require a partial payment. We forebear the remaining past due interest when the deferment is granted for real estate loans that were originated or acquired centrally. The account is considered current upon granting the deferment. We generally limit a customer to two deferments in a rolling twelve month period for real estate loans that were originated at our branch offices ( one deferment for real estate loans that were originated or acquired centrally) unless we determine that an exception is warranted and is consistent with our credit risk policies. Accounts that are granted a deferment are not classified as troubled debt restructurings. We do not consider deferments granted as a troubled debt restructuring because the customer is not experiencing an other than temporary financial difficulty, and we are not granting a concession to the customer or the concession granted is immaterial to the contractual cash flows. We pool accounts that have been granted a deferment together with accounts that have not been granted a deferment for measuring impairment in accordance with the authoritative guidance for the accounting for contingencies. The allowance for finance receivable losses related to our purchased credit impaired finance receivables is calculated using updated cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions. Probable decreases in expected finance receivable cash flows result in the recognition of impairment. Probable and significant increases in expected cash flows to be collected would first reverse any previously recorded allowance for finance receivable losses. We also establish reserves for TDR finance receivables, which are included in our allowance for finance receivable losses. The allowance for finance receivable losses related to our TDR finance receivables represents loan-specific reserves based on an analysis of the present value of expected future cash flows. We establish our allowance for finance receivable losses related to our TDR finance receivables by calculating the present value (discounted at the loan’s effective interest rate prior to modification) of all expected cash flows less the recorded investment in the aggregated pool. We use certain assumptions to estimate the expected cash flows from our TDR finance receivables. The primary assumptions for our model are prepayment speeds, default rates, and severity rates. |
Finance Receivables Held for Sale | Finance Receivables Held for Sale Depending on market conditions or certain of management’s capital sourcing strategies, which may impact our ability and/or intent to hold our finance receivables until maturity or for the foreseeable future, we may decide to sell finance receivables originally intended for investment. Our ability to hold finance receivables for the foreseeable future is subject to a number of factors, including economic and liquidity conditions, and therefore may change. As of each reporting period, management determines our ability to hold finance receivables for the foreseeable future based on assumptions for liquidity requirements or other strategic goals. When it is probable that management’s intent or ability is to no longer hold finance receivables for the foreseeable future and we subsequently decide to sell specifically identified finance receivables that were originally classified as held for investment, the net finance receivables, less allowance for finance receivable losses, are reclassified as finance receivables held for sale and are carried at the lower of cost or fair value. Any amount by which cost exceeds fair value is accounted for as a valuation allowance and is recognized in other revenues in the consolidated statements of operations. We base the fair value estimates on negotiations with prospective purchasers (if any) or by using a discounted cash flows approach. We base cash flows on contractual payment terms adjusted for estimates of prepayments and credit related losses. Cash flows resulting from the sale of the finance receivables that were originally classified as held for investment are recorded as an investing activity in the consolidated statements of cash flows. When sold, we record the sales price we receive less our carrying value of these finance receivables held for sale in other revenues. When it is determined that management no longer intends to sell finance receivables which had previously been classified as finance receivables held for sale and we have the ability to hold the finance receivables for the foreseeable future, we reclassify the finance receivables to finance receivables held for investment at the lower of cost or fair value and we accrete any fair value adjustment over the remaining life of the related finance receivables. |
Real Estate Owned | Real Estate Owned We acquire real estate owned through foreclosure on real estate loans and we initially record real estate owned in other assets at the estimated fair value less the estimated cost to sell. The estimated fair value used as a basis to determine the carrying value of real estate owned is defined as the price that would be received in selling the property in an orderly transaction between market participants as of the measurement date. We assess the balances of real estate owned for impairment on a periodic basis. If the required impairment testing suggests real estate owned is impaired, we reduce the carrying amount to estimated fair value less the estimated costs to sell. We charge these impairments to other revenues. We record the difference between the sale price we receive for a property and the carrying value and any amounts refunded to the customer as a recovery or loss in other revenues. We do not profit from foreclosures in accordance with the American Financial Services Association’s Voluntary Standards for Consumer Mortgage Lending. We only attempt to recover our investment in the property, including expenses incurred. |
Reserve for Sales Recourse Obligations | Reserve for Sales Recourse Obligations When we sell finance receivables, we may establish a reserve for sales recourse in other liabilities, which represents our estimate of losses to be: (a) incurred by us on the repurchase of certain finance receivables that we previously sold; and (b) incurred by us for the indemnification of losses incurred by purchasers. Certain sale contracts include provisions requiring us to repurchase a finance receivable or indemnify the purchaser for losses it sustains with respect to a finance receivable if a borrower fails to make initial loan payments to the purchaser or if the accompanying mortgage loan breaches certain customary representations and warranties. These representations and warranties are made to the purchaser with respect to various characteristics of the finance receivable, such as the manner of origination, the nature and extent of underwriting standards applied, the types of documentation being provided, and, in limited instances, reaching certain defined delinquency limits. Although the representations and warranties are typically in place for the life of the finance receivable, we believe that most repurchase requests occur within the first five years of the sale of a finance receivable. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. At the time of the sale of each finance receivable (exclusive of finance receivables included in our on-balance sheet securitizations), we record a provision for recourse obligations for estimated repurchases, loss indemnification and premium recapture on finance receivables sold, which is charged to other revenues. Any subsequent adjustments resulting from changes in estimated recourse exposure are recorded in other revenues. |
Other Intangible Assets | Other Intangible Assets At the time we initially recognize intangible assets, a determination is made with regard to each asset as it relates to its useful life. We have determined that each of our intangible assets has a finite useful life with the exception of the insurance licenses and certain domain names, which we have determined to have indefinite lives. For intangible assets with a finite useful life, we review for impairment at least annually and whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Impairment is indicated if the sum of undiscounted estimated future cash flows is less than the carrying value of the respective asset. Impairment is permanently recognized by writing down the asset to the extent that the carrying value exceeds the estimated fair value. For indefinite lived intangible assets, we first complete an annual qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that the assets are more likely than not to have been impaired, we proceed with the fair value calculation of the assets. The fair value is determined in accordance with our fair value measurement policy. If the fair value is less than the carrying value, an impairment loss will be recognized in an amount equal to the difference and the indefinite life classification will be evaluated to determine whether such classification remains appropriate. |
Insurance Premiums | Insurance Premiums We recognize revenue for short-duration contracts over the related contract period. Short-duration contracts primarily include credit life, credit disability, credit involuntary unemployment insurance, and collateral protection policies. We defer single premium credit insurance premiums from affiliates in unearned premium reserves which we include as a reduction to net finance receivables. We recognize unearned premiums on credit life, credit disability, credit involuntary unemployment insurance and collateral protection insurance as revenue using the sum-of-the-digits, straight-line or other appropriate methods over the terms of the policies. Premiums from reinsurance assumed are earned over the related contract period. We recognize revenue on long-duration contracts when due from policyholders. Long-duration contracts include term life, accidental death and dismemberment, and disability income protection. For single premium long-duration contracts a liability is accrued, that represents the present value of estimated future policy benefits to be paid to or on behalf of policyholders and related expenses, when premium revenue is recognized. The effects of changes in such estimated future policy benefit reserves are classified in insurance policy benefits and claims in the consolidated statements of operations. We recognize commissions on ancillary products as other revenue when earned. We may finance certain insurance products offered to our customers as part of finance receivables. In such cases, unearned premiums and certain unpaid claim liabilities related to our borrowers are netted and classified as contra-assets in the net finance receivables in the consolidated balance sheets, and the insurance premium is included as an operating cash inflow and the financing of the insurance premium is included as part of the finance receivable as an investing cash flow in the consolidated statements of cash flows. |
Policy and Claim Reserves | Policy and Claim Reserves Policy reserves for credit life, credit disability, credit involuntary unemployment, and collateral protection insurance equal related unearned premiums. Reserves for losses and loss adjustment expenses are based on claims experience, actual claims reported, and estimates of claims incurred but not reported. Assumptions utilized in determining appropriate reserves are based on historical experience, adjusted to provide for possible adverse deviation. These estimates are periodically reviewed and compared with actual experience and industry standards, and revised if it is determined that future experience will differ substantially from that previously assumed. Since reserves are based on estimates, the ultimate liability may be more or less than such reserves. The effects of changes in such estimated reserves are classified in insurance policy benefits and claims in the consolidated statements of operations in the period in which the estimates are changed. We accrue liabilities for future life insurance policy benefits associated with non-credit life contracts and base the amounts on assumptions as to investment yields, mortality, and surrenders. We base annuity reserves on assumptions as to investment yields and mortality. Ceded insurance reserves are included in other assets and include estimates of the amounts expected to be recovered from reinsurers on insurance claims and policyholder liabilities. |
Insurance Policy Acquisition Costs | Insurance Policy Acquisition Costs We defer insurance policy acquisition costs (primarily commissions, reinsurance fees, and premium taxes). We include deferred policy acquisition costs in other assets and amortize these costs over the terms of the related policies, whether directly written or reinsured. |
Investment Securities | Investment Securities We generally classify our investment securities as available-for-sale or trading and other, depending on management’s intent. Our investment securities classified as available-for-sale are recorded at fair value. We adjust related balance sheet accounts to reflect the current fair value of investment securities and record the adjustment, net of tax, in accumulated other comprehensive income or loss in shareholder’s equity. We record interest receivable on investment securities in other assets. Under the fair value option, we may elect to measure at fair value, financial assets that are not otherwise required to be carried at fair value. We elect the fair value option for available-for-sale securities that are deemed to incorporate an embedded derivative and for which it is impracticable for us to isolate and/or value the derivative. We recognize any changes in fair value in investment revenues. We classify our investment securities in the fair value hierarchy framework based on the observability of inputs. Inputs to the valuation techniques are described as being either observable (Level 1 or 2) or unobservable (Level 3) assumptions (as further described in “Fair Value Measurements” below) that market participants would use in pricing an asset or liability. Impairments on Investment Securities Available-for-sale. We evaluate our available-for-sale securities on an individual basis to identify any instances where the fair value of the investment security is below its amortized cost. For these securities, we then evaluate whether an other-than-temporary impairment exists if any of the following conditions are present: • we intend to sell the security; • it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis; or • we do not expect to recover the security’s entire amortized cost basis (even if we do not intend to sell the security). If we intend to sell an impaired investment security or we will likely be required to sell the security before recovery of its amortized cost basis less any current period credit loss, we recognize an other-than-temporary impairment in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. In determining whether a credit loss exists, we compare our best estimate of the present value of the cash flows expected to be collected from the security to the amortized cost basis of the security. Any shortfall in this comparison represents a credit loss. The cash flows expected to be collected are determined by assessing all available information, including length and severity of unrealized loss, issuer default rate, ratings changes and adverse conditions related to the industry sector, financial condition of issuer, credit enhancements, collateral default rates, and other relevant criteria. Management considers factors such as our investment strategy, liquidity requirements, overall business plans, and recovery periods for securities in previous periods of broad market declines. If a credit loss exists with respect to an investment in a security (i.e., we do not expect to recover the entire amortized cost basis of the security), we would be unable to assert that we will recover our amortized cost basis even if we do not intend to sell the security. Therefore, in these situations, an other-than-temporary impairment is considered to have occurred. If a credit loss exists, but we do not intend to sell the security and we will likely not be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is classified as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to all other factors. We recognize the estimated credit loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. Once a credit loss is recognized, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the credit losses recognized in investment revenues. For investment securities for which other-than-temporary impairments were recognized in investment revenues, the difference between the new amortized cost basis and the cash flows expected to be collected is accreted to investment income. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities in accumulated other comprehensive income or loss, unless the decrease is considered other than temporary. Investment Revenue Recognition We recognize interest on interest bearing fixed-maturity investment securities as revenue on the accrual basis. We amortize any premiums or accrete any discounts as a revenue adjustment using the interest method. We stop accruing interest revenue when the collection of interest becomes uncertain. We record dividends on equity securities as revenue on ex-dividend dates. We recognize income on mortgage-backed and asset-backed securities as revenue using an effective yield based on estimated prepayments of the underlying collateral. If actual prepayments differ from estimated prepayments, we calculate a new effective yield and adjust the net investment in the security accordingly. We record the adjustment, along with all investment securities revenue, in investment revenues. We specifically identify realized gains and losses on investment securities and include them in investment revenues. |
Variable Interest Entities | Variable Interest Entities An entity is a VIE if the entity does not have sufficient equity at risk for the entity to finance its activities without additional financial support or has equity investors who lack the characteristics of a controlling financial interest. A VIE is consolidated into the financial statements of its primary beneficiary. When we have a variable interest in a VIE, we qualitatively assess whether we have a controlling financial interest in the entity and, if so, whether we are the primary beneficiary. In applying the qualitative assessment to identify the primary beneficiary of a VIE, we are determined to have a controlling financial interest if we have (i) the power to direct the activities that most significantly impact the economic performance of the VIE, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We consider the VIE’s purpose and design, including the risks that the entity was designed to create and pass through to its variable interest holders. We continually reassess the VIE’s primary beneficiary and whether we have acquired or divested the power to direct the activities of the VIE through changes in governing documents or other circumstances. |
Other Invested Assets | Other Invested Assets Commercial mortgage loans and insurance policy loans are part of our investment portfolio and we include them in other assets at amortized cost. We recognize interest on commercial mortgage loans and insurance policy loans as revenue on the accrual basis using the interest method. We stop accruing revenue when collection of interest becomes uncertain. We include other invested asset revenue in investment revenues. We record accrued other invested asset revenue receivable in other assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider unrestricted cash on hand and short-term investments having maturity dates within three months of their date of acquisition to be cash and cash equivalents. We typically maintain cash in financial institutions in excess of the Federal Deposit Insurance Corporation’s insurance limits. We evaluate the creditworthiness of these financial institutions in determining the risk associated with these cash balances. We do not believe that the Company is exposed to any significant credit risk on these accounts and have not experienced any losses in such accounts. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents We include funds to be used for future debt payments relating to our securitization transactions and escrow deposits in restricted cash and cash equivalents. |
Long-term Debt | Long-term Debt We generally report our long-term debt issuances at the face value of the debt instrument, which we adjust for any unaccreted discount, unamortized premium, or unamortized debt issuance costs associated with the debt. Other than securitized products, we generally accrete discounts, premiums, and debt issuance costs over the contractual life of the security using contractual payment terms. With respect to securitized products, we have elected to amortize deferred costs over the contractual life of the security. Accretion of discounts and premiums are recorded to interest expense. |
Income Taxes | Income Taxes We recognize income taxes using the asset and liability method. We establish deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of assets and liabilities, using the tax rates expected to be in effect when the temporary differences reverse. We are included in the consolidated U.S. federal and state income tax returns of OneMain Holdings, Inc., our ultimate parent company, where applicable. The tax provision and current and deferred tax balances have been presented on a separate return methodology as if we were a separate filer, with modification. ASC Topic 740 requires the method of accounting to be systematic, rational, and consistent within the broad principles of ASC Topic 740. We have modified our method of accounting such that our net operating losses and capital losses, if applicable, are considered realized when those net operating losses and/or capital losses are utilized by our parent company or other members of the consolidated group. Realization of our gross deferred tax asset depends on our ability to generate sufficient taxable income of the appropriate character within the carryforward periods of the jurisdictions in which the net operating and capital losses, deductible temporary differences and credits were generated. When we assess our ability to realize deferred tax assets, we consider all available evidence, including: • the nature, frequency, and severity of current and cumulative financial reporting losses; • the timing of the reversal of our gross taxable temporary differences in an amount sufficient to provide benefit for our gross deductible temporary differences; • the carryforward periods for the net operating and capital loss carryforwards; • the sources and timing of future taxable income; and • tax planning strategies that would be implemented, if necessary, to accelerate taxable amounts. We provide a valuation allowance for deferred tax assets if it is more likely than not that we will not realize the deferred tax asset in whole or in part. We include an increase or decrease in a valuation allowance resulting from a change in the realizability of the related deferred tax asset. We recognize income tax benefits associated with uncertain tax positions, when, in our judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority. For a tax position that meets the more likely than not recognition threshold, we initially and subsequently measure the tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority. |
Benefit Plans | Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 23 . In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
New Accounting Pronouncements | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Consolidation In February of 2015, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2015-02, Consolidation - Amendments to the Consolidation Analysis, which amends the current consolidation guidance and ends the deferral granted to reporting entities with variable interests in investment companies from applying certain prior amendments to the VIE guidance. This ASU is applicable to entities across all industries, particularly those that use limited partnerships as well as entities in any industry that outsource decision making or have historically applied related party tiebreakers in their consolidation analysis and disclosures. The standard became effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. In October of 2016, the FASB issued ASU 2016-17, Interests Held through Related Parties that are under Common Control , which clarifies how a reporting entity should treat indirect interest in an entity that is held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. Since we have adopted the amendments and updates in ASU 2015-02, we are required to apply the amendments in this update retrospectively for annual periods, and interim periods within those annual periods, beginning with the fiscal year in which the amendments in ASU 2015-02 were initially applied. We have adopted this ASU and concluded that is does not have a material effect on our consolidated financial statements. Technical Corrections and Improvements In June of 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements , to correct differences between original guidance and the ASC), clarify the guidance, correct references and make minor improvements affecting a variety of topics. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. In December of 2016, the FASB issued ASU 2016-19, Technical Corrections and Improvements , to correct differences between original guidance and the ASC, clarify the guidance, correct references and make minor improvements affecting a variety of topics. The amendments to this transition guidance became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. Debt Instruments In March of 2016, the FASB issued ASU 2016-06, Contingent Puts and Call Options in Debt Instruments , which clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt host. The ASU requires assessing the embedded call (put) options solely in accordance with the four-step decision sequence. The amendment of this ASU became effective on a modified retrospective basis for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. We have early adopted this ASU and concluded that it does not have a material effect on our consolidated financial statements. Stock Compensation In March of 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting , which simplifies the accounting for share-based payment transactions, income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU were adopted as follows: • We adopted the amendment requiring recognition of tax benefits related to exercised or vested awards through the income statement rather than additional paid-in capital on a prospective basis as of January 1, 2016. Further, as of January 1, 2016, there was no impact to additional paid-in capital as a result of our adoption of this ASU under the modified retrospective method. • We did not adopt the amendment allowing for the use of the actual number of shares vested each period, rather than estimating the number of awards that are expected to vest. We continue to use an estimate as it relates to the number of awards that are expected to vest. • We adopted the amendment for the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates, under the modified retrospective basis as of January 1, 2016. This amendment did not have a material impact on our consolidated financial statements. • We adopted the amendment requiring the classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes to be presented in the financing activities instead of the operating activities, under the retrospective method as of January 1, 2014. This amendment did not have a material impact on our consolidated financial statements. • We adopted the amendment requiring the classification of excess tax benefits on the statement of cash flows to be presented in the operating activities instead of the financing activities, under the prospective method as of September 30, 2016. This amendment did not have a material impact on our consolidated financial statements. Short-Duration Insurance Contracts Disclosures In May of 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts , to address enhanced disclosure requirements for insurers related to short-duration insurance contract claims and unpaid claims liability roll-forward for long and short-duration contracts. The disclosures are intended to provide users of financial statements more transparent information about an insurance entity’s initial claim estimates, subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The amendments in this ASU became effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. We have adopted this ASU and included the additional disclosures in Note 14 . Going Concern In August of 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which requires management to assess a company’s ability to continue as a going concern for each annual and interim reporting period, and disclose in its financial statements whether there is substantial doubt about the company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The new standard applies to all companies and is effective for the annual period ending after December 15, 2016, and all annual and interim periods thereafter. We have adopted this ASU by performing the going concern assessment in accordance with the requirements of the ASU. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date , to defer the effective date of the new revenue recognition standard by one year, which would result in the ASU becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. In March of 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations, which clarifies the implementation of the guidance on principal versus agent considerations from ASU 2014-09, Revenue from Contracts with Customers . ASU 2016-08 does not change the core principle of the guidance in ASU 2014-09, but rather clarifies the distinction between principal versus agent considerations when implementing ASU 2014-09. In April of 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing , to clarify the implementation guidance of ASU 2014-09 relating to performance obligations and licensing. In May of 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, to clarify guidance in ASU 2014-09 related to assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts/contract modifications. In December of 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 , which improves the guidance specific to the amendments in ASU 2014-09. We are evaluating whether the adoption of these accounting pronouncements will have a material effect on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial instruments, requires the use of the exit price for disclosure purposes, requires the change in liability due to a change in credit risk to be presented in other comprehensive income, requires separate presentation of financial assets and liabilities by measurement category and form of asset (securities and loans), and clarifies the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The amendments in this ASU become effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The ASU will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting , which eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendment in this ASU becomes effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Revenue Recognition and Derivatives and Hedging In May of 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) , to rescind certain SEC guidance in Topic 605 and Topic 815 as ASU 2014-09 becomes effective. Our adoption of ASU 2014-09 will bring us into alignment with this ASU. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU significantly changes the way that entities will be required to measure credit losses. The new standard requires that the estimated credit loss be based upon an “expected credit loss” approach rather than the “incurred loss” approach currently required. The new approach will require entities to measure all expected credit losses for financial assets based on historical experience, current conditions, and reasonable forecasts of collectability. It is anticipated that the expected credit loss model will require earlier recognition of credit losses than the incurred loss approach. The ASU requires that credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis be determined in a similar manner to other financial assets measured at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price of the financial asset rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses are recorded in earnings. Interest income should be recognized based on the effective rate, excluding the discount embedded in the purchase price attributable to expected credit losses at acquisition. The ASU also requires companies to record allowances for held-to-maturity and available-for-sale debt securities rather than write-downs of such assets. In addition, the ASU requires qualitative and quantitative disclosures that provide information about the allowance and the significant factors that influenced management’s estimate of the allowance. The ASU will become effective for the Company for fiscal years beginning January 1, 2020. Early adoption is permitted for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will have a material effect on our consolidated financial statements and we are in the process of quantifying the expected impacts. Statement of Cash Flows In August of 2016, the FASB issued ASU 2016-15, Statement of Cash Flows , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which clarifies the presentation of restricted cash on the statement of cash flows. The amendments in this ASU will become effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We are evaluating whether the adoption of this ASU will have a material effect on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2016, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Gross receivables * $ 5,449 $ — $ 142 $ 12 $ 5,603 Unearned finance charges and points and fees (754 ) — 1 (1 ) (754 ) Accrued finance charges 63 — 1 — 64 Deferred origination costs 46 — — — 46 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 December 31, 2015 Gross receivables * $ 5,028 $ 1,672 $ 534 $ 25 $ 7,259 Unearned finance charges and points and fees (833 ) — — (2 ) (835 ) Accrued finance charges 60 31 4 — 95 Deferred origination costs 45 — — — 45 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the Fortress Acquisition (as defined below) — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; additionally, the remaining unearned discount, net of premium established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. |
Schedule of largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: December 31, 2016 2015 * (dollars in millions) Amount Percent Amount Percent Illinois $ 400 8 % $ 468 7 % North Carolina 398 8 593 9 Indiana 360 7 403 6 California 298 6 429 7 Texas 288 6 292 4 Georgia 276 6 323 5 Virginia 266 5 334 5 Ohio 266 5 371 6 Pennsylvania 255 5 375 6 Florida 254 5 345 5 South Carolina 254 5 291 4 Other 1,644 34 2,340 36 Total $ 4,959 100 % $ 6,564 100 % * December 31, 2015 concentrations of net finance receivables are presented in the order of December 31, 2016 state concentrations. |
Summary of net finance receivables by type by days delinquent | The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Net finance receivables: Performing Current $ 4,579 $ — $ 102 $ 11 $ 4,692 30-59 days past due 64 — 9 — 73 60-89 days past due 45 — 4 — 49 Total performing 4,688 — 115 11 4,814 Nonperforming 90-179 days past due 112 — 8 — 120 180 days or more past due 4 — 21 — 25 Total nonperforming 116 — 29 — 145 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 December 31, 2015 Net finance receivables: Performing Current $ 4,077 $ 1,588 $ 486 $ 22 $ 6,173 30-59 days past due 65 49 13 — 127 60-89 days past due 49 26 19 — 94 Total performing 4,191 1,663 518 22 6,394 Nonperforming 90-179 days past due 106 39 7 1 153 180 days or more past due 3 1 13 — 17 Total nonperforming 109 40 20 1 170 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 |
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 (a) Total December 31, 2016 Carrying amount, net of allowance $ — $ 70 $ 70 Outstanding balance (b) — 107 107 Allowance for purchased credit impaired finance receivable losses — 8 8 December 31, 2015 Carrying amount, net of allowance $ 350 $ 89 $ 439 Outstanding balance 482 136 618 Allowance for purchased credit impaired finance receivable losses — 12 12 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2016 2015 Carrying amount $ 54 $ 59 Outstanding balance 83 89 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. |
Schedule of Purchased credit impaired FA Loans held for sale [Table Text Block] | Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2016 2015 Carrying amount $ 54 $ 59 Outstanding balance 83 89 |
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 Year Ended December 31, 2016 Balance at beginning of period $ 375 $ 66 $ 441 Accretion (a) (16 ) (7 ) (23 ) Reclassifications from nonaccretable difference (b) — 12 12 Transfers due to finance receivables sold (359 ) (11 ) (370 ) Balance at end of period $ — $ 60 $ 60 Year Ended December 31, 2015 Balance at beginning of period $ 452 $ 54 $ 506 Accretion (a) (77 ) (8 ) (85 ) Reclassifications from nonaccretable difference (b) — 20 20 Balance at end of period $ 375 $ 66 $ 441 Year Ended December 31, 2014 Balance at beginning of period $ — $ 768 $ 768 Accretable yield for SpringCastle Portfolio contributed to SFC 366 — 366 Accretion (a) (37 ) (75 ) (112 ) Reclassifications from nonaccretable difference (b) 123 19 142 Transfers due to finance receivables sold — (658 ) (658 ) Balance at end of period $ 452 $ 54 $ 506 (a) Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Accretion $ 5 $ 6 $ 13 (b) Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. |
Schedule of Accretion on our purchased credit impaired FA Loans held for sale [Table Text Block] | Accretion on our purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Accretion $ 5 $ 6 $ 13 |
Schedule of Troubled Debt Restructurings,Held for Investments and Held for Sale [Table Text Block] | Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Real Estate Total December 31, 2016 TDR gross finance receivables (b) $ 47 $ — $ 133 $ 180 TDR net finance receivables 47 — 134 181 Allowance for TDR finance receivable losses 20 — 11 31 December 31, 2015 TDR gross finance receivables (b) $ 32 $ 14 $ 200 $ 246 TDR net finance receivables 31 13 201 245 Allowance for TDR finance receivable losses 9 4 34 47 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2016 TDR gross finance receivables $ — $ 89 $ 89 TDR net finance receivables — 90 90 December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 (b) As defined earlier in this Note. |
Schedule of TDR finance receivables held for sale (gross, net and allowance) [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2016 TDR gross finance receivables $ — $ 89 $ 89 TDR net finance receivables — 90 90 December 31, 2015 TDR gross finance receivables $ 2 $ 92 $ 94 TDR net finance receivables 2 92 94 |
Schedule of TDR average net receivables and finance charges recognized on TDR finance receivables | TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2016 TDR average net receivables $ 36 $ — $ 175 $ 211 TDR finance charges recognized 3 — 11 14 Year Ended December 31, 2015 TDR average net receivables $ 29 $ 12 $ 198 $ 239 TDR finance charges recognized 3 1 11 15 Year Ended December 31, 2014 TDR average net receivables (b) $ 17 $ 5 $ 951 $ 973 TDR finance charges recognized 2 1 47 50 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2016 TDR average net receivables $ 1 $ 102 $ 103 TDR finance charges recognized — 6 6 Year Ended December 31, 2015 TDR average net receivables (a) $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables (b) $ — $ 248 $ 248 TDR finance charges recognized — 4 4 (a) TDR personal loan average net receivables held for sale for 2015 reflect a three -month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. (b) TDR real estate loan average net receivables held for sale for 2014 reflect a five -month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. (b) TDR SpringCastle Portfolio loans average net receivables for the year ended December 31, 2014 reflect a five -month average since the SAC Capital Contribution occurred on July 31, 2014. |
Schedule of trouble debt restructuring average held for sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Real Estate Total Year Ended December 31, 2016 TDR average net receivables $ 1 $ 102 $ 103 TDR finance charges recognized — 6 6 Year Ended December 31, 2015 TDR average net receivables (a) $ 2 $ 91 $ 93 TDR finance charges recognized — 5 5 Year Ended December 31, 2014 TDR average net receivables (b) $ — $ 248 $ 248 TDR finance charges recognized — 4 4 (a) TDR personal loan average net receivables held for sale for 2015 reflect a three -month average since the personal loans were transferred to finance receivables held for sale on September 30, 2015. (b) TDR real estate loan average net receivables held for sale for 2014 reflect a five -month average since the real estate loans were transferred to finance receivables held for sale on August 1, 2014. |
Schedule of information regarding new volume of the TDR finance receivables | Information regarding the new volume of the TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 49 $ 1 $ 16 $ 66 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 1 $ 16 $ 48 Other (b) 12 — 1 13 Total post-modification TDR net finance receivables $ 43 $ 1 $ 17 $ 61 Number of TDR accounts 9,517 157 364 10,038 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 33 $ 7 $ 21 $ 61 Post-modification TDR net finance receivables: Rate reduction $ 15 $ 6 $ 17 $ 38 Other (b) 12 — 5 17 Total post-modification TDR net finance receivables $ 27 $ 6 $ 22 $ 55 Number of TDR accounts 6,515 721 385 7,621 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ 18 $ 4 $ 213 $ 235 Post-modification TDR net finance receivables: Rate reduction $ 10 $ 4 $ 157 $ 171 Other (b) 6 — 46 52 Total post-modification TDR net finance receivables $ 16 $ 4 $ 203 $ 223 Number of TDR accounts 4,206 468 2,374 7,048 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ — $ 5 $ 5 Post-modification TDR net finance receivables $ — $ 5 $ 5 Number of TDR accounts 174 122 296 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 (b) “Other” modifications primarily include forgiveness of principal or interest. |
Schedule of Information regarding new volume of TDR finance receivables held for sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Personal Loans Real Estate Loans Total Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ — $ 5 $ 5 Post-modification TDR net finance receivables $ — $ 5 $ 5 Number of TDR accounts 174 122 296 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 1 $ 6 $ 7 Post-modification TDR net finance receivables $ 1 $ 7 $ 8 Number of TDR accounts 162 113 275 Year Ended December 31, 2014 Pre-modification TDR net finance receivables $ — $ 6 $ 6 Post-modification TDR net finance receivables $ — $ 7 $ 7 Number of TDR accounts — 94 94 |
Schedule of 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 Estate Total Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 6 $ — $ 3 $ 9 Number of TDR accounts 1,409 19 61 1,489 Year Ended December 31, 2015 TDR net finance receivables (b) $ 5 $ 2 $ 3 $ 10 Number of TDR accounts 1,221 147 46 1,414 Year Ended December 31, 2014 TDR net finance receivables (b) $ 1 $ 1 $ 33 $ 35 Number of TDR accounts 141 53 524 718 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 (b) Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. (c) TDR SpringCastle Portfolio loans for the year ended December 31, 2016 that defaulted during the previous 12-month period were less than $1 million and, therefore, are not quantified in the combined table above. |
Schedule of net finance receivables that were modified TDRs that were held for sale [Table Text Block] | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2016 TDR net finance receivables $ 2 Number of TDR accounts 30 Year Ended December 31, 2015 TDR net finance receivables $ 1 Number of TDR accounts 17 Year Ended December 31, 2014 TDR net finance receivables $ 3 Number of TDR accounts 49 |
Allowance for Finance Receiva35
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2016 Balance at beginning of period $ 173 $ 4 $ 46 $ 1 $ 224 Provision for finance receivable losses 306 14 9 — 329 Charge-offs (340 ) (17 ) (11 ) (1 ) (369 ) Recoveries 45 3 5 1 54 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 184 $ — $ 19 $ 1 $ 204 Year Ended December 31, 2015 Balance at beginning of period $ 130 $ 3 $ 46 $ 1 $ 180 Provision for finance receivable losses 257 67 13 2 339 Charge-offs (250 ) (78 ) (18 ) (3 ) (349 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 173 $ 4 $ 46 $ 1 $ 224 Year Ended December 31, 2014 Balance at beginning of period $ 94 $ — $ 330 $ 2 $ 426 Provision for finance receivable losses 203 36 110 3 352 Charge-offs (c) (192 ) (39 ) (61 ) (5 ) (297 ) Recoveries (d) 25 5 6 1 37 Other (e) — — (339 ) — (339 ) Allowance for SpringCastle Portfolio contributed to SFC — 1 — — 1 Balance at end of period $ 130 $ 3 $ 46 $ 1 $ 180 (a) Other consists of: • the elimination of allowance for finance receivable losses due to the sale of the SpringCastle Portfolio on March 31, 2016, in connection with the sale of our equity interest in the SpringCastle Joint Venture. See Note 2 for further information on this sale; and • the elimination of allowance for finance receivable losses due to the transfers of real estate loans held for investment to finance receivable held for sale during 2016. (b) Other consists of the elimination of allowance for finance receivable losses due to the transfer of personal loans held for investment to finance receivable held for sale during 2015. (c) Charge-offs during 2014 included a $4 million reduction related to a change in recognizing charge-offs of unsecured loans of customers in bankruptcy status effective mid-November 2014. (d) Recoveries during 2014 included $2 million of real estate loan recoveries resulting from a sale of previously charged-off real estate loans in March 2014. (e) Other consists of the elimination of allowance for finance receivable losses due to the transfer of real estate loans held for investment to finance receivable held for sale during 2014. |
Schedule of allowance for finance receivable losses and net finance receivables by type and by impairment method | The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Total December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ — $ 1 $ 165 Purchased credit impaired finance receivables — — 8 — 8 TDR finance receivables 20 — 11 — 31 Total $ 184 $ — $ 19 $ 1 $ 204 Finance receivables: Collectively evaluated for impairment $ 4,757 $ — $ 76 $ 11 $ 4,844 Purchased credit impaired finance receivables — — 24 — 24 TDR finance receivables 47 — 44 — 91 Total $ 4,804 $ — $ 144 $ 11 $ 4,959 Allowance for finance receivable losses as a percentage of finance receivables 3.84 % — % 13.31 % 4.42 % 4.12 % December 31, 2015 Allowance for finance receivable losses: Collectively evaluated for impairment $ 164 $ — $ — $ 1 $ 165 Purchased credit impaired finance receivables — — 12 — 12 TDR finance receivables 9 4 34 — 47 Total $ 173 $ 4 $ 46 $ 1 $ 224 Finance receivables: Collectively evaluated for impairment $ 4,271 $ 1,340 $ 387 $ 23 $ 6,021 Purchased credit impaired finance receivables — 350 42 — 392 TDR finance receivables 29 13 109 — 151 Total $ 4,300 $ 1,703 $ 538 $ 23 $ 6,564 Allowance for finance receivable losses as a percentage of finance receivables 4.01 % 0.25 % 8.72 % 3.46 % 3.42 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment securities | |
Schedule of Available-for-sale Securities Reconciliation | Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 13 $ — $ — $ 13 Obligations of states, municipalities, and political subdivisions 83 — (1 ) 82 Non-U.S. government and government sponsored entities 5 — — 5 Corporate debt 356 2 (5 ) 353 Mortgage-backed, asset-backed, and collateralized: Residential mortgage-backed securities (“RMBS”) 39 — — 39 Commercial mortgage-backed securities (“CMBS”) 33 — — 33 Collateralized debt obligations (“CDO”)/Asset-backed securities (“ABS”) 46 — — 46 Total bonds 575 2 (6 ) 571 Preferred stock (a) 6 — — 6 Other long-term investments 1 — — 1 Total (b) $ 582 $ 2 $ (6 ) $ 578 December 31, 2015 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 83 $ — $ (1 ) $ 82 Obligations of states, municipalities, and political subdivisions 88 1 — 89 Corporate debt 278 2 (13 ) 267 Mortgage-backed, asset-backed, and collateralized: RMBS 74 — — 74 CMBS 44 — — 44 CDO/ABS 30 — (1 ) 29 Total bonds 597 3 (15 ) 585 Preferred stock (a) 6 — (1 ) 5 Other long-term investments 1 — — 1 Total (b) $ 604 $ 3 $ (16 ) $ 591 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2016 and 2015 , which is classified as a restricted investment and carried at cost. |
Schedule of fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2016 Bonds: U.S. government and government sponsored entities $ 9 $ — $ — $ — $ 9 $ — Obligations of states, municipalities, and political subdivisions 57 (1 ) 2 — 59 (1 ) Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 171 (5 ) 5 — 176 (5 ) RMBS 33 — — — 33 — CMBS 22 — — — 22 — CDO/ABS 25 — — — 25 — Total bonds 320 (6 ) 7 — 327 (6 ) Preferred stock — — 6 — 6 — Total $ 320 $ (6 ) $ 13 $ — $ 333 $ (6 ) December 31, 2015 Bonds: U.S. government and government sponsored entities $ 76 $ (1 ) $ — $ — $ 76 $ (1 ) Obligations of states, municipalities, and political subdivisions 36 — 2 — 38 — Corporate debt 189 (13 ) 7 — 196 (13 ) RMBS 68 — — — 68 — CMBS 36 — 5 — 41 — CDO/ABS 29 (1 ) — — 29 (1 ) Total bonds 434 (15 ) 14 — 448 (15 ) Preferred stock — — 6 (1 ) 6 (1 ) Other long-term investments 1 — — — 1 — Total $ 435 $ (15 ) $ 20 $ (1 ) $ 455 $ (16 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. |
Changes in cumulative credit losses on other than temporarily impaired AFS securities | Changes in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities were as follows: (dollars in millions) At or for the Year Ended December 31, 2016 Balance at beginning of period $ 1 Reductions: Realized due to dispositions with no prior intention to sell 1 Balance at end of period $ — |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2016 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 $ 37 $ 38 Due after 1 year through 5 years 231 232 Due after 5 years through 10 years 39 39 Due after 10 years 146 148 Mortgage-backed, asset-backed, and collateralized securities 118 118 Total $ 571 $ 575 |
Schedule of fair value of trading securities by type | The fair value of trading and other securities by type was as follows: (dollars in millions) December 31, 2016 2015 Fixed maturity trading and other securities: Bonds Corporate debt $ 2 $ 10 Mortgage-backed, asset-backed, and collateralized: CMBS 1 2 Total * $ 3 $ 12 * The fair value of other securities, which we have elected the fair value option, totaled $3 million at December 31, 2016 and $2 million at December 31, 2015 . |
Available-for-sale securities | |
Investment securities | |
Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities | The proceeds of available-for-sale securities sold or redeemed and the resulting realized gains, realized losses, and net realized gains were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Proceeds from sales and redemptions $ 308 $ 416 $ 260 Realized gains $ 9 $ 15 $ 9 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 8 $ 14 $ 8 |
Trading securities | |
Investment securities | |
Schedule of net unrealized and realized gains (losses) on trading securities | The net unrealized and realized gains (losses) on our trading and other securities, which we report in investment revenues, were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Net unrealized gains (losses) on trading and other securities held at year end $ — $ 4 $ (9 ) Net realized gains (losses) on trading and other securities sold or redeemed during the year 1 (3 ) 5 Total $ 1 $ 1 $ (4 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets [Abstract] | |
Schedule of components of other assets | Components of other assets were as follows: (dollars in millions) December 31, 2016 2015 Fixed assets, net (a) $ 70 $ 83 Receivables from parent and affiliates 40 9 Prepaid expenses and deferred charges 38 35 Other investments (b) 30 67 Ceded insurance reserves 22 22 Other intangible assets 15 16 Cost basis investments 11 10 Escrow advance receivable 10 11 Real estate owned 4 8 Receivables related to sales of real estate loans and related trust assets (d) 3 5 Deferred tax assets 2 — Current tax receivable (c) — 8 Other 6 7 Total $ 251 $ 281 (a) Fixed assets were net of accumulated depreciation of $180 million at December 31, 2016 and $173 million at December 31, 2015 . (b) Other investments primarily include commercial mortgage loans, receivables related to investments, and accrued investment income. (c) Current tax receivable includes current federal and state tax assets. (d) Receivables related to sales of real estate loans and related trust assets reflect the remaining balances of holdback provisions as of December 31, 2016 and 2015 . |
Schedule of gross carrying amount and accumulated amortization, in total and by major intangible asset class | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2016 Value of business acquired (“VOBA”) $ 36 $ (33 ) $ 3 Customer relationships 18 (18 ) — Licenses 12 — 12 Customer lists 9 (9 ) — Total $ 75 $ (60 ) $ 15 December 31, 2015 VOBA $ 36 $ (32 ) $ 4 Customer relationships 18 (18 ) — Licenses 12 — 12 Customer lists 9 (9 ) — Total $ 75 $ (59 ) $ 16 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of carrying value and fair value of long-term debt by type | Carrying value and fair value of long-term debt by type were as follows: December 31, 2016 December 31, 2015 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 6,665 $ 7,150 $ 9,410 $ 9,753 Junior subordinated debt 172 158 172 245 Total $ 6,837 $ 7,308 $ 9,582 $ 9,998 |
Schedule of weighted average interest rates on long-term debt by type | Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2016 2015 2014 2016 2015 Senior debt 7.18 % 6.96 % 7.10 % 7.46 % 6.66 % Junior subordinated debt 12.26 12.26 12.26 12.26 12.26 Total 7.30 7.05 7.19 7.59 6.76 |
Schedule of principal maturities of long-term debt by type of debt | Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2016 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.50% 5.25% - 8.25% 6.00% First quarter 2017 $ — $ — $ — $ — Second quarter 2017 — — — — Third quarter 2017 — 257 — 257 Fourth quarter 2017 — 1,030 — 1,030 2017 — 1,287 — 1,287 2018 — — — — 2019 — 700 — 700 2020 — 1,300 — 1,300 2021 — 650 — 650 2022-2067 — 300 350 650 Securitizations (b) 2,687 — — 2,687 Total principal maturities $ 2,687 $ 4,237 $ 350 $ 7,274 Total carrying amount $ 2,675 $ 3,990 $ 172 $ 6,837 Debt issuance costs (c) $ (12 ) $ (15 ) $ — $ (27 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2016 . (b) Securitizations and borrowings under revolving conduit facilities are not included in above maturities by period due to their variable monthly repayments. At December 31, 2016 , there were no amounts drawn under our revolving conduit facilities. See Note 13 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (c) Debt issuance costs are reported as a direct deduction from long-term debt, with the exception of debt issuance costs associated with our revolving conduit facilities, which totaled $9 million at December 31, 2016 and are reported in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts were as follows: (dollars in millions) December 31, 2016 2015 Assets Cash and cash equivalents $ 2 $ 7 Finance receivables: Personal loans 2,943 3,621 SpringCastle Portfolio — 1,703 Allowance for finance receivable losses 94 128 Finance receivables held for sale — 435 Restricted cash and cash equivalents 211 282 Other assets 9 48 Liabilities Long-term debt $ 2,675 $ 5,513 Other liabilities 7 9 Our securitized borrowings at December 31, 2016 consisted of the following: (dollars in millions) Current Current Weighted Average Interest Rate Original Revolving Period Consumer Securitizations: SLFT 2014-A (a) $ 217 2.78 % 2 years SLFT 2015-A (b) 1,163 3.47 % 3 years SLFT 2015-B (c) 314 3.78 % 5 years SLFT 2016-A (d) 500 3.10 % 2 years Total consumer securitizations 2,194 Auto Securitization: ODART 2016-1 (e) 493 2.37 % not applicable Total secured structured financings (f) (g) $ 2,687 (a) SLFT 2014-A Securitization. On March 26, 2014, we issued $ 592 million of notes backed by personal loans. The notes mature in December 2022. We initially retained $ 33 million of the asset-backed notes. (b) SLFT 2015-A Securitization. On February 26, 2015, we issued $ 1.2 billion of notes backed by personal loans. The notes mature in November 2024. (c) SLFT 2015-B Securitization. On April 7, 2015, we issued $ 314 million of notes backed by personal loans. The notes mature in May 2028. (d) SLFT 2016-A Securitization. On December 14, 2016, we issued $ 532 million of notes backed by personal loans. The notes mature in November 2029. We initially retained $ 32 million of the asset-backed notes. (e) ODART 2016-1 Securitization. On July 19, 2016, we issued $ 754 million of notes backed by direct auto loans. The maturity dates of the notes occur in January 2021 for the Class A notes, May 2021 for the Class B notes, September 2021 for the Class C notes and February 2023 for the Class D notes. We initially retained $ 54 million of the Class D notes. (f) Call of 2013-B Notes. On February 16, 2016, we exercised our right to redeem the asset-backed notes issued in June 2013 by the Springleaf Funding Trust 2013-B (the “2013-B Notes”) for a redemption price of $371 million . The outstanding principal balance of the asset-backed notes was $400 million on the date of the optional redemption. (g) Deconsolidation of SCFT 2014-A Notes. As a result of the SpringCastle Interests Sale, we deconsolidated the previously issued securitized interests of the SpringCastle Funding asset-backed notes (the “SCFT 2014-A Notes”) on March 31, 2016. |
Schedule of borrowings under conduit facilities | As of December 31, 2016 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End First Avenue Funding LLC (a) $ 250 $ — June 2018 Midbrook 2013-VFN1 Trust (b) 100 — February 2018 Second Avenue Funding LLC 250 — June 2018 Springleaf 2013-VFN1 Trust (c) 850 — January 2018 Sumner Brook 2013-VFN1 Trust 350 — January 2018 Whitford Brook 2014-VFN1 Trust (d) 250 — June 2018 Seine River Funding, LLC (e) 500 — December 2019 Total (f) $ 2,550 $ — (a) First Avenue Funding LLC. On June 30, 2016, we amended the note purchase agreement with the First Avenue Funding LLC (“First Avenue”) to extend the revolving period ending in March 2018 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying direct auto loans and will be due and payable in full 12 months following the maturity of the last direct auto loan held by First Avenue. (b) Midbrook 2013-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Midbrook Funding Trust 2013-VFN1 to (i) extend the revolving period ending in June 2016 to February 2018 and (ii) decrease the maximum principal balance from $300 million to $250 million on February 24, 2017. On December 20, 2016, we voluntarily reduced the maximum principal balance available under the variable funding notes from $300 million to $100 million . On February 24, 2017, the maximum principal balance will automatically decrease from $100 million to $50 million . Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. (c) Springleaf 2013-VFN1 Trust. On January 21, 2016, we amended the note purchase agreement with the Springleaf 2013-VFN1 Trust to (i) increase the maximum principal balance from $350 million to $850 million and (ii) extend the revolving period ending in April 2017 to January 2018, which may be extended to January 2019, subject to the satisfaction of customary conditions precedent. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 36 th month following the end of the revolving period. (d) Whitford Brook 2014-VFN1 Trust. On February 24, 2016, we amended the note purchase agreement with the Whitford Brook Funding Trust 2014-VFN1 to extend the revolving period ending in June 2017 to June 2018. Following the revolving period, the principal amount of the notes, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in the 12 th month following the end of the revolving period. (e) Seine River Funding, LLC. On December 22, 2016, we entered into a loan and security agreement (the “Seine River LSA”) with third party lenders pursuant to which we may borrow up to a maximum principal balance of $ 500 million . Any amounts borrowed under the Seine River LSA will be backed by personal loans acquired from subsidiaries of SFC from time to time. Following the revolving period, the principal balance of any outstanding loans, if any, will be reduced as cash payments are received on the underlying personal loans and will be due and payable in full in December 2022. (f) Termination of Mill River 2015-VFN1 Trust. On January 21, 2016, we amended the note purchase agreement with the Mill River 2015-VFN1 Trust to decrease the maximum principal balance from $400 million to $100 million . On December 20, 2016, we voluntarily terminated the note purchase agreement with the Mill River 2015-VFN1 Trust. |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Schedule of components of insurance claims and policyholder liabilities | Components of unearned insurance premium reserves, claim reserves and benefit reserves were as follows: (dollars in millions) December 31, 2016 2015 Finance receivable related: Payable to SFC: Unearned premium reserves $ 189 $ 222 Claim reserves 23 28 Subtotal (a) 212 250 Payable to OMH: Unearned premium reserves (b) 6 — Payable to third-party beneficiaries: Unearned premium reserves 25 — Benefit reserves 105 113 Claim reserves 6 4 Subtotal (b) 136 117 Non-finance receivable related: Benefit reserves 65 72 Claim reserves 41 41 Subtotal (b) 106 113 Total $ 460 $ 480 (a) Reported as a contra-asset to net finance receivables. (b) Reported in insurance claims and policyholder liabilities. |
Schedule of changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | Changes in the reserve for unpaid claims and loss adjustment expenses (not considering reinsurance recoverable): (dollars in millions) At or for the Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 73 $ 70 $ 68 Less reinsurance recoverables (22 ) (22 ) (22 ) Net balance at beginning of period 51 48 46 Additions for losses and loss adjustment expenses incurred to: Current year 65 64 65 Prior years * — — (3 ) Total 65 64 62 Reductions for losses and loss adjustment expenses paid related to: Current year (44 ) (40 ) (39 ) Prior years (24 ) (21 ) (21 ) Total (68 ) (61 ) (60 ) Net balance at end of period 48 51 48 Plus reinsurance recoverables 22 22 22 Balance at end of period $ 70 $ 73 $ 70 * Reflects a redundancy in the prior years’ net reserves of $3 million at December 31, 2014 primarily resulting from the settlement of claims incurred in prior years for amounts that were less than expected. |
Short-duration Insurance Contracts, Claims Development | Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2016 , were as follows: Years Ended December 31, At December 31, 2016 (dollars in millions) 2012 (a) 2013 (a) 2014 (a) 2015 (a) 2016 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2012 $ 39 $ 33 $ 32 $ 32 $ 33 $ — 19,981 2.8 % 2013 — 42 38 38 38 — 22,067 2.8 % 2014 — — 50 46 46 1 24,931 2.8 % 2015 — — — 54 50 5 26,180 2.8 % 2016 — — — — 55 20 24,235 2.6 % Total $ 222 (a) Unaudited. (b) Includes expected development on reported claims. (c) Frequency for each accident year is calculated as the ratio of all reported claims incurred to the total exposures in force. Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2016 , were as follows: Years Ended December 31, (dollars in millions) 2012 * 2013 * 2014 * 2015 * 2016 Credit Insurance Accident Year 2012 $ 20 $ 30 $ 32 $ 32 $ 32 2013 — 23 34 37 38 2014 — — 28 41 45 2015 — — — 31 45 2016 — — — — 36 Total $ 196 All outstanding liabilities before 2012, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 26 * Unaudited. The reconciliations of the net incurred and paid claims development to the liability for claims and claim adjustment expenses were as follows: (dollars in millions) December 31, 2016 2015 * 2014 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 26 $ 29 $ 24 Other short-duration insurance lines 19 19 21 Total 45 48 45 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 22 22 22 Insurance lines other than short-duration 3 3 3 Total gross liability for unpaid claims and claim adjustment expense $ 70 $ 73 $ 70 * Unaudited. |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2016 , were as follows: Years 1 2 3 4 5 Credit insurance 62.2 % 28.3 % 7.8 % 1.9 % 0.2 % |
Schedule of statutory net income for insurance companies by type of insurance | Statutory net income (loss) for our insurance companies by type of insurance was as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Property and casualty $ 11 $ 15 $ 16 Life and health 20 (1 ) (2 ) |
Schedule of statutory capital and surplus for insurance companies by type of insurance | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2016 2015 Property and casualty $ 63 $ 76 Life and health 133 123 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of components of other liabilities | Components of other liabilities were as follows: (dollars in millions) December 31, 2016 2015 Accrued interest on debt $ 48 $ 55 Other accrued expenses and accounts payable 39 31 Retirement plans 31 55 Payables to parent and affiliates * 13 24 Loan principal warranty reserve 13 15 Salary and benefit liabilities 11 14 Other insurance liabilities 6 5 Other 24 17 Total $ 185 $ 216 * See Note 11 for further information on payables to parent and affiliates. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2016 were as follows: Special Stock Common Stock Par value $ — $ 0.50 Shares authorized 25,000,000 25,000,000 |
Schedule of shares issued and outstanding | Shares issued and outstanding were as follows: Special Stock Common Stock December 31, 2016 2015 2016 2015 Shares issued and outstanding — — 10,160,021 10,160,020 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2016 Balance at beginning of period $ (9 ) $ (19 ) $ 4 $ (24 ) Other comprehensive income before reclassifications 11 15 — 26 Reclassification adjustments from accumulated other comprehensive income (loss) (5 ) — (4 ) (9 ) Balance at end of period $ (3 ) $ (4 ) $ — $ (7 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (12 ) (6 ) — (18 ) Reclassification adjustments from accumulated other comprehensive income (loss) (9 ) — — (9 ) Balance at end of period $ (9 ) $ (19 ) $ 4 $ (24 ) Year Ended December 31, 2014 Balance at beginning of period $ 4 $ 20 $ 4 $ 28 Other comprehensive income (loss) before reclassifications 13 (33 ) — (20 ) Reclassification adjustments from accumulated other comprehensive income (5 ) — — (5 ) Balance at end of period $ 12 $ (13 ) $ 4 $ 3 |
Schedule of reclassification adjustments from accumulated other comprehensive income (loss) | Reclassification adjustments from accumulated other comprehensive income (loss) to the applicable line item on our consolidated statements of operations were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 8 $ 14 $ 8 Income tax effect (3 ) (5 ) (3 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 5 9 5 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues 4 — — Total $ 9 $ 9 $ 5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Components of income before provision for income taxes were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Income before provision for income taxes - U.S. operations $ 347 $ 152 $ 676 Income (loss) before provision for income taxes - foreign operations (1 ) 7 2 Total $ 346 $ 159 $ 678 |
Schedule of components of benefit from income taxes | Components of provision for income taxes were as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Current: Federal $ 181 $ 63 $ 228 Foreign * — — — State 15 5 17 Total current 196 68 245 Deferred: Federal (77 ) (46 ) (10 ) Foreign * — — — State (6 ) (4 ) (2 ) Total deferred (83 ) (50 ) (12 ) Total $ 113 $ 18 $ 233 * Provision for foreign income taxes was less than $1 million and, therefore, is not quantified in the table above. |
Schedule of reconciliations of statutory federal income tax rate to effective tax rate | Reconciliations of the statutory federal income tax rate to the effective tax rate were as follows: Years Ended December 31, 2016 2015 2014 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Non-controlling interests (2.86 ) (27.91 ) (2.51 ) State income taxes, net of federal 1.66 0.23 1.50 Tax impact of United Kingdom subsidiary liquidation (0.62 ) — — Excess tax benefit on share-based compensation (0.20 ) — — Nontaxable investment income (0.12 ) (0.29 ) (0.14 ) Nondeductible compensation — 3.39 — Other, net (0.10 ) 0.70 0.52 Effective income tax rate 32.76 % 11.12 % 34.37 % |
Schedule of reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 9 $ 4 $ 2 Increases in tax positions for current years 2 4 — Increases in tax positions for prior years — 4 3 Decreases in tax positions for prior years — (2 ) — Settlements with tax authorities — (1 ) — Lapse in statute of limitations — — (1 ) Balance at end of year $ 11 $ 9 $ 4 |
Schedule of components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 77 $ 95 Mark-to-market 55 — State taxes, net of federal 27 19 Pension/employee benefits 13 26 Legal and warranty reserve 6 6 Federal and foreign net operating losses and tax attributes 3 16 Capital loss carryforward — 27 Joint venture — 8 Deferred insurance commissions — 5 Payment protection insurance liability — 2 Other 2 8 Total 183 212 Deferred tax liabilities: Debt fair value adjustment 118 150 Impact of tax accounting method change 38 76 Discount - debt exchange 16 20 Insurance reserves 14 15 Other intangible assets 5 5 Mark-to-market — 21 Other 5 — Total 196 287 Net deferred tax liabilities before valuation allowance (13 ) (75 ) Valuation allowance (29 ) (38 ) Net deferred tax liabilities $ (42 ) $ (113 ) |
Lease Commitments, Rent Expen45
Lease Commitments, Rent Expense, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis and the amortization of the lease intangibles recorded as a result of the Fortress Acquisition | Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases, excluding leases on a month-to-month basis, were as follows: (dollars in millions) Lease Commitments First quarter 2017 $ 5 Second quarter 2017 5 Third quarter 2017 5 Fourth quarter 2017 5 2017 20 2018 16 2019 10 2020 6 2021 2 2022+ 1 Total $ 55 |
Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations | The activity in our reserve for sales recourse obligations primarily associated with the real estate loan sales during 2014 was as follows: (dollars in millions) At or for the Years Ended December 31, 2016 2015 2014 Balance at beginning of period $ 15 $ 24 $ 5 Recourse losses — (2 ) — Provision for recourse obligations, net of recoveries * (2 ) (7 ) 19 Balance at end of period $ 13 $ 15 $ 24 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of funded status of the defined benefit pension plans and other postretirement benefit plans | We have recognized the aggregate of all overfunded plans in other assets and the aggregate of all underfunded plans in other liabilities. (dollars in millions) Pension (a) Postretirement (b) At or for the Years Ended December 31, 2016 2015 2014 2014 Projected benefit obligation, beginning of period $ 388 $ 409 $ 323 $ 2 Interest cost 16 15 15 — Actuarial loss (gain) (6 ) (24 ) 83 — Benefits paid: Plan assets (13 ) (12 ) (12 ) — Curtailment — — — (2 ) Projected benefit obligation, end of period 385 388 409 — Fair value of plan assets, beginning of period 333 359 317 — Actual return on plan assets, net of expenses 33 (15 ) 54 — Company contributions 1 1 — — Benefits paid: Plan assets (13 ) (12 ) (12 ) — Fair value of plan assets, end of period 354 333 359 — Funded status, end of period $ (31 ) $ (55 ) $ (50 ) $ — Other liabilities recognized in the consolidated balance sheet $ (31 ) $ (55 ) $ (50 ) $ — Pretax net loss recognized in accumulated other comprehensive income or loss $ (7 ) $ 29 $ (19 ) $ — (a) Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $10 million at December 31, 2016 , 2015 , and 2014. (b) We do not currently fund postretirement benefits. |
Schedule of defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets | Defined benefit pension plan obligations in which the projected benefit obligation (“PBO”) was in excess of the related plan assets and the accumulated benefit obligation (“ABO”) was in excess of the related plan assets were as follows: (dollars in millions) PBO and ABO Exceeds December 31, 2016 2015 Projected benefit obligation $ 385 $ 388 Accumulated benefit obligation 385 388 Fair value of plan assets 354 333 |
Schedule of components of net periodic benefit cost in income and other amounts recognized in accumulated other comprehensive income or loss | The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in accumulated other comprehensive income or loss with respect to the defined benefit pension plans and other postretirement benefit plans: (dollars in millions) Pension Postretirement Years Ended December 31, 2016 2015 2014 2014 Components of net periodic benefit cost: Interest cost $ 16 $ 15 $ 15 $ — Expected return on assets (17 ) (19 ) (16 ) — Curtailment gain — — — (2 ) Settlement gain — — — (4 ) Net periodic benefit cost (1 ) (4 ) (1 ) (6 ) Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: Net actuarial loss (gain) (22 ) 9 46 — Net settlement gain — — — 4 Total recognized in other comprehensive income or loss (22 ) 9 46 4 Total recognized in net periodic benefit cost and other comprehensive income or loss $ (23 ) $ 5 $ 45 $ (2 ) |
Summary of weighted average assumptions used to determine projected benefit obligations and net periodic benefit costs | The following table summarizes the weighted average assumptions used to determine the projected benefit obligations and the net periodic benefit costs: Pension Postretirement December 31, 2016 2015 2016 2015 Projected benefit obligation: Discount rate 4.04 % 4.26 % * 3.45 % Rate of compensation increase — — * * Net periodic benefit costs: Discount rate 4.26 % 3.89 % * 3.80 % Expected long-term rate of return on plan assets 5.27 % 5.27 % * * Rate of compensation increase (average) — — * * * Not applicable |
Schedule of expected future benefit payments, net of participants' contributions, of defined benefit pension plans and other postretirement benefit plans | The expected future benefit payments, net of participants’ contributions, of our defined benefit pension plans at December 31, 2016 are as follows: (dollars in millions) Pension 2017 $ 15 2018 15 2019 16 2020 16 2021 17 2022-2026 90 |
Schedule of plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs utilized to determine fair value | The following table presents information about our plan assets measured at fair value and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: (dollars in millions) Level 1 Level 2 Level 3 Total December 31, 2016 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 17 — 17 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 310 — 310 U.S. high yield (d) — 9 — 9 Total $ 3 $ 351 $ — $ 354 December 31, 2015 Assets: Cash and cash equivalents $ 3 $ — $ — $ 3 Equity securities: U.S. (a) — 16 — 16 International (b) — 15 — 15 Fixed income securities: U.S. investment grade (c) — 291 — 291 U.S. high yield (d) — 8 — 8 Total $ 3 $ 330 $ — $ 333 (a) Includes index mutual funds that primarily track several indices including Standard and Poor’s Rating Services (“S&P”) 500 and S&P 600 in addition to other actively managed accounts, comprised of investments in large cap companies. (b) Includes investment mutual funds in companies in emerging and developed markets. (c) Includes investment mutual funds in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds. (d) Includes investment mutual funds in securities or debt obligations that have a rating below investment grade. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted stock activity | The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2016 2,007,927 $ 33.94 Granted 59,315 26.14 Vested (441,944 ) 22.77 Forfeited (242,378 ) 41.49 Unvested at December 31, 2016 1,382,920 35.86 2.13 |
Summary of performance activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2016 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2016 581,113 $ 25.79 Vested (164,673 ) 25.10 Forfeited (8,492 ) 31.62 Unvested at December 31, 2016 407,948 25.94 1.71 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 1,192 $ 102 $ 47 $ 4 $ 5 $ 1,350 Interest expense 402 20 43 9 82 556 Provision for finance receivable losses 305 14 6 — 4 329 Net interest income (loss) after provision for finance receivable losses 485 68 (2 ) (5 ) (81 ) 465 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues * 219 — (29 ) 208 9 407 Other expenses 648 16 28 1 — 693 Income (loss) before provision for (benefit from) income taxes 56 219 (59 ) 202 (72 ) 346 Income before provision for income taxes attributable to non-controlling interests — 28 — — — 28 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 56 $ 191 $ (59 ) $ 202 $ (72 ) $ 318 Assets $ 5,494 $ — $ 361 $ 3,932 $ (68 ) $ 9,719 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Real Estate Other Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2015 Interest income $ 1,115 $ 455 $ 68 $ 8 $ — $ 11 $ 1,657 Interest expense 190 87 213 55 (5 ) 127 667 Provision for finance receivable losses 255 68 (2 ) 1 — 17 339 Net interest income (loss) after provision for finance receivable losses 670 300 (143 ) (48 ) 5 (133 ) 651 Other revenues 212 5 4 42 (5 ) (15 ) 243 Other expenses 622 61 33 17 — 2 735 Income (loss) before provision for (benefit from) income taxes 260 244 (172 ) (23 ) — (150 ) 159 Income before provision for income taxes attributable to non-controlling interests — 127 — — — — 127 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 260 $ 117 $ (172 ) $ (23 ) $ — $ (150 ) $ 32 Assets $ 5,632 $ 1,784 $ 711 $ 4,119 $ — $ (58 ) $ 12,188 At or for the Year Ended December 31, 2014 Interest income $ 911 $ 212 $ 401 $ 16 $ — $ 85 $ 1,625 Interest expense 163 36 349 7 (5 ) 133 683 Provision for finance receivable losses 200 36 128 7 — (19 ) 352 Net interest income (loss) after provision for finance receivable losses 548 140 (76 ) 2 5 (29 ) 590 Other revenues 215 (15 ) 162 6 (5 ) 382 745 Other expenses 523 30 91 10 — 3 657 Income (loss) before provision for (benefit from) income taxes 240 95 (5 ) (2 ) — 350 678 Income before provision for income taxes attributable to non-controlling interests — 48 — — — — 48 Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation $ 240 $ 47 $ (5 ) $ (2 ) $ — $ 350 $ 630 Assets $ 4,218 $ 2,536 $ 3,665 $ 555 $ — $ 24 $ 10,998 * Other revenues reported in “Other” primarily includes interest income on the Cash Services Note (previously referred to as the “Independence Demand Note”) and on SFC’s note receivable from SFI. See Note 11 for further information on the notes receivable from parent and affiliates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table summarizes the fair values and carrying values of our financial instruments and indicates the fair value hierarchy based on the level of inputs we utilized to determine such fair values: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2016 Assets Cash and cash equivalents $ 198 $ 42 $ — $ 240 $ 240 Investment securities — 580 2 582 582 Net finance receivables, less allowance for finance receivable losses — — 5,122 5,122 4,755 Finance receivables held for sale — — 159 159 153 Notes receivable from parent and affiliates — 3,723 — 3,723 3,723 Restricted cash and cash equivalents 227 — — 227 227 Other assets: Commercial mortgage loans — — 24 24 24 Escrow advance receivable — — 10 10 10 Receivables from parent and affiliates — 40 — 40 40 Receivables related to sales of real estate loans and related trust assets — 1 — 1 3 Liabilities Long-term debt $ — $ 7,308 $ — $ 7,308 $ 6,837 Payables to parent and affiliates — 13 — 13 13 December 31, 2015 Assets Cash and cash equivalents $ 321 $ — $ — $ 321 $ 321 Investment securities — 602 2 604 604 Net finance receivables, less allowance for finance receivable losses — — 6,897 6,897 6,340 Finance receivables held for sale — — 819 819 793 Notes receivable from parent and affiliates — 3,804 — 3,804 3,804 Restricted cash and cash equivalents 295 — — 295 295 Other assets: Commercial mortgage loans — — 62 62 62 Escrow advance receivable — — 11 11 11 Receivables from parent and affiliates — 9 — 9 9 Receivables related to sales of real estate loans and related trust assets — 1 — 1 5 Liabilities Long-term debt $ — $ 9,998 $ — $ 9,998 $ 9,582 Payables to parent and affiliates — 24 — 24 24 |
Schedule of information about assets and liabilities measured at fair value on a recurring basis and the fair value hierarchy based on the levels of inputs utilized to determine such fair value | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 119 $ — $ — $ 119 Cash equivalents securities — 42 — 42 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 13 — 13 Obligations of states, municipalities, and political subdivisions — 82 — 82 Non-U.S. government and government sponsored entities — 5 — 5 Corporate debt — 353 — 353 RMBS — 39 — 39 CMBS — 33 — 33 CDO/ABS — 46 — 46 Total bonds — 571 — 571 Preferred stock — 6 — 6 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 577 1 578 Other securities Bonds: Corporate debt — 2 — 2 CMBS — 1 — 1 Total other securities — 3 — 3 Total investment securities — 580 1 581 Restricted cash in mutual funds 212 — — 212 Total $ 331 $ 622 $ 1 $ 954 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2016 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2015 Assets Cash equivalents in mutual funds $ 224 $ — $ — $ 224 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 82 — 82 Obligations of states, municipalities, and political subdivisions — 89 — 89 Corporate debt — 267 — 267 RMBS — 74 — 74 CMBS — 44 — 44 CDO/ABS — 29 — 29 Total bonds — 585 — 585 Preferred stock — 5 — 5 Other long-term investments — — 1 1 Total available-for-sale securities (b) — 590 1 591 Trading and other securities Bonds: Corporate debt — 10 — 10 CMBS — 2 — 2 Total trading and other securities (c) — 12 — 12 Total investment securities — 602 1 603 Restricted cash in mutual funds 276 — — 276 Total $ 500 $ 602 $ 1 $ 1,103 (a) Due to the insignificant activity within the Level 3 assets during 2015 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and Federal Home Loan Bank common stock of $1 million at December 31, 2015 , which is carried at cost. (c) The fair value of other securities totaled $2 million at December 31, 2015 . |
Schedule of assets measured at fair value on a non-recurring basis on which impairment charges were recorded | Assets measured at fair value on a non-recurring basis on which we recorded impairment charges were as follows: Fair Value Measurements Using * Impairment Charges (dollars in millions) Level 1 Level 2 Level 3 Total At or for the Year Ended December 31, 2016 Assets Finance receivables held for sale $ — $ — $ 159 $ 159 $ 4 Real estate owned — — 5 5 2 Total $ — $ — $ 164 $ 164 $ 6 At or for the Year Ended December 31, 2015 Assets Real estate owned $ — $ — $ 11 $ 11 $ 3 Total $ — $ — $ 11 $ 11 $ 3 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. |
Quantitative information about Level 3 inputs for assets measured on a nonrecurring basis | Quantitative information about Level 3 inputs for our assets measured at fair value on a non-recurring basis at December 31, 2016 and 2015 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2016 December 31, 2015 Finance receivables held for sale Income approach Market value for similar type loan transactions to obtain a price point * — Real estate owned Market approach Third-party valuation * * * We applied the third-party exception which allows us to omit certain quantitative disclosures about unobservable inputs for the assets measured at fair value on a non-recurring basis included in the table above. As a result, the weighted average ranges of the inputs for these assets are not applicable. |
Selected Quarterly Financial 50
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | Our selected quarterly financial data for 2016 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 303 $ 303 $ 313 $ 431 Interest expense 127 135 138 156 Provision for finance receivable losses 66 87 85 91 Other revenues 105 107 106 256 Other expenses 170 155 177 191 Income before provision for income taxes 45 33 19 249 Provision for income taxes 12 10 6 85 Net income 33 23 13 164 Net income attributable to non-controlling interests — — — 28 Net income attributable to Springleaf Finance Corporation $ 33 $ 23 $ 13 $ 136 Our selected quarterly financial data for 2015 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 430 $ 422 $ 406 $ 399 Interest expense 167 171 171 158 Provision for finance receivable losses 109 78 73 79 Other revenues 81 49 59 54 Other expenses 198 182 186 169 Income before provision for income taxes 37 40 35 47 Provision for income taxes 4 5 — 9 Net income 33 35 35 38 Net income attributable to non-controlling interests 29 32 33 33 Net income attributable to Springleaf Finance Corporation $ 4 $ 3 $ 2 $ 5 |
Nature of Operations - paragrap
Nature of Operations - paragraph 2 (Details) | Dec. 31, 2016 |
Springleaf Financial Holdings, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 58.00% |
Significant Transactions OMH Ac
Significant Transactions OMH Acquisition of OneMain Financial Holding, LLC (Details) - OneMain $ in Billions | Nov. 15, 2015USD ($) | Nov. 13, 2015statebranch |
Business Acquisition [Line Items] | ||
Cash consideration | $ | $ 4.5 | |
Number of branches divested | branch | 127 | |
Number of states where branches were divested | state | 11 |
Significant Transactions Spring
Significant Transactions Springcastle Interests Sale (Details) $ in Millions | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net finance receivables | $ 4,959 | $ 6,564 | ||||
Escrow advance receivable | 10 | 11 | ||||
Net gain on sale of SpringCastle interests | $ 167 | $ 167 | $ 0 | $ 0 | ||
Springleaf Financial Holdings, LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 58.00% | |||||
Ownership percentage by initial stockholder | 58.00% | 58.00% | ||||
SpringCastle Portfolio | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of loans acquired, over | 232,000 | |||||
Net finance receivables | $ 1,700 | |||||
SpringCastle Interests Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 47.00% | 47.00% | ||||
Aggregate purchase price | $ 112 | $ 112 | ||||
Aggregate purchase price from sale of portfolio | 101 | 101 | ||||
Escrow advance receivable | $ 11 | $ 11 | ||||
Maximum number of years, the amount must be left in the escrow account | 5 years | |||||
SpringCastle Interests Sale | NRZ Consumer LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 30.00% | |||||
SpringCastle Interests Sale | Blackstone Buyers | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 23.00% |
Significant Transactions SFC No
Significant Transactions SFC Notes Offering (Details) - Springleaf Finance Corporation $ in Millions | Apr. 11, 2016USD ($) |
Guaranty Agreements | Senior Note 8.25%, due 2020 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1,000 |
Interest rates (as a percent) | 8.25% |
Beneficial Owners of Debt | Senior Notes due 2017 | Senior Notes due 2017 | |
Debt Instrument [Line Items] | |
Debt repurchased | $ 600 |
Significant Transactions Lendma
Significant Transactions Lendmark Sale (Details) $ in Millions | May 02, 2016USD ($) | Nov. 13, 2015 | Nov. 12, 2015USD ($)branch | Dec. 31, 2016USD ($) | May 13, 2016 | Apr. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||
Number of extensions | 2 | ||||||||
Interest Payable | $ 48 | $ 55 | |||||||
Sale of Branches to Lendmark | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of days to close sale of branches | 120 days | ||||||||
Sale price | $ 624 | ||||||||
Sale of Branches to Lendmark | Personal Loans | |||||||||
Business Acquisition [Line Items] | |||||||||
Loans receivable held for sale | $ 608 | ||||||||
Unpaid principal balance of loans sold | $ 600 | ||||||||
Sale of Branches to Lendmark | Maximum | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration from disposal of branches, threshold for certain limitations | $ 695 | ||||||||
Lendmark Sale | OMFH revolving demand note, OneMain Acquisition closing | OneMain Financial Holdings, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt repayment | $ 376 | ||||||||
Interest Payable | $ 6 | ||||||||
Lendmark Sale | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of branch offices | branch | 127 | ||||||||
Loans purchased multiplier as of Lendmark Sale closing date | 103.00% |
Significant Transactions Real E
Significant Transactions Real Estate Loan Sales (Details) - Real Estate Sale - USD ($) $ in Millions | Dec. 19, 2016 | Aug. 03, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale price | $ 58 | $ 246 |
Gain (loss) on sale of loans | $ 1 | $ 4 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies Basis of Presentation (Details) | Mar. 31, 2016 |
Corporate Joint Venture | |
Entity Information [Line Items] | |
Ownership percentage | 47.00% |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Change in Accounting Policy (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Shareholders' equity attributable to SFC | $ 2,343 | $ 2,111 | $ 2,343 | $ 2,111 | |||||||
Income (loss) before provision for (benefit from) income taxes | 45 | $ 33 | $ 19 | $ 249 | 37 | $ 40 | $ 35 | $ 47 | 346 | 159 | $ 678 |
Net income (loss) | $ 33 | $ 23 | $ 13 | $ 164 | $ 33 | $ 35 | $ 35 | $ 38 | 233 | $ 141 | 445 |
Derecognition of Purchased Credit Impaired Loans | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Income (loss) before provision for (benefit from) income taxes | (55) | ||||||||||
Net income (loss) | (34) | ||||||||||
Net income (loss) attributable to SFC | $ (36) | ||||||||||
Adjustments | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Shareholders' equity attributable to SFC | $ 37 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2016defermentstatesegmentpayment | Mar. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of business segments | segment | 3 | |
Number of states where personal lending has ceased | state | 14 | |
Finance receivables past due period | 60 days | |
Financing receivable, period which most repurchase requests occur | 5 years | |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of past due contractual payments to occur before finance charges stop accruing | 4 | |
Finance receivables period for write-off | 180 days | |
Retail Sales Finance Revolving Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of past due contractual payments to occur before finance charges stop accruing | 6 | |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables period for write-off | 180 days | |
Financing receivable, number of deferments allowed in twelve month period | deferment | 2 | |
Financing receivable, period for deferment allowance | 12 months | |
Residential Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, number of past due payments to trigger property inspection | 2 | |
Financing receivable, number of past due installments to trigger foreclosure | 4 | |
Real Estate Loans Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, number of deferments allowed in twelve month period | deferment | 1 | |
Real Estate Loans Branch | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, number of deferments allowed in twelve month period | deferment | 2 | |
Financing receivable, period for deferment allowance | 12 months | |
Minimum | Retail Sales Finance Retail Sales Contracts - serviced externally | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of past due contractual payments to occur before finance charges stop accruing | 3 | |
Maximum | Retail Sales Finance Retail Sales Contracts - serviced externally | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of past due contractual payments to occur before finance charges stop accruing | 4 | |
Corporate Joint Venture | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ownership percentage | 47.00% |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Prior Period Revisions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Provision for finance receivable losses | $ 66 | $ 87 | $ 85 | $ 91 | $ 109 | $ 78 | $ 73 | $ 79 | $ 329 | $ 339 | $ 352 |
Provision for income taxes | $ 12 | $ 10 | $ 6 | $ 85 | $ 4 | $ 5 | 0 | $ 9 | $ 113 | $ 18 | $ 233 |
Charge-off of Certain Bankrupt Accounts and Error in Calculation of Allowance of TDR Finance Receivables | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Provision for finance receivable losses | 8 | ||||||||||
Provision for income taxes | $ (3) |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Mar. 31, 2016 | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Personal loans of consolidated VIEs | $ 4,804,000,000 | $ 4,300,000,000 | |
Unused credit lines | 4,000,000 | 397,000,000 | |
Finance receivables held for sale | 153,000,000 | 793,000,000 | |
Amount of commitments to lend additional funds on TDR finance receivables | $ 0 | ||
Unlikely to be Collected Financing Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 60 days | ||
Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 90 days | ||
Default period TDR finance receivables to be considered Non-performing | 12 months | ||
Corporate Joint Venture | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Ownership percentage | 47.00% | ||
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 180 days | ||
Finance receivables held for sale | $ 617,000,000 | ||
Personal Loans | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 90 days | ||
Personal Loans | Consumer household goods or other items of personal property | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of personal loans | loan | 928,000 | 890,000 | |
Personal Loans | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Original term | 2 years | ||
Personal Loans | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Original term | 5 years | ||
Real Estate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables held for sale | $ 176,000,000 | ||
Real Estate Loans | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 90 days | ||
Real Estate Loans | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Original term | 360 months | ||
Retail Sales Finance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 180 days | ||
Retail Sales Finance | Nonperforming | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Finance receivables period for write-off | 90 days | ||
Retail Sales Finance | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Original term | 60 months |
Finance Receivables - By Type (
Finance Receivables - By Type (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 5,603 | $ 7,259 |
Unearned finance charges and points and fees | (754) | (835) |
Accrued finance charges | 64 | 95 |
Deferred origination costs | 46 | 45 |
Net finance receivables | 4,959 | 6,564 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 5,449 | 5,028 |
Unearned finance charges and points and fees | (754) | (833) |
Accrued finance charges | 63 | 60 |
Deferred origination costs | 46 | 45 |
Net finance receivables | 4,804 | 4,300 |
SpringCastle Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 1,672 | |
Accrued finance charges | 31 | |
Net finance receivables | 0 | 1,703 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 142 | 534 |
Unearned finance charges and points and fees | 1 | |
Accrued finance charges | 1 | 4 |
Net finance receivables | 144 | 538 |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 12 | 25 |
Unearned finance charges and points and fees | (1) | (2) |
Net finance receivables | $ 11 | $ 23 |
Finance Receivables - Geographi
Finance Receivables - Geographic Diversification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 4,959 | $ 6,564 |
Finance receivable | Geographic concentration | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 4,959 | $ 6,564 |
Concentration (as a percent) | 100.00% | 100.00% |
Finance receivable | Geographic concentration | Illinois | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 400 | $ 468 |
Concentration (as a percent) | 8.00% | 7.00% |
Finance receivable | Geographic concentration | North Carolina | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 398 | $ 593 |
Concentration (as a percent) | 8.00% | 9.00% |
Finance receivable | Geographic concentration | Indiana | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 360 | $ 403 |
Concentration (as a percent) | 7.00% | 6.00% |
Finance receivable | Geographic concentration | California | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 298 | $ 429 |
Concentration (as a percent) | 6.00% | 7.00% |
Finance receivable | Geographic concentration | Texas | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 288 | $ 292 |
Concentration (as a percent) | 6.00% | 4.00% |
Finance receivable | Geographic concentration | Georgia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 276 | $ 323 |
Concentration (as a percent) | 6.00% | 5.00% |
Finance receivable | Geographic concentration | Virginia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 266 | $ 334 |
Concentration (as a percent) | 5.00% | 5.00% |
Finance receivable | Geographic concentration | Ohio | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 266 | $ 371 |
Concentration (as a percent) | 5.00% | 6.00% |
Finance receivable | Geographic concentration | Pennsylvania | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 255 | $ 375 |
Concentration (as a percent) | 5.00% | 6.00% |
Finance receivable | Geographic concentration | Florida | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 254 | $ 345 |
Concentration (as a percent) | 5.00% | 5.00% |
Finance receivable | Geographic concentration | South Carolina | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 254 | $ 291 |
Concentration (as a percent) | 5.00% | 4.00% |
Finance receivable | Geographic concentration | Other | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 1,644 | $ 2,340 |
Concentration (as a percent) | 34.00% | 36.00% |
Finance Receivables - By Type A
Finance Receivables - By Type And By Days Delinquent (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Net finance receivables: | ||
Net finance receivables | $ 4,959 | $ 6,564 |
Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 4,804 | 4,300 |
SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1,703 |
Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 144 | 538 |
Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 11 | 23 |
Performing | ||
Net finance receivables: | ||
Net finance receivables | 4,814 | 6,394 |
Performing | Current | ||
Net finance receivables: | ||
Net finance receivables | 4,692 | 6,173 |
Performing | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 73 | 127 |
Performing | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 49 | 94 |
Performing | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 4,688 | 4,191 |
Performing | Personal Loans | Current | ||
Net finance receivables: | ||
Net finance receivables | 4,579 | 4,077 |
Performing | Personal Loans | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 64 | 65 |
Performing | Personal Loans | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 45 | 49 |
Performing | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1,663 |
Performing | SpringCastle Portfolio | Current | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1,588 |
Performing | SpringCastle Portfolio | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 49 |
Performing | SpringCastle Portfolio | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 26 |
Performing | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 115 | 518 |
Performing | Real Estate Loans | Current | ||
Net finance receivables: | ||
Net finance receivables | 102 | 486 |
Performing | Real Estate Loans | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 9 | 13 |
Performing | Real Estate Loans | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 4 | 19 |
Performing | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 11 | 22 |
Performing | Retail Sales Finance | Current | ||
Net finance receivables: | ||
Net finance receivables | 11 | 22 |
Performing | Retail Sales Finance | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Performing | Retail Sales Finance | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming | ||
Net finance receivables: | ||
Net finance receivables | 145 | 170 |
Nonperforming | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 120 | 153 |
Nonperforming | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 25 | 17 |
Nonperforming | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 116 | 109 |
Nonperforming | Personal Loans | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 112 | 106 |
Nonperforming | Personal Loans | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 4 | 3 |
Nonperforming | SpringCastle Portfolio | ||
Net finance receivables: | ||
Net finance receivables | 0 | 40 |
Nonperforming | SpringCastle Portfolio | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 39 |
Nonperforming | SpringCastle Portfolio | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1 |
Nonperforming | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 29 | 20 |
Nonperforming | Real Estate Loans | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 8 | 7 |
Nonperforming | Real Estate Loans | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 21 | 13 |
Nonperforming | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1 |
Nonperforming | Retail Sales Finance | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 1 |
Nonperforming | Retail Sales Finance | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Held For Investment And Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | $ 70 | $ 439 |
Outstanding balance | 107 | 618 |
Purchased credit impaired finance receivables | 8 | 12 |
SpringCastle Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 0 | 350 |
Outstanding balance | 0 | 482 |
Purchased credit impaired finance receivables | 0 | 0 |
FA Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 70 | 89 |
Outstanding balance | 107 | 136 |
Purchased credit impaired finance receivables | 8 | 12 |
Carrying amount of finance receivables held for sale | 54 | 59 |
Outstanding balance of finance receivables held for sale | $ 83 | $ 89 |
Finance Receivables - Changes I
Finance Receivables - Changes In Accretable Yield For Purchased Credit Impaired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | $ 441 | $ 506 | $ 768 |
Accretable yield for SpringCastle Portfolio contributed to SFC | 366 | ||
Accretion | (23) | (85) | (112) |
Reclassifications from nonaccretable difference | 12 | 20 | 142 |
Transfers due to finance receivables sold | (370) | (658) | |
Balance at end of period | 60 | 441 | 506 |
SpringCastle Portfolio | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 375 | 452 | 0 |
Accretable yield for SpringCastle Portfolio contributed to SFC | 366 | ||
Accretion | (16) | (77) | (37) |
Reclassifications from nonaccretable difference | 0 | 0 | 123 |
Transfers due to finance receivables sold | (359) | 0 | |
Balance at end of period | 0 | 375 | 452 |
FA Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 66 | 54 | 768 |
Accretable yield for SpringCastle Portfolio contributed to SFC | 0 | ||
Accretion | (7) | (8) | (75) |
Reclassifications from nonaccretable difference | 12 | 20 | 19 |
Transfers due to finance receivables sold | (11) | (658) | |
Balance at end of period | 60 | 66 | 54 |
Accretion of purchased credit impairment FA loans held for sale | $ 5 | $ 6 | $ 13 |
Finance Receivables - TDR Held
Finance Receivables - TDR Held For Investment And Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 180 | $ 246 |
TDR net finance receivables | 181 | 245 |
Allowance for TDR finance receivable losses | 31 | 47 |
TDR gross finance receivables, held for sale | 89 | 94 |
TDR net finance receivables, held for sale | 90 | 94 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 47 | 32 |
TDR net finance receivables | 47 | 31 |
Allowance for TDR finance receivable losses | 20 | 9 |
TDR gross finance receivables, held for sale | 0 | 2 |
TDR net finance receivables, held for sale | 0 | 2 |
SpringCastle Portfolio | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 0 | 14 |
TDR net finance receivables | 0 | 13 |
Allowance for TDR finance receivable losses | 0 | 4 |
Real Estate Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 133 | 200 |
TDR net finance receivables | 134 | 201 |
Allowance for TDR finance receivable losses | 11 | 34 |
TDR gross finance receivables, held for sale | 89 | 92 |
TDR net finance receivables, held for sale | $ 90 | $ 92 |
Finance Receivables - TDR Recog
Finance Receivables - TDR Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | $ 211 | $ 239 | $ 973 |
TDR finance charges recognized | 14 | 15 | 50 |
TDR average net receivables, held for sale | 103 | 93 | 248 |
TDR finance charges recognized, held for sale | 6 | 5 | 4 |
Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 36 | 29 | 17 |
TDR finance charges recognized | 3 | 3 | 2 |
TDR average net receivables, held for sale | 1 | 2 | 0 |
TDR finance charges recognized, held for sale | 0 | $ 0 | 0 |
TDR average net receivables, period disclosed | 3 months | ||
SpringCastle Portfolio | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 0 | $ 12 | 5 |
TDR finance charges recognized | 0 | 1 | $ 1 |
TDR average net receivables, period disclosed | 5 months | ||
Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 175 | 198 | $ 951 |
TDR finance charges recognized | 11 | 11 | 47 |
TDR average net receivables, held for sale | 102 | 91 | 248 |
TDR finance charges recognized, held for sale | $ 6 | $ 5 | $ 4 |
TDR average net receivables, period disclosed | 5 months |
Finance Receivables - TDR New V
Finance Receivables - TDR New Volume (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | Dec. 31, 2014USD ($)account | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | $ 66 | $ 61 | $ 235 |
Post-modification TDR net finance receivables: | $ 61 | $ 55 | $ 223 |
Number of TDR accounts | account | 10,038 | 7,621 | 7,048 |
Pre-modification TDR net finance receivables, held for sale | $ 5 | $ 7 | $ 6 |
Post-modification TDR net finance receivables, held ofr sale | $ 5 | $ 8 | $ 7 |
Number of TDR accounts, held for sale | account | 296 | 275 | 94 |
Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 48 | $ 38 | $ 171 |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | 13 | 17 | 52 |
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | 49 | 33 | 18 |
Post-modification TDR net finance receivables: | $ 43 | $ 27 | $ 16 |
Number of TDR accounts | account | 9,517 | 6,515 | 4,206 |
Pre-modification TDR net finance receivables, held for sale | $ 0 | $ 1 | $ 0 |
Post-modification TDR net finance receivables, held ofr sale | $ 0 | $ 1 | $ 0 |
Number of TDR accounts, held for sale | account | 174 | 162 | 0 |
Personal Loans | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 31 | $ 15 | $ 10 |
Personal Loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | 12 | 12 | 6 |
SpringCastle Portfolio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | 1 | 7 | 4 |
Post-modification TDR net finance receivables: | $ 1 | $ 6 | $ 4 |
Number of TDR accounts | account | 157 | 721 | 468 |
SpringCastle Portfolio | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 1 | $ 6 | $ 4 |
SpringCastle Portfolio | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | 0 | 0 | 0 |
Real Estate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | 16 | 21 | 213 |
Post-modification TDR net finance receivables: | $ 17 | $ 22 | $ 203 |
Number of TDR accounts | account | 364 | 385 | 2,374 |
Pre-modification TDR net finance receivables, held for sale | $ 5 | $ 6 | $ 6 |
Post-modification TDR net finance receivables, held ofr sale | $ 5 | $ 7 | $ 7 |
Number of TDR accounts, held for sale | account | 122 | 113 | 94 |
Real Estate Loans | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 16 | $ 17 | $ 157 |
Real Estate Loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 1 | $ 5 | $ 46 |
Finance Receivables - Held For
Finance Receivables - Held For Investment And Held For Sale Modified As TDR (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | Dec. 31, 2014USD ($)account | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 9,000,000 | $ 10,000,000 | $ 35,000,000 |
Number of TDR accounts | account | 1,489 | 1,414 | 718 |
Real Estate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 3,000,000 | $ 3,000,000 | $ 33,000,000 |
Number of TDR accounts | account | 61 | 46 | 524 |
TDR net finance receivables, held for sale | $ 2,000,000 | $ 1,000,000 | $ 3,000,000 |
Number of TDR accounts, held for sale | account | 30 | 17 | 49 |
SpringCastle Portfolio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 0 | $ 2,000,000 | $ 1,000,000 |
Number of TDR accounts | account | 19 | 147 | 53 |
TDR net finance receivables, threshold for disclosure | $ 1,000,000 | ||
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 6,000,000 | $ 5,000,000 | $ 1,000,000 |
Number of TDR accounts | account | 1,409 | 1,221 | 141 |
Allowance for Finance Receiva71
Allowance for Finance Receivable Losses - Changes in Allowance for Finance Receivable Losses by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | $ 224 | $ 180 | $ 224 | $ 180 | $ 426 | ||||||
Provision for finance receivable losses | $ 66 | $ 87 | $ 85 | 91 | $ 109 | $ 78 | $ 73 | 79 | 329 | 339 | 352 |
Charge-offs | (369) | (349) | (297) | ||||||||
Recoveries | 54 | 55 | 37 | ||||||||
Other | (34) | (1) | (339) | ||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 1 | ||||||||||
Balance at end of period | 204 | 224 | 204 | 224 | 180 | ||||||
Personal Loans | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 173 | 130 | 173 | 130 | 94 | ||||||
Provision for finance receivable losses | 306 | 257 | 203 | ||||||||
Charge-offs | (340) | (250) | (192) | ||||||||
Recoveries | 45 | 37 | 25 | ||||||||
Other | 0 | (1) | 0 | ||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 0 | ||||||||||
Balance at end of period | 184 | 173 | 184 | 173 | 130 | ||||||
Charge-offs on previously charged-off loans | (4) | ||||||||||
SpringCastle Portfolio | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 4 | 3 | 4 | 3 | 0 | ||||||
Provision for finance receivable losses | 14 | 67 | 36 | ||||||||
Charge-offs | (17) | (78) | (39) | ||||||||
Recoveries | 3 | 12 | 5 | ||||||||
Other | (4) | 0 | 0 | ||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 1 | ||||||||||
Balance at end of period | 0 | 4 | 0 | 4 | 3 | ||||||
Real Estate Loans | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 46 | 46 | 46 | 46 | 330 | ||||||
Provision for finance receivable losses | 9 | 13 | 110 | ||||||||
Charge-offs | (11) | (18) | (61) | ||||||||
Recoveries | 5 | 5 | 6 | ||||||||
Other | (30) | 0 | (339) | ||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 0 | ||||||||||
Balance at end of period | 19 | 46 | 19 | 46 | 46 | ||||||
Recoveries on previously charged-off loans | 2 | ||||||||||
Retail Sales Finance | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | $ 1 | $ 1 | 1 | 1 | 2 | ||||||
Provision for finance receivable losses | 0 | 2 | 3 | ||||||||
Charge-offs | (1) | (3) | (5) | ||||||||
Recoveries | 1 | 1 | 1 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Allowance for SpringCastle Portfolio contributed to SFC | 0 | ||||||||||
Balance at end of period | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Allowance for Finance Receiva72
Allowance for Finance Receivable Losses - By Type And By Impairment Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | $ 165 | $ 165 | ||
Purchased credit impaired finance receivables | 8 | 12 | ||
TDR finance receivables | 31 | 47 | ||
Allowance for finance receivable losses | 204 | 224 | $ 180 | $ 426 |
Finance receivables: | ||||
Collectively evaluated for impairment | 4,844 | 6,021 | ||
TDR finance receivables | 91 | 151 | ||
Net finance receivables | $ 4,959 | $ 6,564 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.12% | 3.42% | ||
Purchased Credit Impaired Finance Receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 24 | $ 392 | ||
Personal Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 164 | 164 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 20 | 9 | ||
Allowance for finance receivable losses | 184 | 173 | 130 | 94 |
Finance receivables: | ||||
Collectively evaluated for impairment | 4,757 | 4,271 | ||
TDR finance receivables | 47 | 29 | ||
Net finance receivables | $ 4,804 | $ 4,300 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 3.84% | 4.01% | ||
Personal Loans | Purchased Credit Impaired Finance Receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 | ||
SpringCastle Portfolio | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 0 | 4 | ||
Allowance for finance receivable losses | 0 | 4 | 3 | 0 |
Finance receivables: | ||||
Collectively evaluated for impairment | 0 | 1,340 | ||
TDR finance receivables | 13 | |||
Net finance receivables | $ 0 | $ 1,703 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 0.00% | 0.25% | ||
SpringCastle Portfolio | Purchased Credit Impaired Finance Receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 350 | ||
Real Estate Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 0 | 0 | ||
Purchased credit impaired finance receivables | 8 | 12 | ||
TDR finance receivables | 11 | 34 | ||
Allowance for finance receivable losses | 19 | 46 | 46 | 330 |
Finance receivables: | ||||
Collectively evaluated for impairment | 76 | 387 | ||
TDR finance receivables | 44 | 109 | ||
Net finance receivables | $ 144 | $ 538 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 13.31% | 8.72% | ||
Real Estate Loans | Purchased Credit Impaired Finance Receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 24 | $ 42 | ||
Retail Sales Finance | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 1 | 1 | ||
Purchased credit impaired finance receivables | 0 | 0 | ||
TDR finance receivables | 0 | 0 | ||
Allowance for finance receivable losses | 1 | 1 | $ 1 | $ 2 |
Finance receivables: | ||||
Collectively evaluated for impairment | 11 | 23 | ||
TDR finance receivables | 0 | 0 | ||
Net finance receivables | $ 11 | $ 23 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.42% | 3.46% | ||
Retail Sales Finance | Purchased Credit Impaired Finance Receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables Held for 73
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Jun. 30, 2016 | May 02, 2016 | Dec. 31, 2016 | Aug. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivables held for sale | $ 153 | $ 153 | $ 793 | |||||||
Finance receivables transferred from held for investment to held for sale | $ 6,600 | |||||||||
Finance receivable held for sale, carrying value | $ 602 | |||||||||
Net gain (loss) on sales of real estate loans and related trust assets | $ 22 | 18 | 0 | 626 | ||||||
Net gain on sale of SpringCastle interests | $ 167 | 167 | 0 | 0 | ||||||
Cost of mortgages sold | $ 6,400 | |||||||||
Holdback provision receivable on loans sold | 3 | 3 | 5 | |||||||
Real Estate Sale | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Disposal Group, Including Discontinued Operation, Carry Value | 58 | $ 250 | $ 58 | |||||||
Gain (loss) on sale | $ (1) | $ (4) | ||||||||
Personal Loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivables held for sale | 617 | |||||||||
Finance receivables transferred from held for investment to held for sale | 608 | |||||||||
Real Estate Loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivables held for sale | $ 176 | |||||||||
Finance receivables transferred from held for investment to held for sale | $ 50 | $ 257 | ||||||||
SpringCastle Portfolio | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Finance receivables transferred from held for investment to held for sale | $ 1,600 | |||||||||
Net gain on sale of SpringCastle interests | $ 167 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | $ 582 | $ 604 |
Unrealized Gains | 2 | 3 |
Unrealized Losses | (6) | (16) |
Fair Value | 578 | 591 |
Cost method investments | 1 | 1 |
Bonds: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 575 | 597 |
Unrealized Gains | 2 | 3 |
Unrealized Losses | (6) | (15) |
Fair Value | 571 | 585 |
U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 13 | 83 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 13 | 82 |
Obligations of states, municipalities, and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 83 | 88 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | (1) | 0 |
Fair Value | 82 | 89 |
Non-U.S. government and government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 5 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 5 | |
Corporate debt | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 356 | 278 |
Unrealized Gains | 2 | 2 |
Unrealized Losses | (5) | (13) |
Fair Value | 353 | 267 |
RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 39 | 74 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 39 | 74 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 33 | 44 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 33 | 44 |
CDO/ABS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 46 | 30 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 46 | 29 |
Preferred stocks | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 6 | 6 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (1) |
Fair Value | 6 | 5 |
Other long-term investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 1 | 1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 1 |
Investment Securities - Fair Va
Investment Securities - Fair Vaue and Unrealized Losses on AFS Securities (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value | ||
Less Than 12 Months | $ 320 | $ 435 |
12 Months or Longer | 13 | 20 |
Total | 333 | 455 |
Unrealized Losses | ||
Less Than 12 Months | (6) | (15) |
12 Months or Longer | 0 | (1) |
Total | (6) | (16) |
Other-than-temporary impairment credit loss | ||
Minimum disclosure of Unrealized losses on certain available-for-sale securities | 1 | 1 |
Bonds: | ||
Fair Value | ||
Less Than 12 Months | 320 | 434 |
12 Months or Longer | 7 | 14 |
Total | 327 | 448 |
Unrealized Losses | ||
Less Than 12 Months | (6) | (15) |
12 Months or Longer | 0 | 0 |
Total | (6) | (15) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 9 | 76 |
12 Months or Longer | 0 | 0 |
Total | 9 | 76 |
Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | 0 | 0 |
Total | 0 | (1) |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 57 | 36 |
12 Months or Longer | 2 | 2 |
Total | 59 | 38 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | 0 |
Total | (1) | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 3 | |
12 Months or Longer | 0 | |
Total | 3 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 171 | 189 |
12 Months or Longer | 5 | 7 |
Total | 176 | 196 |
Unrealized Losses | ||
Less Than 12 Months | (5) | (13) |
12 Months or Longer | 0 | 0 |
Total | (5) | (13) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 33 | 68 |
12 Months or Longer | 0 | 0 |
Total | 33 | 68 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 22 | 36 |
12 Months or Longer | 0 | 5 |
Total | 22 | 41 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 25 | 29 |
12 Months or Longer | 0 | 0 |
Total | 25 | 29 |
Unrealized Losses | ||
Less Than 12 Months | (1) | |
12 Months or Longer | 0 | 0 |
Total | 0 | (1) |
Preferred stocks | ||
Fair Value | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 6 | 6 |
Total | 6 | 6 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | (1) |
Total | $ 0 | (1) |
Other long-term investments | ||
Fair Value | ||
Less Than 12 Months | 1 | |
Total | 1 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
Total | $ 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)investment | Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Investment securities in an unrealized loss position | investment | 217 | 198 | |
Net impairment losses recognized in net income (loss) | $ 0 | $ 0 | $ 0 |
Additions or reductions in cumulative amount of credit losses on other than temporarily impaired AFS securities | 0 | $ 0 | |
Available-for-sale securities | 578,000,000 | 591,000,000 | |
Deposits With Third Parties | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale securities | $ 11,000,000 | $ 11,000,000 |
Investment Securities - Changes
Investment Securities - Changes in Cumulative Amount of Credit Losses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |
Balance at beginning of period | $ 1 |
Realized due to dispositions with no prior intention to sell | 1 |
Balance at end of period | $ 0 |
Investment Securities - Proceed
Investment Securities - Proceeds of AFS Securities Sold or Redeemed (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-sale securities sold or redeemed | |||
Proceeds from sales and redemptions | $ 308 | $ 416 | $ 260 |
Realized gains | 9 | 15 | 9 |
Realized losses | (1) | (1) | (1) |
Net realized gains (losses) | $ 8 | $ 14 | $ 8 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Fixed Maturity AFS Securities (Details 4) $ in Millions | Dec. 31, 2016USD ($) |
Fair Value | |
Due in 1 year or less | $ 37 |
Due after 1 year through 5 years | 231 |
Due after 5 years through 10 years | 39 |
Due after 10 years | 146 |
Mortgage-backed, asset-backed, and collateralized securities | 118 |
Fair Value | 571 |
Amortized Cost | |
Due in 1 year or less | 38 |
Due after 1 year through 5 years | 232 |
Due after 5 years through 10 years | 39 |
Due after 10 years | 148 |
Mortgage-backed, asset-backed, and collateralized securities | 118 |
Amortized Cost | $ 575 |
Investment Securities - Trading
Investment Securities - Trading Securities and Other Securities (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading securities | |||
Trading securities | $ 3 | $ 12 | |
Trading securities, other | 3 | 2 | |
Realized gains (losses) on trading securities | |||
Net unrealized gains (losses) on trading securities held at year end | 0 | 4 | $ (9) |
Net realized gains (losses) on trading securities sold or redeemed during the year | 1 | (3) | 5 |
Total | 1 | 1 | $ (4) |
Corporate debt | |||
Trading securities | |||
Trading securities, bonds | 2 | 10 | |
CMBS | |||
Trading securities | |||
Trading securities, bonds | $ 1 | $ 2 |
Other Assets Components of Othe
Other Assets Components of Other Assets Table (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Fixed assets, net | $ 70 | $ 83 |
Receivables from parent and affiliates | 40 | 9 |
Prepaid expenses and deferred charges | 38 | 35 |
Other investments | 30 | 67 |
Ceded insurance reserves | 22 | 22 |
Other intangible assets | 15 | 16 |
Cost basis investments | 11 | 10 |
Escrow advance receivable | 10 | 11 |
Real estate owned | 4 | 8 |
Receivables related to sales of real estate loans and related trust assets | 3 | 5 |
Deferred tax assets | 2 | 0 |
Current tax receivable | 0 | 8 |
Other | 6 | 7 |
Other Assets | $ 251 | $ 281 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Accumulated depreciation on fixed assets | $ 180 | $ 173 |
Other Assets - Other Intangible
Other Assets - Other Intangible Assets (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible asset | |||
Gross Carrying Amount | $ 75 | $ 75 | |
Accumulated Amortization | (60) | (59) | |
Net Other Intangible Assets | 15 | 16 | |
Amortization expense | 1 | 4 | $ 4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-lived intangible assets, amortization expense, 2017 (less than) | 1 | ||
Finite-lived intangible assets, amortization expense, 2018 (less than) | 1 | ||
Finite-lived intangible assets, amortization expense, 2019 (less than) | 1 | ||
Finite-lived intangible assets, amortization expense, 2020 (less than) | 1 | ||
Finite-lived intangible assets, amortization expense, 2021 (less than) | 1 | ||
Value of business acquired (“VOBA”) | |||
Intangible asset | |||
Gross Carrying Amount | 36 | 36 | |
Accumulated Amortization | (33) | (32) | |
Net Other Intangible Assets | 3 | 4 | |
Customer relationships | |||
Intangible asset | |||
Gross Carrying Amount | 18 | 18 | |
Accumulated Amortization | (18) | (18) | |
Net Other Intangible Assets | 0 | 0 | |
Licenses | |||
Intangible asset | |||
Gross Carrying Amount | 12 | 12 | |
Accumulated Amortization | 0 | 0 | |
Net Other Intangible Assets | 12 | 12 | |
Customer lists | |||
Intangible asset | |||
Gross Carrying Amount | 9 | 9 | |
Accumulated Amortization | (9) | (9) | |
Net Other Intangible Assets | $ 0 | $ 0 |
Transactions with Affiliates 84
Transactions with Affiliates of Fortress (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2016 | |
Affiliated companies | Logan Circle Partners L P | ||||
Related Party Transaction [Line Items] | ||||
Costs and fees incurred for the investment management services | $ 1 | $ 1 | $ 1 | |
MorEquity and Other Indirect Subsidiaries | Nationstar | ||||
Related Party Transaction [Line Items] | ||||
Subservicing fees | $ 2 | $ 2 | $ 5 | |
Corporate Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 47.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||||||||
Dec. 31, 2016USD ($)building | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 12, 2016USD ($) | Jul. 20, 2016USD ($) | Jul. 19, 2016USD ($) | Dec. 01, 2015USD ($) | Nov. 15, 2015USD ($) | Nov. 12, 2015USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Notes receivable from parent and affiliates | $ 3,723,000,000 | $ 3,804,000,000 | |||||||
Receivables from parent and affiliates | 40,000,000 | 9,000,000 | |||||||
Intercompany payable | $ 13,000,000 | 24,000,000 | |||||||
Independence Demand Note | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes receivable from parent and affiliates | 3,400,000,000 | ||||||||
Interest rates (as a percent) | 6.29% | ||||||||
Revolving demand note, maximum commitment | $ 3,550,000,000 | ||||||||
Securities borrowed | $ 3,400,000,000 | ||||||||
Affiliated companies | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payable due to affiliates | $ 13,000,000 | 24,000,000 | |||||||
Springleaf Financial Holdings, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Receivables from parent and affiliates | 46,000,000 | 21,000,000 | |||||||
Payable to affiliate | 6,000,000 | 12,000,000 | |||||||
Services Agreement | Affiliated companies | Spring Castle Holdings LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payable to affiliate | 4,000,000 | ||||||||
Intercompany Agreements | Affiliated companies | Springleaf Consumer Loan, Inc. (SCLI) | |||||||||
Related Party Transaction [Line Items] | |||||||||
Aggregate purchase price | 89,000,000 | ||||||||
Unpaid principal balance of loans sold | 89,000,000 | ||||||||
Service fee expenses | 3,000,000 | ||||||||
Intercompany Agreements | Affiliated companies | OneMain Assurance Services, LLC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Aggregate purchase price | 5,000,000 | ||||||||
Unpaid principal balance of loans sold | 5,000,000 | ||||||||
Financing receivable | 5,000,000 | ||||||||
Assignment of Intercompany Demand Note | Independence Demand Note | |||||||||
Related Party Transaction [Line Items] | |||||||||
Right to receive note | $ 150,000,000 | ||||||||
Aggregate purchase price | $ 150,000,000 | ||||||||
OneMain Demand Note | OneMain Financial Holdings, Inc. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes receivable from parent and affiliates | 530,000,000 | 0 | |||||||
Revolving demand note, maximum commitment | $ 750,000,000 | $ 500,000,000 | |||||||
Interest revenue, related party | $ 10,000,000 | ||||||||
Number of days notice required to demand note payment | 5 days | ||||||||
OMFH revolving demand note, OneMain Acquisition closing | OneMain Financial Holdings, Inc. | OneMain Financial Holdings, Inc. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revolving demand note, maximum commitment | $ 500,000,000 | ||||||||
Number of days notice required to demand note payment | 5 days | ||||||||
Payable due to affiliates | $ 0 | 0 | |||||||
Interest due to OMFH related to Note payable | 7,000,000 | ||||||||
Cash Services Note | Independence Demand Note | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revolving demand note, maximum commitment | 3,400,000,000 | ||||||||
OMFH Note | Independence Demand Note | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revolving demand note, maximum commitment | $ 150,000,000 | ||||||||
Independence Demand Note | Independence Demand Note | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes receivable from parent and affiliates | 2,900,000,000 | ||||||||
Interest revenue, related party | 185,000,000 | 27,000,000 | |||||||
SFI | Affiliated companies | |||||||||
Related Party Transaction [Line Items] | |||||||||
Notes receivable from parent and affiliates | 285,000,000 | 389,000,000 | |||||||
Interest revenue on note receivable | 19,000,000 | 15,000,000 | $ 5,000,000 | ||||||
Capital contributions received to satisfy interest payments | $ 10,000,000 | 22,000,000 | |||||||
Spring leaf General Services Corporation | Services Agreement | Affiliated companies | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of allocated cost of service | 100.00% | ||||||||
Spring leaf General Services Corporation | Services Agreement | Affiliated companies | Springleaf Finance Management Corporation | |||||||||
Related Party Transaction [Line Items] | |||||||||
Intercompany payable | $ 12,000,000 | 19,000,000 | |||||||
Service fee expenses | $ 239,000,000 | 224,000,000 | 213,000,000 | ||||||
Spring leaf General Services Corporation | License Agreement | Affiliated companies | Springleaf Finance Management Corporation | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of allocated cost of service | 100.00% | ||||||||
Margin on the systems and software (as a percent) | 7.00% | ||||||||
Percentage of actual cost incurred | 100.00% | ||||||||
License fees | $ 6,000,000 | 6,000,000 | 5,000,000 | ||||||
Spring leaf General Services Corporation | Building Lease Agreement | Affiliated companies | Springleaf Finance Management Corporation | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of buildings leased | building | 6 | ||||||||
Annual rental fees | $ 4,000,000 | ||||||||
Rent charged | 4,000,000 | 4,000,000 | $ 4,000,000 | ||||||
Springleaf Finance Management Corporation | Affiliated companies | |||||||||
Related Party Transaction [Line Items] | |||||||||
Payable due to affiliates | $ 1,000,000 | $ 1,000,000 |
Long-term Debt - Carrying Value
Long-term Debt - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 6,837 | $ 9,582 |
Fair Value | 7,308 | 9,998 |
Senior debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,665 | 9,410 |
Fair Value | 7,150 | 9,753 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 172 | 172 |
Fair Value | $ 158 | $ 245 |
Long-term Debt - Weighted Avera
Long-term Debt - Weighted Average Interest Rates (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 7.30% | 7.05% | 7.19% |
Current Weighted Average Interest Rate | 7.59% | 6.76% | |
Senior debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 7.18% | 6.96% | 7.10% |
Current Weighted Average Interest Rate | 7.46% | 6.66% | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 12.26% | 12.26% | 12.26% |
Current Weighted Average Interest Rate | 12.26% | 12.26% |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities By Type (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
First quarter 2017 | $ 0 | |
Second quarter 2017 | 0 | |
Third quarter 2017 | 257 | |
Fourth quarter 2017 | 1,030 | |
2,017 | 1,287 | |
2,018 | 0 | |
2,019 | 700 | |
2,020 | 1,300 | |
2,021 | 650 | |
2022-2067 | 650 | |
Securitizations | 2,687 | |
Total principal maturities | 7,274 | |
Long-term debt | 6,837 | $ 9,582 |
Debt issuance costs | 27 | |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 172 | $ 172 |
Senior debt | Securitizations | ||
Debt Instrument [Line Items] | ||
First quarter 2017 | 0 | |
Second quarter 2017 | 0 | |
Third quarter 2017 | 0 | |
Fourth quarter 2017 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2022-2067 | 0 | |
Securitizations | 2,687 | |
Total principal maturities | 2,687 | |
Long-term debt | 2,675 | |
Debt issuance costs | 12 | |
Senior debt | Medium Term Notes | ||
Debt Instrument [Line Items] | ||
First quarter 2017 | 0 | |
Second quarter 2017 | 0 | |
Third quarter 2017 | 257 | |
Fourth quarter 2017 | 1,030 | |
2,017 | 1,287 | |
2,018 | 0 | |
2,019 | 700 | |
2,020 | 1,300 | |
2,021 | 650 | |
2022-2067 | 300 | |
Securitizations | 0 | |
Total principal maturities | 4,237 | |
Long-term debt | 3,990 | |
Debt issuance costs | 15 | |
Senior debt | Revolving Credit Facility | Other assets | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, excluded from direct deduction from long term debt | $ 9 | |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 6.00% | |
First quarter 2017 | $ 0 | |
Second quarter 2017 | 0 | |
Third quarter 2017 | 0 | |
Fourth quarter 2017 | 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2022-2067 | 350 | |
Securitizations | 0 | |
Total principal maturities | 350 | |
Long-term debt | 172 | |
Debt issuance costs | $ 0 | |
Minimum | Senior debt | Securitizations | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 2.04% | |
Minimum | Senior debt | Medium Term Notes | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 5.25% | |
Maximum | Senior debt | Securitizations | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 6.50% | |
Maximum | Senior debt | Medium Term Notes | ||
Debt Instrument [Line Items] | ||
Interest rates (as a percent) | 8.25% |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Dec. 30, 2013USD ($) | Jan. 31, 2007USD ($) | Sep. 30, 2016 | Dec. 31, 2016USD ($)agreement | Apr. 11, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 03, 2014USD ($) |
Principal maturities of long-term debt by type of debt | |||||||
Long-term debt | $ 6,837,000,000 | $ 9,582,000,000 | |||||
Number of debt agreements with specific financial targets or ratios | agreement | 0 | ||||||
Senior Note 8.25%, due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||
Interest rates (as a percent) | 8.25% | ||||||
Long-term debt | $ 1,000,000,000 | ||||||
Senior Notes Issued in May 2013 | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Debt instrument, face amount | $ 700,000,000 | ||||||
Interest rates (as a percent) | 5.25% | ||||||
Long-term debt | 700,000,000 | ||||||
Senior debt | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Long-term debt | 6,665,000,000 | 9,410,000,000 | |||||
Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Debt instrument, face amount | $ 5,200,000,000 | ||||||
Long-term debt | 2,900,000,000 | ||||||
Junior Subordinated Debt | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Debt instrument, face amount | $ 350,000,000 | ||||||
Long-term debt | $ 172,000,000 | $ 172,000,000 | |||||
Term of debt | 60 years | ||||||
Trailing period used to calculate fixed charge ratio | 12 months | ||||||
Junior Subordinated Debt | Minimum | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Tangible equity to tangible managed assets (as a percent) | 5.50% | ||||||
Average fixed charge ratio | 1.1 | ||||||
Junior Subordinated Debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Debt instrument, face amount | $ 350,000,000 | ||||||
Term of debt | 60 years | ||||||
8.250% Senior Notes due 2023 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Interest rates (as a percent) | 8.25% | ||||||
7.750% Senior Notes due 2021 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Interest rates (as a percent) | 7.75% | ||||||
6.00% Senior Notes due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||||
Principal maturities of long-term debt by type of debt | |||||||
Interest rates (as a percent) | 6.00% |
Variable Interest Entities Sche
Variable Interest Entities Schedule of Variable Interest Entities (Details) - Consolidated VIEs - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 2 | $ 7 |
Finance receivables: | Personal Loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,943 | 3,621 |
Finance receivables: | SpringCastle Portfolio | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 1,703 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 94 | 128 |
Finance receivables held for sale | ||
Variable Interest Entity [Line Items] | ||
Assets | 0 | 435 |
Restricted cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 211 | 282 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 9 | 48 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 2,675 | 5,513 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 7 | $ 9 |
Variable Interest Entities Secu
Variable Interest Entities Securitized Borrowings (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2016 | Dec. 14, 2016 | Jul. 19, 2016 | Feb. 16, 2016 | Dec. 31, 2015 | Apr. 07, 2015 | Feb. 26, 2015 | Mar. 26, 2014 | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 6,837,000,000 | $ 9,582,000,000 | ||||||
Current Weighted Average Interest Rate | 7.59% | 6.76% | ||||||
Consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 2,675,000,000 | $ 5,513,000,000 | ||||||
Consumer Securitizations: | Consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 2,194,000,000 | |||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2014 A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 217,000,000 | |||||||
Current Weighted Average Interest Rate | 2.78% | |||||||
Original Revolving Period | 2 years | |||||||
Debt instrument, face amount | $ 592,000,000 | |||||||
Principal balance retained | $ 33,000,000 | |||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2015-A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,163,000,000 | |||||||
Current Weighted Average Interest Rate | 3.47% | |||||||
Original Revolving Period | 3 years | |||||||
Debt instrument, face amount | $ 1,200,000,000 | |||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2015 B | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 314,000,000 | |||||||
Current Weighted Average Interest Rate | 3.78% | |||||||
Original Revolving Period | 5 years | |||||||
Debt instrument, face amount | $ 314,000,000 | |||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2016-A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 500,000,000 | |||||||
Current Weighted Average Interest Rate | 3.10% | |||||||
Original Revolving Period | 2 years | |||||||
Debt instrument, face amount | $ 532,000,000 | |||||||
Principal balance retained | $ 32,000,000 | |||||||
Consumer Securitizations: | Consolidated VIEs | Springleaf FundingTrust 2013 B | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 400,000,000 | |||||||
Debt instrument, redemption price | $ 371,000,000 | |||||||
Auto Securitization: | Consolidated VIEs | ODART 2016-1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 493,000,000 | |||||||
Current Weighted Average Interest Rate | 2.37% | |||||||
Debt instrument, face amount | $ 754,000,000 | |||||||
Principal balance retained | $ 54,000,000 | |||||||
Total Secured Structured Financings | Consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 2,687,000,000 | |||||||
Minimum | Consumer Securitizations: | Consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Original Revolving Period | 2 years | |||||||
Maximum | Consumer Securitizations: | Consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Original Revolving Period | 5 years |
Variable Interest Entities Revo
Variable Interest Entities Revolving Conduit Facilities (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2018 | Feb. 28, 2018 | Jan. 30, 2018 | Feb. 24, 2017 | Dec. 31, 2016 | Dec. 22, 2016 | Dec. 20, 2016 | Feb. 24, 2016 | Feb. 23, 2016 | Jan. 21, 2016 | Jan. 20, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 6,837,000,000 | $ 9,582,000,000 | |||||||||||
Consolidated VIEs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 2,675,000,000 | $ 5,513,000,000 | |||||||||||
Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 2,550,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
First Avenue funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 250,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 100,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | Amended Note Purchase Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | $ 300,000,000 | ||||||||||||
Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | Voluntary Reduction | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | $ 100,000,000 | $ 300,000,000 | |||||||||||
Second Avenue funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 250,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
Springleaf Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 850,000,000 | $ 850,000,000 | $ 350,000,000 | ||||||||||
Long-term debt | 0 | ||||||||||||
Sumner Brook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 350,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
Whitford Brook Funding Trust2014 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 250,000,000 | ||||||||||||
Long-term debt | 0 | ||||||||||||
Seine River Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | 500,000,000 | $ 500,000,000 | |||||||||||
Long-term debt | $ 0 | ||||||||||||
Mill River 2015 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | $ 100,000,000 | $ 400,000,000 | |||||||||||
Scenario, Forecast | First Avenue funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount, reduce to cash payments, due and payable, term | 12 months | ||||||||||||
Scenario, Forecast | Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount, reduce to cash payments, due and payable, term | 36 months | ||||||||||||
Scenario, Forecast | Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | Amended Note Purchase Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | $ 250,000,000 | ||||||||||||
Scenario, Forecast | Midbrook Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | Voluntary Reduction | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Note Maximum Balance | $ 50,000,000 | ||||||||||||
Scenario, Forecast | Springleaf Funding Trust 2013 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount, reduce to cash payments, due and payable, term | 36 months | ||||||||||||
Scenario, Forecast | Whitford Brook Funding Trust2014 VFN1 | Consolidated VIEs | Revolving Conduit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount, reduce to cash payments, due and payable, term | 12 months |
Variable Interest Entities Narr
Variable Interest Entities Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||
Interest expense | $ 127 | $ 135 | $ 138 | $ 156 | $ 167 | $ 171 | $ 171 | $ 158 | $ 556 | $ 667 | $ 683 |
Consolidated VIEs | |||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||
Interest expense | $ 122 | $ 184 | $ 163 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Insurance claims and policyholder liabilities | ||||
Claim reserves | $ 70 | $ 73 | $ 70 | $ 68 |
Unearned insurance premium and claim reserves | 212 | 250 | ||
Insurance claims and policyholder liabilities | 248 | 230 | ||
unearned premium and claim reserves and liability of benefit reserves | 460 | 480 | ||
Insurance claims and policyholder liabilities assumed from other insurers | 52 | 58 | ||
Ceded insurance reserves | 22 | 22 | ||
Non-finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Benefit reserves | 65 | 72 | ||
Claim reserves | 41 | 41 | ||
Insurance claims and policyholder liabilities | 106 | 113 | ||
Non-affiliated insurance companies | ||||
Insurance claims and policyholder liabilities | ||||
Ceded insurance reserves | 22 | 22 | ||
Payable to SFC | Finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 189 | 222 | ||
Claim reserves | 23 | 28 | ||
Unearned insurance premium and claim reserves | 212 | 250 | ||
Payable to OMH | Finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 6 | 0 | ||
Third-Party Beneficiaries | Finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 25 | 0 | ||
Benefit reserves | 105 | 113 | ||
Claim reserves | 6 | 4 | ||
Insurance claims and policyholder liabilities | $ 136 | $ 117 |
Insurance - Change in Reserve f
Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | |||
Liability for Claims and Claims Adjustment Expense | $ 73 | $ 70 | $ 68 |
Plus reinsurance recoverables | (22) | (22) | (22) |
Balance at beginning of period | 51 | 48 | 46 |
Additions for losses and loss adjustment expense incurred to: | |||
Current year | 65 | 64 | 65 |
Prior years | 0 | 0 | (3) |
Total | 65 | 64 | 62 |
Reductions for losses and loss adjustment expenses paid related to: | |||
Current year | (44) | (40) | (39) |
Prior years | (24) | (21) | (21) |
Total | (68) | (61) | (60) |
Balance at end of period | 48 | 51 | 48 |
Plus reinsurance recoverables | 22 | 22 | 22 |
Balance at end of period | $ 70 | $ 73 | $ 70 |
Insurance - Incurred and Cumula
Insurance - Incurred and Cumulative Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Millions | Dec. 31, 2016USD ($)claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 45 | $ 48 | $ 45 | ||
Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 222 | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | 196 | ||||
All outstanding liabilities before 2012, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 26 | 29 | 24 | ||
2012 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 33 | 32 | 32 | $ 33 | $ 39 |
Incurred-but- not-reported Liabilities (b) | $ 0 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 19,981 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | $ 32 | 32 | 32 | 30 | $ 20 |
2013 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 38 | 38 | 38 | 42 | |
Incurred-but- not-reported Liabilities (b) | $ 0 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 22,067 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | $ 38 | 37 | 34 | $ 23 | |
2014 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 46 | 46 | 50 | ||
Incurred-but- not-reported Liabilities (b) | $ 1 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 24,931 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | $ 45 | 41 | $ 28 | ||
2015 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 50 | 54 | |||
Incurred-but- not-reported Liabilities (b) | $ 5 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 26,180 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | $ 45 | $ 31 | |||
2016 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 55 | ||||
Incurred-but- not-reported Liabilities (b) | $ 20 | ||||
Cumulative Number of Reported Claims (in claims) | claim | 24,235 | ||||
Cumulative Frequency | 2.60% | ||||
Cumulative paid claims and allocated claim adjustment expenses, ent of reinsurance | $ 36 |
Insurance - Reconciliations of
Insurance - Reconciliations of Net Incurred And Paid Claims Development to the Liability for Claims and Claim Adjustment Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: | $ 45 | $ 48 | $ 45 | |
Reinsurance recoverable on unpaid claims: | 22 | 22 | 22 | $ 22 |
Insurance lines other than short-duration | 3 | 3 | 3 | |
Total gross liability for unpaid claims and claim adjustment expense | 70 | 73 | 70 | $ 68 |
Credit insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: | 26 | 29 | 24 | |
Other short-duration insurance lines | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: | 19 | 19 | 21 | |
Reinsurance recoverable on unpaid claims: | $ 22 | $ 22 | $ 22 |
Insurance - Average Annual Perc
Insurance - Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Details) - Credit insurance | Dec. 31, 2016 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 62.20% |
Year Two | 28.30% |
Year Three | 7.80% |
Year Four | 1.90% |
Year Five | 0.20% |
Insurance - Statutory Net Incom
Insurance - Statutory Net Income (Loss) (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and casualty | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | $ 11 | $ 15 | $ 16 |
Statutory capital and surplus | 63 | 76 | |
Life and health | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | 20 | (1) | $ (2) |
Statutory capital and surplus | $ 133 | $ 123 |
Insurance - Dividend Restrictio
Insurance - Dividend Restrictions (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance | |||
Statutory Accounting Practice, Period that the ordinary dividends can be paid without prior approval | 12 months | ||
Maximum amount of dividends that may be paid in a 12 month period without prior approval from regulatory agencies, as a percentage of policyholder's surplus | 10.00% | ||
Statutory Accounting Practice, Period that the extraordinary dividends can be paid without prior approval | 12 months | ||
Maximum Amount of Extraordinary Dividend Distribution Without Prior Approval from Regulatory Agency Percentage of Policyholders Surplus | 10.00% | ||
Yosemite | |||
Insurance | |||
Dividends paid with approval of regulatory agency | $ 63 | $ 100 | $ 57 |
Merit | |||
Insurance | |||
Proceeds from Dividends Received | $ 18 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Other Liabilities Disclosure [Abstract] | ||
Accrued interest on debt | $ 48 | $ 55 |
Other accrued expenses and accounts payable | 39 | 31 |
Retirement plans | 31 | 55 |
Payables to parent and affiliates | 13 | 24 |
Loan principal warranty reserve | 13 | 15 |
Salary and benefit liabilities | 11 | 14 |
Other insurance liabilities | 6 | 5 |
Other | 24 | 17 |
Total | $ 185 | $ 216 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, $ in Millions | Jul. 31, 2014$ / sharesshares | Dec. 31, 2016USD ($)item$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014USD ($) |
Capital stock | ||||
Number of classes of authorized capital stock | item | 2 | |||
Par value and shares authorized | ||||
Special Shares, Par Value (in dollars per share) | $ / shares | $ 0 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.50 | $ 0.50 | ||
Special Shares authorized | 25,000,000 | |||
Common Shares Authorized | 25,000,000 | 25,000,000 | ||
Shares issued and outstanding | ||||
Special Stock Shares Issued | 0 | 0 | ||
Special Stock Shares Outstanding | 0 | 0 | ||
Common stock, shares issued | 10,160,021 | 10,160,020 | ||
Common stock, shares outstanding | 10,160,021 | 10,160,020 | ||
SFI | ||||
Capital stock | ||||
Capital contributions received to satisfy hybrid debt semi-annual interest payments | $ | $ 10 | $ 22 | ||
Related party capital contribution | 100 | |||
Related party capital contribution, par value (in USD per share) | $ / shares | $ 0.01 |
Accumulated Other Comprehens103
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | $ 2,032 | $ 1,977 | $ 1,385 |
Other comprehensive income before reclassifications | 26 | (18) | (20) |
Reclassification adjustments from accumulated other comprehensive income (loss) | (9) | (9) | (5) |
Balance at end of period | 2,343 | 2,032 | 1,977 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (9) | 12 | 4 |
Other comprehensive income before reclassifications | 11 | (12) | 13 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (5) | (9) | (5) |
Balance at end of period | (3) | (9) | 12 |
Retirement Plan Liabilities Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (19) | (13) | 20 |
Other comprehensive income before reclassifications | 15 | (6) | (33) |
Reclassification adjustments from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Balance at end of period | (4) | (19) | (13) |
Foreign Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | 4 | 4 | 4 |
Other comprehensive income before reclassifications | 0 | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income (loss) | (4) | 0 | 0 |
Balance at end of period | 0 | 4 | 4 |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (24) | 3 | 28 |
Balance at end of period | $ (7) | $ (24) | $ 3 |
Accumulated Other Comprehens104
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | $ 31 | $ 49 | $ 39 | ||||||||
Income tax effect | $ 12 | $ 10 | $ 6 | $ 85 | $ 4 | $ 5 | $ 0 | $ 9 | 113 | 18 | 233 |
Reclassification from accumulated other comprehensive income (loss) to other revenues | 105 | 107 | 106 | 256 | 81 | 49 | 59 | 54 | 574 | 243 | 745 |
Net income (loss) | $ 33 | $ 23 | $ 13 | $ 164 | $ 33 | $ 35 | $ 35 | $ 38 | 233 | 141 | 445 |
Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Net income (loss) | 9 | 9 | 5 | ||||||||
Unrealized Gains (Losses) Available-for-Sale Securities | Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes | 8 | 14 | 8 | ||||||||
Income tax effect | (3) | (5) | (3) | ||||||||
Net income (loss) | 5 | 9 | 5 | ||||||||
Foreign Currency Translation Adjustments | Reclassification adjustments | |||||||||||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||||||||||
Reclassification from accumulated other comprehensive income (loss) to other revenues | $ 4 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income before provision for income taxes - U.S. operations | $ 347 | $ 152 | $ 676 | ||||||||
Income (loss) before provision for income taxes - foreign operations | (1) | 7 | 2 | ||||||||
Income before provision for income taxes | $ 45 | $ 33 | $ 19 | $ 249 | $ 37 | $ 40 | $ 35 | $ 47 | 346 | 159 | 678 |
Current: | |||||||||||
Federal | 181 | 63 | 228 | ||||||||
Foreign | 0 | 0 | 0 | ||||||||
State | 15 | 5 | 17 | ||||||||
Total current | 196 | 68 | 245 | ||||||||
Deferred: | |||||||||||
Federal | (77) | (46) | (10) | ||||||||
Foreign | 0 | 0 | 0 | ||||||||
State | (6) | (4) | (2) | ||||||||
Total deferred | (83) | (50) | (12) | ||||||||
Provision for (benefit from) income taxes | 12 | $ 10 | $ 6 | 85 | 4 | $ 5 | $ 0 | 9 | 113 | $ 18 | $ 233 |
Foreign income tax expense, threshold for disclosure | $ 1 | ||||||||||
Reconciliation of the statutory federal income tax rate to the effective tax rate | |||||||||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||||||||
Non-controlling interests | (2.86%) | (27.91%) | (2.51%) | ||||||||
State income taxes, net of federal | 1.66% | 0.23% | 1.50% | ||||||||
Tax impact of United Kingdom subsidiary liquidation | (0.62%) | 0.00% | 0.00% | ||||||||
Excess tax benefit on share-based compensation | (0.20%) | 0.00% | 0.00% | ||||||||
Nontaxable investment income | (0.12%) | (0.29%) | (0.14%) | ||||||||
Nontaxable investment income | 0.00% | 3.39% | 0.00% | ||||||||
Other, net | (0.10%) | 0.70% | 0.52% | ||||||||
Effective income tax rate | 32.76% | 11.12% | 34.37% | ||||||||
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | |||||||||||
Balance at beginning of year | $ 9 | $ 4 | $ 9 | $ 4 | $ 2 | ||||||
Increases in tax positions for current years | 2 | 4 | 0 | ||||||||
Increases in tax positions for prior years | 0 | 4 | 3 | ||||||||
Decreases in tax positions for prior years | 0 | (2) | 0 | ||||||||
Settlements with tax authorities | 0 | (1) | 0 | ||||||||
Lapse in statute of limitations | 0 | 0 | (1) | ||||||||
Balance at end of year | $ 11 | $ 9 | $ 11 | $ 9 | $ 4 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 77 | $ 95 |
Mark-to-market | 55 | 0 |
State taxes, net of federal | 27 | 19 |
Pension/employee benefits | 13 | 26 |
Legal and warranty reserve | 6 | 6 |
Federal and foreign net operating losses and tax attributes | 3 | 16 |
Capital loss carryforward | 0 | 27 |
Joint venture | 0 | 8 |
Deferred insurance commissions | 0 | 5 |
Payment protection insurance liability | 0 | 2 |
Other | 2 | 8 |
Total | 183 | 212 |
Deferred tax liabilities: | ||
Debt fair value adjustment | 118 | 150 |
Impact of tax accounting method change | 38 | 76 |
Discount - debt exchange | 16 | 20 |
Insurance reserves | 14 | 15 |
Other intangible assets | 5 | 5 |
Mark-to-market | 0 | 21 |
Other | 5 | 0 |
Total | 196 | 287 |
Net deferred tax liabilities before valuation allowance | (13) | (75) |
Valuation allowance | (29) | (38) |
Net deferred tax liabilities | $ (42) | $ (113) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details 3) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income taxes | ||
Net deferred tax liabilities | $ 42 | $ 113 |
Capital loss carryforward | 78 | |
State operating loss carryforward | 610 | 548 |
Valuation allowance | 29 | 38 |
State | ||
Income taxes | ||
Valuation allowance | $ 26 | $ 22 |
Lease Commitments, Rent Expe108
Lease Commitments, Rent Expense, and Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases | |||
First quarter 2017 | $ 5 | ||
Second quarter 2017 | 5 | ||
Third quarter 2017 | 5 | ||
Fourth quarter 2017 | 5 | ||
2,017 | 20 | ||
2,018 | 16 | ||
2,019 | 10 | ||
2,020 | 6 | ||
2,021 | 2 | ||
2022 and thereafter | 1 | ||
Total | 55 | ||
Rent expense | $ 28 | $ 28 | $ 29 |
Lease Commitments, Rent Expe109
Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) request in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)request | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Loss Contingencies [Line Items] | |||
Number of loans repurchased under recourse agreement | loan | 13 | 9 | |
Payments to repurchase financing receivables | $ 1 | $ 1 | |
Material recourse requests with loss exposure not expected to be covered by reserve | request | 0 | ||
Finance Receivables Reserve for Sales Recourse Obligations [Roll Forward] | |||
Balance at beginning of period | $ 15 | 24 | 5 |
Recourse losses | 0 | (2) | 0 |
Provision for recourse obligations, net of recoveries | (2) | (7) | 19 |
Balance at end of period | 13 | $ 15 | 24 |
Real Estate Loans | |||
Loss Contingencies [Line Items] | |||
Reserve for sale recourse obligations related to finance receivables sold | $ 13 | $ 22 |
Benefit Plans (Details)
Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Springleaf Financial Services Retirement Plan | |
Benefit Plans | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 12 months |
Vesting period | 5 years |
Normal retirement age | 65 years |
Maximum credited service period | 44 years |
CommoLoCo Retirement Plan | |
Benefit Plans | |
Minimum eligibility age to participate in the plan | 21 years |
Continuous service period required to participate in the plan | 1 year |
Benefit Plans - 401(k) Plans (D
Benefit Plans - 401(k) Plans (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Springleaf Financial Services 401(k) Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | 100.00% | 100.00% |
Percentage of employee salary eligible for employer matching contribution | 4.00% | 4.00% | 4.00% |
Maximum employer discretionary profit sharing contribution as percentage of annual pay | 4.00% | ||
Salaries and benefit expense related to plan | $ 4 | $ 5 | $ 4 |
CommoLoCo Thrift Plan | |||
401(K) PLANS | |||
Maximum employer matching contribution (as a percent) | 100.00% | ||
Percentage of employee salary eligible for employer matching contribution | 3.00% | ||
Employer's match of employees' contributions of the next 3% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 3.00% |
Benefit Plans - Obligations and
Benefit Plans - Obligations and Funded Status (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of plan assets | |||
Balance at the beginning of the period | $ 333 | ||
Balance at the end of the period | 354 | $ 333 | |
Pension Plan | |||
Projected benefit obligation | |||
Balance at the beginning of the period | 388 | 409 | $ 323 |
Interest cost | 16 | 15 | 15 |
Actuarial loss (gain) | (6) | (24) | 83 |
Benefits paid: Plan assets | (13) | (12) | (12) |
Curtailment | 0 | 0 | 0 |
Balance at the end of the period | 385 | 388 | 409 |
Fair value of plan assets | |||
Balance at the beginning of the period | 333 | 359 | 317 |
Actual return of plan assets, net of expenses | 33 | (15) | 54 |
Company contributions | 1 | 1 | 0 |
Benefits paid: Plan assets | (13) | (12) | (12) |
Balance at the end of the period | 354 | 333 | 359 |
Funded status, end of period | (31) | (55) | (50) |
Net amounts recognized in the consolidated balance sheet: | |||
Other liabilities recognized in the consolidated balance sheet | (31) | (55) | (50) |
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Total amounts recognized | (7) | 29 | (19) |
Projected benefit obligation of non-qualified unfunded plans | $ 10 | 10 | 10 |
Other Postretirement Benefit Plan | |||
Projected benefit obligation | |||
Balance at the beginning of the period | 0 | 2 | |
Interest cost | 0 | ||
Actuarial loss (gain) | 0 | ||
Benefits paid: Plan assets | 0 | ||
Curtailment | (2) | ||
Balance at the end of the period | 0 | ||
Fair value of plan assets | |||
Balance at the beginning of the period | $ 0 | 0 | |
Actual return of plan assets, net of expenses | 0 | ||
Company contributions | 0 | ||
Benefits paid: Plan assets | 0 | ||
Balance at the end of the period | 0 | ||
Funded status, end of period | 0 | ||
Net amounts recognized in the consolidated balance sheet: | |||
Other liabilities recognized in the consolidated balance sheet | 0 | ||
Pretax amounts recognized in accumulated other comprehensive income or loss: | |||
Total amounts recognized | $ 0 |
Benefit Plans - PBO (Details 4)
Benefit Plans - PBO (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Total recognized in other comprehensive income or loss | $ (22,000,000) | $ 9,000,000 | $ 50,000,000 |
Pension Plan | |||
Benefit Plans | |||
Accumulated benefit obligation | 385,000,000 | 388,000,000 | |
PBO Exceeds Fair Value of Plan Assets | |||
Projected benefit obligation | 385,000,000 | 388,000,000 | |
Accumulated benefit obligation | 385,000,000 | 388,000,000 | |
Fair value of plan assets | 354,000,000 | 333,000,000 | |
Components of net periodic benefit cost: | |||
Interest cost | 16,000,000 | 15,000,000 | 15,000,000 |
Expected return on assets | (17,000,000) | (19,000,000) | (16,000,000) |
Curtailment gain | 0 | 0 | 0 |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | (1,000,000) | (4,000,000) | (1,000,000) |
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | (22,000,000) | 9,000,000 | 46,000,000 |
Net settlement gain (loss) | 0 | 0 | |
Total recognized in other comprehensive income or loss | (22,000,000) | 9,000,000 | 46,000,000 |
Total recognized in net periodic benefit cost and other comprehensive income or loss | (23,000,000) | $ 5,000,000 | 45,000,000 |
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | |||
Estimated net loss | 1,000,000 | ||
Estimated prior service credit | 0 | ||
Other Postretirement Benefit Plan | |||
Components of net periodic benefit cost: | |||
Interest cost | 0 | ||
Expected return on assets | 0 | ||
Curtailment gain | (2,000,000) | ||
Settlement loss (gain) | (4,000,000) | ||
Net periodic benefit cost | (6,000,000) | ||
Other changes in plan assets and projected benefit obligation recognized in other comprehensive income or loss: | |||
Net actuarial loss (gain) | 0 | ||
Net settlement gain (loss) | 4,000,000 | ||
Total recognized in other comprehensive income or loss | 4,000,000 | ||
Total recognized in net periodic benefit cost and other comprehensive income or loss | $ (2,000,000) | ||
Amounts that will be amortized from accumulated other comprehensive income or loss into net periodic benefit cost over the next fiscal year | |||
Estimated net loss and prior service credit | $ 0 |
Benefit Plans - Assumptions (De
Benefit Plans - Assumptions (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed income securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 90.00% | |
Target asset allocation (as a percent) | 89.00% | |
Equity securities | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 9.00% | |
Target asset allocation (as a percent) | 11.00% | |
Cash and cash equivalents | ||
Net periodic benefit costs: | ||
Actual asset allocation (as a percent) | 1.00% | |
Pension Plan | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 4.04% | 4.26% |
Rate of compensation increase (as a percent) | 0.00% | 0.00% |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 4.26% | 3.89% |
Expected return on assets (as a percent) | 5.27% | 5.27% |
Rate of compensation increase (as a percent) | 0.00% | 0.00% |
Expected future benefit payments, net of participants' contribution | ||
2,017 | $ 15 | |
2,018 | 15 | |
2,019 | 16 | |
2,020 | 16 | |
2,021 | 17 | |
2022-2026 | $ 90 | |
Other Postretirement Benefit Plan | ||
Projected benefit obligation: | ||
Discount rate (as a percent) | 3.45% | |
Net periodic benefit costs: | ||
Discount rate (as a percent) | 3.80% | |
Springleaf Financial Services Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.30% | |
CommoLoCo Retirement Plan | ||
Net periodic benefit costs: | ||
Expected return on assets (as a percent) | 5.80% |
Benefit Plans - Fair Value (Det
Benefit Plans - Fair Value (Details 6) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Benefit Plans | ||
Total fair value of plan assets | $ 354 | $ 333 |
Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 3 |
Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 351 | 330 |
Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 3 |
Cash and cash equivalents | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 3 | 3 |
Cash and cash equivalents | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Cash and cash equivalents | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 17 | 16 |
Equity securities | U.S. | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 17 | 16 |
Equity securities | U.S. | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | International | ||
Benefit Plans | ||
Total fair value of plan assets | 15 | 15 |
Equity securities | International | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Equity securities | International | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 15 | 15 |
Equity securities | International | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Investment Grade Securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 310 | 291 |
Investment Grade Securities | U.S. | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
Investment Grade Securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 310 | 291 |
Investment Grade Securities | U.S. | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
High Yield Securities | U.S. | ||
Benefit Plans | ||
Total fair value of plan assets | 9 | 8 |
High Yield Securities | U.S. | Level 1 | ||
Benefit Plans | ||
Total fair value of plan assets | 0 | 0 |
High Yield Securities | U.S. | Level 2 | ||
Benefit Plans | ||
Total fair value of plan assets | 9 | 8 |
High Yield Securities | U.S. | Level 3 | ||
Benefit Plans | ||
Total fair value of plan assets | $ 0 | $ 0 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | May 25, 2016 | Oct. 16, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
SHARE-BASED COMPENSATION | |||||
Total income tax benefit recognized for stock-based compensation | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Unrecognized compensation expense | $ 2,000,000 | ||||
Weighted average period over which unrecognized compensation expense expected is to be recognized | 2 years 1 month 6 days | ||||
Service-Based Awards [Member] | |||||
SHARE-BASED COMPENSATION | |||||
Weighted average grant date fair value (in USD per share) | $ 26.14 | $ 47.44 | $ 25.65 | ||
Fair value of vested shares | $ 10,000,000 | $ 7,000,000 | $ 1,000,000 | ||
Restricted Stock Units | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award without rights | 4 years 2 months 12 days | ||||
Weighted average grant date fair value (in USD per share) | $ 26.14 | ||||
Vested (in shares) | 441,944 | ||||
Share-based compensation expense | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 | ||
Restricted Stock Awards | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award with rights | 3 years | ||||
Performance Shares | |||||
SHARE-BASED COMPENSATION | |||||
Weighted average grant date fair value (in USD per share) | $ 34.45 | $ 25.78 | |||
Fair value of vested shares | $ 4,000,000 | ||||
Vested (in shares) | 164,673 | 0 | 0 | ||
Incentive Units | |||||
SHARE-BASED COMPENSATION | |||||
Share-based compensation expense | $ 0 | $ 15,000,000 | $ 0 | ||
Omnibus Incentive Plan | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares of common stock authorized (in shares) | 13,010,543 | ||||
Number of shares subject to outstanding equity awards (in shares) | 1,790,868 | ||||
Percentage of number of outstanding shares over number of shares reserved and available for issuance by which number of shares reserved is adjusted, more than | 10.00% | ||||
Non-Employee Directors | Omnibus Incentive Plan | |||||
Share-Based Compensation Plan and Restricted Stock Units and Awards | |||||
Maximum cash and equity-based awards to non-employee directors per calendar year | $ 500,000 | ||||
Minimum | |||||
SHARE-BASED COMPENSATION | |||||
Vesting period of award with rights | 2 years |
Share-Based Compensation - Serv
Share-Based Compensation - Service-based Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Shares | |
Unvested shares at beginning of period (in shares) | shares | 2,007,927 |
Granted (in shares) | shares | 59,315 |
Vested (in shares) | shares | (441,944) |
Forfeited (in shares) | shares | (242,378) |
Unvested shares at end of period (in shares) | shares | 1,382,920 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in USD per share) | $ / shares | $ 33.94 |
Granted (in USD per share) | $ / shares | 26.14 |
Vested (in USD per share) | $ / shares | 22.77 |
Forfeited (in USD per share) | $ / shares | 41.49 |
Weighted average grant date fair value, end of period (in USD per share) | $ / shares | $ 35.86 |
Weighted Average Remaining Term (in Years) | 2 years 1 month 17 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Based Activity (Details) - Performance Shares - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Unvested shares at beginning of period (in shares) | 581,113 | ||
Vested (in shares) | (164,673) | 0 | 0 |
Forfeited (in shares) | (8,492) | ||
Unvested shares at end of period (in shares) | 407,948 | 581,113 | |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 25.79 | ||
Vested (in USD per share) | 25.10 | ||
Forfeited (in USD per share) | 31.62 | ||
Weighted average grant date fair value, end of period (in USD per share) | $ 25.94 | $ 25.79 | |
Weighted Average Remaining Term (in Years) | 1 year 8 months 16 days |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)state | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)statesegmentdivision | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Number of operating segments | segment | 3 | ||||||||||
Number of business segments | segment | 3 | ||||||||||
Number of states where personal lending has ceased | state | 14 | ||||||||||
Interest income | $ 303 | $ 303 | $ 313 | $ 431 | $ 430 | $ 422 | $ 406 | $ 399 | $ 1,350 | $ 1,657 | $ 1,625 |
Interest expense | 127 | 135 | 138 | 156 | 167 | 171 | 171 | 158 | 556 | 667 | 683 |
Provision for finance receivable losses | 66 | 87 | 85 | 91 | 109 | 78 | 73 | 79 | 329 | 339 | 352 |
Net interest income after provision for finance receivable losses | 465 | 651 | 590 | ||||||||
Net gain on sale of SpringCastle interests | 167 | 167 | 0 | 0 | |||||||
Other revenues | 407 | 243 | 745 | ||||||||
Other expenses | 170 | 155 | 177 | 191 | 198 | 182 | 186 | 169 | 693 | 735 | 657 |
Income before provision for income taxes | 45 | $ 33 | $ 19 | $ 249 | 37 | $ 40 | $ 35 | $ 47 | 346 | 159 | 678 |
Income before provision for income taxes attributable to non-controlling interests | 28 | 127 | 48 | ||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 318 | 32 | 630 | ||||||||
Assets | 9,719 | 12,188 | 9,719 | 12,188 | 10,998 | ||||||
Unearned insurance premium and claim reserves | $ 212 | 250 | $ 212 | 250 | |||||||
Consumer and Insurance | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Number of business segments | division | 2 | ||||||||||
Number of states in which entity operates | state | 28 | 28 | |||||||||
Operating Segments | Consumer and Insurance | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | $ 1,192 | 1,115 | 911 | ||||||||
Interest expense | 402 | 190 | 163 | ||||||||
Provision for finance receivable losses | 305 | 255 | 200 | ||||||||
Net interest income after provision for finance receivable losses | 485 | 670 | 548 | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 219 | 212 | 215 | ||||||||
Other expenses | 648 | 622 | 523 | ||||||||
Income before provision for income taxes | 56 | 260 | 240 | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 56 | 260 | 240 | ||||||||
Assets | $ 5,494 | 5,632 | 5,494 | 5,632 | 4,218 | ||||||
Operating Segments | Acquisitions and Servicing Segment | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 102 | 455 | 212 | ||||||||
Interest expense | 20 | 87 | 36 | ||||||||
Provision for finance receivable losses | 14 | 68 | 36 | ||||||||
Net interest income after provision for finance receivable losses | 68 | 300 | 140 | ||||||||
Net gain on sale of SpringCastle interests | 167 | ||||||||||
Other revenues | 0 | 5 | (15) | ||||||||
Other expenses | 16 | 61 | 30 | ||||||||
Income before provision for income taxes | 219 | 244 | 95 | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 28 | 127 | 48 | ||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 191 | 117 | 47 | ||||||||
Assets | 1,784 | 1,784 | 2,536 | ||||||||
Operating Segments | Real Estate Loans | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 47 | 68 | 401 | ||||||||
Interest expense | 43 | 213 | 349 | ||||||||
Provision for finance receivable losses | 6 | (2) | 128 | ||||||||
Net interest income after provision for finance receivable losses | (2) | (143) | (76) | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | (29) | 4 | 162 | ||||||||
Other expenses | 28 | 33 | 91 | ||||||||
Income before provision for income taxes | (59) | (172) | (5) | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | (59) | (172) | (5) | ||||||||
Assets | 361 | 711 | $ 361 | 711 | 3,665 | ||||||
Other | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Number of states where personal lending has ceased | state | 14 | ||||||||||
Interest income | $ 4 | 8 | 16 | ||||||||
Interest expense | 9 | 55 | 7 | ||||||||
Provision for finance receivable losses | 1 | 7 | |||||||||
Net interest income after provision for finance receivable losses | (5) | (48) | 2 | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 208 | 42 | 6 | ||||||||
Other expenses | 1 | 17 | 10 | ||||||||
Income before provision for income taxes | 202 | (23) | (2) | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 202 | (23) | (2) | ||||||||
Assets | 3,932 | 4,119 | 3,932 | 4,119 | 555 | ||||||
Eliminations | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 0 | 0 | |||||||||
Interest expense | (5) | (5) | |||||||||
Net interest income after provision for finance receivable losses | 5 | 5 | |||||||||
Other revenues | (5) | (5) | |||||||||
Other expenses | 0 | 0 | |||||||||
Income before provision for income taxes | 0 | 0 | |||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 0 | 0 | |||||||||
Assets | 0 | 0 | 0 | ||||||||
Segment to GAAP Adjustment | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 5 | 11 | 85 | ||||||||
Interest expense | 82 | 127 | 133 | ||||||||
Provision for finance receivable losses | 4 | 17 | (19) | ||||||||
Net interest income after provision for finance receivable losses | (81) | (133) | (29) | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 9 | (15) | 382 | ||||||||
Other expenses | 0 | 2 | 3 | ||||||||
Income before provision for income taxes | (72) | (150) | 350 | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | (72) | (150) | 350 | ||||||||
Assets | $ (68) | $ (58) | $ (68) | $ (58) | $ 24 | ||||||
Corporate Joint Venture | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Ownership percentage | 47.00% |
Segment Information - Allocatio
Segment Information - Allocation of Revenues and Expenses (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | 16 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016 | Oct. 31, 2015 | |
Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 100.00% | 100.00% | |
Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent | $ 208 | ||
Residential Portfolio Segment | |||
Segment Reporting Information [Line Items] | |||
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent | (157) | ||
Other | |||
Segment Reporting Information [Line Items] | |||
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent | $ (51) | ||
Minimum | Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 83.00% | ||
Maximum | Real Estate and Other Segments | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 100.00% | ||
Total Average Unsecured Debt Allocation | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 100.00% | ||
Total Average Unsecured Debt Allocation | Minimum | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 83.00% | ||
Total Average Unsecured Debt Allocation | Maximum | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 100.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and Carrying Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Investment securities | $ 582 | $ 604 |
Notes receivable from parent and affiliates | 3,723 | 3,804 |
Restricted cash and cash equivalents | 227 | 295 |
Other assets: | ||
Commercial mortgage loans | 30 | 67 |
Escrow advance receivable | 10 | 11 |
Receivables from parent and affiliates | 40 | 9 |
Liabilities | ||
Long-term debt | 6,837 | 9,582 |
Total Fair Value | ||
Assets | ||
Cash equivalents securities | 240 | 321 |
Investment securities | 582 | 604 |
Net finance receivables, less allowance for finance receivable losses | 5,122 | 6,897 |
Finance receivables held for sale | 159 | 819 |
Notes receivable from parent and affiliates | 3,723 | 3,804 |
Restricted cash and cash equivalents | 227 | 295 |
Other assets: | ||
Commercial mortgage loans | 24 | 62 |
Escrow advance receivable | 10 | 11 |
Receivables from parent and affiliates | 40 | 9 |
Receivables related to sales of real estate loans and related trust assets | 1 | 1 |
Liabilities | ||
Long-term debt | 7,308 | 9,998 |
Payable to parent and affiliate | 13 | 24 |
Total Carrying Value | ||
Assets | ||
Cash equivalents securities | 240 | 321 |
Investment securities | 582 | 604 |
Net finance receivables, less allowance for finance receivable losses | 4,755 | 6,340 |
Finance receivables held for sale | 153 | 793 |
Notes receivable from parent and affiliates | 3,723 | 3,804 |
Restricted cash and cash equivalents | 227 | 295 |
Other assets: | ||
Commercial mortgage loans | 24 | 62 |
Escrow advance receivable | 10 | 11 |
Receivables from parent and affiliates | 40 | 9 |
Receivables related to sales of real estate loans and related trust assets | 3 | 5 |
Liabilities | ||
Long-term debt | 6,837 | 9,582 |
Payable to parent and affiliate | 13 | 24 |
Level 1 | ||
Assets | ||
Cash equivalents securities | 198 | 321 |
Investment securities | 0 | 0 |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 |
Finance receivables held for sale | 0 | 0 |
Notes receivable from parent and affiliates | 0 | 0 |
Restricted cash and cash equivalents | 227 | 295 |
Other assets: | ||
Commercial mortgage loans | 0 | 0 |
Escrow advance receivable | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Receivables related to sales of real estate loans and related trust assets | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Payable to parent and affiliate | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents securities | 42 | 0 |
Investment securities | 580 | 602 |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 |
Finance receivables held for sale | 0 | 0 |
Notes receivable from parent and affiliates | 3,723 | 3,804 |
Restricted cash and cash equivalents | 0 | 0 |
Other assets: | ||
Commercial mortgage loans | 0 | 0 |
Escrow advance receivable | 0 | 0 |
Receivables from parent and affiliates | 40 | 9 |
Receivables related to sales of real estate loans and related trust assets | 1 | 1 |
Liabilities | ||
Long-term debt | 7,308 | 9,998 |
Payable to parent and affiliate | 13 | 24 |
Level 3 | ||
Assets | ||
Cash equivalents securities | 0 | 0 |
Investment securities | 2 | 2 |
Net finance receivables, less allowance for finance receivable losses | 5,122 | 6,897 |
Finance receivables held for sale | 159 | 819 |
Notes receivable from parent and affiliates | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Other assets: | ||
Commercial mortgage loans | 24 | 62 |
Escrow advance receivable | 10 | 11 |
Receivables from parent and affiliates | 0 | 0 |
Receivables related to sales of real estate loans and related trust assets | 0 | 0 |
Liabilities | ||
Long-term debt | 0 | 0 |
Payable to parent and affiliate | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details 2) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Available-for-sale securities | $ 578 | $ 591 |
Trading securities | 3 | 12 |
Investment securities | 582 | 604 |
Trading securities | 3 | 2 |
Total | ||
Assets | ||
Cash equivalents securities | 240 | 321 |
Investment securities | 582 | 604 |
Investment securities: | ||
Assets | ||
Available-for-sale securities | 571 | 585 |
U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 13 | 82 |
Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 82 | 89 |
Corporate debt | ||
Assets | ||
Available-for-sale securities | 353 | 267 |
RMBS | ||
Assets | ||
Available-for-sale securities | 39 | 74 |
CMBS | ||
Assets | ||
Available-for-sale securities | 33 | 44 |
CDO/ABS | ||
Assets | ||
Available-for-sale securities | 46 | 29 |
Preferred stocks | ||
Assets | ||
Available-for-sale securities | 6 | 5 |
Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1 | 1 |
Common stocks | Not Carried at Fair Value | ||
Assets | ||
Available-for-sale securities | 1 | 1 |
Level 1 | ||
Assets | ||
Cash equivalents securities | 198 | 321 |
Investment securities | 0 | 0 |
Level 2 | ||
Assets | ||
Cash equivalents securities | 42 | 0 |
Investment securities | 580 | 602 |
Level 3 | ||
Assets | ||
Cash equivalents securities | 0 | 0 |
Investment securities | 2 | 2 |
Recurring basis | ||
Assets | ||
Cash and cash equivalents in mutual funds | 119 | 224 |
Available-for-sale securities | 578 | 591 |
Trading securities | 3 | 12 |
Investment securities | 581 | 603 |
Restricted cash in mutual funds | 212 | 276 |
Assets at fair value | 954 | 1,103 |
Trading securities | 2 | |
Recurring basis | Investment securities: | ||
Assets | ||
Available-for-sale securities | 571 | 585 |
Recurring basis | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 13 | 82 |
Recurring basis | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 82 | 89 |
Recurring basis | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 5 | |
Recurring basis | Corporate debt | ||
Assets | ||
Available-for-sale securities | 353 | 267 |
Trading securities | 2 | 10 |
Recurring basis | RMBS | ||
Assets | ||
Available-for-sale securities | 39 | 74 |
Recurring basis | CMBS | ||
Assets | ||
Available-for-sale securities | 33 | 44 |
Trading securities | 1 | 2 |
Recurring basis | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 46 | 29 |
Recurring basis | Preferred stocks | ||
Assets | ||
Available-for-sale securities | 6 | 5 |
Recurring basis | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1 | 1 |
Recurring basis | Cash equivalents securities | ||
Assets | ||
Cash equivalents securities | 42 | |
Recurring basis | Level 1 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 119 | 224 |
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Investment securities | 0 | 0 |
Restricted cash in mutual funds | 212 | 276 |
Assets at fair value | 331 | 500 |
Recurring basis | Level 1 | Investment securities: | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 1 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 1 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Preferred stocks | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Cash equivalents securities | ||
Assets | ||
Cash equivalents securities | 0 | |
Recurring basis | Level 2 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Available-for-sale securities | 577 | 590 |
Trading securities | 3 | 12 |
Investment securities | 580 | 602 |
Restricted cash in mutual funds | 0 | 0 |
Assets at fair value | 622 | 602 |
Recurring basis | Level 2 | Investment securities: | ||
Assets | ||
Available-for-sale securities | 571 | 585 |
Recurring basis | Level 2 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 13 | 82 |
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 82 | 89 |
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 5 | |
Recurring basis | Level 2 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 353 | 267 |
Trading securities | 2 | 10 |
Recurring basis | Level 2 | RMBS | ||
Assets | ||
Available-for-sale securities | 39 | 74 |
Recurring basis | Level 2 | CMBS | ||
Assets | ||
Available-for-sale securities | 33 | 44 |
Trading securities | 1 | 2 |
Recurring basis | Level 2 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 46 | 29 |
Recurring basis | Level 2 | Preferred stocks | ||
Assets | ||
Available-for-sale securities | 6 | 5 |
Recurring basis | Level 2 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 | Cash equivalents securities | ||
Assets | ||
Cash equivalents securities | 42 | |
Recurring basis | Level 3 | ||
Assets | ||
Cash and cash equivalents in mutual funds | 0 | 0 |
Available-for-sale securities | 1 | 1 |
Trading securities | 0 | |
Investment securities | 1 | 1 |
Restricted cash in mutual funds | 0 | 0 |
Assets at fair value | 1 | 1 |
Recurring basis | Level 3 | Investment securities: | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 3 | Corporate debt | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | RMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | CMBS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | 0 |
Recurring basis | Level 3 | CDO/ABS | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Trading securities | 0 | |
Recurring basis | Level 3 | Preferred stocks | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1 | $ 1 |
Recurring basis | Level 3 | Cash equivalents securities | ||
Assets | ||
Cash equivalents securities | $ 0 |
Fair Value Measurements - Fa123
Fair Value Measurements - Fair Value Measured on Non-Recurring Basis (Details 5) - Non-recurring basis - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 164 | $ 11 |
Impairment charges | 6 | 3 |
Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 159 | |
Impairment charges | 4 | |
Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 5 | 11 |
Impairment charges | 2 | 3 |
Level 1 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | 0 |
Level 1 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | |
Level 1 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | 0 |
Level 2 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | 0 |
Level 2 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | |
Level 2 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | 0 |
Level 3 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 164 | 11 |
Level 3 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 159 | |
Level 3 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 5 | $ 11 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2016USD ($) |
Fair Value Measurements [Abstract] | |
Debt carried at fair value | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 15, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 26, 2014 |
Subsequent Event [Line Items] | |||||
Long-term debt | $ 6,837,000,000 | $ 9,582,000,000 | |||
Consumer Securitizations: | SLFT 2014 A | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Long-term debt | $ 221,000,000 | ||||
Debt repayment | 188,000,000 | ||||
Consumer Securitizations: | SLFT 2014 A | Subsequent Event | Class D Notes | |||||
Subsequent Event [Line Items] | |||||
Long-term debt | $ 33,000,000 | ||||
Consolidated VIEs | |||||
Subsequent Event [Line Items] | |||||
Long-term debt | 2,675,000,000 | $ 5,513,000,000 | |||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | |||||
Subsequent Event [Line Items] | |||||
Long-term debt | 300,000,000 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 300,000,000 | ||||
Securitizations sold | $ 268,000,000 | ||||
Weighted average interest rate | 2.61% | ||||
Principal payments during draw period | $ 0 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | Class A Notes | |||||
Subsequent Event [Line Items] | |||||
Notes initially retained by the entity | 11,000,000 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | Class B Notes | |||||
Subsequent Event [Line Items] | |||||
Notes initially retained by the entity | 1,000,000 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | Class C Notes | |||||
Subsequent Event [Line Items] | |||||
Notes initially retained by the entity | 1,000,000 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | Class D Notes | |||||
Subsequent Event [Line Items] | |||||
Notes initially retained by the entity | 1,000,000 | ||||
Consolidated VIEs | Auto Securitization: | ODART 2017-1 | Subsequent Event | Class E Notes | |||||
Subsequent Event [Line Items] | |||||
Notes initially retained by the entity | $ 18,000,000 | ||||
Consolidated VIEs | Consumer Securitizations: | |||||
Subsequent Event [Line Items] | |||||
Long-term debt | 2,194,000,000 | ||||
Consolidated VIEs | Consumer Securitizations: | SLFT 2014 A | |||||
Subsequent Event [Line Items] | |||||
Debt instrument, face amount | $ 592,000,000 | ||||
Long-term debt | $ 217,000,000 | ||||
Notes initially retained by the entity | $ 33,000,000 |
Selected Quarterly Financial126
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 303 | $ 303 | $ 313 | $ 431 | $ 430 | $ 422 | $ 406 | $ 399 | $ 1,350 | $ 1,657 | $ 1,625 |
Interest expense | 127 | 135 | 138 | 156 | 167 | 171 | 171 | 158 | 556 | 667 | 683 |
Provision for finance receivable losses | 66 | 87 | 85 | 91 | 109 | 78 | 73 | 79 | 329 | 339 | 352 |
Other revenues | 105 | 107 | 106 | 256 | 81 | 49 | 59 | 54 | 574 | 243 | 745 |
Total other expenses | 170 | 155 | 177 | 191 | 198 | 182 | 186 | 169 | 693 | 735 | 657 |
Income before provision for income taxes | 45 | 33 | 19 | 249 | 37 | 40 | 35 | 47 | 346 | 159 | 678 |
Provision for income taxes | 12 | 10 | 6 | 85 | 4 | 5 | 0 | 9 | 113 | 18 | 233 |
Net income | 33 | 23 | 13 | 164 | 33 | 35 | 35 | 38 | 233 | 141 | 445 |
Net income attributable to non-controlling interests | 0 | 0 | 0 | 28 | 29 | 32 | 33 | 33 | 28 | 127 | 48 |
Net income attributable to Springleaf Finance Corporation | $ 33 | $ 23 | $ 13 | $ 136 | $ 4 | $ 3 | $ 2 | $ 5 | $ 205 | $ 14 | $ 397 |