Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017 | |
Document and Entity Information | |
Entity Registrant Name | SPRINGLEAF FINANCE CORP |
Entity Central Index Key | 25,598 |
Document Type | 8-K/A |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | true |
Amendment Description | On June 22, 2018, Springleaf Finance, Inc. (“SFI”), a separate wholly owned direct subsidiary of OneMain Holdings, Inc. (“OMH”), entered into a Contribution Agreement with Springleaf Finance Corporation (“SFC,” the “Company,” “we,” “us,” or “our”), a wholly owned direct subsidiary of SFI and a wholly owned indirect subsidiary of OMH, pursuant to which all of the common interests of Independence Holdings, LLC (“Independence”) were contributed to SFC on the same date (the “Contribution”). As a result of the Contribution and effective as of June 22, 2018, (i) Independence became a wholly owned direct subsidiary of SFC and (ii) Independence’s direct and indirect subsidiaries, including OneMain Financial Holdings, LLC (“OMFH”), became indirect subsidiaries of SFC. The Company’s consolidated financial statements have been retrospectively recast for all periods presented to include the historical results of Independence because the Contribution was between entities under common control. Information in the Company’s previously filed Annual Report for the fiscal year ended December 31, 2017, as filed with the Securities and Exchange Commission (the “SEC”) on February 21, 2018 (the “2017 Form 10-K”), has been updated as a result of the Contribution. Items 6, 7, 7A, 8, 9A and 15 of the 2017 Form 10-K include periods prior to the contribution of Independence and have been updated below to retrospectively reflect the Contribution and present SFC and Independence on a combined basis for all periods presented in the 2017 Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 958 | $ 553 |
Investment securities | 1,697 | 1,764 |
Net finance receivables: | ||
Personal loans (includes loans of consolidated VIEs of $9.8 billion in 2017 and $9.5 billion in 2016) | 14,775 | 13,531 |
Real estate loans | 128 | 144 |
Retail sales finance | 6 | 11 |
Net finance receivables | 14,909 | 13,686 |
Unearned insurance premium and claim reserves | (590) | (586) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | (692) | (686) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 13,627 | 12,414 |
Finance receivables held for sale | 132 | 153 |
Note receivable from parent | 391 | 285 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $482 million in 2017 and $552 million in 2016) | 498 | 568 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 439 | 491 |
Other assets | 481 | 690 |
Total assets | 19,645 | 18,340 |
Liabilities and Shareholder’s Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016) | 15,050 | 13,959 |
Insurance claims and policyholder liabilities | 737 | 757 |
Deferred and accrued taxes | 46 | 11 |
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 410 | 340 |
Total liabilities | 16,243 | 15,067 |
Commitments and contingent liabilities (Note 20) | ||
Shareholder’s equity: | ||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016 | 5 | 5 |
Additional paid-in capital | 1,909 | 1,906 |
Accumulated other comprehensive income (loss) | 6 | (6) |
Retained earnings | 1,482 | 1,368 |
Total shareholder’s equity | 3,402 | 3,273 |
Total liabilities and shareholder’s equity | $ 19,645 | $ 18,340 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Personal loans of consolidated VIEs | $ 14,775 | $ 13,531 |
Allowance for finance receivable losses | 692 | 686 |
Restricted cash and restricted cash equivalents | 498 | 568 |
Long-term debt | 15,050 | 13,959 |
Other liabilities | $ 410 | $ 340 |
Common stock, par value (in USD per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
Consolidated VIEs | ||
Allowance for finance receivable losses | $ 465 | $ 501 |
Restricted cash and restricted cash equivalents | 482 | 552 |
Long-term debt | 8,700 | 8,200 |
Other liabilities | 14 | 12 |
Personal Loans | ||
Allowance for finance receivable losses | 668 | 666 |
Personal Loans | Consolidated VIEs | ||
Personal loans of consolidated VIEs | $ 9,800 | $ 9,500 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Finance charges | $ 3,174 | $ 3,022 | $ 1,850 |
Finance receivables held for sale originated as held for investment | 13 | 74 | 60 |
Total interest income | 3,187 | 3,096 | 1,910 |
Interest expense | 816 | 856 | 715 |
Net interest income | 2,371 | 2,240 | 1,195 |
Provision for finance receivable losses | 947 | 929 | 711 |
Net interest income after provision for finance receivable losses | 1,424 | 1,311 | 484 |
Other revenues: | |||
Insurance | 420 | 449 | 211 |
Investment | 73 | 86 | 50 |
Interest income on notes receivable from parent | 23 | 19 | 15 |
Net loss on repurchases and repayments of debt | (29) | (17) | 0 |
Net gain on sale of SpringCastle interests | 0 | 167 | 0 |
Net gain on sales of personal and real estate loans and related trust assets | 0 | 18 | 0 |
Other | 53 | 32 | (1) |
Total other revenues | 540 | 754 | 275 |
Operating expenses: | |||
Salaries and benefits | 729 | 723 | 426 |
Acquisition-related transaction and integration expenses | 69 | 108 | 62 |
Other operating expenses | 587 | 670 | 371 |
Insurance policy benefits and claims | 184 | 167 | 96 |
Total other expenses | 1,569 | 1,668 | 955 |
Income (loss) before income tax expense (benefit) | 395 | 397 | (196) |
Income tax expense (benefit) | 243 | 127 | (122) |
Net income (loss) | 152 | 270 | (74) |
Net income attributable to non-controlling interests | 0 | 28 | 127 |
Net income (loss) attributable to Springleaf Finance Corporation | $ 152 | $ 242 | $ (201) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 152 | $ 270 | $ (74) |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 21 | 36 | (28) |
Retirement plan liabilities adjustments | 4 | 22 | (9) |
Foreign currency translation adjustments | 6 | 4 | (6) |
Income tax effect: | |||
Net unrealized (gains) losses on non-credit impaired available-for-sale securities | (7) | (13) | 10 |
Retirement plan liabilities adjustments | (1) | (7) | 3 |
Foreign currency translation adjustments | (2) | (1) | 2 |
Other comprehensive income (loss), net of tax, before reclassification adjustments | 21 | 41 | (28) |
Reclassification adjustments included in net income (loss): | |||
Net realized gains on available-for-sale securities | (14) | (15) | (12) |
Net realized gain on foreign currency translation adjustments | 0 | (4) | 0 |
Income tax effect: | |||
Net realized gains on available-for-sale securities | 5 | 5 | 4 |
Reclassification adjustments included in net income, net of tax | (9) | (14) | (8) |
Other comprehensive income (loss), net of tax | 12 | 27 | (36) |
Comprehensive income (loss) | 164 | 297 | (110) |
Comprehensive income attributable to non-controlling interests | 0 | 28 | 127 |
Comprehensive income (loss) attributable to Springleaf Finance Corporation | $ 164 | $ 269 | $ (237) |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Springleaf Finance Corporation Shareholder’s Equity | Non-controlling Interests |
Balance at beginning of period at Dec. 31, 2014 | $ 1,977 | $ 5 | $ 771 | $ 3 | $ 1,327 | $ 2,106 | $ (129) |
Common shares issued and outstanding | |||||||
Other comprehensive income (loss) | (36) | (36) | (36) | ||||
Net income (loss) | (74) | (201) | (201) | 127 | |||
Capital contributions from parent | 1,100 | 1,100 | 1,100 | ||||
Share-based compensation expense, net of forfeitures | 2 | 2 | 2 | ||||
Distributions declared to joint venture partners | (77) | (77) | |||||
Non-cash incentive compensation from Initial Stockholder | 15 | 15 | 15 | ||||
Excess tax benefit from share-based compensation | 1 | 1 | 1 | ||||
Balance at end of period at Dec. 31, 2015 | 2,908 | 5 | 1,889 | (33) | 1,126 | 2,987 | (79) |
Common shares issued and outstanding | |||||||
Other comprehensive income (loss) | 27 | 27 | 27 | ||||
Net income (loss) | 270 | 242 | 242 | 28 | |||
Capital contributions from parent | 10 | 10 | 10 | ||||
Share-based compensation expense, net of forfeitures | 8 | 8 | 8 | ||||
Withholding tax on share-based compensation | (1) | (1) | (1) | ||||
Distributions declared to joint venture partners | (18) | (18) | |||||
Sale of equity interests in SpringCastle joint venture | 69 | 69 | |||||
Balance at end of period at Dec. 31, 2016 | 3,273 | 5 | 1,906 | (6) | 1,368 | 3,273 | 0 |
Common shares issued and outstanding | |||||||
Other comprehensive income (loss) | 12 | 12 | 0 | 12 | |||
Dividend of SFMC to SFI | (38) | (38) | (38) | ||||
Net income (loss) | 152 | 152 | 152 | ||||
Share-based compensation expense, net of forfeitures | 5 | 5 | 5 | ||||
Withholding tax on share-based compensation | (2) | (2) | (2) | ||||
Balance at end of period at Dec. 31, 2017 | $ 3,402 | $ 5 | $ 1,909 | $ 6 | $ 1,482 | $ 3,402 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ 152 | $ 270 | $ (74) |
Reconciling adjustments: | |||
Provision for finance receivable losses | 947 | 929 | 711 |
Depreciation and amortization | 317 | 510 | 193 |
Deferred income tax charge (benefit) | 43 | (105) | (208) |
Non-cash incentive compensation from Initial Stockholder | 0 | 0 | 15 |
Net gain on liquidation of United Kingdom subsidiary | 0 | (4) | 0 |
Net gain on sales of personal and real estate loans and related trust assets | 0 | (18) | 0 |
Net loss on repurchases and repayments of debt | 29 | 17 | 0 |
Share-based compensation expense, net of forfeitures | 5 | 8 | 2 |
Net gain on sale of SpringCastle interests | 0 | (167) | 0 |
Other | (5) | (9) | 2 |
Cash flows due to changes in: | |||
Other assets and other liabilities | 175 | (189) | 1 |
Insurance claims and policyholder liabilities | (22) | (64) | 27 |
Taxes receivable and payable | 43 | (38) | 131 |
Accrued interest and finance charges | (37) | 15 | (34) |
Other, net | 0 | 3 | (2) |
Net cash provided by operating activities | 1,647 | 1,158 | 764 |
Cash flows from investing activities | |||
Net principal originations of finance receivables held for investment and held for sale | (2,267) | (1,155) | (975) |
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 930 | 78 |
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired | 0 | 0 | (3,520) |
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | 26 | 0 |
Cash advances on intercompany note to parent | (355) | (297) | (327) |
Proceeds from repayments of principal on intercompany note to parent | 249 | 401 | 189 |
Cash received from CitiFinancial Credit Company | 0 | 23 | 0 |
Available-for-sale securities purchased | (671) | (746) | (525) |
Trading and other securities purchased | 0 | (17) | (1,474) |
Available-for-sale securities called, sold, and matured | 739 | 837 | 521 |
Trading and other securities called, sold, and matured | 18 | 63 | 3,779 |
Proceeds from sale of real estate owned | 4 | 8 | 14 |
Other, net | 3 | (10) | (14) |
Net cash provided by (used for) investing activities | (2,280) | 63 | (2,254) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt, net of commissions | 5,427 | 6,660 | 3,028 |
Repayments of long-term debt | (4,447) | (8,320) | (1,960) |
Distributions to joint venture partners | (18) | (77) | |
Withholding tax on vested RSUs and PRSUs | (2) | (1) | 1 |
Cash dividend of SFMC | (10) | 0 | 0 |
Capital contributions from parent | 0 | 10 | 1,100 |
Net cash provided by (used for) financing activities | 968 | (1,669) | 2,092 |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 335 | (448) | 602 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,121 | 1,569 | 967 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,456 | 1,121 | 1,569 |
Supplemental cash flow information | |||
Cash and cash equivalents | 958 | 553 | 893 |
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,121 | 1,569 | 967 |
Interest paid | (746) | (765) | (594) |
Income taxes received (paid) | (154) | (269) | 43 |
Supplemental non-cash activities | |||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 1,945 | 617 |
Increase in finance receivables held for investment financed with intercompany payable | 0 | 89 | 0 |
Transfer of finance receivables to real estate owned | 9 | 8 | 11 |
Net unsettled investment security purchases | 1 | 1 | 0 |
Non-cash dividend of SFMC | $ (28) | $ 0 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Springleaf Finance Corporation is referred to in this report as SFC or, collectively with its subsidiaries, whether directly or indirectly owned, “Springleaf,” the “Company,” “we,” “us,” or “our” is a wholly owned subsidiary of SFI. SFI is a wholly owned subsidiary of OMH. SFC is a financial services holding company whose principal subsidiaries are Independence Holdings, LLC (“Independence”), which, as described below, was contributed to SFC by SFI on June 22, 2018, and other direct subsidiaries engaged in the consumer finance and insurance businesses. At December 31, 2017 , the Initial Stockholder owned approximately 44% of OMH’s common stock. The Initial Stockholder is owned primarily by a private equity fund managed by an affiliate of Fortress. On December 27, 2017, SoftBank acquired Fortress and Fortress now operates within SoftBank as an independent business headquartered in New York. See Note 24 regarding a definitive agreement entered into on January 3, 2018, among OMH, an investor group led by funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) and Värde Partners, Inc. (“Värde” and together with Apollo, collectively, the “Apollo-Värde Group”) and the Initial Stockholder. |
Significant Transactions
Significant Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Significant Transactions | Significant Transactions INDEPENDENCE CONTRIBUTION On June 22, 2018, SFC entered into a Contribution Agreement with SFI, a wholly-owned subsidiary of OMH. Pursuant to the Contribution Agreement, Independence was contributed by SFI to SFC. The Company has retrospectively recast the financial results for all periods to include Independence as required for transactions between entities under common control. The following table presents the Company’s previously reported Consolidated Balance Sheet as of December 31, 2017 and 2016 retrospectively recast for the contribution of Independence: (dollars in millions, except par value amount) 2017 As Reported SFC Independence Adjustments Consolidated SFC Assets Cash and cash equivalents $ 244 $ 714 $ — $ 958 Investment securities 536 1,172 (11 ) 1,697 Net finance receivables: Personal loans 5,308 9,467 — 14,775 Real estate loans 128 — — 128 Retail sales finance 6 — — 6 Net finance receivables 5,442 9,467 — 14,909 Unearned insurance premium and claim reserves (108 ) (482 ) — (590 ) Allowance for finance receivable losses (240 ) (452 ) — (692 ) Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 5,094 8,533 — 13,627 Finance receivables held for sale 132 — — 132 Notes receivable from parent and affiliates 4,488 — (4,097 ) 391 Restricted cash and restricted cash equivalents 169 329 — 498 Goodwill — 1,422 — 1,422 Other intangible assets 15 424 — 439 Other assets 146 402 (67 ) 481 Total assets $ 10,824 $ 12,996 $ (4,175 ) $ 19,645 Liabilities and Shareholder’s Equity Long-term debt $ 7,865 $ 7,195 $ (10 ) 15,050 Note payable to parent and affiliates — 4,097 (4,097 ) — Insurance claims and policyholder liabilities 261 476 — 737 Deferred and accrued taxes 78 3 (35 ) 46 Other liabilities 214 229 (33 ) 410 Total liabilities 8,418 12,000 (4,175 ) 16,243 Commitments and contingent liabilities (Note 20) Shareholder’s equity: Common stock 5 — — 5 Additional paid-in capital 799 1,110 — 1,909 Accumulated other comprehensive income (loss) — 6 — 6 Retained earnings 1,602 (120 ) — 1,482 Total shareholder’s equity 2,406 996 — 3,402 Total liabilities and shareholder’s equity $ 10,824 $ 12,996 $ (4,175 ) $ 19,645 (dollars in millions, except par value amount) 2016 As Reported SFC Independence Adjustments Consolidated SFC Assets Cash and cash equivalents $ 240 $ 313 $ — $ 553 Investment securities 582 1,188 (6 ) 1,764 Net finance receivables: Personal loans 4,804 8,727 — 13,531 Real estate loans 144 — — 144 Retail sales finance 11 — — 11 Net finance receivables 4,959 8,727 — 13,686 Unearned insurance premium and claim reserves (212 ) (374 ) — (586 ) Allowance for finance receivable losses (204 ) (482 ) — (686 ) Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 4,543 7,871 — 12,414 Finance receivables held for sale 153 — — 153 Notes receivable from parent and affiliates 3,723 — (3,438 ) 285 Restricted cash and restricted cash equivalents 227 341 — 568 Goodwill — 1,422 — 1,422 Other intangible assets 15 476 — 491 Other assets 236 552 (98 ) 690 Total assets $ 9,719 $ 12,163 $ (3,542 ) $ 18,340 Liabilities and Shareholder’s Equity Long-term debt $ 6,837 $ 7,127 $ (5 ) 13,959 Note payable to parent and affiliates — 3,438 (3,438 ) — Insurance claims and policyholder liabilities 248 509 — 757 Deferred and accrued taxes 106 — (95 ) 11 Other liabilities 185 159 (4 ) 340 Total liabilities 7,376 11,233 (3,542 ) 15,067 Commitments and contingent liabilities (Note 20) Shareholder’s equity: Common stock 5 — — 5 Additional paid-in capital 799 1,107 — 1,906 Accumulated other comprehensive income (loss) (7 ) 1 — (6 ) Retained earnings 1,546 (178 ) — 1,368 Total shareholder’s equity 2,343 930 — 3,273 Total liabilities and shareholder’s equity $ 9,719 $ 12,163 $ (3,542 ) $ 18,340 The following table presents the Company’s previously reported Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence: (dollars in millions) 2017 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,228 $ 1,946 $ — $ 3,174 Finance receivables held for sale originated as held for investment 13 — — 13 Total interest income 1,241 1,946 — 3,187 Interest expense 517 531 (232 ) 816 Net interest income 724 1,415 232 2,371 Provision for finance receivable losses 324 623 — 947 Net interest income after provision for finance receivable losses 400 792 232 1,424 Other revenues: Insurance 140 280 — 420 Investment 28 45 — 73 Interest income on notes receivable from parent and affiliates 255 — (232 ) 23 Net loss on repurchases and repayments of debt (28 ) (1 ) — (29 ) Other 12 69 (28 ) 53 Total other revenues 407 393 (260 ) 540 Other expenses: Operating expenses: Salaries and benefits 307 442 (20 ) 729 Acquisition-related transaction and integration expenses — — 69 69 Other operating expenses 251 413 (77 ) 587 Insurance policy benefits and claims 56 128 — 184 Total other expenses 614 983 (28 ) 1,569 Income before income tax expense 193 202 — 395 Income tax expense 99 144 — 243 Net income 94 58 — 152 Net income attributable to non-controlling interests — — — — Net income attributable to Springleaf Finance Corporation $ 94 $ 58 $ — $ 152 (dollars in millions) 2016 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,276 $ 1,746 $ — $ 3,022 Finance receivables held for sale originated as held for investment 74 — — 74 Total interest income 1,350 1,746 — 3,096 Interest expense 556 502 (202 ) 856 Net interest income 794 1,244 202 2,240 Provision for finance receivable losses 329 600 — 929 Net interest income after provision for finance receivable losses 465 644 202 1,311 Other revenues: Insurance 160 289 — 449 Investment 31 55 — 86 Interest income on notes receivable from parent and affiliates 214 7 (202 ) 19 Net loss on repurchases and repayments of debt (17 ) — — (17 ) Net gain on sale of SpringCastle interests 167 — — 167 Net gain on sales of personal and real estate loans and related trust assets 18 — — 18 Other 1 31 — 32 Total other revenues 574 382 (202 ) 754 Other expenses: Operating expenses: Salaries and benefits 347 427 (51 ) 723 Acquisition-related transaction and integration expenses — — 108 108 Other operating expenses 291 436 (57 ) 670 Insurance policy benefits and claims 55 112 — 167 Total other expenses 693 975 — 1,668 Income before income tax expense 346 51 — 397 Income tax expense 113 14 — 127 Net income 233 37 — 270 Net income attributable to non-controlling interests 28 — — 28 Net income attributable to Springleaf Finance Corporation $ 205 $ 37 $ — $ 242 (dollars in millions) 2015 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,597 $ 253 $ — $ 1,850 Finance receivables held for sale originated as held for investment 60 — — 60 Total interest income 1,657 253 — 1,910 Interest expense 667 75 (27 ) 715 Net interest income 990 178 27 1,195 Provision for finance receivable losses 339 372 — 711 Net interest income after provision for finance receivable losses 651 (194 ) 27 484 Other revenues: Insurance 158 53 — 211 Investment 49 1 — 50 Interest income on notes receivable from parent and affiliates 42 — (27 ) 15 Other (6 ) 5 — (1 ) Total other revenues 243 59 (27 ) 275 Other expenses: Operating expenses: Salaries and benefits 364 73 (11 ) 426 Acquisition-related transaction and integration expenses — — 62 62 Other operating expenses 299 123 (51 ) 371 Insurance policy benefits and claims 72 24 — 96 Total other expenses 735 220 — 955 Income before income tax expense (benefit) 159 (355 ) — (196 ) Income tax expense (benefit) 18 (140 ) — (122 ) Net income (loss) 141 (215 ) — (74 ) Net income attributable to non-controlling interests 127 — — 127 Net income (loss) attributable to Springleaf Finance Corporation $ 14 $ (215 ) $ — $ (201 ) The following table presents the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence: 2017 (dollars in millions) As Reported Independence Adjustments Consolidated Cash flows from operating activities Net income $ 94 $ 58 $ — $ 152 Reconciling adjustments: Provision for finance receivable losses 324 623 — 947 Depreciation and amortization 143 174 — 317 Deferred income tax benefit (82 ) 125 — 43 Net loss on repurchases and repayments of debt 28 1 — 29 Share-based compensation expense, net of forfeitures — 5 — 5 Other 1 (6 ) — (5 ) Cash flows due to changes in: Other assets and other liabilities 107 68 — 175 Insurance claims and policyholder liabilities (92 ) 70 — (22 ) Taxes receivable and payable 13 30 — 43 Accrued interest and finance charges (95 ) 54 4 (37 ) Other, net (3 ) 3 — — Net cash provided by operating activities 438 1,205 4 1,647 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (783 ) (1,484 ) — (2,267 ) Cash advances on intercompany notes receivable (1,837 ) — 1,482 (355 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 1,154 — (905 ) 249 Available-for-sale securities purchased (245 ) (431 ) 5 (671 ) Available-for-sale securities called, sold, and matured 301 438 — 739 Trading and other securities called, sold, and matured 1 17 — 18 Proceeds from sale of real estate owned 4 — — 4 Other, net 12 (9 ) — 3 Net cash provided by (used for) financing activities (1,393 ) (1,469 ) 582 (2,280 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,456 1,971 — 5,427 Repayments of long-term debt (2,544 ) (1,898 ) (5 ) (4,447 ) Proceeds from intercompany note payable — 1,486 (1,486 ) — Payments on intercompany note payable — (905 ) 905 — Withholding tax on vested RSUs and PRSUs (1 ) (1 ) — (2 ) Cash dividend of SFMC (10 ) — — (10 ) Net cash provided by (used for) financing activities 901 653 (586 ) 968 Consolidated Statements of Cash Flows (Continued) 2017 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (54 ) 389 — 335 Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 467 654 — $ 1,121 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 413 $ 1,043 $ — $ 1,456 Supplemental cash flow information Cash and cash equivalents $ 244 $ 714 $ — $ 958 Restricted cash and restricted cash equivalents 169 329 — 498 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 413 $ 1,043 $ — $ 1,456 Interest paid $ (436 ) $ (310 ) $ — $ (746 ) Income taxes received (paid) (71 ) (83 ) — (154 ) Supplemental non-cash activities Transfer of finance receivables to real estate owned $ 9 $ — $ — $ 9 Net unsettled investment security purchases — 1 — $ 1 Non-cash dividend of SFMC (28 ) — — (28 ) Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. 2016 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Cash flows from operating activities Net income $ 233 $ 37 $ — $ 270 Reconciling adjustments: Provision for finance receivable losses 329 600 — 929 Depreciation and amortization 144 366 — 510 Deferred income tax benefit (83 ) (22 ) — (105 ) Net gain on liquidation of United Kingdom subsidiary (4 ) — — (4 ) Net gain on sales of personal and real estate loans and related trust assets (18 ) — — (18 ) Net loss on repurchases and repayments of debt 17 — — 17 Share-based compensation expense, net of forfeitures 1 7 — 8 Net gain on sale of SpringCastle interests (167 ) — — (167 ) Other 6 (15 ) — (9 ) Cash flows due to changes in: Other assets and other liabilities (37 ) (152 ) — (189 ) Insurance claims and policyholder liabilities (19 ) (45 ) — (64 ) Taxes receivable and payable 56 (94 ) — (38 ) Accrued interest and finance charges 14 1 — 15 Other, net 3 — — 3 Net cash provided by operating activities 475 683 — 1,158 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (557 ) (598 ) — (1,155 ) Proceeds on sales of finance receivables held for sale originated as held for investment 930 — — 930 Proceeds from sale of SpringCastle interests, net of restricted cash released 26 — — 26 Cash advances on intercompany notes receivable (1,042 ) (670 ) 1,415 (297 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 1,023 670 (1,292 ) 401 Cash received from CitiFinancial Credit Company — 23 — 23 Available-for-sale securities purchased (353 ) (399 ) 6 (746 ) Trading and other securities purchased (10 ) (7 ) — (17 ) Available-for-sale securities called, sold, and matured 380 457 — 837 Trading and other securities called, sold, and matured 20 43 — 63 Proceeds from sale of real estate owned 8 — — 8 Other, net 26 (36 ) — (10 ) Net cash provided by (used for) investing activities 451 (517 ) 129 63 Consolidated Statements of Cash Flows (Continued) 2016 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,854 2,806 — 6,660 Proceeds from intercompany note payable 670 1,415 (2,085 ) — Repayments of long-term debt (4,920 ) (3,394 ) (6 ) (8,320 ) Distributions to joint venture partners (18 ) — — (18 ) Payments on note payable to affiliate (670 ) (1,292 ) 1,962 — Withholding tax on vested RSUs and PRSUs (1 ) — — (1 ) Capital contributions from parent 10 — — 10 Net cash provided by (used for) financing activities (1,075 ) (465 ) (129 ) (1,669 ) Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (149 ) (299 ) — (448 ) Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 616 953 — 1,569 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 467 $ 654 $ — $ 1,121 Supplemental cash flow information Cash and cash equivalents $ 240 $ 313 $ — $ 553 Restricted cash and restricted cash equivalents 227 341 — 568 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 467 $ 654 $ — $ 1,121 Interest paid $ (451 ) $ (314 ) $ — $ (765 ) Income taxes received (paid) (140 ) (129 ) — (269 ) 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 $ — $ — $ 1,945 Increase in finance receivables held for investment financed with intercompany payable 89 — — 89 Transfer of finance receivables to real estate owned 8 — — 8 Net unsettled investment security purchases — 1 — 1 Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. 2015 (dollars in millions) As Reported Independence Adjustments Consolidated SFC Cash flows from operating activities Net income (loss) $ 141 $ (215 ) $ — $ (74 ) Reconciling adjustments: Provision for finance receivable losses 339 372 — 711 Depreciation and amortization 92 101 — 193 Deferred income tax benefit (50 ) (158 ) — (208 ) Non-cash incentive compensation from Initial Stockholder 15 — — 15 Share-based compensation expense, net of forfeitures 2 — — 2 Other (3 ) 5 — 2 Cash flows due to changes in: Other assets and other liabilities (48 ) 49 — 1 Insurance claims and policyholder liabilities 34 (7 ) — 27 Taxes receivable and payable 111 20 — 131 Accrued interest and finance charges (23 ) (11 ) — (34 ) Other, net (2 ) — — (2 ) Net cash provided by operating activities 608 156 — 764 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (799 ) (176 ) — (975 ) Proceeds on sales of finance receivables held for sale originated as held for investment 78 — — 78 Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired — (3,520 ) — (3,520 ) Cash advances on intercompany notes receivable (3,720 ) — 3,393 (327 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 189 — — 189 Available-for-sale securities purchased (476 ) (49 ) — (525 ) Trading and other securities purchased (1,474 ) — — (1,474 ) Available-for-sale securities called, sold, and matured 470 51 — 521 Trading and other securities called, sold, and matured 3,779 — — 3,779 Proceeds from sale of real estate owned 14 — — 14 Other, net (12 ) (2 ) — (14 ) Net cash (used for) financing activities (1,951 ) (3,696 ) 3,393 (2,254 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,028 — — 3,028 Repayments of long-term debt (1,960 ) — — (1,960 ) Proceeds from intercompany note payable — 3,393 (3,393 ) — Distributions to joint venture partners (77 ) — — (77 ) Excess tax benefit from share-based compensation 1 — — 1 Capital contribution — 1,100 — 1,100 Net cash provided by financing activities 992 4,493 (3,393 ) 2,092 Consolidated Statements of Cash Flows (Continued) 2015 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (351 ) 953 — 602 Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 967 — — 967 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 616 $ 953 $ — $ 1,569 Supplemental cash flow information Cash and cash equivalents $ 321 $ 572 $ — $ 893 Restricted cash and restricted cash equivalents 295 381 — 676 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 616 $ 953 $ — $ 1,569 Interest paid $ (511 ) $ (83 ) $ — $ (594 ) Income taxes received (paid) 45 (2 ) — 43 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) $ 617 $ — $ — $ 617 Transfer of finance receivables to real estate owned 11 — — 11 Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. ONEMAIN ACQUISITION On November 15, 2015, Independence completed its acquisition of OMFH from Citigroup for approximately $4.5 billion in cash (the “OneMain Acquisition”). OMFH is a leading consumer finance company in the United States, providing personal loans to primarily middle income households through a national, community based network. The results of OMFH are included in our consolidated results from November 1, 2015, pursuant to our contractual agreements with Citigroup. We allocated the purchase price to the net tangible and intangible assets acquired and liabilities assumed, based on their respective estimated fair values as of October 31, 2015. Given the timing of this transaction and complexity of the purchase accounting, our estimate of the fair value adjustment specific to the acquired loans and intangible assets was preliminary, and our determination of the final tax positions with Citigroup was also preliminary. During 2016, we finalized the accounting for these matters as shown in the table below. The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) As Reported Adjustments* As Adjusted Cash consideration $ 4,478 $ (23 ) (a) $ 4,455 Fair value of assets acquired: Cash and cash equivalents 958 — 958 Investment securities 1,294 — 1,294 Personal loans 8,801 (6 ) (b) 8,795 Intangibles 555 3 (c) 558 Other assets 247 (3 ) (d) 244 Fair value of liabilities assumed: Long-term debt (7,725 ) — (7,725 ) Unearned premium, insurance policy and claims reserves (936 ) — (936 ) Other liabilities (156 ) 1 (e) (155 ) Goodwill $ 1,440 $ 1,422 * During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available: (a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments. (b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period. (c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date. (d) Represents a decrease in valuation of acquired software asset. (e) Represents the settlement of a payable to Citigroup during the measurement period. Of the adjusted $8.8 billion of acquired personal loans included in the table above, $8.1 billion relates to finance receivables determined not to be credit impaired at acquisition. Contractually required principal and interest of these non-credit impaired personal loans was $11.6 billion at the date of acquisition, of which $2.2 billion is not expected to be collected, primarily due to forgone interest as a result of prepayments and defaults. The goodwill recognized from the OneMain Acquisition is reported in our Consumer and Insurance segment. We did not record any impairments to goodwill during 2017 and 2016. See Note 9 for the reconciliations of the carrying amounts of goodwill at the beginning and end of 2017 and 2016. As of December 31, 2017, we had incurred approximately $239 million of acquisition-related transaction and integration expenses ( $69 million incurred during 2017) in connection with the OneMain Acquisition and the Lendmark Sale, which we report as a component of operating expenses. These expenses primarily include transaction costs, technology termination and certain compensation and benefit related costs. 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. The sale contemplated under the terms of the Settlement Agreement was consummated through the Lendmark Sale described below. 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 entered into a transition services agreement with Lendmark dated as of May 2, 2016 (the “Transition Services Agreement”), and OMH’s and our activities remained 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 expired on May 1, 2017. 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.” 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. 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 . SFC’s MEDIUM-TERM NOTE ISSUANCES 8.25% Senior Notes Due 2020 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 “SFC Base Indenture”), as supplemented by a First Supplemental Indenture, dated as of December 3, 2014 (the “SFC First Supplemental Indenture”) and a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture”), pursuant to which OMH provided a guarantee of the notes on an unsecured basis. 6.125% Senior Notes Due 2022 On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “ 6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price. 5.625% Senior Notes Due 2023 On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the ‘‘ 5.625% SFC Notes’’) under the SFC Base Indenture, as supplemented by a Fourth Supplemental Indenture |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies BASIS OF PRESENTATION We prepared our consolidated financial statements using 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 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 23, we have revised our prior period segment disclosures. ACCOUNTING POLICIES Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments include: • Consumer and Insurance; and • Acquisitions and Servicing. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. 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, 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 four contractual payments become past due for personal loans 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 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, capitalize past due interest or 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 contractual 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 personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. 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. 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. Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill 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 OneMain trade name, insurance licenses, lending 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. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance . 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) 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 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial 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 for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $167 million of minimum lease commitments from these operating leases (refer to Note 20). 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 impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, w hich 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. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. 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: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, 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, 2017 | |
Receivables [Abstract] | |
Finance Receivables | Finance Receivables Our finance receivable types include personal loans, real estate loans, and retail sales finance as defined below: • Personal loans — are secured by consumer goods, automobiles, or other personal property or are unsecured, typically non-revolving with a fixed-rate and a fixed, original term of three to six years . At December 31, 2017 , we had over 2.3 million personal loans representing $14.8 billion of net finance receivables, compared to 2.2 million personal loans totaling $13.5 billion at December 31, 2016 . • Real estate loans — are secured by first or second mortgages on residential real estate, generally have maximum original terms of 360 months , and are considered non-conforming. Real estate loans may be closed-end accounts or open-end home equity lines of credit and are primarily fixed-rate products. In 2012, we ceased originating real estate loans and the portfolio is 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, are secured by the personal property designated in the contract and generally have maximum original terms of 60 months . Revolving retail accounts are open-end accounts that can be used for financing repeated purchases from the same merchant, are secured by the goods purchased and generally require minimum monthly payments based on the amount financed calculated after the most recent purchase or outstanding balances. Our retail sales finance portfolio is in a liquidating status. Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Gross receivables * $ 16,173 $ 127 $ 7 $ 16,307 Unearned finance charges and points and fees (1,724 ) — (1 ) (1,725 ) Accrued finance charges 210 1 — 211 Deferred origination costs 116 — — 116 Total $ 14,775 $ 128 $ 6 $ 14,909 December 31, 2016 Gross receivables * $ 15,360 $ 142 $ 12 $ 15,514 Unearned finance charges and points and fees (2,061 ) 1 (1 ) (2,061 ) Accrued finance charges 150 1 — 151 Deferred origination costs 82 — — 82 Total $ 13,531 $ 144 $ 11 $ 13,686 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. At December 31, 2017 and 2016 , unused lines of credit extended to customers by the Company were immaterial. 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, 2017 2016 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,300 9 % $ 1,194 9 % North Carolina 1,155 8 1,112 8 Pennsylvania 882 6 825 6 California 876 6 806 6 Ohio 726 5 660 5 Florida 674 5 572 4 Illinois 667 4 599 4 Virginia 641 4 623 5 Georgia 618 4 586 4 Indiana 608 4 539 4 Tennessee 520 3 465 3 Other 6,242 42 5,705 42 Total $ 14,909 100 % $ 13,686 100 % * December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 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 contractually 60 days past due, we consider them delinquent and transfer collection of these accounts to our centralized operations, as these accounts are considered to be at increased risk for loss. At 90 days or more past due, we consider our finance receivables to be nonperforming. The following is a summary of net finance receivables held for investment by type and by number of days delinquent: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Performing: Current $ 14,081 $ 98 $ 6 $ 14,185 30-59 days past due 202 8 — 210 60-89 days past due 156 3 — 159 Total performing 14,439 109 6 14,554 Nonperforming: 90-179 days past due 330 4 — 334 180 days or more past due 6 15 — 21 Total nonperforming 336 19 — 355 Total $ 14,775 $ 128 $ 6 $ 14,909 December 31, 2016 Performing: Current $ 12,878 $ 102 $ 11 $ 12,991 30-59 days past due 173 9 — 182 60-89 days past due 129 4 — 133 Total performing 13,180 115 11 13,306 Nonperforming: 90-179 days past due 347 8 — 355 180 days or more past due 4 21 — 25 Total nonperforming 351 29 — 380 Total $ 13,531 $ 144 $ 11 $ 13,686 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, 2017 and at December 31, 2016 were immaterial. PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES Our purchased credit impaired finance receivables consist of receivables purchased in connection with the OneMain Acquisition and the Fortress Acquisition. Prior to March 31, 2016, our purchased credit impaired finance receivables also included the SpringCastle Portfolio, which was purchased in connection with the joint venture acquisition of the SpringCastle Portfolio. On March 31, 2016, we sold our interest in the SpringCastle Portfolio in connection with the SpringCastle Interests Sale. We report the carrying amount (which initially was the fair value) of our purchased credit impaired finance receivables in net finance receivables, less allowance for finance receivable losses or in finance receivables held for sale as discussed below. At December 31, 2017 and 2016 , finance receivables held for sale totaled $132 million and $ 153 million , respectively, which include purchased credit impaired finance receivables, as well as TDR finance receivables. Therefore, we are presenting the financial information for our purchased credit impaired finance receivables and TDR finance receivables combined for finance receivables held for investment and finance receivables held for sale in the tables below. See Note 7 for further information on our finance receivables held for sale. Information regarding our purchased credit impaired finance receivables held for investment and held for sale were as follows: December 31, 2017 2016 (dollars in millions) OM Loans FA Loans (a) Total OM Loans FA Loans (a) Total Carrying amount, net of allowance $ 176 $ 57 $ 233 $ 324 $ 70 $ 394 Outstanding balance (b) 243 94 337 444 107 551 Allowance for purchased credit impaired finance receivable losses 6 9 15 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 (b) Outstanding balance is defined as UPB of the loans with a net carrying amount. The allowance for purchased credit impaired finance receivable losses at December 31, 2017 and 2016 , reflected the carrying value of the purchased credit impaired loans held for investment being higher than the present value of the expected cash flows. Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (a) (34 ) — (5 ) (39 ) Reclassifications to nonaccretable difference (b) 22 — (2 ) 20 Balance at end of period $ 47 $ — $ 53 $ 100 Year Ended December 31, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (a) (69 ) (16 ) (7 ) (92 ) Other (c) (23 ) — — (23 ) Reclassifications from nonaccretable difference (b) — — 12 12 Transfers due to finance receivables sold — (359 ) (11 ) (370 ) Balance at end of period $ 59 $ — $ 60 $ 119 Year Ended December 31, 2015 Balance at beginning of period $ — $ 452 $ 54 $ 506 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (15 ) (77 ) (8 ) (100 ) Reclassifications from nonaccretable difference (b) — — 20 20 Balance at end of period $ 151 $ 375 $ 66 $ 592 (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, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 (b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. 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 Real Estate Total December 31, 2017 TDR gross finance receivables (b) $ 318 $ 139 $ 457 TDR net finance receivables 317 140 457 Allowance for TDR finance receivable losses 134 12 146 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 (a) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 (b) As defined earlier in this Note. As of December 31, 2017 , we had no commitments to lend additional funds on our TDR finance receivables. TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans (a) SpringCastle Portfolio Real Estate Total Year Ended December 31, 2017 TDR average net receivables $ 230 $ — $ 140 $ 370 TDR finance charges recognized 33 — 9 42 Year Ended December 31, 2016 TDR average net receivables $ 95 $ — $ 175 $ 270 TDR finance charges recognized 12 — 11 23 Year Ended December 31, 2015 TDR average net receivables (c) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 (c) TDR personal loan average net receivables for 2015 reflect a two-month average for OneMain’s TDR average net 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, 2017 Pre-modification TDR net finance receivables $ 326 $ — $ 16 $ 342 Post-modification TDR net finance receivables: Rate reduction $ 250 $ — $ 16 $ 266 Other (c) 74 — — 74 Total post-modification TDR net finance receivables $ 324 $ — $ 16 $ 340 Number of TDR accounts 45,300 — 510 45,810 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 211 $ 1 $ 16 $ 228 Post-modification TDR net finance receivables: Rate reduction $ 194 $ 1 $ 16 $ 211 Other (c) 12 — 1 13 Total post-modification TDR net finance receivables $ 206 $ 1 $ 17 $ 224 Number of TDR accounts 29,395 157 364 29,916 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 47 $ 7 $ 21 $ 75 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (c) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,365 721 385 9,471 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 (c) “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, 2017 TDR net finance receivables (b) $ 88 $ — $ 4 $ 92 Number of TDR accounts 14,935 — 101 15,036 Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 24 $ — $ 3 $ 27 Number of TDR accounts 3,684 19 61 3,764 Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,649 147 46 1,842 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 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 (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, 2017 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | Allowance for Finance Receivable Losses Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2017 Balance at beginning of period $ 666 $ — $ 19 $ 1 $ 686 Provision for finance receivable losses 941 — 6 — 947 Charge-offs (1,041 ) — (5 ) (1 ) (1,047 ) Recoveries 102 — 3 1 106 Balance at end of period $ 668 $ — $ 23 $ 1 $ 692 Year Ended December 31, 2016 Balance at beginning of period $ 538 $ 4 $ 46 $ 1 $ 589 Provision for finance receivable losses 906 14 9 — 929 Charge-offs (843 ) (17 ) (11 ) (1 ) (872 ) Recoveries 65 3 5 1 74 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 666 $ — $ 19 $ 1 $ 686 Year Ended December 31, 2015 Balance at beginning of period $ 130 $ 3 $ 46 $ 1 $ 180 Provision for finance receivable losses 629 67 13 2 711 Charge-offs (257 ) (78 ) (18 ) (3 ) (356 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 538 $ 4 $ 46 $ 1 $ 589 (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; 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. The allowance for finance receivable losses and net finance receivables by type and by impairment method were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 528 $ 2 $ 1 $ 531 Purchased credit impaired finance receivables 6 9 — 15 TDR finance receivables 134 12 — 146 Total $ 668 $ 23 $ 1 $ 692 Finance receivables: Collectively evaluated for impairment $ 14,276 $ 57 $ 6 $ 14,339 Purchased credit impaired finance receivables 182 22 — 204 TDR finance receivables 317 49 — 366 Total $ 14,775 $ 128 $ 6 $ 14,909 Allowance for finance receivable losses as a percentage of finance receivables 4.52 % 18.66 % 9.91 % 4.64 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 568 $ — $ 1 $ 569 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 666 $ 19 $ 1 $ 686 Finance receivables: Collectively evaluated for impairment $ 13,026 $ 76 $ 11 $ 13,113 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,531 $ 144 $ 11 $ 13,686 Allowance for finance receivable losses as a percentage of finance receivables 4.92 % 13.31 % 4.42 % 5.01 % 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, 2017 | |
Receivables Held-for-sale [Abstract] | |
Finance Receivables Held for Sale | Finance Receivables Held for Sale We report finance receivables held for sale of $132 million at December 31, 2017 and $153 million at December 31, 2016 , which are carried at the lower of cost or fair value and consist entirely of real estate loans. At December 31, 2017 and 2016 , the fair value of our finance receivables held for sale exceeded the cost. We used the aggregate basis to determine the lower of cost or fair value of finance receivables held for sale. See Note 3 for more information regarding our accounting policy for finance receivables held for sale. SPRINGCASTLE PORTFOLIO During March of 2016, we transferred $1.6 billion of loans of the SpringCastle Portfolio from held for investment to held for sale and simultaneously sold our interests in these finance receivables held for sale on March 31, 2016 in the SpringCastle Interests Sale and recorded a net gain in other revenues at the time of sale of $167 million . PERSONAL LOANS During 2015, we transferred $ 608 million of personal loans from held for investment to held for sale. On May 2, 2016, we sold personal loans held for sale with a carrying value of $602 million and recorded a net gain in other revenues at the time of sale of $22 million . REAL ESTATE LOANS On November 30, 2016, we transferred $50 million of real estate loans from held for investment to held for sale. 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 from held for investment to held for sale. In connection with the August 2016 Real Estate Loan Sale, we sold a portfolio of second lien mortgage loans with a carrying value of $250 million and recorded a net loss in other revenues of $4 million . We did not have any other material transfer activity to or from finance receivables held for sale during 2017 , 2016 or 2015 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type were as follows: (dollars in millions) Cost/ Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 28 $ — $ — $ 28 Obligations of states, municipalities, and political subdivisions 135 — — 135 Certificates of deposit and commercial paper 60 — — 60 Non-U.S. government and government sponsored entities 126 — (1 ) 125 Corporate debt 941 12 (5 ) 948 Mortgage-backed, asset-backed, and collateralized: RMBS 100 — (1 ) 99 CMBS 88 — (1 ) 87 CDO/ABS 96 — — 96 Total bonds 1,574 12 (8 ) 1,578 Preferred stock (a) 15 — (1 ) 14 Common stock (a) 21 2 — 23 Other long-term investments 1 — — 1 Total (b) $ 1,611 $ 14 $ (9 ) $ 1,616 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016 , which is classified as a restricted investment and carried at cost. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Value Unrealized Losses * Fair Value Unrealized Losses * Fair Value Unrealized Losses December 31, 2017 Bonds: U.S. government and government sponsored entities $ 21 $ — $ 3 $ — $ 24 $ — Obligations of states, municipalities, and political subdivisions 65 — 20 — 85 — Non-U.S. government and government sponsored entities 89 (1 ) 13 — 102 (1 ) Corporate debt 387 (3 ) 93 (2 ) 480 (5 ) RMBS 40 — 25 (1 ) 65 (1 ) CMBS 40 — 38 (1 ) 78 (1 ) CDO/ABS 48 — 26 — 74 — Total bonds 690 (4 ) 218 (4 ) 908 (8 ) Preferred stock 3 — 7 (1 ) 10 (1 ) Common stock 3 — — — 3 — Other long-term investments 1 — — — 1 — Total $ 697 $ (4 ) $ 225 $ (5 ) $ 922 $ (9 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. On a lot basis, we had 1,369 and 1,331 investment securities in an unrealized loss position at December 31, 2017 and 2016 , respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at December 31, 2017 , we had no plans to sell any investment securities with unrealized losses, and we believe it is more likely than not that we would not be required to sell such investment securities before recovery of their amortized cost. We continue to monitor unrealized loss positions for potential impairments. During 2017 , we did not recognize any other-than-temporary impairment credit losses on available-for-sale securities in investment revenues. During each of the 2016 and 2015 periods, other-than-temporary impairment credit losses were immaterial. There were no material additions or reductions in the cumulative amount of credit losses (recognized in earnings) on other-than-temporarily impaired available-for-sale securities for the 2017 , 2016 , and 2015 periods. The proceeds of available-for-sale securities sold or redeemed and the resulting net realized gains were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Proceeds from sales and redemptions $ 508 $ 518 $ 429 Realized gains $ 15 $ 16 $ 15 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 14 $ 15 $ 14 Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 224 $ 225 Due after 1 year through 5 years 530 531 Due after 5 years through 10 years 335 334 Due after 10 years 207 200 Mortgage-backed, asset-backed, and collateralized securities 282 284 Total $ 1,578 $ 1,574 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 $537 million and $465 million at December 31, 2017 and 2016, respectively. TRADING AND OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) December 31, 2017 2016 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 68 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 74 93 Preferred stock 6 6 Total $ 80 $ 99 The mark-to-market and net 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, 2017 2016 2015 Mark-to-market gains (losses) on trading and other securities held at year end $ (1 ) $ 1 $ — Net realized gains (losses) on trading and other securities sold or redeemed during the year — 7 (3 ) Total $ (1 ) $ 8 $ (3 ) Other securities are those securities for which the fair value option was elected. Our remaining trading securities were sold in the first quarter of 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets GOODWILL Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 Balance at beginning of period $ 1,422 $ 1,440 Adjustments to purchase price allocation* — (18 ) Balance at end of period $ 1,422 $ 1,422 * See Note 2 for details regarding this transaction. Goodwill was recorded at the OMFH subsidiary level. We did not record any impairments to goodwill during 2017 and 2016. 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, 2017 Customer relationships $ 223 $ (92 ) $ 131 Trade names 220 — 220 VOBA 141 (90 ) 51 Licenses 37 — 37 Other 12 (12 ) — Total $ 633 $ (194 ) $ 439 December 31, 2016 Customer relationships $ 223 $ (58 ) $ 165 Trade names 220 — 220 VOBA 141 (74 ) 67 Licenses 37 — 37 Other 12 (10 ) 2 Total $ 633 $ (142 ) $ 491 Amortization expense totaled $52 million in 2017, $70 million in 2016, and $16 million in 2015. The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2018 $ 42 2019 39 2020 38 2021 32 2022 3 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Other Assets | Other Assets Components of other assets were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets $ 139 $ 180 Ceded insurance reserves 95 102 Prepaid expenses and deferred charges 89 89 Fixed assets, net 67 128 Other investments 29 52 Current tax receivable 13 20 Cost basis investments 11 11 Receivables from parent and affiliates 4 76 Other 34 32 Total $ 481 $ 690 * Fixed assets were net of accumulated depreciation of $120 million at December 31, 2017 and $247 million at December 31, 2016 . The decrease in fixed assets is primarily related to the contribution of SFMC in the form of a dividend. See Note 12 for more information regarding this transaction. |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Transactions with Affiliates | Transactions with Affiliates SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017 , 2016 , and 2015 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for our investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017 , 2016 , and 2015 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. See Note 2 for more information regarding this transaction. Related Party Transactions AFFILIATE LENDING Note Receivable from Parent 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 2018 and does not expect to demand payment from SFI in 2018 . The note receivable from SFI totaled $391 million at December 31, 2017 and $285 million at December 31, 2016 . The interest rate for the UPB is the lender’s cost of funds rate, which was 5.87% at December 31, 2017 . Interest revenue on the note receivable from SFI totaled $23 million during 2017 , $19 million during 2016 , and $15 million during 2015 , which we report in interest income on notes receivable from parent and affiliates. INTERCOMPANY AGREEMENTS Dividend of SFMC to SFI On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million , respectively, on the contribution date. The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition. Agreements with OGSC OGSC, as successor to SFMC and SGSC, is a party to the following three intercompany agreements: Services Agreement. OGSC provides the following services to various affiliates under a service agreement: 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 to OGSC are equal to 100% of the allocated cost of providing the services. We believe these allocations are reasonable among the entities receiving the services. In addition to the services noted above, OGSC assumed the services provided by SFMC, which primarily consist of providing operating staff and field management for our branches. During 2017 , 2016 , and 2015 , we recorded $460 million , $243 million , and $224 million , respectively, of service fee expenses, which are included in other operating expenses. License Agreement. As a result of the merger of SFMC and SGSC noted above, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated. The monthly license fee payable by SGSC for its use of the information technology systems and software was 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 was 100% of the actual costs incurred by SFMC. Amounts recorded by us under this license agreement totaled $1 million in 2017 and $6 million in 2016 and 2015 , respectively, and are included as a contra expense to other operating expenses. Building Lease Agreement. In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement whereby SFMC leased six of its buildings to SGSC for an annual rental amount of $4 million , plus additional rental amounts to cover other charges, was terminated effective April 5, 2017. As a result, SFMC’s rent charged to SGSC was $1 million during 2017 and $4 million during 2016 and 2015, respectively, which is included as a contra expense to other operating expenses. Agreements with OCLI Loan Referral Fees. OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During 2017 and 2016, these fees were $56 million and $17 million , respectively. Certain costs incurred by OCLI to provide these services are included in deferred origination costs. Loan Purchase and Sale Agreements. From time to time, OCLI enters into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sells certain personal loans and continues to service the loans. During the fourth quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $2 million for an aggregate purchase price of $2 million . OCLI does not service these loans. During the third quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $4 million for an aggregate purchase price of $4 million . OCLI does not service these loans. During the second quarter of 2016, OCLI had sold personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . OCLI continues to service these loans. During 2017 and 2016 , SFC recorded $2 million and $3 million , respectively, of service fee expenses for these personal loans. See Note 10 and Note 16 regarding receivables and payables from affiliates and parent. Capital Contribution to SFC During 2015, Independence received a capital contribution of $1.1 billion from OMH in connection with the OneMain Acquisition. In conjunction with the retrospective inclusion of Independence in the financial results of the Company as described in Footnote 2 above, we have reflected this capital contribution as a contribution to the Company. During 2016, SFC received a capital contribution of $10 million from SFI to satisfy an interest payment required by the Junior Subordinated Debenture. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with Affiliates SUBSERVICING AGREEMENT Nationstar subservices the real estate loans of certain of our indirect subsidiaries. Investment funds managed by affiliates of Fortress indirectly own a majority interest in Nationstar. The subservicing fees paid to Nationstar were immaterial in 2017 , 2016 , and 2015 . INVESTMENT MANAGEMENT AGREEMENT Logan Circle provides investment management services for our investments. Logan Circle was a wholly owned subsidiary of Fortress. On September 15, 2017, Fortress sold its interest in Logan Circle to MetLife, and Logan Circle is no longer an affiliate of Fortress. Costs and fees incurred for these investment management services were immaterial in 2017 , 2016 , and 2015 . SALE OF EQUITY INTEREST IN SPRINGCASTLE JOINT VENTURE On March 31, 2016, we sold our 47% equity interest in the SpringCastle Joint Venture, which owns the SpringCastle Portfolio, to certain subsidiaries of NRZ and Blackstone. NRZ is managed by an affiliate of Fortress. See Note 2 for more information regarding this transaction. Related Party Transactions AFFILIATE LENDING Note Receivable from Parent 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 2018 and does not expect to demand payment from SFI in 2018 . The note receivable from SFI totaled $391 million at December 31, 2017 and $285 million at December 31, 2016 . The interest rate for the UPB is the lender’s cost of funds rate, which was 5.87% at December 31, 2017 . Interest revenue on the note receivable from SFI totaled $23 million during 2017 , $19 million during 2016 , and $15 million during 2015 , which we report in interest income on notes receivable from parent and affiliates. INTERCOMPANY AGREEMENTS Dividend of SFMC to SFI On April 10, 2017, SFMC, a former subsidiary of SFC, was contributed to SFI in the form of a dividend. SFI then contributed SFMC and SGSC to OMH, SFMC merged into SGSC, which was renamed and is now OGSC. As a result of the dividend, the Company’s total shareholder equity and total assets were reduced by $38 million and $65 million , respectively, on the contribution date. The contribution was the result of the continuing integration process, and part of a series of corporate consolidation transactions surrounding the OneMain Acquisition. Agreements with OGSC OGSC, as successor to SFMC and SGSC, is a party to the following three intercompany agreements: Services Agreement. OGSC provides the following services to various affiliates under a service agreement: 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 to OGSC are equal to 100% of the allocated cost of providing the services. We believe these allocations are reasonable among the entities receiving the services. In addition to the services noted above, OGSC assumed the services provided by SFMC, which primarily consist of providing operating staff and field management for our branches. During 2017 , 2016 , and 2015 , we recorded $460 million , $243 million , and $224 million , respectively, of service fee expenses, which are included in other operating expenses. License Agreement. As a result of the merger of SFMC and SGSC noted above, the license agreement, whereby SFMC leased its information technology systems and software and other related equipment to SGSC, was terminated. The monthly license fee payable by SGSC for its use of the information technology systems and software was 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 was 100% of the actual costs incurred by SFMC. Amounts recorded by us under this license agreement totaled $1 million in 2017 and $6 million in 2016 and 2015 , respectively, and are included as a contra expense to other operating expenses. Building Lease Agreement. In contemplation of the merger of SFMC and SGSC noted above, the building lease agreement whereby SFMC leased six of its buildings to SGSC for an annual rental amount of $4 million , plus additional rental amounts to cover other charges, was terminated effective April 5, 2017. As a result, SFMC’s rent charged to SGSC was $1 million during 2017 and $4 million during 2016 and 2015, respectively, which is included as a contra expense to other operating expenses. Agreements with OCLI Loan Referral Fees. OCLI provides personal loan application processing and credit underwriting services on behalf of SFC for personal loan applications that are submitted online. SFC is charged a fee of $35 for each underwritten approved application processed, as well as any other fees agreed to by the parties. During 2017 and 2016, these fees were $56 million and $17 million , respectively. Certain costs incurred by OCLI to provide these services are included in deferred origination costs. Loan Purchase and Sale Agreements. From time to time, OCLI enters into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sells certain personal loans and continues to service the loans. During the fourth quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $2 million for an aggregate purchase price of $2 million . OCLI does not service these loans. During the third quarter of 2017, OCLI entered into loan purchase and sale agreements with certain subsidiaries of SFC pursuant to which OCLI sold certain personal loans with an aggregate UPB at the time of sale of $4 million for an aggregate purchase price of $4 million . OCLI does not service these loans. During the second quarter of 2016, OCLI had sold personal loans with an aggregate UPB at the time of sale of $89 million for an aggregate purchase price of $89 million . OCLI continues to service these loans. During 2017 and 2016 , SFC recorded $2 million and $3 million , respectively, of service fee expenses for these personal loans. See Note 10 and Note 16 regarding receivables and payables from affiliates and parent. Capital Contribution to SFC During 2015, Independence received a capital contribution of $1.1 billion from OMH in connection with the OneMain Acquisition. In conjunction with the retrospective inclusion of Independence in the financial results of the Company as described in Footnote 2 above, we have reflected this capital contribution as a contribution to the Company. During 2016, SFC received a capital contribution of $10 million from SFI to satisfy an interest payment required by the Junior Subordinated Debenture. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 14,878 $ 15,436 $ 13,787 $ 14,340 Junior subordinated debt 172 189 172 158 Total $ 15,050 $ 15,625 $ 13,959 $ 14,498 Weighted average effective interest rates on long-term debt by type were as follows: Years Ended December 31, At December 31, 2017 2016 2015 2017 2016 Senior debt 5.73 % 5.60 % 6.56 % 5.56 % 5.80 % Junior subordinated debt 6.41 12.26 12.26 6.37 12.26 Total 5.74 5.67 6.65 5.57 5.88 Principal maturities of long-term debt (excluding projected repayments on securitizations and revolving conduit facilities by period) by type of debt at December 31, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.94% 5.25% - 8.25% 3.11% 2018 — 700 — 700 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 1,175 350 1,525 Securitizations (b) 8,711 — — 8,711 Total principal maturities $ 8,711 $ 6,316 $ 350 $ 15,377 Total carrying amount $ 8,688 $ 6,190 $ 172 $ 15,050 Debt issuance costs (c) $ (24 ) $ (30 ) $ — $ (54 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 14 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 $20 million at December 31, 2017 and are reported in other assets. SFC’s Medium-Term Note Issuances 5.625% Senior Notes Due 2023 On December 8, 2017, SFC issued $875 million aggregate principal amount of 5.625% Senior Notes due 2023 (the “ 5.625% SFC Notes”) under an Indenture dated as of December 3, 2014 (the “SFC Base Indenture”), as supplemented by a Fourth Supplemental Indenture dated as of December 8, 2017 (the “SFC Fourth Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 5.625% SFC Notes on an unsecured basis. SFC used a portion of the net proceeds from the sale of the 5.625% SFC Notes to repay at maturity approximately $557 million aggregate principal amount of its existing 6.90% Medium-Term Notes. SFC intends to use the remaining net proceeds from the sale of the 5.625% SFC Notes for general corporate purposes, which may include additional debt repurchases and repayments. 6.125% Senior Notes Due 2022 On May 15, 2017, SFC issued $500 million aggregate principal amount of 6.125% Senior Notes due 2022 (the “2022 SFC Notes”) under the SFC Base Indenture, as supplemented by a Third Supplemental Indenture, dated as of May 15, 2017 (the “SFC Third Supplemental Indenture”), pursuant to which OMH provided a guarantee of the 2022 SFC Notes on an unsecured basis. On May 30, 2017, SFC issued and sold $500 million aggregate principal amount of additional 2022 SFC Notes (the “Additional SFC Notes”) in an add-on offering. The initial 2022 SFC Notes and the Additional SFC Notes (collectively, the “ 6.125% SFC Notes”), are treated as a single class of debt securities and have the same terms, other than the issue date and the issue price. SFC used a portion of the net proceeds from the sale of the Additional SFC Notes to repurchase approximately $466 million aggregate principal amount of its existing 6.90% Senior Notes due 2017 at a premium to par. SFC used the remaining net proceeds from the sale of the 6.125% SFC Notes for general corporate purposes. 8.25% Senior Notes Due 2020 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 the SFC Base Indenture, as supplemented by a Second Supplemental Indenture, dated as of April 11, 2016 (the “SFC Second Supplemental Indenture” and, collectively with the SFC Base Indenture and the SFC First Supplemental Indenture, the SFC Third Supplemental Indenture, and the SFC Fourth Supplemental Indenture thereto, the “Indenture”), pursuant to which OMH provided a guarantee of the 8.25% SFC notes on an unsecured basis. SFC used a portion of the proceeds from the sale of the 8.25% SFC Notes to repurchase approximately $600 million aggregate principal amount of its existing senior notes that were scheduled to mature in 2017, at a premium to principal amount from certain beneficial owners, and certain of those beneficial owners purchased new 8.25% SFC Notes in the offering. SFC used the remaining net proceeds for general corporate purposes. The 5.625% SFC Notes, 6.125% SFC Notes and 8.25% SFC Notes are SFC’s senior unsecured obligations and rank equally in right of payment to all of SFC’s other existing and future unsubordinated indebtedness from time to time outstanding. The notes are effectively subordinated to all of SFC’s secured obligations to the extent of the value of the assets securing such obligations and structurally subordinated to any existing and future obligations of SFC’s subsidiaries with respect to claims against the assets of such subsidiaries. The notes may be redeemed at any time and from time to time, at the option of SFC, in whole or in part at a “make-whole” redemption price specified in the Indenture. The notes will not have the benefit of any sinking fund. The Indenture contain 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 SFC Notes to become, or to be declared, due and payable. GUARANTY AGREEMENTS 5.625% SFC Notes On December 8, 2017, OMH entered into the SFC Fourth Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.625% SFC Notes. As of December 31, 2017 , $875 million aggregate principal amount of the 5.625% SFC Notes were outstanding. 6.125% SFC Notes On May 15, 2017, OMH entered into the SFC Third Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 6.125% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 6.125% SFC Notes were outstanding. 8.25% SFC Notes On April 11, 2016, OMH entered into the SFC Second Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 8.25% SFC Notes. As of December 31, 2017 , $1.0 billion aggregate principal amount of the 8.25% SFC Notes were outstanding. 5.25% SFC Notes On December 3, 2014, OMH entered into the SFC Base Indenture and the SFC First Supplemental Indenture, pursuant to which it agreed to fully and unconditionally guarantee, on a senior unsecured basis, the payments of principal, premium (if any) and interest on the 5.25% SFC Notes. As of December 31, 2017 , $700 million aggregate principal amount of the 5.25% SFC Notes were outstanding. Other SFC Notes On December 30, 2013, OMH entered into SFC Guaranty Agreements whereby it agreed to fully and unconditionally guarantee the payments of principal, premium (if any) and interest on the Other SFC Notes. The Other SFC Notes consist of the following: • 8.25% Senior Notes due 2023 • 7.75% Senior Notes due 2021 • 6.00% Senior Notes due 2020; and • the Junior Subordinated Debenture; The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. On December 30, 2013, OMH entered into the SFC Trust Guaranty Agreement whereby it agreed to fully and unconditionally guarantee the related payment obligations under the trust preferred securities. As of December 31, 2017 , approximately $1.6 billion aggregate principal amount of the Other SFC Notes were outstanding. The OMH guarantees of SFC’s long-term debt discussed above are subject to customary release provisions. OMFH 6.75% Notes and 7.25% Notes Indenture On December 11, 2014, OMFH and certain of its subsidiaries entered into the OMFH Indenture, among OMFH, the guarantors listed therein and The Bank of New York Mellon, as trustee, in connection with OMFH’s issuance of the OMFH Notes. The OMFH Notes are OMFH’s unsecured senior obligations, guaranteed on a senior unsecured basis by each of its wholly owned domestic subsidiaries, other than certain subsidiaries, including its insurance subsidiaries and securitization subsidiaries. As of December 31, 2017, $1.5 billion aggregate principal amount of the OMFH Notes were outstanding. On November 8, 2016, OMH entered into the OMFH Second Supplemental Indenture, pursuant to which OMH agreed to fully, unconditionally and irrevocably guarantee the outstanding OMFH Notes in accordance with and subject to the terms of the OMFH Indenture. Further, as permitted by the terms of the OMFH Indenture, OMFH intends to satisfy its reporting obligations under the OMFH Indenture with respect to providing OMFH financial information to the holders of the OMFH Notes by furnishing financial information relating to the Company. On December 8, 2017, OMFH provided notice to note holders to redeem all $700 million outstanding principal amount of the 2019 OMFH Notes on January 8, 2018, at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. See Note 25 for more detail on this redemption. The OMH guarantees of OMFH’s long-term debt discussed above are subject to customary release provisions. DEBT COVENANTS SFC Debt Agreements The debt agreements to which SFC and its subsidiaries are a party include customary terms and conditions, including covenants and representations and warranties. Some or all of these agreements also contain certain restrictions, including (i) restrictions on the ability to create senior liens on property and assets in connection with any new debt financings and (ii) SFC’s ability to sell or convey all or substantially all of its assets, unless the transferee assumes SFC’s obligations under the applicable debt agreement. 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, 2017 , SFC was in compliance with all of the covenants under its debt agreements. Junior Subordinated Debenture In January of 2007, SFC issued the Junior Subordinated Debenture, consisting of $350 million aggregate principal amount of 60 -year junior subordinated debt. The Junior Subordinated Debenture underlies the trust preferred securities sold by a trust sponsored by SFC. SFC can redeem the Junior Subordinated Debenture at par beginning in January of 2017. Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . Pursuant to the terms of the Junior Subordinated Debenture, SFC, upon the occurrence of a mandatory trigger event, is required to defer interest payments to the holders of the Junior Subordinated 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 Junior Subordinated Debenture otherwise payable on the next interest payment date and pays such amount to the holders of the Junior Subordinated 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 December 31, 2017, a mandatory trigger event did not occur with respect to the interest payment due in January of 2018, as SFC was in compliance with both required ratios discussed above. OMFH Debt Agreements None of OMFH’s debt agreements require OMFH or any of its subsidiaries to meet or maintain any specific financial targets or ratios. However, the OMFH Indenture does contain a number of covenants that limit, among other things, OMFH’s ability and the ability of most of its subsidiaries to incur additional debt; create liens securing certain debt; pay dividends on or make distributions in respect of its capital stock or make investments or other restricted payments; create restrictions on the ability of its restricted subsidiaries to pay dividends to OMFH or make certain other intercompany transfers; sell certain assets; consolidate, merge, sell or otherwise dispose of all or substantially all of its assets; and enter into certain transactions with affiliates. The OMFH Indenture also contains customary events of default which would permit the trustee or the holders of the OMFH Notes to declare the OMFH Notes to be immediately due and payable if not cured within applicable grace periods, including the nonpayment of principal, interest or premium, if any, when due; violation of covenants and other agreements contained in the OMFH Indenture; payment default after final maturity or cross acceleration of certain material debt; certain bankruptcy and insolvency events; material judgment defaults; and the failure of any guarantee of the notes, other than in accordance with the terms of the OMFH Indenture or such guarantee. On November 8, 2016, OMH agreed to fully, unconditionally, and irrevocably guarantee the OMFH Notes. As of December 31, 2017, OMFH was in compliance with all of the covenants under its debt agreements. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities CONSOLIDATED VIES As part of our overall funding strategy and as part of our efforts to support our liquidity from sources other than our traditional capital market sources, we have transferred certain finance receivables to VIEs for asset-backed financing transactions, including securitization and conduit transactions. We have determined that SFC or OMFH is the primary beneficiary of these VIEs and, as a result, we include each VIE’s assets, including any finance receivables securing the VIE’s debt obligations, and related liabilities in our consolidated financial statements and each VIE’s asset-backed debt obligations are accounted for as secured borrowings. SFC or OMFH is deemed to be the primary beneficiary of each VIE because SFC or OMFH, as applicable, has the ability to direct the activities of the VIE that most significantly impact its economic performance, including the losses it absorbs and its right to receive economic benefits that are potentially significant. Such ability arises from SFC’s or OMFH’s and their affiliates’ contractual right to service the finance receivables securing the VIEs’ debt obligations. To the extent we retain any debt obligation or residual interest in an asset-backed financing facility, we are exposed to potentially significant losses and potentially significant returns. The asset-backed debt obligations issued by the VIEs are supported by the expected cash flows from the underlying finance receivables securing such debt obligations. Cash inflows from these finance receivables are distributed to repay the debt obligations and related service providers in accordance with each transaction’s contractual priority of payments, referred to as the “waterfall.” The holders of the asset-backed debt obligations have no recourse to the Company if the cash flows from the underlying finance receivables securing such debt obligations are not sufficient to pay all principal and interest on the asset-backed debt obligations. With respect to any asset-backed financing transaction that has multiple classes of debt obligations, substantially all cash inflows will be directed to the senior debt obligations until fully repaid and, thereafter, to the subordinate debt obligations on a sequential basis. We retain an interest and credit risk in these financing transactions through our ownership of the residual interest in each VIE and, in some cases, the most subordinate class of debt obligations issued by the VIE, which are the first to absorb credit losses on the finance receivables securing the debt obligations. In addition, with respect to each financing transaction that is subject to the risk retention requirements of Section 941 of the Dodd-Frank Act, we retain at least 5% of the balance of each class of debt obligations and at least 5% of the residual interest in each VIE which, collectively, represents 5% of the economic interest in the credit risk of the securitized assets in satisfaction of the risk retention requirements. We expect that any credit losses in the pools of finance receivables securing the asset-backed debt obligations will likely be limited to our retained interests described above. 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, 2017 2016 Assets Cash and cash equivalents $ 4 $ 3 Finance receivables: Personal loans 9,769 9,509 Allowance for finance receivable losses 465 501 Restricted cash and restricted cash equivalents 482 552 Other assets 20 14 Liabilities Long-term debt $ 8,688 $ 8,240 Other liabilities 15 16 SECURITIZED BORROWINGS Each of our securitizations contains a revolving period ranging from one to five years during which no principal payments are required to be made on the related asset-backed notes, except for the ODART 2016-1 securitization which has no revolving period. The indentures governing our securitization borrowings contain early amortization events and events of default, that, if triggered, may result in the acceleration of the obligation to pay principal and interest on the related asset-backed notes. Our securitized borrowings at December 31, 2017 consisted of the following: (dollars in millions) Issue Amount * Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 1,163 3.47 % 3 years 02/26/2015 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/2015 05/2028 SLFT 2016-A (a) 532 500 3.10 % 2 years 12/14/2016 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/2017 07/2030 OMFIT 2014-2 1,185 320 4.16 % 2 years 07/30/2014 09/2024 OMFIT 2015-1 1,229 1,229 3.74 % 3 years 02/05/2015 03/2026 OMFIT 2015-2 1,250 750 3.40 % 2 years 05/21/2015 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/2015 11/2028 OMFIT 2016-1 (c) 500 459 4.01 % 3 years 02/10/2016 02/2029 OMFIT 2016-2 (d) 890 816 4.50 % 2 years 03/23/2016 03/2028 OMFIT 2016-3 (e) 350 317 4.33 % 5 years 06/07/2016 06/2031 OMFIT 2017-1 (f) 947 900 2.66 % 2 years 09/06/2017 09/2032 Total consumer securitizations 7,680 Auto Securitization: ODART 2016-1 (g) 754 188 2.91 % — 07/19/2016 Various ODART 2017-1 (h) 300 268 2.61 % 1 year 02/01/2017 Various ODART 2017-2 (i) 605 575 2.63 % 1 year 12/11/2017 Various Total auto securitizations 1,031 Total secured structured financings $ 8,711 * Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts. (a) SLFT 2016-A Securitization. We initially retained $ 32 million of the asset-backed notes. (b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (c) OMFIT 2016-1 Securitization. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes. (f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (g) ODART 2016-1 Securitization. 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. (h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. (i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes. Call of 2014-A Notes. On February 15, 2017, we exercised our right to redeem the 2014-A Notes for a redemption price of $188 million , which excluded $33 million for the Class D Notes owned by Twenty First Street Funding, LLC, a wholly owned subsidiary of SFC, on February 15, 2017, the date of the optional redemption. The outstanding principal balance of the asset-backed notes was $221 million on the date of the optional redemption. Call of 2014-1 Notes. On November 20, 2017, we exercised our right to redeem the 2014-1 Notes for a redemption price of $81 million . The outstanding principal balance of the asset-backed notes was $81 million on the date of the optional redemption. REVOLVING CONDUIT FACILITIES As of December 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End Backed by Loans Acquired from Subsidiaries of Due and Payable (a) First Avenue Funding, LLC $ 250 $ — June 2018 SFC - auto loans (b) Seine River Funding, LLC 500 — December 2019 SFC - personal loans December 2022 OneMain Financial B6 Warehouse Trust 600 — February 2019 OMFH - personal loans February 2021 Rocky River Funding, LLC 250 — September 2019 OMFH - personal loans October 2020 OneMain Financial Funding VII, LLC 650 — October 2019 OMFH - personal loans November 2021 Thur River Funding, LLC 350 — June 2020 SFC - personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 OMFH - personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 SFC - personal loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 SFC - auto loans October 2021 OneMain Financial Auto Funding I, LLC 750 — October 2020 OMFH - auto loans November 2027 Total $ 5,050 $ — (a) The date following the revolving period, that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full. (b) For First Avenue Funding, LLC, 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 Funding, LLC. During the 2017 period we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above: Termination Date Midbrook 2013-VFN1 Trust 4/13/2017 OneMain Financial B5 Warehouse Trust 4/13/2017 Sumner Brook 2013-VFN1 Trust 6/29/2017 Whitford Brook 2014-VFN1 Trust 7/14/2017 OneMain Financial B3 Warehouse Trust 7/14/2017 Springleaf 2013-VFN1 Trust 9/28/2017 Second Avenue Funding LLC 9/29/2017 OneMain Financial B4 Warehouse Trust 11/8/2017 VIE INTEREST EXPENSE Other than our retained interest in certain debt obligations issued by VIEs 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 $323 million in 2017 , $341 million in 2016 , and $216 million in 2015 . 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, 2017 | |
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, 2017 2016 Finance receivable related: Payable to OMH: Unearned premium reserves 515 508 Claim reserves 75 78 Subtotal (a) 590 586 Payable to third-party beneficiaries: Unearned premium reserves 99 98 Benefit reserves 103 105 Claim reserves 18 20 Subtotal (b) 220 223 Non-finance receivable related: Unearned premium reserves 81 86 Benefit reserves 375 388 Claim reserves 61 60 Subtotal (b) 517 534 Total $ 1,327 $ 1,343 (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 $325 million and $333 million at December 31, 2017 and 2016 , respectively. Reserves related to unearned premiums, claims and benefits ceded to non-affiliated insurance companies totaled $95 million and $102 million at December 31, 2017 and 2016, respectively. 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, 2017 2016 2015 Balance at beginning of period $ 158 $ 177 $ 70 Less reinsurance recoverables (26 ) (26 ) (22 ) Net balance at beginning of period 132 151 48 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition — — 104 Additions for losses and loss adjustment expenses incurred to: Current year 188 203 83 Prior years * 5 (20 ) 5 Total 193 183 88 Reductions for losses and loss adjustment expenses paid related to: Current year (115 ) (124 ) (63 ) Prior years (78 ) (78 ) (26 ) Total (193 ) (202 ) (89 ) Foreign currency translation adjustment (1 ) — — Net balance at end of period 131 132 151 Plus reinsurance recoverables 23 26 26 Balance at end of period $ 154 $ 158 $ 177 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017 , primarily due to an unfavorable development on previously disclosed property and casualty policies and an unfavorable development on certain assumed credit disability policies (ii) a redundancy in the prior years’ net reserves of $20 million at December 31, 2016 primarily due to credit disability and credit involuntary unemployment insurance claims developing more favorably than anticipated, and (iii) a shortfall in the prior years’ net reserves of $5 million at December 31, 2015 primarily resulting from increased estimates for claims incurred in prior years as claims have developed. Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: At December 31, 2017 (dollars in millions) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2013 $ 140 $ 127 $ 125 $ 124 $ 124 — 50,295 2.7 % 2014 — 145 132 130 131 3 51,776 2.7 % 2015 — — 138 129 129 8 52,505 2.8 % 2016 — — — 138 135 20 51,558 2.8 % 2017 — — — — 136 59 39,329 2.2 % Total $ 655 (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, 2017 , were as follows: (dollars in millions) 2013 * 2014 * 2015 * 2016 * 2017 Credit Insurance Accident Year 2013 $ 68 $ 105 $ 115 $ 121 $ 124 2014 — 71 110 121 128 2015 — — 71 109 121 2016 — — — 75 115 2017 — — — — 77 Total $ 565 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 90 * 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, 2017 2016 * 2015 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 90 $ 96 $ 105 Other short-duration insurance lines 22 20 25 Total 112 116 130 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 20 22 22 Insurance lines other than short-duration 22 20 25 Total gross liability for unpaid claims and claim adjustment expense $ 154 $ 158 $ 177 * 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 2017 . Our average annual percentage payout of incurred claims by age, net of reinsurance, as of December 31, 2017 , were as follows: Years 1 2 3 4 5 Credit insurance 55.4 % 29.4 % 8.9 % 4.8 % 2.5 % STATUTORY ACCOUNTING Springleaf and OneMain insurance subsidiaries file financial statements prepared using statutory accounting practices prescribed or permitted by the Indiana DOI and the Texas DOI, respectively, 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, 2017 2016 2015 Property and casualty Yosemite $ 19 $ 11 $ 15 Triton 31 14 3 Life and health Merit $ 37 $ 20 $ (1 ) AHL 34 71 11 Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2017 2016 Property and casualty Yosemite $ 42 $ 63 Triton 170 139 Life and health Merit $ 79 $ 133 AHL 130 215 Springleaf and OneMain insurance companies are also subject to risk-based capital requirements adopted by the Indiana DOI and the Texas DOI, respectively. Minimum statutory capital and surplus is the risk-based capital level that would trigger regulatory action. At December 31, 2017 and 2016 , our insurance subsidiaries’ statutory capital and surplus exceeded the risk-based capital minimum required levels. DIVIDEND RESTRICTIONS Our insurance subsidiaries are subject to state regulations that limit their ability to pay dividends. State law restricts the amounts that Merit and Yosemite may pay as dividends without prior notice to the Indiana DOI and the amounts that AHL and Triton may pay as dividends without prior notice to the Texas DOI. The maximum amount of dividends, referred to as “ordinary dividends,” for an Indiana or Texas domiciled life insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end; or (ii) the statutory net gain from operations as of the prior year-end. Any amount greater must be approved by the Indiana DOI or Texas DOI prior to its payment. The maximum ordinary dividends for an Indiana or Texas domiciled property and casualty insurance company that can be paid without prior approval in a 12 month period (measured retrospectively from the date of payment) is the greater of: (i) 10% of policyholders’ surplus as of the prior year-end or (ii) the statutory net income. Any amount greater must be approved by the Indiana DOI or Texas DOI prior to its payment. These approved dividends are called “extraordinary dividends.” AHL and Triton paid extraordinary dividends to OMFH totaling $111 million during 2017, $105 million during 2016 and $68 million of ordinary dividends subsequent to the effective closing of the OneMain Acquisition in 2015. Merit and Yosemite paid extraordinary dividends to SFC totaling $125 million , $63 million , and $100 million during 2017, 2016, and 2015, respectively. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | Other Liabilities Components of other liabilities were as follows: (dollars in millions) December 31, 2017 2016 Payables to parent and affiliates * $ 189 $ 39 Accrued expenses and other liabilities 79 93 Accrued interest on debt 58 61 Salary and benefit liabilities 31 45 Insurance liabilities 12 14 Loan principal warranty reserve 8 14 Retirement plans 5 31 Other 28 43 Total $ 410 $ 340 * Payables to parent and affiliates at December 31, 2017 primarily consisted of payable to OGSC for services provided to SFC under its intercompany service agreements. See Note 12 for further information regarding SFC’s intercompany agreements. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 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, 2017 2016 2017 2016 Shares issued and outstanding — — 10,160,021 10,160,021 During 2016, SFC received capital contributions from SFI totaling $10 million to satisfy interest payments required by SFC’s junior subordinated debenture in respect of SFC’s junior subordinated debt. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Gains (Losses) Available-for-Sale Securities Retirement Plan Liabilities Adjustments Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 14 3 4 21 Reclassification adjustments from accumulated other comprehensive loss (9 ) — — (9 ) Balance at end of period $ 4 $ (1 ) $ 3 $ 6 Year Ended December 31, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 23 15 3 41 Reclassification adjustments from accumulated other comprehensive loss (10 ) — (4 ) (14 ) Balance at end of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive loss (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) 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, 2017 2016 2015 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 14 $ 15 $ 12 Income tax effect (5 ) (5 ) (4 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 9 10 8 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 4 — Total $ 9 $ 14 $ 8 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
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 IRS. AHL, an insurance subsidiary of SFC, is not an eligible company under Internal Revenue Code Section 1504 and therefore, files separate federal life insurance tax returns. Income taxes from the consolidated federal and state tax returns are allocated to our eligible subsidiaries under a tax sharing agreement with OMH. The Company’s foreign subsidiaries/branches file tax returns in Canada, Puerto Rico and the U.S. Virgin Islands. 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, 2017 , the Company had no undistributed foreign earnings. Components of income (loss) before income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Income (loss) before income tax expense (benefit) - U.S. operations $ 380 $ 380 $ (208 ) Income before income tax expense - foreign operations 15 17 12 Total $ 395 $ 397 $ (196 ) Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Current: Federal $ 190 $ 210 $ 80 Foreign 2 1 1 State 8 21 5 Total current 200 232 86 Deferred: Federal 34 (92 ) (192 ) Foreign * — 5 — State 9 (18 ) (16 ) Total deferred 43 (105 ) (208 ) Total $ 243 $ 127 $ (122 ) * Deferred foreign income taxes were less than $1 million during the 2017 and 2015 periods and, therefore, are not quantified in the table above. Expense from foreign income taxes includes foreign subsidiaries/branches that operate in Canada, Puerto Rico and the U.S. Virgin Islands. During the 2016 and 2015 periods, expense from foreign income taxes also included United Kingdom operations. Reconciliations of the statutory federal income tax rate to the effective income tax rate were as follows: Years Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Impact of Tax Act 21.69 — — State income taxes, net of federal 2.63 0.48 7.62 Return to provision adjustment 0.81 0.26 0.89 Excess tax benefit on share-based compensation 0.33 (0.18 ) — Tax impact of United Kingdom subsidiary liquidation — (0.54 ) — Non-controlling interests — (2.49 ) 22.87 Nondeductible compensation — — (2.78 ) Other, net 1.09 (0.66 ) (1.14 ) Effective income tax rate 61.55 % 31.87 % 62.46 % The effective income tax rate for 2017 , 2016 , and 2015 differed from the statutory federal income tax rate primarily due to the recognition of the impact of the Tax Act, effects of the non-controlling interest in the previously owned SpringCastle Portfolio and state income taxes. The effective income 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 statutory federal income tax rate of (2.49)% and 22.87% in 2016 and 2015 , respectively. The difference in the effective income tax rate in 2017 as compared to 2016 is primarily due to the recognition of the impact of the Tax Act which increased our 2017 effective income tax rate by 21.69% as compared to 2016. As a result of the Tax Act we recognized an $81 million tax charge in 2017. This charge is primarily the result of the lower corporate tax rate, which required us to remeasure our net deferred tax asset to reflect the lower corporate tax rate. The difference in the impact on the effective income 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 as compared to 2015 . A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits (all of which would affect the effective income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 16 $ 15 $ 4 Increases in tax positions for current years 1 2 10 Increases in tax positions for prior years — — 4 Lapse in statute of limitations (2 ) (1 ) — Settlements with tax authorities — — (1 ) Decreases in tax positions for prior years — — (2 ) Balance at end of year $ 15 $ 16 $ 15 Our gross unrecognized tax benefits include related interest and penalties. We accrue interest related to uncertain tax positions in income tax expense. The amount of any change in the balance of uncertain tax liabilities over the next 12 months is not expected to be material to our consolidated financial statements. We are currently under examination of our U.S. federal tax return for the years 2011 to 2013 by the IRS. We are also under examination of various states for the years 2011 to 2016. Management believes it has adequately provided for taxes for such years. Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 146 $ 246 State taxes, net of federal 65 58 Mark-to-market 55 55 Pension/employee benefits 5 19 Acquisition costs 6 6 Federal and foreign net operating losses and tax attributes 5 4 Insurance reserves 3 — Legal and warranty reserve 2 6 Other intangibles 2 1 Other 9 9 Total 298 404 Deferred tax liabilities: Debt fair value adjustment 44 90 Goodwill 41 37 Deferred loan fees 14 12 Discount - debt exchange 11 16 Deferred insurance commissions 2 2 Impact of tax accounting method change — 38 Insurance Reserves — 2 Other 5 1 Total 117 198 Net deferred tax assets before valuation allowance 181 206 Valuation allowance (44 ) (29 ) Net deferred tax assets $ 137 $ 177 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. The decrease of our net deferred tax asset is mainly attributable to recording of an adjustment as of December 31, 2017 to reflect the reduction in the U.S. statutory tax rate from 35% to 21% resulting from the Tax Act. 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. At December 31, 2017 , we had state net operating loss carryforwards of $704 million , compared to $750 million at December 31, 2016 . 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 $44 million and $29 million at December 31, 2017 and 2016 , 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, 2017 | |
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 2018 $ 52 2019 40 2020 30 2021 20 2022 11 2023+ 14 Total $ 167 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 $77 million in 2017 , $80 million in 2016 , and $36 million in 2015 . LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the 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 At December 31, 2017 , our reserve for sales recourse obligations totaled $8 million , which primarily related to our real estate loan sales in 2014, with a minimal portion of the reserve related to net charge-off sales of our finance receivables. We did not establish an additional reserve for sales recourse obligations associated with the personal loans sold in the Lendmark Sale or our real estate loan sales in 2016 based on the credit quality of the loans sold and the terms of each transaction. The activity in our reserve for sales recourse obligations was as follows: (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 13 $ 15 $ 24 Recourse losses (1 ) — (2 ) Provision for recourse obligations, net of recoveries * (4 ) (2 ) (7 ) Balance at end of period $ 8 $ 13 $ 15 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. At December 31, 2017 , 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. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans PENSION PLANS As noted in Note 12 Related Party Transactions, the Company contributed SFMC, a former subsidiary of SFC to SFI in the form of a dividend. All assets and liabilities of SFMC were transferred including the net pension liabilities and any other obligations related to the Springleaf Financial Services Retirement Plan, a noncontributory defined benefit plan, the Springleaf Financial Services Excess Retirement Income Plan, an unfunded defined benefit plan, and the Supplemental Executive Retirement Income Plan, an unfunded defined benefit plan, to OMH. The projected net pension obligation related to these plans as of December 31, 2016 was $25 million . The CommoLoCo Retirement Plan, a noncontributory defined benefit plan, which had a projected net pension obligation as of December 31, 2016 of $6 million , was retained by the Company. The CommoLoCo Retirement Plan, which is subject to the provisions of the Puerto Rico tax code, was frozen effective December 31, 2012. 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. The fair value of plan assets net of expense for the CommoLoCo retirement Plan totaled $12 million as of December 31, 2017 and the projected benefit obligation totaled $17 million . The projected net pension obligation related to the CommoLoco Retirement Plan was $5 million . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
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, 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, 2017 , 13,199,096 shares of common stock were reserved for issuance under the Omnibus Plan, including 1,411,236 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 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 2017 , 2016 , and 2015 was $27.85 , $26.14 , and $47.44 , respectively. The total fair value of service-based awards that vested during 2017 , 2016 , and 2015 was $18 million , $10 million , and $7 million , respectively. The following table summarizes the service-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 1,382,920 $ 35.86 Granted 407,184 27.85 Vested (575,322 ) 31.86 Forfeited (73,172 ) 38.10 Unvested at December 31, 2017 1,141,610 34.87 1.91 Performance-based Awards During 2017 , 2016 and 2015 , 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, 2017 . These awards are also subject to a graded vesting period of two years after the attainment of the performance goal or December 31, 2017 , whichever occurs earlier. The remaining PRSUs are subject to separate and independent performance goals for 2017, 2018, and 2019; 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 canceled, and all expense recognized to that date is reversed. Prior to the OneMain Acquisition, none of the performance targets related to certain PRSUs issued in 2014 were deemed probable of occurring. Subsequent to the OneMain Acquisition, the targets were re-evaluated and the 100% performance targets were deemed probable of occurring. Accordingly in 2015, we recorded a cumulative catch-up expense of $6 million , which is included in acquisition-related transaction and integration expenses. During the fourth quarter of 2016, the Compensation Committee determined that the PRSU performance targets were 100% achieved. Accordingly, a portion of the PRSU awards vested immediately, with the remaining shares subject to vesting upon meeting stated service requirements. The weighted average grant date fair value of performance-based awards issued in 2017 and 2015 was $24.98 and $ 34.45 , respectively. No performance shares were granted during 2016. The total fair value of performance-based awards that vested during 2017 and 2016 was $2 million and $4 million , respectively. No performance-based awards vested in 2015 . The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 407,948 $ 25.94 Granted 90,072 24.98 Vested (92,000 ) 24.78 Forfeited (136,394 ) 25.70 Unvested at December 31, 2017 269,626 26.14 3.78 Following the contribution of SFMC to SFI, share-based compensation expense is primarily incurred by OGSC and subsequently allocated to SFC by OMGS. As of December 31, 2017, there was no unrecognized compensation expense. See Note 12 for information regarding the dividend of SFMC to SFI. Total share-based compensation expense, net of forfeitures, for all stock-based awards directly incurred by SFC amounted to $5 million in 2017 , $8 million in 2016 and $2 million in 2015 . The total income tax benefit recognized for stock-based compensation was $2 million in 2017 , $3 million in 2016 and $1 million in 2015 . Initial Stockholder 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 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 in 2015, 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 with a capital contribution offset such that the impact to overall shareholder’s equity was neutral. No expense was recognized for these awards during 2017 or 2016. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments included: • Consumer and Insurance — We originate and service personal loans and offer credit insurance (life insurance, disability insurance, involuntary unemployment insurance, and collateral protection insurance) and non-credit insurance through our branch network and our centralized operations. We also offer home and auto membership plans of an unaffiliated company. Our branch network conducts business in 44 states. Our centralized operations underwrite and process certain loan applications that we receive from our branch network or through an internet portal. If the applicant is located near an existing branch, our centralized operations make the credit decision regarding the application and then request, but do not require, the customer to visit a nearby branch for closing, funding and servicing. If the applicant is not located near a branch, our centralized operations originate the loan. • Acquisitions and Servicing — SFI services the SpringCastle Portfolio. 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. 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. See Note 2 for information regarding the SpringCastle Interest Sale and the acquisition and disposition of the SpringCastle Portfolio. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include (i) our liquidating real estate loan portfolio as discussed below, (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation), (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. The accounting policies of the segments are the same as those disclosed in Note 3 , except as described below. Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). We 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 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and l Consumer and Insurance - receives remainder of unallocated average debt. 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 $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other 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; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in 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: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other 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; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2017 Interest income $ 3,296 $ — $ 23 $ — $ (132 ) $ 3,187 Interest expense 765 — 21 — 30 816 Provision for finance receivable losses 955 — 7 — (15 ) 947 Net interest income (loss) after provision for finance receivable losses 1,576 — (5 ) — (147 ) 1,424 Other revenues (b) 549 — 23 — (32 ) 540 Acquisition-related transaction and integration expenses 66 — 6 — (3 ) 69 Other expenses 1,458 2 11 — 29 1,500 Income (loss) before income tax expense (benefit) $ 601 $ (2 ) $ 1 $ — $ (205 ) $ 395 Assets (c) $ 16,793 $ — $ 680 $ — $ 2,172 $ 19,645 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 3,314 $ 102 $ 51 $ — $ (371 ) $ 3,096 Interest expense 738 20 43 — 55 856 Provision for finance receivable losses 908 14 6 — 1 929 Net interest income (loss) after provision for finance receivable losses 1,668 68 2 — (427 ) 1,311 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues (b) 609 — (16 ) — (6 ) 587 Acquisition related transaction and integration expenses 100 1 27 — (20 ) 108 Other expenses 1,461 16 29 — 54 1,560 Income before income taxes 716 218 (70 ) — (467 ) 397 Income before income tax attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation $ 716 $ 190 $ (70 ) $ — $ (467 ) $ 369 Assets (c) $ 15,783 $ — $ 590 $ — $ 1,967 $ 18,340 At or for the Year Ended December 31, 2015 Interest income $ 1,470 $ 455 $ 76 $ — $ (91 ) $ 1,910 Interest expense 242 87 268 (5 ) 123 715 Provision for finance receivable losses 346 68 (1 ) — 298 711 Net interest income (loss) after provision for finance receivable losses 882 300 (191 ) 5 (512 ) 484 Other revenues 274 5 19 (5 ) (18 ) 275 Acquisition related transaction and integration expenses 16 1 48 — (3 ) 62 Other expenses 768 61 50 — 14 893 Income (loss) before income tax expense (benefit) 372 243 (270 ) — (541 ) (196 ) Income before income tax attributable to non-controlling interests — 127 — — — 127 Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation $ 372 $ 116 $ (270 ) $ — $ (541 ) $ (323 ) Assets $ 15,875 $ 1,784 $ 1,415 $ — $ 2,322 $ 21,396 (a) Real Estate segment has been combined with “Other” for the prior period. (b) Other revenues reported in “Other” primarily includes interest income on the SFC’s note receivable from SFI. See Note 12 for further information on the notes receivable from parent and affiliates. (c) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 12 for further information on the note receivable from parent. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that would be expected to be received if an asset were to be sold or the amount that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or little information is released publicly for the asset or liability being valued. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is listed on an exchange or traded over-the-counter or is new to the market and not yet established, the characteristics specific to the transaction, and general market conditions. 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 presents the carrying amounts and estimated fair values of our financial instruments and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used: Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and cash equivalents $ 904 $ 54 $ — $ 958 $ 958 Investment securities 36 1,654 7 1,697 1,697 Net finance receivables, less allowance for finance receivable losses — — 15,607 15,607 14,217 Finance receivables held for sale — — 139 139 132 Notes receivable from parent — 391 — 391 391 Restricted cash and restricted cash equivalents 498 — — 498 498 Other assets (a) — 4 12 16 16 Liabilities Long-term debt $ — $ 15,625 $ — $ 15,625 $ 15,050 Other liabilities (b) — 189 — 189 189 December 31, 2016 Assets Cash and cash equivalents $ 480 $ 73 $ — $ 553 $ 553 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,857 13,857 13,000 Finance receivables held for sale — — 159 159 153 Notes receivable from parent — 285 — 285 285 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets (a) — 77 34 111 113 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 Other liabilities (b) — 39 — 39 39 (a) Other assets includes commercial mortgage loans, escrow advance receivables, and receivables from parent and affiliates at December 31, 2017 and commercial mortgage loans, escrow advance receivables, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets at December 31, 2016. (b) Consists of payables to parent and affiliates. 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, 2017 Assets Cash equivalents in mutual funds $ 688 $ — $ — $ 688 Cash equivalents in securities — 54 — 54 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 28 — 28 Obligations of states, municipalities, and political subdivisions — 135 — 135 Non-U.S. government and government sponsored entities — 60 — 60 Certificates of deposit and commercial paper — 125 — 125 Corporate debt — 946 2 948 RMBS — 99 — 99 CMBS — 87 — 87 CDO/ABS — 95 1 96 Total bonds — 1,575 3 1,578 Preferred stock 7 7 — 14 Common stock 23 — — 23 Other long-term investments — — 1 1 Total available-for-sale securities (b) 30 1,582 4 1,616 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CMBS — — — — CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 6 — — 6 Total other securities 6 72 2 80 Total investment securities 36 1,654 6 1,696 Restricted cash in mutual funds 484 — — 484 Total $ 1,208 $ 1,708 $ 6 $ 2,922 (a) Due to the insignificant activity within the Level 3 assets during 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 286 $ — $ — $ 286 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 870 $ 1,797 $ 8 $ 2,675 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. We had no transfers between Level 1 and Level 2 during 2017 and 2016 . 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, 2017 Assets Real estate owned $ — $ — $ 6 $ 6 $ 3 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 * The fair value information presented in the table is as of the date the fair value adjustment was recorded. We wrote down certain finance receivables held for sale reported in our Other segment to their fair value during the second quarter of 2016 and recorded the writedowns in other revenues. We wrote down certain real estate owned reported in our Other segment to their fair value less cost to sell during 2017 and 2016 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 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, 2017 and 2016 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2017 December 31, 2016 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 Restricted Cash Equivalents The carrying amount of restricted cash and restricted cash equivalents approximates fair value. Notes Receivable from Parent The carrying amount of the notes receivable from parent 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, 2017 , 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, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Redemption of OMFH 2019 Notes On December 8, 2017, the Company issued a notice of redemption to redeem all $700 million outstanding principal amount of OMFH’s 6.75% Senior Notes due 2019 at a redemption price equal to 103.375% , plus accrued and unpaid interest to the redemption date. The notes were redeemed on January 8, 2018. In connection with the redemption, we recognized approximately $1 million of net loss on repurchases and repayments of debt for the three months ended March 31, 2018. Apollo-Värde Transaction On January 3, 2018, the Apollo-Värde Group entered into a Share Purchase Agreement with the Initial Stockholder and OMH to acquire 54,937,500 shares or approximately 40.6% of the outstanding shares of OMH common stock from the Initial Stockholder, representing the entire holdings of OMH stock beneficially owned by Fortress. This transaction closed June 25, 2018. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Our selected quarterly financial data for 2017 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 853 $ 806 $ 772 $ 756 Interest expense 204 207 203 202 Provision for finance receivable losses 229 242 233 243 Other revenues 139 149 117 135 Other expenses 382 401 386 400 Income before income taxes 177 105 67 46 Income taxes 161 44 20 18 Net income $ 16 $ 61 $ 47 $ 28 Our selected quarterly financial data for 2016 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 766 $ 767 $ 739 $ 824 Interest expense 201 215 214 226 Provision for finance receivable losses 256 261 218 194 Other revenues 138 151 158 307 Other expenses 409 396 416 447 Income before income taxes 38 46 49 264 Income taxes — 16 20 91 Net income 38 30 29 173 Net income attributable to non-controlling interests — — — 28 Net income attributable to Springleaf Finance Corporation $ 38 $ 30 $ 29 $ 145 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | Schedule I — Condensed Financial Information of Registrant SPRINGLEAF FINANCE CORPORATION Condensed Balance Sheets (dollars in millions) December 31, 2017 2016 Assets Cash and cash equivalents $ 148 $ 96 Investment in subsidiaries 7,062 7,107 Notes receivable from parent and affiliates 2,334 1,992 Restricted cash 9 5 Other assets 159 188 Total assets $ 9,712 $ 9,388 Liabilities and Shareholder’s Equity Long-term debt $ 4,824 $ 4,162 Intercompany note payable 436 409 Deferred and accrued taxes 46 164 Other liabilities 1,004 1,380 Total liabilities 6,310 6,115 Shareholder’s equity 3,402 3,273 Total liabilities and shareholder’s equity $ 9,712 $ 9,388 See Notes to Condensed Financial Statements. SPRINGLEAF FINANCE CORPORATION Condensed Statements of Operations and Comprehensive Income (Loss) (dollars in millions) Years Ended December 31, 2017 2016 2015 Interest income on notes receivable from parent and affiliates 131 104 56 Interest expense 430 459 502 Net interest expense (299 ) (355 ) (446 ) Other revenues: Investments 2 1 13 Net loss on repurchases and repayments of debt (26 ) (14 ) — Other revenues 6 4 — Total other revenues (18 ) (9 ) 13 Other expenses 41 9 1 Income (loss) before income tax expense (benefit) (358 ) (373 ) (434 ) Provision for (benefit from) income taxes (118 ) (138 ) (160 ) Equity in undistributed net income (loss) from subsidiaries 392 477 73 Net income (loss) 152 242 (201 ) Other comprehensive income (loss), net of tax 12 27 (36 ) Comprehensive income (loss) $ 164 $ 269 $ (237 ) See Notes to Condensed Financial Statements. SPRINGLEAF FINANCE CORPORATION Condensed Statements of Cash Flows (dollars in millions) Years Ended December 31, 2017 2016 2015 Net cash provided by (used for) operating activities $ (601 ) $ 557 $ 173 Cash flows from investing activities Cash advances on notes receivable with parent and affiliates (4,322 ) (5,827 ) (2,256 ) Payments received on notes receivable with parent and affiliates 3,980 4,683 2,968 Distributions from subsidiaries 413 499 326 Capital contribution to subsidiary (a) — — (3,393 ) Sale of available-for-sale securities — 10 2,306 Net cash provided by (used for) investing activities 71 (635 ) (49 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 1,861 995 — Repayment of long-term debt (1,302 ) (1,020 ) (798 ) Proceeds from intercompany note payable 27 24 392 Repayments on intercompany note payable — (1 ) (7 ) Net cash provided by (used for) financing activities 586 (2 ) (413 ) Net change in cash and cash equivalents and restricted cash and restricted cash equivalents 56 (80 ) (289 ) Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 101 181 470 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 157 $ 101 $ 181 Supplemental cash flow information Cash and cash equivalents $ 148 $ 96 $ 178 Restricted cash and restricted cash equivalents 9 5 3 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 157 $ 101 $ 181 Supplemental non-cash activities Non-cash contribution of Independence $ — $ — $ 1,100 (a) Contribution to Springleaf Financial Cash Services, Inc. a wholly owned subsidiary of SFC, for funding its intercompany note to Independence. On November 12, 2015, Independence borrowed $3.4 billion under the note to fund a portion of the purchase price for the OneMain Acquisition. See Notes to Condensed Financial Statements. SPRINGLEAF FINANCE CORPORATION Notes to Condensed Financial Statements 1. Accounting Policies Springleaf Finance Corporation (“SFC”) records its investments in subsidiaries at cost plus the equity in undistributed (overdistributed) comprehensive income from subsidiaries since the date of incorporation or, if purchased, the date of the acquisition. The condensed financial statements of the registrant should be read in conjunction with SFC’s consolidated financial statements. 2. Related Party Transactions Notes Receivable from Affiliates SFC provides funding to its parent, SFI, and to most of its subsidiaries for lending activities. SFC charges SFI and these subsidiaries for this funding based on SFC’s cost of funds plus a spread, as specified in the respective note agreements. Notes receivable from parent and affiliates consisted of the following: (dollars in millions) December 31, 2017 December 31, 2016 SFC parent (SFI) $ 390 $ 285 OMFH (a) 1,214 530 SCSI 539 950 Notes for subsidiary securitizations 191 227 Total $ 2,334 $ 1,992 (a) SFC has, from time to time, amended the OMFH note to increase the maximum amount that may be advanced to OMFH. At December 31, 2017, the maximum amount that may be advanced totaled $1.6 billion . Note Payable to Affiliate On January 1, 2015, SFC entered into a note with Springleaf Acquisition Corporation (SAC), whereby SFC initially borrowed $374 million . The note was amended effective December 31, 2017 and, under the amended terms, is payable in full on December 31, 2020 with an aggregate amount outstanding not to exceed $500 million . Under the terms, SAC may request payment of the note and 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 borrower’s cost of funds rate plus 25 bps. At December 31, 2017 and 2016, $436 million and $409 million was drawn under the note, respectively. Interest expense on the note payable was $27 million and $24 million in 2017 and 2016, respectively and is reported in interest expense. Other Assets SFC has income tax receivable balances with its subsidiaries and affiliates under a tax sharing agreement. The balances for these amounts were $140 million and $187 million at December 31, 2017 and 2016, respectively and are included in other assets. Other Liabilities SFC and its direct and indirect subsidiaries incur obligations for various services including short term funding of loan originations from OGSC. These transactions are generally funded through intercompany clearing accounts that are centrally processed through OGSC which acts as a funding clearing house for the transactions between the various subsidiaries of SFC. SFC’s payable to OGSC under this funding structure was $1.0 billion and $1.4 billion at December 31, 2017 and 2016 respectively and is included in other liabilities 3. Long-term Debt Principal maturities of long-term debt at December 31, 2017 were as follows: (dollars in millions) 2018 — 2019 700 2020 1,300 2021 650 2022 1,000 2023-2067 1,525 Total principal maturities $ 5,175 Total carrying amount $ 4,824 See Note 13 of the Notes to Consolidated Financial Statements in Part II - Item 8 included in this report for information regarding the following Guaranty Agreements: • 5.625% SFC Notes • 6.125% SFC Notes • 8.25% SFC Notes • 5.25% SFC Notes • Other SFC Notes |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION We prepared our consolidated financial statements using 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 2017 presentation, we reclassified certain items in prior periods of our consolidated financial statements. Also, to conform to the new alignment of our segments, as further discussed in Note 23, we have revised our prior period segment disclosures. |
Operating Segment Reporting | Operating Segments Our segments coincide with how our businesses are managed. At December 31, 2017 , our two segments include: • Consumer and Insurance; and • Acquisitions and Servicing. In connection with the OneMain Acquisition, we include OneMain’s operations in our Consumer and Insurance segment. The remaining components (which we refer to as “Other”) consist of our non-originating legacy operations, which include: (i) our liquidating real estate portfolio; (ii) our liquidating retail sales finance portfolio (including retail sales finance accounts from our legacy auto finance operation); (iii) our lending operations in Puerto Rico and the U.S. Virgin Islands; and (iv) the operations of the United Kingdom subsidiary, prior to its liquidation on August 16, 2016. Beginning in 2017, management no longer views or manages our real estate assets as a separate operating segment. Therefore, we are now including Real Estate, which was previously presented as a distinct reporting segment, in “Other.” To conform to this new alignment of our segments, we have revised our prior period segment disclosures. Due to the nature of the OneMain Acquisition and the Fortress Acquisition, we applied purchase accounting. However, we report the operating results of Consumer and Insurance, Acquisitions and Servicing, and Other using the Segment Accounting Basis, which (i) reflects our allocation methodologies for certain costs, primarily interest expense, loan loss reserves and acquisition costs, to reflect the manner in which we assess our business results and (ii) excludes the impact of applying purchase accounting (eliminates premiums/discounts on our finance receivables and long-term debt at acquisition, as well as the amortization/accretion in future periods). We 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 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and l Consumer and Insurance - receives remainder of unallocated average debt. 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 $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other 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; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in 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: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other 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; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. |
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, 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 four contractual payments become past due for personal loans 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 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 | 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, capitalize past due interest or 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 | 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 contractual 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 personal and real estate loan accounts when, in our opinion, such treatment is warranted and consistent with our credit risk policies. 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. |
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. |
Goodwill & Other Intangible Assets | Goodwill Goodwill represents the amount of purchase price over the fair value of net assets we acquired in connection with the OneMain Acquisition. We test goodwill for potential impairment annually as of October 1 of each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of our reporting unit below its carrying amount. We first complete a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. If the qualitative assessment indicates that it is more likely than not that the reporting unit’s fair value is less than its carrying amount, we proceed with the two-step impairment test. When necessary, the fair value of the reporting unit is calculated using the income approach based upon prospective financial information of the reporting unit discounted at a rate we estimate a market participant would use. Intangible Assets other than Goodwill 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 OneMain trade name, insurance licenses, lending 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. The VOBA is the PVFP of purchased insurance contracts. The PVFP is dynamically amortized over the lifetime of the block of business and is subject to premium deficiency testing in accordance with Accounting Standards Codification (“ASC”) Topic 944, Financial Services — Insurance . 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. |
Acquisition-related Transaction and Integration Expenses | Acquisition-related Transaction and Integration Expenses In connection with the OneMain Acquisition, we incur acquisition-related transaction and integration costs, including (i) compensation and employee benefit costs, such as retention awards and severance costs, (ii) accelerated amortization of acquired software assets, (iii) rebranding to the OneMain brand, (iv) branch infrastructure and other fixed asset integration costs, (v) information technology costs, such as internal platform development, software upgrades and licenses, and technology termination costs, (vi) legal fees and project management costs, (vii) system conversions, including human capital management, marketing, risk, and finance functions, and (viii) other costs and fees directly related to the OneMain Acquisition and integration. |
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. Deferred tax assets are also recognized for tax attributes such as net operating loss carryforwards. 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 and we record valuation allowances to reduce deferred tax assets to the amounts that management conclude are more-likely-than-not to be realized. 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. The Tax Act was enacted on December 22, 2017 and we must reflect the changes associated with its provisions in 2017. The law is complex and has extensive implications for our federal and state current and deferred taxes and income tax expense. We recorded and reported the effects of the Tax Act in our financial statements in 2017. For further information, see Note 19 of the Notes to Consolidated Financial Statements included in this report. |
Benefit Plans | Benefit Plans We have funded and unfunded noncontributory defined pension plans. We recognize the net pension asset or liability, also referred to herein as the funded status of the benefit plans, in other assets or other liabilities, depending on the funded status at the end of each reporting period. We recognize the net actuarial gains or losses and prior service cost or credit that arise during the period in other comprehensive income or loss. Many of our employees are participants in our 401(k) plan. Our contributions to the plan are charged to salaries and benefits within operating expenses. |
Share-based Compensation Plans | Share-based Compensation Plans We measure compensation cost for service-based and performance-based awards at estimated fair value and recognize compensation expense over the requisite service period for awards expected to vest. The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment to salaries and benefits in the period estimates are revised. For service-based awards subject to graded vesting, expense is recognized under the straight-line method. Expense for performance-based awards with graded vesting is recognized under the accelerated method, whereby each vesting is treated as a separate award with expense for each vesting recognized ratably over the requisite service period. |
Fair Value Measurements | Fair Value Measurements Management is responsible for the determination of the fair value of our financial assets and financial liabilities and the supporting methodologies and assumptions. We employ widely accepted internal valuation models or utilize third-party valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual instruments or pools of finance receivables. When our valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, we determine fair value either by requesting brokers who are knowledgeable about these securities to provide a quote, which is generally non-binding, or by employing widely accepted internal valuation models. Our valuation process typically requires obtaining data about market transactions and other key valuation model inputs from internal or external sources and, through the use of widely accepted valuation models, provides a single fair value measurement for individual securities or pools of finance receivables. The inputs used in this process include, but are not limited to, market prices from recently completed transactions and transactions of comparable securities, interest rate yield curves, credit spreads, bid-ask spreads, currency rates, and other market-observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and other issue or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased. We assess the reasonableness of individual security values received from our valuation service providers through various analytical techniques. As part of our internal price reviews, assets that fall outside a price change tolerance are sent to our third-party investment manager for further review. In addition, we may validate the reasonableness of fair values by comparing information obtained from our valuation service providers to other third-party valuation sources for selected securities. We measure and classify assets and liabilities in the consolidated balance sheets in a hierarchy for disclosure purposes consisting of three “Levels” based on the observability of inputs available in the market place used to measure the fair values. In general, we determine the fair value measurements classified as Level 1 based on inputs utilizing quoted prices in active markets for identical assets or liabilities that we have the ability to access. We generally obtain market price data from exchange or dealer markets. We do not adjust the quoted price for such instruments. We determine the fair value measurements classified as Level 2 based on inputs utilizing other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The use of observable and unobservable inputs is further discussed in Note 24 . In certain cases, the inputs we use to measure the fair value of an asset may fall into different levels of the fair value hierarchy. In such cases, we determine the level in the fair value hierarchy within which the fair value measurement in its entirety falls based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. We recognize transfers into and out of each level of the fair value hierarchy as of the end of the reporting period. Our fair value processes include controls that are designed to ensure that fair values are appropriate. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations, and reviews by senior management. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation Assets and liabilities of foreign operations are translated from their functional currencies into U.S. dollars for reporting purposes using the period end spot foreign exchange rate. Revenues and expenses of foreign operations are translated monthly from their respective functional currencies into U.S. dollars at amounts that approximate weighted average exchange rates. The effects of those translation adjustments are classified in Accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. |
Accounting Pronouncements Recently Adopted and To Be Adopted | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Investments In March of 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, which eliminates the requirement that, when an investment qualifies for use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method of accounting had been in effect during all previous periods that the investment had been held. The ASU requires that an entity that has available-for-sale securities recognize, through earnings, the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method of accounting. The amendment in this ASU became effective prospectively for the Company for fiscal periods beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 and concluded that it does not have an impact on our consolidated financial statements. Statement of Cash Flows In November of 2016, the FASB issued ASU 2016-18, Statement of Cash Flows , which simplifies the presentation of restricted cash on the statement of cash flows by requiring entities to include restricted cash and restricted cash equivalents in the reconciliation of cash and cash equivalents. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2018. We elected to early adopt this ASU as of January 1, 2017 and presented this change on a retrospective basis for all periods presented. We concluded that this ASU does not have a material impact on our consolidated financial statements. Technical Corrections and Improvements In January of 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections , to enhance the footnote disclosure guidelines for ASUs 2014-09, 2016-02, and 2016-13. The amendments to this transition guidance became effective for the Company for fiscal years beginning January 1, 2017. We have adopted this ASU as of January 1, 2017 on a prospective basis. We concluded that this ASU does not have a material impact on our consolidated financial statements. Business Combinations In January of 2017, the FASB issued ASU 2017-01, Business Combinations , to clarify the definition of a business, which establishes a process to determine when an integrated set of assets and activities can be deemed a business combination. The amendments in this ASU became effective for the Company for annual periods beginning January 1, 2018. We elected to early adopt this ASU as of April 1, 2017 on a prospective basis. We concluded that the adoption of this ASU does not have a material impact on our consolidated financial statements. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Revenue Recognition In May of 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides a consistent revenue accounting model across industries. Management has reviewed this update and other ASU’s that were subsequently issued to further clarify the implementation guidance outlined in ASU 2014-09. The Company will adopt this ASU effective January 1, 2018. The Company’s implementation efforts included the identification of revenue streams that are within the scope of the new guidance and the review of related contracts with customers to determine their effect on certain non-interest income items presented in our consolidated statements of operations and the additional presentation disclosures required. We concluded that substantially all of the Company’s revenues are generated from activities that are outside the scope of this ASU, and the adoption will not have a material impact on our consolidated financial statements. Financial Instruments In January of 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which simplifies the impairment assessment of equity investments. The update requires equity investments to be measured at fair value with changes recognized in net income. This ASU eliminates the requirement to disclose the methods and assumptions to estimate fair value for financial 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 for fiscal periods beginning January 1, 2018 using a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) shall be applied prospectively to equity investments that exist as of the date of adoption of this update. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In March of 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs , which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU shortens the amortization period for the premium from the adjustment of yield over the contractual life of the instrument to the earliest call date. The amendments in this ASU become effective for the Company for fiscal years beginning January 1, 2019. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Leases In February of 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize a right-of-use asset and a liability for the obligation to make payments on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2019. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We are currently in the process of importing all identified leases into a new leasing system that will allow us to better account for the leases in accordance with the new guidance. We are assessing new system updates to ensure both qualitative and quantitative data requirements will be met at the time of adoption. The Company’s leases primarily consist of leased office space, automobiles and information technology equipment. At December 31, 2017, the Company had $167 million of minimum lease commitments from these operating leases (refer to Note 20). 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 impact. Allowance for Finance Receivables Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments, w hich 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. The Company’s cross-functional implementation team has developed a project plan to ensure we comply with all updates from this ASU at the time of adoption. We continue to make progress in developing an acceptable model to estimate the expected credit losses. After the model has been reviewed and validated in accordance with our governance policies, the Company will provide further disclosure regarding the estimated impact on our allowance for finance receivables losses. In addition to the development of the model, we are assessing the additional disclosure requirements from this update. 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: Classification of Certain Cash Receipts and Cash Payments , which clarifies how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Income Taxes In October of 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments in this ASU will become effective for the Company for annual reporting periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. Goodwill Impairment In January of 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by eliminating Step 2 of the impairment testing process. The amendments in this ASU will become effective for the Company for fiscal years beginning January 1, 2020. We believe the adoption of this ASU will not have a material impact on our consolidated financial statements. Compensation and Benefits In March of 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , to improve the presentation of the net periodic pension cost and net periodic postretirement benefit costs. It requires that a company present the service cost component separately from other components of net benefit cost on the income statement. The amendments in this ASU become effective for the Company for fiscal periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. In May of 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation: Scope of Modification Accounting , which provides guidance on which changes to the terms or conditions of a share-based payment award requires an entity to apply modification accounting. The amendments in this ASU become effective for the Company for annual periods beginning January 1, 2018. We concluded the adoption of this ASU will not have a material impact on our consolidated financial statements. We do not believe that any other accounting pronouncements issued during 2017, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Significant Transactions (Table
Significant Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of revised condensed consolidated financial statements | The following table presents the Company’s previously reported Consolidated Balance Sheet as of December 31, 2017 and 2016 retrospectively recast for the contribution of Independence: (dollars in millions, except par value amount) 2017 As Reported SFC Independence Adjustments Consolidated SFC Assets Cash and cash equivalents $ 244 $ 714 $ — $ 958 Investment securities 536 1,172 (11 ) 1,697 Net finance receivables: Personal loans 5,308 9,467 — 14,775 Real estate loans 128 — — 128 Retail sales finance 6 — — 6 Net finance receivables 5,442 9,467 — 14,909 Unearned insurance premium and claim reserves (108 ) (482 ) — (590 ) Allowance for finance receivable losses (240 ) (452 ) — (692 ) Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 5,094 8,533 — 13,627 Finance receivables held for sale 132 — — 132 Notes receivable from parent and affiliates 4,488 — (4,097 ) 391 Restricted cash and restricted cash equivalents 169 329 — 498 Goodwill — 1,422 — 1,422 Other intangible assets 15 424 — 439 Other assets 146 402 (67 ) 481 Total assets $ 10,824 $ 12,996 $ (4,175 ) $ 19,645 Liabilities and Shareholder’s Equity Long-term debt $ 7,865 $ 7,195 $ (10 ) 15,050 Note payable to parent and affiliates — 4,097 (4,097 ) — Insurance claims and policyholder liabilities 261 476 — 737 Deferred and accrued taxes 78 3 (35 ) 46 Other liabilities 214 229 (33 ) 410 Total liabilities 8,418 12,000 (4,175 ) 16,243 Commitments and contingent liabilities (Note 20) Shareholder’s equity: Common stock 5 — — 5 Additional paid-in capital 799 1,110 — 1,909 Accumulated other comprehensive income (loss) — 6 — 6 Retained earnings 1,602 (120 ) — 1,482 Total shareholder’s equity 2,406 996 — 3,402 Total liabilities and shareholder’s equity $ 10,824 $ 12,996 $ (4,175 ) $ 19,645 (dollars in millions, except par value amount) 2016 As Reported SFC Independence Adjustments Consolidated SFC Assets Cash and cash equivalents $ 240 $ 313 $ — $ 553 Investment securities 582 1,188 (6 ) 1,764 Net finance receivables: Personal loans 4,804 8,727 — 13,531 Real estate loans 144 — — 144 Retail sales finance 11 — — 11 Net finance receivables 4,959 8,727 — 13,686 Unearned insurance premium and claim reserves (212 ) (374 ) — (586 ) Allowance for finance receivable losses (204 ) (482 ) — (686 ) Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses 4,543 7,871 — 12,414 Finance receivables held for sale 153 — — 153 Notes receivable from parent and affiliates 3,723 — (3,438 ) 285 Restricted cash and restricted cash equivalents 227 341 — 568 Goodwill — 1,422 — 1,422 Other intangible assets 15 476 — 491 Other assets 236 552 (98 ) 690 Total assets $ 9,719 $ 12,163 $ (3,542 ) $ 18,340 Liabilities and Shareholder’s Equity Long-term debt $ 6,837 $ 7,127 $ (5 ) 13,959 Note payable to parent and affiliates — 3,438 (3,438 ) — Insurance claims and policyholder liabilities 248 509 — 757 Deferred and accrued taxes 106 — (95 ) 11 Other liabilities 185 159 (4 ) 340 Total liabilities 7,376 11,233 (3,542 ) 15,067 Commitments and contingent liabilities (Note 20) Shareholder’s equity: Common stock 5 — — 5 Additional paid-in capital 799 1,107 — 1,906 Accumulated other comprehensive income (loss) (7 ) 1 — (6 ) Retained earnings 1,546 (178 ) — 1,368 Total shareholder’s equity 2,343 930 — 3,273 Total liabilities and shareholder’s equity $ 9,719 $ 12,163 $ (3,542 ) $ 18,340 The following table presents the Company’s previously reported Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence: (dollars in millions) 2017 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,228 $ 1,946 $ — $ 3,174 Finance receivables held for sale originated as held for investment 13 — — 13 Total interest income 1,241 1,946 — 3,187 Interest expense 517 531 (232 ) 816 Net interest income 724 1,415 232 2,371 Provision for finance receivable losses 324 623 — 947 Net interest income after provision for finance receivable losses 400 792 232 1,424 Other revenues: Insurance 140 280 — 420 Investment 28 45 — 73 Interest income on notes receivable from parent and affiliates 255 — (232 ) 23 Net loss on repurchases and repayments of debt (28 ) (1 ) — (29 ) Other 12 69 (28 ) 53 Total other revenues 407 393 (260 ) 540 Other expenses: Operating expenses: Salaries and benefits 307 442 (20 ) 729 Acquisition-related transaction and integration expenses — — 69 69 Other operating expenses 251 413 (77 ) 587 Insurance policy benefits and claims 56 128 — 184 Total other expenses 614 983 (28 ) 1,569 Income before income tax expense 193 202 — 395 Income tax expense 99 144 — 243 Net income 94 58 — 152 Net income attributable to non-controlling interests — — — — Net income attributable to Springleaf Finance Corporation $ 94 $ 58 $ — $ 152 (dollars in millions) 2016 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,276 $ 1,746 $ — $ 3,022 Finance receivables held for sale originated as held for investment 74 — — 74 Total interest income 1,350 1,746 — 3,096 Interest expense 556 502 (202 ) 856 Net interest income 794 1,244 202 2,240 Provision for finance receivable losses 329 600 — 929 Net interest income after provision for finance receivable losses 465 644 202 1,311 Other revenues: Insurance 160 289 — 449 Investment 31 55 — 86 Interest income on notes receivable from parent and affiliates 214 7 (202 ) 19 Net loss on repurchases and repayments of debt (17 ) — — (17 ) Net gain on sale of SpringCastle interests 167 — — 167 Net gain on sales of personal and real estate loans and related trust assets 18 — — 18 Other 1 31 — 32 Total other revenues 574 382 (202 ) 754 Other expenses: Operating expenses: Salaries and benefits 347 427 (51 ) 723 Acquisition-related transaction and integration expenses — — 108 108 Other operating expenses 291 436 (57 ) 670 Insurance policy benefits and claims 55 112 — 167 Total other expenses 693 975 — 1,668 Income before income tax expense 346 51 — 397 Income tax expense 113 14 — 127 Net income 233 37 — 270 Net income attributable to non-controlling interests 28 — — 28 Net income attributable to Springleaf Finance Corporation $ 205 $ 37 $ — $ 242 (dollars in millions) 2015 As Reported Consolidated Year to Date SFC Independence Adjustments SFC Interest income: Finance charges $ 1,597 $ 253 $ — $ 1,850 Finance receivables held for sale originated as held for investment 60 — — 60 Total interest income 1,657 253 — 1,910 Interest expense 667 75 (27 ) 715 Net interest income 990 178 27 1,195 Provision for finance receivable losses 339 372 — 711 Net interest income after provision for finance receivable losses 651 (194 ) 27 484 Other revenues: Insurance 158 53 — 211 Investment 49 1 — 50 Interest income on notes receivable from parent and affiliates 42 — (27 ) 15 Other (6 ) 5 — (1 ) Total other revenues 243 59 (27 ) 275 Other expenses: Operating expenses: Salaries and benefits 364 73 (11 ) 426 Acquisition-related transaction and integration expenses — — 62 62 Other operating expenses 299 123 (51 ) 371 Insurance policy benefits and claims 72 24 — 96 Total other expenses 735 220 — 955 Income before income tax expense (benefit) 159 (355 ) — (196 ) Income tax expense (benefit) 18 (140 ) — (122 ) Net income (loss) 141 (215 ) — (74 ) Net income attributable to non-controlling interests 127 — — 127 Net income (loss) attributable to Springleaf Finance Corporation $ 14 $ (215 ) $ — $ (201 ) The following table presents the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015 retrospectively recast for the contribution of Independence: 2017 (dollars in millions) As Reported Independence Adjustments Consolidated Cash flows from operating activities Net income $ 94 $ 58 $ — $ 152 Reconciling adjustments: Provision for finance receivable losses 324 623 — 947 Depreciation and amortization 143 174 — 317 Deferred income tax benefit (82 ) 125 — 43 Net loss on repurchases and repayments of debt 28 1 — 29 Share-based compensation expense, net of forfeitures — 5 — 5 Other 1 (6 ) — (5 ) Cash flows due to changes in: Other assets and other liabilities 107 68 — 175 Insurance claims and policyholder liabilities (92 ) 70 — (22 ) Taxes receivable and payable 13 30 — 43 Accrued interest and finance charges (95 ) 54 4 (37 ) Other, net (3 ) 3 — — Net cash provided by operating activities 438 1,205 4 1,647 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (783 ) (1,484 ) — (2,267 ) Cash advances on intercompany notes receivable (1,837 ) — 1,482 (355 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 1,154 — (905 ) 249 Available-for-sale securities purchased (245 ) (431 ) 5 (671 ) Available-for-sale securities called, sold, and matured 301 438 — 739 Trading and other securities called, sold, and matured 1 17 — 18 Proceeds from sale of real estate owned 4 — — 4 Other, net 12 (9 ) — 3 Net cash provided by (used for) financing activities (1,393 ) (1,469 ) 582 (2,280 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,456 1,971 — 5,427 Repayments of long-term debt (2,544 ) (1,898 ) (5 ) (4,447 ) Proceeds from intercompany note payable — 1,486 (1,486 ) — Payments on intercompany note payable — (905 ) 905 — Withholding tax on vested RSUs and PRSUs (1 ) (1 ) — (2 ) Cash dividend of SFMC (10 ) — — (10 ) Net cash provided by (used for) financing activities 901 653 (586 ) 968 Consolidated Statements of Cash Flows (Continued) 2017 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (54 ) 389 — 335 Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 467 654 — $ 1,121 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 413 $ 1,043 $ — $ 1,456 Supplemental cash flow information Cash and cash equivalents $ 244 $ 714 $ — $ 958 Restricted cash and restricted cash equivalents 169 329 — 498 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 413 $ 1,043 $ — $ 1,456 Interest paid $ (436 ) $ (310 ) $ — $ (746 ) Income taxes received (paid) (71 ) (83 ) — (154 ) Supplemental non-cash activities Transfer of finance receivables to real estate owned $ 9 $ — $ — $ 9 Net unsettled investment security purchases — 1 — $ 1 Non-cash dividend of SFMC (28 ) — — (28 ) Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. 2016 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Cash flows from operating activities Net income $ 233 $ 37 $ — $ 270 Reconciling adjustments: Provision for finance receivable losses 329 600 — 929 Depreciation and amortization 144 366 — 510 Deferred income tax benefit (83 ) (22 ) — (105 ) Net gain on liquidation of United Kingdom subsidiary (4 ) — — (4 ) Net gain on sales of personal and real estate loans and related trust assets (18 ) — — (18 ) Net loss on repurchases and repayments of debt 17 — — 17 Share-based compensation expense, net of forfeitures 1 7 — 8 Net gain on sale of SpringCastle interests (167 ) — — (167 ) Other 6 (15 ) — (9 ) Cash flows due to changes in: Other assets and other liabilities (37 ) (152 ) — (189 ) Insurance claims and policyholder liabilities (19 ) (45 ) — (64 ) Taxes receivable and payable 56 (94 ) — (38 ) Accrued interest and finance charges 14 1 — 15 Other, net 3 — — 3 Net cash provided by operating activities 475 683 — 1,158 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (557 ) (598 ) — (1,155 ) Proceeds on sales of finance receivables held for sale originated as held for investment 930 — — 930 Proceeds from sale of SpringCastle interests, net of restricted cash released 26 — — 26 Cash advances on intercompany notes receivable (1,042 ) (670 ) 1,415 (297 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 1,023 670 (1,292 ) 401 Cash received from CitiFinancial Credit Company — 23 — 23 Available-for-sale securities purchased (353 ) (399 ) 6 (746 ) Trading and other securities purchased (10 ) (7 ) — (17 ) Available-for-sale securities called, sold, and matured 380 457 — 837 Trading and other securities called, sold, and matured 20 43 — 63 Proceeds from sale of real estate owned 8 — — 8 Other, net 26 (36 ) — (10 ) Net cash provided by (used for) investing activities 451 (517 ) 129 63 Consolidated Statements of Cash Flows (Continued) 2016 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,854 2,806 — 6,660 Proceeds from intercompany note payable 670 1,415 (2,085 ) — Repayments of long-term debt (4,920 ) (3,394 ) (6 ) (8,320 ) Distributions to joint venture partners (18 ) — — (18 ) Payments on note payable to affiliate (670 ) (1,292 ) 1,962 — Withholding tax on vested RSUs and PRSUs (1 ) — — (1 ) Capital contributions from parent 10 — — 10 Net cash provided by (used for) financing activities (1,075 ) (465 ) (129 ) (1,669 ) Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (149 ) (299 ) — (448 ) Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 616 953 — 1,569 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 467 $ 654 $ — $ 1,121 Supplemental cash flow information Cash and cash equivalents $ 240 $ 313 $ — $ 553 Restricted cash and restricted cash equivalents 227 341 — 568 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 467 $ 654 $ — $ 1,121 Interest paid $ (451 ) $ (314 ) $ — $ (765 ) Income taxes received (paid) (140 ) (129 ) — (269 ) 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 $ — $ — $ 1,945 Increase in finance receivables held for investment financed with intercompany payable 89 — — 89 Transfer of finance receivables to real estate owned 8 — — 8 Net unsettled investment security purchases — 1 — 1 Restricted cash and restricted cash equivalents primarily represent funds required to be used for future debt payments relating to our securitization transactions and escrow deposits. 2015 (dollars in millions) As Reported Independence Adjustments Consolidated SFC Cash flows from operating activities Net income (loss) $ 141 $ (215 ) $ — $ (74 ) Reconciling adjustments: Provision for finance receivable losses 339 372 — 711 Depreciation and amortization 92 101 — 193 Deferred income tax benefit (50 ) (158 ) — (208 ) Non-cash incentive compensation from Initial Stockholder 15 — — 15 Share-based compensation expense, net of forfeitures 2 — — 2 Other (3 ) 5 — 2 Cash flows due to changes in: Other assets and other liabilities (48 ) 49 — 1 Insurance claims and policyholder liabilities 34 (7 ) — 27 Taxes receivable and payable 111 20 — 131 Accrued interest and finance charges (23 ) (11 ) — (34 ) Other, net (2 ) — — (2 ) Net cash provided by operating activities 608 156 — 764 Cash flows from investing activities Net principal originations of finance receivables held for investment and held for sale (799 ) (176 ) — (975 ) Proceeds on sales of finance receivables held for sale originated as held for investment 78 — — 78 Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired — (3,520 ) — (3,520 ) Cash advances on intercompany notes receivable (3,720 ) — 3,393 (327 ) Proceeds from repayments of principal and assignment of intercompany notes receivable 189 — — 189 Available-for-sale securities purchased (476 ) (49 ) — (525 ) Trading and other securities purchased (1,474 ) — — (1,474 ) Available-for-sale securities called, sold, and matured 470 51 — 521 Trading and other securities called, sold, and matured 3,779 — — 3,779 Proceeds from sale of real estate owned 14 — — 14 Other, net (12 ) (2 ) — (14 ) Net cash (used for) financing activities (1,951 ) (3,696 ) 3,393 (2,254 ) Cash flows from financing activities Proceeds from issuance of long-term debt, net of commissions 3,028 — — 3,028 Repayments of long-term debt (1,960 ) — — (1,960 ) Proceeds from intercompany note payable — 3,393 (3,393 ) — Distributions to joint venture partners (77 ) — — (77 ) Excess tax benefit from share-based compensation 1 — — 1 Capital contribution — 1,100 — 1,100 Net cash provided by financing activities 992 4,493 (3,393 ) 2,092 Consolidated Statements of Cash Flows (Continued) 2015 (dollars in millions) As Reported SFC Independence Adjustments Consolidated SFC Net change in cash and cash equivalents and restricted cash and restricted cash equivalents (351 ) 953 — 602 Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period 967 — — 967 Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period $ 616 $ 953 $ — $ 1,569 Supplemental cash flow information Cash and cash equivalents $ 321 $ 572 $ — $ 893 Restricted cash and restricted cash equivalents 295 381 — 676 Total cash and cash equivalents and restricted cash and restricted cash equivalents $ 616 $ 953 $ — $ 1,569 Interest paid $ (511 ) $ (83 ) $ — $ (594 ) Income taxes received (paid) 45 (2 ) — 43 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) $ 617 $ — $ — $ 617 Transfer of finance receivables to real estate owned 11 — — 11 |
Schedule of recognized identified assets acquired and liabilities assumed | The excess of the purchase price over the fair values, which we recorded as goodwill, was determined as follows: (dollars in millions) As Reported Adjustments* As Adjusted Cash consideration $ 4,478 $ (23 ) (a) $ 4,455 Fair value of assets acquired: Cash and cash equivalents 958 — 958 Investment securities 1,294 — 1,294 Personal loans 8,801 (6 ) (b) 8,795 Intangibles 555 3 (c) 558 Other assets 247 (3 ) (d) 244 Fair value of liabilities assumed: Long-term debt (7,725 ) — (7,725 ) Unearned premium, insurance policy and claims reserves (936 ) — (936 ) Other liabilities (156 ) 1 (e) (155 ) Goodwill $ 1,440 $ 1,422 * During 2016, we recorded the following adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill as new information, which existed as of the acquisition date, became available: (a) Represents a subsequent cash payment from Citigroup as a result of reaching final agreement on certain purchase accounting adjustments. (b) Represents the net impact of an increase to the discount of purchased credit impaired finance receivables of $64 million and an increase to the premium on finance receivables purchased as performing receivables of $58 million as a result of revisions to the receivables valuation during the measurement period. (c) Represents an increase in acquired intangibles related to customer loan applications in process at the acquisition date. (d) Represents a decrease in valuation of acquired software asset. (e) Represents the settlement of a payable to Citigroup during the measurement perio |
Finance Receivables (Tables)
Finance Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of net finance receivables held for investment by type were as follows: (dollars in millions) Personal Loans Real Estate Loans Retail Sales Finance Total December 31, 2017 Gross receivables * $ 16,173 $ 127 $ 7 $ 16,307 Unearned finance charges and points and fees (1,724 ) — (1 ) (1,725 ) Accrued finance charges 210 1 — 211 Deferred origination costs 116 — — 116 Total $ 14,775 $ 128 $ 6 $ 14,909 December 31, 2016 Gross receivables * $ 15,360 $ 142 $ 12 $ 15,514 Unearned finance charges and points and fees (2,061 ) 1 (1 ) (2,061 ) Accrued finance charges 150 1 — 151 Deferred origination costs 82 — — 82 Total $ 13,531 $ 144 $ 11 $ 13,686 * Gross receivables are defined as follows: • Finance receivables purchased as a performing receivable — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts to reflect the finance receivable balance at its initial fair value; • Finance receivables originated subsequent to the OneMain Acquisition and the Fortress Acquisition — gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts; • Purchased credit impaired finance receivables — gross finance receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts; and • TDR finance receivables —gross finance receivables equal the UPB for interest bearing accounts and the gross remaining contractual payments for precompute accounts. Additionally, the remaining unearned premium, net of discount established at the time of purchase, is included in both interest bearing and precompute accounts previously purchased as a performing receivable. |
Schedule of largest concentrations of net finance receivables | The largest concentrations of net finance receivables were as follows: December 31, 2017 2016 * (dollars in millions) Amount Percent Amount Percent Texas $ 1,300 9 % $ 1,194 9 % North Carolina 1,155 8 1,112 8 Pennsylvania 882 6 825 6 California 876 6 806 6 Ohio 726 5 660 5 Florida 674 5 572 4 Illinois 667 4 599 4 Virginia 641 4 623 5 Georgia 618 4 586 4 Indiana 608 4 539 4 Tennessee 520 3 465 3 Other 6,242 42 5,705 42 Total $ 14,909 100 % $ 13,686 100 % * December 31, 2016 concentrations of net finance receivables are presented in the order of December 31, 2017 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 Real Estate Loans Retail Sales Finance Total December 31, 2017 Performing: Current $ 14,081 $ 98 $ 6 $ 14,185 30-59 days past due 202 8 — 210 60-89 days past due 156 3 — 159 Total performing 14,439 109 6 14,554 Nonperforming: 90-179 days past due 330 4 — 334 180 days or more past due 6 15 — 21 Total nonperforming 336 19 — 355 Total $ 14,775 $ 128 $ 6 $ 14,909 December 31, 2016 Performing: Current $ 12,878 $ 102 $ 11 $ 12,991 30-59 days past due 173 9 — 182 60-89 days past due 129 4 — 133 Total performing 13,180 115 11 13,306 Nonperforming: 90-179 days past due 347 8 — 355 180 days or more past due 4 21 — 25 Total nonperforming 351 29 — 380 Total $ 13,531 $ 144 $ 11 $ 13,686 |
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: December 31, 2017 2016 (dollars in millions) OM Loans FA Loans (a) Total OM Loans FA Loans (a) Total Carrying amount, net of allowance $ 176 $ 57 $ 233 $ 324 $ 70 $ 394 Outstanding balance (b) 243 94 337 444 107 551 Allowance for purchased credit impaired finance receivable losses 6 9 15 29 8 37 (a) Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 (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 | Purchased credit impaired FA Loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 Carrying amount $ 44 $ 54 Outstanding balance 72 83 |
Schedule of changes in accretable yield for purchased credit impaired finance receivables | Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale were as follows: (dollars in millions) OM Loans SCP Loans FA Loans Total Year Ended December 31, 2017 Balance at beginning of period $ 59 $ — $ 60 $ 119 Accretion (a) (34 ) — (5 ) (39 ) Reclassifications to nonaccretable difference (b) 22 — (2 ) 20 Balance at end of period $ 47 $ — $ 53 $ 100 Year Ended December 31, 2016 Balance at beginning of period $ 151 $ 375 $ 66 $ 592 Accretion (a) (69 ) (16 ) (7 ) (92 ) Other (c) (23 ) — — (23 ) Reclassifications from nonaccretable difference (b) — — 12 12 Transfers due to finance receivables sold — (359 ) (11 ) (370 ) Balance at end of period $ 59 $ — $ 60 $ 119 Year Ended December 31, 2015 Balance at beginning of period $ — $ 452 $ 54 $ 506 Additions from OneMain Acquisition 166 — — 166 Accretion (a) (15 ) (77 ) (8 ) (100 ) Reclassifications from nonaccretable difference (b) — — 20 20 Balance at end of period $ 151 $ 375 $ 66 $ 592 (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, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 (b) Reclassifications from (to) nonaccretable difference represents the increases (decreases) in accretable yield resulting from higher (lower) estimated undiscounted cash flows. (c) Other reflects a measurement period adjustment in the first quarter of 2016 based on a change in the expected cash flows in the purchase credit impaired portfolio related to the OneMain Acquisition. The measurement period adjustment created a decrease of $23 million to the beginning balance of the OM Loans accretable yield. |
Schedule of Accretion on our purchased credit impaired FA Loans held for sale | 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, 2017 2016 2015 Accretion $ 4 $ 5 $ 6 |
Schedule of Troubled Debt Restructurings, Held for Investments and Held for Sale | Information regarding TDR finance receivables held for investment and held for sale were as follows: (dollars in millions) Personal Loans Real Estate Total December 31, 2017 TDR gross finance receivables (b) $ 318 $ 139 $ 457 TDR net finance receivables 317 140 457 Allowance for TDR finance receivable losses 134 12 146 December 31, 2016 TDR gross finance receivables $ 151 $ 133 $ 284 TDR net finance receivables 152 134 286 Allowance for TDR finance receivable losses 69 11 80 (a) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 (b) As defined earlier in this Note. |
Schedule of TDR finance receivables held for sale (gross, net and allowance) | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) December 31, 2017 2016 TDR gross finance receivables $ 90 $ 89 TDR net finance receivables 91 90 |
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, 2017 TDR average net receivables $ 230 $ — $ 140 $ 370 TDR finance charges recognized 33 — 9 42 Year Ended December 31, 2016 TDR average net receivables $ 95 $ — $ 175 $ 270 TDR finance charges recognized 12 — 11 23 Year Ended December 31, 2015 TDR average net receivables (c) $ 35 $ 12 $ 198 $ 245 TDR finance charges recognized 3 1 11 15 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 |
Schedule of trouble debt restructuring average held for sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR average net receivables $ 91 TDR finance charges recognized 6 Year Ended December 31, 2016 TDR average net receivables $ 102 TDR finance charges recognized 6 Year Ended December 31, 2015 TDR average net receivables $ 91 TDR finance charges recognized 5 |
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, 2017 Pre-modification TDR net finance receivables $ 326 $ — $ 16 $ 342 Post-modification TDR net finance receivables: Rate reduction $ 250 $ — $ 16 $ 266 Other (c) 74 — — 74 Total post-modification TDR net finance receivables $ 324 $ — $ 16 $ 340 Number of TDR accounts 45,300 — 510 45,810 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 211 $ 1 $ 16 $ 228 Post-modification TDR net finance receivables: Rate reduction $ 194 $ 1 $ 16 $ 211 Other (c) 12 — 1 13 Total post-modification TDR net finance receivables $ 206 $ 1 $ 17 $ 224 Number of TDR accounts 29,395 157 364 29,916 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 47 $ 7 $ 21 $ 75 Post-modification TDR net finance receivables: Rate reduction $ 31 $ 6 $ 17 $ 54 Other (c) 12 — 5 17 Total post-modification TDR net finance receivables $ 43 $ 6 $ 22 $ 71 Number of TDR accounts 8,365 721 385 9,471 (a) TDR personal loans held for sale included in the table above were immaterial. (b) TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 (c) “Other” modifications primarily include forgiveness of principal or interest. |
Schedule Of Information Regarding New Volume Of TDR Finance Receivables Held For Sale | TDR real estate loans held for sale included in the table above were as follows: (dollars in millions) Real Estate Loans Year Ended December 31, 2017 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 232 Year Ended December 31, 2016 Pre-modification TDR net finance receivables $ 5 Post-modification TDR net finance receivables $ 5 Number of TDR accounts 122 Year Ended December 31, 2015 Pre-modification TDR net finance receivables $ 6 Post-modification TDR net finance receivables $ 7 Number of TDR accounts 113 |
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, 2017 TDR net finance receivables (b) $ 88 $ — $ 4 $ 92 Number of TDR accounts 14,935 — 101 15,036 Year Ended December 31, 2016 TDR net finance receivables (b) (c) $ 24 $ — $ 3 $ 27 Number of TDR accounts 3,684 19 61 3,764 Year Ended December 31, 2015 TDR net finance receivables (b) $ 8 $ 2 $ 3 $ 13 Number of TDR accounts 1,649 147 46 1,842 (a) TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 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 (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 | TDR finance receivables held for sale included in the table above were as follows: (dollars in millions) Real Estate Year Ended December 31, 2017 TDR net finance receivables $ 2 Number of TDR accounts 53 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 |
Allowance for Finance Receiva38
Allowance for Finance Receivable Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses by finance receivable type were as follows: (dollars in millions) Personal Loans SpringCastle Portfolio Real Estate Loans Retail Sales Finance Consolidated Total Year Ended December 31, 2017 Balance at beginning of period $ 666 $ — $ 19 $ 1 $ 686 Provision for finance receivable losses 941 — 6 — 947 Charge-offs (1,041 ) — (5 ) (1 ) (1,047 ) Recoveries 102 — 3 1 106 Balance at end of period $ 668 $ — $ 23 $ 1 $ 692 Year Ended December 31, 2016 Balance at beginning of period $ 538 $ 4 $ 46 $ 1 $ 589 Provision for finance receivable losses 906 14 9 — 929 Charge-offs (843 ) (17 ) (11 ) (1 ) (872 ) Recoveries 65 3 5 1 74 Other (a) — (4 ) (30 ) — (34 ) Balance at end of period $ 666 $ — $ 19 $ 1 $ 686 Year Ended December 31, 2015 Balance at beginning of period $ 130 $ 3 $ 46 $ 1 $ 180 Provision for finance receivable losses 629 67 13 2 711 Charge-offs (257 ) (78 ) (18 ) (3 ) (356 ) Recoveries 37 12 5 1 55 Other (b) (1 ) — — — (1 ) Balance at end of period $ 538 $ 4 $ 46 $ 1 $ 589 (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; 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. |
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 Real Estate Loans Retail Sales Finance Total December 31, 2017 Allowance for finance receivable losses: Collectively evaluated for impairment $ 528 $ 2 $ 1 $ 531 Purchased credit impaired finance receivables 6 9 — 15 TDR finance receivables 134 12 — 146 Total $ 668 $ 23 $ 1 $ 692 Finance receivables: Collectively evaluated for impairment $ 14,276 $ 57 $ 6 $ 14,339 Purchased credit impaired finance receivables 182 22 — 204 TDR finance receivables 317 49 — 366 Total $ 14,775 $ 128 $ 6 $ 14,909 Allowance for finance receivable losses as a percentage of finance receivables 4.52 % 18.66 % 9.91 % 4.64 % December 31, 2016 Allowance for finance receivable losses: Collectively evaluated for impairment $ 568 $ — $ 1 $ 569 Purchased credit impaired finance receivables 29 8 — 37 TDR finance receivables 69 11 — 80 Total $ 666 $ 19 $ 1 $ 686 Finance receivables: Collectively evaluated for impairment $ 13,026 $ 76 $ 11 $ 13,113 Purchased credit impaired finance receivables 353 24 — 377 TDR finance receivables 152 44 — 196 Total $ 13,531 $ 144 $ 11 $ 13,686 Allowance for finance receivable losses as a percentage of finance receivables 4.92 % 13.31 % 4.42 % 5.01 % |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 28 $ — $ — $ 28 Obligations of states, municipalities, and political subdivisions 135 — — 135 Certificates of deposit and commercial paper 60 — — 60 Non-U.S. government and government sponsored entities 126 — (1 ) 125 Corporate debt 941 12 (5 ) 948 Mortgage-backed, asset-backed, and collateralized: RMBS 100 — (1 ) 99 CMBS 88 — (1 ) 87 CDO/ABS 96 — — 96 Total bonds 1,574 12 (8 ) 1,578 Preferred stock (a) 15 — (1 ) 14 Common stock (a) 21 2 — 23 Other long-term investments 1 — — 1 Total (b) $ 1,611 $ 14 $ (9 ) $ 1,616 December 31, 2016 Fixed maturity available-for-sale securities: Bonds U.S. government and government sponsored entities $ 31 $ — $ — $ 31 Obligations of states, municipalities, and political subdivisions 145 1 (1 ) 145 Non-U.S. government and government sponsored entities 119 — (1 ) 118 Corporate debt 1,024 8 (7 ) 1,025 Mortgage-backed, asset-backed, and collateralized: RMBS 101 — (1 ) 100 CMBS 109 — (1 ) 108 CDO/ABS 102 — — 102 Total bonds 1,631 9 (11 ) 1,629 Preferred stock (a) 17 — (1 ) 16 Common stock (a) 16 1 — 17 Other long-term investments 2 — — 2 Total (b) $ 1,666 $ 10 $ (12 ) $ 1,664 (a) The Company employs an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 and 2016 , 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, 2017 Bonds: U.S. government and government sponsored entities $ 21 $ — $ 3 $ — $ 24 $ — Obligations of states, municipalities, and political subdivisions 65 — 20 — 85 — Non-U.S. government and government sponsored entities 89 (1 ) 13 — 102 (1 ) Corporate debt 387 (3 ) 93 (2 ) 480 (5 ) RMBS 40 — 25 (1 ) 65 (1 ) CMBS 40 — 38 (1 ) 78 (1 ) CDO/ABS 48 — 26 — 74 — Total bonds 690 (4 ) 218 (4 ) 908 (8 ) Preferred stock 3 — 7 (1 ) 10 (1 ) Common stock 3 — — — 3 — Other long-term investments 1 — — — 1 — Total $ 697 $ (4 ) $ 225 $ (5 ) $ 922 $ (9 ) December 31, 2016 Bonds: U.S. government and government sponsored entities $ 18 $ — $ — $ — $ 18 $ — Obligations of states, municipalities, and political subdivisions 99 (1 ) 2 — 101 (1 ) Non-U.S. government and government sponsored entities 55 (1 ) 1 — 56 (1 ) Corporate debt 416 (6 ) 8 (1 ) 424 (7 ) RMBS 74 (1 ) 1 — 75 (1 ) CMBS 66 (1 ) 5 — 71 (1 ) CDO/ABS 64 — 3 — 67 — Total bonds 792 (10 ) 20 (1 ) 812 (11 ) Preferred stock 6 — 8 (1 ) 14 (1 ) Common stock 2 — 1 — 3 — Total $ 800 $ (10 ) $ 29 $ (2 ) $ 829 $ (12 ) * Unrealized losses on certain available-for-sale securities were less than $ 1 million and, therefore, are not quantified in the table above. |
Schedule of realized gains, realized losses, and net realized gains (losses) due to sale or redemption of fair values of available-for-sale securities | The mark-to-market and net 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, 2017 2016 2015 Mark-to-market gains (losses) on trading and other securities held at year end $ (1 ) $ 1 $ — Net realized gains (losses) on trading and other securities sold or redeemed during the year — 7 (3 ) Total $ (1 ) $ 8 $ (3 ) |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at December 31, 2017 were as follows: (dollars in millions) Fair Value Amortized Cost Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 224 $ 225 Due after 1 year through 5 years 530 531 Due after 5 years through 10 years 335 334 Due after 10 years 207 200 Mortgage-backed, asset-backed, and collateralized securities 282 284 Total $ 1,578 $ 1,574 |
Debt Securities, Trading, and Equity Securities, FV-NI | The fair value of other securities by type was as follows: (dollars in millions) December 31, 2017 2016 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 68 85 Mortgage-backed, asset-backed, and collateralized: RMBS 1 1 CMBS — 1 CDO/ABS 4 5 Total bonds 74 93 Preferred stock 6 6 Total $ 80 $ 99 |
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 net realized gains were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Proceeds from sales and redemptions $ 508 $ 518 $ 429 Realized gains $ 15 $ 16 $ 15 Realized losses (1 ) (1 ) (1 ) Net realized gains $ 14 $ 15 $ 14 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill, all of which is reported in our Consumer and Insurance segment, were as follows: (dollars in millions) Years Ended December 31, 2017 2016 Balance at beginning of period $ 1,422 $ 1,440 Adjustments to purchase price allocation* — (18 ) Balance at end of period $ 1,422 $ 1,422 * See Note 2 for details regarding this transaction. |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization, in total and by major intangible asset class were as follows: (dollars in millions) Gross Carrying Amount Accumulated Amortization Net Other Intangible Assets December 31, 2017 Customer relationships $ 223 $ (92 ) $ 131 Trade names 220 — 220 VOBA 141 (90 ) 51 Licenses 37 — 37 Other 12 (12 ) — Total $ 633 $ (194 ) $ 439 December 31, 2016 Customer relationships $ 223 $ (58 ) $ 165 Trade names 220 — 220 VOBA 141 (74 ) 67 Licenses 37 — 37 Other 12 (10 ) 2 Total $ 633 $ (142 ) $ 491 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate amortization of other intangible assets for each of the next five years is reflected in the table below. (dollars in millions) Estimated Aggregate Amortization Expense 2018 $ 42 2019 39 2020 38 2021 32 2022 3 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets [Abstract] | |
Schedule of components of other assets | Components of other assets were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets $ 139 $ 180 Ceded insurance reserves 95 102 Prepaid expenses and deferred charges 89 89 Fixed assets, net 67 128 Other investments 29 52 Current tax receivable 13 20 Cost basis investments 11 11 Receivables from parent and affiliates 4 76 Other 34 32 Total $ 481 $ 690 * Fixed assets were net of accumulated depreciation of $120 million at December 31, 2017 and $247 million at December 31, 2016 . The decrease in fixed assets is primarily related to the contribution of SFMC in the form of a dividend. See Note 12 for more information regarding this transaction. |
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, 2017 Customer relationships $ 223 $ (92 ) $ 131 Trade names 220 — 220 VOBA 141 (90 ) 51 Licenses 37 — 37 Other 12 (12 ) — Total $ 633 $ (194 ) $ 439 December 31, 2016 Customer relationships $ 223 $ (58 ) $ 165 Trade names 220 — 220 VOBA 141 (74 ) 67 Licenses 37 — 37 Other 12 (10 ) 2 Total $ 633 $ (142 ) $ 491 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 December 31, 2016 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Senior debt $ 14,878 $ 15,436 $ 13,787 $ 14,340 Junior subordinated debt 172 189 172 158 Total $ 15,050 $ 15,625 $ 13,959 $ 14,498 |
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, 2017 2016 2015 2017 2016 Senior debt 5.73 % 5.60 % 6.56 % 5.56 % 5.80 % Junior subordinated debt 6.41 12.26 12.26 6.37 12.26 Total 5.74 5.67 6.65 5.57 5.88 |
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, 2017 were as follows: Senior Debt (dollars in millions) Securitizations Medium Term Notes Junior Subordinated Debt Total Interest rates (a) 2.04% - 6.94% 5.25% - 8.25% 3.11% 2018 — 700 — 700 2019 — 696 — 696 2020 — 1,299 — 1,299 2021 — 1,446 — 1,446 2022 — 1,000 — 1,000 2023-2067 — 1,175 350 1,525 Securitizations (b) 8,711 — — 8,711 Total principal maturities $ 8,711 $ 6,316 $ 350 $ 15,377 Total carrying amount $ 8,688 $ 6,190 $ 172 $ 15,050 Debt issuance costs (c) $ (24 ) $ (30 ) $ — $ (54 ) (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 . Effective January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture became a variable floating rate (determined quarterly) equal to 3-month LIBOR plus 1.75% , or 3.11% as of December 31, 2017 . Prior to January 16, 2017, the interest rate on the UPB of the Junior Subordinated Debenture was a fixed rate of 6.00% . (b) Securitizations have a stated maturity date but are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At December 31, 2017 , there were no amounts drawn under our revolving conduit facilities. See Note 14 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 $20 million at December 31, 2017 and are reported in other assets. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities | |
Schedule of carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | (dollars in millions) December 31, 2017 2016 Assets Cash and cash equivalents $ 4 $ 3 Finance receivables: Personal loans 9,769 9,509 Allowance for finance receivable losses 465 501 Restricted cash and restricted cash equivalents 482 552 Other assets 20 14 Liabilities Long-term debt $ 8,688 $ 8,240 Other liabilities 15 16 Our securitized borrowings at December 31, 2017 consisted of the following: (dollars in millions) Issue Amount * Current Current Weighted Average Interest Rate Original Revolving Period Issue Date Maturity Date Consumer Securitizations: SLFT 2015-A $ 1,163 $ 1,163 3.47 % 3 years 02/26/2015 11/2024 SLFT 2015-B 314 314 3.78 % 5 years 04/07/2015 05/2028 SLFT 2016-A (a) 532 500 3.10 % 2 years 12/14/2016 11/2029 SLFT 2017-A (b) 652 619 2.98 % 3 years 06/28/2017 07/2030 OMFIT 2014-2 1,185 320 4.16 % 2 years 07/30/2014 09/2024 OMFIT 2015-1 1,229 1,229 3.74 % 3 years 02/05/2015 03/2026 OMFIT 2015-2 1,250 750 3.40 % 2 years 05/21/2015 07/2025 OMFIT 2015-3 293 293 4.21 % 5 years 09/29/2015 11/2028 OMFIT 2016-1 (c) 500 459 4.01 % 3 years 02/10/2016 02/2029 OMFIT 2016-2 (d) 890 816 4.50 % 2 years 03/23/2016 03/2028 OMFIT 2016-3 (e) 350 317 4.33 % 5 years 06/07/2016 06/2031 OMFIT 2017-1 (f) 947 900 2.66 % 2 years 09/06/2017 09/2032 Total consumer securitizations 7,680 Auto Securitization: ODART 2016-1 (g) 754 188 2.91 % — 07/19/2016 Various ODART 2017-1 (h) 300 268 2.61 % 1 year 02/01/2017 Various ODART 2017-2 (i) 605 575 2.63 % 1 year 12/11/2017 Various Total auto securitizations 1,031 Total secured structured financings $ 8,711 * Issue Amount includes the retained interest amounts as detailed below while the Current Note Amounts Outstanding balances include pay-downs subsequent to note issuance and exclude retained interest amounts. (a) SLFT 2016-A Securitization. We initially retained $ 32 million of the asset-backed notes. (b) SLFT 2017-A Securitization. We initially retained $26 million of the Class A notes, $2 million of the Class B notes, $2 million of the Class C notes and $3 million of the Class D notes. (c) OMFIT 2016-1 Securitization. We initially retained $86 million of the Class C and Class D notes. On May 17, 2016, $45 million of the notes represented by Class C were sold. (d) OMFIT 2016-2 Securitization. We initially retained $157 million of the Class C and Class D notes. On July 25, 2016, $83 million of the notes represented by Class C were sold. (e) OMFIT 2016-3 Securitization. We initially retained $33 million of the Class D notes. (f) OMFIT 2017-1 Securitization. We initially retained $30 million of the Class A-1 notes, $6 million of the Class A-2 notes, $3 million of the Class B notes, $3 million of the Class C notes and $5 million of the Class D notes. (g) ODART 2016-1 Securitization. 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. (h) ODART 2017-1 Securitization. The maturity dates of the notes occur in October 2020 for the Class A notes, June 2021 for the Class B notes, August 2021 for the Class C notes, December 2021 for the Class D notes, and January 2025 for the Class E notes. We initially retained $11 million of the Class A notes, $1 million of each of the Class B, Class C, and Class D notes, and the entire $18 million of the Class E notes. (i) ODART 2017-2 Securitization. The maturity dates of the notes occur in December 2021 for the Class A notes, November 2023 for the Class B notes, July 2024 for the Class C notes, October 2024 for the Class D notes, and November 2025 for the Class E notes. We initially retained $19 million of the Class A notes, $4 million of the Class B notes, $3 million of the Class C notes, $2 million of the Class D notes and $2 million of the Class E notes. |
Schedule of borrowings under conduit facilities | As of December 31, 2017 , our borrowings under conduit facilities consisted of the following: (dollar in millions) Note Maximum Amount Drawn Revolving Period End Backed by Loans Acquired from Subsidiaries of Due and Payable (a) First Avenue Funding, LLC $ 250 $ — June 2018 SFC - auto loans (b) Seine River Funding, LLC 500 — December 2019 SFC - personal loans December 2022 OneMain Financial B6 Warehouse Trust 600 — February 2019 OMFH - personal loans February 2021 Rocky River Funding, LLC 250 — September 2019 OMFH - personal loans October 2020 OneMain Financial Funding VII, LLC 650 — October 2019 OMFH - personal loans November 2021 Thur River Funding, LLC 350 — June 2020 SFC - personal loans February 2027 OneMain Financial Funding IX, LLC 600 — June 2020 OMFH - personal loans July 2021 Mystic River Funding, LLC 850 — September 2020 SFC - personal loans October 2023 Fourth Avenue Auto Funding, LLC 250 — September 2020 SFC - auto loans October 2021 OneMain Financial Auto Funding I, LLC 750 — October 2020 OMFH - auto loans November 2027 Total $ 5,050 $ — (a) The date following the revolving period, that the principal balance of the outstanding loans, if any, will be reduced as cash payments are received on the underlying loans and will be due and payable in full. (b) For First Avenue Funding, LLC, 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 Funding, LLC. During the 2017 period we voluntarily terminated the following conduit facilities concurrently with the execution of certain conduit facilities set forth in the table above: Termination Date Midbrook 2013-VFN1 Trust 4/13/2017 OneMain Financial B5 Warehouse Trust 4/13/2017 Sumner Brook 2013-VFN1 Trust 6/29/2017 Whitford Brook 2014-VFN1 Trust 7/14/2017 OneMain Financial B3 Warehouse Trust 7/14/2017 Springleaf 2013-VFN1 Trust 9/28/2017 Second Avenue Funding LLC 9/29/2017 OneMain Financial B4 Warehouse Trust 11/8/2017 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Finance receivable related: Payable to OMH: Unearned premium reserves 515 508 Claim reserves 75 78 Subtotal (a) 590 586 Payable to third-party beneficiaries: Unearned premium reserves 99 98 Benefit reserves 103 105 Claim reserves 18 20 Subtotal (b) 220 223 Non-finance receivable related: Unearned premium reserves 81 86 Benefit reserves 375 388 Claim reserves 61 60 Subtotal (b) 517 534 Total $ 1,327 $ 1,343 (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, 2017 2016 2015 Balance at beginning of period $ 158 $ 177 $ 70 Less reinsurance recoverables (26 ) (26 ) (22 ) Net balance at beginning of period 132 151 48 Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition — — 104 Additions for losses and loss adjustment expenses incurred to: Current year 188 203 83 Prior years * 5 (20 ) 5 Total 193 183 88 Reductions for losses and loss adjustment expenses paid related to: Current year (115 ) (124 ) (63 ) Prior years (78 ) (78 ) (26 ) Total (193 ) (202 ) (89 ) Foreign currency translation adjustment (1 ) — — Net balance at end of period 131 132 151 Plus reinsurance recoverables 23 26 26 Balance at end of period $ 154 $ 158 $ 177 * Reflects (i) a shortfall in the prior years’ net reserves of $5 million at December 31, 2017 , |
Short-duration Insurance Contracts, Claims Development | Incurred claims and allocated claim adjustment expenses, net of reinsurance, as of December 31, 2017 , were as follows: At December 31, 2017 (dollars in millions) 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 Incurred-but- not-reported Liabilities (b) Cumulative Number of Reported Claims Cumulative Frequency (c) Credit Insurance Accident Year 2013 $ 140 $ 127 $ 125 $ 124 $ 124 — 50,295 2.7 % 2014 — 145 132 130 131 3 51,776 2.7 % 2015 — — 138 129 129 8 52,505 2.8 % 2016 — — — 138 135 20 51,558 2.8 % 2017 — — — — 136 59 39,329 2.2 % Total $ 655 (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, 2017 , were as follows: (dollars in millions) 2013 * 2014 * 2015 * 2016 * 2017 Credit Insurance Accident Year 2013 $ 68 $ 105 $ 115 $ 121 $ 124 2014 — 71 110 121 128 2015 — — 71 109 121 2016 — — — 75 115 2017 — — — — 77 Total $ 565 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claim adjustment expenses, net of reinsurance $ 90 * 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, 2017 2016 * 2015 * Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: Credit insurance $ 90 $ 96 $ 105 Other short-duration insurance lines 22 20 25 Total 112 116 130 Reinsurance recoverable on unpaid claims: Other short-duration insurance lines 20 22 22 Insurance lines other than short-duration 22 20 25 Total gross liability for unpaid claims and claim adjustment expense $ 154 $ 158 $ 177 * 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, 2017 , were as follows: Years 1 2 3 4 5 Credit insurance 55.4 % 29.4 % 8.9 % 4.8 % 2.5 % |
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, 2017 2016 2015 Property and casualty Yosemite $ 19 $ 11 $ 15 Triton 31 14 3 Life and health Merit $ 37 $ 20 $ (1 ) AHL 34 71 11 |
Schedule of statutory capital and surplus for insurance companies by type of insurance | Statutory capital and surplus for our insurance companies by type of insurance were as follows: (dollars in millions) December 31, 2017 2016 Property and casualty Yosemite $ 42 $ 63 Triton 170 139 Life and health Merit $ 79 $ 133 AHL 130 215 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of components of other liabilities | Components of other liabilities were as follows: (dollars in millions) December 31, 2017 2016 Payables to parent and affiliates * $ 189 $ 39 Accrued expenses and other liabilities 79 93 Accrued interest on debt 58 61 Salary and benefit liabilities 31 45 Insurance liabilities 12 14 Loan principal warranty reserve 8 14 Retirement plans 5 31 Other 28 43 Total $ 410 $ 340 * Payables to parent and affiliates at December 31, 2017 primarily consisted of payable to OGSC for services provided to SFC under its intercompany service agreements. See Note 12 for further information regarding SFC’s intercompany agreements. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of par value and shares authorized | Par value and shares authorized at December 31, 2017 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, 2017 2016 2017 2016 Shares issued and outstanding — — 10,160,021 10,160,021 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 Balance at beginning of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Other comprehensive income before reclassifications 14 3 4 21 Reclassification adjustments from accumulated other comprehensive loss (9 ) — — (9 ) Balance at end of period $ 4 $ (1 ) $ 3 $ 6 Year Ended December 31, 2016 Balance at beginning of period $ (14 ) $ (19 ) $ — $ (33 ) Other comprehensive income before reclassifications 23 15 3 41 Reclassification adjustments from accumulated other comprehensive loss (10 ) — (4 ) (14 ) Balance at end of period $ (1 ) $ (4 ) $ (1 ) $ (6 ) Year Ended December 31, 2015 Balance at beginning of period $ 12 $ (13 ) $ 4 $ 3 Other comprehensive loss before reclassifications (18 ) (6 ) (4 ) (28 ) Reclassification adjustments from accumulated other comprehensive loss (8 ) — — (8 ) Balance at end of period $ (14 ) $ (19 ) $ — $ (33 ) |
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, 2017 2016 2015 Unrealized gains on investment securities: Reclassification from accumulated other comprehensive income (loss) to investment revenues, before taxes $ 14 $ 15 $ 12 Income tax effect (5 ) (5 ) (4 ) Reclassification from accumulated other comprehensive income (loss) to investment revenues, net of taxes 9 10 8 Unrealized gains on foreign currency translation adjustments: Reclassification from accumulated other comprehensive income (loss) to other revenues — 4 — Total $ 9 $ 14 $ 8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Components of income (loss) before income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Income (loss) before income tax expense (benefit) - U.S. operations $ 380 $ 380 $ (208 ) Income before income tax expense - foreign operations 15 17 12 Total $ 395 $ 397 $ (196 ) |
Schedule of components of benefit from income taxes | Components of income tax expense (benefit) were as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Current: Federal $ 190 $ 210 $ 80 Foreign 2 1 1 State 8 21 5 Total current 200 232 86 Deferred: Federal 34 (92 ) (192 ) Foreign * — 5 — State 9 (18 ) (16 ) Total deferred 43 (105 ) (208 ) Total $ 243 $ 127 $ (122 ) * Deferred foreign income taxes were less than $1 million during the 2017 and 2015 periods and, therefore, are 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 income tax rate were as follows: Years Ended December 31, 2017 2016 2015 Statutory federal income tax rate 35.00 % 35.00 % 35.00 % Impact of Tax Act 21.69 — — State income taxes, net of federal 2.63 0.48 7.62 Return to provision adjustment 0.81 0.26 0.89 Excess tax benefit on share-based compensation 0.33 (0.18 ) — Tax impact of United Kingdom subsidiary liquidation — (0.54 ) — Non-controlling interests — (2.49 ) 22.87 Nondeductible compensation — — (2.78 ) Other, net 1.09 (0.66 ) (1.14 ) Effective income tax rate 61.55 % 31.87 % 62.46 % |
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 income tax rate if recognized) is as follows: (dollars in millions) Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 16 $ 15 $ 4 Increases in tax positions for current years 1 2 10 Increases in tax positions for prior years — — 4 Lapse in statute of limitations (2 ) (1 ) — Settlements with tax authorities — — (1 ) Decreases in tax positions for prior years — — (2 ) Balance at end of year $ 15 $ 16 $ 15 |
Schedule of components of deferred tax assets and liabilities | Components of deferred tax assets and liabilities were as follows: (dollars in millions) December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 146 $ 246 State taxes, net of federal 65 58 Mark-to-market 55 55 Pension/employee benefits 5 19 Acquisition costs 6 6 Federal and foreign net operating losses and tax attributes 5 4 Insurance reserves 3 — Legal and warranty reserve 2 6 Other intangibles 2 1 Other 9 9 Total 298 404 Deferred tax liabilities: Debt fair value adjustment 44 90 Goodwill 41 37 Deferred loan fees 14 12 Discount - debt exchange 11 16 Deferred insurance commissions 2 2 Impact of tax accounting method change — 38 Insurance Reserves — 2 Other 5 1 Total 117 198 Net deferred tax assets before valuation allowance 181 206 Valuation allowance (44 ) (29 ) Net deferred tax assets $ 137 $ 177 |
Lease Commitments, Rent Expen49
Lease Commitments, Rent Expense, and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2018 $ 52 2019 40 2020 30 2021 20 2022 11 2023+ 14 Total $ 167 |
Schedule of Finance Receivables Activity in Reserve for Sales Recourse Obligations | The activity in our reserve for sales recourse obligations was as follows: (dollars in millions) At or for the Years Ended December 31, 2017 2016 2015 Balance at beginning of period $ 13 $ 15 $ 24 Recourse losses (1 ) — (2 ) Provision for recourse obligations, net of recoveries * (4 ) (2 ) (7 ) Balance at end of period $ 8 $ 13 $ 15 * Reflects the elimination of the reserve associated with other prior sales of finance receivables. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 1,382,920 $ 35.86 Granted 407,184 27.85 Vested (575,322 ) 31.86 Forfeited (73,172 ) 38.10 Unvested at December 31, 2017 1,141,610 34.87 1.91 |
Summary of performance activity | The following table summarizes the performance-based stock activity and related information for the Omnibus Plan for 2017 : Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Term (in Years) Unvested as of January 1, 2017 407,948 $ 25.94 Granted 90,072 24.98 Vested (92,000 ) 24.78 Forfeited (136,394 ) 25.70 Unvested at December 31, 2017 269,626 26.14 3.78 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of information about the Company's segments as well as reconciliations to consolidated financial statement amounts | The following tables present information about the Company’s segments, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2017 Interest income $ 3,296 $ — $ 23 $ — $ (132 ) $ 3,187 Interest expense 765 — 21 — 30 816 Provision for finance receivable losses 955 — 7 — (15 ) 947 Net interest income (loss) after provision for finance receivable losses 1,576 — (5 ) — (147 ) 1,424 Other revenues (b) 549 — 23 — (32 ) 540 Acquisition-related transaction and integration expenses 66 — 6 — (3 ) 69 Other expenses 1,458 2 11 — 29 1,500 Income (loss) before income tax expense (benefit) $ 601 $ (2 ) $ 1 $ — $ (205 ) $ 395 Assets (c) $ 16,793 $ — $ 680 $ — $ 2,172 $ 19,645 (dollars in millions) Consumer and Insurance Acquisitions and Servicing Other (a) Eliminations Segment to Consolidated Total At or for the Year Ended December 31, 2016 Interest income $ 3,314 $ 102 $ 51 $ — $ (371 ) $ 3,096 Interest expense 738 20 43 — 55 856 Provision for finance receivable losses 908 14 6 — 1 929 Net interest income (loss) after provision for finance receivable losses 1,668 68 2 — (427 ) 1,311 Net gain on sale of SpringCastle interests — 167 — — — 167 Other revenues (b) 609 — (16 ) — (6 ) 587 Acquisition related transaction and integration expenses 100 1 27 — (20 ) 108 Other expenses 1,461 16 29 — 54 1,560 Income before income taxes 716 218 (70 ) — (467 ) 397 Income before income tax attributable to non-controlling interests — 28 — — — 28 Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation $ 716 $ 190 $ (70 ) $ — $ (467 ) $ 369 Assets (c) $ 15,783 $ — $ 590 $ — $ 1,967 $ 18,340 At or for the Year Ended December 31, 2015 Interest income $ 1,470 $ 455 $ 76 $ — $ (91 ) $ 1,910 Interest expense 242 87 268 (5 ) 123 715 Provision for finance receivable losses 346 68 (1 ) — 298 711 Net interest income (loss) after provision for finance receivable losses 882 300 (191 ) 5 (512 ) 484 Other revenues 274 5 19 (5 ) (18 ) 275 Acquisition related transaction and integration expenses 16 1 48 — (3 ) 62 Other expenses 768 61 50 — 14 893 Income (loss) before income tax expense (benefit) 372 243 (270 ) — (541 ) (196 ) Income before income tax attributable to non-controlling interests — 127 — — — 127 Income (loss) before income tax expense (benefit) attributable to Springleaf Finance Corporation $ 372 $ 116 $ (270 ) $ — $ (541 ) $ (323 ) Assets $ 15,875 $ 1,784 $ 1,415 $ — $ 2,322 $ 21,396 (a) Real Estate segment has been combined with “Other” for the prior period. (b) Other revenues reported in “Other” primarily includes interest income on the SFC’s note receivable from SFI. See Note 12 for further information on the notes receivable from parent and affiliates. (c) Assets reported in “Other” primarily includes notes receivable from parent discussed above. See Note 12 for further information on the note receivable from parent. 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 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. Interest expense for unsecured debt is recorded to each of the segments using a weighted average interest rate applied to allocated average unsecured debt. Average unsecured debt allocations for the periods presented are as follows: Subsequent to the OneMain Acquisition Total average unsecured debt is allocated as follows: l Other - at 100% of asset base. (Asset base represents the average net finance receivables including finance receivables held for sale); and l Consumer and Insurance - receives remainder of unallocated average debt. 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 $208 million for Other. For the period first quarter 2015 to the OneMain Acquisition Total average unsecured debt was allocated to Consumer and Insurance and Other, such that the total debt allocated across each segment equaled 83% of the Consumer and Insurance asset base, and 100% of the Other 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; and l Other - average net finance receivables, including average net finance receivables held for sale, investments including proceeds from Real Estate sales, cash and cash equivalents, less proceeds from equity issuance in 2015 and operating cash reserve and cash included in other segments. Provision for finance receivable losses Directly correlated with specific segment, except for allocations related to personal loans and retail in 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: l Net gain (loss) on repurchases and repayments of debt - Allocated to each of the segments based on the interest expense allocation of debt. l Gains and losses on foreign currency exchange - Allocated to each of the segments based on the interest expense allocation of debt. Acquisition-related transaction and integration expenses Consists of: (i) acquisition-related transaction and integration costs related to the OneMain Acquisition, including legal and other professional fees, which we primarily report in Other, as these are costs related to acquiring the business as opposed to operating the business; (ii) software termination costs, which are allocated to Consumer and Insurance; and (iii) incentive compensation incurred above and beyond expected cost from acquiring and retaining talent in relation to the OneMain Acquisition, which are allocated to each of the segments based on services provided. Other 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; • Acquisition-related transaction and integration expenses - reestablishes the amortization of purchased software assets on a historical cost basis; • Other expenses - reestablishes expenses on a historical cost basis by reversing the impact of amortization from acquired intangible assets and including amortization of other historical deferred costs; and • Assets - revalues assets based on their fair values at the effective date of the OneMain Acquisition and the Fortress Acquisition. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | Fair Value Measurements Using Total Fair Value Total Carrying Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2017 Assets Cash and cash equivalents $ 904 $ 54 $ — $ 958 $ 958 Investment securities 36 1,654 7 1,697 1,697 Net finance receivables, less allowance for finance receivable losses — — 15,607 15,607 14,217 Finance receivables held for sale — — 139 139 132 Notes receivable from parent — 391 — 391 391 Restricted cash and restricted cash equivalents 498 — — 498 498 Other assets (a) — 4 12 16 16 Liabilities Long-term debt $ — $ 15,625 $ — $ 15,625 $ 15,050 Other liabilities (b) — 189 — 189 189 December 31, 2016 Assets Cash and cash equivalents $ 480 $ 73 $ — $ 553 $ 553 Investment securities 31 1,724 9 1,764 1,764 Net finance receivables, less allowance for finance receivable losses — — 13,857 13,857 13,000 Finance receivables held for sale — — 159 159 153 Notes receivable from parent — 285 — 285 285 Restricted cash and restricted cash equivalents 568 — — 568 568 Other assets (a) — 77 34 111 113 Liabilities Long-term debt $ — $ 14,498 $ — $ 14,498 $ 13,959 Other liabilities (b) — 39 — 39 39 (a) Other assets includes commercial mortgage loans, escrow advance receivables, and receivables from parent and affiliates at December 31, 2017 and commercial mortgage loans, escrow advance receivables, receivables from parent and affiliates, and receivables related to sales of real estate loans and related trust assets at December 31, 2016. (b) Consists of payables to parent and affiliates. |
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, 2017 Assets Cash equivalents in mutual funds $ 688 $ — $ — $ 688 Cash equivalents in securities — 54 — 54 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 28 — 28 Obligations of states, municipalities, and political subdivisions — 135 — 135 Non-U.S. government and government sponsored entities — 60 — 60 Certificates of deposit and commercial paper — 125 — 125 Corporate debt — 946 2 948 RMBS — 99 — 99 CMBS — 87 — 87 CDO/ABS — 95 1 96 Total bonds — 1,575 3 1,578 Preferred stock 7 7 — 14 Common stock 23 — — 23 Other long-term investments — — 1 1 Total available-for-sale securities (b) 30 1,582 4 1,616 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 66 2 68 RMBS — 1 — 1 CMBS — — — — CDO/ABS — 4 — 4 Total bonds — 72 2 74 Preferred stock 6 — — 6 Total other securities 6 72 2 80 Total investment securities 36 1,654 6 1,696 Restricted cash in mutual funds 484 — — 484 Total $ 1,208 $ 1,708 $ 6 $ 2,922 (a) Due to the insignificant activity within the Level 3 assets during 2017 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2017 , which is carried at cost. Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 (a) December 31, 2016 Assets Cash equivalents in mutual funds $ 286 $ — $ — $ 286 Cash equivalents in securities — 73 — 73 Investment securities: Available-for-sale securities Bonds: U.S. government and government sponsored entities — 31 — 31 Obligations of states, municipalities, and political subdivisions — 145 — 145 Non-U.S. government and government sponsored entities — 118 — 118 Corporate debt — 1,025 — 1,025 RMBS — 100 — 100 CMBS — 108 — 108 CDO/ABS — 98 4 102 Total bonds — 1,625 4 1,629 Preferred stock 8 8 — 16 Common stock 17 — — 17 Other long-term investments — — 2 2 Total available-for-sale securities (b) 25 1,633 6 1,664 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 83 2 85 RMBS — 1 — 1 CMBS — 1 — 1 CDO/ABS — 5 — 5 Total bonds — 91 2 93 Preferred stock 6 — — 6 Total other securities 6 91 2 99 Total investment securities 31 1,724 8 1,763 Restricted cash in mutual funds 553 — — 553 Total $ 870 $ 1,797 $ 8 $ 2,675 (a) Due to the insignificant activity within the Level 3 assets during 2016 , we have omitted the additional disclosures relating to the changes in Level 3 assets measured at fair value on a recurring basis and the quantitative information about Level 3 unobservable inputs. (b) Excludes an immaterial interest in a limited partnership that we account for using the equity method and FHLB common stock of $1 million at December 31, 2016 , which is carried at cost. |
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, 2017 Assets Real estate owned $ — $ — $ 6 $ 6 $ 3 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 * 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, 2017 and 2016 was as follows: Range (Weighted Average) Valuation Technique(s) Unobservable Input December 31, 2017 December 31, 2016 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 53
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly financial data | Our selected quarterly financial data for 2017 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 853 $ 806 $ 772 $ 756 Interest expense 204 207 203 202 Provision for finance receivable losses 229 242 233 243 Other revenues 139 149 117 135 Other expenses 382 401 386 400 Income before income taxes 177 105 67 46 Income taxes 161 44 20 18 Net income $ 16 $ 61 $ 47 $ 28 Our selected quarterly financial data for 2016 was as follows: (dollars in millions) Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 766 $ 767 $ 739 $ 824 Interest expense 201 215 214 226 Provision for finance receivable losses 256 261 218 194 Other revenues 138 151 158 307 Other expenses 409 396 416 447 Income before income taxes 38 46 49 264 Income taxes — 16 20 91 Net income 38 30 29 173 Net income attributable to non-controlling interests — — — 28 Net income attributable to Springleaf Finance Corporation $ 38 $ 30 $ 29 $ 145 |
Nature of Operations - paragrap
Nature of Operations - paragraph 2 (Details) | Dec. 31, 2017 |
Springleaf Financial Holdings, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 44.00% |
Significant Transactions - Bala
Significant Transactions - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 958 | $ 553 | $ 893 | |
Investment securities | 1,697 | 1,764 | ||
Net finance receivables: | ||||
Personal loans of consolidated VIEs | 14,775 | 13,531 | ||
Real estate loans | 128 | 144 | ||
Retail sales finance | 6 | 11 | ||
Net finance receivables | 14,909 | 13,686 | ||
Unearned insurance premium and claim reserves | (590) | (586) | ||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | (692) | (686) | (589) | $ (180) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 13,627 | 12,414 | ||
Finance receivables held for sale | 132 | 153 | ||
Notes receivable from parent and affiliates | 391 | 285 | ||
Restricted cash and restricted cash equivalents | 498 | 568 | 676 | |
Goodwill | 1,422 | 1,422 | 1,440 | |
Other intangible assets | 439 | 491 | ||
Other assets | 481 | 690 | ||
Total assets | 19,645 | 18,340 | 21,396 | |
Liabilities and Shareholder’s Equity | ||||
Carrying Value | 15,050 | 13,959 | ||
Note payable to parent and affiliates | 0 | 0 | ||
Insurance claims and policyholder liabilities | 737 | 757 | ||
Deferred and accrued taxes | 46 | 11 | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 410 | 340 | ||
Total liabilities | 16,243 | 15,067 | ||
Commitments and contingent liabilities (Note 20) | ||||
Shareholder’s equity: | ||||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016 | 5 | 5 | ||
Additional paid-in capital | 1,909 | 1,906 | ||
Accumulated other comprehensive income (loss) | 6 | (6) | ||
Retained earnings | 1,482 | 1,368 | ||
Total shareholder’s equity | 3,402 | 3,273 | ||
Total liabilities and shareholder’s equity | 19,645 | 18,340 | ||
As Reported SFC | ||||
Assets | ||||
Cash and cash equivalents | 244 | 240 | 321 | |
Investment securities | 536 | 582 | ||
Net finance receivables: | ||||
Personal loans of consolidated VIEs | 5,308 | 4,804 | ||
Real estate loans | 128 | 144 | ||
Retail sales finance | 6 | 11 | ||
Net finance receivables | 5,442 | 4,959 | ||
Unearned insurance premium and claim reserves | (108) | (212) | ||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | (240) | (204) | ||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 5,094 | 4,543 | ||
Finance receivables held for sale | 132 | 153 | ||
Notes receivable from parent and affiliates | 4,488 | 3,723 | ||
Restricted cash and restricted cash equivalents | 169 | 227 | 295 | |
Goodwill | 0 | 0 | ||
Other intangible assets | 15 | 15 | ||
Other assets | 146 | 236 | ||
Total assets | 10,824 | 9,719 | ||
Liabilities and Shareholder’s Equity | ||||
Carrying Value | 7,865 | 6,837 | ||
Note payable to parent and affiliates | 0 | 0 | ||
Insurance claims and policyholder liabilities | 261 | 248 | ||
Deferred and accrued taxes | 78 | 106 | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 214 | 185 | ||
Total liabilities | 8,418 | 7,376 | ||
Shareholder’s equity: | ||||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016 | 5 | 5 | ||
Additional paid-in capital | 799 | 799 | ||
Accumulated other comprehensive income (loss) | 0 | (7) | ||
Retained earnings | 1,602 | 1,546 | ||
Total shareholder’s equity | 2,406 | 2,343 | ||
Total liabilities and shareholder’s equity | 10,824 | 9,719 | ||
Independence | ||||
Assets | ||||
Cash and cash equivalents | 714 | 313 | 572 | |
Investment securities | 1,172 | 1,188 | ||
Net finance receivables: | ||||
Personal loans of consolidated VIEs | 9,467 | 8,727 | ||
Real estate loans | 0 | 0 | ||
Retail sales finance | 0 | 0 | ||
Net finance receivables | 9,467 | 8,727 | ||
Unearned insurance premium and claim reserves | (482) | (374) | ||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | (452) | (482) | ||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 8,533 | 7,871 | ||
Finance receivables held for sale | 0 | 0 | ||
Notes receivable from parent and affiliates | 0 | 0 | ||
Restricted cash and restricted cash equivalents | 329 | 341 | 381 | |
Goodwill | 1,422 | 1,422 | ||
Other intangible assets | 424 | 476 | ||
Other assets | 402 | 552 | ||
Total assets | 12,996 | 12,163 | ||
Liabilities and Shareholder’s Equity | ||||
Carrying Value | 7,195 | 7,127 | ||
Note payable to parent and affiliates | 4,097 | 3,438 | ||
Insurance claims and policyholder liabilities | 476 | 509 | ||
Deferred and accrued taxes | 3 | 0 | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 229 | 159 | ||
Total liabilities | 12,000 | 11,233 | ||
Shareholder’s equity: | ||||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016 | 0 | 0 | ||
Additional paid-in capital | 1,110 | 1,107 | ||
Accumulated other comprehensive income (loss) | 6 | 1 | ||
Retained earnings | (120) | (178) | ||
Total shareholder’s equity | 996 | 930 | ||
Total liabilities and shareholder’s equity | 12,996 | 12,163 | ||
Adjustments | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | |
Investment securities | (11) | (6) | ||
Net finance receivables: | ||||
Personal loans of consolidated VIEs | 0 | 0 | ||
Real estate loans | 0 | 0 | ||
Retail sales finance | 0 | 0 | ||
Net finance receivables | 0 | 0 | ||
Unearned insurance premium and claim reserves | 0 | 0 | ||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $465 million in 2017 and $501 million in 2016) | 0 | 0 | ||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 0 | 0 | ||
Finance receivables held for sale | 0 | 0 | ||
Notes receivable from parent and affiliates | (4,097) | (3,438) | ||
Restricted cash and restricted cash equivalents | 0 | 0 | $ 0 | |
Goodwill | 0 | 0 | ||
Other intangible assets | 0 | 0 | ||
Other assets | (67) | (98) | ||
Total assets | (4,175) | (3,542) | ||
Liabilities and Shareholder’s Equity | ||||
Carrying Value | (10) | (5) | ||
Note payable to parent and affiliates | (4,097) | (3,438) | ||
Insurance claims and policyholder liabilities | 0 | 0 | ||
Deferred and accrued taxes | (35) | (95) | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | (33) | (4) | ||
Total liabilities | (4,175) | (3,542) | ||
Shareholder’s equity: | ||||
Common stock, par value $.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at December 31, 2017 and 2016 | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Accumulated other comprehensive income (loss) | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Total shareholder’s equity | 0 | 0 | ||
Total liabilities and shareholder’s equity | $ (4,175) | $ (3,542) |
Significant Transactions - Stat
Significant Transactions - Statements of Operations (Details) - USD ($) $ in Millions | May 02, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Interest income: | ||||||||||||
Finance charges | $ 3,174 | $ 3,022 | $ 1,850 | |||||||||
Finance receivables held for sale originated as held for investment | 13 | 74 | 60 | |||||||||
Total interest income | $ 853 | $ 806 | $ 772 | $ 756 | $ 766 | $ 767 | $ 739 | $ 824 | 3,187 | 3,096 | 1,910 | |
Interest expense | 204 | 207 | 203 | 202 | 201 | 215 | 214 | 226 | 816 | 856 | 715 | |
Net interest income | 2,371 | 2,240 | 1,195 | |||||||||
Provision for finance receivable losses | 229 | 242 | 233 | 243 | 256 | 261 | 218 | 194 | 947 | 929 | 711 | |
Net interest income after provision for finance receivable losses | 1,424 | 1,311 | 484 | |||||||||
Other revenues: | ||||||||||||
Insurance | 420 | 449 | 211 | |||||||||
Investment | 73 | 86 | 50 | |||||||||
Interest income on notes receivable from parent | 23 | 19 | 15 | |||||||||
Net loss on repurchases and repayments of debt | (29) | (17) | 0 | |||||||||
Net gain on sale of SpringCastle interests | 167 | 0 | 167 | 0 | ||||||||
Net gain on sales of personal and real estate loans and related trust assets | $ 22 | 0 | 18 | 0 | ||||||||
Other | 53 | 32 | (1) | |||||||||
Total other revenues | 139 | 149 | 117 | 135 | 138 | 151 | 158 | 307 | 540 | 754 | 275 | |
Operating expenses: | ||||||||||||
Salaries and benefits | 729 | 723 | 426 | |||||||||
Acquisition-related transaction and integration expenses | 69 | 108 | 62 | |||||||||
Other operating expenses | 587 | 670 | 371 | |||||||||
Insurance policy benefits and claims | 184 | 167 | 96 | |||||||||
Total other expenses | 382 | 401 | 386 | 400 | 409 | 396 | 416 | 447 | 1,569 | 1,668 | 955 | |
Income (loss) before income tax expense (benefit) | 177 | 105 | 67 | 46 | 38 | 46 | 49 | 264 | 395 | 397 | (196) | |
Income tax expense (benefit) | 161 | 44 | 20 | 18 | 0 | 16 | 20 | 91 | 243 | 127 | (122) | |
Net income (loss) | $ 16 | $ 61 | $ 47 | $ 28 | 38 | 30 | 29 | 173 | 152 | 270 | (74) | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | 28 | 0 | 28 | 127 | |||||
Net income (loss) attributable to Springleaf Finance Corporation | $ 38 | $ 30 | $ 29 | $ 145 | 152 | 242 | (201) | |||||
As Reported SFC | ||||||||||||
Interest income: | ||||||||||||
Finance charges | 1,228 | 1,276 | 1,597 | |||||||||
Finance receivables held for sale originated as held for investment | 13 | 74 | 60 | |||||||||
Total interest income | 1,241 | 1,350 | 1,657 | |||||||||
Interest expense | 517 | 556 | 667 | |||||||||
Net interest income | 724 | 794 | 990 | |||||||||
Provision for finance receivable losses | 324 | 329 | 339 | |||||||||
Net interest income after provision for finance receivable losses | 400 | 465 | 651 | |||||||||
Other revenues: | ||||||||||||
Insurance | 140 | 160 | 158 | |||||||||
Investment | 28 | 31 | 49 | |||||||||
Interest income on notes receivable from parent | 255 | 214 | 42 | |||||||||
Net loss on repurchases and repayments of debt | (28) | (17) | ||||||||||
Net gain on sale of SpringCastle interests | 167 | |||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 18 | |||||||||||
Other | 12 | 1 | (6) | |||||||||
Total other revenues | 407 | 574 | 243 | |||||||||
Operating expenses: | ||||||||||||
Salaries and benefits | 307 | 347 | 364 | |||||||||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | |||||||||
Other operating expenses | 251 | 291 | 299 | |||||||||
Insurance policy benefits and claims | 56 | 55 | 72 | |||||||||
Total other expenses | 614 | 693 | 735 | |||||||||
Income (loss) before income tax expense (benefit) | 193 | 346 | 159 | |||||||||
Income tax expense (benefit) | 99 | 113 | 18 | |||||||||
Net income (loss) | 94 | 233 | 141 | |||||||||
Net income attributable to non-controlling interests | 0 | 28 | 127 | |||||||||
Net income (loss) attributable to Springleaf Finance Corporation | 94 | 205 | 14 | |||||||||
Independence | ||||||||||||
Interest income: | ||||||||||||
Finance charges | 1,946 | 1,746 | 253 | |||||||||
Finance receivables held for sale originated as held for investment | 0 | 0 | 0 | |||||||||
Total interest income | 1,946 | 1,746 | 253 | |||||||||
Interest expense | 531 | 502 | 75 | |||||||||
Net interest income | 1,415 | 1,244 | 178 | |||||||||
Provision for finance receivable losses | 623 | 600 | 372 | |||||||||
Net interest income after provision for finance receivable losses | 792 | 644 | (194) | |||||||||
Other revenues: | ||||||||||||
Insurance | 280 | 289 | 53 | |||||||||
Investment | 45 | 55 | 1 | |||||||||
Interest income on notes receivable from parent | 0 | 7 | 0 | |||||||||
Net loss on repurchases and repayments of debt | (1) | 0 | ||||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 0 | |||||||||||
Other | 69 | 31 | 5 | |||||||||
Total other revenues | 393 | 382 | 59 | |||||||||
Operating expenses: | ||||||||||||
Salaries and benefits | 442 | 427 | 73 | |||||||||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | |||||||||
Other operating expenses | 413 | 436 | 123 | |||||||||
Insurance policy benefits and claims | 128 | 112 | 24 | |||||||||
Total other expenses | 983 | 975 | 220 | |||||||||
Income (loss) before income tax expense (benefit) | 202 | 51 | (355) | |||||||||
Income tax expense (benefit) | 144 | 14 | (140) | |||||||||
Net income (loss) | 58 | 37 | (215) | |||||||||
Net income attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to Springleaf Finance Corporation | 58 | 37 | (215) | |||||||||
Adjustments | ||||||||||||
Interest income: | ||||||||||||
Finance charges | 0 | 0 | 0 | |||||||||
Finance receivables held for sale originated as held for investment | 0 | 0 | 0 | |||||||||
Total interest income | 0 | 0 | 0 | |||||||||
Interest expense | (232) | (202) | (27) | |||||||||
Net interest income | 232 | 202 | 27 | |||||||||
Provision for finance receivable losses | 0 | 0 | 0 | |||||||||
Net interest income after provision for finance receivable losses | 232 | 202 | 27 | |||||||||
Other revenues: | ||||||||||||
Insurance | 0 | 0 | 0 | |||||||||
Investment | 0 | 0 | 0 | |||||||||
Interest income on notes receivable from parent | (232) | (202) | (27) | |||||||||
Net loss on repurchases and repayments of debt | 0 | 0 | ||||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 0 | |||||||||||
Other | (28) | 0 | 0 | |||||||||
Total other revenues | (260) | (202) | (27) | |||||||||
Operating expenses: | ||||||||||||
Salaries and benefits | (20) | (51) | (11) | |||||||||
Acquisition-related transaction and integration expenses | 69 | 108 | 62 | |||||||||
Other operating expenses | (77) | (57) | (51) | |||||||||
Insurance policy benefits and claims | 0 | 0 | 0 | |||||||||
Total other expenses | (28) | 0 | 0 | |||||||||
Income (loss) before income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Net income (loss) | 0 | 0 | 0 | |||||||||
Net income attributable to non-controlling interests | 0 | 0 | 0 | |||||||||
Net income (loss) attributable to Springleaf Finance Corporation | $ 0 | $ 0 | $ 0 |
Significant Transactions - St57
Significant Transactions - Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Net income (loss) | $ 16 | $ 61 | $ 47 | $ 28 | $ 38 | $ 30 | $ 29 | $ 173 | $ 152 | $ 270 | $ (74) | |||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 229 | $ 242 | $ 233 | 243 | 256 | $ 261 | $ 218 | 194 | 947 | 929 | 711 | |||
Depreciation and amortization | 317 | 510 | 193 | |||||||||||
Deferred income tax charge (benefit) | 43 | (105) | (208) | |||||||||||
Non-cash incentive compensation from Initial Stockholder | 0 | 0 | 15 | |||||||||||
Net gain on liquidation of United Kingdom subsidiary | 0 | (4) | 0 | |||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 0 | (18) | 0 | |||||||||||
Net loss on repurchases and repayments of debt | 29 | 17 | 0 | |||||||||||
Share-based compensation expense, net of forfeitures | 5 | 8 | 2 | |||||||||||
Net gain on sale of SpringCastle interests | 167 | 0 | 167 | 0 | ||||||||||
Other | (5) | (9) | 2 | |||||||||||
Cash flows due to changes in: | ||||||||||||||
Other assets and other liabilities | 175 | (189) | 1 | |||||||||||
Insurance claims and policyholder liabilities | (22) | (64) | 27 | |||||||||||
Taxes receivable and payable | 43 | (38) | 131 | |||||||||||
Accrued interest and finance charges | (37) | 15 | (34) | |||||||||||
Other, net | 0 | 3 | (2) | |||||||||||
Net cash provided by operating activities | 1,647 | 1,158 | 764 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations of finance receivables held for investment and held for sale | (2,267) | (1,155) | (975) | |||||||||||
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 930 | 78 | |||||||||||
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired | 0 | 0 | (3,520) | |||||||||||
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | 26 | 0 | |||||||||||
Cash advances on intercompany note to parent | (355) | (297) | (327) | |||||||||||
Proceeds from repayments of principal on intercompany note to parent | 249 | 401 | 189 | |||||||||||
Cash received from CitiFinancial Credit Company | 0 | 23 | 0 | |||||||||||
Available-for-sale securities purchased | (671) | (746) | (525) | |||||||||||
Trading and other securities purchased | 0 | (17) | (1,474) | |||||||||||
Available-for-sale securities called, sold, and matured | 739 | 837 | 521 | |||||||||||
Trading and other securities called, sold, and matured | 18 | 63 | 3,779 | |||||||||||
Proceeds from sale of real estate owned | 4 | 8 | 14 | |||||||||||
Other, net | 3 | (10) | (14) | |||||||||||
Net cash used for investing activities | (2,280) | 63 | (2,254) | |||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 5,427 | 6,660 | 3,028 | |||||||||||
Repayments of long-term debt | (4,447) | (8,320) | (1,960) | |||||||||||
Proceeds from intercompany note payable | 0 | |||||||||||||
Distributions to joint venture partners | (18) | (77) | ||||||||||||
Excess tax benefit from share-based compensation | 1 | |||||||||||||
Payments on note payable to affiliate | 0 | |||||||||||||
Proceeds from intercompany note payable | 0 | 0 | ||||||||||||
Payments on intercompany note payable | 0 | |||||||||||||
Withholding tax on vested RSUs and PRSUs | (2) | (1) | 1 | |||||||||||
Capital contributions from parent | 0 | 10 | 1,100 | |||||||||||
Cash dividend of SFMC | (10) | |||||||||||||
Net cash provided by (used for) financing activities | 968 | (1,669) | 2,092 | |||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 335 | (448) | 602 | |||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,121 | 1,569 | 1,121 | 1,569 | 967 | |||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,456 | 1,121 | 1,456 | 1,121 | 1,569 | |||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | $ 958 | $ 553 | $ 893 | |||||||||||
Restricted cash and restricted cash equivalents | 498 | 568 | 676 | |||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,456 | 1,121 | 1,121 | 1,569 | 1,121 | 1,569 | 967 | 1,456 | 1,121 | 1,569 | ||||
Interest paid | (746) | (765) | (594) | |||||||||||
Income taxes received (paid) | (154) | (269) | 43 | |||||||||||
Supplemental non-cash activities | ||||||||||||||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 1,945 | 617 | |||||||||||
Increase in finance receivables held for investment financed with intercompany payable | 0 | 89 | 0 | |||||||||||
Transfer of finance receivables to real estate owned | 9 | 8 | 11 | |||||||||||
Net unsettled investment security purchases | 1 | 1 | 0 | |||||||||||
Non-cash dividend of SFMC | (28) | 0 | 0 | |||||||||||
As Reported SFC | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Net income (loss) | 94 | 233 | 141 | |||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 324 | 329 | 339 | |||||||||||
Depreciation and amortization | 143 | 144 | 92 | |||||||||||
Deferred income tax charge (benefit) | (82) | (83) | (50) | |||||||||||
Non-cash incentive compensation from Initial Stockholder | 15 | |||||||||||||
Net gain on liquidation of United Kingdom subsidiary | (4) | |||||||||||||
Net gain on sales of personal and real estate loans and related trust assets | (18) | |||||||||||||
Net loss on repurchases and repayments of debt | 28 | 17 | ||||||||||||
Share-based compensation expense, net of forfeitures | 0 | 1 | 2 | |||||||||||
Net gain on sale of SpringCastle interests | 167 | |||||||||||||
Other | 1 | 6 | (3) | |||||||||||
Cash flows due to changes in: | ||||||||||||||
Other assets and other liabilities | 107 | (37) | (48) | |||||||||||
Insurance claims and policyholder liabilities | (92) | (19) | 34 | |||||||||||
Taxes receivable and payable | 13 | 56 | 111 | |||||||||||
Accrued interest and finance charges | (95) | 14 | (23) | |||||||||||
Other, net | (3) | 3 | (2) | |||||||||||
Net cash provided by operating activities | 438 | 475 | 608 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations of finance receivables held for investment and held for sale | (783) | (557) | (799) | |||||||||||
Proceeds on sales of finance receivables held for sale originated as held for investment | 930 | 78 | ||||||||||||
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired | 0 | |||||||||||||
Proceeds from sale of SpringCastle interests, net of restricted cash released | 26 | |||||||||||||
Cash advances on intercompany note to parent | (1,837) | (1,042) | (3,720) | |||||||||||
Proceeds from repayments of principal on intercompany note to parent | 1,154 | 1,023 | 189 | |||||||||||
Cash received from CitiFinancial Credit Company | 0 | |||||||||||||
Available-for-sale securities purchased | (245) | (353) | (476) | |||||||||||
Trading and other securities purchased | (10) | (1,474) | ||||||||||||
Available-for-sale securities called, sold, and matured | 301 | 380 | 470 | |||||||||||
Trading and other securities called, sold, and matured | 1 | 20 | 3,779 | |||||||||||
Proceeds from sale of real estate owned | 4 | 8 | 14 | |||||||||||
Other, net | 12 | 26 | (12) | |||||||||||
Net cash used for investing activities | (1,393) | 451 | (1,951) | |||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 3,456 | 3,854 | 3,028 | |||||||||||
Repayments of long-term debt | (2,544) | (4,920) | (1,960) | |||||||||||
Proceeds from intercompany note payable | 0 | |||||||||||||
Distributions to joint venture partners | (18) | (77) | ||||||||||||
Excess tax benefit from share-based compensation | 1 | |||||||||||||
Payments on note payable to affiliate | (670) | |||||||||||||
Proceeds from intercompany note payable | 0 | 670 | ||||||||||||
Payments on intercompany note payable | 0 | |||||||||||||
Withholding tax on vested RSUs and PRSUs | (1) | (1) | ||||||||||||
Capital contributions from parent | 10 | 0 | ||||||||||||
Cash dividend of SFMC | (10) | |||||||||||||
Net cash provided by (used for) financing activities | 901 | (1,075) | 992 | |||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (54) | (149) | (351) | |||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 467 | 616 | 467 | 616 | 967 | |||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 413 | 467 | 413 | 467 | 616 | |||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | 244 | 240 | 321 | |||||||||||
Restricted cash and restricted cash equivalents | 169 | 227 | 295 | |||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 413 | 467 | 467 | 616 | 467 | 616 | 967 | 413 | 467 | 616 | ||||
Interest paid | (436) | (451) | (511) | |||||||||||
Income taxes received (paid) | (71) | (140) | 45 | |||||||||||
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 | ||||||||||||
Increase in finance receivables held for investment financed with intercompany payable | 89 | |||||||||||||
Transfer of finance receivables to real estate owned | 9 | 8 | 11 | |||||||||||
Net unsettled investment security purchases | 0 | 0 | ||||||||||||
Non-cash dividend of SFMC | (28) | |||||||||||||
Independence | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Net income (loss) | 58 | 37 | (215) | |||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 623 | 600 | 372 | |||||||||||
Depreciation and amortization | 174 | 366 | 101 | |||||||||||
Deferred income tax charge (benefit) | 125 | (22) | (158) | |||||||||||
Non-cash incentive compensation from Initial Stockholder | 0 | |||||||||||||
Net gain on liquidation of United Kingdom subsidiary | 0 | |||||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 0 | |||||||||||||
Net loss on repurchases and repayments of debt | 1 | 0 | ||||||||||||
Share-based compensation expense, net of forfeitures | 5 | 7 | 0 | |||||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||||
Other | (6) | (15) | 5 | |||||||||||
Cash flows due to changes in: | ||||||||||||||
Other assets and other liabilities | 68 | (152) | 49 | |||||||||||
Insurance claims and policyholder liabilities | 70 | (45) | (7) | |||||||||||
Taxes receivable and payable | 30 | (94) | 20 | |||||||||||
Accrued interest and finance charges | 54 | 1 | (11) | |||||||||||
Other, net | 3 | 0 | 0 | |||||||||||
Net cash provided by operating activities | 1,205 | 683 | 156 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations of finance receivables held for investment and held for sale | (1,484) | (598) | (176) | |||||||||||
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 0 | ||||||||||||
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired | (3,520) | |||||||||||||
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | |||||||||||||
Cash advances on intercompany note to parent | 0 | (670) | 0 | |||||||||||
Proceeds from repayments of principal on intercompany note to parent | 0 | 670 | 0 | |||||||||||
Cash received from CitiFinancial Credit Company | 23 | |||||||||||||
Available-for-sale securities purchased | (431) | (399) | (49) | |||||||||||
Trading and other securities purchased | (7) | |||||||||||||
Available-for-sale securities called, sold, and matured | 438 | 457 | 51 | |||||||||||
Trading and other securities called, sold, and matured | 17 | 43 | 0 | |||||||||||
Proceeds from sale of real estate owned | 0 | 0 | 0 | |||||||||||
Other, net | (9) | (36) | (2) | |||||||||||
Net cash used for investing activities | (1,469) | (517) | (3,696) | |||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 1,971 | 2,806 | 0 | |||||||||||
Repayments of long-term debt | (1,898) | (3,394) | 0 | |||||||||||
Proceeds from intercompany note payable | 3,393 | |||||||||||||
Distributions to joint venture partners | 0 | 0 | ||||||||||||
Excess tax benefit from share-based compensation | 0 | |||||||||||||
Payments on note payable to affiliate | (1,292) | |||||||||||||
Proceeds from intercompany note payable | 1,486 | 1,415 | ||||||||||||
Payments on intercompany note payable | (905) | |||||||||||||
Withholding tax on vested RSUs and PRSUs | (1) | 0 | ||||||||||||
Capital contributions from parent | 0 | 1,100 | ||||||||||||
Cash dividend of SFMC | 0 | |||||||||||||
Net cash provided by (used for) financing activities | 653 | (465) | 4,493 | |||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 389 | (299) | 953 | |||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 654 | 953 | 654 | 953 | 0 | |||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 1,043 | 654 | 1,043 | 654 | 953 | |||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | 714 | 313 | 572 | |||||||||||
Restricted cash and restricted cash equivalents | 329 | 341 | 381 | |||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,043 | 654 | 654 | 953 | 654 | 953 | 0 | 1,043 | 654 | 953 | ||||
Interest paid | (310) | (314) | (83) | |||||||||||
Income taxes received (paid) | (83) | (129) | (2) | |||||||||||
Supplemental non-cash activities | ||||||||||||||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 0 | ||||||||||||
Increase in finance receivables held for investment financed with intercompany payable | 0 | |||||||||||||
Transfer of finance receivables to real estate owned | 0 | 0 | 0 | |||||||||||
Net unsettled investment security purchases | 1 | 1 | ||||||||||||
Non-cash dividend of SFMC | 0 | |||||||||||||
Adjustments | ||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||
Net income (loss) | 0 | 0 | 0 | |||||||||||
Reconciling adjustments: | ||||||||||||||
Provision for finance receivable losses | 0 | 0 | 0 | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||
Deferred income tax charge (benefit) | 0 | 0 | 0 | |||||||||||
Non-cash incentive compensation from Initial Stockholder | 0 | |||||||||||||
Net gain on liquidation of United Kingdom subsidiary | 0 | |||||||||||||
Net gain on sales of personal and real estate loans and related trust assets | 0 | |||||||||||||
Net loss on repurchases and repayments of debt | 0 | 0 | ||||||||||||
Share-based compensation expense, net of forfeitures | 0 | 0 | 0 | |||||||||||
Net gain on sale of SpringCastle interests | 0 | |||||||||||||
Other | 0 | 0 | 0 | |||||||||||
Cash flows due to changes in: | ||||||||||||||
Other assets and other liabilities | 0 | 0 | 0 | |||||||||||
Insurance claims and policyholder liabilities | 0 | 0 | 0 | |||||||||||
Taxes receivable and payable | 0 | 0 | 0 | |||||||||||
Accrued interest and finance charges | 4 | 0 | 0 | |||||||||||
Other, net | 0 | 0 | 0 | |||||||||||
Net cash provided by operating activities | 4 | 0 | 0 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Net principal originations of finance receivables held for investment and held for sale | 0 | 0 | 0 | |||||||||||
Proceeds on sales of finance receivables held for sale originated as held for investment | 0 | 0 | ||||||||||||
Purchase of OneMain Financial Holdings, LLC, net of cash and restricted cash acquired | 0 | |||||||||||||
Proceeds from sale of SpringCastle interests, net of restricted cash released | 0 | |||||||||||||
Cash advances on intercompany note to parent | 1,482 | 1,415 | 3,393 | |||||||||||
Proceeds from repayments of principal on intercompany note to parent | (905) | (1,292) | 0 | |||||||||||
Cash received from CitiFinancial Credit Company | 0 | |||||||||||||
Available-for-sale securities purchased | 5 | 6 | 0 | |||||||||||
Trading and other securities purchased | 0 | 0 | ||||||||||||
Available-for-sale securities called, sold, and matured | 0 | 0 | 0 | |||||||||||
Trading and other securities called, sold, and matured | 0 | 0 | 0 | |||||||||||
Proceeds from sale of real estate owned | 0 | 0 | 0 | |||||||||||
Other, net | 0 | 0 | 0 | |||||||||||
Net cash used for investing activities | 582 | 129 | 3,393 | |||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of long-term debt, net of commissions | 0 | 0 | 0 | |||||||||||
Repayments of long-term debt | (5) | (6) | 0 | |||||||||||
Proceeds from intercompany note payable | (3,393) | |||||||||||||
Distributions to joint venture partners | 0 | 0 | ||||||||||||
Excess tax benefit from share-based compensation | 0 | |||||||||||||
Payments on note payable to affiliate | 1,962 | |||||||||||||
Proceeds from intercompany note payable | (1,486) | (2,085) | ||||||||||||
Payments on intercompany note payable | 905 | |||||||||||||
Withholding tax on vested RSUs and PRSUs | 0 | 0 | ||||||||||||
Capital contributions from parent | 0 | 0 | ||||||||||||
Cash dividend of SFMC | 0 | |||||||||||||
Net cash provided by (used for) financing activities | (586) | (129) | (3,393) | |||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 0 | 0 | 0 | |||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | |||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 | |||||||||
Supplemental cash flow information | ||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | |||||||||||
Restricted cash and restricted cash equivalents | 0 | 0 | 0 | |||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||
Interest paid | 0 | 0 | 0 | |||||||||||
Income taxes received (paid) | 0 | 0 | 0 | |||||||||||
Supplemental non-cash activities | ||||||||||||||
Transfer of finance receivables held for investment to finance receivables held for sale (prior to deducting allowance for finance receivable losses) | 0 | 0 | ||||||||||||
Increase in finance receivables held for investment financed with intercompany payable | 0 | |||||||||||||
Transfer of finance receivables to real estate owned | 0 | 0 | $ 0 | |||||||||||
Net unsettled investment security purchases | 0 | $ 0 | ||||||||||||
Non-cash dividend of SFMC | $ 0 |
Significant Transactions - OMH
Significant Transactions - OMH Acquisition of OneMain Financial Holding, LLC (Details) $ in Millions | Nov. 15, 2015USD ($) | Nov. 13, 2015branch | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) |
Fair value of liabilities assumed: | ||||||
Goodwill | $ 1,422 | $ 1,422 | $ 1,440 | $ 1,422 | ||
Adjustments | ||||||
Acquisition-related transaction and integration expenses | 69 | 108 | $ 62 | |||
OM Loans | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 4,478 | 4,455 | ||||
Fair value of assets acquired: | ||||||
Cash and cash equivalents | 958 | 958 | ||||
Investment securities | 1,294 | 1,294 | ||||
Personal loans | 8,801 | 8,795 | ||||
Intangibles | 555 | 558 | ||||
Other assets | 247 | 244 | ||||
Fair value of liabilities assumed: | ||||||
Long-term debt | (7,725) | (7,725) | ||||
Unearned premium, insurance policy and claims reserves | (936) | (936) | ||||
Other liabilities | (156) | (155) | ||||
Goodwill | 1,440 | 1,422 | ||||
Adjustments | ||||||
Cash consideration | (23) | |||||
Cash and cash equivalents | 0 | |||||
Investment securities | 0 | |||||
Personal loans | (6) | |||||
Intangibles | 3 | |||||
Other assets | (3) | |||||
Long-term debt | 0 | |||||
Unearned premium, insurance policy and claims reserves | 0 | |||||
Other liabilities | 1 | |||||
Business combination, provisional information, initial accounting incomplete, adjustment, impaired financing receivable | 64 | |||||
Business combination, provisional information, initial accounting incomplete, adjustment, performing financing receivable | $ 58 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, financing receivable, net | 8,100 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, loans and leases receivable, gross, consumer, installment, durable goods, non-credit impaired | 11,600 | |||||
Business combination, recognized identifiable assets acquired and liabilities assumed, loans and leases receivable, gross, consumer, installment, durable goods, related allowance | $ 2,200 | |||||
Acquisition-related transaction and integration expenses | $ 69 | $ 239 | ||||
Number of branches divested | branch | 127 | |||||
Number of states where branches were divested | 11 |
Significant Transactions - Lend
Significant Transactions - Lendmark Sale (Details) $ in Millions | Nov. 13, 2015 | Nov. 12, 2015USD ($)branch | May 13, 2016extension | May 02, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Number of extensions | extension | 2 | |||||
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 | ||||||
Business Acquisition [Line Items] | ||||||
Number of branch offices | branch | 127 | |||||
Loans purchased multiplier as of Lendmark Sale closing date | 103.00% |
Significant Transactions - Spri
Significant Transactions - Springcastle Interests Sale (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 30, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net gain on sale of SpringCastle interests | $ 167 | $ 0 | $ 167 | $ 0 | ||
Springleaf Financial Holdings, LLC | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership percentage | 44.00% | |||||
Ownership percentage by initial stockholder | 58.00% | 58.00% | ||||
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 - Real
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 |
Loss on sale of loans (less than) | $ 1 | $ 4 |
Significant Transactions - SFC
Significant Transactions - SFC Medium-Term Note Issuances (Details) - USD ($) | Dec. 31, 2017 | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Apr. 11, 2016 |
Senior debt | Senior Notes 6.125% | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 6.125% | 6.125% | |||
Issue Amount | $ 500,000,000 | $ 500,000,000 | |||
Senior debt | Senior Notes 5.625% | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 5.625% | ||||
Issue Amount | $ 875,000,000 | ||||
Guaranty Agreements | Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rates (as a percent) | 8.25% | ||||
Issue Amount | $ 1,000,000,000 | $ 1,000,000,000 |
Summary of Significant Accoun63
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 Accoun64
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017defermentsegmentpayment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of business segments | segment | 2 |
Finance receivables past due period | 60 days |
Financing receivable, period which most repurchase requests occur | 5 years |
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 |
Personal Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Finance receivables period for write-off | 180 days |
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 |
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 |
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 |
Real Estate Loans Central | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Financing receivable, number of deferments allowed in twelve month period | deferment | 1 |
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 |
Summary of Significant Accoun65
Summary of Significant Accounting Policies - Prior Period Revisions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Provision for finance receivable losses | $ 229 | $ 242 | $ 233 | $ 243 | $ 256 | $ 261 | $ 218 | $ 194 | $ 947 | $ 929 | $ 711 | |
Decreased provision for income tax expense | $ (161) | $ (44) | $ (20) | $ (18) | $ 0 | $ (16) | $ (20) | $ (91) | $ (243) | $ (127) | $ 122 | |
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 | |||||||||||
Decreased provision for income tax expense | $ 3 |
Recent Accounting Pronounceme66
Recent Accounting Pronouncements (Details) $ in Millions | Dec. 31, 2017USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Operating leases, future minimum payments due | $ 167 |
Finance Receivables - Narrative
Finance Receivables - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Personal loans of consolidated VIEs | $ 14,775,000,000 | $ 13,531,000,000 |
Finance receivables held for sale | 132,000,000 | $ 153,000,000 |
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 | |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables period for write-off | 180 days | |
Personal Loans | Consumer household goods or other items of personal property | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of personal loans | 2,300,000 | 2,200,000 |
Personal Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 3 years | |
Personal Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Original term | 6 years | |
Real Estate Loans | 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 | 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, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | $ 16,307 | $ 15,514 |
Unearned finance charges and points and fees | (1,725) | (2,061) |
Accrued finance charges | 211 | 151 |
Deferred origination costs | 116 | 82 |
Net finance receivables | 14,909 | 13,686 |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 16,173 | 15,360 |
Unearned finance charges and points and fees | (1,724) | (2,061) |
Accrued finance charges | 210 | 150 |
Deferred origination costs | 116 | 82 |
Net finance receivables | 14,775 | 13,531 |
Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 127 | 142 |
Unearned finance charges and points and fees | 1 | |
Accrued finance charges | 1 | 1 |
Net finance receivables | 128 | 144 |
Retail Sales Finance | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross receivables | 7 | 12 |
Unearned finance charges and points and fees | (1) | (1) |
Net finance receivables | $ 6 | $ 11 |
Finance Receivables - Geographi
Finance Receivables - Geographic Diversification (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 14,909 | $ 13,686 |
Finance receivable | Geographic concentration | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 14,909 | $ 13,686 |
Concentration (as a percent) | 100.00% | 100.00% |
Finance receivable | Geographic concentration | Texas | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 1,300 | $ 1,194 |
Concentration (as a percent) | 9.00% | 9.00% |
Finance receivable | Geographic concentration | North Carolina | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 1,155 | $ 1,112 |
Concentration (as a percent) | 8.00% | 8.00% |
Finance receivable | Geographic concentration | Pennsylvania | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 882 | $ 825 |
Concentration (as a percent) | 6.00% | 6.00% |
Finance receivable | Geographic concentration | California | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 876 | $ 806 |
Concentration (as a percent) | 6.00% | 6.00% |
Finance receivable | Geographic concentration | Ohio | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 726 | $ 660 |
Concentration (as a percent) | 5.00% | 5.00% |
Finance receivable | Geographic concentration | Florida | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 674 | $ 572 |
Concentration (as a percent) | 5.00% | 4.00% |
Finance receivable | Geographic concentration | Illinois | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 667 | $ 599 |
Concentration (as a percent) | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Virginia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 641 | $ 623 |
Concentration (as a percent) | 4.00% | 5.00% |
Finance receivable | Geographic concentration | Georgia | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 618 | $ 586 |
Concentration (as a percent) | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Indiana | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 608 | $ 539 |
Concentration (as a percent) | 4.00% | 4.00% |
Finance receivable | Geographic concentration | Tennessee | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 520 | $ 465 |
Concentration (as a percent) | 3.00% | 3.00% |
Finance receivable | Geographic concentration | Other | ||
GEOGRAPHIC DIVERSIFICATION | ||
Net finance receivables | $ 6,242 | $ 5,705 |
Concentration (as a percent) | 42.00% | 42.00% |
Finance Receivables - By Type A
Finance Receivables - By Type And By Days Delinquent (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net finance receivables: | ||
Net finance receivables | $ 14,909 | $ 13,686 |
Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 14,775 | 13,531 |
Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 128 | 144 |
Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 6 | 11 |
Performing: | ||
Net finance receivables: | ||
Net finance receivables | 14,554 | 13,306 |
Performing: | Current | ||
Net finance receivables: | ||
Net finance receivables | 14,185 | 12,991 |
Performing: | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 210 | 182 |
Performing: | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 159 | 133 |
Performing: | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 14,439 | 13,180 |
Performing: | Personal Loans | Current | ||
Net finance receivables: | ||
Net finance receivables | 14,081 | 12,878 |
Performing: | Personal Loans | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 202 | 173 |
Performing: | Personal Loans | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 156 | 129 |
Performing: | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 109 | 115 |
Performing: | Real Estate Loans | Current | ||
Net finance receivables: | ||
Net finance receivables | 98 | 102 |
Performing: | Real Estate Loans | 30-59 days past due | ||
Net finance receivables: | ||
Net finance receivables | 8 | 9 |
Performing: | Real Estate Loans | 60-89 days past due | ||
Net finance receivables: | ||
Net finance receivables | 3 | 4 |
Performing: | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 6 | 11 |
Performing: | Retail Sales Finance | Current | ||
Net finance receivables: | ||
Net finance receivables | 6 | 11 |
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 | 355 | 380 |
Nonperforming: | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 334 | 355 |
Nonperforming: | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 21 | 25 |
Nonperforming: | Personal Loans | ||
Net finance receivables: | ||
Net finance receivables | 336 | 351 |
Nonperforming: | Personal Loans | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 330 | 347 |
Nonperforming: | Personal Loans | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 6 | 4 |
Nonperforming: | Real Estate Loans | ||
Net finance receivables: | ||
Net finance receivables | 19 | 29 |
Nonperforming: | Real Estate Loans | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 4 | 8 |
Nonperforming: | Real Estate Loans | 180 days or more past due | ||
Net finance receivables: | ||
Net finance receivables | 15 | 21 |
Nonperforming: | Retail Sales Finance | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
Nonperforming: | Retail Sales Finance | 90-179 days past due | ||
Net finance receivables: | ||
Net finance receivables | 0 | 0 |
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, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | $ 233 | $ 394 |
Outstanding balance | 337 | 551 |
Purchased credit impaired finance receivables | 15 | 37 |
OM Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 176 | 324 |
Outstanding balance | 243 | 444 |
Purchased credit impaired finance receivables | 6 | 29 |
FA Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount, net of allowance | 57 | 70 |
Outstanding balance | 94 | 107 |
Purchased credit impaired finance receivables | 9 | 8 |
Carrying amount of finance receivables held for sale | 44 | 54 |
Outstanding balance of finance receivables held for sale | $ 72 | $ 83 |
Finance Receivables - Changes I
Finance Receivables - Changes In Accretable Yield For Purchased Credit Impaired (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | $ 119 | $ 592 | $ 506 |
Additions from OneMain Acquisition | 166 | ||
Accretion | (39) | (92) | (100) |
Other | 23 | ||
Reclassifications to nonaccretable difference | 20 | 12 | 20 |
Transfers due to finance receivables sold | (370) | ||
Balance at end of period | 100 | 119 | 592 |
OM Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 59 | 151 | 0 |
Additions from OneMain Acquisition | 166 | ||
Accretion | (34) | (69) | (15) |
Other | 23 | ||
Reclassifications to nonaccretable difference | 22 | 0 | 0 |
Transfers due to finance receivables sold | 0 | ||
Balance at end of period | 47 | 59 | 151 |
SCP Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 0 | 375 | 452 |
Additions from OneMain Acquisition | 0 | ||
Accretion | 0 | (16) | (77) |
Other | 0 | ||
Reclassifications to nonaccretable difference | 0 | 0 | 0 |
Transfers due to finance receivables sold | (359) | ||
Balance at end of period | 0 | 0 | 375 |
FA Loans | |||
Changes in accretable yield for purchased credit impaired finance receivables | |||
Balance at beginning of period | 60 | 66 | 54 |
Additions from OneMain Acquisition | 0 | ||
Accretion | (5) | (7) | (8) |
Other | 0 | ||
Reclassifications to nonaccretable difference | (2) | 12 | 20 |
Transfers due to finance receivables sold | (11) | ||
Balance at end of period | 53 | 60 | 66 |
Accretion of purchased credit impairment FA loans held for sale | $ 4 | $ 5 | $ 6 |
Finance Receivables - TDR Held
Finance Receivables - TDR Held For Investment And Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | $ 457 | $ 284 |
TDR net finance receivables | 457 | 286 |
Allowance for TDR finance receivable losses | 146 | 80 |
Personal Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 318 | 151 |
TDR net finance receivables | 317 | 152 |
Allowance for TDR finance receivable losses | 134 | 69 |
Real Estate Loans | ||
Financing Receivable, Modifications [Line Items] | ||
TDR gross finance receivables | 139 | 133 |
TDR net finance receivables | 140 | 134 |
Allowance for TDR finance receivable losses | 12 | 11 |
TDR gross finance receivables, held for sale | 90 | 89 |
TDR net finance receivables, held for sale | $ 91 | $ 90 |
Finance Receivables - TDR Recog
Finance Receivables - TDR Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | $ 370 | $ 270 | $ 245 |
TDR finance charges recognized | 42 | 23 | 15 |
Personal Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 230 | 95 | 35 |
TDR finance charges recognized | 33 | 12 | 3 |
SCP Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 0 | 0 | 12 |
TDR finance charges recognized | 0 | 0 | 1 |
Real Estate Loans | |||
Financing Receivable, Modifications [Line Items] | |||
TDR average net receivables | 140 | 175 | 198 |
TDR finance charges recognized | 9 | 11 | 11 |
TDR average net receivables, held for sale | 91 | 102 | 91 |
TDR finance charges recognized, held for sale | $ 6 | $ 6 | $ 5 |
Finance Receivables - TDR New V
Finance Receivables - TDR New Volume (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)account | Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | $ 342 | $ 228 | $ 75 |
Post-modification TDR net finance receivables: | $ 340 | $ 224 | $ 71 |
Number of TDR accounts | account | 45,810 | 29,916 | 9,471 |
Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 266 | $ 211 | $ 54 |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | 74 | 13 | 17 |
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | 326 | 211 | 47 |
Post-modification TDR net finance receivables: | $ 324 | $ 206 | $ 43 |
Number of TDR accounts | account | 45,300 | 29,395 | 8,365 |
Personal Loans | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 250 | $ 194 | $ 31 |
Personal Loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | 74 | 12 | 12 |
SCP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-modification TDR net finance receivables | 0 | 1 | 7 |
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 6 |
Number of TDR accounts | account | 0 | 157 | 721 |
SCP Loans | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 6 |
SCP Loans | 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 | 16 | 21 |
Post-modification TDR net finance receivables: | $ 16 | $ 17 | $ 22 |
Number of TDR accounts | account | 510 | 364 | 385 |
Pre-modification TDR net finance receivables, held for sale | $ 6 | $ 5 | $ 6 |
Post-modification TDR net finance receivables, held for sale | $ 7 | $ 5 | $ 7 |
Number of TDR accounts, held for sale | account | 232 | 122 | 113 |
Real Estate Loans | Rate reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 16 | $ 16 | $ 17 |
Real Estate Loans | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Post-modification TDR net finance receivables: | $ 0 | $ 1 | $ 5 |
Finance Receivables - Held For
Finance Receivables - Held For Investment And Held For Sale Modified As TDR (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)account | Dec. 31, 2016USD ($)account | Dec. 31, 2015USD ($)account | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 92,000,000 | $ 27,000,000 | $ 13,000,000 |
Number of TDR accounts | account | 15,036 | 3,764 | 1,842 |
Personal Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 88,000,000 | $ 24,000,000 | $ 8,000,000 |
Number of TDR accounts | account | 14,935 | 3,684 | 1,649 |
SCP Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 0 | $ 0 | $ 2,000,000 |
Number of TDR accounts | account | 0 | 19 | 147 |
TDR net finance receivables, threshold for disclosure | $ 1,000,000 | ||
Real Estate Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR net finance receivables | $ 4,000,000 | $ 3,000,000 | $ 3,000,000 |
Number of TDR accounts | account | 101 | 61 | 46 |
TDR net finance receivables, held for sale | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 |
Number of TDR accounts, held for sale | account | 53 | 30 | 17 |
Allowance for Finance Receiva77
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | $ 686 | $ 589 | $ 686 | $ 589 | $ 180 | ||||||
Provision for finance receivable losses | $ 229 | $ 242 | $ 233 | 243 | $ 256 | $ 261 | $ 218 | 194 | 947 | 929 | 711 |
Charge-offs | (1,047) | (872) | (356) | ||||||||
Recoveries | 106 | 74 | 55 | ||||||||
Other | (34) | (1) | |||||||||
Balance at end of period | 692 | 686 | 692 | 686 | 589 | ||||||
Personal Loans | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 666 | 538 | 666 | 538 | 130 | ||||||
Provision for finance receivable losses | 941 | 906 | 629 | ||||||||
Charge-offs | (1,041) | (843) | (257) | ||||||||
Recoveries | 102 | 65 | 37 | ||||||||
Other | 0 | (1) | |||||||||
Balance at end of period | 668 | 666 | 668 | 666 | 538 | ||||||
SCP Loans | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 0 | 4 | 0 | 4 | 3 | ||||||
Provision for finance receivable losses | 0 | 14 | 67 | ||||||||
Charge-offs | 0 | (17) | (78) | ||||||||
Recoveries | 0 | 3 | 12 | ||||||||
Other | (4) | 0 | |||||||||
Balance at end of period | 0 | 0 | 0 | 0 | 4 | ||||||
Real Estate Loans | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | 19 | 46 | 19 | 46 | 46 | ||||||
Provision for finance receivable losses | 6 | 9 | 13 | ||||||||
Charge-offs | (5) | (11) | (18) | ||||||||
Recoveries | 3 | 5 | 5 | ||||||||
Other | (30) | 0 | |||||||||
Balance at end of period | 23 | 19 | 23 | 19 | 46 | ||||||
Retail Sales Finance | |||||||||||
Changes in the allowance for finance receivable losses by finance receivable type | |||||||||||
Balance at beginning of period | $ 1 | $ 1 | 1 | 1 | 1 | ||||||
Provision for finance receivable losses | 0 | 0 | 2 | ||||||||
Charge-offs | (1) | (1) | (3) | ||||||||
Recoveries | 1 | 1 | 1 | ||||||||
Other | 0 | 0 | |||||||||
Balance at end of period | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Allowance for Finance Receiva78
Allowance for Finance Receivable Losses - By Type And By Impairment Method (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | $ 531 | $ 569 | ||
Purchased credit impaired finance receivables | 15 | 37 | ||
TDR finance receivables | 146 | 80 | ||
Allowance for finance receivable losses | 692 | 686 | $ 589 | $ 180 |
Finance receivables: | ||||
Collectively evaluated for impairment | 14,339 | 13,113 | ||
TDR finance receivables | 366 | 196 | ||
Net finance receivables | $ 14,909 | $ 13,686 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.64% | 5.01% | ||
Purchased credit impaired finance receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 204 | $ 377 | ||
Personal Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 528 | 568 | ||
Purchased credit impaired finance receivables | 6 | 29 | ||
TDR finance receivables | 134 | 69 | ||
Allowance for finance receivable losses | 668 | 666 | 538 | 130 |
Finance receivables: | ||||
Collectively evaluated for impairment | 14,276 | 13,026 | ||
TDR finance receivables | 317 | 152 | ||
Net finance receivables | $ 14,775 | $ 13,531 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 4.52% | 4.92% | ||
Personal Loans | Purchased credit impaired finance receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 182 | $ 353 | ||
Real Estate Loans | ||||
Allowance for finance receivable losses: | ||||
Collectively evaluated for impairment | 2 | 0 | ||
Purchased credit impaired finance receivables | 9 | 8 | ||
TDR finance receivables | 12 | 11 | ||
Allowance for finance receivable losses | 23 | 19 | 46 | 46 |
Finance receivables: | ||||
Collectively evaluated for impairment | 57 | 76 | ||
TDR finance receivables | 49 | 44 | ||
Net finance receivables | $ 128 | $ 144 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 18.66% | 13.31% | ||
Real Estate Loans | Purchased credit impaired finance receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 22 | $ 24 | ||
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 | $ 1 |
Finance receivables: | ||||
Collectively evaluated for impairment | 6 | 11 | ||
TDR finance receivables | 0 | 0 | ||
Net finance receivables | $ 6 | $ 11 | ||
Allowance for finance receivable losses as a percentage of finance receivables | 9.91% | 4.42% | ||
Retail Sales Finance | Purchased credit impaired finance receivables | ||||
Finance receivables: | ||||
Net finance receivables | $ 0 | $ 0 |
Finance Receivables Held for 79
Finance Receivables Held for Sale - (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Jun. 30, 2016 | May 02, 2016 | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Finance receivables held for sale | $ 132 | $ 153 | |||||||
Finance receivables transferred from held for investment to held for sale | $ 608 | ||||||||
Net gain on sale of SpringCastle interests | $ 167 | 0 | 167 | 0 | |||||
Finance receivable held for sale, carrying value | $ 602 | ||||||||
Net gain on sales of personal and real estate loans and related trust assets | $ 22 | $ 0 | 18 | $ 0 | |||||
SCP Loans | |||||||||
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 | ||||||||
Real Estate Loans | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Finance receivables transferred from held for investment to held for sale | $ 50 | $ 257 | |||||||
Real Estate Sale | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Disposal group including discontinued operations carrying value | 58 | $ 250 | |||||||
Loss on loans sold | $ 1 | $ 4 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,611 | $ 1,666 |
Unrealized Gains | 14 | 10 |
Unrealized Losses | (9) | (12) |
Fair Value | 1,616 | 1,664 |
Cost method investments | 1 | 1 |
Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,574 | 1,631 |
Unrealized Gains | 12 | 9 |
Unrealized Losses | (8) | (11) |
Fair Value | 1,578 | 1,629 |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 28 | 31 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 28 | 31 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 135 | 145 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | 0 | (1) |
Fair Value | 135 | 145 |
Certificates of Deposit and Commercial Paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 60 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 60 | |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 126 | 119 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 125 | 118 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 941 | 1,024 |
Unrealized Gains | 12 | 8 |
Unrealized Losses | (5) | (7) |
Fair Value | 948 | 1,025 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 100 | 101 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 99 | 100 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 88 | 109 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 87 | 108 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 96 | 102 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 96 | 102 |
Preferred stocks | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 15 | 17 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1) | (1) |
Fair Value | 14 | 16 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 21 | 16 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | 0 | 0 |
Fair Value | 23 | 17 |
Other long-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1 | 2 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 1 | $ 2 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value | ||
Less Than 12 Months | $ 697 | $ 800 |
12 Months or Longer | 225 | 29 |
Total | 922 | 829 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (10) |
12 Months or Longer | (5) | (2) |
Total | (9) | (12) |
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 | 690 | 792 |
12 Months or Longer | 218 | 20 |
Total | 908 | 812 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (10) |
12 Months or Longer | (4) | (1) |
Total | (8) | (11) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 21 | 18 |
12 Months or Longer | 3 | 0 |
Total | 24 | 18 |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 65 | 99 |
12 Months or Longer | 20 | 2 |
Total | 85 | 101 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | 0 | 0 |
Total | 0 | (1) |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 89 | 55 |
12 Months or Longer | 13 | 1 |
Total | 102 | 56 |
Unrealized Losses | ||
Less Than 12 Months | (1) | (1) |
12 Months or Longer | 0 | |
Total | (1) | (1) |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 387 | 416 |
12 Months or Longer | 93 | 8 |
Total | 480 | 424 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (6) |
12 Months or Longer | (2) | (1) |
Total | (5) | (7) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 40 | 74 |
12 Months or Longer | 25 | 1 |
Total | 65 | 75 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | (1) | 0 |
Total | (1) | (1) |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 40 | 66 |
12 Months or Longer | 38 | 5 |
Total | 78 | 71 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | (1) | 0 |
Total | (1) | (1) |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 48 | 64 |
12 Months or Longer | 26 | 3 |
Total | 74 | 67 |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Preferred stocks | ||
Fair Value | ||
Less Than 12 Months | 3 | 6 |
12 Months or Longer | 7 | 8 |
Total | 10 | 14 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | (1) | (1) |
Total | (1) | (1) |
Common Stock | ||
Fair Value | ||
Less Than 12 Months | 3 | 2 |
12 Months or Longer | 0 | 1 |
Total | 3 | 3 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | $ 0 |
Other long-term investments | ||
Fair Value | ||
Less Than 12 Months | 1 | |
12 Months or Longer | 0 | |
Total | 1 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | $ 0 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($)investment | Dec. 31, 2015USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Investment securities in an unrealized loss position | investment | 1,369 | 1,331 | |
Net impairment losses recognized in net income (loss) | $ 0 | $ 0 | $ 0 |
Available-for-sale securities | 1,616,000,000 | 1,664,000,000 | |
Net realized gains (losses) on trading and other securities sold or redeemed during the year | 0 | 7,000,000 | $ (3,000,000) |
Deposits With Third Parties | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities | $ 537,000,000 | $ 465,000,000 |
Investment Securities - Proceed
Investment Securities - Proceeds of AFS Securities Sold or Redeemed (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale securities sold or redeemed | |||
Proceeds from sales and redemptions | $ 508 | $ 518 | $ 429 |
Realized gains | 15 | 16 | 15 |
Realized losses | (1) | (1) | (1) |
Net realized gains | $ 14 | $ 15 | $ 14 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Fixed Maturity AFS Securities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Fair Value | |
Due in 1 year or less | $ 224 |
Due after 1 year through 5 years | 530 |
Due after 5 years through 10 years | 335 |
Due after 10 years | 207 |
Mortgage-backed, asset-backed, and collateralized securities | 282 |
Total | 1,578 |
Amortized Cost | |
Due in 1 year or less | 225 |
Due after 1 year through 5 years | 531 |
Due after 5 years through 10 years | 334 |
Due after 10 years | 200 |
Mortgage-backed, asset-backed, and collateralized securities | 284 |
Total | $ 1,574 |
Investment Securities - By Type
Investment Securities - By Types (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | $ 74 | $ 93 |
Total | 80 | 99 |
Non-U.S. government and government sponsored entities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | 1 | 1 |
Corporate debt | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | 68 | 85 |
RMBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | 1 | 1 |
CMBS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | 0 | 1 |
CDO/ABS | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Total bonds | 4 | 5 |
Preferred stocks | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Preferred stock | $ 6 | $ 6 |
Investment Securities - Realize
Investment Securities - Realized Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Mark-to-market gains (losses) on trading and other securities held at year end | $ (1) | $ 1 | $ 0 |
Net realized gains (losses) on trading and other securities sold or redeemed during the year | 0 | 7 | (3) |
Total | $ (1) | $ 8 | $ (3) |
Goodwill and Other Intangible87
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,422 | $ 1,440 |
Adjustments to purchase price allocation | 0 | (18) |
Balance at end of period | $ 1,422 | $ 1,422 |
Goodwill and Other Intangible88
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 633 | $ 633 |
Accumulated Amortization | (194) | (142) |
Net Other Intangible Assets | 439 | 491 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 223 | 223 |
Accumulated Amortization | (92) | (58) |
Net Other Intangible Assets | 131 | 165 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 220 | 220 |
Accumulated Amortization | 0 | 0 |
Net Other Intangible Assets | 220 | 220 |
VOBA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 141 | 141 |
Accumulated Amortization | (90) | (74) |
Net Other Intangible Assets | 51 | 67 |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 37 | 37 |
Accumulated Amortization | 0 | 0 |
Net Other Intangible Assets | 37 | 37 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12 | 12 |
Accumulated Amortization | (12) | (10) |
Net Other Intangible Assets | $ 0 | $ 2 |
Goodwill and Other Intangible89
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 52 | $ 70 | $ 16 |
Goodwill and Other Intangible90
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Estimated Aggregate Amortization Expense | |
2,018 | $ 42 |
2,019 | 39 |
2,020 | 38 |
2,021 | 32 |
2,022 | $ 3 |
Other Assets Components of Othe
Other Assets Components of Other Assets Table (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Deferred tax assets | $ 139 | $ 180 |
Ceded insurance reserves | 95 | 102 |
Prepaid expenses and deferred charges | 89 | 89 |
Fixed assets, net | 67 | 128 |
Other investments | 29 | 52 |
current tax receivables | 13 | 20 |
Cost basis investments | 11 | 11 |
Receivables from parent and affiliates | 4 | 76 |
Other | 34 | 32 |
Other Assets | $ 481 | $ 690 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Accumulated depreciation on fixed assets | $ 120 | $ 247 |
Transactions with Affiliates (D
Transactions with Affiliates (Details) | Mar. 31, 2016 |
Corporate Joint Venture | |
Related Party Transaction [Line Items] | |
Ownership percentage | 47.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | Apr. 10, 2017USD ($) | Apr. 05, 2017USD ($) | Dec. 31, 2017USD ($)building | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) |
Related Party Transaction [Line Items] | ||||||||
Note receivable from parent | $ 391,000,000 | $ 285,000,000 | ||||||
Decrease in total equity | 38,000,000 | |||||||
Finance charges | $ 3,174,000,000 | 3,022,000,000 | $ 1,850,000,000 | |||||
Independence Demand Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest rates (as a percent) | 5.87% | |||||||
OM Loans | ||||||||
Related Party Transaction [Line Items] | ||||||||
Servicing fees | 0 | |||||||
Finance charges | 0 | |||||||
OneMain Consumer Loan, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Loan processing fee per underwritten approved application | $ 35 | |||||||
Loan processing fee | 56,000,000 | 17,000,000 | ||||||
Insurance Claims | OneMain Insurance Subsidiaries | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accounts receivable from related parties | 0 | |||||||
Intercompany Agreements | Affiliated companies | Springleaf Consumer Loan, Inc. (SCLI) [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Aggregate purchase price | 2,000,000 | $ 4,000,000 | $ 89,000,000 | |||||
Unpaid principal balance of loans sold | 2,000,000 | $ 4,000,000 | $ 89,000,000 | |||||
Home and Auto Membership Plan Fees | OneMain Insurance Subsidiaries | ||||||||
Related Party Transaction [Line Items] | ||||||||
Accounts payable to related parties | 2,000,000 | 0 | ||||||
Loan Purchase and Sale Agreements | Affiliated companies | OneMain Consumer Loan, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Service fee expenses | 2,000,000 | 3,000,000 | ||||||
Independence Demand Note | Independence Demand Note | ||||||||
Related Party Transaction [Line Items] | ||||||||
Note receivable from parent | 2,900,000,000 | |||||||
OMFH revolving demand note, OneMain Acquisition closing | OneMain Financial Holdings, Inc. | OneMain Financial Holdings, Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payable due to affiliates | 0 | |||||||
SFI | Affiliated companies | ||||||||
Related Party Transaction [Line Items] | ||||||||
Note receivable from parent | 391,000,000 | 285,000,000 | ||||||
Interest revenue on note receivable | $ 23,000,000 | 19,000,000 | 15,000,000 | |||||
Capital contributions received to satisfy interest payments | 10,000,000 | |||||||
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] | ||||||||
Service fee expenses | $ 460,000,000 | 243,000,000 | 224,000,000 | |||||
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 | $ 1,000,000 | 6,000,000 | 6,000,000 | |||||
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 | $ 1,000,000 | $ 4,000,000 | 4,000,000 | |||||
OM Loans | Affiliated companies | ||||||||
Related Party Transaction [Line Items] | ||||||||
Capital contributions received to satisfy interest payments | $ 1,100,000,000 | |||||||
Springleaf Finance Management Corporation | Affiliated companies | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payable due to affiliates | $ 1,000,000 | |||||||
Decrease in total equity | $ 38,000,000 | |||||||
Decrease in total assets | $ 65,000,000 |
Long-term Debt - Carrying Value
Long-term Debt - Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Carrying Value | $ 15,050 | $ 13,959 |
Fair Value | 15,625 | 14,498 |
Senior debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | 14,878 | 13,787 |
Fair Value | 15,436 | 14,340 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Carrying Value | 172 | 172 |
Fair Value | $ 189 | $ 158 |
Long-term Debt - Weighted Avera
Long-term Debt - Weighted Average Interest Rates (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 5.74% | 5.67% | 6.65% |
Current Weighted Average Interest Rate | 5.57% | 5.88% | |
Senior debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 5.73% | 5.60% | 6.56% |
Current Weighted Average Interest Rate | 5.56% | 5.80% | |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted average interest rates during period | 6.41% | 12.26% | 12.26% |
Current Weighted Average Interest Rate | 6.37% | 12.26% |
Long-term Debt - Principal Matu
Long-term Debt - Principal Maturities By Type (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Jan. 15, 2017 | Dec. 31, 2016 | Jan. 31, 2007 | |
Debt Instrument [Line Items] | ||||
2,018 | $ 700,000,000 | |||
2,019 | 696,000,000 | |||
2,020 | 1,299,000,000 | |||
2,021 | 1,446,000,000 | |||
2,022 | 1,000,000,000 | |||
2023-2067 | 1,525,000,000 | |||
Securitizations | 8,711,000,000 | |||
Total principal maturities | 15,377,000,000 | |||
Carrying Value | 15,050,000,000 | $ 13,959,000,000 | ||
Debt issuance costs | (54,000,000) | |||
Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | $ 172,000,000 | 172,000,000 | ||
Junior Subordinated Debenture | Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 6.00% | |||
Total principal maturities | $ 350,000,000 | |||
Debt instrument, interest rate, effective percentage | 3.11% | |||
Senior debt | Securitizations | ||||
Debt Instrument [Line Items] | ||||
2,018 | $ 0 | |||
2,019 | 0 | |||
2,020 | 0 | |||
2,021 | 0 | |||
2,022 | 0 | |||
2023-2067 | 0 | |||
Securitizations | 8,711,000,000 | |||
Total principal maturities | 8,711,000,000 | |||
Carrying Value | 8,688,000,000 | |||
Debt issuance costs | (24,000,000) | |||
Senior debt | Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
2,018 | 700,000,000 | |||
2,019 | 696,000,000 | |||
2,020 | 1,299,000,000 | |||
2,021 | 1,446,000,000 | |||
2,022 | 1,000,000,000 | |||
2023-2067 | 1,175,000,000 | |||
Securitizations | 0 | |||
Total principal maturities | 6,316,000,000 | |||
Carrying Value | 6,190,000,000 | |||
Debt issuance costs | (30,000,000) | |||
Senior debt | Revolving Credit Facility | Other assets | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs, excluded from direct deduction from long term debt | $ 20,000,000 | |||
Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 3.11% | |||
2,018 | $ 0 | |||
2,019 | 0 | |||
2,020 | 0 | |||
2,021 | 0 | |||
2,022 | 0 | |||
2023-2067 | 350,000,000 | |||
Securitizations | 0 | |||
Total principal maturities | 350,000,000 | |||
Carrying Value | 172,000,000 | |||
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) | 6.94% | |||
Maximum | Senior debt | Medium Term Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rates (as a percent) | 8.25% | |||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate | 1.75% | |||
Consolidated VIEs | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | $ 8,700,000,000 | $ 8,200,000,000 | ||
Amount outstanding under securitization transaction | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Jan. 08, 2018 | Jan. 31, 2007USD ($) | Dec. 31, 2017USD ($)agreement | Sep. 30, 2016 | Dec. 08, 2017USD ($) | May 30, 2017USD ($) | May 15, 2017USD ($) | Jan. 15, 2017 | Dec. 31, 2016USD ($) | Apr. 11, 2016USD ($) | Dec. 03, 2014 | Dec. 30, 2013 |
Principal maturities of long-term debt by type of debt | ||||||||||||
Carrying Value | $ 15,050,000,000 | $ 13,959,000,000 | ||||||||||
Number of debt agreements with specific financial targets or ratios | agreement | 0 | |||||||||||
Long-term debt, gross | $ 15,377,000,000 | |||||||||||
SPRINGLEAF FINANCE CORPORATION | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Carrying Value | 4,824,000,000 | 4,162,000,000 | ||||||||||
Long-term debt, gross | 5,175,000,000 | |||||||||||
Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Carrying Value | 14,878,000,000 | 13,787,000,000 | ||||||||||
Long-term debt, gross | 1,500,000,000 | |||||||||||
Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Carrying Value | 1,600,000,000 | |||||||||||
Senior Note 8.25%, due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 8.25% | |||||||||||
Senior Notes 5.25 Percent Due 2019 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 5.25% | |||||||||||
Senior Notes Issued in May 2013 | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 5.25% | |||||||||||
Carrying Value | 700,000,000 | |||||||||||
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% | |||||||||||
Junior Subordinated Debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Carrying Value | 172,000,000 | $ 172,000,000 | ||||||||||
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 | |||||||||||
Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 8.25% | |||||||||||
Issue Amount | 1,000,000,000 | $ 1,000,000,000 | ||||||||||
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Long-term debt, gross | $ 875,000,000 | |||||||||||
Senior Notes 5.625% | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 5.625% | |||||||||||
Issue Amount | $ 875,000,000 | |||||||||||
Debt instrument, repurchase amount | $ 557,000,000 | |||||||||||
Senior Notes 5.625% | Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 5.625% | |||||||||||
Medium Term Notes | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.90% | |||||||||||
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Long-term debt, gross | $ 1,000,000,000 | |||||||||||
Senior Notes 6.125% | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.125% | 6.125% | ||||||||||
Issue Amount | $ 500,000,000 | $ 500,000,000 | ||||||||||
Senior Notes 6.125% | Senior debt | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.125% | |||||||||||
OMFH 6.75 % Notes | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.75% | |||||||||||
OMFH 7.25 % Notes | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 7.25% | |||||||||||
OMFH Notes 2019 | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.75% | |||||||||||
Issue Amount | $ 700,000,000 | |||||||||||
Senior Notes due 2017 | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.90% | |||||||||||
Debt instrument, repurchase amount | $ 466,000,000 | |||||||||||
Junior Subordinated Debenture | Junior Subordinated Debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Interest rates (as a percent) | 6.00% | |||||||||||
Long-term debt, gross | $ 350,000,000 | |||||||||||
Term of debt | 60 years | |||||||||||
Debt instrument, interest rate, effective percentage | 3.11% | |||||||||||
London Interbank Offered Rate (LIBOR) | Junior Subordinated Debenture | Junior Subordinated Debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Debt instrument, basis spread on variable rate | 1.75% | |||||||||||
Beneficial Owners of Debt | Senior Notes due 2017 | Springleaf Finance Corporation | Senior Notes due 2017 | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Debt instrument, repurchase amount | $ 600,000,000 | |||||||||||
Subsequent Event | OMFH Notes 2019 | Senior debt | ||||||||||||
Principal maturities of long-term debt by type of debt | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 103.375% |
Variable Interest Entities Sche
Variable Interest Entities Schedule of Variable Interest Entities (Details) - Consolidated VIEs - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 4 | $ 3 |
Finance receivables: | Personal Loans | ||
Variable Interest Entity [Line Items] | ||
Assets | 9,769 | 9,509 |
Allowance for finance receivable losses | ||
Variable Interest Entity [Line Items] | ||
Assets | 465 | 501 |
Restricted cash and restricted cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 482 | 552 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 20 | 14 |
Long-term debt | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 8,688 | 8,240 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 15 | $ 16 |
Variable Interest Entities Secu
Variable Interest Entities Securitized Borrowings (Details) - USD ($) | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Dec. 11, 2017 | Nov. 20, 2017 | Sep. 06, 2017 | Jun. 28, 2017 | Feb. 15, 2017 | Feb. 01, 2017 | Dec. 31, 2016 | Dec. 14, 2016 | Jul. 25, 2016 | Jul. 19, 2016 | Jun. 07, 2016 | May 17, 2016 | Mar. 23, 2016 | Feb. 10, 2016 | |
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 15,050,000,000 | $ 13,959,000,000 | |||||||||||||
Current Weighted Average Interest Rate | 5.57% | 5.88% | |||||||||||||
Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 8,700,000,000 | $ 8,200,000,000 | |||||||||||||
Consumer Securitizations: | Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | 7,680,000,000 | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2015-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | 1,163,000,000 | ||||||||||||||
Carrying Value | $ 1,163,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.47% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2015-B | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 314,000,000 | ||||||||||||||
Carrying Value | $ 314,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.78% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2016-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 532,000,000 | ||||||||||||||
Carrying Value | $ 500,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.10% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Principal balance retained | $ 32,000,000 | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2017-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 652,000,000 | ||||||||||||||
Carrying Value | $ 619,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.98% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2014-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,185,000,000 | ||||||||||||||
Carrying Value | $ 320,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.16% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,229,000,000 | ||||||||||||||
Carrying Value | $ 1,229,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.74% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 1,250,000,000 | ||||||||||||||
Carrying Value | $ 750,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 3.40% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2015-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 293,000,000 | ||||||||||||||
Carrying Value | $ 293,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.21% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 500,000,000 | ||||||||||||||
Carrying Value | $ 459,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.01% | ||||||||||||||
Original Revolving Period | 3 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 890,000,000 | ||||||||||||||
Carrying Value | $ 816,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.50% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2016-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 350,000,000 | ||||||||||||||
Carrying Value | $ 317,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 4.33% | ||||||||||||||
Original Revolving Period | 5 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 947,000,000 | ||||||||||||||
Carrying Value | $ 900,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.66% | ||||||||||||||
Original Revolving Period | 2 years | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2014 A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 221,000,000 | ||||||||||||||
Debt instrument, redemption price | 188,000,000 | ||||||||||||||
Consumer Securitizations: | Consolidated VIEs | SLFT 2014-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 81,000,000 | ||||||||||||||
Debt instrument, redemption price | $ 81,000,000 | ||||||||||||||
Auto Securitization: | Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 1,031,000,000 | ||||||||||||||
Auto Securitization: | Consolidated VIEs | ODART 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | 754,000,000 | ||||||||||||||
Carrying Value | $ 188,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.91% | ||||||||||||||
Auto Securitization: | Consolidated VIEs | ODART 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 300,000,000 | ||||||||||||||
Carrying Value | $ 268,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.61% | ||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
Auto Securitization: | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Issue Amount | $ 605,000,000 | ||||||||||||||
Carrying Value | $ 575,000,000 | ||||||||||||||
Current Weighted Average Interest Rate | 2.63% | ||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
Total secured structured financings | Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Carrying Value | $ 8,711,000,000 | ||||||||||||||
Class A Notes | Consolidated VIEs | SLFT 2017-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 26,000,000 | ||||||||||||||
Class A Notes | Consolidated VIEs | ODART 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 11,000,000 | ||||||||||||||
Class A Notes | Consolidated VIEs | ODART 2017-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 11,000,000 | ||||||||||||||
Class A Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 19,000,000 | ||||||||||||||
Class B Notes | Consolidated VIEs | SLFT 2017-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 2,000,000 | ||||||||||||||
Class B Notes | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 3,000,000 | ||||||||||||||
Class B Notes | Consolidated VIEs | ODART 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 1,000,000 | ||||||||||||||
Class B Notes | Consolidated VIEs | ODART 2017-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 1,000,000 | ||||||||||||||
Class B Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 4,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | SLFT 2017-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 2,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | OMFIT 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of notes sold under private securitization transaction | $ 45,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | OMFIT 2016-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Amount of notes sold under private securitization transaction | $ 83,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 3,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | ODART 2017-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 1,000,000 | ||||||||||||||
Class C Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 3,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | SLFT 2017-A | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 3,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | OMFIT 2016-3 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 33,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 5,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | ODART 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 54,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | ODART 2017-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 1,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | Twenty First Street | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, redemption price | $ 33,000,000 | ||||||||||||||
Class D Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 2,000,000 | ||||||||||||||
Class C and Class D Notes | Consolidated VIEs | OMFIT 2016-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 86,000,000 | ||||||||||||||
Class C and Class D Notes | Consolidated VIEs | OMFIT 2016-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 157,000,000 | ||||||||||||||
Class A-1 Notes | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | 30,000,000 | ||||||||||||||
Class A-2 Notes | Consolidated VIEs | OMFIT 2017-1 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 6,000,000 | ||||||||||||||
Class E Notes | Consolidated VIEs | ODART 2017-2 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 18,000,000 | ||||||||||||||
Class E Notes | Consolidated VIEs | OneMain Direct Auto Receivables Trust 2017-02 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal balance retained | $ 2,000,000 | ||||||||||||||
Minimum | Consumer Securitizations: | Consolidated VIEs | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Original Revolving Period | 1 year | ||||||||||||||
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 ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Carrying Value | $ 15,050,000,000 | $ 13,959,000,000 |
Consolidated VIEs | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 5,050,000,000 | |
Amount outstanding under securitization transaction | 0 | |
Carrying Value | 8,700,000,000 | $ 8,200,000,000 |
First Avenue Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Carrying Value | 0 | |
Seine River Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 500,000,000 | |
Amount outstanding under securitization transaction | 0 | |
OneMain Financial B6 Warehouse Trust [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 600,000,000 | |
Carrying Value | 0 | |
Rocky River Funding LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Amount outstanding under securitization transaction | 0 | |
Financial Funding VII LSA [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 650,000,000 | |
Amount outstanding under securitization transaction | 0 | |
Thur River Funding, LLC | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 350,000,000 | |
Amount outstanding under securitization transaction | 0 | |
OneMain Financial Funding IX LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 600,000,000 | |
Amount outstanding under securitization transaction | 0 | |
Mystic River Funding | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 850,000,000 | |
Amount outstanding under securitization transaction | 0 | |
Fourth Avenue Auto Funding [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 250,000,000 | |
Amount outstanding under securitization transaction | 0 | |
OneMain Financial Auto Funding I, LLC [Member] | Consolidated VIEs | Revolving Conduit Facilities | ||
Debt Instrument [Line Items] | ||
Note Maximum Balance | 750,000,000 | |
Amount outstanding under securitization transaction | $ 0 |
Variable Interest Entities Narr
Variable Interest Entities Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||
Interest expense | $ 204,000,000 | $ 207,000,000 | $ 203,000,000 | $ 202,000,000 | $ 201,000,000 | $ 215,000,000 | $ 214,000,000 | $ 226,000,000 | $ 816,000,000 | $ 856,000,000 | $ 715,000,000 |
Consolidated VIEs | |||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||
Interest expense | $ 323,000,000 | $ 341,000,000 | $ 216,000,000 | ||||||||
Consumer Securitizations: | Minimum | Consolidated VIEs | |||||||||||
Variable Interest Entities | |||||||||||
Original Revolving Period | 1 year | ||||||||||
Consumer Securitizations: | Maximum | Consolidated VIEs | |||||||||||
Variable Interest Entities | |||||||||||
Original Revolving Period | 5 years | ||||||||||
Carrying amounts of consolidated VIE assets and liabilities associated with securitization trusts | |||||||||||
Line Of Credit Facility, Amount Of Principal Payment Required During Revolving Period | $ 0 |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Insurance claims and policyholder liabilities | ||||
Claim reserves | $ 154 | $ 158 | $ 177 | $ 70 |
Unearned insurance premium and claim reserves | 590 | 586 | ||
Insurance claims and policyholder liabilities | 737 | 757 | ||
Total | 1,327 | 1,343 | ||
Insurance claims and policyholder liabilities assumed from other insurers | 325 | 333 | ||
Ceded insurance reserves | 95 | 102 | ||
Non-finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 81 | 86 | ||
Claim reserves | 61 | 60 | ||
Benefit reserves | 375 | 388 | ||
Insurance claims and policyholder liabilities | 517 | 534 | ||
Non-affiliated insurance companies | ||||
Insurance claims and policyholder liabilities | ||||
Ceded insurance reserves | 95 | 102 | ||
Payable to OMH | Finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 515 | 508 | ||
Claim reserves | 75 | 78 | ||
Unearned insurance premium and claim reserves | 590 | 586 | ||
Third-Party Beneficiaries | Finance receivable | ||||
Insurance claims and policyholder liabilities | ||||
Unearned premium reserves | 99 | 98 | ||
Claim reserves | 18 | 20 | ||
Benefit reserves | 103 | 105 | ||
Insurance claims and policyholder liabilities | $ 220 | $ 223 |
Insurance - Change in Reserve f
Insurance - Change in Reserve for Unpaid Claims and Loss Adjustment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the liability for unpaid claims and loss adjustment expenses, net of reinsurance recoverable | |||
Balance at beginning of period | $ 158 | $ 177 | $ 70 |
Plus reinsurance recoverables | (26) | (26) | (22) |
Net balance at beginning of period | 132 | 151 | 48 |
Reserve for unpaid claims and loss adjustment expenses assumed in connection with the OneMain Acquisition | 0 | 0 | 104 |
Additions for losses and loss adjustment expenses incurred to: | |||
Current year | 188 | 203 | 83 |
Prior years | 5 | (20) | 5 |
Total | 193 | 183 | 88 |
Reductions for losses and loss adjustment expenses paid related to: | |||
Current year | (115) | (124) | (63) |
Prior years | (78) | (78) | (26) |
Total | (193) | (202) | (89) |
Foreign currency translation adjustment | (1) | 0 | 0 |
Net balance at end of period | 131 | 132 | 151 |
Plus reinsurance recoverables | 23 | 26 | 26 |
Balance at end of period | $ 154 | $ 158 | $ 177 |
Insurance - Incurred and Cumula
Insurance - Incurred and Cumulative Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) $ in Millions | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 112 | $ 116 | $ 130 | ||
Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 655 | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 565 | ||||
All outstanding liabilities before 2013, net of reinsurance | 0 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 90 | 96 | 105 | ||
2013 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 124 | 124 | 125 | $ 127 | $ 140 |
Incurred-but- not-reported Liabilities | $ 0 | ||||
Cumulative Number of Reported Claims | claim | 50,295 | ||||
Cumulative Frequency | 2.70% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 124 | 121 | 115 | 105 | $ 68 |
2014 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131 | 130 | 132 | 145 | |
Incurred-but- not-reported Liabilities | $ 3 | ||||
Cumulative Number of Reported Claims | claim | 51,776 | ||||
Cumulative Frequency | 2.70% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 128 | 121 | 110 | $ 71 | |
2015 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 129 | 129 | 138 | ||
Incurred-but- not-reported Liabilities | $ 8 | ||||
Cumulative Number of Reported Claims | claim | 52,505 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 121 | 109 | $ 71 | ||
2016 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 135 | 138 | |||
Incurred-but- not-reported Liabilities | $ 20 | ||||
Cumulative Number of Reported Claims | claim | 51,558 | ||||
Cumulative Frequency | 2.80% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 115 | $ 75 | |||
2017 | Credit insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 136 | ||||
Incurred-but- not-reported Liabilities | $ 59 | ||||
Cumulative Number of Reported Claims | claim | 39,329 | ||||
Cumulative Frequency | 2.20% | ||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 77 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: | $ 112 | $ 116 | $ 130 | |
Insurance lines other than short-duration | 22 | 20 | 25 | |
Total gross liability for unpaid claims and claim adjustment expense | 154 | 158 | 177 | $ 70 |
Credit insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance: | 90 | 96 | 105 | |
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: | 22 | 20 | 25 | |
Reinsurance Recoverable for Paid and Unpaid Claims and Claims Adjustments | $ 20 | $ 22 | $ 22 |
Insurance - Average Annual Perc
Insurance - Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Details) - Credit insurance | Dec. 31, 2017 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year One | 55.40% |
Year Two | 29.40% |
Year Three | 8.90% |
Year Four | 4.80% |
Year Five | 2.50% |
Insurance - Statutory Net Incom
Insurance - Statutory Net Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Yosemite | Yosemite | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | $ 19 | $ 11 | $ 15 |
Statutory capital and surplus | 42 | 63 | |
Triton | Yosemite | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | 31 | 14 | 3 |
Statutory capital and surplus | 170 | 139 | |
Merit | Merit | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | 37 | 20 | (1) |
Statutory capital and surplus | 79 | 133 | |
AHL | Merit | |||
Statutory net income (loss) and statutory capital and surplus | |||
Statutory net income (loss) | 34 | 71 | $ 11 |
Statutory capital and surplus | $ 130 | $ 215 |
Insurance - Dividend Restrictio
Insurance - Dividend Restrictions (Details) - USD ($) $ in Millions | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 extraordinary dividend distribution without prior approval from regulatory agency, percent | 10.00% | |||
Yosemite | ||||
Insurance | ||||
Dividends paid with approval of regulatory agency | $ 125 | $ 63 | $ 100 | |
OneMain | American Health and Life and Triton Insurance Companies | ||||
Insurance | ||||
Dividends paid with approval of regulatory agency | $ 68 | $ 111 | $ 105 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Payables to parent and affiliates | $ 189 | $ 39 |
Accrued expenses and other liabilities | 79 | 93 |
Accrued interest on debt | 58 | 61 |
Salary and benefit liabilities | 31 | 45 |
Insurance liabilities | 12 | 14 |
Loan principal warranty reserve | 8 | 14 |
Retirement plans | 5 | 31 |
Other | 28 | 43 |
Total | $ 410 | $ 340 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017item$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Capital stock | ||
Number of classes of authorized capital stock | item | 2 | |
Par value and shares authorized | ||
Special shares, par value (in USD per share) | $ / shares | $ 0 | |
Common stock, par value (in USD per share) | $ / shares | $ 0.50 | $ 0.50 |
Special shares authorized (in shares) | 25,000,000 | |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Shares issued and outstanding | ||
Special stock, shares issued (in shares) | 0 | 0 |
Special stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares issued (in shares) | 10,160,021 | 10,160,021 |
Common stock, shares outstanding (in shares) | 10,160,021 | 10,160,021 |
SFI | ||
Capital stock | ||
Capital contributions received to satisfy hybrid debt semi-annual interest payments | $ | $ 10 |
Accumulated Other Comprehens112
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | $ 3,273 | $ 2,908 | $ 1,977 |
Other comprehensive income before reclassifications | 21 | 41 | (28) |
Reclassification adjustments from accumulated other comprehensive loss | (9) | (14) | (8) |
Balance at end of period | 3,402 | 3,273 | 2,908 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (1) | (14) | 12 |
Other comprehensive income before reclassifications | 14 | 23 | (18) |
Reclassification adjustments from accumulated other comprehensive loss | (9) | (10) | (8) |
Balance at end of period | 4 | (1) | (14) |
Retirement Plan Liabilities Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (4) | (19) | (13) |
Other comprehensive income before reclassifications | 3 | 15 | (6) |
Reclassification adjustments from accumulated other comprehensive loss | 0 | 0 | 0 |
Balance at end of period | (1) | (4) | (19) |
Foreign Currency Translation Adjustments | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (1) | 0 | 4 |
Other comprehensive income before reclassifications | 4 | 3 | (4) |
Reclassification adjustments from accumulated other comprehensive loss | 0 | (4) | 0 |
Balance at end of period | 3 | (1) | 0 |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income (loss) | |||
Balance at beginning of period | (6) | (33) | 3 |
Balance at end of period | $ 6 | $ (6) | $ (33) |
Accumulated Other Comprehens113
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), net of taxes | $ 9 | $ 14 | $ 8 |
Unrealized Gains (Losses) Available-for-Sale Securities | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), before taxes | 14 | 15 | 12 |
Income tax effect | 5 | 5 | 4 |
Reclassification from accumulated other comprehensive income (loss), net of taxes | 9 | 10 | 8 |
Foreign Currency Translation Adjustments | |||
Reclassification adjustments from accumulated other comprehensive income (loss) | |||
Reclassification from accumulated other comprehensive income (loss), net of taxes | $ 0 | $ 4 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income (loss) before income tax expense (benefit) - U.S. operations | $ 380 | $ 380 | $ (208) | ||||||||
Income before income tax expense - foreign operations | 15 | 17 | 12 | ||||||||
Income (loss) before income tax expense (benefit) | $ 177 | $ 105 | $ 67 | $ 46 | $ 38 | $ 46 | $ 49 | $ 264 | 395 | 397 | (196) |
Current: | |||||||||||
Federal | 190 | 210 | 80 | ||||||||
Foreign | 2 | 1 | 1 | ||||||||
State | 8 | 21 | 5 | ||||||||
Total current | 200 | 232 | 86 | ||||||||
Deferred: | |||||||||||
Federal | 34 | (92) | (192) | ||||||||
Foreign | 0 | 5 | 0 | ||||||||
State | 9 | (18) | (16) | ||||||||
Total deferred | 43 | (105) | (208) | ||||||||
Provision for (benefit from) income taxes | 161 | $ 44 | $ 20 | 18 | 0 | $ 16 | $ 20 | 91 | 243 | 127 | (122) |
Foreign income tax expense, threshold for disclosure | $ 1 | $ 1 | $ 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% | ||||||||
Impact of Tax Act | 21.69% | 0.00% | 0.00% | ||||||||
State income taxes, net of federal | 2.63% | 0.48% | 7.62% | ||||||||
Return to provision adjustment | 0.81% | 0.26% | 0.89% | ||||||||
Excess tax benefit on share-based compensation | 0.33% | (0.18%) | 0.00% | ||||||||
Non-controlling interests | 0.00% | (2.49%) | 22.87% | ||||||||
Tax impact of United Kingdom subsidiary liquidation | 0.00% | (0.54%) | 0.00% | ||||||||
Nondeductible compensation | 0.00% | 0.00% | (2.78%) | ||||||||
Other, net | 1.09% | (0.66%) | (1.14%) | ||||||||
Effective income tax rate | 61.55% | 31.87% | 62.46% | ||||||||
Reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax obligation | |||||||||||
Balance at beginning of year | $ 16 | $ 15 | $ 16 | $ 15 | $ 4 | ||||||
Increases in tax positions for current years | 1 | 2 | 10 | ||||||||
Lapse in statute of limitations | (2) | (1) | 0 | ||||||||
Increases in tax positions for prior years | 0 | 0 | 4 | ||||||||
Decreases in tax positions for prior years | 0 | 0 | (2) | ||||||||
Settlements with tax authorities | 0 | 0 | (1) | ||||||||
Balance at end of year | $ 15 | $ 16 | $ 15 | $ 16 | $ 15 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 146 | $ 246 |
State taxes, net of federal | 65 | 58 |
Mark-to-market | 55 | 55 |
Pension/employee benefits | 5 | 19 |
Acquisition costs | 6 | 6 |
Federal and foreign net operating losses and tax attributes | 5 | 4 |
Insurance reserves | 3 | 0 |
Legal and warranty reserve | 2 | 6 |
Other intangibles | 2 | 1 |
Other | 9 | 9 |
Total | 298 | 404 |
Deferred tax liabilities: | ||
Debt fair value adjustment | 44 | 90 |
Goodwill | 41 | 37 |
Deferred loan fees | 14 | 12 |
Discount - debt exchange | 11 | 16 |
Deferred insurance commissions | 2 | 2 |
Impact of tax accounting method change | 0 | 38 |
Insurance Reserves | 0 | 2 |
Other | 5 | 1 |
Total | 117 | 198 |
Net deferred tax assets before valuation allowance | 181 | 206 |
Valuation allowance | (44) | (29) |
Net deferred tax assets | $ 137 | $ 177 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income taxes | |||
Undistributed earnings of foreign subsidiaries | $ 0 | ||
Variances from the statutory federal income tax rate, noncontrolling interest income (loss) | 0.00% | (2.49%) | 22.87% |
Impact of Tax Act | 21.69% | 0.00% | 0.00% |
Tax Cuts and Jobs of 2017, income tax expense | $ 81,000,000 | ||
State operating loss carryforward | 704,000,000 | $ 750,000,000 | |
Valuation allowance | 44,000,000 | 29,000,000 | |
State | |||
Income taxes | |||
Valuation allowance | $ 44,000,000 | $ 29,000,000 |
Lease Commitments, Rent Expe117
Lease Commitments, Rent Expense, and Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Annual rental commitments for leased office space, automobiles and information technology equipment accounted for as operating leases | |||
2,018 | $ 52 | ||
2,019 | 40 | ||
2,020 | 30 | ||
2,021 | 20 | ||
2,022 | 11 | ||
2023 and thereafter | 14 | ||
Total | 167 | ||
Rent expense | $ 77 | $ 80 | $ 36 |
Lease Commitments, Rent Expe118
Lease Commitments, Rent Expense, and Contingent Liabilities Sales Recourse Obligations (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)request | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |||
Number of material recourse requests with loss exposure | request | 0 | ||
Finance Receivables Reserve for Sales Recourse Obligations [Roll Forward] | |||
Balance at beginning of period | $ 13 | $ 15 | $ 24 |
Recourse losses | (1) | 0 | (2) |
Provision for recourse obligations, net of recoveries | (4) | (2) | (7) |
Balance at end of period | 8 | $ 13 | $ 15 |
Real Estate Loans | |||
Loss Contingencies [Line Items] | |||
Reserve for sale recourse obligations related to finance receivables sold | $ 8 |
Benefit Plans (Details)
Benefit Plans (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Springleaf Financial Services Retirement Plan, Springleaf Financial Services Excess Retirement Income Plan, and Supplemental Executive Retirement Income Plan | ||
Benefit Plans | ||
Projected net pension obligation | $ 25,000 | |
CommoLoco Retirement Plan | ||
Benefit Plans | ||
Projected net pension obligation | $ (5,000) | $ 6,000 |
Minimum age for eligibility to participate in plan | 21 years | |
Requisite continuous service period for eligibility to participate in plan | 1 year | |
Fair value of plan assets | $ 12,000 | |
Projected benefit obligation | $ 17,000 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | May 25, 2016 | Oct. 16, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
SHARE-BASED COMPENSATION | |||||
Performance Targets Probability Of Occurring | 100.00% | ||||
Employee service share-based compensation, tax benefit from exercise of stock options | $ 2,000,000 | $ 3,000,000 | $ 1,000,000 | ||
Service-Based Awards [Member] | |||||
SHARE-BASED COMPENSATION | |||||
Weighted average grant date fair value (in USD per share) | $ 27.85 | $ 26.14 | $ 47.44 | ||
Fair value of vested shares | $ 18,000,000 | $ 10,000,000 | $ 7,000,000 | ||
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) | $ 27.85 | ||||
Granted (in shares) | 407,184 | ||||
Vested (in shares) | 575,322 | ||||
Share-based compensation expense | $ 5,000,000 | $ 8,000,000 | $ 2,000,000 | ||
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) | $ 24.98 | $ 34.45 | |||
Granted (in shares) | 90,072 | 0 | |||
Fair value of vested shares | $ 2,000,000 | $ 4,000,000 | |||
Vested (in shares) | 92,000 | 0 | |||
Incentive Units | |||||
SHARE-BASED COMPENSATION | |||||
Share-based compensation expense | $ 0 | $ 0 | $ 15,000,000 | ||
Omnibus Incentive Plan | |||||
SHARE-BASED COMPENSATION | |||||
Number of shares of common stock authorized (in shares) | 13,199,096 | ||||
Number of shares subject to outstanding equity awards (in shares) | 1,411,236 | ||||
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 | ||||
OM Loans | |||||
SHARE-BASED COMPENSATION | |||||
Share-based compensation expense | $ 6,000,000 |
Share-Based Compensation - Serv
Share-Based Compensation - Service-based Activity (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Weighted Average Grant Date Fair Value | |
Vested (in USD per share) | $ 24.78 |
Restricted Stock Units | |
Number of Shares | |
Unvested shares at beginning of period (in shares) | shares | 1,382,920 |
Granted (in shares) | shares | 407,184 |
Vested (in shares) | shares | (575,322) |
Forfeited (in shares) | shares | (73,172) |
Unvested shares at end of period (in shares) | shares | 1,141,610 |
Weighted Average Grant Date Fair Value | |
Weighted average grant date fair value, beginning of period (in USD per share) | $ 35.86 |
Granted (in USD per share) | 27.85 |
Vested (in USD per share) | 31.86 |
Forfeited (in USD per share) | 38.10 |
Weighted average grant date fair value, end of period (in USD per share) | $ 34.87 |
Weighted Average Remaining Term (in Years) | 1 year 10 months 28 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Based Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Grant Date Fair Value | |||
Vested (in USD per share) | $ 24.78 | ||
Performance Shares | |||
Number of Shares | |||
Unvested shares at beginning of period (in shares) | 407,948 | ||
Granted (in shares) | 90,072 | 0 | |
Vested (in shares) | (92,000) | 0 | |
Forfeited (in shares) | (136,394) | ||
Unvested shares at end of period (in shares) | 269,626 | 407,948 | |
Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 25.94 | ||
Granted (in USD per share) | 24.98 | $ 34.45 | |
Forfeited (in USD per share) | 25.70 | ||
Weighted average grant date fair value, end of period (in USD per share) | $ 26.14 | $ 25.94 | |
Weighted Average Remaining Term (in Years) | 3 years 9 months 11 days |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Interest income | $ 853 | $ 806 | $ 772 | $ 756 | $ 766 | $ 767 | $ 739 | $ 824 | $ 3,187 | $ 3,096 | $ 1,910 |
Interest expense | 204 | 207 | 203 | 202 | 201 | 215 | 214 | 226 | 816 | 856 | 715 |
Provision for finance receivable losses | 229 | 242 | 233 | 243 | 256 | 261 | 218 | 194 | 947 | 929 | 711 |
Net interest income after provision for finance receivable losses | 1,424 | 1,311 | 484 | ||||||||
Net gain on sale of SpringCastle interests | 167 | 0 | 167 | 0 | |||||||
Other revenues | 540 | 587 | 275 | ||||||||
Acquisition-related transaction and integration expenses | 69 | 108 | 62 | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 1,500 | 1,560 | 893 | ||||||||
Income (loss) before income tax expense (benefit) | 177 | $ 105 | $ 67 | $ 46 | 38 | $ 46 | $ 49 | $ 264 | 395 | 397 | (196) |
Income before provision for income taxes attributable to non-controlling interests | 28 | 127 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 369 | (323) | |||||||||
Assets (c) | $ 19,645 | 18,340 | $ 19,645 | 18,340 | 21,396 | ||||||
Consumer and Insurance | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Number of states in which entity operates | 44 | 44 | |||||||||
Operating Segments | Consumer and Insurance | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | $ 3,296 | 3,314 | 1,470 | ||||||||
Interest expense | 765 | 738 | 242 | ||||||||
Provision for finance receivable losses | 955 | 908 | 346 | ||||||||
Net interest income after provision for finance receivable losses | 1,576 | 1,668 | 882 | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 549 | 609 | 274 | ||||||||
Acquisition-related transaction and integration expenses | 66 | 100 | 16 | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 1,458 | 1,461 | 768 | ||||||||
Income (loss) before income tax expense (benefit) | 601 | 716 | 372 | ||||||||
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 | 716 | 372 | |||||||||
Assets (c) | $ 16,793 | 15,783 | 16,793 | 15,783 | 15,875 | ||||||
Operating Segments | Acquisitions and Servicing | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 0 | 102 | 455 | ||||||||
Interest expense | 0 | 20 | 87 | ||||||||
Provision for finance receivable losses | 0 | 14 | 68 | ||||||||
Net interest income after provision for finance receivable losses | 0 | 68 | 300 | ||||||||
Net gain on sale of SpringCastle interests | 167 | ||||||||||
Other revenues | 0 | 0 | 5 | ||||||||
Acquisition-related transaction and integration expenses | 0 | 1 | 1 | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 2 | 16 | 61 | ||||||||
Income (loss) before income tax expense (benefit) | (2) | 218 | 243 | ||||||||
Income before provision for income taxes attributable to non-controlling interests | 28 | 127 | |||||||||
Income (loss) before provision for (benefit from) income taxes attributable to Springleaf Finance Corporation | 190 | 116 | |||||||||
Assets (c) | 0 | 0 | 0 | 0 | 1,784 | ||||||
Other | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 23 | 51 | 76 | ||||||||
Interest expense | 21 | 43 | 268 | ||||||||
Provision for finance receivable losses | 7 | 6 | (1) | ||||||||
Net interest income after provision for finance receivable losses | (5) | 2 | (191) | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 23 | (16) | 19 | ||||||||
Acquisition-related transaction and integration expenses | 6 | 27 | 48 | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 11 | 29 | 50 | ||||||||
Income (loss) before income tax expense (benefit) | 1 | (70) | (270) | ||||||||
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 | (70) | (270) | |||||||||
Assets (c) | 680 | 590 | 680 | 590 | 1,415 | ||||||
Eliminations | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | (5) | ||||||||
Provision for finance receivable losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for finance receivable losses | 0 | 0 | 5 | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | 0 | 0 | (5) | ||||||||
Acquisition-related transaction and integration expenses | 0 | 0 | 0 | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 0 | 0 | 0 | ||||||||
Income (loss) before income tax expense (benefit) | 0 | 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 (c) | 0 | 0 | 0 | 0 | 0 | ||||||
Segment to GAAP Adjustment | |||||||||||
Information about segments as well as reconciliations to consolidated financial statement amounts | |||||||||||
Interest income | (132) | (371) | (91) | ||||||||
Interest expense | 30 | 55 | 123 | ||||||||
Provision for finance receivable losses | (15) | 1 | 298 | ||||||||
Net interest income after provision for finance receivable losses | (147) | (427) | (512) | ||||||||
Net gain on sale of SpringCastle interests | 0 | ||||||||||
Other revenues | (32) | (6) | (18) | ||||||||
Acquisition-related transaction and integration expenses | (3) | (20) | (3) | ||||||||
Noninterest Expense Excluding Business Combination, Acquisition Related Costs | 29 | 54 | 14 | ||||||||
Income (loss) before income tax expense (benefit) | (205) | (467) | (541) | ||||||||
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 | (467) | (541) | |||||||||
Assets (c) | $ 2,172 | $ 1,967 | $ 2,172 | $ 1,967 | $ 2,322 |
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, 2015 | Oct. 31, 2015 | |
Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent | $ 208 | ||
Other Segments | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 100.00% | 100.00% | |
Other | |||
Segment Reporting Information [Line Items] | |||
Hypothetical increase (decrease) in interest expense due to change in debt allocation percent | $ (208) | ||
Total Average Unsecured Debt Allocation | Consumer and Insurance | |||
Segment Reporting Information [Line Items] | |||
Unsecured debt allocation percent | 83.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value and Carrying Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Investment securities | $ 1,697 | $ 1,764 | |
Note receivable from parent | 391 | 285 | |
Restricted cash and restricted cash equivalents | 498 | 568 | $ 676 |
Liabilities | |||
Long-term debt | 15,050 | 13,959 | |
Total Fair Value | |||
Assets | |||
Cash equivalents in securities | 958 | 553 | |
Investment securities | 1,697 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 15,607 | 13,857 | |
Finance receivables held for sale | 139 | 159 | |
Note receivable from parent | 391 | 285 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 16 | 111 | |
Liabilities | |||
Long-term debt | 15,625 | 14,498 | |
Other liabilities | 189 | 39 | |
Total Carrying Value | |||
Assets | |||
Cash equivalents in securities | 958 | 553 | |
Investment securities | 1,697 | 1,764 | |
Net finance receivables, less allowance for finance receivable losses | 14,217 | 13,000 | |
Finance receivables held for sale | 132 | 153 | |
Note receivable from parent | 391 | 285 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 16 | 113 | |
Liabilities | |||
Long-term debt | 15,050 | 13,959 | |
Other liabilities | 189 | 39 | |
Level 1 | |||
Assets | |||
Cash equivalents in securities | 904 | 480 | |
Investment securities | 36 | 31 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Note receivable from parent | 0 | 0 | |
Restricted cash and restricted cash equivalents | 498 | 568 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Other liabilities | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash equivalents in securities | 54 | 73 | |
Investment securities | 1,654 | 1,724 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Finance receivables held for sale | 0 | 0 | |
Note receivable from parent | 391 | 285 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 4 | 77 | |
Liabilities | |||
Long-term debt | 15,625 | 14,498 | |
Other liabilities | 189 | 39 | |
Level 3 | |||
Assets | |||
Cash equivalents in securities | 0 | 0 | |
Investment securities | 7 | 9 | |
Net finance receivables, less allowance for finance receivable losses | 15,607 | 13,857 | |
Finance receivables held for sale | 139 | 159 | |
Note receivable from parent | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 12 | 34 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Other liabilities | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Available-for-sale securities | $ 1,616 | $ 1,664 |
Total investment securities | 1,697 | 1,764 |
Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in securities | 958 | 553 |
Total investment securities | 1,697 | 1,764 |
Investment securities: | ||
Assets | ||
Available-for-sale securities | 1,578 | 1,629 |
U.S. government and government sponsored entities | ||
Assets | ||
Available-for-sale securities | 28 | 31 |
Obligations of states, municipalities, and political subdivisions | ||
Assets | ||
Available-for-sale securities | 135 | 145 |
Corporate debt | ||
Assets | ||
Available-for-sale securities | 948 | 1,025 |
RMBS | ||
Assets | ||
Available-for-sale securities | 99 | 100 |
CMBS | ||
Assets | ||
Available-for-sale securities | 87 | 108 |
CDO/ABS | ||
Assets | ||
Available-for-sale securities | 96 | 102 |
Preferred stocks | ||
Assets | ||
Available-for-sale securities | 14 | 16 |
Preferred stock | 6 | 6 |
Other long-term investments | ||
Assets | ||
Available-for-sale securities | 1 | 2 |
Common stocks | ||
Assets | ||
Available-for-sale securities | 23 | 17 |
Common stocks | Not Carried at Fair Value | ||
Assets | ||
Available-for-sale securities | 1 | 1 |
Level 1 | ||
Assets | ||
Cash equivalents in securities | 904 | 480 |
Total investment securities | 36 | 31 |
Level 2 | ||
Assets | ||
Cash equivalents in securities | 54 | 73 |
Total investment securities | 1,654 | 1,724 |
Level 3 | ||
Assets | ||
Cash equivalents in securities | 0 | 0 |
Total investment securities | 7 | 9 |
Recurring basis | ||
Assets | ||
Other securities | 80 | 99 |
Recurring basis | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in mutual funds | 688 | 286 |
Cash equivalents in securities | 73 | |
Available-for-sale securities | 1,616 | 1,664 |
Other securities | 93 | |
Total investment securities | 1,696 | 1,763 |
Restricted cash in mutual funds | 484 | 553 |
Total | 2,922 | 2,675 |
Recurring basis | Investment securities: | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,578 | 1,629 |
Other securities | 74 | |
Recurring basis | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 28 | 31 |
Recurring basis | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 135 | 145 |
Recurring basis | Non-U.S. government and government sponsored entities | ||
Assets | ||
Other securities | 1 | |
Recurring basis | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 60 | 118 |
Other securities | 1 | |
Recurring basis | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 948 | 1,025 |
Other securities | 68 | 85 |
Recurring basis | RMBS | ||
Assets | ||
Other securities | 1 | |
Recurring basis | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 99 | 100 |
Other securities | 1 | |
Recurring basis | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 87 | 108 |
Other securities | 0 | 1 |
Recurring basis | CDO/ABS | ||
Assets | ||
Other securities | 5 | |
Recurring basis | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 96 | 102 |
Other securities | 4 | |
Recurring basis | Preferred stocks | ||
Assets | ||
Preferred stock | 6 | 6 |
Recurring basis | Preferred stocks | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 14 | 16 |
Recurring basis | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1 | 2 |
Recurring basis | Common stocks | ||
Assets | ||
Available-for-sale securities | 23 | 17 |
Recurring basis | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in securities | 54 | |
Recurring basis | Cash Equivalents [Member] | ||
Assets | ||
Available-for-sale securities | 125 | |
Recurring basis | Level 1 | ||
Assets | ||
Other securities | 6 | 6 |
Recurring basis | Level 1 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in mutual funds | 688 | 286 |
Cash equivalents in securities | 0 | |
Available-for-sale securities | 30 | 25 |
Other securities | 0 | |
Total investment securities | 36 | 31 |
Restricted cash in mutual funds | 484 | 553 |
Total | 1,208 | 870 |
Recurring basis | Level 1 | Investment securities: | ||
Assets | ||
Other securities | 0 | |
Recurring basis | Level 1 | Investment securities: | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 1 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Corporate debt | ||
Assets | ||
Other securities | 0 | |
Recurring basis | Level 1 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Recurring basis | Level 1 | RMBS | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 1 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | CMBS | ||
Assets | ||
Other securities | 0 | |
Recurring basis | Level 1 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Recurring basis | Level 1 | CDO/ABS | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 1 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Preferred stocks | ||
Assets | ||
Preferred stock | 6 | 6 |
Recurring basis | Level 1 | Preferred stocks | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 7 | 8 |
Recurring basis | Level 1 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 1 | Common stocks | ||
Assets | ||
Available-for-sale securities | 23 | 17 |
Recurring basis | Level 1 | Certificates of Deposit and Commercial Paper | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 1 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in securities | 0 | |
Recurring basis | Level 2 | ||
Assets | ||
Other securities | 72 | 91 |
Recurring basis | Level 2 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 73 | |
Available-for-sale securities | 1,582 | 1,633 |
Other securities | 91 | |
Total investment securities | 1,654 | 1,724 |
Restricted cash in mutual funds | 0 | 0 |
Total | 1,708 | 1,797 |
Recurring basis | Level 2 | Investment securities: | ||
Assets | ||
Other securities | 72 | |
Recurring basis | Level 2 | Investment securities: | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1,575 | 1,625 |
Recurring basis | Level 2 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 28 | 31 |
Recurring basis | Level 2 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 135 | 145 |
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Other securities | 1 | 1 |
Recurring basis | Level 2 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 60 | 118 |
Recurring basis | Level 2 | Corporate debt | ||
Assets | ||
Other securities | 66 | |
Recurring basis | Level 2 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 946 | 1,025 |
Other securities | 83 | |
Recurring basis | Level 2 | RMBS | ||
Assets | ||
Other securities | 1 | 1 |
Recurring basis | Level 2 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 99 | 100 |
Recurring basis | Level 2 | CMBS | ||
Assets | ||
Other securities | 0 | |
Recurring basis | Level 2 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 87 | 108 |
Other securities | 1 | |
Recurring basis | Level 2 | CDO/ABS | ||
Assets | ||
Other securities | 4 | 5 |
Recurring basis | Level 2 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 95 | 98 |
Recurring basis | Level 2 | Preferred stocks | ||
Assets | ||
Preferred stock | 0 | 0 |
Recurring basis | Level 2 | Preferred stocks | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 7 | 8 |
Recurring basis | Level 2 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 | Common stocks | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 2 | Certificates of Deposit and Commercial Paper | ||
Assets | ||
Available-for-sale securities | 125 | |
Recurring basis | Level 2 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in securities | 54 | |
Recurring basis | Level 3 | ||
Assets | ||
Other securities | 2 | 2 |
Recurring basis | Level 3 | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 0 | |
Available-for-sale securities | 4 | 6 |
Other securities | 2 | |
Total investment securities | 6 | 8 |
Restricted cash in mutual funds | 0 | 0 |
Total | 6 | 8 |
Recurring basis | Level 3 | Investment securities: | ||
Assets | ||
Other securities | 2 | |
Recurring basis | Level 3 | Investment securities: | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 3 | 4 |
Recurring basis | Level 3 | U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Obligations of states, municipalities, and political subdivisions | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 3 | Non-U.S. government and government sponsored entities | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Corporate debt | ||
Assets | ||
Other securities | 2 | |
Recurring basis | Level 3 | Corporate debt | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 2 | 0 |
Other securities | 2 | |
Recurring basis | Level 3 | RMBS | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 3 | RMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | CMBS | ||
Assets | ||
Other securities | 0 | |
Recurring basis | Level 3 | CMBS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | |
Recurring basis | Level 3 | CDO/ABS | ||
Assets | ||
Other securities | 0 | 0 |
Recurring basis | Level 3 | CDO/ABS | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1 | 4 |
Recurring basis | Level 3 | Preferred stocks | ||
Assets | ||
Preferred stock | 0 | 0 |
Recurring basis | Level 3 | Preferred stocks | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 0 | 0 |
Recurring basis | Level 3 | Other long-term investments | Estimate of Fair Value Measurement | ||
Assets | ||
Available-for-sale securities | 1 | 2 |
Recurring basis | Level 3 | Common stocks | ||
Assets | ||
Available-for-sale securities | 0 | $ 0 |
Recurring basis | Level 3 | Certificates of Deposit and Commercial Paper | ||
Assets | ||
Available-for-sale securities | 0 | |
Recurring basis | Level 3 | Certificates of Deposit and Commercial Paper | Estimate of Fair Value Measurement | ||
Assets | ||
Cash equivalents in securities | $ 0 |
Fair Value Measurements - Fa127
Fair Value Measurements - Fair Value Measured on Non-Recurring Basis (Details 5) - Non-recurring basis - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 164 | |
Impairment Charges | 6 | |
Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 6 | 5 |
Impairment Charges | 3 | 2 |
Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 159 | |
Impairment Charges | 4 | |
Level 1 | ||
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 1 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | |
Level 2 | ||
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 2 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 0 | |
Level 3 | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | 164 | |
Level 3 | Real estate owned | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 6 | 5 |
Level 3 | Finance receivables held for sale | ||
Assets measured at fair value on a non-recurring basis | ||
Assets at fair value | $ 159 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Dec. 31, 2017USD ($) |
Fair Value Measurements [Abstract] | |
Debt carried at fair value | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jun. 25, 2018 | Jan. 08, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 08, 2017 |
Subsequent Event [Line Items] | |||||||
Net loss on repurchases and repayments of debt | $ (29,000,000) | $ (17,000,000) | $ 0 | ||||
Senior debt | OMFH Notes 2019 | |||||||
Subsequent Event [Line Items] | |||||||
Issue Amount | $ 700,000,000 | ||||||
Interest rates (as a percent) | 6.75% | ||||||
Subsequent Event | Senior debt | OMFH Notes 2019 | |||||||
Subsequent Event [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 103.375% | ||||||
Net loss on repurchases and repayments of debt | $ (1,000,000) | ||||||
Subsequent Event | Apollo-Värde Group | OM Loans | |||||||
Subsequent Event [Line Items] | |||||||
Sale of stock, number of shares issued in transaction | 54,937,500 | ||||||
Sale of stock, percentage of ownership after transaction | 40.60% |
Selected Quarterly Financial130
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 853 | $ 806 | $ 772 | $ 756 | $ 766 | $ 767 | $ 739 | $ 824 | $ 3,187 | $ 3,096 | $ 1,910 |
Interest expense | 204 | 207 | 203 | 202 | 201 | 215 | 214 | 226 | 816 | 856 | 715 |
Provision for finance receivable losses | 229 | 242 | 233 | 243 | 256 | 261 | 218 | 194 | 947 | 929 | 711 |
Other revenues | 139 | 149 | 117 | 135 | 138 | 151 | 158 | 307 | 540 | 754 | 275 |
Total other expenses | 382 | 401 | 386 | 400 | 409 | 396 | 416 | 447 | 1,569 | 1,668 | 955 |
Income (loss) before income tax expense (benefit) | 177 | 105 | 67 | 46 | 38 | 46 | 49 | 264 | 395 | 397 | (196) |
Income tax expense (benefit) | 161 | 44 | 20 | 18 | 0 | 16 | 20 | 91 | 243 | 127 | (122) |
Net income (loss) | $ 16 | $ 61 | $ 47 | $ 28 | 38 | 30 | 29 | 173 | 152 | 270 | (74) |
Net income attributable to non-controlling interests | 0 | 0 | 0 | 28 | 0 | 28 | 127 | ||||
Net income (loss) attributable to Springleaf Finance Corporation | $ 38 | $ 30 | $ 29 | $ 145 | $ 152 | $ 242 | $ (201) |
Schedule I - Condensed Finan131
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 958 | $ 553 | $ 893 | |
Notes receivable from parent and affiliates | 391 | 285 | ||
Restricted cash and restricted cash equivalents | 498 | 568 | 676 | |
Other assets | 481 | 690 | ||
Total assets | 19,645 | 18,340 | 21,396 | |
Liabilities and Shareholder’s Equity | ||||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016) | 15,050 | 13,959 | ||
Deferred and accrued taxes | 46 | 11 | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 410 | 340 | ||
Total liabilities | 16,243 | 15,067 | ||
Shareholder’s equity | 3,402 | 3,273 | 2,908 | $ 1,977 |
Total liabilities and shareholder’s equity | 19,645 | 18,340 | ||
SPRINGLEAF FINANCE CORPORATION | ||||
Assets | ||||
Cash and cash equivalents | 148 | 96 | 178 | |
Investment in subsidiaries | 7,062 | 7,107 | ||
Notes receivable from parent and affiliates | 2,334 | 1,992 | ||
Restricted cash and restricted cash equivalents | 9 | 5 | $ 3 | |
Other assets | 159 | 188 | ||
Total assets | 9,712 | 9,388 | ||
Liabilities and Shareholder’s Equity | ||||
Long-term debt (includes debt of consolidated VIEs of $8.7 billion in 2017 and $8.2 billion in 2016) | 4,824 | 4,162 | ||
Intercompany note payable | 436 | 409 | ||
Deferred and accrued taxes | 46 | 164 | ||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2017 and $12 million in 2016) | 1,004 | 1,380 | ||
Total liabilities | 6,310 | 6,115 | ||
Shareholder’s equity | 3,402 | 3,273 | ||
Total liabilities and shareholder’s equity | $ 9,712 | $ 9,388 |
Schedule I - Condensed Finan132
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Statements of Operations and Comprehensive Loss | |||||||||||
Interest income on notes receivable from parent | $ 23 | $ 19 | $ 15 | ||||||||
Interest expense | $ 204 | $ 207 | $ 203 | $ 202 | $ 201 | $ 215 | $ 214 | $ 226 | 816 | 856 | 715 |
Net interest income | 2,371 | 2,240 | 1,195 | ||||||||
Investment | 73 | 86 | 50 | ||||||||
Other revenues | 139 | 149 | 117 | 135 | 138 | 151 | 158 | 307 | 540 | 754 | 275 |
Other expenses | 382 | 401 | 386 | 400 | 409 | 396 | 416 | 447 | 1,569 | 1,668 | 955 |
Income tax expense (benefit) | 161 | 44 | 20 | 18 | 0 | 16 | 20 | 91 | 243 | 127 | (122) |
Net income (loss) | $ 16 | $ 61 | $ 47 | $ 28 | $ 38 | $ 30 | $ 29 | $ 173 | 152 | 270 | (74) |
Comprehensive income (loss) | 164 | 297 | (110) | ||||||||
SPRINGLEAF FINANCE CORPORATION | |||||||||||
Condensed Statements of Operations and Comprehensive Loss | |||||||||||
Interest income on notes receivable from parent | 131 | 104 | 56 | ||||||||
Interest expense | 430 | 459 | 502 | ||||||||
Net interest income | (299) | (355) | (446) | ||||||||
Investment | 2 | 1 | 13 | ||||||||
Other revenues | (26) | (14) | 0 | ||||||||
Other revenues | 6 | 4 | 0 | ||||||||
Total other revenues | (18) | (9) | 13 | ||||||||
Other expenses | 41 | 9 | 1 | ||||||||
Income (loss) before income tax expense (benefit) | (358) | (373) | (434) | ||||||||
Income tax expense (benefit) | (118) | (138) | (160) | ||||||||
Equity in undistributed net income (loss) from subsidiaries | 392 | 477 | 73 | ||||||||
Net income (loss) | 152 | 242 | (201) | ||||||||
Other comprehensive income (loss), net of tax | 12 | 27 | (36) | ||||||||
Comprehensive income (loss) | $ 164 | $ 269 | $ (237) |
- Condensed Statements of Cash
- Condensed Statements of Cash Flows(Details) - USD ($) $ in Millions | Nov. 12, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Statements of Cash Flows | ||||||||
Net cash provided by operating activities | $ 1,647 | $ 1,158 | $ 764 | |||||
Cash flows from investing activities | ||||||||
Proceeds from repayments of principal on intercompany note to parent | 249 | 401 | 189 | |||||
Special capital contribution | 0 | 23 | 0 | |||||
Net cash provided by (used for) investing activities | (2,280) | 63 | (2,254) | |||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of long-term debt, net of commissions | 5,427 | 6,660 | 3,028 | |||||
Repayments of long-term debt | (4,447) | (8,320) | (1,960) | |||||
Proceeds from intercompany note payable | 0 | 0 | ||||||
Repayments on intercompany note payable | 0 | |||||||
Capital contributions from parent | 0 | 10 | 1,100 | |||||
Net cash provided by (used for) financing activities | 968 | (1,669) | 2,092 | |||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 335 | (448) | 602 | |||||
Cash and cash equivalents at beginning of period | 553 | 893 | ||||||
Cash and cash equivalents | 958 | 553 | 893 | |||||
Condensed Financial Information [Abstract] | ||||||||
Cash and cash equivalents | 553 | 893 | 893 | $ 958 | $ 553 | $ 893 | ||
Restricted cash and restricted cash equivalents | 498 | 568 | 676 | |||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 1,456 | 1,121 | 1,569 | $ 967 | ||||
SPRINGLEAF FINANCE CORPORATION | ||||||||
Condensed Statements of Cash Flows | ||||||||
Net cash provided by operating activities | (601) | 557 | 173 | |||||
Cash flows from investing activities | ||||||||
Cash advances on notes receivable with parent and affiliates | 4,322 | 5,827 | 2,256 | |||||
Proceeds from repayments of principal on intercompany note to parent | 3,980 | 4,683 | 2,968 | |||||
Distributions from subsidiaries | 413 | 499 | 326 | |||||
Special capital contribution | 0 | 0 | (3,393) | |||||
Sale of available-for-sale securities | 0 | 10 | 2,306 | |||||
Net cash provided by (used for) investing activities | 71 | (635) | (49) | |||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of long-term debt, net of commissions | 1,861 | 995 | 0 | |||||
Repayments of long-term debt | (1,302) | (1,020) | (798) | |||||
Proceeds from intercompany note payable | 27 | 24 | 392 | |||||
Repayments on intercompany note payable | 0 | (1) | (7) | |||||
Net cash provided by (used for) financing activities | 586 | (2) | (413) | |||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 56 | (80) | (289) | |||||
Cash and cash equivalents at beginning of period | 96 | 178 | ||||||
Cash and cash equivalents | 148 | 96 | 178 | |||||
Condensed Financial Information [Abstract] | ||||||||
Cash and cash equivalents | 96 | 178 | 178 | 148 | 96 | 178 | ||
Restricted cash and restricted cash equivalents | 9 | 5 | 3 | |||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ 157 | $ 101 | $ 181 | $ 470 | ||||
Supplemental non-cash activities | ||||||||
Noncash or Part Noncash Acquisition, Net Nonmonetary Assets Acquired (Liabilities Assumed) | $ 0 | $ 0 | $ 1,100 | |||||
Springfield Financial Cash Services, Inc | Independence | ||||||||
Cash flows from investing activities | ||||||||
Cash advances on notes receivable with parent and affiliates | $ 3,400 |
Schedule I - Condensed Finan134
Schedule I - Condensed Financial Information of Registrant - Related Party Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2015 |
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | $ 391 | $ 391 | $ 285 | |
Note payable to parent and affiliates | 0 | 0 | 0 | |
Income taxes receivable | 13 | 13 | 20 | |
Payables to parent and affiliates | 189 | 189 | 39 | |
Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Income taxes receivable | 140 | 140 | 187 | |
SFI | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | 391 | 391 | 285 | |
OneMain General Services Corporation | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Payables to parent and affiliates | 1,000 | 1,000 | 1,400 | |
OneMain Demand Note | OneMain Financial Holdings, Inc. | ||||
Related Party Transaction [Line Items] | ||||
Revolving demand note, maximum commitment | 1,600 | $ 1,600 | ||
Notes Payable, Other Payables | Springleaf Acquisition Corporation | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Issue Amount | $ 374 | |||
Debt instrument, maximum amount outstanding during period | 500 | |||
Debt instrument, basis spread on variable rate | 0.25% | |||
Note payable to parent and affiliates | 436 | $ 436 | 409 | |
Interest expense, debt | 27 | 24 | ||
SPRINGLEAF FINANCE CORPORATION | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | 2,334 | 2,334 | 1,992 | |
SPRINGLEAF FINANCE CORPORATION | SFI | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | 390 | 390 | 285 | |
SPRINGLEAF FINANCE CORPORATION | OneMain Financial Holdings, Inc. | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | 1,214 | 1,214 | 530 | |
SPRINGLEAF FINANCE CORPORATION | Springfield Financial Cash Services, Inc | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | 539 | 539 | 950 | |
SPRINGLEAF FINANCE CORPORATION | Securitizations | Affiliated companies | ||||
Related Party Transaction [Line Items] | ||||
Notes receivable from parent and affiliates | $ 191 | $ 191 | $ 227 |
Schedule I - Condensed Finan135
Schedule I - Condensed Financial Information of Registrant - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 08, 2017 | May 30, 2017 | May 15, 2017 | Dec. 31, 2016 |
Principal maturities of long-term debt | |||||
2,018 | $ 700 | ||||
2,019 | 696 | ||||
2,020 | 1,299 | ||||
2,021 | 1,446 | ||||
2,022 | 1,000 | ||||
2023-2067 | 1,525 | ||||
Total principal maturities | 15,377 | ||||
Carrying Value | 15,050 | $ 13,959 | |||
Senior debt | |||||
Principal maturities of long-term debt | |||||
Total principal maturities | 1,500 | ||||
Carrying Value | 14,878 | 13,787 | |||
SPRINGLEAF FINANCE CORPORATION | |||||
Principal maturities of long-term debt | |||||
2,018 | 0 | ||||
2,019 | 700 | ||||
2,020 | 1,300 | ||||
2,021 | 650 | ||||
2,022 | 1,000 | ||||
2023-2067 | 1,525 | ||||
Total principal maturities | 5,175 | ||||
Carrying Value | 4,824 | $ 4,162 | |||
SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt | |||||
Principal maturities of long-term debt | |||||
Carrying Value | 1,600 | ||||
Senior Notes 5.625% | Senior debt | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 5.625% | ||||
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||
Principal maturities of long-term debt | |||||
Total principal maturities | $ 875 | ||||
Senior Notes 5.625% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 5.625% | ||||
Senior Notes 6.125% | Senior debt | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 6.125% | 6.125% | |||
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||
Principal maturities of long-term debt | |||||
Total principal maturities | $ 1,000 | ||||
Senior Notes 6.125% | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | Senior debt | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 6.125% | ||||
Senior Notes 5.25 Percent Due 2019 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 5.25% | ||||
Springleaf Finance Corporation | Senior Note 8.25%, due 2020 | SPRINGLEAF FINANCE CORPORATION | Guaranty Agreements | |||||
Guarantee agreements | |||||
Interest rates (as a percent) | 8.25% |