Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36129 | |
Entity Registrant Name | ONEMAIN HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-3379612 | |
Entity Address, Address Line One | 601 N.W. Second Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | 812 | |
Local Phone Number | 424-8031 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | OMF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,325,845 | |
Entity Central Index Key | 0001584207 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
OMFC | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-06155 | |
Entity Registrant Name | ONEMAIN FINANCE CORPORATION | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0416090 | |
Entity Address, Address Line One | 601 N.W. Second Street | |
Entity Address, City or Town | Evansville | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47708 | |
City Area Code | 812 | |
Local Phone Number | 424-8031 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,160,021 | |
Entity Central Index Key | 0000025598 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,944 | $ 1,227 |
Investment securities (includes available-for-sale securities with a fair value of $1.8 billion and an amortized cost basis of $1.7 billion in 2020) | 1,882 | 1,884 |
Net finance receivables (includes loans of consolidated VIEs of $9.4 billion in 2020 and $8.4 billion in 2019) | 17,817 | 18,389 |
Unearned insurance premium and claim reserves | (778) | (793) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2020 and $340 million in 2019) | (2,324) | (829) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 14,715 | 16,767 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $479 million in 2020 and $400 million in 2019) | 497 | 405 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 315 | 343 |
Other assets | 1,082 | 769 |
Total assets | 21,857 | 22,817 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.4 billion in 2020 and $7.6 billion in 2019) | 17,531 | 17,212 |
Insurance claims and policyholder liabilities | 620 | 649 |
Deferred and accrued taxes | 55 | 34 |
Other liabilities | 528 | 592 |
Total liabilities | 18,734 | 18,487 |
Contingencies (Note 14) | ||
Shareholders’ equity: | ||
Common stock | 1 | 1 |
Additional paid-in capital | 1,651 | 1,689 |
Accumulated other comprehensive income | 79 | 44 |
Retained earnings | 1,392 | 2,596 |
Total shareholders’ equity | 3,123 | 4,330 |
Total liabilities and shareholders’ equity | 21,857 | 22,817 |
OMFC | ||
Assets | ||
Cash and cash equivalents | 1,944 | 1,227 |
Investment securities (includes available-for-sale securities with a fair value of $1.8 billion and an amortized cost basis of $1.7 billion in 2020) | 1,882 | 1,884 |
Net finance receivables (includes loans of consolidated VIEs of $9.4 billion in 2020 and $8.4 billion in 2019) | 17,817 | 18,389 |
Unearned insurance premium and claim reserves | (778) | (793) |
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $1.2 billion in 2020 and $340 million in 2019) | (2,324) | (829) |
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 14,715 | 16,767 |
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $479 million in 2020 and $400 million in 2019) | 497 | 405 |
Goodwill | 1,422 | 1,422 |
Other intangible assets | 315 | 343 |
Other assets | 1,081 | 768 |
Total assets | 21,856 | 22,816 |
Liabilities and Shareholders’ Equity | ||
Long-term debt (includes debt of consolidated VIEs of $8.4 billion in 2020 and $7.6 billion in 2019) | 17,531 | 17,212 |
Insurance claims and policyholder liabilities | 620 | 649 |
Deferred and accrued taxes | 57 | 35 |
Other liabilities | 526 | 595 |
Total liabilities | 18,734 | 18,491 |
Contingencies (Note 14) | ||
Shareholders’ equity: | ||
Common stock | 5 | 5 |
Additional paid-in capital | 1,895 | 1,888 |
Accumulated other comprehensive income | 79 | 44 |
Retained earnings | 1,143 | 2,388 |
Total shareholders’ equity | 3,122 | 4,325 |
Total liabilities and shareholders’ equity | $ 21,856 | $ 22,816 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value | $ 1,806 | $ 1,798 |
Investment, amortized cost basis | 1,705 | 1,745 |
Net finance receivables | 17,817 | 18,389 |
Financing receivable, allowance for credit loss | 2,324 | 829 |
Restricted cash and restricted cash equivalents | 497 | 405 |
Long-term debt | 17,531 | 17,212 |
Other liabilities | $ 528 | $ 592 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued (in shares) | 134,323,013 | 136,101,156 |
Common stock, shares outstanding (in shares) | 134,323,013 | 136,101,156 |
Finance receivable - Personal loan | ||
Net finance receivables | $ 17,817 | $ 18,389 |
Financing receivable, allowance for credit loss | 2,324 | 829 |
OMFC | ||
Fair Value | 1,800 | |
Investment, amortized cost basis | 1,700 | |
Net finance receivables | 17,817 | 18,389 |
Financing receivable, allowance for credit loss | 2,324 | 829 |
Restricted cash and restricted cash equivalents | 497 | 405 |
Long-term debt | 17,531 | 17,212 |
Other liabilities | $ 526 | $ 595 |
Common stock, par value (in dollars 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 | ||
Financing receivable, allowance for credit loss | $ 1,184 | $ 340 |
Restricted cash and restricted cash equivalents | 479 | 400 |
Long-term debt | 8,366 | 7,643 |
Other liabilities | 15 | 14 |
Consolidated VIEs | Finance receivable - Personal loan | ||
Net finance receivables | 9,371 | 8,428 |
Consolidated VIEs | OMFC | ||
Financing receivable, allowance for credit loss | 1,200 | 340 |
Restricted cash and restricted cash equivalents | 479 | 400 |
Long-term debt | 8,400 | 7,600 |
Other liabilities | 15 | 14 |
Consolidated VIEs | OMFC | Finance receivable - Personal loan | ||
Net finance receivables | $ 9,400 | $ 8,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | $ 1,089 | $ 1,065 | $ 3,273 | $ 3,020 |
Interest expense | 255 | 244 | 781 | 717 |
Net interest income | 834 | 821 | 2,492 | 2,303 |
Provision for finance receivable losses | 231 | 282 | 1,186 | 836 |
Net interest income after provision for finance receivable losses | 603 | 539 | 1,306 | 1,467 |
Other revenues: | ||||
Insurance | 109 | 117 | 334 | 341 |
Investment | 17 | 21 | 56 | 71 |
Net loss on repurchase and repayment of debt | (38) | (2) | (38) | (35) |
Net gain on sale of real estate loans | 0 | 0 | 0 | 3 |
Other | 13 | 20 | 38 | 80 |
Total other revenues | 101 | 156 | 390 | 460 |
Other expenses: | ||||
Salaries and benefits | 186 | 205 | 568 | 609 |
Other operating expenses | 134 | 146 | 425 | 422 |
Insurance policy benefits and claims | 43 | 47 | 201 | 141 |
Total other expenses | 363 | 398 | 1,194 | 1,172 |
Income (loss) before income tax expense (benefit) | 341 | 297 | 502 | 755 |
Income tax expense (benefit) | 91 | 49 | 131 | 161 |
Net income | $ 250 | $ 248 | $ 371 | $ 594 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 134,321,929 | 136,095,481 | 134,847,170 | 136,060,832 |
Diluted (in shares) | 134,507,549 | 136,376,051 | 134,999,487 | 136,272,391 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.86 | $ 1.82 | $ 2.75 | $ 4.36 |
Diluted (in dollars per share) | $ 1.86 | $ 1.82 | $ 2.75 | $ 4.36 |
OMFC | ||||
Interest income | $ 1,089 | $ 1,065 | $ 3,273 | $ 3,020 |
Interest expense | 255 | 247 | 781 | 719 |
Net interest income | 834 | 818 | 2,492 | 2,301 |
Provision for finance receivable losses | 231 | 282 | 1,186 | 836 |
Net interest income after provision for finance receivable losses | 603 | 536 | 1,306 | 1,465 |
Other revenues: | ||||
Insurance | 109 | 117 | 334 | 341 |
Investment | 17 | 21 | 56 | 71 |
Net loss on repurchase and repayment of debt | (38) | (2) | (38) | (35) |
Net gain on sale of real estate loans | 0 | 0 | 0 | 3 |
Other | 13 | 20 | 38 | 88 |
Total other revenues | 101 | 156 | 390 | 468 |
Other expenses: | ||||
Salaries and benefits | 186 | 205 | 568 | 609 |
Other operating expenses | 134 | 145 | 425 | 421 |
Insurance policy benefits and claims | 43 | 47 | 201 | 141 |
Total other expenses | 363 | 397 | 1,194 | 1,171 |
Income (loss) before income tax expense (benefit) | 341 | 295 | 502 | 762 |
Income tax expense (benefit) | 91 | 51 | 131 | 165 |
Net income | $ 250 | $ 244 | $ 371 | $ 597 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income | $ 250 | $ 248 | $ 371 | $ 594 |
Other comprehensive income: | ||||
Net change in unrealized gains on non-credit impaired available-for-sale securities | 16 | 14 | 49 | 90 |
Foreign currency translation adjustments | 2 | (1) | (3) | 3 |
Income tax effect: | ||||
Net change in unrealized gains on non-credit impaired available-for-sale securities | (4) | (3) | (11) | (21) |
Foreign currency translation adjustments | 0 | 0 | 1 | 0 |
Other comprehensive income, net of tax, before reclassification adjustments | 14 | 10 | 36 | 72 |
Net realized gains on available-for-sale securities, net of tax | 0 | 0 | (1) | 0 |
Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | 0 |
Other comprehensive income, net of tax | 14 | 10 | 35 | 72 |
Comprehensive income | 264 | 258 | 406 | 666 |
OMFC | ||||
Net income | 250 | 244 | 371 | 597 |
Other comprehensive income: | ||||
Net change in unrealized gains on non-credit impaired available-for-sale securities | 16 | 14 | 49 | 90 |
Foreign currency translation adjustments | 2 | (1) | (3) | 4 |
Income tax effect: | ||||
Net change in unrealized gains on non-credit impaired available-for-sale securities | (4) | (3) | (11) | (21) |
Retirement plan liability adjustments | 0 | 0 | 0 | 1 |
Foreign currency translation adjustments | 0 | 0 | 1 | 0 |
Other comprehensive income, net of tax, before reclassification adjustments | 14 | 10 | 36 | 72 |
Net realized gains on available-for-sale securities, net of tax | 0 | 0 | (1) | 0 |
Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | 0 |
Other comprehensive income, net of tax | 14 | 10 | 35 | 72 |
Comprehensive income | $ 264 | $ 254 | $ 406 | $ 669 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Millions | Total | Net impact of adoption of ASU 2016-13 | Balance post-adoption | Common Stock | Common StockBalance post-adoption | Additional Paid-in Capital | Additional Paid-in CapitalBalance post-adoption | Total Accumulated Other Comprehensive Income (Loss) | Total Accumulated Other Comprehensive Income (Loss)Balance post-adoption | Retained Earnings | Retained EarningsNet impact of adoption of ASU 2016-13 | [1] | Retained EarningsBalance post-adoption | OMFC | OMFCBalance post-adoption | OMFCCommon Stock | OMFCCommon StockBalance post-adoption | OMFCAdditional Paid-in Capital | OMFCAdditional Paid-in CapitalBalance post-adoption | OMFCTotal Accumulated Other Comprehensive Income (Loss) | OMFCTotal Accumulated Other Comprehensive Income (Loss)Balance post-adoption | OMFCRetained Earnings | OMFCRetained EarningsBalance post-adoption | SMHCOMFC | SMHCOMFCAdditional Paid-in Capital | ||
Balance at beginning of period at Dec. 31, 2018 | $ 3,799 | $ 1 | $ 1,681 | $ (34) | $ 2,151 | $ 4,021 | $ 5 | $ 2,110 | $ (34) | $ 1,940 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Contribution of SCHC to OMFC from SFI | $ 34 | $ 34 | |||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 10 | 10 | 10 | 10 | |||||||||||||||||||||||
Withholding tax on share-based compensation | (5) | (5) | (5) | (5) | |||||||||||||||||||||||
Other comprehensive income (loss) | 72 | 72 | 72 | 72 | |||||||||||||||||||||||
Merger of SFI with OMFC | (408) | (408) | |||||||||||||||||||||||||
Cash contribution from OMH | 144 | 144 | |||||||||||||||||||||||||
Cash dividends | (376) | [1] | (376) | [1] | (376) | (376) | |||||||||||||||||||||
Net income | 594 | 594 | 597 | 597 | |||||||||||||||||||||||
Balance at end of period at Sep. 30, 2019 | $ 4,094 | 1 | 1,686 | 38 | 2,369 | 4,089 | 5 | 1,885 | 38 | 2,161 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 2.75 | ||||||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2018 | $ 3,799 | 1 | 1,681 | (34) | 2,151 | 4,021 | 5 | 2,110 | (34) | 1,940 | |||||||||||||||||
Balance at end of period at Dec. 31, 2019 | $ 4,330 | $ (828) | $ 3,502 | 1 | $ 1 | 1,689 | $ 1,689 | 44 | $ 44 | 2,596 | $ (828) | $ 1,768 | 4,325 | $ 3,497 | 5 | $ 5 | 1,888 | $ 1,888 | 44 | $ 44 | 2,388 | $ 1,560 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2019 | $ 4,141 | 1 | 1,683 | 28 | 2,429 | 4,404 | 5 | 2,146 | 28 | 2,225 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 3 | 3 | 3 | 3 | |||||||||||||||||||||||
Other comprehensive income (loss) | 10 | 10 | 10 | 10 | |||||||||||||||||||||||
Merger of SFI with OMFC | (408) | (408) | |||||||||||||||||||||||||
Cash contribution from OMH | 144 | 144 | |||||||||||||||||||||||||
Cash dividends | (308) | [1] | (308) | [1] | (308) | (308) | |||||||||||||||||||||
Net income | 248 | 248 | 244 | 244 | |||||||||||||||||||||||
Balance at end of period at Sep. 30, 2019 | $ 4,094 | 1 | 1,686 | 38 | 2,369 | 4,089 | 5 | 1,885 | 38 | 2,161 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 2.25 | ||||||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 4,330 | $ (828) | $ 3,502 | 1 | $ 1 | 1,689 | $ 1,689 | 44 | $ 44 | 2,596 | $ (828) | $ 1,768 | 4,325 | $ 3,497 | 5 | $ 5 | 1,888 | $ 1,888 | 44 | $ 44 | 2,388 | $ 1,560 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Common stock repurchased and retired | (45) | (45) | |||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 13 | 13 | 13 | 13 | |||||||||||||||||||||||
Withholding tax on share-based compensation | (6) | (6) | (6) | (6) | |||||||||||||||||||||||
Other comprehensive income (loss) | 35 | 35 | 35 | 35 | |||||||||||||||||||||||
Cash dividends | (747) | [1] | (747) | [1] | (788) | (788) | |||||||||||||||||||||
Net income | 371 | 371 | 371 | 371 | |||||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | $ 3,123 | 1 | 1,651 | 79 | 1,392 | 3,122 | 5 | 1,895 | 79 | 1,143 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 5.49 | ||||||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2020 | $ 3,171 | 1 | 1,648 | 65 | 1,457 | 3,170 | 5 | 1,892 | 65 | 1,208 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | 3 | 3 | 3 | 3 | |||||||||||||||||||||||
Other comprehensive income (loss) | 14 | 14 | 14 | 14 | |||||||||||||||||||||||
Cash dividends | (315) | [1] | (315) | [1] | (315) | (315) | |||||||||||||||||||||
Net income | 250 | 250 | 250 | 250 | |||||||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | $ 3,123 | $ 1 | $ 1,651 | $ 79 | $ 1,392 | $ 3,122 | $ 5 | $ 1,895 | $ 79 | $ 1,143 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Dividends declared (in dollars per share) | $ 2.33 | ||||||||||||||||||||||||||
[1] | Cash dividends declared were $2.33 per share and $2.25 per share during the three months ended September 30, 2020 and 2019, respectively, and $5.49 per share and $2.75 per share during the nine months ended September 30, 2020 and 2019, respectively. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 371 | $ 594 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 1,186 | 836 |
Depreciation and amortization | 196 | 203 |
Deferred income tax charge (benefit) | (72) | 8 |
Net loss on repurchase and repayment of debt | 38 | 35 |
Share-based compensation expense, net of forfeitures | 13 | 10 |
Other | 5 | (8) |
Cash flows due to changes in other assets and other liabilities | (108) | 51 |
Net cash provided by operating activities | 1,629 | 1,729 |
Cash flows from investing activities | ||
Net principal originations of finance receivables held for investment and held for sale | (278) | (2,445) |
Proceeds on sale of finance receivables held for sale originated as held for investment | 0 | 19 |
Available-for-sale securities purchased | (341) | (499) |
Available-for-sale securities called, sold, and matured | 383 | 457 |
Other securities purchased | (11) | (13) |
Other securities called, sold, and matured | 11 | 26 |
Other, net | (21) | (1) |
Net cash used for investing activities | (257) | (2,456) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 6,445 | 5,157 |
Repayment of long-term debt | (6,212) | (3,402) |
Cash dividends | (745) | (374) |
Common stock repurchased and retired | (45) | 0 |
Withholding tax on share-based compensation | (6) | (5) |
Net cash provided by (used in) financing activities | (563) | 1,376 |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 809 | 649 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,632 | 1,178 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 2,441 | 1,827 |
Supplemental cash flow information | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 2,441 | 1,827 |
Cash paid for amounts included in the measurement of operating lease liabilities | 44 | 44 |
Supplemental non-cash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 34 | 221 |
Non-cash contribution of SCLH | 0 | 22 |
OMFC | ||
Cash flows from operating activities | ||
Net income | 371 | 597 |
Reconciling adjustments: | ||
Provision for finance receivable losses | 1,186 | 836 |
Depreciation and amortization | 196 | 203 |
Deferred income tax charge (benefit) | (72) | 9 |
Net loss on repurchase and repayment of debt | 38 | 35 |
Share-based compensation expense, net of forfeitures | 13 | 10 |
Other | 5 | (8) |
Cash flows due to changes in other assets and other liabilities | (112) | 77 |
Net cash provided by operating activities | 1,625 | 1,759 |
Cash flows from investing activities | ||
Net principal originations of finance receivables held for investment and held for sale | (278) | (2,445) |
Proceeds on sale of finance receivables held for sale originated as held for investment | 0 | 19 |
Available-for-sale securities purchased | (341) | (499) |
Available-for-sale securities called, sold, and matured | 383 | 457 |
Other securities purchased | (11) | (13) |
Other securities called, sold, and matured | 11 | 26 |
Other, net | (21) | (1) |
Net cash used for investing activities | (257) | (2,456) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt, net of commissions | 6,445 | 5,157 |
Repayment of long-term debt | (6,212) | (3,402) |
Cash dividends | (45) | |
Cash contribution from OMH | 0 | 144 |
Payments on intercompany notes payable | 0 | (170) |
Withholding tax on share-based compensation | (6) | (5) |
Net cash provided by (used in) financing activities | (559) | 1,362 |
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | 809 | 665 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 1,632 | 1,162 |
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | 2,441 | 1,827 |
Supplemental cash flow information | ||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | 2,441 | 1,827 |
Cash paid for amounts included in the measurement of operating lease liabilities | 44 | 44 |
Supplemental non-cash activities | ||
Right-of-use assets obtained in exchange for operating lease obligations | 34 | 221 |
Non-cash merger of SFI with OMFC | 0 | (408) |
SCLH | OMFC | ||
Cash flows from financing activities | ||
Cash contribution of related party | 0 | 12 |
Supplemental non-cash activities | ||
Non-cash contribution of SCLH | 0 | 22 |
OMH | OMFC | ||
Cash flows from financing activities | ||
Cash dividends | $ (786) | $ (374) |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | 1. Business and Basis of Presentation OneMain Holdings, Inc. (“OMH”), and its wholly-owned direct subsidiary, OneMain Finance Corporation (“OMFC”) (formerly known as Springleaf Finance Corporation (“SFC”)) are financial services holding companies whose subsidiaries engage in the consumer finance and insurance businesses. Prior to the completion of the merger described below, OMH’s direct subsidiary was Springleaf Finance, Inc. (“SFI”). Effective July 1, 2020, SFC was renamed to OMFC. The name change did not affect OMFC’s legal entity structure, nor did it have an impact on OMH’s or OMFC’s financial statements. OMFC is used in this report to include references to transactions and arrangements occurring prior to the name change. On September 20, 2019, OMFC entered into a merger agreement with its direct parent, SFI, to merge SFI with and into OMFC, with OMFC as the surviving entity. The merger was effective in OMFC's condensed consolidated financial statements as of July 1, 2019. As a result of the merger with SFI, OMFC became a wholly-owned direct subsidiary of OMH. OMH and OMFC are referred to in this report, collectively with their subsidiaries, whether directly or indirectly owned, as “the Company,” “we,” “us,” or “our.” The information in this Quarterly Report on Form 10-Q is equally applicable to OMH and OMFC, except where otherwise indicated. At September 30, 2020, the Apollo-Värde Group owned approximately 40.9% of OMH’s common stock. BASIS OF PRESENTATION We prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. The statements include the accounts of OMH, its subsidiaries (all of which are wholly-owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date. We eliminated all material intercompany accounts and transactions. We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual 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 2020 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. The condensed consolidated financial statements in this report should be read in conjunction with the consolidated financial statements and related notes included in our 2019 Annual Report on Form 10-K. We follow the same significant accounting policies for our interim reporting, except for the new accounting pronouncements subsequently adopted and disclosed in Note 3 below. |
Reconciliation of OneMain Finan
Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results | 2. Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results The results of OMFC are consolidated into the results of OMH. Due to the nominal differences between OMFC and OMH, content throughout this filing relates to both OMH and OMFC. OMFC disclosures relate only to itself and not to any other company. Except where otherwise indicated, and excluding certain insignificant cash and non-cash transactions at the OMH level, these notes relate to the condensed consolidated financial statements for both companies, OMH and OMFC. In addition to certain intercompany payable and receivable amounts between the entities, the following is a reconciliation of the condensed consolidated balance sheets and results of our condensed consolidated statements of operations of OMFC to OMH: September 30, 2020 December 31, 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Other assets $ 1,082 $ 1,081 $ 1 $ 769 $ 768 $ 1 Deferred and accrued taxes 55 57 (2) 34 35 (1) Other liabilities 528 526 2 592 595 (3) Total shareholders' equity (a) 3,123 3,122 1 4,330 4,325 5 Three Months Ended September 30, 2020 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Interest expense $ 255 $ 255 $ — $ 244 $ 247 $ (3) Other operating expenses 134 134 — 146 145 1 Income before income taxes 341 341 — 297 295 2 Income taxes 91 91 — 49 51 (2) Net Income 250 250 — 248 244 4 Nine Months Ended September 30, 2020 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Interest expense $ 781 $ 781 $ — $ 717 $ 719 $ (2) Other revenues (b) 38 38 — 80 88 (8) Other operating expenses 425 425 — 422 421 1 Income before income taxes 502 502 — 755 762 (7) Income taxes 131 131 — 161 165 (4) Net Income 371 371 — 594 597 (3) (a) The differences between total shareholders’ equity in the periods ended September 30, 2020 and December 31, 2019 were due to historical differences in results of operations of the companies and differences in equity awards. (b) Other revenues include the interest income on notes receivables from parent, which were notes from SFI held by OMFC and Springleaf Mortgage Holding Company and subsidiaries (“SMHC”), a wholly-owned direct subsidiary of OMFC. See Note 1 and below for further discussion of the merger between SFI and OMFC. The following transactions are related to OMFC and have no impact on OMH's condensed consolidated financial results. Merger of SFI into OMFC On September 20, 2019, OMFC entered into a merger agreement with its direct parent SFI, to merge SFI with and into OMFC, with OMFC as the surviving entity. The merger was effective in OMFC's condensed consolidated financial statements as of July 1, 2019. In conjunction with the merger, the net deficiency of SFI, after elimination of its investment in OMFC, was absorbed by OMFC resulting in an equity reduction of $408 million to OMFC, which included the elimination of the intercompany notes and receivables between OMFC and SFI, as discussed below. The net deficiency of SFI included an intercompany note payable plus accrued interest of $166 million from SFI to OMH, which OMFC assumed through the merger. On September 23, 2019, OMFC repaid SFI’s note to OMH. Concurrently, OMH paid $22 million in other payables due to OMFC and made an equity contribution of $144 million to OMFC. The transactions noted above resulted in a net $264 million reduction to OMFC's equity. OMFC's Notes Receivable from Parent As a result of the merger between SFI and OMFC, described in Note 1 and above, a $232 million note receivable from SFI to OMFC was dissolved effective July 1, 2019. Additionally, OMFC assumed a $28 million note payable from SFI to SMHC, a wholly-owned subsidiary of OMFC, and OMFC subsequently paid off the note on September 23, 2019. For the three months ended September 30, 2019, there was no interest income recognized on these notes. For the nine months ended September 30, 2019, interest income on these notes totaled $8 million, which we report in other revenues. Springleaf Consumer Loan Holding Company (“SCLH”) Contribution On March 10, 2019, all of the outstanding capital stock of SCLH, a subsidiary of SFI, was contributed to OMFC and SCLH became a wholly-owned direct subsidiary of OMFC. The contribution was effective as of January 1, 2019 and increased OMFC’s total shareholder’s equity and total assets by $34 million and $53 million, respectively. The contribution is presented prospectively because it is deemed to be a contribution of net assets. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Financial Instruments - Credit Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities are 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 previously required. The new approach requires entities to measure all expected credit losses for financial assets over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the growth of our loan portfolio, mix of secured and unsecured loans, credit quality, and the economic environment at that time. In addition, the ASU developed a new accounting treatment for purchased financial assets with credit deterioration. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-13 We adopted the amendments of these ASUs as of January 1, 2020. Upon adoption, we recorded an increase to the allowance for finance receivable losses of $1.12 billion, an increase to deferred tax assets of $0.28 billion, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $0.83 billion in the consolidated balance sheet as of January 1, 2020. The adoption of this ASU, as it relates to available-for-sale debt securities, did not have a material impact on the consolidated financial statements as of January 1, 2020. As a result of the adoption of ASU 2016-13, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for these updated significant accounting policies as of January 1, 2020. 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 level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our finance receivable portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our finance receivables are primarily segmented in the loss model by contractual delinquency status. Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates and bankruptcy filings. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. We have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors, such as recent portfolio, industry, and other economic trends, and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. 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 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 the impairment as a direct write-down in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period. 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. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, not to exceed the total unrealized loss on the security. The cash flows expected to be collected are determined by assessing all available information, including 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, a credit impairment is considered to have occurred. If a credit impairment 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 bifurcated as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to non-credit related factors. We recognize the estimated credit loss as an allowance on the balance sheet in investment securities, with a corresponding loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. For investment securities in which a credit impairment was recorded through an allowance, we record subsequent increases and decreases in the allowance for credit losses as credit loss expense or reversal of credit loss expense in investment revenues. We will not reverse a previously recorded allowance to an amount below zero. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss. Interest receivables on our investment securities are excluded from the amortized cost and fair value and are recorded in “Other assets.” We have elected not to measure an allowance on interest receivables due to our policy to reverse interest receivable at the time collectability is uncertain. The reversal of interest receivable is recorded in investment revenue. See Notes 4, 5, and 7 for additional information on the adoption of ASU 2016-13. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. Under current guidance, this ASU will become effective for us beginning January 1, 2022. In July of 2020, the FASB proposed a one-year deferral of this ASU to become effective for public entities for fiscal years beginning January 1, 2023. We have a cross-functional implementation team and a project plan to ensure we comply with all the amendments in this ASU at the time of adoption. We have engaged various vendors to assess a software solution to meet the new accounting and disclosure requirements of the ASU and are currently working toward an agreement with our preferred candidate. We continue to make progress in evaluating the potential impact of the adoption of the ASU on our consolidated financial statements. We do not believe that any other accounting pronouncements issued, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Finance Receivables | 4. Finance Receivables Our finance receivables consist of personal loans, which are non-revolving, with a fixed-rate, fixed terms generally between three Net finance receivables consist of our total portfolio of personal loans. Components of our personal loans were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Gross receivables * $ 17,606 $ 18,195 Unearned points and fees (224) (242) Accrued finance charges 290 289 Deferred origination costs 145 147 Total $ 17,817 $ 18,389 * Gross receivables equal the unpaid principal balance (“UPB”) except for the following: • Finance receivables purchased as a performing receivable — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase to reflect the finance receivable balance at its initial fair value; • Purchased credit impaired finance receivables — gross receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts established prior to the adoption of ASU 2016-13; and • Purchased credit deteriorated finance receivables — gross receivables equal the UPB and any remaining unearned discount established at the time of the adoption of ASU 2016-13 on January 1, 2020. CREDIT QUALITY INDICATOR We consider the delinquency status of our finance receivables as our key credit quality indicator. We monitor the delinquency of our finance receivable portfolio, including the migration between the delinquency buckets and changes in the delinquency trends to manage our exposure to credit risk in the portfolio. When finance receivables are 60 days contractually past due, we consider these accounts to be at an increased risk for loss and we transfer collection of these accounts to our centralized operations. At 90 days or more contractually past due, we consider our finance receivables to be nonperforming. We stop accruing finance charges and reverse finance charges previously accrued on nonperforming loans. We reversed net accrued finance charges of $16 million and $66 million during the three and nine months ended September 30, 2020, respectively. Finance charges recognized from the contractual interest portion of payments received on nonaccrual finance receivables totaled $3 million and $12 million during the three and nine months ended September 30, 2020, respectively. All loans in nonaccrual status are considered in our estimate of allowance for finance receivable losses. The following is a summary of our personal loans held for investment by the year of origination and number of days delinquent, our key credit quality indicator, at September 30, 2020: (dollars in millions) 2020 2019 2018 2017 2016 Prior Total Performing Current $ 6,504 $ 6,940 $ 2,534 $ 844 $ 251 $ 132 $ 17,205 30-59 days past due 36 103 45 19 7 5 215 60-89 days past due 20 66 28 11 4 2 131 Total performing 6,560 7,109 2,607 874 262 139 17,551 Nonperforming (Nonaccrual) 90-179 days past due 26 133 61 23 9 6 258 180 days or more past due — 5 2 1 — — 8 Total nonperforming 26 138 63 24 9 6 266 Total $ 6,586 $ 7,247 $ 2,670 $ 898 $ 271 $ 145 $ 17,817 The following is a summary of our personal loans held for investment by number of days delinquent at December 31, 2019, which is prior to the adoption of ASU 2016-13 on January 1, 2020 and continues to be reported under ASC 310, Receivables : (dollars in millions) Total Performing Current $ 17,550 30-59 days past due 272 60-89 days past due 181 Total performing 18,003 Nonperforming 90-179 days past due 377 180 days or more past due 9 Total nonperforming 386 Total $ 18,389 PURCHASED CREDIT IMPAIRED FINANCE RECEIVABLES ASU 2016-13 superseded the accounting for purchased credit impaired finance receivables with purchase credit deteriorated finance receivables. As a result, we converted all purchased credit impaired finance receivables to purchased credit deteriorated finance receivables in accordance with ASC Topic 326, which resulted in the gross-up of net finance receivables and allowance for finance receivable losses of $15 million on January 1, 2020. Due to the adoption of ASU 2016-13, the following disclosures related to purchase credit impaired finance receivables are no longer applicable for reporting periods beginning in 2020. We previously reported the carrying amount of our purchased credit impaired personal loans in net finance receivables, less allowance for finance receivable losses, and our purchased credit impaired real estate loans in finance receivables held for sale as discussed below. At December 31, 2019, finance receivables held for sale, reported in “Other assets,” totaled $64 million, which include purchased credit impaired real estate loans, as well as TDR real estate loans. See Note 6 for further information on our finance receivables held for sale. Information regarding purchased credit impaired finance receivables were as follows: (dollars in millions) December 31, 2019 Personal Loans Carrying amount, net of allowance $ 40 Outstanding balance (a) 74 Allowance for purchased credit impaired finance receivable losses (b) — Real Estate Loans - Held for Sale Carrying amount $ 19 Outstanding balance (a) 35 (a) Outstanding balance is defined as the UPB of the loans with a net carrying amount. (b) The allowance for purchased credit impaired finance receivable losses reflects the carrying value of the purchased credit impaired loans held for investment exceeding the present value of the expected cash flows. As indicated above, no allowance was required as of December 31, 2019. Changes in accretable yield for purchased credit impaired finance receivables were as follows: (dollars in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Personal Loans Balance at beginning of period $ 46 $ 39 Accretion (6) (15) Reclassifications from nonaccretable difference * — 16 Balance at end of period $ 40 $ 40 Real Estate Loans - Held for Sale Balance at beginning of period $ 23 $ 27 Accretion (1) (2) Transfer due to finance receivables sold — (3) Balance at end of period $ 22 $ 22 * Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. TDR FINANCE RECEIVABLES Information regarding TDR finance receivables were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Personal Loans TDR gross receivables (a) $ 699 $ 655 TDR net receivables (b) 701 658 Allowance for TDR finance receivable losses 321 272 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 49 $ 52 TDR net receivables (b) 49 53 (a) TDR gross receivables — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase if previously purchased as a performing receivable. (b) TDR net receivables — TDR gross receivables net of unearned points and fees, accrued finance charges, and deferred origination costs. TDR average net receivables and finance charges recognized on TDR finance receivables for our personal loans that are held for investment and our real estate loans that are held for sale were as follows: (dollars in millions) Personal Real Estate Loans Total Three Months Ended September 30, 2020 TDR average net receivables $ 701 $ 49 $ 750 TDR finance charges recognized 13 1 14 Three Months Ended September 30, 2019 TDR average net receivables $ 571 $ 55 $ 626 TDR finance charges recognized 11 1 12 Nine Months Ended September 30, 2020 TDR average net receivables $ 692 $ 51 $ 743 TDR finance charges recognized 38 2 40 Nine Months Ended September 30, 2019 TDR average net receivables $ 525 $ 59 $ 584 TDR finance charges recognized 35 2 37 Information regarding the new volume of the TDR finance receivables held for investment were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans Pre-modification TDR net finance receivables $ 105 $ 129 $ 392 $ 373 Post-modification TDR net finance receivables: Rate reduction 67 86 242 257 Other * 38 43 150 116 Total post-modification TDR net finance receivables $ 105 $ 129 $ 392 $ 373 Number of TDR accounts 13,581 18,545 52,780 55,358 * “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. New volume of TDR finance receivables held for sale are not included in the table above as they were immaterial for the three and nine months ended September 30, 2020 and 2019. Personal loans held for investment 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) are reflected in the following table. Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans TDR net finance receivables * $ 20 $ 27 $ 77 $ 66 Number of TDR accounts 2,947 4,202 11,286 10,298 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. Real estate loans 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 immaterial for the three and nine months ended September 30, 2020 and 2019. |
Allowance for Finance Receivabl
Allowance for Finance Receivable Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Allowance for Finance Receivable Losses | 5. Allowance for Finance Receivable Losses We establish an allowance for finance receivable losses through the provision for finance receivable losses. We evaluate our finance receivable portfolio by the level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. We estimate and record an allowance for finance receivable losses to cover the estimated lifetime expected credit losses on our finance receivables, pursuant to the adoption of ASU 2016-13 on January 1, 2020. Prior to the adoption of ASU 2016-13, we estimated and recorded an allowance for finance receivable losses to cover estimated incurred losses on our finance receivables. Our allowance for finance receivable losses may fluctuate based upon changes in portfolio growth, credit quality, and economic conditions. See Note 3 for additional information regarding our policy for allowance for finance receivable losses. Our current methodology to estimate expected credit losses used the most recent macroeconomic forecasts, which incorporated the projected impacts of the global outbreak of a novel strain of coronavirus (“COVID-19”) on the U.S. economy. Our forecast leveraged economic projections from an industry leading forecast provider. We also incorporated estimated impacts from known government stimulus measures, the involuntary unemployment insurance coverage of our portfolio, and our borrower assistance efforts. At September 30, 2020, our economic forecast used a reasonable and supportable period of 12 months. The increase in our allowance for finance receivable losses for the nine months ended September 30, 2020 was largely due to these economic considerations relating to COVID-19 along with the adoption of ASU 2016-13. Changes in the allowance for finance receivable losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans Balance at beginning of period $ 2,324 $ 744 $ 829 $ 731 Impact of adoption of ASU 2016-13 * — — 1,118 — Provision for finance receivable losses 231 282 1,186 836 Charge-offs (274) (260) (931) (862) Recoveries 43 32 122 93 Balance at end of period $ 2,324 $ 798 $ 2,324 $ 798 * As a result of the adoption of ASU 2016-13 on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 3 and 4 for additional information on the adoption of ASU 2016-13. The allowance for finance receivable losses and net finance receivables by impairment method were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Allowance for finance receivable losses: Collectively evaluated for impairment $ 2,003 $ 557 Purchased credit impaired finance receivables * — — TDR finance receivables 321 272 Total $ 2,324 $ 829 Finance receivables: Collectively evaluated for impairment $ 17,116 $ 17,691 Purchased credit impaired finance receivables * — 40 TDR finance receivables 701 658 Total $ 17,817 $ 18,389 Allowance for finance receivable losses as a percentage of finance receivables 13.05 % 4.51 % * As a result of the adoption of ASU 2016-13 on January 1, 2020, the accounting for purchased credit impaired finance receivables was superseded with purchase credit deteriorated finance receivables which are collectively evaluated for impairment. See Notes 3 and 4 for additional information on the adoption of ASU 2016-3. |
Finance Receivables Held for Sa
Finance Receivables Held for Sale | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Finance Receivables Held for Sale | 6. Finance Receivables Held for Sale We reported finance receivables held for sale, included within “Other assets,” of $54 million at September 30, 2020 and $64 million at December 31, 2019, which consist entirely of real estate loans, and are carried at the lower of cost or fair value, applied on an aggregate basis. In February 2019, we sold a portfolio of real estate loans with a carrying value of $16 million for aggregate cash proceeds of $19 million and recorded a net gain in other revenues of $3 million (“February 2019 Real Estate Loan Sale”). After the recognition of the February 2019 Real Estate Loan Sale, the carrying value of the remaining loans classified in finance receivables held for sale exceeded their fair value, and accordingly, we marked the remaining loans to fair value and recorded an impairment in other revenue of $3 million. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 7. Investment Securities AVAILABLE-FOR-SALE SECURITIES Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair September 30, 2020* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 12 $ — $ — $ 12 Obligations of states, municipalities, and political subdivisions 81 5 — 86 Commercial paper 24 — — 24 Non-U.S. government and government sponsored entities 132 9 — 141 Corporate debt 1,106 83 (5) 1,184 Mortgage-backed, asset-backed, and collateralized: RMBS 211 7 — 218 CMBS 61 2 — 63 CDO/ABS 78 1 (1) 78 Total $ 1,705 $ 107 $ (6) $ 1,806 * There was no allowance for credit losses related to our investment securities as of September 30, 2020. (dollars in millions) Cost/ Unrealized Unrealized Fair December 31, 2019* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 91 2 (1) 92 Commercial paper 91 — — 91 Non-U.S. government and government sponsored entities 144 3 — 147 Corporate debt 1,054 45 (1) 1,098 Mortgage-backed, asset-backed, and collateralized: RMBS 214 3 — 217 CMBS 56 1 — 57 CDO/ABS 84 1 — 85 Total $ 1,745 $ 55 $ (2) $ 1,798 * The balances reported as of December 31, 2019 are not subject to the adoption of ASU 2016-13 on January 1, 2020 and continue to be reported under ASC 320, Investments – Debt and Equity Securities . As of September 30, 2020, interest receivables reported in “Other assets” totaled $13 million. Amounts reversed from investment revenue for available-for-sale securities were immaterial. Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2020 Obligations of states, municipalities, and political subdivisions $ 3 $ — $ — $ — $ 3 $ — Commercial paper 19 — — — 19 — Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 95 (4) 5 (1) 100 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 10 — — — 10 — CMBS 21 — — — 21 — CDO/ABS 21 (1) — — 21 (1) Total $ 172 $ (5) $ 5 $ (1) $ 177 $ (6) December 31, 2019* U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions 29 (1) 4 — 33 (1) Commercial paper 76 — — — 76 — Non-U.S. government and government sponsored entities 19 — 14 — 33 — Corporate debt 63 (1) 13 — 76 (1) Mortgage-backed, asset-backed, and collateralized: RMBS 45 — — — 45 — CMBS 15 — 7 — 22 — CDO/ABS 14 — — — 14 — Total $ 261 $ (2) $ 41 $ — $ 302 $ (2) * The balances reported as of December 31, 2019 are not subject to the adoption of ASU 2016-13 on January 1, 2020 and continue to be reported under ASC 320, Investments – Debt and Equity Securities . On a lot basis, we had 233 and 398 investment securities in an unrealized loss position at September 30, 2020 and December 31, 2019, respectively. We do not consider the unrealized losses to be credit-related, as these unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase. Additionally, at September 30, 2020, there were no credit impairments on investment securities that we intend to sell. We do not have plans to sell any of the remaining investment securities with unrealized losses as of September 30, 2020, 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 credit impairments. During the three and nine months ended September 30, 2020, there were no material credit impairments related to our investment securities. Therefore, there were no material additions or reductions in the allowance for credit losses (impairments recognized or reversed in earnings) on credit impaired available-for-sale securities for the three and nine months ended September 30, 2020. Prior to the adoption of ASU 2016-13, other-than-temporary impairment losses, primarily on corporate debt, in investment revenues were immaterial during the three and nine months ended September 30, 2019. 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 during the three and nine months ended September 30, 2019. The proceeds of available-for-sale securities sold or redeemed during the three and nine months ended September 30, 2020 totaled $74 million and $179 million, respectively. The proceeds of available-for-sale securities sold or redeemed during the three and nine months ended September 30, 2019 totaled $36 million and $245 million, respectively. The net realized gains and losses were immaterial during the three and nine months ended September 30, 2020 and 2019. Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2020 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 128 $ 127 Due after 1 year through 5 years 605 573 Due after 5 years through 10 years 526 485 Due after 10 years 188 170 Mortgage-backed, asset-backed, and collateralized securities 359 350 Total $ 1,806 $ 1,705 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 $604 million and $633 million at September 30, 2020 and December 31, 2019, respectively. OTHER SECURITIES The fair value of other securities by type was as follows: (dollars in millions) September 30, 2020 December 31, 2019 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 20 24 Mortgage-backed, asset-backed, and collateralized bonds 17 15 Total bonds 38 40 Preferred stock * 14 19 Common stock * 24 26 Other long-term investments — 1 Total $ 76 $ 86 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. Net unrealized gains and losses on other securities held were immaterial for the three and nine months ended September 30, 2020 and 2019. Net realized gains and losses on other securities sold or redeemed were also immaterial for the three and nine months ended September 30, 2020 and 2019. Other securities include equity securities and those securities for which the fair value option was elected. We report net unrealized and realized gains and losses on other securities held, sold, or redeemed in investment revenue. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 8. Long-term Debt Principal maturities of long-term debt (excluding projected repayments on securitizations by period) by type of debt at September 30, 2020 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 0.95%-6.94% 5.38%-8.88% 2.03% Fourth quarter 2020 $ — $ — $ — $ — 2021 — 635 — 635 2022 — 992 — 992 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025-2067 — 4,985 350 5,335 Securitizations (c) 8,401 — — 8,401 Total principal maturities $ 8,401 $ 9,087 $ 350 $ 17,838 Total carrying amount $ 8,366 $ 8,993 $ 172 $ 17,531 Debt issuance costs (d) (32) (80) — (112) (a) Pursuant to the Base Indenture, the Supplemental Indentures and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at September 30, 2020. (c) Securitizations are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At September 30, 2020, there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (d) 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 $31 million at September 30, 2020 and are reported in “Other assets.” 8.875% SENIOR NOTES DUE 2025 OFFERING On May 14, 2020, OMFC issued a total of $600 million aggregate principal amount of 8.875% Senior Notes due 2025 (the “8.875% Senior Notes due 2025”) under the Base Indenture, as supplemented by the Tenth Supplemental Indenture, pursuant to which OMH provided a guarantee on an unsecured basis. REDEMPTION OF 8.25% SENIOR NOTES DUE 2020 On June 29, 2020, OMFC issued a notice of full redemption of its 8.25% Senior Notes due 2020. On July 29, 2020, OMFC paid an aggregate amount of $1.0 billion, inclusive of accrued interest and premiums, to complete the redemption. In connection with the redemption, we recognized $35 million of net loss on repurchases and repayments of debt for the three and nine months ended September 30, 2020. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 9. Variable Interest Entities CONSOLIDATED VIES We have transferred finance receivables to VIEs for asset-backed financing transactions and include the assets and liabilities in our consolidated financial statements because we are the primary beneficiary of each VIE. We account for these asset-backed debt obligations as secured borrowings. See Note 3 and Note 11 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2019 Annual Report on Form 10-K for more detail regarding VIEs. 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 and revolving conduit facilities were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Assets Cash and cash equivalents $ 2 $ 4 Finance receivables - Personal loans 9,371 8,428 Allowance for finance receivable losses 1,184 340 Restricted cash and restricted cash equivalents 479 400 Other assets 31 29 Liabilities Long-term debt $ 8,366 $ 7,643 Other liabilities 16 15 Other than the retained subordinate and residual interests in our consolidated VIEs, we are under no further obligation than is otherwise noted herein, either contractually or implicitly, to provide financial support to these entities. Consolidated interest expense related to our VIEs totaled $84 million and $256 million during the three and nine months ended September 30, 2020, respectively, compared to $79 million and $243 million during the three and nine months ended September 30, 2019, respectively. SECURITIZED BORROWINGS Each of our outstanding securitizations contain a revolving period ranging from one REVOLVING CONDUIT FACILITIES We had access to 14 revolving conduit facilities with a total maximum borrowing capacity of $7.2 billion as of September 30, 2020. Our conduit facilities contain revolving periods during which time no principal payments are required, but may be made without penalty, followed by a subsequent amortization period. Principal balances of outstanding loans, if any, are due and payable in full over periods ranging up to ten years as of September 30, 2020. Amounts drawn on these facilities are collateralized by our personal loans. |
Insurance
Insurance | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Insurance | 10. Insurance Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): At or for the (dollars in millions) 2020 2019 Balance at beginning of period $ 117 $ 117 Less reinsurance recoverables (4) (4) Net balance at beginning of period 113 113 Additions for losses and loss adjustment expenses incurred to: Current year 221 154 Prior years * (10) (13) Total 211 141 Reductions for losses and loss adjustment expenses paid related to: Current year (107) (85) Prior years (60) (57) Total (167) (142) Net balance at end of period 157 112 Plus reinsurance recoverables 3 3 Balance at end of period $ 160 $ 115 |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share (OMH Only) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings Per Share (OMH Only) | 11. Capital Stock and Earnings Per Share (OMH Only) CAPITAL STOCK OMH has two classes of authorized capital stock: preferred stock and common stock. OMFC has two classes of authorized capital stock: special stock and common stock. OMH and OMFC may issue preferred stock and special stock, respectively, in one or more series. The OMH Board of Directors and the OMFC Board of Directors determine the dividend, liquidation, redemption, conversion, voting, and other rights prior to issuance. During the first quarter of 2020, the OMH Board of Directors approved a stock repurchase program, which allowed us to repurchase up to $200 million of OMH’s outstanding common stock with no stated expiration. On March 20, 2020, OMH temporarily suspended its stock repurchase program. OMH retains the right to reinstate the stock repurchase program as circumstances change. Prior to the suspension of the program, OMH repurchased and retired 2,031,698 shares of its common stock with an average price paid per share of $22.30, for an aggregate total of approximately $45 million, including commissions and fees. The aggregate purchase price in excess of the par value of the repurchased OMH common stock is recorded as a reduction to additional paid-in-capital. To provide funding for the OMH stock repurchase and retirement program, the OMFC Board of Directors authorized multiple dividend payments in the aggregate amount of $45 million. Changes in OMH shares of common stock issued and outstanding were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period 134,319,171 136,089,417 136,101,156 135,832,278 Common shares issued 3,842 6,257 253,555 263,396 Common shares retired — — (2,031,698) — Balance at end of period 134,323,013 136,095,674 134,323,013 136,095,674 EARNINGS PER SHARE (OMH ONLY) The computation of earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2020 2019 2020 2019 Numerator (basic and diluted): Net income $ 250 $ 248 $ 371 $ 594 Denominator: Weighted average number of shares outstanding (basic) 134,321,929 136,095,481 134,847,170 136,060,832 Effect of dilutive securities * 185,620 280,570 152,317 211,559 Weighted average number of shares outstanding (diluted) 134,507,549 136,376,051 134,999,487 136,272,391 Earnings per share: Basic $ 1.86 $ 1.82 $ 2.75 $ 4.36 Diluted $ 1.86 $ 1.82 $ 2.75 $ 4.36 * We have excluded weighted-average unvested restricted stock units totaling 256,034 and 184,997 for the three months ended September 30, 2020 and 2019, respectively, and 303,913 and 297,194 for the nine months ended September 30, 2020 and 2019, respectively, from the fully-diluted earnings per share calculations as these shares would be anti-dilutive, which could impact the earnings per share calculation in the future. Basic earnings per share is computed by dividing net income by the weighted-average number of shares outstanding during each period. Diluted earnings per share is computed based on the weighted-average number of shares outstanding plus the effect of potentially dilutive shares outstanding during the period using the treasury stock method. The potentially dilutive shares represent outstanding unvested RSUs and RSAs. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. Accumulated Other Comprehensive Income (Loss) Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Total Three Months Ended September 30, 2020 Balance at beginning of period $ 66 $ 3 $ (4) $ 65 Other comprehensive income before reclassifications 12 — 2 14 Balance at end of period $ 78 $ 3 $ (2) $ 79 Three Months Ended September 30, 2019 Balance at beginning of period $ 30 $ (3) $ 1 $ 28 Other comprehensive income (loss) before reclassifications 11 — (1) 10 Balance at end of period $ 41 $ (3) $ — $ 38 Nine Months Ended September 30, 2020 Balance at beginning of period $ 41 $ 3 $ — $ 44 Other comprehensive income (loss) before reclassifications 38 — (2) 36 Reclassification adjustments from accumulated other (1) — — (1) Balance at end of period $ 78 $ 3 $ (2) $ 79 Nine Months Ended September 30, 2019 Balance at beginning of period $ (28) $ (3) $ (3) $ (34) Other comprehensive income before reclassifications 69 — 3 72 Balance at end of period $ 41 $ (3) $ — $ 38 * There were no amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes We had a net deferred tax asset of $440 million and $104 million at September 30, 2020 and December 31, 2019, respectively. The increase in our net deferred tax asset of $336 million was primarily due to the tax effect of the increase in the allowance for finance receivable losses from both the adoption of ASU 2016-13 and the current period activity. See Note 5 for further information on the increase in allowance. The increase was partly offset by tax amortization of goodwill. We follow the guidance of ASC 740, Income Taxes , for interim reporting of income taxes under which we calculate an estimated annual effective tax rate (“AETR”) and apply the AETR to our year-to-date income (loss) before income taxes. In addition, we recognize any discrete items as they occur. Our estimates may need to be further adjusted throughout the year as the effects of the COVID-19 pandemic plays out in the economic and financial markets, and as a result, our AETR may significantly change in the remaining period of 2020. The effective tax rate for the nine months ended September 30, 2020 was 26.1%, compared to 21.3% for the same period in 2019. The effective tax rate for the nine months ended September 30, 2020 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes and discrete tax expense. The effective tax rate for the nine months ended September 30, 2019 differed from the federal statutory rate of 21% primarily due to the effect of state income taxes, which was offset by the release of the valuation allowance against certain deferred taxes. We are currently under examination of our U.S. federal tax returns for the years 2014 to 2016 by the IRS. We are also under examination by various states for the years 2011 to 2018. Management believes it has adequately provided for taxes for such years. Our gross unrecognized tax benefits, including related interest and penalties, totaled $13 million at September 30, 2020 and $12 million at December 31, 2019. 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. On March 27, 2020, the Coronarvirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, and technical corrections to tax depreciation methods for qualified improvement property. We do not anticipate the CARES Act will have a material impact on our consolidated financial statements. We will continue to monitor legislative developments related to the COVID-19 pandemic. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 14. Contingencies LEGAL CONTINGENCIES In the normal course of business, we have been named, from time to time, as defendants in various legal actions, including arbitrations, class actions, and other litigation arising in connection with our activities. Some of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. While we will continue to evaluate legal actions to determine whether a loss is reasonably possible or probable and is reasonably estimable, there can be no assurance that material losses will not be incurred from pending, threatened or future litigation, investigations, examinations, or other claims. We contest liability and/or the amount of damages, as appropriate, in each pending matter. Where available information indicates that it is probable that a liability had been incurred at the date of the 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 range of 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information At September 30, 2020, Consumer and Insurance (“C&I”) is our only reportable segment. The remaining components (which we refer to as “Other”) consist of (i) our liquidating SpringCastle Portfolio servicing activity and (ii) our non-originating legacy operations, which primarily include our liquidating real estate loans. The accounting policies of the C&I segment are the same as those disclosed in Note 3 and Note 19 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2019 Annual Report on Form 10-K. The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated Three Months Ended September 30, 2020 Interest income $ 1,086 $ 1 $ 2 $ 1,089 Interest expense 250 1 4 255 Provision for finance receivable losses 232 — (1) 231 Net interest income after provision for finance receivable losses 604 — (1) 603 Other revenues 99 4 (2) 101 Other expenses 352 6 5 363 Income (loss) before income tax expense (benefit) $ 351 $ (2) $ (8) $ 341 Three Months Ended September 30, 2019 Interest income $ 1,060 $ 2 $ 3 $ 1,065 Interest expense 238 1 5 244 Provision for finance receivable losses 277 — 5 282 Net interest income after provision for finance receivable losses 545 1 (7) 539 Other revenues 152 5 (1) 156 Other expenses 385 8 5 398 Income (loss) before income tax expense (benefit) $ 312 $ (2) $ (13) $ 297 (dollars in millions) Consumer Other Segment to Consolidated At or for the Nine Months Ended September 30, 2020 Interest income $ 3,260 $ 4 $ 9 $ 3,273 Interest expense 765 3 13 781 Provision for finance receivable losses 1,184 — 2 1,186 Net interest income after provision for finance receivable losses 1,311 1 (6) 1,306 Other revenues 380 12 (2) 390 Other expenses 1,161 18 15 1,194 Income (loss) before income tax expense (benefit) $ 530 $ (5) $ (23) $ 502 Assets $ 19,743 $ 63 $ 2,051 $ 21,857 At or for the Nine Months Ended September 30, 2019 Interest income $ 3,013 $ 7 $ — $ 3,020 Interest expense 700 4 13 717 Provision for finance receivable losses 816 — 20 836 Net interest income after provision for finance receivable losses 1,497 3 (33) 1,467 Other revenues * 442 26 (8) 460 Other expenses 1,125 31 16 1,172 Income (loss) before income tax expense (benefit) $ 814 $ (2) $ (57) $ 755 Assets $ 20,276 $ 82 $ 2,052 $ 22,410 * Other revenues in Other include the gain on the February 2019 Real Estate Loan Sale as well as the impairment adjustments on the remaining loans in held for sale in 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 16. Fair Value Measurements The accounting policies of our Fair Value Measurements are the same as those disclosed in Note 3 and Note 20 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2019 Annual Report on Form 10-K. 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 Total (dollars in millions) Level 1 Level 2 Level 3 September 30, 2020 Assets Cash and cash equivalents $ 1,944 $ — $ — $ 1,944 $ 1,944 Investment securities 42 1,833 7 1,882 1,882 Net finance receivables, less allowance for finance receivable losses — — 18,176 18,176 15,493 Restricted cash and restricted cash equivalents 497 — — 497 497 Other assets * — — 62 62 62 Liabilities Long-term debt $ — $ 18,702 $ — $ 18,702 $ 17,531 December 31, 2019 Assets Cash and cash equivalents $ 1,159 $ 68 $ — $ 1,227 $ 1,227 Investment securities 45 1,835 4 1,884 1,884 Net finance receivables, less allowance for finance receivable losses — — 19,319 19,319 17,560 Restricted cash and restricted cash equivalents 405 — — 405 405 Other assets * — — 84 84 74 Liabilities Long-term debt $ — $ 18,509 $ — $ 18,509 $ 17,212 * Other assets at September 30, 2020 and December 31, 2019 includes finance receivables held for sale and miscellaneous receivables related to our liquidating loan portfolios. 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 September 30, 2020 Assets Cash equivalents in mutual funds $ 1,534 $ — $ — $ 1,534 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 12 — 12 Obligations of states, municipalities, and political subdivisions — 86 — 86 Commercial paper — 24 — 24 Non-U.S. government and government sponsored entities — 141 — 141 Corporate debt 5 1,179 — 1,184 RMBS — 212 6 218 CMBS — 63 — 63 CDO/ABS — 78 — 78 Total available-for-sale securities 5 1,795 6 1,806 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 20 — 20 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 38 — 38 Preferred stock 14 — — 14 Common stock 23 — 1 24 Total other securities 37 38 1 76 Total investment securities 42 1,833 7 1,882 Restricted cash equivalents in mutual funds 487 — — 487 Total $ 2,063 $ 1,833 $ 7 $ 3,903 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2019 Assets Cash equivalents in mutual funds $ 775 $ — $ — $ 775 Cash equivalents in securities — 68 — 68 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 92 — 92 Certificates of deposit and commercial paper — 91 — 91 Non-U.S. government and government sponsored entities — 147 — 147 Corporate debt 5 1,093 — 1,098 RMBS — 217 — 217 CMBS — 57 — 57 CDO/ABS — 85 — 85 Total available-for-sale securities 5 1,793 — 1,798 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 23 1 24 RMBS — 1 — 1 CDO/ABS — 12 2 14 Total bonds — 37 3 40 Preferred stock 14 5 — 19 Common stock 26 — — 26 Other long-term investments — — 1 1 Total other securities 40 42 4 86 Total investment securities 45 1,835 4 1,884 Restricted cash equivalents in mutual funds 403 — — 403 Total $ 1,223 $ 1,903 $ 4 $ 3,130 Due to the insignificant activity within the Level 3 assets during the three and nine months ended September 30, 2020 and 2019, 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. FAIR VALUE MEASUREMENTS — NON-RECURRING BASIS We measure the fair value of certain assets on a non-recurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Net impairment charges recorded on assets measured at fair value on a non-recurring basis were immaterial for the three and nine months ended September 30, 2020 and 2019. FAIR VALUE MEASUREMENTS — VALUATION METHODOLOGIES AND ASSUMPTIONS See Note 20 of the Notes to the Consolidated Financial Statements in Part II - Item 8 included in our 2019 Annual Report on Form 10-K for information regarding our methods and assumptions used to estimate fair value. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATIONWe prepared our condensed consolidated financial statements using generally accepted accounting principles in the United States of America (“GAAP”). These statements are unaudited. The year-end condensed balance sheet data was derived from our audited financial statements but does not include all disclosures required by GAAP. |
CONSOLIDATION | The statements include the accounts of OMH, its subsidiaries (all of which are wholly-owned), and variable interest entities (“VIEs”) in which we hold a controlling financial interest and for which we are considered to be the primary beneficiary as of the financial statement date.We eliminated all material intercompany accounts and transactions. |
ESTIMATES | We made judgments, estimates, and assumptions that affect amounts reported in our condensed consolidated financial statements and disclosures of contingent assets and liabilities. In management’s opinion, the condensed consolidated financial statements include the normal, recurring adjustments necessary for a fair statement of results. Actual results could differ from our estimates. |
RECLASSIFICATIONS | To conform to the 2020 presentation, we have reclassified certain items in prior periods of our condensed consolidated financial statements. |
ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED AND ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED | ACCOUNTING PRONOUNCEMENTS RECENTLY ADOPTED Financial Instruments - Credit Losses In June of 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments , which significantly changes the way that entities are 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 previously required. The new approach requires entities to measure all expected credit losses for financial assets over their expected lives based on historical experience, current conditions, and reasonable and supportable forecasts of collectability. The expected credit loss model requires earlier recognition of credit losses than the incurred loss approach. We expect ongoing changes in the allowance for finance receivable losses will be driven primarily by the growth of our loan portfolio, mix of secured and unsecured loans, credit quality, and the economic environment at that time. In addition, the ASU developed a new accounting treatment for purchased financial assets with credit deterioration. The ASU also modifies the other-than-temporary impairment model for available-for-sale debt securities by requiring companies to record an allowance for credit impairment rather than write-downs of such assets. Management has reviewed this update and other ASUs that were subsequently issued to further clarify the implementation guidance outlined in ASU 2016-13 We adopted the amendments of these ASUs as of January 1, 2020. Upon adoption, we recorded an increase to the allowance for finance receivable losses of $1.12 billion, an increase to deferred tax assets of $0.28 billion, and a corresponding one-time cumulative reduction to retained earnings, net of tax, of $0.83 billion in the consolidated balance sheet as of January 1, 2020. The adoption of this ASU, as it relates to available-for-sale debt securities, did not have a material impact on the consolidated financial statements as of January 1, 2020. As a result of the adoption of ASU 2016-13, several of our significant accounting policies have changed to reflect the requirements of the new standard. See below for these updated significant accounting policies as of January 1, 2020. 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 level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our finance receivable portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our finance receivables are primarily segmented in the loss model by contractual delinquency status. Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates and bankruptcy filings. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. We have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors, such as recent portfolio, industry, and other economic trends, and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. 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 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 the impairment as a direct write-down in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period. 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. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, not to exceed the total unrealized loss on the security. The cash flows expected to be collected are determined by assessing all available information, including 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, a credit impairment is considered to have occurred. If a credit impairment 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 bifurcated as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to non-credit related factors. We recognize the estimated credit loss as an allowance on the balance sheet in investment securities, with a corresponding loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. For investment securities in which a credit impairment was recorded through an allowance, we record subsequent increases and decreases in the allowance for credit losses as credit loss expense or reversal of credit loss expense in investment revenues. We will not reverse a previously recorded allowance to an amount below zero. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss. Interest receivables on our investment securities are excluded from the amortized cost and fair value and are recorded in “Other assets.” We have elected not to measure an allowance on interest receivables due to our policy to reverse interest receivable at the time collectability is uncertain. The reversal of interest receivable is recorded in investment revenue. See Notes 4, 5, and 7 for additional information on the adoption of ASU 2016-13. ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED Insurance In August of 2018, the FASB issued ASU 2018-12, Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts , which provides targeted improvements to Topic 944 for the assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited-payment contracts; measurement of market risk benefits; amortization of deferred acquisition costs; and enhanced disclosures. Under current guidance, this ASU will become effective for us beginning January 1, 2022. In July of 2020, the FASB proposed a one-year deferral of this ASU to become effective for public entities for fiscal years beginning January 1, 2023. We have a cross-functional implementation team and a project plan to ensure we comply with all the amendments in this ASU at the time of adoption. We have engaged various vendors to assess a software solution to meet the new accounting and disclosure requirements of the ASU and are currently working toward an agreement with our preferred candidate. We continue to make progress in evaluating the potential impact of the adoption of the ASU on our consolidated financial statements. We do not believe that any other accounting pronouncements issued, but not yet effective, would have a material impact on our consolidated financial statements or disclosures, if adopted. |
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 level of contractual delinquency in the portfolio, specifically in the late stage delinquency buckets and inclusive of the migration of the loans through the delinquency buckets. Our finance receivables consist of a large number of relatively small, homogeneous accounts. We evaluate our finance receivables for impairment as pools. None of our accounts are large enough to warrant individual evaluation for impairment. We estimate the allowance for finance receivable losses primarily on historical loss experience using a cumulative loss model applied to our finance receivable portfolios. Our gross credit loss expectation is offset by the estimate of future recoveries using historical recovery curves. Our finance receivables are primarily segmented in the loss model by contractual delinquency status. Other attributes in the model include collateral mix and recent credit score. To estimate the gross credit losses, the model utilizes a roll rate matrix to project the first 12 months of losses and historical cohort performance to project the expected losses over the remaining term. Our methodology relies on historical loss experience to forecast the corresponding future outcomes. These patterns are then applied to the current portfolio to obtain an estimate of future losses. We also consider key economic trends including unemployment rates and bankruptcy filings. Forecasted macroeconomic conditions extend to our reasonable and supportable forecast period and revert to a historical average. No new volume is assumed. Renewals are a significant piece of our new volume and are considered a terminal event of the previous loan. We have elected not to measure an allowance on accrued finance charges as it is our policy to reverse finance charge amounts previously accrued after four contractual payments become past due. Management exercises its judgment when determining the amount of allowance for finance receivable losses. Our judgment is based on quantitative analyses, qualitative factors, such as recent portfolio, industry, and other economic trends, and experience in the consumer finance industry. We adjust the amounts determined by our model for management’s estimate of the effects of model imprecision which include but are not limited to, any changes to underwriting criteria and portfolio seasoning. |
Impairments on Investment Securities | 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 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 the impairment as a direct write-down in investment revenues equal to the difference between the investment security’s amortized cost and its fair value at the balance sheet date. Once the impairment is recorded, we adjust the investment security to a new amortized cost basis equal to the previous amortized cost basis less the impairment write-down recognized in the current period. 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. If the present value of cash flows expected to be collected is less than the amortized cost basis of the security, a credit loss exists and an allowance for credit losses is recorded, not to exceed the total unrealized loss on the security. The cash flows expected to be collected are determined by assessing all available information, including 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, a credit impairment is considered to have occurred. If a credit impairment 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 bifurcated as: (i) the estimated amount relating to credit loss; and (ii) the amount relating to non-credit related factors. We recognize the estimated credit loss as an allowance on the balance sheet in investment securities, with a corresponding loss in investment revenues, and the non-credit loss amount in accumulated other comprehensive income or loss. For investment securities in which a credit impairment was recorded through an allowance, we record subsequent increases and decreases in the allowance for credit losses as credit loss expense or reversal of credit loss expense in investment revenues. We will not reverse a previously recorded allowance to an amount below zero. We recognize subsequent increases and decreases in the fair value of our available-for-sale securities from non-credit related factors in accumulated other comprehensive income or loss. |
Reconciliation of OneMain Fin_2
Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Reconciliation of consolidated balance sheets and results of consolidated statements of operations of SFC to OMH | In addition to certain intercompany payable and receivable amounts between the entities, the following is a reconciliation of the condensed consolidated balance sheets and results of our condensed consolidated statements of operations of OMFC to OMH: September 30, 2020 December 31, 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Other assets $ 1,082 $ 1,081 $ 1 $ 769 $ 768 $ 1 Deferred and accrued taxes 55 57 (2) 34 35 (1) Other liabilities 528 526 2 592 595 (3) Total shareholders' equity (a) 3,123 3,122 1 4,330 4,325 5 Three Months Ended September 30, 2020 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Interest expense $ 255 $ 255 $ — $ 244 $ 247 $ (3) Other operating expenses 134 134 — 146 145 1 Income before income taxes 341 341 — 297 295 2 Income taxes 91 91 — 49 51 (2) Net Income 250 250 — 248 244 4 Nine Months Ended September 30, 2020 2019 (dollars in millions) OMH OMFC Difference OMH OMFC Difference Interest expense $ 781 $ 781 $ — $ 717 $ 719 $ (2) Other revenues (b) 38 38 — 80 88 (8) Other operating expenses 425 425 — 422 421 1 Income before income taxes 502 502 — 755 762 (7) Income taxes 131 131 — 161 165 (4) Net Income 371 371 — 594 597 (3) (a) The differences between total shareholders’ equity in the periods ended September 30, 2020 and December 31, 2019 were due to historical differences in results of operations of the companies and differences in equity awards. (b) Other revenues include the interest income on notes receivables from parent, which were notes from SFI held by OMFC and Springleaf Mortgage Holding Company and subsidiaries (“SMHC”), a wholly-owned direct subsidiary of OMFC. See Note 1 and below for further discussion of the merger between SFI and OMFC. |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of components of net finance receivables by type | Components of our personal loans were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Gross receivables * $ 17,606 $ 18,195 Unearned points and fees (224) (242) Accrued finance charges 290 289 Deferred origination costs 145 147 Total $ 17,817 $ 18,389 * Gross receivables equal the unpaid principal balance (“UPB”) except for the following: • Finance receivables purchased as a performing receivable — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase to reflect the finance receivable balance at its initial fair value; • Purchased credit impaired finance receivables — gross receivables equal the remaining estimated cash flows less the current balance of accretable yield on the purchased credit impaired accounts established prior to the adoption of ASU 2016-13; and • Purchased credit deteriorated finance receivables — gross receivables equal the UPB and any remaining unearned discount established at the time of the adoption of ASU 2016-13 on January 1, 2020. |
Summary of net finance receivables by type and by days delinquent | The following is a summary of our personal loans held for investment by the year of origination and number of days delinquent, our key credit quality indicator, at September 30, 2020: (dollars in millions) 2020 2019 2018 2017 2016 Prior Total Performing Current $ 6,504 $ 6,940 $ 2,534 $ 844 $ 251 $ 132 $ 17,205 30-59 days past due 36 103 45 19 7 5 215 60-89 days past due 20 66 28 11 4 2 131 Total performing 6,560 7,109 2,607 874 262 139 17,551 Nonperforming (Nonaccrual) 90-179 days past due 26 133 61 23 9 6 258 180 days or more past due — 5 2 1 — — 8 Total nonperforming 26 138 63 24 9 6 266 Total $ 6,586 $ 7,247 $ 2,670 $ 898 $ 271 $ 145 $ 17,817 The following is a summary of our personal loans held for investment by number of days delinquent at December 31, 2019, which is prior to the adoption of ASU 2016-13 on January 1, 2020 and continues to be reported under ASC 310, Receivables : (dollars in millions) Total Performing Current $ 17,550 30-59 days past due 272 60-89 days past due 181 Total performing 18,003 Nonperforming 90-179 days past due 377 180 days or more past due 9 Total nonperforming 386 Total $ 18,389 |
Schedule of purchased credit impaired finance receivables held for investment | Information regarding purchased credit impaired finance receivables were as follows: (dollars in millions) December 31, 2019 Personal Loans Carrying amount, net of allowance $ 40 Outstanding balance (a) 74 Allowance for purchased credit impaired finance receivable losses (b) — Real Estate Loans - Held for Sale Carrying amount $ 19 Outstanding balance (a) 35 (a) Outstanding balance is defined as the UPB of the loans with a net carrying amount. (b) The allowance for purchased credit impaired finance receivable losses reflects the carrying value of the purchased credit impaired loans held for investment exceeding the present value of the expected cash flows. As indicated above, no allowance was required as of December 31, 2019. |
Changes in accretable yield for purchased credit impaired finance receivables held for investment and held for sale | Changes in accretable yield for purchased credit impaired finance receivables were as follows: (dollars in millions) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Personal Loans Balance at beginning of period $ 46 $ 39 Accretion (6) (15) Reclassifications from nonaccretable difference * — 16 Balance at end of period $ 40 $ 40 Real Estate Loans - Held for Sale Balance at beginning of period $ 23 $ 27 Accretion (1) (2) Transfer due to finance receivables sold — (3) Balance at end of period $ 22 $ 22 * Reclassifications from nonaccretable difference represents the increases in accretable yield resulting from higher estimated undiscounted cash flows. |
Schedule of information regarding TDR finance receivables | Information regarding TDR finance receivables were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Personal Loans TDR gross receivables (a) $ 699 $ 655 TDR net receivables (b) 701 658 Allowance for TDR finance receivable losses 321 272 Real Estate Loans - Held for Sale TDR gross receivables (a) $ 49 $ 52 TDR net receivables (b) 49 53 (a) TDR gross receivables — gross receivables are equal to UPB and, if applicable, any remaining unearned premium or discount established at the time of purchase if previously purchased as a performing receivable. (b) TDR net receivables — TDR gross receivables net of unearned points and fees, accrued finance charges, and deferred origination costs. |
TDR average net receivables held for investment and held for sale and finance charges recognized on TDR finance receivables held for investment and held for sale | TDR average net receivables and finance charges recognized on TDR finance receivables for our personal loans that are held for investment and our real estate loans that are held for sale were as follows: (dollars in millions) Personal Real Estate Loans Total Three Months Ended September 30, 2020 TDR average net receivables $ 701 $ 49 $ 750 TDR finance charges recognized 13 1 14 Three Months Ended September 30, 2019 TDR average net receivables $ 571 $ 55 $ 626 TDR finance charges recognized 11 1 12 Nine Months Ended September 30, 2020 TDR average net receivables $ 692 $ 51 $ 743 TDR finance charges recognized 38 2 40 Nine Months Ended September 30, 2019 TDR average net receivables $ 525 $ 59 $ 584 TDR finance charges recognized 35 2 37 |
Schedule of new volume of the TDR finance receivables held for investment and held for sale | Information regarding the new volume of the TDR finance receivables held for investment were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans Pre-modification TDR net finance receivables $ 105 $ 129 $ 392 $ 373 Post-modification TDR net finance receivables: Rate reduction 67 86 242 257 Other * 38 43 150 116 Total post-modification TDR net finance receivables $ 105 $ 129 $ 392 $ 373 Number of TDR accounts 13,581 18,545 52,780 55,358 * “Other” modifications primarily include potential principal and interest forgiveness contingent on future payment performance by the borrower under the modified terms. |
Net finance receivables that were modified as TDR finance receivables defaulted within the previous 12 months nonperforming | Personal loans held for investment 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) are reflected in the following table. Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans TDR net finance receivables * $ 20 $ 27 $ 77 $ 66 Number of TDR accounts 2,947 4,202 11,286 10,298 * Represents the corresponding balance of TDR net finance receivables at the end of the month in which they defaulted. |
Allowance for Finance Receiva_2
Allowance for Finance Receivable Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for finance receivable losses by finance receivable type | Changes in the allowance for finance receivable losses were as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2020 2019 2020 2019 Personal Loans Balance at beginning of period $ 2,324 $ 744 $ 829 $ 731 Impact of adoption of ASU 2016-13 * — — 1,118 — Provision for finance receivable losses 231 282 1,186 836 Charge-offs (274) (260) (931) (862) Recoveries 43 32 122 93 Balance at end of period $ 2,324 $ 798 $ 2,324 $ 798 * As a result of the adoption of ASU 2016-13 on January 1, 2020, we recorded a one-time adjustment to the allowance for finance receivable losses. See Notes 3 and 4 |
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 impairment method were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Allowance for finance receivable losses: Collectively evaluated for impairment $ 2,003 $ 557 Purchased credit impaired finance receivables * — — TDR finance receivables 321 272 Total $ 2,324 $ 829 Finance receivables: Collectively evaluated for impairment $ 17,116 $ 17,691 Purchased credit impaired finance receivables * — 40 TDR finance receivables 701 658 Total $ 17,817 $ 18,389 Allowance for finance receivable losses as a percentage of finance receivables 13.05 % 4.51 % * As a result of the adoption of ASU 2016-13 on January 1, 2020, the accounting for purchased credit impaired finance receivables was superseded with purchase credit deteriorated finance receivables which are collectively evaluated for impairment. See Notes 3 and 4 for additional information on the adoption of ASU 2016-3. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of the cost/amortized cost, unrealized gains and losses, and fair value of available-for-sale securities by type | Cost/amortized cost, allowance for credit losses, unrealized gains and losses, and fair value of fixed maturity available-for-sale securities by type were as follows: (dollars in millions) Cost/ Unrealized Unrealized Fair September 30, 2020* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 12 $ — $ — $ 12 Obligations of states, municipalities, and political subdivisions 81 5 — 86 Commercial paper 24 — — 24 Non-U.S. government and government sponsored entities 132 9 — 141 Corporate debt 1,106 83 (5) 1,184 Mortgage-backed, asset-backed, and collateralized: RMBS 211 7 — 218 CMBS 61 2 — 63 CDO/ABS 78 1 (1) 78 Total $ 1,705 $ 107 $ (6) $ 1,806 * There was no allowance for credit losses related to our investment securities as of September 30, 2020. (dollars in millions) Cost/ Unrealized Unrealized Fair December 31, 2019* Fixed maturity available-for-sale securities: U.S. government and government sponsored entities $ 11 $ — $ — $ 11 Obligations of states, municipalities, and political subdivisions 91 2 (1) 92 Commercial paper 91 — — 91 Non-U.S. government and government sponsored entities 144 3 — 147 Corporate debt 1,054 45 (1) 1,098 Mortgage-backed, asset-backed, and collateralized: RMBS 214 3 — 217 CMBS 56 1 — 57 CDO/ABS 84 1 — 85 Total $ 1,745 $ 55 $ (2) $ 1,798 * The balances reported as of December 31, 2019 are not subject to the adoption of ASU 2016-13 on January 1, 2020 and continue to be reported under ASC 320, Investments – Debt and Equity Securities . |
Schedule of fair value and unrealized losses on investment securities by type and length of time in a continuous unrealized loss position | Fair value and unrealized losses on available-for-sale securities by type and length of time in a continuous unrealized loss position without an allowance for credit losses were as follows: Less Than 12 Months 12 Months or Longer Total (dollars in millions) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2020 Obligations of states, municipalities, and political subdivisions $ 3 $ — $ — $ — $ 3 $ — Commercial paper 19 — — — 19 — Non-U.S. government and government sponsored entities 3 — — — 3 — Corporate debt 95 (4) 5 (1) 100 (5) Mortgage-backed, asset-backed, and collateralized: RMBS 10 — — — 10 — CMBS 21 — — — 21 — CDO/ABS 21 (1) — — 21 (1) Total $ 172 $ (5) $ 5 $ (1) $ 177 $ (6) December 31, 2019* U.S. government and government sponsored entities $ — $ — $ 3 $ — $ 3 $ — Obligations of states, municipalities, and political subdivisions 29 (1) 4 — 33 (1) Commercial paper 76 — — — 76 — Non-U.S. government and government sponsored entities 19 — 14 — 33 — Corporate debt 63 (1) 13 — 76 (1) Mortgage-backed, asset-backed, and collateralized: RMBS 45 — — — 45 — CMBS 15 — 7 — 22 — CDO/ABS 14 — — — 14 — Total $ 261 $ (2) $ 41 $ — $ 302 $ (2) * The balances reported as of December 31, 2019 are not subject to the adoption of ASU 2016-13 on January 1, 2020 and continue to be reported under ASC 320, Investments – Debt and Equity Securities . |
Schedule of contractual maturities of fixed-maturity available-for-sale securities | Contractual maturities of fixed-maturity available-for-sale securities at September 30, 2020 were as follows: (dollars in millions) Fair Amortized Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: Due in 1 year or less $ 128 $ 127 Due after 1 year through 5 years 605 573 Due after 5 years through 10 years 526 485 Due after 10 years 188 170 Mortgage-backed, asset-backed, and collateralized securities 359 350 Total $ 1,806 $ 1,705 |
Schedule of fair value of other securities by type | The fair value of other securities by type was as follows: (dollars in millions) September 30, 2020 December 31, 2019 Fixed maturity other securities: Bonds Non-U.S. government and government sponsored entities $ 1 $ 1 Corporate debt 20 24 Mortgage-backed, asset-backed, and collateralized bonds 17 15 Total bonds 38 40 Preferred stock * 14 19 Common stock * 24 26 Other long-term investments — 1 Total $ 76 $ 86 * We employ an income equity strategy targeting investments in stocks with strong current dividend yields. Stocks included have a history of stable or increasing dividend payments. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of principal maturities of long-term debt | Principal maturities of long-term debt (excluding projected repayments on securitizations by period) by type of debt at September 30, 2020 were as follows: Senior Debt (dollars in millions) Securitizations Unsecured Junior Total Interest rates (b) 0.95%-6.94% 5.38%-8.88% 2.03% Fourth quarter 2020 $ — $ — $ — $ — 2021 — 635 — 635 2022 — 992 — 992 2023 — 1,175 — 1,175 2024 — 1,300 — 1,300 2025-2067 — 4,985 350 5,335 Securitizations (c) 8,401 — — 8,401 Total principal maturities $ 8,401 $ 9,087 $ 350 $ 17,838 Total carrying amount $ 8,366 $ 8,993 $ 172 $ 17,531 Debt issuance costs (d) (32) (80) — (112) (a) Pursuant to the Base Indenture, the Supplemental Indentures and the Guaranty Agreements, OMH agreed to fully and unconditionally guarantee, on a senior unsecured basis, payments of principal, premium and interest on the Unsecured Notes and Junior Subordinated Debenture. The OMH guarantees of OMFC’s long-term debt are subject to customary release provisions. (b) The interest rates shown are the range of contractual rates in effect at September 30, 2020. (c) Securitizations are not included in the above maturities by period due to their variable monthly repayments, which may result in pay-off prior to the stated maturity date. At September 30, 2020, there were no amounts drawn under our revolving conduit facilities. See Note 9 for further information on our long-term debt associated with securitizations and revolving conduit facilities. (d) 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 $31 million at September 30, 2020 and are reported in “Other assets.” |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying amounts of consolidated VIE assets and liabilities | The carrying amounts of consolidated VIE assets and liabilities associated with our securitization trusts and revolving conduit facilities were as follows: (dollars in millions) September 30, 2020 December 31, 2019 Assets Cash and cash equivalents $ 2 $ 4 Finance receivables - Personal loans 9,371 8,428 Allowance for finance receivable losses 1,184 340 Restricted cash and restricted cash equivalents 479 400 Other assets 31 29 Liabilities Long-term debt $ 8,366 $ 7,643 Other liabilities 16 15 |
Insurance (Tables)
Insurance (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Changes in the reserve for unpaid claims and loss adjustment expenses | Changes in the reserve for unpaid claims and loss adjustment expenses (net of reinsurance recoverables): At or for the (dollars in millions) 2020 2019 Balance at beginning of period $ 117 $ 117 Less reinsurance recoverables (4) (4) Net balance at beginning of period 113 113 Additions for losses and loss adjustment expenses incurred to: Current year 221 154 Prior years * (10) (13) Total 211 141 Reductions for losses and loss adjustment expenses paid related to: Current year (107) (85) Prior years (60) (57) Total (167) (142) Net balance at end of period 157 112 Plus reinsurance recoverables 3 3 Balance at end of period $ 160 $ 115 |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (OMH Only) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of changes in shares issued and outstanding | Changes in OMH shares of common stock issued and outstanding were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance at beginning of period 134,319,171 136,089,417 136,101,156 135,832,278 Common shares issued 3,842 6,257 253,555 263,396 Common shares retired — — (2,031,698) — Balance at end of period 134,323,013 136,095,674 134,323,013 136,095,674 |
Computation of earnings per share | The computation of earnings per share was as follows: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions, except per share data) 2020 2019 2020 2019 Numerator (basic and diluted): Net income $ 250 $ 248 $ 371 $ 594 Denominator: Weighted average number of shares outstanding (basic) 134,321,929 136,095,481 134,847,170 136,060,832 Effect of dilutive securities * 185,620 280,570 152,317 211,559 Weighted average number of shares outstanding (diluted) 134,507,549 136,376,051 134,999,487 136,272,391 Earnings per share: Basic $ 1.86 $ 1.82 $ 2.75 $ 4.36 Diluted $ 1.86 $ 1.82 $ 2.75 $ 4.36 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Changes, net of tax, in accumulated other comprehensive income (loss) | Changes, net of tax, in accumulated other comprehensive income (loss) were as follows: (dollars in millions) Unrealized Retirement Foreign Total Three Months Ended September 30, 2020 Balance at beginning of period $ 66 $ 3 $ (4) $ 65 Other comprehensive income before reclassifications 12 — 2 14 Balance at end of period $ 78 $ 3 $ (2) $ 79 Three Months Ended September 30, 2019 Balance at beginning of period $ 30 $ (3) $ 1 $ 28 Other comprehensive income (loss) before reclassifications 11 — (1) 10 Balance at end of period $ 41 $ (3) $ — $ 38 Nine Months Ended September 30, 2020 Balance at beginning of period $ 41 $ 3 $ — $ 44 Other comprehensive income (loss) before reclassifications 38 — (2) 36 Reclassification adjustments from accumulated other (1) — — (1) Balance at end of period $ 78 $ 3 $ (2) $ 79 Nine Months Ended September 30, 2019 Balance at beginning of period $ (28) $ (3) $ (3) $ (34) Other comprehensive income before reclassifications 69 — 3 72 Balance at end of period $ 41 $ (3) $ — $ 38 * There were no amounts related to available-for-sale debt securities for which an allowance for credit losses was recorded during the three and nine months ended September 30, 2020. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Information about the Company's segments | The following tables present information about C&I and Other, as well as reconciliations to the consolidated financial statement amounts. (dollars in millions) Consumer Other Segment to Consolidated Three Months Ended September 30, 2020 Interest income $ 1,086 $ 1 $ 2 $ 1,089 Interest expense 250 1 4 255 Provision for finance receivable losses 232 — (1) 231 Net interest income after provision for finance receivable losses 604 — (1) 603 Other revenues 99 4 (2) 101 Other expenses 352 6 5 363 Income (loss) before income tax expense (benefit) $ 351 $ (2) $ (8) $ 341 Three Months Ended September 30, 2019 Interest income $ 1,060 $ 2 $ 3 $ 1,065 Interest expense 238 1 5 244 Provision for finance receivable losses 277 — 5 282 Net interest income after provision for finance receivable losses 545 1 (7) 539 Other revenues 152 5 (1) 156 Other expenses 385 8 5 398 Income (loss) before income tax expense (benefit) $ 312 $ (2) $ (13) $ 297 (dollars in millions) Consumer Other Segment to Consolidated At or for the Nine Months Ended September 30, 2020 Interest income $ 3,260 $ 4 $ 9 $ 3,273 Interest expense 765 3 13 781 Provision for finance receivable losses 1,184 — 2 1,186 Net interest income after provision for finance receivable losses 1,311 1 (6) 1,306 Other revenues 380 12 (2) 390 Other expenses 1,161 18 15 1,194 Income (loss) before income tax expense (benefit) $ 530 $ (5) $ (23) $ 502 Assets $ 19,743 $ 63 $ 2,051 $ 21,857 At or for the Nine Months Ended September 30, 2019 Interest income $ 3,013 $ 7 $ — $ 3,020 Interest expense 700 4 13 717 Provision for finance receivable losses 816 — 20 836 Net interest income after provision for finance receivable losses 1,497 3 (33) 1,467 Other revenues * 442 26 (8) 460 Other expenses 1,125 31 16 1,172 Income (loss) before income tax expense (benefit) $ 814 $ (2) $ (57) $ 755 Assets $ 20,276 $ 82 $ 2,052 $ 22,410 * Other revenues in Other include the gain on the February 2019 Real Estate Loan Sale as well as the impairment adjustments on the remaining loans in held for sale in 2019. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values and carrying values of financial instruments and fair value hierarchy based on the level of inputs utilized to determine such fair value | The following table 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 Total (dollars in millions) Level 1 Level 2 Level 3 September 30, 2020 Assets Cash and cash equivalents $ 1,944 $ — $ — $ 1,944 $ 1,944 Investment securities 42 1,833 7 1,882 1,882 Net finance receivables, less allowance for finance receivable losses — — 18,176 18,176 15,493 Restricted cash and restricted cash equivalents 497 — — 497 497 Other assets * — — 62 62 62 Liabilities Long-term debt $ — $ 18,702 $ — $ 18,702 $ 17,531 December 31, 2019 Assets Cash and cash equivalents $ 1,159 $ 68 $ — $ 1,227 $ 1,227 Investment securities 45 1,835 4 1,884 1,884 Net finance receivables, less allowance for finance receivable losses — — 19,319 19,319 17,560 Restricted cash and restricted cash equivalents 405 — — 405 405 Other assets * — — 84 84 74 Liabilities Long-term debt $ — $ 18,509 $ — $ 18,509 $ 17,212 * Other assets at September 30, 2020 and December 31, 2019 includes finance receivables held for sale and miscellaneous receivables related to our liquidating loan portfolios. |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following tables present information about our assets measured at fair value on a recurring basis and indicates the fair value hierarchy based on the levels of inputs we utilized to determine such fair value: Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 September 30, 2020 Assets Cash equivalents in mutual funds $ 1,534 $ — $ — $ 1,534 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 12 — 12 Obligations of states, municipalities, and political subdivisions — 86 — 86 Commercial paper — 24 — 24 Non-U.S. government and government sponsored entities — 141 — 141 Corporate debt 5 1,179 — 1,184 RMBS — 212 6 218 CMBS — 63 — 63 CDO/ABS — 78 — 78 Total available-for-sale securities 5 1,795 6 1,806 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 20 — 20 RMBS — 1 — 1 CDO/ABS — 16 — 16 Total bonds — 38 — 38 Preferred stock 14 — — 14 Common stock 23 — 1 24 Total other securities 37 38 1 76 Total investment securities 42 1,833 7 1,882 Restricted cash equivalents in mutual funds 487 — — 487 Total $ 2,063 $ 1,833 $ 7 $ 3,903 Fair Value Measurements Using Total Carried At Fair Value (dollars in millions) Level 1 Level 2 Level 3 December 31, 2019 Assets Cash equivalents in mutual funds $ 775 $ — $ — $ 775 Cash equivalents in securities — 68 — 68 Investment securities: Available-for-sale securities U.S. government and government sponsored entities — 11 — 11 Obligations of states, municipalities, and political subdivisions — 92 — 92 Certificates of deposit and commercial paper — 91 — 91 Non-U.S. government and government sponsored entities — 147 — 147 Corporate debt 5 1,093 — 1,098 RMBS — 217 — 217 CMBS — 57 — 57 CDO/ABS — 85 — 85 Total available-for-sale securities 5 1,793 — 1,798 Other securities Bonds: Non-U.S. government and government sponsored entities — 1 — 1 Corporate debt — 23 1 24 RMBS — 1 — 1 CDO/ABS — 12 2 14 Total bonds — 37 3 40 Preferred stock 14 5 — 19 Common stock 26 — — 26 Other long-term investments — — 1 1 Total other securities 40 42 4 86 Total investment securities 45 1,835 4 1,884 Restricted cash equivalents in mutual funds 403 — — 403 Total $ 1,223 $ 1,903 $ 4 $ 3,130 |
Fair Value, Assets Measured on Nonrecurring Basis | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques |
Business and Basis of Present_2
Business and Basis of Presentation (Details) | Sep. 30, 2020 |
Majority Shareholder | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage by Initial Stockholder | 40.90% |
Reconciliation of OneMain Fin_3
Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results - Reconciliation of SFC to OMH (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Consolidated Balance Sheets | ||||||||
Other assets | $ 1,082 | $ 1,082 | $ 769 | |||||
Deferred and accrued taxes | 55 | 55 | 34 | |||||
Other liabilities | 528 | 528 | 592 | |||||
Total shareholders' equity | 3,123 | $ 4,094 | 3,123 | $ 4,094 | $ 3,171 | 4,330 | $ 4,141 | $ 3,799 |
Consolidated Statements of Operations | ||||||||
Interest expense | 255 | 244 | 781 | 717 | ||||
Other revenue | 13 | 20 | 38 | 80 | ||||
Other operating expenses | 134 | 146 | 425 | 422 | ||||
Income before income taxes | 341 | 297 | 502 | 755 | ||||
Income taxes | 91 | 49 | 131 | 161 | ||||
Net income | 250 | 248 | 371 | 594 | ||||
OMFC | ||||||||
Consolidated Balance Sheets | ||||||||
Other assets | 1,081 | 1,081 | 768 | |||||
Deferred and accrued taxes | 57 | 57 | 35 | |||||
Other liabilities | 526 | 526 | 595 | |||||
Total shareholders' equity | 3,122 | 4,089 | 3,122 | 4,089 | $ 3,170 | 4,325 | $ 4,404 | $ 4,021 |
Consolidated Statements of Operations | ||||||||
Interest expense | 255 | 247 | 781 | 719 | ||||
Other revenue | 13 | 20 | 38 | 88 | ||||
Other operating expenses | 134 | 145 | 425 | 421 | ||||
Income before income taxes | 341 | 295 | 502 | 762 | ||||
Income taxes | 91 | 51 | 131 | 165 | ||||
Net income | 250 | 244 | 371 | 597 | ||||
Difference | ||||||||
Consolidated Balance Sheets | ||||||||
Other assets | 1 | 1 | 1 | |||||
Deferred and accrued taxes | (2) | (2) | (1) | |||||
Other liabilities | 2 | 2 | (3) | |||||
Total shareholders' equity | 1 | 1 | $ 5 | |||||
Consolidated Statements of Operations | ||||||||
Interest expense | 0 | (3) | 0 | (2) | ||||
Other revenue | 0 | (8) | ||||||
Other operating expenses | 0 | 1 | 0 | 1 | ||||
Income before income taxes | 0 | 2 | 0 | (7) | ||||
Income taxes | 0 | (2) | 0 | (4) | ||||
Net income | $ 0 | $ 4 | $ 0 | $ (3) |
Reconciliation of OneMain Fin_4
Reconciliation of OneMain Finance Corporation Results to OneMain Holdings, Inc. Results - Additional Information (Details) - USD ($) | Sep. 23, 2019 | Jul. 01, 2019 | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 23, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
OMFC | |||||||
Business Acquisition [Line Items] | |||||||
Cash contribution from OMH | $ 0 | $ 144,000,000 | |||||
Affiliated Entity | OMFC | |||||||
Business Acquisition [Line Items] | |||||||
Equity reduction | $ 408,000,000 | $ 264,000,000 | |||||
Accrued interest | $ 22,000,000 | 166,000,000 | $ 22,000,000 | ||||
Equity contribution | $ 144,000,000 | ||||||
Affiliated Entity | SFI | OMFC | |||||||
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | 232,000,000 | ||||||
Interest income on notes receivable | $ 0 | 8,000,000 | |||||
Affiliated Entity | SFI | SMHC | |||||||
Business Acquisition [Line Items] | |||||||
Notes receivable from parent | $ 28,000,000 | ||||||
SMHC | OMFC | |||||||
Business Acquisition [Line Items] | |||||||
Contribution of SCHC to OMFC from SFI | $ 34,000,000 | $ 34,000,000 | |||||
Cash contribution from OMH | $ 53,000,000 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($)payment | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jan. 01, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Financing receivable, allowance for credit loss | $ 2,324 | $ 829 | |||||
Retained earnings | $ 3,123 | 4,330 | $ 3,171 | $ 4,094 | $ 4,141 | $ 3,799 | |
Number of consecutive payments missed to reverse finance charges | payment | 4 | ||||||
One-time cumulative effect | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Financing receivable, allowance for credit loss | 1,118 | $ 1,120 | |||||
Deferred tax assets | 280 | ||||||
Retained earnings | $ (828) | $ 830 |
Finance Receivables - Additiona
Finance Receivables - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | $ 17,817 | $ 17,817 | $ 18,389 | |||||
Financing receivable, allowance for credit loss | 2,324 | 2,324 | 829 | |||||
Finance receivables held for sale | $ 54 | $ 54 | 64 | |||||
ASU 2016-13 | Purchased credit impaired finance receivables | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | $ 15 | |||||||
Financing receivable, allowance for credit loss | $ 15 | |||||||
Unlikely to be Collected Financing Receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold period past due | 60 days | 60 days | ||||||
Nonperforming | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Threshold period past due | 90 days | 90 days | ||||||
Reversal of net accrued finance charges | $ 16 | $ 66 | ||||||
Finance charges recognized from the contractual interest portion of payments received on nonaccrual finance receivables | 3 | 12 | ||||||
Finance receivable - Personal loan | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | 17,817 | 17,817 | 18,389 | |||||
Financing receivable, allowance for credit loss | 2,324 | 2,324 | $ 2,324 | 829 | $ 798 | $ 744 | $ 731 | |
Finance receivable - Personal loan | Purchased credit impaired finance receivables | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Net finance receivables | $ 0 | $ 0 | $ 40 | |||||
Finance receivable - Personal loan | Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables, original term | 3 years | |||||||
Finance receivable - Personal loan | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Finance receivables, original term | 6 years |
Finance Receivables - Net Finan
Finance Receivables - Net Finance Receivables by Type (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing receivable general information | ||
Total | $ 17,817 | $ 18,389 |
Finance receivable - Personal loan | ||
Financing receivable general information | ||
Gross receivables | 17,606 | 18,195 |
Unearned points and fees | (224) | (242) |
Accrued finance charges | 290 | 289 |
Deferred origination costs | 145 | 147 |
Total | $ 17,817 | $ 18,389 |
Finance Receivables - Delinquen
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Year of Origination (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Delinquency by finance receivables type | ||
Total | $ 17,817 | $ 18,389 |
Finance receivable - Personal loan | ||
Delinquency by finance receivables type | ||
2020 | 6,586 | |
2019 | 7,247 | |
2018 | 2,670 | |
2017 | 898 | |
2016 | 271 | |
Prior | 145 | |
Total | 17,817 | 18,389 |
Finance receivable - Personal loan | Performing | ||
Delinquency by finance receivables type | ||
2020 | 6,560 | |
2019 | 7,109 | |
2018 | 2,607 | |
2017 | 874 | |
2016 | 262 | |
Prior | 139 | |
Total | 17,551 | 18,003 |
Finance receivable - Personal loan | Performing | Current | ||
Delinquency by finance receivables type | ||
2020 | 6,504 | |
2019 | 6,940 | |
2018 | 2,534 | |
2017 | 844 | |
2016 | 251 | |
Prior | 132 | |
Total | 17,205 | |
Finance receivable - Personal loan | Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
2020 | 36 | |
2019 | 103 | |
2018 | 45 | |
2017 | 19 | |
2016 | 7 | |
Prior | 5 | |
Total | 215 | |
Finance receivable - Personal loan | Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
2020 | 20 | |
2019 | 66 | |
2018 | 28 | |
2017 | 11 | |
2016 | 4 | |
Prior | 2 | |
Total | 131 | |
Finance receivable - Personal loan | Nonperforming | ||
Delinquency by finance receivables type | ||
2020 | 26 | |
2019 | 138 | |
2018 | 63 | |
2017 | 24 | |
2016 | 9 | |
Prior | 6 | |
Total | 266 | $ 386 |
Finance receivable - Personal loan | Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type | ||
2020 | 26 | |
2019 | 133 | |
2018 | 61 | |
2017 | 23 | |
2016 | 9 | |
Prior | 6 | |
Total | 258 | |
Finance receivable - Personal loan | Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type | ||
2020 | 0 | |
2019 | 5 | |
2018 | 2 | |
2017 | 1 | |
2016 | 0 | |
Prior | 0 | |
Total | $ 8 |
Finance Receivables - Delinqu_2
Finance Receivables - Delinquent and Nonperforming Finance Receivables, by Number of Days Deliquent (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Delinquency by finance receivables type | ||
Total | $ 17,817 | $ 18,389 |
Finance receivable - Personal loan | ||
Delinquency by finance receivables type | ||
Total | 17,817 | 18,389 |
Finance receivable - Personal loan | Performing | ||
Delinquency by finance receivables type | ||
Current | 17,550 | |
Total | 17,551 | 18,003 |
Finance receivable - Personal loan | Performing | 30-59 days past due | ||
Delinquency by finance receivables type | ||
Past due | 272 | |
Total | 215 | |
Finance receivable - Personal loan | Performing | 60-89 days past due | ||
Delinquency by finance receivables type | ||
Past due | 181 | |
Total | 131 | |
Finance receivable - Personal loan | Nonperforming | ||
Delinquency by finance receivables type | ||
Total | 266 | 386 |
Finance receivable - Personal loan | Nonperforming | 90-179 days past due | ||
Delinquency by finance receivables type | ||
Past due | 377 | |
Total | 258 | |
Finance receivable - Personal loan | Nonperforming | 180 days or more past due | ||
Delinquency by finance receivables type | ||
Past due | $ 9 | |
Total | $ 8 |
Finance Receivables - Purchased
Finance Receivables - Purchased Credit Impaired Finance Receivables HFI (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | $ 19 | |
Outstanding balance | 35 | |
Finance receivable - Personal loan | ||
Financing Receivable, Impaired [Line Items] | ||
Carrying amount, net of allowance | 40 | |
Outstanding balance | 74 | |
Allowance for purchased credit impaired finance receivable losses | $ 0 | $ 0 |
Finance Receivables - Changes i
Finance Receivables - Changes in Accretable Yield For Purchased Credit Impaired HFI and HFS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Real Estate Loans - Held for Sale | ||
Changes in accretable yield for purchased credit impaired finance receivables | ||
Balance at beginning of period | $ 23 | $ 27 |
Accretion | (1) | (2) |
Transfer due to finance receivables sold | 0 | (3) |
Balance at end of period | 22 | 22 |
Finance receivable - Personal loan | ||
Changes in accretable yield for purchased credit impaired finance receivables | ||
Balance at beginning of period | 46 | 39 |
Accretion | (6) | (15) |
Reclassifications from nonaccretable difference | 0 | 16 |
Balance at end of period | $ 40 | $ 40 |
Finance Receivables - TDR Finan
Finance Receivables - TDR Finance Receivable HFI and HFS (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Real Estate Loans - Held for Sale | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables, held for sale | $ 49 | $ 52 |
TDR net receivables, held for sale | 49 | 53 |
Finance receivable - Personal loan | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
TDR gross receivables, personal loans | 699 | 655 |
TDR net receivables, personal loans | 701 | 658 |
Allowance for TDR finance receivable losses | $ 321 | $ 272 |
Finance Receivables - TDR Avera
Finance Receivables - TDR Average Net Receivables HFI and HFS and Finance Charges Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | $ 750 | $ 626 | $ 743 | $ 584 |
TDR finance charges recognized | 14 | 12 | 40 | 37 |
Personal Loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | 701 | 571 | 692 | 525 |
TDR finance charges recognized | 13 | 11 | 38 | 35 |
Other Receivables | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR average net receivables | 49 | 55 | 51 | 59 |
TDR finance charges recognized | $ 1 | $ 1 | $ 2 | $ 2 |
Finance Receivables - New Volum
Finance Receivables - New Volume of TDR HFI & HFS Finance Receivables (Details) - Personal Loans $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)account | Sep. 30, 2019USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2019USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Pre-modification TDR net finance receivables | $ 105 | $ 129 | $ 392 | $ 373 |
Total post-modification TDR net finance receivables | $ 105 | $ 129 | $ 392 | $ 373 |
Number of TDR accounts | account | 13,581 | 18,545 | 52,780 | 55,358 |
Rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 67 | $ 86 | $ 242 | $ 257 |
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total post-modification TDR net finance receivables | $ 38 | $ 43 | $ 150 | $ 116 |
Finance Receivables - Modified
Finance Receivables - Modified as TDR - Non Performing Finance Receivables (Details) - Personal Loans $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)account | Sep. 30, 2019USD ($)account | Sep. 30, 2020USD ($)account | Sep. 30, 2019USD ($)account | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
TDR net finance receivables | $ | $ 20 | $ 27 | $ 77 | $ 66 |
Number of TDR accounts | account | 2,947 | 4,202 | 11,286 | 10,298 |
Allowance for Finance Receiva_3
Allowance for Finance Receivable Losses - Changes in Allowance by Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Changes in allowance for finance receivable losses | |||||
Balance at beginning of period | $ 829 | ||||
Provision for finance receivable losses | $ 231 | $ 282 | 1,186 | $ 836 | |
Balance at end of period | 2,324 | 2,324 | $ 829 | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Net impact of adoption of ASU 2016-13 | |||||
Changes in allowance for finance receivable losses | |||||
Balance at beginning of period | 1,118 | ||||
Balance at end of period | $ 1,118 | ||||
Personal Loans | |||||
Changes in allowance for finance receivable losses | |||||
Balance at beginning of period | 2,324 | 744 | 829 | 731 | 731 |
Provision for finance receivable losses | 231 | 282 | 1,186 | 836 | |
Charge-offs | (274) | (260) | (931) | (862) | |
Recoveries | 43 | 32 | 122 | 93 | |
Balance at end of period | $ 2,324 | $ 798 | $ 2,324 | $ 798 | $ 829 |
Allowance for Finance Receiva_4
Allowance for Finance Receivable Losses - By Type and Impairment Method (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Allowance for finance receivable losses: | ||||||
Total | $ 2,324 | $ 829 | ||||
Finance receivables: | ||||||
Net finance receivables | 17,817 | 18,389 | ||||
Finance receivable - Personal loan | ||||||
Allowance for finance receivable losses: | ||||||
Collectively evaluated for impairment | 2,003 | 557 | ||||
Purchased credit impaired finance receivables * | 0 | 0 | ||||
TDR finance receivables | 321 | 272 | ||||
Total | 2,324 | 829 | $ 2,324 | $ 798 | $ 744 | $ 731 |
Finance receivables: | ||||||
Collectively evaluated for impairment | 17,116 | 17,691 | ||||
TDR finance receivables | 701 | 658 | ||||
Net finance receivables | $ 17,817 | $ 18,389 | ||||
Allowance for finance receivable losses as a percentage of finance receivables | 13.05% | 4.51% | ||||
Finance receivable - Personal loan | Purchased credit impaired finance receivables | ||||||
Finance receivables: | ||||||
Net finance receivables | $ 0 | $ 40 |
Finance Receivables Held for _2
Finance Receivables Held for Sale (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Finance receivables held for sale | $ 54 | $ 64 | ||
Aggregate cash proceeds from sale of real estate loans | $ 0 | $ 19 | ||
February 2019 Real Estate Loan Sale | Disposed of by Sale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 16 | |||
Aggregate cash proceeds from sale of real estate loans | 19 | |||
Net gain in other revenues | 3 | |||
Impairment in other revenue | $ 3 |
Investment Securities - Cost_Am
Investment Securities - Cost/Amortized, Unrealized Gains/Losses & FV on AFS Investment Securities (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | $ 1,705,000,000 | $ 1,745,000,000 |
Unrealized Gains | 107,000,000 | 55,000,000 |
Unrealized Losses | (6,000,000) | (2,000,000) |
Fair Value | 1,806,000,000 | 1,798,000,000 |
Allowance for credit loss | 0 | |
U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 12,000,000 | 11,000,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 12,000,000 | 11,000,000 |
Obligations of states, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 81,000,000 | 91,000,000 |
Unrealized Gains | 5,000,000 | 2,000,000 |
Unrealized Losses | 0 | (1,000,000) |
Fair Value | 86,000,000 | 92,000,000 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 24,000,000 | 91,000,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 24,000,000 | 91,000,000 |
Non-U.S. government and government sponsored entities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 132,000,000 | 144,000,000 |
Unrealized Gains | 9,000,000 | 3,000,000 |
Unrealized Losses | 0 | |
Fair Value | 141,000,000 | 147,000,000 |
Corporate debt | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 1,106,000,000 | 1,054,000,000 |
Unrealized Gains | 83,000,000 | 45,000,000 |
Unrealized Losses | (5,000,000) | (1,000,000) |
Fair Value | 1,184,000,000 | 1,098,000,000 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 211,000,000 | 214,000,000 |
Unrealized Gains | 7,000,000 | 3,000,000 |
Unrealized Losses | 0 | 0 |
Fair Value | 218,000,000 | 217,000,000 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 61,000,000 | 56,000,000 |
Unrealized Gains | 2,000,000 | 1,000,000 |
Unrealized Losses | 0 | |
Fair Value | 63,000,000 | 57,000,000 |
CDO/ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/ Amortized Cost | 78,000,000 | 84,000,000 |
Unrealized Gains | 1,000,000 | 1,000,000 |
Unrealized Losses | (1,000,000) | 0 |
Fair Value | $ 78,000,000 | $ 85,000,000 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)investment | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)investment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)investment | |
Investments, Debt and Equity Securities [Abstract] | |||||
Interest receivable | $ 13 | $ 13 | |||
Investment securities in an unrealized loss position | investment | 233 | 233 | 398 | ||
Proceeds from sales and redemptions | $ 74 | $ 36 | $ 179 | $ 245 | |
Securities on deposit with third parties | $ 604 | $ 604 | $ 633 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Unrealized Losses on AFS Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less Than 12 Months | $ 172 | $ 261 |
12 Months or Longer | 5 | 41 |
Total | 177 | 302 |
Unrealized Losses | ||
Less Than 12 Months | (5) | (2) |
12 Months or Longer | (1) | 0 |
Total | (6) | (2) |
U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 3 | |
Total | 3 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Obligations of states, municipalities, and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 3 | 29 |
12 Months or Longer | 0 | 4 |
Total | 3 | 33 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (1) |
12 Months or Longer | 0 | 0 |
Total | 0 | (1) |
Commercial paper | ||
Fair Value | ||
Less Than 12 Months | 19 | 76 |
12 Months or Longer | 0 | 0 |
Total | 19 | 76 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Non-U.S. government and government sponsored entities | ||
Fair Value | ||
Less Than 12 Months | 3 | 19 |
12 Months or Longer | 0 | 14 |
Total | 3 | 33 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
Corporate debt | ||
Fair Value | ||
Less Than 12 Months | 95 | 63 |
12 Months or Longer | 5 | 13 |
Total | 100 | 76 |
Unrealized Losses | ||
Less Than 12 Months | (4) | (1) |
12 Months or Longer | (1) | 0 |
Total | (5) | (1) |
RMBS | ||
Fair Value | ||
Less Than 12 Months | 10 | 45 |
12 Months or Longer | 0 | 0 |
Total | 10 | 45 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
CMBS | ||
Fair Value | ||
Less Than 12 Months | 21 | 15 |
12 Months or Longer | 0 | 7 |
Total | 21 | 22 |
Unrealized Losses | ||
Less Than 12 Months | 0 | 0 |
12 Months or Longer | 0 | 0 |
Total | 0 | 0 |
CDO/ABS | ||
Fair Value | ||
Less Than 12 Months | 21 | 14 |
12 Months or Longer | 0 | 0 |
Total | 21 | 14 |
Unrealized Losses | ||
Less Than 12 Months | (1) | 0 |
12 Months or Longer | 0 | 0 |
Total | $ (1) | $ 0 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of AFS Investment Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | $ 128 | |
Due after 1 year through 5 years | 605 | |
Due after 5 years through 10 years | 526 | |
Due after 10 years | 188 | |
Mortgage-backed, asset-backed, and collateralized securities | 359 | |
Total | 1,806 | $ 1,798 |
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||
Due in 1 year or less | 127 | |
Due after 1 year through 5 years | 573 | |
Due after 5 years through 10 years | 485 | |
Due after 10 years | 170 | |
Mortgage-backed, asset-backed, and collateralized securities | 350 | |
Cost/ Amortized Cost | $ 1,705 | $ 1,745 |
Investment Securities - Fair _2
Investment Securities - Fair Value of Other Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | $ 38 | $ 40 |
Other long-term investments | 0 | 1 |
Total | 76 | 86 |
Non-U.S. government and government sponsored entities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 1 | 1 |
Corporate debt | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 20 | 24 |
Mortgage-backed, asset-backed, and collateralized bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Bonds | 17 | 15 |
Preferred stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | 14 | 19 |
Common stock | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity securities | $ 24 | $ 26 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Principal maturities of long-term debt by type of debt | ||
Fourth quarter 2020 | $ 0 | |
2021 | 635,000,000 | |
2022 | 992,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025-2067 | 5,335,000,000 | |
Total principal maturities | 17,838,000,000 | |
Long-term Debt | 17,531,000,000 | $ 17,212,000,000 |
Debt issuance costs | (112,000,000) | |
Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Long-term Debt | 8,366,000,000 | 7,643,000,000 |
Securitizations | Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Amounts drawn | 0 | |
Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
Securitizations | 8,401,000,000 | |
Senior Debt | Securitizations | ||
Principal maturities of long-term debt by type of debt | ||
Fourth quarter 2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025-2067 | 0 | |
Securitizations | 8,401,000,000 | |
Total principal maturities | 8,401,000,000 | |
Long-term Debt | 8,366,000,000 | |
Debt issuance costs | (32,000,000) | |
Debt issuance costs | $ 31,000,000 | |
Senior Debt | Securitizations | Minimum | ||
Long-term debt | ||
Interest rate | 0.95% | |
Senior Debt | Securitizations | Maximum | ||
Long-term debt | ||
Interest rate | 6.94% | |
Senior Debt | Unsecured Notes | ||
Principal maturities of long-term debt by type of debt | ||
Fourth quarter 2020 | $ 0 | |
2021 | 635,000,000 | |
2022 | 992,000,000 | |
2023 | 1,175,000,000 | |
2024 | 1,300,000,000 | |
2025-2067 | 4,985,000,000 | |
Total principal maturities | 9,087,000,000 | |
Long-term Debt | 8,993,000,000 | |
Debt issuance costs | $ (80,000,000) | |
Senior Debt | Unsecured Notes | Minimum | ||
Long-term debt | ||
Interest rate | 5.38% | |
Senior Debt | Unsecured Notes | Maximum | ||
Long-term debt | ||
Interest rate | 8.88% | |
Junior Subordinated Debt | ||
Principal maturities of long-term debt by type of debt | ||
Fourth quarter 2020 | $ 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025-2067 | 350,000,000 | |
Total principal maturities | 350,000,000 | |
Long-term Debt | 172,000,000 | |
Debt issuance costs | 0 | |
OMFC | ||
Principal maturities of long-term debt by type of debt | ||
Long-term Debt | 17,531,000,000 | 17,212,000,000 |
OMFC | Consolidated VIEs | ||
Principal maturities of long-term debt by type of debt | ||
Long-term Debt | $ 8,400,000,000 | $ 7,600,000,000 |
OMFC | Junior Subordinated Debt | ||
Long-term debt | ||
Effective interest rate | 203.00% |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) $ in Millions | Jul. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2020 | May 14, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 17,531 | $ 17,531 | $ 17,212 | ||
8.75% Senior Notes Due 2025 | Senior Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 8.875% | ||||
Long-term debt | $ 600 | ||||
8.25% Senior Notes Due 2020 | Senior Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 8.25% | 8.25% | |||
Repayments of debt | $ 1,000 | ||||
Loss on repurchase and repayments of debt | $ 35 | $ 35 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Amount of Consolidated VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $ 1,944 | $ 1,227 | $ 1,393 | |||
Finance receivables - Personal loans | 17,817 | 18,389 | ||||
Allowance for finance receivable losses | 2,324 | 829 | ||||
Restricted cash and restricted cash equivalents | 497 | 405 | 434 | |||
Other assets | 1,082 | 769 | ||||
Long-term debt | 17,531 | 17,212 | ||||
Finance receivable - Personal loan | ||||||
Variable Interest Entity [Line Items] | ||||||
Finance receivables - Personal loans | 17,817 | 18,389 | ||||
Allowance for finance receivable losses | 2,324 | $ 2,324 | 829 | $ 798 | $ 744 | $ 731 |
Consolidated VIEs | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 2 | 4 | ||||
Allowance for finance receivable losses | 1,184 | 340 | ||||
Restricted cash and restricted cash equivalents | 479 | 400 | ||||
Other assets | 31 | 29 | ||||
Long-term debt | 8,366 | 7,643 | ||||
Other liabilities | 16 | 15 | ||||
Consolidated VIEs | Finance receivable - Personal loan | ||||||
Variable Interest Entity [Line Items] | ||||||
Finance receivables - Personal loans | $ 9,371 | $ 8,428 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIEs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 255 | $ 244 | $ 781 | $ 717 |
Consolidated VIEs | ||||
Variable Interest Entity [Line Items] | ||||
Interest expense | $ 84 | $ 79 | $ 256 | $ 243 |
Variable Interest Entities - Se
Variable Interest Entities - Securitized Borrowings (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Minimum | |
Debt Instrument [Line Items] | |
Revolving period | 1 year |
Maximum | |
Debt Instrument [Line Items] | |
Revolving period | 7 years |
Variable Interest Entities - Re
Variable Interest Entities - Revolving Conduit Facilities (Details) - Consolidated VIEs - Securitizations | 9 Months Ended |
Sep. 30, 2020USD ($)facility | |
Line of Credit Facility [Line Items] | |
Number of conduit facilities | facility | 14 |
Total borrowing capacity | $ 7,200,000,000 |
Amounts drawn | $ 0 |
Maximum | |
Line of Credit Facility [Line Items] | |
Debt instrument, term | 10 years |
Insurance (Details)
Insurance (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for unpaid claims and claims adjustment expense | ||||
Balance at beginning of period | $ 117 | $ 117 | ||
Less reinsurance recoverables | (3) | (3) | $ (4) | $ (4) |
Net balance at beginning of period | 113 | 113 | ||
Additions for losses and loss adjustment expenses incurred to: | ||||
Current year | 221 | 154 | ||
Prior years | (10) | (13) | ||
Total | 211 | 141 | ||
Reductions for losses and loss adjustment expenses paid related to: | ||||
Current year | (107) | (85) | ||
Prior years | (60) | (57) | ||
Total | (167) | (142) | ||
Net balance at end of period | 157 | 112 | ||
Plus reinsurance recoverables | 3 | 3 | $ 4 | $ 4 |
Balance at end of period | 160 | 115 | ||
Net reserves | $ 10 | $ 13 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share (OMH Only) - Additional Information (Details) | Mar. 19, 2020$ / sharesshares | Mar. 19, 2020USD ($) | Sep. 30, 2020USD ($)class | Sep. 30, 2019USD ($) | Mar. 31, 2020USD ($) |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Number of classes of authorized stock | class | 2 | ||||
Stock repurchase program | $ 200,000,000 | ||||
Shares repurchased and retired (in shares) | shares | 2,031,698 | ||||
Shares repurchased average price per share (in usd per share) | $ / shares | $ 22.30 | ||||
Common stock repurchased and retired | $ 45,000,000 | $ 45,000,000 | |||
Payments of dividends | 745,000,000 | $ 374,000,000 | |||
OMFC | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Payments of dividends | $ 45,000,000 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share (OMH Only) - Changes in Shares Issued and Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Beginning balance (in shares) | 134,319,171 | 136,089,417 | 136,101,156 | 135,832,278 |
Common shares issued (in shares) | 3,842 | 6,257 | 253,555 | 263,396 |
Common shares retired (in shares) | 0 | 0 | (2,031,698) | 0 |
Ending balance (in shares) | 134,323,013 | 136,095,674 | 134,323,013 | 136,095,674 |
Capital Stock and Earnings Pe_5
Capital Stock and Earnings Per Share (OMH Only) - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator (basic and diluted): | ||||
Net income | $ 250 | $ 248 | $ 371 | $ 594 |
Denominator: | ||||
Weighted average number of shares outstanding (basic) (in shares) | 134,321,929 | 136,095,481 | 134,847,170 | 136,060,832 |
Effect of dilutive securities (in shares) | 185,620 | 280,570 | 152,317 | 211,559 |
Weighted average number of shares outstanding (diluted) (in shares) | 134,507,549 | 136,376,051 | 134,999,487 | 136,272,391 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.86 | $ 1.82 | $ 2.75 | $ 4.36 |
Diluted (in dollars per share) | $ 1.86 | $ 1.82 | $ 2.75 | $ 4.36 |
Service-based shares | ||||
Earnings per share: | ||||
Shares excluded in the diluted earnings per share calculation (in shares) | 256,034 | 184,997 | 303,913 | 297,194 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | $ 3,171,000,000 | $ 4,141,000,000 | $ 4,330,000,000 | $ 3,799,000,000 |
Other comprehensive income (loss) before reclassifications | 14,000,000 | 10,000,000 | 36,000,000 | 72,000,000 |
Reclassification adjustments from accumulated other comprehensive income | 1,000,000 | |||
Balance at end of period | 3,123,000,000 | 4,094,000,000 | 3,123,000,000 | 4,094,000,000 |
Allowance for credit loss | 0 | 0 | ||
Unrealized Gains (Losses) Available-for-Sale Securities * | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 66,000,000 | 30,000,000 | 41,000,000 | (28,000,000) |
Other comprehensive income (loss) before reclassifications | 12,000,000 | 11,000,000 | 38,000,000 | 69,000,000 |
Reclassification adjustments from accumulated other comprehensive income | 1,000,000 | |||
Balance at end of period | 78,000,000 | 41,000,000 | 78,000,000 | 41,000,000 |
Retirement Plan Liabilities Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 3,000,000 | (3,000,000) | 3,000,000 | (3,000,000) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | 3,000,000 | (3,000,000) | 3,000,000 | (3,000,000) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | (4,000,000) | 1,000,000 | 0 | (3,000,000) |
Other comprehensive income (loss) before reclassifications | 2,000,000 | (1,000,000) | (2,000,000) | 3,000,000 |
Reclassification adjustments from accumulated other comprehensive income | 0 | |||
Balance at end of period | (2,000,000) | 0 | (2,000,000) | 0 |
Total Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Balance at beginning of period | 65,000,000 | 28,000,000 | 44,000,000 | (34,000,000) |
Balance at end of period | $ 79,000,000 | $ 38,000,000 | $ 79,000,000 | $ 38,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Net deferred tax asset | $ 440 | $ 104 | |
Increase in net deferred tax asset | $ 336 | ||
Effective tax rate | 26.10% | 21.30% | |
Unrecognized tax benefits, including related interest and penalties | $ 13 | $ 12 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Interest income | $ 1,089 | $ 1,065 | $ 3,273 | $ 3,020 | |
Interest expense | 255 | 244 | 781 | 717 | |
Provision for finance receivable losses | 231 | 282 | 1,186 | 836 | |
Net interest income after provision for finance receivable losses | 603 | 539 | 1,306 | 1,467 | |
Other revenues | 101 | 156 | 390 | 460 | |
Other expenses | 363 | 398 | 1,194 | 1,172 | |
Income (loss) before income tax expense (benefit) | 341 | 297 | 502 | 755 | |
Assets | 21,857 | 22,410 | 21,857 | 22,410 | $ 22,817 |
Consumer and Insurance | Consumer and Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1,086 | 1,060 | 3,260 | 3,013 | |
Interest expense | 250 | 238 | 765 | 700 | |
Provision for finance receivable losses | 232 | 277 | 1,184 | 816 | |
Net interest income after provision for finance receivable losses | 604 | 545 | 1,311 | 1,497 | |
Other revenues | 99 | 152 | 380 | 442 | |
Other expenses | 352 | 385 | 1,161 | 1,125 | |
Income (loss) before income tax expense (benefit) | 351 | 312 | 530 | 814 | |
Assets | 19,743 | 20,276 | 19,743 | 20,276 | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 1 | 2 | 4 | 7 | |
Interest expense | 1 | 1 | 3 | 4 | |
Provision for finance receivable losses | 0 | 0 | 0 | 0 | |
Net interest income after provision for finance receivable losses | 0 | 1 | 1 | 3 | |
Other revenues | 4 | 5 | 12 | 26 | |
Other expenses | 6 | 8 | 18 | 31 | |
Income (loss) before income tax expense (benefit) | (2) | (2) | (5) | (2) | |
Assets | 63 | 82 | 63 | 82 | |
Segment to GAAP Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Interest income | 2 | 3 | 9 | 0 | |
Interest expense | 4 | 5 | 13 | 13 | |
Provision for finance receivable losses | (1) | 5 | 2 | 20 | |
Net interest income after provision for finance receivable losses | (1) | (7) | (6) | (33) | |
Other revenues | (2) | (1) | (2) | (8) | |
Other expenses | 5 | 5 | 15 | 16 | |
Income (loss) before income tax expense (benefit) | (8) | (13) | (23) | (57) | |
Assets | $ 2,051 | $ 2,052 | $ 2,051 | $ 2,052 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value & Carrying Value Hierarchy Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Assets | |||
Restricted cash and restricted cash equivalents | $ 497 | $ 405 | $ 434 |
Total Fair Value | |||
Assets | |||
Cash and cash equivalents | 1,944 | 1,227 | |
Investment securities | 1,882 | 1,884 | |
Net finance receivables, less allowance for finance receivable losses | 18,176 | 19,319 | |
Restricted cash and restricted cash equivalents | 497 | 405 | |
Other assets | 62 | 84 | |
Liabilities | |||
Long-term debt | 18,702 | 18,509 | |
Total Carrying Value | |||
Assets | |||
Cash and cash equivalents | 1,944 | 1,227 | |
Investment securities | 1,882 | 1,884 | |
Net finance receivables, less allowance for finance receivable losses | 15,493 | 17,560 | |
Restricted cash and restricted cash equivalents | 497 | 405 | |
Other assets | 62 | 74 | |
Liabilities | |||
Long-term debt | 17,531 | 17,212 | |
Level 1 | |||
Assets | |||
Cash and cash equivalents | 1,944 | 1,159 | |
Investment securities | 42 | 45 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 497 | 405 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 0 | 0 | |
Level 2 | |||
Assets | |||
Cash and cash equivalents | 0 | 68 | |
Investment securities | 1,833 | 1,835 | |
Net finance receivables, less allowance for finance receivable losses | 0 | 0 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 0 | 0 | |
Liabilities | |||
Long-term debt | 18,702 | 18,509 | |
Level 3 | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 7 | 4 | |
Net finance receivables, less allowance for finance receivable losses | 18,176 | 19,319 | |
Restricted cash and restricted cash equivalents | 0 | 0 | |
Other assets | 62 | 84 | |
Liabilities | |||
Long-term debt | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets at Fair Value Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | $ 1,806 | $ 1,798 |
Other securities | 76 | 86 |
U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 12 | 11 |
Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 86 | 92 |
Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,184 | 1,098 |
RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 218 | 217 |
CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 63 | 57 |
CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 78 | 85 |
Level 1 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 42 | 45 |
Level 2 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 1,833 | 1,835 |
Level 3 | ||
Investments, Debt and Equity Securities [Abstract] | ||
Total investment securities | 7 | 4 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents in mutual funds | 1,534 | 775 |
Cash equivalents in securities | 68 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,806 | 1,798 |
Other securities | 76 | 86 |
Total investment securities | 1,882 | 1,884 |
Restricted cash equivalents in mutual funds | 487 | 403 |
Total | 3,903 | 3,130 |
Fair Value, Measurements, Recurring | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 38 | 40 |
Fair Value, Measurements, Recurring | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 12 | 11 |
Fair Value, Measurements, Recurring | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 86 | 92 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 24 | 91 |
Fair Value, Measurements, Recurring | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 141 | 147 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,184 | 1,098 |
Other securities | 20 | 24 |
Fair Value, Measurements, Recurring | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 218 | 217 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 63 | 57 |
Fair Value, Measurements, Recurring | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 78 | 85 |
Other securities | 16 | 14 |
Fair Value, Measurements, Recurring | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 14 | 19 |
Fair Value, Measurements, Recurring | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 24 | 26 |
Fair Value, Measurements, Recurring | Other long-term investments | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 1 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Cash equivalents in mutual funds | 1,534 | 775 |
Cash equivalents in securities | 0 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 5 | 5 |
Other securities | 37 | 40 |
Total investment securities | 42 | 45 |
Restricted cash equivalents in mutual funds | 487 | 403 |
Total | 2,063 | 1,223 |
Fair Value, Measurements, Recurring | Level 1 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 5 | 5 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 14 | 14 |
Fair Value, Measurements, Recurring | Level 1 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 23 | 26 |
Fair Value, Measurements, Recurring | Level 1 | Other long-term investments | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 68 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,795 | 1,793 |
Other securities | 38 | 42 |
Total investment securities | 1,833 | 1,835 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 1,833 | 1,903 |
Fair Value, Measurements, Recurring | Level 2 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 38 | 37 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 12 | 11 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 86 | 92 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 24 | 91 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 141 | 147 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 1,179 | 1,093 |
Other securities | 20 | 23 |
Fair Value, Measurements, Recurring | Level 2 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 212 | 217 |
Other securities | 1 | 1 |
Fair Value, Measurements, Recurring | Level 2 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 63 | 57 |
Fair Value, Measurements, Recurring | Level 2 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 78 | 85 |
Other securities | 16 | 12 |
Fair Value, Measurements, Recurring | Level 2 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 5 |
Fair Value, Measurements, Recurring | Level 2 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Other long-term investments | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Cash equivalents in mutual funds | 0 | 0 |
Cash equivalents in securities | 0 | |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 6 | 0 |
Other securities | 1 | 4 |
Total investment securities | 7 | 4 |
Restricted cash equivalents in mutual funds | 0 | 0 |
Total | 7 | 4 |
Fair Value, Measurements, Recurring | Level 3 | Total bonds | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 3 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of states, municipalities, and political subdivisions | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. government and government sponsored entities | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 1 |
Fair Value, Measurements, Recurring | Level 3 | RMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 6 | 0 |
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CMBS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | CDO/ABS | ||
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities | 0 | 0 |
Other securities | 0 | 2 |
Fair Value, Measurements, Recurring | Level 3 | Preferred stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Common stock | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | $ 1 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Other long-term investments | ||
Investments, Debt and Equity Securities [Abstract] | ||
Other securities | $ 1 |