Delaware (OneMain Holdings, Inc.) | 27-3379612 | |||||||||||||
Indiana (OneMain Finance Corporation) | 35-0416090 | |||||||||||||
(State of incorporation) | (I.R.S. Employer Identification No.) |
OneMain Holdings, Inc.: | ||||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | OMF | New York Stock Exchange | ||||||||||||
OneMain Finance Corporation: None |
OneMain Holdings, Inc.: | |||||||||||||||||||||||||||||
Large accelerated filer | ☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||
OneMain Finance Corporation: | |||||||||||||||||||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☑ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Term or Abbreviation | Definition | |||||||
30-89 Delinquency ratio | net finance receivables 30-89 days past due as a percentage of net finance receivables | |||||||
3.875% Senior Notes due 2028 | $600 million of 3.875% Senior Notes due 2028 issued by OMFC on August 11, 2021 and guaranteed by OMH | |||||||
ABS | asset-backed securities | |||||||
Adjusted pretax income (loss) | a non-GAAP financial measure used by management as a key performance measure of our segment | |||||||
AETR | annual effective tax rate | |||||||
AHL | American Health and Life Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
Annual Report | the Annual Report on Form 10-K of OMH and OMFC for the fiscal year ended December 31, 2020, filed with the SEC on February 9, 2021 | |||||||
Apollo | Apollo Global Management, LLC and its consolidated subsidiaries | |||||||
Apollo-Värde Group | an investor group led by funds managed by Apollo and Värde | |||||||
ARPA | American Rescue Plan Act of 2021 signed into law on March 11, 2021 | |||||||
ASC | Accounting Standards Codification | |||||||
ASU | Accounting Standards Update | |||||||
ASU 2016-13 | the accounting standard issued by FASB in June of 2016, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments | |||||||
Average daily debt balance | average of debt for each day in the period | |||||||
Average net receivables | average of monthly average net finance receivables (net finance receivables at the beginning and end of each month divided by two) in the period | |||||||
Base Indenture | OMFC Indenture, dated as of December 3, 2014 | |||||||
CAA | Consolidated Appropriations Act of 2021 signed into law on December 27, 2020 | |||||||
CARES Act | Coronavirus Aid, Relief, and Economic Security Act signed into law on March 27, 2020 | |||||||
C&I | Consumer and Insurance | |||||||
CDO | collateralized debt obligations | |||||||
CMBS | commercial mortgage-backed securities | |||||||
Concurrent Share Buyback | the purchase of 1,700,000 shares of OMH common stock by OMH in accordance with a July 2021 underwriting agreement, and completed on August 3, 2021 | |||||||
COVID-19 | the global outbreak of a novel strain of coronavirus | |||||||
Exchange Act | Securities Exchange Act of 1934, as amended | |||||||
FASB | Financial Accounting Standards Board | |||||||
FICO score | a credit score created by Fair Isaac Corporation | |||||||
GAAP | generally accepted accounting principles in the United States of America | |||||||
GAP | guaranteed asset protection | |||||||
Gross charge-off ratio | annualized gross charge-offs as a percentage of average net receivables | |||||||
Gross finance receivables | the unpaid principal balance of our personal loans. For precompute loans, unpaid principal balance is the gross contractual payments less the unaccreted balance of unearned finance charges | |||||||
Indenture | the Base Indenture, together with all subsequent Supplemental Indentures | |||||||
Junior Subordinated Debenture | $350 million aggregate principal amount of 60-year junior subordinated debt issued by OMFC under an indenture dated January 22, 2007, by and between OMFC and Deutsche Bank Trust Company, as trustee, and guaranteed by OMH | |||||||
Term or Abbreviation | Definition | |||||||
Managed receivables | consist of our net finance receivables and finance receivables serviced for our whole loan sale partners | |||||||
Net charge-off ratio | annualized net charge-offs as a percentage of average net receivables | |||||||
Net interest income | interest income less interest expense | |||||||
ODART | OneMain Direct Auto Receivables Trust | |||||||
OMFC | OneMain Finance Corporation (formerly Springleaf Finance Corporation) | |||||||
OMFIT | OneMain Financial Issuance Trust | |||||||
OMH | OneMain Holdings, Inc. | |||||||
OneMain | OneMain Financial Holdings, LLC, collectively with its subsidiaries | |||||||
Other securities | primarily consist of equity securities and those securities for which the fair value option was elected. Other securities recognize unrealized gains and losses in investment revenues | |||||||
Pretax capital generation | a non-GAAP financial measure used by management as a key performance measure of our segment, defined as adjusted pretax income (loss) excluding the change in allowance for finance receivable losses | |||||||
Recovery ratio | annualized recoveries on net charge-offs as a percentage of average net receivables | |||||||
RMBS | residential mortgage-backed securities | |||||||
SEC | U.S. Securities and Exchange Commission | |||||||
Securities Act | Securities Act of 1933, as amended | |||||||
Segment Accounting Basis | a basis used to report the operating results of our C&I segment and our Other components, which reflects our allocation methodologies for certain costs and excludes the impact of applying purchase accounting | |||||||
Selling Stockholder | an entity managed by affiliates of Apollo Global Management, Inc. that agreed to sell shares of OMH common stock in two secondary public offerings in July and August 2021 | |||||||
SFC | Springleaf Finance Corporation (effective as of July 1, 2020, SFC was renamed to OMFC) | |||||||
Social Bond | $750 million of 3.50% Senior Notes due 2027 issued by OMFC on June 22, 2021 and guaranteed by OMH | |||||||
SpringCastle Portfolio | loans the Company previously owned and now services on behalf of a third party | |||||||
Supplemental Indentures | collectively, the following supplements to the Base Indenture: Third Supplemental Indenture, dated as of May 15, 2017; Fourth Supplemental Indenture, dated as of December 8, 2017; Fifth Supplemental Indenture, dated as of March 12, 2018; Sixth Supplemental Indenture, dated as of May 11, 2018; Seventh Supplemental Indenture, dated as of February 22, 2019; Eighth Supplemental Indenture, dated as of May 9, 2019; Ninth Supplemental Indenture, dated as of November 7, 2019; Tenth Supplemental Indenture, dated as of May 14, 2020; Eleventh Supplemental Indenture, dated as of December 17, 2020; | |||||||
Tax Act | Public Law 115-97 amending the Internal Revenue Code of 1986 | |||||||
TDR finance receivables | troubled debt restructured finance receivables. Debt restructuring in which a concession is granted to the borrower as a result of economic or legal reasons related to the borrower’s financial difficulties | |||||||
Thirteenth Supplemental Indenture | Thirteenth Supplemental Indenture, dated as of August 11, 2021, to the Base Indenture | |||||||
Triton | Triton Insurance Company, an insurance subsidiary of OneMain Financial Holdings, LLC | |||||||
Twelfth Supplemental Indenture | Twelfth Supplemental Indenture, dated as of June 22, 2021, to the Base Indenture | |||||||
Underwriter | a third party that agreed to purchase OMH common stock from the Selling Stockholder in two secondary public offerings in July and August 2021 | |||||||
Unearned finance charges | the amount of interest that is capitalized at time of origination on a precompute loan that will be earned over the remaining contractual life of the loan | |||||||
Unsecured Notes | the notes, on a senior unsecured basis, issued by OMFC and guaranteed by OMH | |||||||
Värde | Värde Partners, Inc. |
Term or Abbreviation | Definition | |||||||
VIEs | variable interest entities | |||||||
Weighted average interest rate | annualized interest expense as a percentage of average debt | |||||||
XBRL | eXtensible Business Reporting Language | |||||||
Yield | annualized finance charges as a percentage of average net receivables | |||||||
Item 1. Financial Statements. |
(dollars in millions, except par value amount) | June 30, 2021 | December 31, 2020 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 1,787 | $ | 2,272 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,969 | 1,922 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $8.3 billion in 2021 and $8.8 billion in 2020) | 18,163 | 18,084 | ||||||||||||
Unearned insurance premium and claim reserves | (728) | (771) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $906 million in 2021 and $1.1 billion in 2020) | (2,000) | (2,269) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 15,435 | 15,044 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $494 million in 2021 and $441 million in 2020) | 507 | 451 | ||||||||||||
Goodwill | 1,437 | 1,422 | ||||||||||||
Other intangible assets | 287 | 306 | ||||||||||||
Other assets | 955 | 1,054 | ||||||||||||
Total assets | $ | 22,377 | $ | 22,471 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $7.5 billion in 2021 and $7.8 billion in 2020) | $ | 17,605 | $ | 17,800 | ||||||||||
Insurance claims and policyholder liabilities | 617 | 621 | ||||||||||||
Deferred and accrued taxes | 10 | 45 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2021 and $15 million in 2020) | 608 | 564 | ||||||||||||
Total liabilities | 18,840 | 19,030 | ||||||||||||
Contingencies (Note 12) | 0 | 0 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 133,884,043 and 134,341,724 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 1 | 1 | ||||||||||||
Additional paid-in capital | 1,661 | 1,655 | ||||||||||||
Accumulated other comprehensive income | 85 | 94 | ||||||||||||
Retained earnings | 1,825 | 1,691 | ||||||||||||
Treasury stock, at cost; 612,355 shares at June 30, 2021 and 0 shares at December 31, 2020, respectively | (35) | 0 | ||||||||||||
Total shareholders’ equity | 3,537 | 3,441 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 22,377 | $ | 22,471 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Interest income | $ | 1,071 | $ | 1,077 | $ | 2,130 | $ | 2,184 | ||||||||||||||||||||||||
Interest expense | 231 | 271 | 465 | 527 | ||||||||||||||||||||||||||||
Net interest income | 840 | 806 | 1,665 | 1,657 | ||||||||||||||||||||||||||||
Provision for finance receivable losses | 132 | 423 | 130 | 954 | ||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 708 | 383 | 1,535 | 703 | ||||||||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||||||||
Insurance | 107 | 109 | 214 | 226 | ||||||||||||||||||||||||||||
Investment | 17 | 29 | 34 | 38 | ||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (1) | 0 | (48) | 0 | ||||||||||||||||||||||||||||
Other | 27 | 10 | 41 | 25 | ||||||||||||||||||||||||||||
Total other revenues | 150 | 148 | 241 | 289 | ||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||
Salaries and benefits | 194 | 184 | 383 | 383 | ||||||||||||||||||||||||||||
Other operating expenses | 153 | 139 | 302 | 291 | ||||||||||||||||||||||||||||
Insurance policy benefits and claims | 48 | 90 | 81 | 157 | ||||||||||||||||||||||||||||
Total other expenses | 395 | 413 | 766 | 831 | ||||||||||||||||||||||||||||
Income before income taxes | 463 | 118 | 1,010 | 161 | ||||||||||||||||||||||||||||
Income taxes | 113 | 29 | 247 | 40 | ||||||||||||||||||||||||||||
Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | ||||||||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 134,255,916 | 134,316,252 | 134,330,229 | 135,112,676 | ||||||||||||||||||||||||||||
Diluted | 134,644,350 | 134,379,576 | 134,723,124 | 135,260,396 | ||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 2.61 | $ | 0.66 | $ | 5.68 | $ | 0.90 | ||||||||||||||||||||||||
Diluted | $ | 2.60 | $ | 0.66 | $ | 5.67 | $ | 0.90 |
(dollars in millions, except par value amount) | September 30, 2021 | December 31, 2020 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 821 | $ | 2,272 | ||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,963 | 1,922 | ||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $7.7 billion in 2021 and $8.8 billion in 2020) | 18,843 | 18,084 | ||||||||||||
Unearned insurance premium and claim reserves | (750) | (771) | ||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $849 million in 2021 and $1.1 billion in 2020) | (2,061) | (2,269) | ||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,032 | 15,044 | ||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $445 million in 2021 and $441 million in 2020) | 459 | 451 | ||||||||||||
Goodwill | 1,437 | 1,422 | ||||||||||||
Other intangible assets | 278 | 306 | ||||||||||||
Other assets | 973 | 1,054 | ||||||||||||
Total assets | $ | 21,963 | $ | 22,471 | ||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $6.9 billion in 2021 and $7.8 billion in 2020) | $ | 17,661 | $ | 17,800 | ||||||||||
Insurance claims and policyholder liabilities | 616 | 621 | ||||||||||||
Deferred and accrued taxes | 9 | 45 | ||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $13 million in 2021 and $15 million in 2020) | 556 | 564 | ||||||||||||
Total liabilities | 18,842 | 19,030 | ||||||||||||
Contingencies (Note 12) | 0 | 0 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, par value $0.01 per share; 2,000,000,000 shares authorized, 131,453,207 and 134,341,724 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 1 | 1 | ||||||||||||
Additional paid-in capital | 1,665 | 1,655 | ||||||||||||
Accumulated other comprehensive income | 77 | 94 | ||||||||||||
Retained earnings | 1,554 | 1,691 | ||||||||||||
Treasury stock, at cost; 3,047,844 shares at September 30, 2021 and no shares at December 31, 2020, respectively | (176) | — | ||||||||||||
Total shareholders’ equity | 3,121 | 3,441 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 21,963 | $ | 22,471 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Interest income | $ | 1,113 | $ | 1,089 | $ | 3,244 | $ | 3,273 | ||||||||||||||||||||||||
Interest expense | 237 | 255 | 703 | 781 | ||||||||||||||||||||||||||||
Net interest income | 876 | 834 | 2,541 | 2,492 | ||||||||||||||||||||||||||||
Provision for finance receivable losses | 226 | 231 | 356 | 1,186 | ||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 | ||||||||||||||||||||||||||||
Other revenues: | ||||||||||||||||||||||||||||||||
Insurance | 109 | 109 | 323 | 334 | ||||||||||||||||||||||||||||
Investment | 14 | 17 | 47 | 56 | ||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | (1) | (38) | (49) | (38) | ||||||||||||||||||||||||||||
Other | 33 | 13 | 75 | 38 | ||||||||||||||||||||||||||||
Total other revenues | 155 | 101 | 396 | 390 | ||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||
Salaries and benefits | 229 | 186 | 613 | 568 | ||||||||||||||||||||||||||||
Other operating expenses | 155 | 134 | 457 | 425 | ||||||||||||||||||||||||||||
Insurance policy benefits and claims | 45 | 43 | 125 | 201 | ||||||||||||||||||||||||||||
Total other expenses | 429 | 363 | 1,195 | 1,194 | ||||||||||||||||||||||||||||
Income before income taxes | 376 | 341 | 1,386 | 502 | ||||||||||||||||||||||||||||
Income taxes | 88 | 91 | 335 | 131 | ||||||||||||||||||||||||||||
Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||
Share Data: | ||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 132,487,234 | 134,321,929 | 133,709,146 | 134,847,170 | ||||||||||||||||||||||||||||
Diluted | 132,924,333 | 134,507,549 | 134,096,382 | 134,999,487 | ||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||
Basic | $ | 2.17 | $ | 1.86 | $ | 7.86 | $ | 2.75 | ||||||||||||||||||||||||
Diluted | $ | 2.17 | $ | 1.86 | $ | 7.84 | $ | 2.75 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 17 | 87 | (25) | 32 | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (9) | 16 | (34) | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 1 | 5 | 3 | (5) | Foreign currency translation adjustments | (2) | 2 | 1 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | (12) | 0 | 11 | 0 | Other | 1 | — | 12 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect: | Income tax effect: | Income tax effect: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (4) | (20) | 6 | (7) | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 2 | (4) | 8 | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 0 | (1) | 0 | 1 | Foreign currency translation adjustments | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 3 | 0 | (3) | 0 | Other | — | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | Other comprehensive income (loss), net of tax, before reclassification adjustments | 5 | 71 | (8) | 21 | Other comprehensive income (loss), net of tax, before reclassification adjustments | (8) | 14 | (16) | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | Reclassification adjustments included in net income, net of tax: | Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) on available-for-sale securities, net of tax | 0 | 0 | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | Net realized losses on available-for-sale securities, net of tax | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | 0 | Reclassification adjustments included in net income, net of tax | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 5 | 71 | (9) | 21 | Other comprehensive income (loss), net of tax | (8) | 14 | (17) | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 355 | $ | 160 | $ | 754 | $ | 142 | Comprehensive income | $ | 280 | $ | 264 | $ | 1,034 | $ | 406 |
OneMain Holdings, Inc. Shareholders’ Equity | OneMain Holdings, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2021 | $ | 1 | $ | 1,657 | $ | 80 | $ | 1,570 | $ | 0 | $ | 3,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2021 | Balance, July 1, 2021 | $ | 1 | $ | 1,661 | $ | 85 | $ | 1,825 | $ | (35) | $ | 3,537 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | Common stock repurchased | — | — | — | — | (35) | (35) | Common stock repurchased | — | — | — | — | (141) | (141) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 4 | — | — | — | 4 | Share-based compensation expense, net of forfeitures | — | 4 | — | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | 5 | — | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | (8) | — | — | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends * | Cash dividends * | — | — | — | (95) | — | (95) | Cash dividends * | — | — | — | (559) | — | (559) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 350 | — | 350 | Net income | — | — | — | 288 | — | 288 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 1 | $ | 1,661 | $ | 85 | $ | 1,825 | $ | (35) | $ | 3,537 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | Balance, September 30, 2021 | $ | 1 | $ | 1,665 | $ | 77 | $ | 1,554 | $ | (176) | $ | 3,121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2020 | $ | 1 | $ | 1,645 | $ | (6) | $ | 1,412 | $ | 0 | $ | 3,052 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2020 | Balance, July 1, 2020 | $ | 1 | $ | 1,648 | $ | 65 | $ | 1,457 | $ | — | $ | 3,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 3 | — | — | — | 3 | Share-based compensation expense, net of forfeitures | — | 3 | — | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | 71 | — | — | 71 | Other comprehensive income | — | — | 14 | — | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends * | Cash dividends * | — | — | — | (44) | — | (44) | Cash dividends * | — | — | — | (315) | — | (315) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 89 | — | 89 | Net income | — | — | — | 250 | — | 250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 1 | $ | 1,648 | $ | 65 | $ | 1,457 | $ | 0 | $ | 3,171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | Balance, September 30, 2020 | $ | 1 | $ | 1,651 | $ | 79 | $ | 1,392 | $ | — | $ | 3,123 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* Cash dividends declared were $0.70 per share and $0.33 per share during the three months ended June 30, 2021 and 2020, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
* Cash dividends declared were $4.20 per share and $2.33 per share during the three months ended September 30, 2021 and 2020, respectively. | * Cash dividends declared were $4.20 per share and $2.33 per share during the three months ended September 30, 2021 and 2020, respectively. |
ONEMAIN HOLDINGS, INC. AND SUBSIDIARIES | Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OneMain Holdings, Inc. Shareholders’ Equity | OneMain Holdings, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | Balance, January 1, 2021 | $ | 1 | $ | 1,655 | $ | 94 | $ | 1,691 | $ | 0 | $ | 3,441 | Balance, January 1, 2021 | $ | 1 | $ | 1,655 | $ | 94 | $ | 1,691 | $ | — | $ | 3,441 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | Common stock repurchased | — | — | — | — | (35) | (35) | Common stock repurchased | — | — | — | — | (176) | (176) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 11 | — | — | — | 11 | Share-based compensation expense, net of forfeitures | — | 16 | — | — | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | Withholding tax on share-based compensation | — | (5) | — | — | — | (5) | Withholding tax on share-based compensation | — | (6) | — | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | (9) | — | — | (9) | Other comprehensive loss | — | — | (17) | — | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends (a) | Cash dividends (a) | — | — | — | (629) | — | (629) | Cash dividends (a) | — | — | — | (1,188) | — | (1,188) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 763 | — | 763 | Net income | — | — | — | 1,051 | — | 1,051 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 1 | $ | 1,661 | $ | 85 | $ | 1,825 | $ | (35) | $ | 3,537 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | Balance, September 30, 2021 | $ | 1 | $ | 1,665 | $ | 77 | $ | 1,554 | $ | (176) | $ | 3,121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 (pre-adoption) | Balance, January 1, 2020 (pre-adoption) | $ | 1 | $ | 1,689 | $ | 44 | $ | 2,596 | $ | 0 | $ | 4,330 | Balance, January 1, 2020 (pre-adoption) | $ | 1 | $ | 1,689 | $ | 44 | $ | 2,596 | $ | — | $ | 4,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net impact of adoption of ASU 2016-13 (b) | Net impact of adoption of ASU 2016-13 (b) | — | — | (828) | — | (828) | Net impact of adoption of ASU 2016-13 (b) | — | — | — | (828) | — | (828) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 (post-adoption) | Balance, January 1, 2020 (post-adoption) | 1 | 1,689 | 44 | 1,768 | 0 | 3,502 | Balance, January 1, 2020 (post-adoption) | 1 | 1,689 | 44 | 1,768 | — | 3,502 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased (c) | Common stock repurchased (c) | — | (45) | — | — | — | (45) | Common stock repurchased (c) | — | (45) | — | — | — | (45) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 10 | — | — | — | 10 | Share-based compensation expense, net of forfeitures | — | 13 | — | — | — | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | Withholding tax on share-based compensation | — | (6) | — | — | — | (6) | Withholding tax on share-based compensation | — | (6) | — | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | 21 | — | — | 21 | Other comprehensive income | — | — | 35 | — | — | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends (a) | Cash dividends (a) | — | — | — | (432) | — | (432) | Cash dividends (a) | — | — | — | (747) | — | (747) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 121 | — | 121 | Net income | — | — | — | 371 | — | 371 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 1 | $ | 1,648 | $ | 65 | $ | 1,457 | $ | 0 | $ | 3,171 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | Balance, September 30, 2020 | $ | 1 | $ | 1,651 | $ | 79 | $ | 1,392 | $ | — | $ | 3,123 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 763 | $ | 121 | Net income | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||
Reconciling adjustments: | Reconciling adjustments: | Reconciling adjustments: | ||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 130 | 954 | Provision for finance receivable losses | 356 | 1,186 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 127 | 130 | Depreciation and amortization | 197 | 196 | ||||||||||||||||||||||||||||||||||
Deferred income tax charge (benefit) | Deferred income tax charge (benefit) | 76 | (69) | Deferred income tax charge (benefit) | 57 | (72) | ||||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | Net loss on repurchases and repayments of debt | 48 | 0 | Net loss on repurchases and repayments of debt | 49 | 38 | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | 11 | 10 | Share-based compensation expense, net of forfeitures | 16 | 13 | ||||||||||||||||||||||||||||||||||
Other | Other | (19) | 5 | Other | (34) | 5 | ||||||||||||||||||||||||||||||||||
Cash flows due to changes in other assets and other liabilities | Cash flows due to changes in other assets and other liabilities | (6) | 53 | Cash flows due to changes in other assets and other liabilities | (53) | (108) | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 1,130 | 1,204 | Net cash provided by operating activities | 1,639 | 1,629 | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||||||||||||||||||||||||||
Net principal collections (originations) of finance receivables | (717) | 64 | ||||||||||||||||||||||||||||||||||||||
Net principal originations of finance receivables | Net principal originations of finance receivables | (1,738) | (278) | |||||||||||||||||||||||||||||||||||||
Proceeds from sales of finance receivables | Proceeds from sales of finance receivables | 183 | 0 | Proceeds from sales of finance receivables | 361 | — | ||||||||||||||||||||||||||||||||||
Available-for-sale securities purchased | Available-for-sale securities purchased | (257) | (207) | Available-for-sale securities purchased | (347) | (341) | ||||||||||||||||||||||||||||||||||
Available-for-sale securities called, sold, and matured | Available-for-sale securities called, sold, and matured | 213 | 262 | Available-for-sale securities called, sold, and matured | 294 | 383 | ||||||||||||||||||||||||||||||||||
Other securities purchased | Other securities purchased | (698) | (6) | Other securities purchased | (706) | (11) | ||||||||||||||||||||||||||||||||||
Other securities called, sold, and matured | Other securities called, sold, and matured | 685 | 8 | Other securities called, sold, and matured | 691 | 11 | ||||||||||||||||||||||||||||||||||
Other, net | Other, net | (39) | (15) | Other, net | (54) | (21) | ||||||||||||||||||||||||||||||||||
Net cash provided by (used for) investing activities | (630) | 106 | ||||||||||||||||||||||||||||||||||||||
Net cash used for investing activities | Net cash used for investing activities | (1,499) | (257) | |||||||||||||||||||||||||||||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt, net of issuance costs | Proceeds from issuance of long-term debt, net of issuance costs | 1,578 | 5,456 | Proceeds from issuance of long-term debt, net of issuance costs | 2,168 | 6,445 | ||||||||||||||||||||||||||||||||||
Repayment of long-term debt | Repayment of long-term debt | (1,839) | (4,689) | Repayment of long-term debt | (2,384) | (6,212) | ||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | (628) | (431) | Cash dividends | (1,185) | (745) | ||||||||||||||||||||||||||||||||||
Common stock repurchased | Common stock repurchased | (35) | (45) | Common stock repurchased | (176) | (45) | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | Withholding tax on share-based compensation | (5) | (6) | Withholding tax on share-based compensation | (6) | (6) | ||||||||||||||||||||||||||||||||||
Net cash provided by (used for) financing activities | (929) | 285 | ||||||||||||||||||||||||||||||||||||||
Net cash used for financing activities | Net cash used for financing activities | (1,583) | (563) | |||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (429) | 1,595 | Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (1,443) | 809 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 2,294 | $ | 3,227 | Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 1,280 | $ | 2,441 | ||||||||||||||||||||||||||||||
Supplemental cash flow information | Supplemental cash flow information | Supplemental cash flow information | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,787 | $ | 2,740 | Cash and cash equivalents | $ | 821 | $ | 1,944 | ||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | Restricted cash and restricted cash equivalents | 507 | 487 | Restricted cash and restricted cash equivalents | 459 | 497 | ||||||||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 2,294 | $ | 3,227 | Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,280 | $ | 2,441 |
(dollars in millions, except par value amount) | (dollars in millions, except par value amount) | June 30, 2021 | December 31, 2020 | (dollars in millions, except par value amount) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,782 | $ | 2,272 | Cash and cash equivalents | $ | 798 | $ | 2,272 | ||||||||||||||||||
Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,969 | 1,922 | Investment securities (includes available-for-sale securities with a fair value and an amortized cost basis of $1.9 billion and $1.8 billion in 2021, respectively, and $1.8 billion and $1.7 billion in 2020, respectively) | 1,963 | 1,922 | ||||||||||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $8.3 billion in 2021 and $8.8 billion in 2020) | 18,163 | 18,084 | ||||||||||||||||||||||||||
Net finance receivables (includes loans of consolidated VIEs of $7.7 billion in 2021 and $8.8 billion in 2020) | Net finance receivables (includes loans of consolidated VIEs of $7.7 billion in 2021 and $8.8 billion in 2020) | 18,843 | 18,084 | |||||||||||||||||||||||||
Unearned insurance premium and claim reserves | Unearned insurance premium and claim reserves | (728) | (771) | Unearned insurance premium and claim reserves | (750) | (771) | ||||||||||||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $906 million in 2021 and $1.1 billion in 2020) | (2,000) | (2,269) | ||||||||||||||||||||||||||
Allowance for finance receivable losses (includes allowance of consolidated VIEs of $849 million in 2021 and $1.1 billion in 2020) | Allowance for finance receivable losses (includes allowance of consolidated VIEs of $849 million in 2021 and $1.1 billion in 2020) | (2,061) | (2,269) | |||||||||||||||||||||||||
Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 15,435 | 15,044 | Net finance receivables, less unearned insurance premium and claim reserves and allowance for finance receivable losses | 16,032 | 15,044 | ||||||||||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $494 million in 2021 and $441 million in 2020) | 507 | 451 | ||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $445 million in 2021 and $441 million in 2020) | Restricted cash and restricted cash equivalents (includes restricted cash and restricted cash equivalents of consolidated VIEs of $445 million in 2021 and $441 million in 2020) | 459 | 451 | |||||||||||||||||||||||||
Goodwill | Goodwill | 1,437 | 1,422 | Goodwill | 1,437 | 1,422 | ||||||||||||||||||||||
Other intangible assets | Other intangible assets | 287 | 306 | Other intangible assets | 278 | 306 | ||||||||||||||||||||||
Other assets | Other assets | 954 | 1,054 | Other assets | 972 | 1,054 | ||||||||||||||||||||||
Total assets | Total assets | $ | 22,371 | $ | 22,471 | Total assets | $ | 21,939 | $ | 22,471 | ||||||||||||||||||
Liabilities and Shareholder's Equity | Liabilities and Shareholder's Equity | Liabilities and Shareholder's Equity | ||||||||||||||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $7.5 billion in 2021 and $7.8 billion in 2020) | $ | 17,605 | $ | 17,800 | ||||||||||||||||||||||||
Long-term debt (includes debt of consolidated VIEs of $6.9 billion in 2021 and $7.8 billion in 2020) | Long-term debt (includes debt of consolidated VIEs of $6.9 billion in 2021 and $7.8 billion in 2020) | $ | 17,661 | $ | 17,800 | |||||||||||||||||||||||
Insurance claims and policyholder liabilities | Insurance claims and policyholder liabilities | 617 | 621 | Insurance claims and policyholder liabilities | 616 | 621 | ||||||||||||||||||||||
Deferred and accrued taxes | Deferred and accrued taxes | 12 | 47 | Deferred and accrued taxes | 10 | 47 | ||||||||||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $14 million in 2021 and $15 million in 2020) | 607 | 563 | ||||||||||||||||||||||||||
Other liabilities (includes other liabilities of consolidated VIEs of $13 million in 2021 and $15 million in 2020) | Other liabilities (includes other liabilities of consolidated VIEs of $13 million in 2021 and $15 million in 2020) | 556 | 563 | |||||||||||||||||||||||||
Total liabilities | Total liabilities | 18,841 | 19,031 | Total liabilities | 18,843 | 19,031 | ||||||||||||||||||||||
Contingencies (Note 12) | Contingencies (Note 12) | 0 | 0 | Contingencies (Note 12) | 0 | 0 | ||||||||||||||||||||||
Shareholder's equity: | Shareholder's equity: | Shareholder's equity: | ||||||||||||||||||||||||||
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 5 | 5 | ||||||||||||||||||||||||||
Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at September 30, 2021 and December 31, 2020 | Common stock, par value $0.50 per share; 25,000,000 shares authorized, 10,160,021 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 5 | 5 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 1,905 | 1,899 | Additional paid-in capital | 1,909 | 1,899 | ||||||||||||||||||||||
Accumulated other comprehensive income | Accumulated other comprehensive income | 85 | 94 | Accumulated other comprehensive income | 77 | 94 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 1,535 | 1,442 | Retained earnings | 1,105 | 1,442 | ||||||||||||||||||||||
Total shareholder's equity | Total shareholder's equity | 3,530 | 3,440 | Total shareholder's equity | 3,096 | 3,440 | ||||||||||||||||||||||
Total liabilities and shareholder's equity | Total liabilities and shareholder's equity | $ | 22,371 | $ | 22,471 | Total liabilities and shareholder's equity | $ | 21,939 | $ | 22,471 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 1,071 | $ | 1,077 | $ | 2,130 | $ | 2,184 | Interest income | $ | 1,113 | $ | 1,089 | $ | 3,244 | $ | 3,273 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 231 | 271 | 465 | 527 | Interest expense | 237 | 255 | 703 | 781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 840 | 806 | 1,665 | 1,657 | Net interest income | 876 | 834 | 2,541 | 2,492 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 132 | 423 | 130 | 954 | Provision for finance receivable losses | 226 | 231 | 356 | 1,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 708 | 383 | 1,535 | 703 | Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues: | Other revenues: | Other revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 107 | 109 | 214 | 226 | Insurance | 109 | 109 | 323 | 334 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investment | 17 | 29 | 34 | 38 | Investment | 14 | 17 | 47 | 56 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | Net loss on repurchases and repayments of debt | (1) | 0 | (48) | 0 | Net loss on repurchases and repayments of debt | (1) | (38) | (49) | (38) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 27 | 10 | 41 | 25 | Other | 33 | 13 | 75 | 38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other revenues | Total other revenues | 150 | 148 | 241 | 289 | Total other revenues | 155 | 101 | 396 | 390 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses: | Other expenses: | Other expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 194 | 184 | 383 | 383 | Salaries and benefits | 229 | 186 | 613 | 568 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses | Other operating expenses | 153 | 139 | 302 | 291 | Other operating expenses | 155 | 134 | 457 | 425 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance policy benefits and claims | Insurance policy benefits and claims | 48 | 90 | 81 | 157 | Insurance policy benefits and claims | 45 | 43 | 125 | 201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other expenses | Total other expenses | 395 | 413 | 766 | 831 | Total other expenses | 429 | 363 | 1,195 | 1,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 463 | 118 | 1,010 | 161 | Income before income taxes | 376 | 341 | 1,386 | 502 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 113 | 29 | 247 | 40 | Income taxes | 88 | 91 | 335 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 17 | 87 | (25) | 32 | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (9) | 16 | (34) | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 1 | 5 | 3 | (5) | Foreign currency translation adjustments | (2) | 2 | 1 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | (12) | 0 | 11 | 0 | Other | 1 | — | 12 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect: | Income tax effect: | Income tax effect: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | (4) | (20) | 6 | (7) | Net change in unrealized gains (losses) on non-credit impaired available-for-sale securities | 2 | (4) | 8 | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | Foreign currency translation adjustments | 0 | (1) | 0 | 1 | Foreign currency translation adjustments | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 3 | 0 | (3) | 0 | Other | — | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax, before reclassification adjustments | Other comprehensive income (loss), net of tax, before reclassification adjustments | 5 | 71 | (8) | 21 | Other comprehensive income (loss), net of tax, before reclassification adjustments | (8) | 14 | (16) | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax: | Reclassification adjustments included in net income, net of tax: | Reclassification adjustments included in net income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized gains (losses) on available-for-sale securities, net of tax | 0 | 0 | (1) | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized losses on available-for-sale securities, net of tax | Net realized losses on available-for-sale securities, net of tax | — | — | (1) | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments included in net income, net of tax | Reclassification adjustments included in net income, net of tax | 0 | 0 | (1) | 0 | Reclassification adjustments included in net income, net of tax | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | Other comprehensive income (loss), net of tax | 5 | 71 | (9) | 21 | Other comprehensive income (loss), net of tax | (8) | 14 | (17) | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | $ | 355 | $ | 160 | $ | 754 | $ | 142 | Comprehensive income | $ | 280 | $ | 264 | $ | 1,034 | $ | 406 |
OneMain Finance Corporation Shareholder's Equity | OneMain Finance Corporation Shareholder's Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholder’s Equity | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholder’s Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2021 | $ | 5 | $ | 1,901 | $ | 80 | $ | 1,320 | $ | 3,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2021 | Balance, July 1, 2021 | $ | 5 | $ | 1,905 | $ | 85 | $ | 1,535 | $ | 3,530 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | (8) | — | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | — | — | — | (718) | (718) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 288 | 288 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | Balance, September 30, 2021 | $ | 5 | $ | 1,909 | $ | 77 | $ | 1,105 | $ | 3,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2020 | Balance, July 1, 2020 | $ | 5 | $ | 1,892 | $ | 65 | $ | 1,208 | $ | 3,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 4 | — | — | 4 | Share-based compensation expense, net of forfeitures | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | 5 | — | 5 | Other comprehensive income | — | — | 14 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | — | — | — | (135) | (135) | Cash dividends | — | — | — | (315) | (315) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 350 | 350 | Net income | — | — | — | 250 | 250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 5 | $ | 1,905 | $ | 85 | $ | 1,535 | $ | 3,530 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | Balance, September 30, 2020 | $ | 5 | $ | 1,895 | $ | 79 | $ | 1,143 | $ | 3,122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, April 1, 2020 | $ | 5 | $ | 1,889 | $ | (6) | $ | 1,159 | $ | 3,047 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | — | 3 | — | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | 71 | — | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | — | — | — | (40) | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 89 | 89 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 5 | $ | 1,892 | $ | 65 | $ | 1,208 | $ | 3,170 |
ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES | ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES | ONEMAIN FINANCE CORPORATION AND SUBSIDIARIES | Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OneMain Finance Corporation Shareholder's Equity | OneMain Finance Corporation Shareholder's Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | (dollars in millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | Balance, January 1, 2021 | $ | 5 | $ | 1,899 | $ | 94 | $ | 1,442 | $ | 3,440 | Balance, January 1, 2021 | $ | 5 | $ | 1,899 | $ | 94 | $ | 1,442 | $ | 3,440 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 11 | — | — | 11 | Share-based compensation expense, net of forfeitures | — | 16 | — | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | Withholding tax on share-based compensation | — | (5) | — | — | (5) | Withholding tax on share-based compensation | — | (6) | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | (9) | — | (9) | Other comprehensive loss | — | — | (17) | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | — | — | — | (670) | (670) | Cash dividends | — | — | — | (1,388) | (1,388) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 763 | 763 | Net income | — | — | — | 1,051 | 1,051 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 5 | $ | 1,905 | $ | 85 | $ | 1,535 | $ | 3,530 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | Balance, September 30, 2021 | $ | 5 | $ | 1,909 | $ | 77 | $ | 1,105 | $ | 3,096 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 (pre-adoption) | Balance, January 1, 2020 (pre-adoption) | $ | 5 | $ | 1,888 | $ | 44 | $ | 2,388 | $ | 4,325 | Balance, January 1, 2020 (pre-adoption) | $ | 5 | $ | 1,888 | $ | 44 | $ | 2,388 | $ | 4,325 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net impact of adoption of ASU 2016-13 * | Net impact of adoption of ASU 2016-13 * | — | — | — | (828) | (828) | Net impact of adoption of ASU 2016-13 * | — | — | — | (828) | (828) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2020 (post-adoption) | Balance, January 1, 2020 (post-adoption) | 5 | 1,888 | 44 | 1,560 | 3,497 | Balance, January 1, 2020 (post-adoption) | 5 | 1,888 | 44 | 1,560 | 3,497 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | — | 10 | — | — | 10 | Share-based compensation expense, net of forfeitures | — | 13 | — | — | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Withholding tax on shared-based compensation | Withholding tax on shared-based compensation | — | (6) | — | — | (6) | Withholding tax on shared-based compensation | — | (6) | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | 21 | — | 21 | Other comprehensive income | — | — | 35 | — | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | — | — | — | (473) | (473) | Cash dividends | — | — | — | (788) | (788) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | 121 | 121 | Net income | — | — | — | 371 | 371 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 5 | $ | 1,892 | $ | 65 | $ | 1,208 | $ | 3,170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2020 | Balance, September 30, 2020 | $ | 5 | $ | 1,895 | $ | 79 | $ | 1,143 | $ | 3,122 |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 763 | $ | 121 | Net income | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||
Reconciling adjustments: | Reconciling adjustments: | Reconciling adjustments: | ||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 130 | 954 | Provision for finance receivable losses | 356 | 1,186 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 127 | 130 | Depreciation and amortization | 197 | 196 | ||||||||||||||||||||||||||||||||||
Deferred income tax charge (benefit) | Deferred income tax charge (benefit) | 76 | (69) | Deferred income tax charge (benefit) | 57 | (72) | ||||||||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | Net loss on repurchases and repayments of debt | 48 | 0 | Net loss on repurchases and repayments of debt | 49 | 38 | ||||||||||||||||||||||||||||||||||
Share-based compensation expense, net of forfeitures | Share-based compensation expense, net of forfeitures | 11 | 10 | Share-based compensation expense, net of forfeitures | 16 | 13 | ||||||||||||||||||||||||||||||||||
Other | Other | (19) | 5 | Other | (34) | 5 | ||||||||||||||||||||||||||||||||||
Cash flows due to changes in other assets and other liabilities | Cash flows due to changes in other assets and other liabilities | (4) | 49 | Cash flows due to changes in other assets and other liabilities | (50) | (112) | ||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 1,132 | 1,200 | Net cash provided by operating activities | 1,642 | 1,625 | ||||||||||||||||||||||||||||||||||
Cash flows from investing activities | Cash flows from investing activities | Cash flows from investing activities | ||||||||||||||||||||||||||||||||||||||
Net principal collections (originations) of finance receivables | (717) | 64 | ||||||||||||||||||||||||||||||||||||||
Net principal originations of finance receivables | Net principal originations of finance receivables | (1,738) | (278) | |||||||||||||||||||||||||||||||||||||
Proceeds from sales of finance receivables | Proceeds from sales of finance receivables | 183 | 0 | Proceeds from sales of finance receivables | 361 | — | ||||||||||||||||||||||||||||||||||
Available-for-sale securities purchased | Available-for-sale securities purchased | (257) | (207) | Available-for-sale securities purchased | (347) | (341) | ||||||||||||||||||||||||||||||||||
Available-for-sale securities called, sold, and matured | Available-for-sale securities called, sold, and matured | 213 | 262 | Available-for-sale securities called, sold, and matured | 294 | 383 | ||||||||||||||||||||||||||||||||||
Other securities purchased | Other securities purchased | (698) | (6) | Other securities purchased | (706) | (11) | ||||||||||||||||||||||||||||||||||
Other securities called, sold, and matured | Other securities called, sold, and matured | 685 | 8 | Other securities called, sold, and matured | 691 | 11 | ||||||||||||||||||||||||||||||||||
Other, net | Other, net | (39) | (15) | Other, net | (53) | (21) | ||||||||||||||||||||||||||||||||||
Net cash provided by (used for) investing activities | (630) | 106 | ||||||||||||||||||||||||||||||||||||||
Net cash used for investing activities | Net cash used for investing activities | (1,498) | (257) | |||||||||||||||||||||||||||||||||||||
Cash flows from financing activities | Cash flows from financing activities | Cash flows from financing activities | ||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt, net of issuance costs | Proceeds from issuance of long-term debt, net of issuance costs | 1,578 | 5,456 | Proceeds from issuance of long-term debt, net of issuance costs | 2,168 | 6,445 | ||||||||||||||||||||||||||||||||||
Repayment of long-term debt | Repayment of long-term debt | (1,839) | (4,689) | Repayment of long-term debt | (2,384) | (6,212) | ||||||||||||||||||||||||||||||||||
Cash dividends | Cash dividends | (670) | (472) | Cash dividends | (1,388) | (786) | ||||||||||||||||||||||||||||||||||
Withholding tax on share-based compensation | Withholding tax on share-based compensation | (5) | (6) | Withholding tax on share-based compensation | (6) | (6) | ||||||||||||||||||||||||||||||||||
Net cash provided by (used for) financing activities | (936) | 289 | ||||||||||||||||||||||||||||||||||||||
Net cash used for financing activities | Net cash used for financing activities | (1,610) | (559) | |||||||||||||||||||||||||||||||||||||
Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (434) | 1,595 | Net change in cash and cash equivalents and restricted cash and restricted cash equivalents | (1,466) | 809 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | Cash and cash equivalents and restricted cash and restricted cash equivalents at beginning of period | 2,723 | 1,632 | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 2,289 | $ | 3,227 | Cash and cash equivalents and restricted cash and restricted cash equivalents at end of period | $ | 1,257 | $ | 2,441 | ||||||||||||||||||||||||||||||
Supplemental cash flow information | Supplemental cash flow information | Supplemental cash flow information | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,782 | $ | 2,740 | Cash and cash equivalents | $ | 798 | $ | 1,944 | ||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | Restricted cash and restricted cash equivalents | 507 | 487 | Restricted cash and restricted cash equivalents | 459 | 497 | ||||||||||||||||||||||||||||||||||
Total cash and cash equivalents and restricted cash and restricted cash equivalents | Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 2,289 | $ | 3,227 | Total cash and cash equivalents and restricted cash and restricted cash equivalents | $ | 1,257 | $ | 2,441 |
1. Business and Basis of Operations |
2. Recent Accounting Pronouncements |
3. Finance Receivables |
(dollars in millions) | (dollars in millions) | June 30, 2021 | December 31, 2020 | (dollars in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Gross finance receivables * | Gross finance receivables * | $ | 17,947 | $ | 17,860 | Gross finance receivables * | $ | 18,610 | $ | 17,860 | ||||||||||||||||||
Unearned points and fees | Unearned points and fees | (217) | (225) | Unearned points and fees | (226) | (225) | ||||||||||||||||||||||
Accrued finance charges | Accrued finance charges | 273 | 299 | Accrued finance charges | 282 | 299 | ||||||||||||||||||||||
Deferred origination costs | Deferred origination costs | 160 | 150 | Deferred origination costs | 177 | 150 | ||||||||||||||||||||||
Total | Total | $ | 18,163 | $ | 18,084 | Total | $ | 18,843 | $ | 18,084 |
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | (dollars in millions) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | Performing | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | $ | 5,561 | $ | 6,101 | $ | 4,025 | $ | 1,364 | $ | 372 | $ | 174 | $ | 17,597 | Current | $ | 8,435 | $ | 4,947 | $ | 3,283 | $ | 1,063 | $ | 270 | $ | 135 | $ | 18,133 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | 18 | 79 | 64 | 25 | 9 | 6 | 201 | 30-59 days past due | 73 | 84 | 64 | 23 | 8 | 6 | 258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | 60-89 days past due | 8 | 50 | 38 | 14 | 5 | 3 | 118 | 60-89 days past due | 38 | 57 | 40 | 14 | 5 | 3 | 157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total performing | Total performing | 5,587 | 6,230 | 4,127 | 1,403 | 386 | 183 | 17,916 | Total performing | 8,546 | 5,088 | 3,387 | 1,100 | 283 | 144 | 18,548 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | Nonperforming (Nonaccrual) | Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90-179 days past due | 90-179 days past due | 4 | 101 | 88 | 31 | 10 | 6 | 240 | 90-179 days past due | 36 | 122 | 89 | 30 | 10 | 6 | 293 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
180 days or more past due | 180 days or more past due | 0 | 3 | 3 | 1 | 0 | 0 | 7 | 180 days or more past due | — | 1 | 1 | — | — | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total nonperforming | Total nonperforming | 4 | 104 | 91 | 32 | 10 | 6 | 247 | Total nonperforming | 36 | 123 | 90 | 30 | 10 | 6 | 295 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 5,591 | $ | 6,334 | $ | 4,218 | $ | 1,435 | $ | 396 | $ | 189 | $ | 18,163 | Total | $ | 8,582 | $ | 5,211 | $ | 3,477 | $ | 1,130 | $ | 293 | $ | 150 | $ | 18,843 |
(dollars in millions) | (dollars in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | (dollars in millions) | 2020 | 2019 | 2018 | 2017 | 2016 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | Performing | Performing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | $ | 8,659 | $ | 5,691 | $ | 2,064 | $ | 651 | $ | 184 | $ | 106 | $ | 17,355 | Current | $ | 8,659 | $ | 5,691 | $ | 2,064 | $ | 651 | $ | 184 | $ | 106 | $ | 17,355 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | 72 | 106 | 44 | 18 | 6 | 5 | 251 | 30-59 days past due | 72 | 106 | 44 | 18 | 6 | 5 | 251 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
60-89 days past due | 60-89 days past due | 44 | 72 | 28 | 11 | 4 | 3 | 162 | 60-89 days past due | 44 | 72 | 28 | 11 | 4 | 3 | 162 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total performing | Total performing | 8,775 | 5,869 | 2,136 | 680 | 194 | 114 | 17,768 | Total performing | 8,775 | 5,869 | 2,136 | 680 | 194 | 114 | 17,768 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (Nonaccrual) | Nonperforming (Nonaccrual) | Nonperforming (Nonaccrual) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
90-179 days past due | 90-179 days past due | 62 | 154 | 59 | 22 | 8 | 5 | 310 | 90-179 days past due | 62 | 154 | 59 | 22 | 8 | 5 | 310 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
180 days or more past due | 180 days or more past due | 1 | 3 | 1 | 1 | 0 | 0 | 6 | 180 days or more past due | 1 | 3 | 1 | 1 | — | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total nonperforming | Total nonperforming | 63 | 157 | 60 | 23 | 8 | 5 | 316 | Total nonperforming | 63 | 157 | 60 | 23 | 8 | 5 | 316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 8,838 | $ | 6,026 | $ | 2,196 | $ | 703 | $ | 202 | $ | 119 | $ | 18,084 | Total | $ | 8,838 | $ | 6,026 | $ | 2,196 | $ | 703 | $ | 202 | $ | 119 | $ | 18,084 |
(dollars in millions) | (dollars in millions) | June 30, 2021 | December 31, 2020 | (dollars in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
TDR gross finance receivables | TDR gross finance receivables | $ | 676 | $ | 689 | TDR gross finance receivables | $ | 652 | $ | 689 | ||||||||||||||||||
TDR net finance receivables * | TDR net finance receivables * | 680 | 691 | TDR net finance receivables * | 656 | 691 | ||||||||||||||||||||||
Allowance for TDR finance receivable losses | Allowance for TDR finance receivable losses | 305 | 314 | Allowance for TDR finance receivable losses | 281 | 314 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
TDR average net finance receivables | TDR average net finance receivables | $ | 686 | $ | 698 | $ | 688 | 687 | TDR average net finance receivables | $ | 665 | $ | 701 | $ | 681 | 692 | ||||||||||||||||||||||||||||||||||||
TDR finance charges recognized | TDR finance charges recognized | 14 | 13 | 27 | 25 | TDR finance charges recognized | 13 | 13 | 40 | 38 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-modification TDR net finance receivables | Pre-modification TDR net finance receivables | $ | 112 | $ | 129 | $ | 228 | $ | 287 | Pre-modification TDR net finance receivables | $ | 105 | $ | 105 | $ | 332 | $ | 392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Post-modification TDR net finance receivables: | Post-modification TDR net finance receivables: | Post-modification TDR net finance receivables: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rate reduction | Rate reduction | 79 | 75 | 156 | 175 | Rate reduction | 72 | 67 | 228 | 242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other * | Other * | 33 | 54 | 71 | 112 | Other * | 33 | 38 | 104 | 150 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total post-modification TDR net finance receivables | Total post-modification TDR net finance receivables | $ | 112 | $ | 129 | $ | 227 | $ | 287 | Total post-modification TDR net finance receivables | $ | 105 | $ | 105 | $ | 332 | $ | 392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of TDR accounts | Number of TDR accounts | 13,691 | 17,381 | 28,199 | 39,199 | Number of TDR accounts | 12,528 | 13,581 | 40,727 | 52,780 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TDR net finance receivables * | TDR net finance receivables * | $ | 27 | $ | 26 | $ | 56 | $ | 57 | TDR net finance receivables * | $ | 31 | $ | 20 | $ | 88 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of TDR accounts | Number of TDR accounts | 3,743 | 3,787 | 7,926 | 8,339 | Number of TDR accounts | 4,221 | 2,947 | 12,147 | 11,286 |
4. Allowance for Finance Receivable Losses |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 2,062 | $ | 2,182 | $ | 2,269 | $ | 829 | Balance at beginning of period | $ | 2,000 | $ | 2,324 | $ | 2,269 | $ | 829 | ||||||||||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASU 2016-13 * | Impact of adoption of ASU 2016-13 * | — | — | — | 1,118 | Impact of adoption of ASU 2016-13 * | — | — | — | 1,118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 132 | 423 | 130 | 954 | Provision for finance receivable losses | 226 | 231 | 356 | 1,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | (252) | (321) | (507) | (657) | Charge-offs | (223) | (274) | (730) | (931) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 58 | 40 | 108 | 80 | Recoveries | 58 | 43 | 166 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 2,000 | $ | 2,324 | $ | 2,000 | $ | 2,324 | Balance at end of period | $ | 2,061 | $ | 2,324 | $ | 2,061 | $ | 2,324 |
(dollars in millions) | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
Allowance for finance receivable losses: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,695 | $ | 1,955 | |||||||||||||||||||||||||
TDR finance receivables | 305 | 314 | |||||||||||||||||||||||||||
Total | $ | 2,000 | $ | 2,269 | |||||||||||||||||||||||||
Finance receivables: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 17,483 | $ | 17,393 | |||||||||||||||||||||||||
TDR net finance receivables | 680 | 691 | |||||||||||||||||||||||||||
Total | $ | 18,163 | $ | 18,084 | |||||||||||||||||||||||||
Allowance for finance receivable losses as a percentage of finance receivables | 11.01 | % | 12.55 | % | |||||||||||||||||||||||||
(dollars in millions) | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||
Allowance for finance receivable losses: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,780 | $ | 1,955 | |||||||||||||||||||||||||
TDR finance receivables | 281 | 314 | |||||||||||||||||||||||||||
Total | $ | 2,061 | $ | 2,269 | |||||||||||||||||||||||||
Finance receivables: | |||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 18,187 | $ | 17,393 | |||||||||||||||||||||||||
TDR net finance receivables | 656 | 691 | |||||||||||||||||||||||||||
Total | $ | 18,843 | $ | 18,084 | |||||||||||||||||||||||||
Allowance for finance receivable losses as a percentage of finance receivables | 10.94 | % | 12.55 | % | |||||||||||||||||||||||||
5. Investment Securities |
(dollars in millions) | (dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | (dollars in millions) | Cost/ Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021* | September 30, 2021* | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | Fixed maturity available-for-sale securities: | Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | U.S. government and government sponsored entities | $ | 13 | $ | 0 | $ | 0 | $ | 13 | U.S. government and government sponsored entities | $ | 14 | $ | — | $ | — | $ | 14 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | 82 | 4 | 0 | 86 | Obligations of states, municipalities, and political subdivisions | 80 | 4 | — | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Commercial paper | 37 | 0 | 0 | 37 | Commercial paper | 28 | — | — | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 143 | 6 | 0 | 149 | Non-U.S. government and government sponsored entities | 143 | 5 | — | 148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 1,187 | 78 | (2) | 1,263 | Corporate debt | 1,213 | 72 | (3) | 1,282 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 189 | 4 | (1) | 192 | RMBS | 177 | 4 | (1) | 180 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 52 | 2 | 0 | 54 | CMBS | 50 | 2 | — | 52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 81 | 2 | (1) | 82 | CDO/ABS | 83 | 1 | — | 84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,784 | $ | 96 | $ | (4) | $ | 1,876 | Total | $ | 1,788 | $ | 88 | $ | (4) | $ | 1,872 | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020* | December 31, 2020* | December 31, 2020* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity available-for-sale securities: | Fixed maturity available-for-sale securities: | Fixed maturity available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | U.S. government and government sponsored entities | $ | 12 | $ | 0 | $ | 0 | $ | 12 | U.S. government and government sponsored entities | $ | 12 | $ | — | $ | — | $ | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | 87 | 5 | 0 | 92 | Obligations of states, municipalities, and political subdivisions | 87 | 5 | — | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Commercial paper | 28 | 0 | 0 | 28 | Commercial paper | 28 | — | — | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 137 | 9 | 0 | 146 | Non-U.S. government and government sponsored entities | 137 | 9 | — | 146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 1,124 | 95 | (1) | 1,218 | Corporate debt | 1,124 | 95 | (1) | 1,218 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 208 | 7 | 0 | 215 | RMBS | 208 | 7 | — | 215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 55 | 3 | 0 | 58 | CMBS | 55 | 3 | — | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 77 | 2 | (1) | 78 | CDO/ABS | 77 | 2 | (1) | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,728 | $ | 121 | $ | (2) | $ | 1,847 | Total | $ | 1,728 | $ | 121 | $ | (2) | $ | 1,847 |
Less Than 12 Months | 12 Months or Longer | Total | Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | (dollars in millions) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | U.S. government and government sponsored entities | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 1 | $ | 0 | U.S. government and government sponsored entities | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | 4 | 0 | 0 | 0 | 4 | 0 | Obligations of states, municipalities, and political subdivisions | 7 | — | — | — | 7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Commercial paper | 3 | 0 | 0 | 0 | 3 | 0 | Commercial paper | 1 | — | — | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 5 | 0 | 1 | 0 | 6 | 0 | Non-U.S. government and government sponsored entities | 21 | — | 1 | — | 22 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 99 | (2) | 11 | 0 | 110 | (2) | Corporate debt | 153 | (3) | 8 | — | 161 | (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 47 | (1) | 1 | 0 | 48 | (1) | RMBS | 66 | (1) | — | — | 66 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 16 | (1) | 4 | 0 | 20 | (1) | CDO/ABS | 19 | — | 3 | — | 22 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 175 | $ | (4) | $ | 17 | $ | 0 | $ | 192 | $ | (4) | Total | $ | 268 | $ | (4) | $ | 12 | $ | — | $ | 280 | $ | (4) | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 2 | $ | 0 | Obligations of states, municipalities, and political subdivisions | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Commercial paper | 19 | 0 | 0 | 0 | 19 | 0 | Commercial paper | 19 | — | — | — | 19 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 1 | 0 | 0 | 0 | 1 | 0 | Non-U.S. government and government sponsored entities | 1 | — | — | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 45 | (1) | 8 | 0 | 53 | (1) | Corporate debt | 45 | (1) | 8 | — | 53 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | Mortgage-backed, asset-backed, and collateralized: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 8 | 0 | 0 | 0 | 8 | 0 | CMBS | 8 | — | — | — | 8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 17 | (1) | 0 | 0 | 17 | (1) | CDO/ABS | 17 | (1) | — | — | 17 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 92 | $ | (2) | $ | 8 | $ | 0 | $ | 100 | $ | (2) | Total | $ | 92 | $ | (2) | $ | 8 | $ | — | $ | 100 | $ | (2) |
(dollars in millions) | (dollars in millions) | Fair Value | Amortized Cost | (dollars in millions) | Fair Value | Amortized Cost | ||||||||||||||||||||||
Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | Fixed maturities, excluding mortgage-backed, asset-backed, and collateralized securities: | ||||||||||||||||||||||||||
Due in 1 year or less | Due in 1 year or less | $ | 153 | $ | 153 | Due in 1 year or less | $ | 146 | $ | 145 | ||||||||||||||||||
Due after 1 year through 5 years | Due after 1 year through 5 years | 587 | 555 | Due after 1 year through 5 years | 577 | 548 | ||||||||||||||||||||||
Due after 5 years through 10 years | Due after 5 years through 10 years | 627 | 591 | Due after 5 years through 10 years | 658 | 626 | ||||||||||||||||||||||
Due after 10 years | Due after 10 years | 181 | 163 | Due after 10 years | 175 | 159 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized securities | Mortgage-backed, asset-backed, and collateralized securities | 328 | 322 | Mortgage-backed, asset-backed, and collateralized securities | 316 | 310 | ||||||||||||||||||||||
Total | Total | $ | 1,876 | $ | 1,784 | Total | $ | 1,872 | $ | 1,788 |
(dollars in millions) | (dollars in millions) | June 30, 2021 | December 31, 2020 | (dollars in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Fixed maturity other securities: | Fixed maturity other securities: | Fixed maturity other securities: | ||||||||||||||||||||||||||
Bonds | Bonds | Bonds | ||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | $ | 1 | $ | 1 | Non-U.S. government and government sponsored entities | $ | — | $ | 1 | ||||||||||||||||||
Corporate debt | Corporate debt | 12 | 17 | Corporate debt | 11 | 17 | ||||||||||||||||||||||
Mortgage-backed, asset-backed, and collateralized bonds | Mortgage-backed, asset-backed, and collateralized bonds | 30 | 17 | Mortgage-backed, asset-backed, and collateralized bonds | 28 | 17 | ||||||||||||||||||||||
Total bonds | Total bonds | 43 | 35 | Total bonds | 39 | 35 | ||||||||||||||||||||||
Preferred stock * | Preferred stock * | 19 | 13 | Preferred stock * | 22 | 13 | ||||||||||||||||||||||
Common stock * | Common stock * | 31 | 27 | Common stock * | 30 | 27 | ||||||||||||||||||||||
Total | Total | $ | 93 | $ | 75 | Total | $ | 91 | $ | 75 |
6. Long-term Debt |
Senior Debt | Senior Debt | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Securitizations | Unsecured Notes (a) | Junior Subordinated Debt (a) | Total | (dollars in millions) | Securitizations | Unsecured Notes (a) | Junior Subordinated Debt (a) | Total | ||||||||||||||||||||||||||||||||||||||||||
Interest rates (b) | Interest rates (b) | 0.77% - 6.94% | 3.50% - 8.88% | 1.93 | % | Interest rates (b) | 0.81% - 6.94% | 3.50% - 8.88% | 1.88 | % | ||||||||||||||||||||||||||||||||||||||||||
Remainder of 2021 | Remainder of 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | Remainder of 2021 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
2022 | 2022 | 0 | 992 | 0 | 992 | 2022 | — | 992 | — | 992 | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2023 | 0 | 1,175 | 0 | 1,175 | 2023 | — | 1,175 | — | 1,175 | ||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 0 | 1,300 | 0 | 1,300 | 2024 | — | 1,300 | — | 1,300 | ||||||||||||||||||||||||||||||||||||||||||
2025 | 2025 | 0 | 1,835 | 0 | 1,835 | 2025 | — | 1,835 | — | 1,835 | ||||||||||||||||||||||||||||||||||||||||||
2026-2067 | 2026-2067 | 0 | 4,750 | 350 | 5,100 | 2026-2067 | — | 5,349 | 350 | 5,699 | ||||||||||||||||||||||||||||||||||||||||||
Securitizations (c) | Securitizations (c) | 7,499 | 0 | 0 | 7,499 | Securitizations (c) | 6,955 | — | — | 6,955 | ||||||||||||||||||||||||||||||||||||||||||
Total principal maturities | Total principal maturities | $ | 7,499 | $ | 10,052 | $ | 350 | $ | 17,901 | Total principal maturities | $ | 6,955 | $ | 10,651 | $ | 350 | $ | 17,956 | ||||||||||||||||||||||||||||||||||
Total carrying amount | Total carrying amount | $ | 7,466 | $ | 9,967 | $ | 172 | $ | 17,605 | Total carrying amount | $ | 6,924 | $ | 10,565 | $ | 172 | $ | 17,661 | ||||||||||||||||||||||||||||||||||
Debt issuance costs (d) | Debt issuance costs (d) | $ | (30) | $ | (88) | $ | 0 | $ | (118) | Debt issuance costs (d) | $ | (28) | $ | (89) | $ | — | $ | (117) |
7. Variable Interest Entities |
(dollars in millions) | (dollars in millions) | June 30, 2021 | December 31, 2020 | (dollars in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2 | $ | 2 | Cash and cash equivalents | $ | 2 | $ | 2 | ||||||||||||||||||
Net finance receivables | Net finance receivables | 8,305 | 8,772 | Net finance receivables | 7,731 | 8,772 | ||||||||||||||||||||||
Allowance for finance receivable losses | Allowance for finance receivable losses | 906 | 1,085 | Allowance for finance receivable losses | 849 | 1,085 | ||||||||||||||||||||||
Restricted cash and restricted cash equivalents | Restricted cash and restricted cash equivalents | 494 | 441 | Restricted cash and restricted cash equivalents | 445 | 441 | ||||||||||||||||||||||
Other assets | Other assets | 33 | 33 | Other assets | 33 | 33 | ||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 7,466 | $ | 7,789 | Long-term debt | $ | 6,924 | $ | 7,789 | ||||||||||||||||||
Other liabilities | Other liabilities | 14 | 15 | Other liabilities | 13 | 15 |
8. Insurance |
At or for the Six Months Ended June 30, | At or for the Nine Months Ended September 30, | |||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | ||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 148 | $ | 117 | Balance at beginning of period | $ | 148 | $ | 117 | ||||||||||||||||||
Less reinsurance recoverables | Less reinsurance recoverables | (3) | (4) | Less reinsurance recoverables | (3) | (4) | ||||||||||||||||||||||
Net balance at beginning of period | Net balance at beginning of period | 145 | 113 | Net balance at beginning of period | 145 | 113 | ||||||||||||||||||||||
Additions for losses and loss adjustment expenses incurred to: | Additions for losses and loss adjustment expenses incurred to: | Additions for losses and loss adjustment expenses incurred to: | ||||||||||||||||||||||||||
Current year | Current year | 109 | 174 | Current year | 158 | 221 | ||||||||||||||||||||||
Prior years * | Prior years * | (18) | (11) | Prior years * | (19) | (10) | ||||||||||||||||||||||
Total | Total | 91 | 163 | Total | 139 | 211 | ||||||||||||||||||||||
Reductions for losses and loss adjustment expenses paid related to: | Reductions for losses and loss adjustment expenses paid related to: | Reductions for losses and loss adjustment expenses paid related to: | ||||||||||||||||||||||||||
Current year | Current year | (53) | (58) | Current year | (91) | (107) | ||||||||||||||||||||||
Prior years | Prior years | (67) | (47) | Prior years | (79) | (60) | ||||||||||||||||||||||
Total | Total | (120) | (105) | Total | (170) | (167) | ||||||||||||||||||||||
Net balance at end of period | Net balance at end of period | 116 | 171 | Net balance at end of period | 114 | 157 | ||||||||||||||||||||||
Plus reinsurance recoverables | Plus reinsurance recoverables | 3 | 3 | Plus reinsurance recoverables | 3 | 3 | ||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 119 | $ | 174 | Balance at end of period | $ | 117 | $ | 160 |
9. Capital Stock and Earnings Per Share (OMH Only) |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | 134,477,096 | 134,309,707 | 134,341,724 | 136,101,156 | Balance at beginning of period | 133,884,043 | 134,319,171 | 134,341,724 | 136,101,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | Common stock issued | 19,302 | 9,464 | 154,674 | 249,713 | Common stock issued | 4,653 | 3,842 | 159,327 | 253,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased * | Common stock repurchased * | (612,355) | 0 | (612,355) | (2,031,698) | Common stock repurchased * | (2,435,489) | — | (3,047,844) | (2,031,698) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | 133,884,043 | 134,319,171 | 133,884,043 | 134,319,171 | Balance at end of period | 131,453,207 | 134,323,013 | 131,453,207 | 134,323,013 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per share data) | (dollars in millions, except per share data) | 2021 | 2020 | 2021 | 2020 | (dollars in millions, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator (basic and diluted): | Numerator (basic and diluted): | Numerator (basic and diluted): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding (basic) | Weighted average number of shares outstanding (basic) | 134,255,916 | 134,316,252 | 134,330,229 | 135,112,676 | Weighted average number of shares outstanding (basic) | 132,487,234 | 134,321,929 | 133,709,146 | 134,847,170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of dilutive securities * | Effect of dilutive securities * | 388,434 | 63,324 | 392,895 | 147,720 | Effect of dilutive securities * | 437,099 | 185,620 | 387,236 | 152,317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding (diluted) | Weighted average number of shares outstanding (diluted) | 134,644,350 | 134,379,576 | 134,723,124 | 135,260,396 | Weighted average number of shares outstanding (diluted) | 132,924,333 | 134,507,549 | 134,096,382 | 134,999,487 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 2.61 | $ | 0.66 | $ | 5.68 | $ | 0.90 | Basic | $ | 2.17 | $ | 1.86 | $ | 7.86 | $ | 2.75 | ||||||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 2.60 | $ | 0.66 | $ | 5.67 | $ | 0.90 | Diluted | $ | 2.17 | $ | 1.86 | $ | 7.84 | $ | 2.75 |
10. Accumulated Other Comprehensive Income (Loss) |
(dollars in millions) | (dollars in millions) | Unrealized Gains (Losses) Available-for-Sale Securities (a) | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Other (b) | Total Accumulated Other Comprehensive Income (Loss) | (dollars in millions) | Unrealized Gains (Losses) Available-for-Sale Securities (a) | Retirement Plan Liabilities Adjustments | Foreign Currency Translation Adjustments | Other (b) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 58 | $ | 1 | $ | 4 | $ | 17 | $ | 80 | Balance at beginning of period | $ | 71 | $ | 1 | $ | 5 | $ | 8 | $ | 85 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 13 | 0 | 1 | (9) | 5 | Other comprehensive income (loss) before reclassifications | (7) | — | (2) | 1 | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 71 | $ | 1 | $ | 5 | $ | 8 | $ | 85 | Balance at end of period | $ | 64 | $ | 1 | $ | 3 | $ | 9 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | (1) | $ | 3 | $ | (8) | $ | 0 | $ | (6) | Balance at beginning of period | $ | 66 | $ | 3 | $ | (4) | $ | — | $ | 65 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications | Other comprehensive income before reclassifications | 67 | 0 | 4 | 0 | 71 | Other comprehensive income before reclassifications | 12 | — | 2 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 66 | $ | 3 | $ | (4) | $ | 0 | $ | 65 | Balance at end of period | $ | 78 | $ | 3 | $ | (2) | $ | — | $ | 79 | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 91 | $ | 1 | $ | 2 | $ | 0 | $ | 94 | Balance at beginning of period | $ | 91 | $ | 1 | $ | 2 | $ | — | $ | 94 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | (19) | 0 | 3 | 8 | (8) | Other comprehensive income (loss) before reclassifications | (26) | — | 1 | 9 | (16) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income | (1) | 0 | 0 | 0 | (1) | Reclassification adjustments from accumulated other comprehensive income | (1) | — | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 71 | $ | 1 | $ | 5 | $ | 8 | $ | 85 | Balance at end of period | $ | 64 | $ | 1 | $ | 3 | $ | 9 | $ | 77 | ||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 41 | $ | 3 | $ | 0 | $ | 0 | $ | 44 | Balance at beginning of period | $ | 41 | $ | 3 | $ | — | $ | — | $ | 44 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 25 | 0 | (4) | 0 | 21 | Other comprehensive income (loss) before reclassifications | 38 | — | (2) | — | 36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustments from accumulated other comprehensive income | Reclassification adjustments from accumulated other comprehensive income | (1) | — | — | 0 | (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 66 | $ | 3 | $ | (4) | $ | 0 | $ | 65 | Balance at end of period | $ | 78 | $ | 3 | $ | (2) | $ | — | $ | 79 |
11. Income Taxes |
12. Contingencies |
13. Segment Information |
(dollars in millions) | (dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | (dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 1,069 | $ | 1 | $ | 1 | $ | 1,071 | Interest income | $ | 1,111 | $ | 1 | $ | 1 | $ | 1,113 | ||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 230 | 1 | 0 | 231 | Interest expense | 235 | 1 | 1 | 237 | ||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 130 | 0 | 2 | 132 | Provision for finance receivable losses | 224 | — | 2 | 226 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 709 | 0 | (1) | 708 | Net interest income after provision for finance receivable losses | 652 | — | (2) | 650 | ||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 147 | 4 | (1) | 150 | Other revenues | 151 | 4 | — | 155 | ||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 382 | 6 | 7 | 395 | Other expenses | 415 | 5 | 9 | 429 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | Income (loss) before income tax expense (benefit) | $ | 474 | $ | (2) | $ | (9) | $ | 463 | Income (loss) before income tax expense (benefit) | $ | 388 | $ | (1) | $ | (11) | $ | 376 |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 1,074 | $ | 1 | $ | 2 | $ | 1,077 | Interest income | $ | 1,086 | $ | 1 | $ | 2 | $ | 1,089 | ||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 266 | 1 | 4 | 271 | Interest expense | 250 | 1 | 4 | 255 | ||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 422 | 0 | 1 | 423 | Provision for finance receivable losses | 232 | — | (1) | 231 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 386 | 0 | (3) | 383 | Net interest income after provision for finance receivable losses | 604 | — | (1) | 603 | ||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 144 | 4 | 0 | 148 | Other revenues | 99 | 4 | (2) | 101 | ||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 402 | 5 | 6 | 413 | Other expenses | 352 | 6 | 5 | 363 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | Income (loss) before income tax expense (benefit) | $ | 128 | $ | (1) | $ | (9) | $ | 118 | Income (loss) before income tax expense (benefit) | $ | 351 | $ | (2) | $ | (8) | $ | 341 |
(dollars in millions) | (dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | (dollars in millions) | Consumer and Insurance | Other | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||
At or for the Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
At or for the Nine Months Ended September 30, 2021 | At or for the Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 2,125 | $ | 3 | $ | 2 | $ | 2,130 | Interest income | $ | 3,237 | $ | 4 | $ | 3 | $ | 3,244 | ||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 462 | 2 | 1 | 465 | Interest expense | 698 | 3 | 2 | 703 | ||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 127 | 0 | 3 | 130 | Provision for finance receivable losses | 351 | — | 5 | 356 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 1,536 | 1 | (2) | 1,535 | Net interest income after provision for finance receivable losses | 2,188 | 1 | (4) | 2,185 | ||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 244 | 7 | (10) | 241 | Other revenues | 395 | 10 | (9) | 396 | ||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 739 | 12 | 15 | 766 | Other expenses | 1,154 | 17 | 24 | 1,195 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | Income (loss) before income tax expense (benefit) | $ | 1,041 | $ | (4) | $ | (27) | $ | 1,010 | Income (loss) before income tax expense (benefit) | $ | 1,429 | $ | (6) | $ | (37) | $ | 1,386 | ||||||||||||||||||||||||||||||||||
Assets | Assets | $ | 20,301 | $ | 48 | $ | 2,028 | $ | 22,377 | Assets | $ | 19,897 | $ | 44 | $ | 2,022 | $ | 21,963 |
At or for the Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
At or for the Nine Months Ended September 30, 2020 | At or for the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 2,174 | $ | 3 | $ | 7 | $ | 2,184 | Interest income | $ | 3,260 | $ | 4 | $ | 9 | $ | 3,273 | ||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 515 | 2 | 10 | 527 | Interest expense | 765 | 3 | 13 | 781 | ||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 952 | 0 | 2 | 954 | Provision for finance receivable losses | 1,184 | — | 2 | 1,186 | ||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 707 | 1 | (5) | 703 | Net interest income after provision for finance receivable losses | 1,311 | 1 | (6) | 1,306 | ||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 281 | 9 | (1) | 289 | Other revenues | 380 | 12 | (2) | 390 | ||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 809 | 12 | 10 | 831 | Other expenses | 1,161 | 18 | 15 | 1,194 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | Income (loss) before income tax expense (benefit) | $ | 179 | $ | (2) | $ | (16) | $ | 161 | Income (loss) before income tax expense (benefit) | $ | 530 | $ | (5) | $ | (23) | $ | 502 | ||||||||||||||||||||||||||||||||||
Assets | Assets | $ | 20,389 | $ | 70 | $ | 2,049 | $ | 22,508 | Assets | $ | 19,743 | $ | 63 | $ | 2,051 | $ | 21,857 |
14. Fair Value Measurements |
Fair Value Measurements Using | Total Fair Value | Total Carrying Value | Fair Value Measurements Using | Total Fair Value | Total Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Level 1 | Level 2 | Level 3 | (dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 1,784 | $ | 3 | $ | 0 | $ | 1,787 | $ | 1,787 | Cash and cash equivalents | $ | 821 | $ | — | $ | — | $ | 821 | $ | 821 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities | Investment securities | 53 | 1,908 | 8 | 1,969 | 1,969 | Investment securities | 56 | 1,901 | 6 | 1,963 | 1,963 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | Net finance receivables, less allowance for finance receivable losses | 0 | 0 | 19,140 | 19,140 | 16,163 | Net finance receivables, less allowance for finance receivable losses | — | — | 19,845 | 19,845 | 16,782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | Restricted cash and restricted cash equivalents | 507 | 0 | 0 | 507 | 507 | Restricted cash and restricted cash equivalents | 459 | — | — | 459 | 459 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets * | Other assets * | 0 | 0 | 53 | 53 | 52 | Other assets * | — | — | 53 | 53 | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 0 | $ | 19,025 | $ | 0 | $ | 19,025 | $ | 17,605 | Long-term debt | $ | — | $ | 18,933 | $ | — | $ | 18,933 | $ | 17,661 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | $ | 2,255 | $ | 17 | $ | 0 | $ | 2,272 | $ | 2,272 | Cash and cash equivalents | $ | 2,255 | $ | 17 | $ | — | $ | 2,272 | $ | 2,272 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities | Investment securities | 44 | 1,870 | 8 | 1,922 | 1,922 | Investment securities | 44 | 1,870 | 8 | 1,922 | 1,922 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables, less allowance for finance receivable losses | Net finance receivables, less allowance for finance receivable losses | 0 | 0 | 18,629 | 18,629 | 15,815 | Net finance receivables, less allowance for finance receivable losses | — | — | 18,629 | 18,629 | 15,815 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash and restricted cash equivalents | Restricted cash and restricted cash equivalents | 451 | 0 | 0 | 451 | 451 | Restricted cash and restricted cash equivalents | 451 | — | — | 451 | 451 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets * | Other assets * | 0 | 2 | 60 | 62 | 62 | Other assets * | — | 2 | 60 | 62 | 62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | $ | 0 | $ | 19,426 | $ | 0 | $ | 19,426 | $ | 17,800 | Long-term debt | $ | — | $ | 19,426 | $ | — | $ | 19,426 | $ | 17,800 |
Fair Value Measurements Using | Total Carried At Fair Value | Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Level 1 | Level 2 | Level 3 | (dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents in mutual funds | Cash equivalents in mutual funds | $ | 1,148 | $ | 0 | $ | 0 | $ | 1,148 | Cash equivalents in mutual funds | $ | 204 | $ | — | $ | — | $ | 204 | ||||||||||||||||||||||||||||||||||
Cash equivalents in securities | 0 | 3 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities: | Investment securities: | Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | U.S. government and government sponsored entities | 0 | 13 | 0 | 13 | U.S. government and government sponsored entities | — | 14 | — | 14 | ||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | 0 | 86 | 0 | 86 | Obligations of states, municipalities, and political subdivisions | — | 84 | — | 84 | ||||||||||||||||||||||||||||||||||||||||||
Commercial paper | Commercial paper | 0 | 37 | 0 | 37 | Commercial paper | — | 28 | — | 28 | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 0 | 149 | 0 | 149 | Non-U.S. government and government sponsored entities | — | 148 | — | 148 | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 4 | 1,255 | 4 | 1,263 | Corporate debt | 5 | 1,273 | 4 | 1,282 | ||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 0 | 192 | 0 | 192 | RMBS | — | 180 | — | 180 | ||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 0 | 54 | 0 | 54 | CMBS | — | 52 | — | 52 | ||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 0 | 82 | 0 | 82 | CDO/ABS | — | 84 | — | 84 | ||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | Total available-for-sale securities | 4 | 1,868 | 4 | 1,876 | Total available-for-sale securities | 5 | 1,863 | 4 | 1,872 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | Other securities | Other securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | Bonds: | Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | 0 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 0 | 11 | 1 | 12 | Corporate debt | — | 10 | 1 | 11 | ||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 0 | 1 | 0 | 1 | RMBS | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 0 | 27 | 2 | 29 | CDO/ABS | — | 27 | — | 27 | ||||||||||||||||||||||||||||||||||||||||||
Total bonds | Total bonds | 0 | 40 | 3 | 43 | Total bonds | — | 38 | 1 | 39 | ||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Preferred stock | 19 | 0 | 0 | 19 | Preferred stock | 22 | — | — | 22 | ||||||||||||||||||||||||||||||||||||||||||
Common stock | Common stock | 30 | 0 | 1 | 31 | Common stock | 29 | — | 1 | 30 | ||||||||||||||||||||||||||||||||||||||||||
Total other securities | Total other securities | 49 | 40 | 4 | 93 | Total other securities | 51 | 38 | 2 | 91 | ||||||||||||||||||||||||||||||||||||||||||
Total investment securities | Total investment securities | 53 | 1,908 | 8 | 1,969 | Total investment securities | 56 | 1,901 | 6 | 1,963 | ||||||||||||||||||||||||||||||||||||||||||
Restricted cash equivalents in mutual funds | Restricted cash equivalents in mutual funds | 498 | 0 | 0 | 498 | Restricted cash equivalents in mutual funds | 450 | — | — | 450 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 1,699 | $ | 1,911 | $ | 8 | $ | 3,618 | Total | $ | 710 | $ | 1,901 | $ | 6 | $ | 2,617 |
Fair Value Measurements Using | Total Carried At Fair Value | Fair Value Measurements Using | Total Carried At Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | Level 1 | Level 2 | Level 3 | (dollars in millions) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents in mutual funds | Cash equivalents in mutual funds | $ | 2,018 | $ | 0 | $ | 0 | $ | 2,018 | Cash equivalents in mutual funds | $ | 2,018 | $ | — | $ | — | $ | 2,018 | ||||||||||||||||||||||||||||||||||
Cash equivalents in securities | Cash equivalents in securities | 0 | 17 | 0 | 17 | Cash equivalents in securities | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||
Investment securities: | Investment securities: | Investment securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | Available-for-sale securities | Available-for-sale securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government and government sponsored entities | U.S. government and government sponsored entities | 0 | 12 | 0 | 12 | U.S. government and government sponsored entities | — | 12 | — | 12 | ||||||||||||||||||||||||||||||||||||||||||
Obligations of states, municipalities, and political subdivisions | Obligations of states, municipalities, and political subdivisions | 0 | 92 | 0 | 92 | Obligations of states, municipalities, and political subdivisions | — | 92 | — | 92 | ||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit and commercial paper | Certificates of deposit and commercial paper | 0 | 28 | 0 | 28 | Certificates of deposit and commercial paper | — | 28 | — | 28 | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 0 | 146 | 0 | 146 | Non-U.S. government and government sponsored entities | — | 146 | — | 146 | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 5 | 1,207 | 6 | 1,218 | Corporate debt | 5 | 1,207 | 6 | 1,218 | ||||||||||||||||||||||||||||||||||||||||||
RMBS | RMBS | 0 | 215 | 0 | 215 | RMBS | — | 215 | — | 215 | ||||||||||||||||||||||||||||||||||||||||||
CMBS | CMBS | 0 | 58 | 0 | 58 | CMBS | — | 58 | — | 58 | ||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 0 | 78 | 0 | 78 | CDO/ABS | — | 78 | — | 78 | ||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | Total available-for-sale securities | 5 | 1,836 | 6 | 1,847 | Total available-for-sale securities | 5 | 1,836 | 6 | 1,847 | ||||||||||||||||||||||||||||||||||||||||||
Other securities | Other securities | Other securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds: | Bonds: | Bonds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and government sponsored entities | Non-U.S. government and government sponsored entities | 0 | 1 | 0 | 1 | Non-U.S. government and government sponsored entities | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | Corporate debt | 0 | 16 | 1 | 17 | Corporate debt | — | 16 | 1 | 17 | ||||||||||||||||||||||||||||||||||||||||||
CDO/ABS | CDO/ABS | 0 | 17 | 0 | 17 | CDO/ABS | — | 17 | — | 17 | ||||||||||||||||||||||||||||||||||||||||||
Total bonds | Total bonds | 0 | 34 | 1 | 35 | Total bonds | — | 34 | 1 | 35 | ||||||||||||||||||||||||||||||||||||||||||
Preferred stock | Preferred stock | 13 | 0 | 0 | 13 | Preferred stock | 13 | — | — | 13 | ||||||||||||||||||||||||||||||||||||||||||
Common stock | Common stock | 26 | 0 | 1 | 27 | Common stock | 26 | — | 1 | 27 | ||||||||||||||||||||||||||||||||||||||||||
Total other securities | Total other securities | 39 | 34 | 2 | 75 | Total other securities | 39 | 34 | 2 | 75 | ||||||||||||||||||||||||||||||||||||||||||
Total investment securities | Total investment securities | 44 | 1,870 | 8 | 1,922 | Total investment securities | 44 | 1,870 | 8 | 1,922 | ||||||||||||||||||||||||||||||||||||||||||
Restricted cash equivalents in mutual funds | Restricted cash equivalents in mutual funds | 441 | 0 | 0 | 441 | Restricted cash equivalents in mutual funds | 441 | — | — | 441 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 2,503 | $ | 1,887 | $ | 8 | $ | 4,398 | Total | $ | 2,503 | $ | 1,887 | $ | 8 | $ | 4,398 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Topic | Page | |||||||
Forward-Looking Statements |
Overview |
Recent Developments and Outlook |
Results of Operations |
At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | At or for the Three Months Ended September 30, | At or for the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions, except per share amounts) | (dollars in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | (dollars in millions, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 1,071 | $ | 1,077 | $ | 2,130 | $ | 2,184 | Interest income | $ | 1,113 | $ | 1,089 | $ | 3,244 | $ | 3,273 | ||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 231 | 271 | 465 | 527 | Interest expense | 237 | 255 | 703 | 781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 132 | 423 | 130 | 954 | Provision for finance receivable losses | 226 | 231 | 356 | 1,186 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 708 | 383 | 1,535 | 703 | Net interest income after provision for finance receivable losses | 650 | 603 | 2,185 | 1,306 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 150 | 148 | 241 | 289 | Other revenues | 155 | 101 | 396 | 390 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 395 | 413 | 766 | 831 | Other expenses | 429 | 363 | 1,195 | 1,194 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 463 | 118 | 1,010 | 161 | Income before income taxes | 376 | 341 | 1,386 | 502 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes | 113 | 29 | 247 | 40 | Income taxes | 88 | 91 | 335 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 350 | $ | 89 | $ | 763 | $ | 121 | Net income | $ | 288 | $ | 250 | $ | 1,051 | $ | 371 | ||||||||||||||||||||||||||||||||||||||||||||||
Share Data: | Share Data: | Share Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 2.60 | $ | 0.66 | $ | 5.67 | $ | 0.90 | Diluted | $ | 2.17 | $ | 1.86 | $ | 7.84 | $ | 2.75 | ||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Statistics * | Selected Financial Statistics * | Selected Financial Statistics * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance receivables held for investment: | Finance receivables held for investment: | Finance receivables held for investment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables | Net finance receivables | $ | 18,163 | $ | 17,721 | $ | 18,163 | $ | 17,721 | Net finance receivables | $ | 18,843 | $ | 17,817 | $ | 18,843 | $ | 17,817 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of accounts | Number of accounts | 2,270,043 | 2,305,877 | 2,270,043 | 2,305,877 | Number of accounts | 2,334,395 | 2,297,167 | 2,334,395 | 2,297,167 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average net receivables | Average net receivables | $ | 17,717 | $ | 17,909 | $ | 17,770 | $ | 18,144 | Average net receivables | $ | 18,545 | $ | 17,740 | $ | 18,029 | $ | 18,010 | ||||||||||||||||||||||||||||||||||||||||||||||
Yield | Yield | 24.21 | % | 24.16 | % | 24.14 | % | 24.16 | % | Yield | 23.79 | % | 24.39 | % | 24.02 | % | 24.24 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-off ratio | Gross charge-off ratio | 5.70 | % | 7.21 | % | 5.75 | % | 7.28 | % | Gross charge-off ratio | 4.76 | % | 6.14 | % | 5.41 | % | 6.90 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Recovery ratio | Recovery ratio | (1.29) | % | (0.89) | % | (1.22) | % | (0.89) | % | Recovery ratio | (1.24) | % | (0.95) | % | (1.23) | % | (0.91) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net charge-off ratio | Net charge-off ratio | 4.40 | % | 6.32 | % | 4.54 | % | 6.39 | % | Net charge-off ratio | 3.52 | % | 5.19 | % | 4.19 | % | 5.99 | % | ||||||||||||||||||||||||||||||||||||||||||||||
30-89 Delinquency ratio | 30-89 Delinquency ratio | 1.76 | % | 1.63 | % | 1.76 | % | 1.63 | % | 30-89 Delinquency ratio | 2.20 | % | 1.95 | % | 2.20 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Origination volume | Origination volume | $ | 3,835 | $ | 2,047 | $ | 6,119 | $ | 4,636 | Origination volume | $ | 3,870 | $ | 2,887 | $ | 9,989 | $ | 7,523 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of accounts originated | Number of accounts originated | 389,220 | 194,480 | 614,322 | 471,253 | Number of accounts originated | 404,602 | 300,376 | 1,018,924 | 771,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt balances: | Debt balances: | Debt balances: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt balance | Long-term debt balance | $ | 17,605 | $ | 18,010 | $ | 17,605 | $ | 18,010 | Long-term debt balance | $ | 17,661 | $ | 17,531 | $ | 17,661 | $ | 17,531 | ||||||||||||||||||||||||||||||||||||||||||||||
Average daily debt balance | Average daily debt balance | 16,860 | 19,772 | 16,947 | 18,724 | Average daily debt balance | 17,680 | 17,546 | 17,192 | 18,331 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Consumer and Insurance | ||||||||||||||||||||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 474 | $ | 128 | $ | 1,041 | $ | 179 | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Direct costs associated with COVID-19 | 2 | 6 | 4 | 9 | ||||||||||||||||||||||||||||
Acquisition-related transaction and integration expenses | — | 2 | — | 8 | ||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 1 | — | 39 | — | ||||||||||||||||||||||||||||
Restructuring charges | — | 7 | — | 7 | ||||||||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | $ | 477 | $ | 143 | $ | 1,084 | $ | 203 | ||||||||||||||||||||||||
Provision for finance receivable losses | $ | 130 | $ | 422 | $ | 127 | $ | 952 | ||||||||||||||||||||||||
Net charge-offs | (194) | (282) | (399) | (578) | ||||||||||||||||||||||||||||
Pretax capital generation (non-GAAP) | $ | 413 | $ | 283 | $ | 812 | $ | 577 | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||
Loss before income taxes - Segment Accounting Basis | $ | (2) | $ | (1) | $ | (4) | $ | (2) | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Additional net gain on sale of SpringCastle interests | (1) | — | (1) | — | ||||||||||||||||||||||||||||
Lower of cost or fair value adjustment * | 1 | — | 2 | — | ||||||||||||||||||||||||||||
Adjusted pretax loss (non-GAAP) | $ | (2) | $ | (1) | $ | (3) | $ | (2) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Consumer and Insurance | ||||||||||||||||||||||||||||||||
Income before income taxes - Segment Accounting Basis | $ | 388 | $ | 351 | $ | 1,429 | $ | 530 | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||
Cash-settled stock-based awards | 31 | — | 31 | — | ||||||||||||||||||||||||||||
Direct costs associated with COVID-19 | 1 | 4 | 5 | 13 | ||||||||||||||||||||||||||||
Acquisition-related transaction and integration expenses | — | 2 | — | 10 | ||||||||||||||||||||||||||||
Net loss on repurchases and repayments of debt | 1 | 35 | 40 | 35 | ||||||||||||||||||||||||||||
Restructuring charges | — | 1 | — | 7 | ||||||||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | $ | 421 | $ | 393 | $ | 1,505 | $ | 595 | ||||||||||||||||||||||||
Provision for finance receivable losses | $ | 224 | $ | 232 | $ | 351 | $ | 1,184 | ||||||||||||||||||||||||
Net charge-offs | (165) | (232) | (564) | (810) | ||||||||||||||||||||||||||||
Pretax capital generation (non-GAAP) | $ | 480 | $ | 393 | $ | 1,292 | $ | 969 | ||||||||||||||||||||||||
Segment Results |
At or for the Three Months Ended June 30, | At or for the Six Months Ended June 30, | At or for the Three Months Ended September 30, | At or for the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | (dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | Interest income | $ | 1,069 | $ | 1,074 | $ | 2,125 | $ | 2,174 | Interest income | $ | 1,111 | $ | 1,086 | $ | 3,237 | $3,260 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 230 | 266 | 462 | 515 | Interest expense | 235 | 250 | 698 | 765 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 130 | 422 | 127 | 952 | Provision for finance receivable losses | 224 | 232 | 351 | 1,184 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | Net interest income after provision for finance receivable losses | 709 | 386 | 1,536 | 707 | Net interest income after provision for finance receivable losses | 652 | 604 | 2,188 | 1,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other revenues | Other revenues | 148 | 144 | 283 | 281 | Other revenues | 152 | 134 | 435 | 415 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 380 | 387 | 735 | 785 | Other expenses | 383 | 345 | 1,118 | 1,131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted pretax income (non-GAAP) | Adjusted pretax income (non-GAAP) | $ | 477 | $ | 143 | $ | 1,084 | $ | 203 | Adjusted pretax income (non-GAAP) | $ | 421 | $ | 393 | $ | 1,505 | $595 | |||||||||||||||||||||||||||||||||||||||||||||||
Selected Financial Statistics * | Selected Financial Statistics * | Selected Financial Statistics * | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance receivables held for investment: | Finance receivables held for investment: | Finance receivables held for investment: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net finance receivables | Net finance receivables | $ | 18,168 | $ | 17,732 | $ | 18,168 | $ | 17,732 | Net finance receivables | $ | 18,847 | $ | 17,826 | $ | 18,847 | $ | 17,826 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of accounts | Number of accounts | 2,270,043 | 2,305,877 | 2,270,043 | 2,305,877 | Number of accounts | 2,334,395 | 2,297,167 | 2,334,395 | 2,297,167 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average net receivables | Average net receivables | $ | 17,722 | $ | 17,921 | $ | 17,776 | $ | 18,159 | Average net receivables | $ | 18,549 | $ | 17,750 | $ | 18,034 | $ | 18,023 | ||||||||||||||||||||||||||||||||||||||||||||||
Yield | Yield | 24.18 | % | 24.09 | % | 24.11 | % | 24.08 | % | Yield | 23.77 | % | 24.34 | % | 24.00 | % | 24.16 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-off ratio | Gross charge-off ratio | 5.70 | % | 7.22 | % | 5.75 | % | 7.29 | % | Gross charge-off ratio | 4.77 | % | 6.15 | % | 5.41 | % | 6.91 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Recovery ratio | Recovery ratio | (1.29) | % | (0.89) | % | (1.22) | % | (0.89) | % | Recovery ratio | (1.24) | % | (0.95) | % | (1.22) | % | (0.91) | % | ||||||||||||||||||||||||||||||||||||||||||||||
Net charge-off ratio | Net charge-off ratio | 4.41 | % | 6.33 | % | 4.54 | % | 6.40 | % | Net charge-off ratio | 3.52 | % | 5.20 | % | 4.19 | % | 6.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||
30-89 Delinquency ratio | 30-89 Delinquency ratio | 1.76 | % | 1.63 | % | 1.76 | % | 1.63 | % | 30-89 Delinquency ratio | 2.20 | % | 1.95 | % | 2.20 | % | 1.95 | % | ||||||||||||||||||||||||||||||||||||||||||||||
Origination volume | Origination volume | $ | 3,835 | $ | 2,047 | $ | 6,119 | $ | 4,636 | Origination volume | $ | 3,870 | $ | 2,887 | $ | 9,989 | $ | 7,523 | ||||||||||||||||||||||||||||||||||||||||||||||
Number of accounts originated | Number of accounts originated | 389,220 | 194,480 | 614,322 | 471,253 | Number of accounts originated | 404,602 | 300,376 | 1,018,924 | 771,628 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
Interest income | $ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||||||||||||||||||
Interest expense | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||||||
Net interest income after provision for finance receivable losses | — | — | 1 | 1 | ||||||||||||||||||||||||||||
Other revenues | 4 | 4 | 8 | 9 | ||||||||||||||||||||||||||||
Other expenses | 6 | 5 | 12 | 12 | ||||||||||||||||||||||||||||
Adjusted pretax loss (non-GAAP) | $ | (2) | $ | (1) | $ | (3) | $ | (2) |
June 30, | ||||||||||||||||||||
(dollars in millions) | 2021 | 2020 | ||||||||||||||||||
Net finance receivables held for sale: | ||||||||||||||||||||
Other receivables | $ | 43 | $ | 61 |
Credit Quality |
(dollars in millions) | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | GAAP Basis | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | GAAP Basis | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | $ | 17,601 | $ | (4) | $ | 17,597 | Current | $ | 18,137 | $ | (4) | $ | 18,133 | ||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | 202 | (1) | 201 | 30-59 days past due | 258 | — | 258 | ||||||||||||||||||||||||||||||||||||||||||||
Delinquent (60-89 days past due) | Delinquent (60-89 days past due) | 118 | — | 118 | Delinquent (60-89 days past due) | 157 | — | 157 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | Performing | 17,921 | (5) | 17,916 | Performing | 18,552 | (4) | 18,548 | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (90+ days past due) | Nonperforming (90+ days past due) | 247 | — | 247 | Nonperforming (90+ days past due) | 295 | — | 295 | ||||||||||||||||||||||||||||||||||||||||||||
Total net finance receivables | Total net finance receivables | $ | 18,168 | $ | (5) | $ | 18,163 | Total net finance receivables | $ | 18,847 | $ | (4) | $ | 18,843 | ||||||||||||||||||||||||||||||||||||||
Delinquency ratio | Delinquency ratio | Delinquency ratio | ||||||||||||||||||||||||||||||||||||||||||||||||||
30-89 days past due | 30-89 days past due | 1.76 | % | * | 1.76 | % | 30-89 days past due | 2.20 | % | * | 2.20 | % | ||||||||||||||||||||||||||||||||||||||||
30+ days past due | 30+ days past due | 3.12 | % | * | 3.12 | % | 30+ days past due | 3.77 | % | * | 3.77 | % | ||||||||||||||||||||||||||||||||||||||||
60+ days past due | 60+ days past due | 2.01 | % | * | 2.01 | % | 60+ days past due | 2.40 | % | * | 2.40 | % | ||||||||||||||||||||||||||||||||||||||||
90+ days past due | 90+ days past due | 1.36 | % | * | 1.36 | % | 90+ days past due | 1.57 | % | * | 1.57 | % | ||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current | Current | $ | 17,362 | $ | (7) | $ | 17,355 | Current | $ | 17,362 | $ | (7) | $ | 17,355 | ||||||||||||||||||||||||||||||||||||||
30-59 days past due | 30-59 days past due | 251 | — | 251 | 30-59 days past due | 251 | — | 251 | ||||||||||||||||||||||||||||||||||||||||||||
Delinquent (60-89 days past due) | Delinquent (60-89 days past due) | 162 | — | 162 | Delinquent (60-89 days past due) | 162 | — | 162 | ||||||||||||||||||||||||||||||||||||||||||||
Performing | Performing | 17,775 | (7) | 17,768 | Performing | 17,775 | (7) | 17,768 | ||||||||||||||||||||||||||||||||||||||||||||
Nonperforming (90+ days past due) | Nonperforming (90+ days past due) | 316 | — | 316 | Nonperforming (90+ days past due) | 316 | — | 316 | ||||||||||||||||||||||||||||||||||||||||||||
Total net finance receivables | Total net finance receivables | $ | 18,091 | $ | (7) | $ | 18,084 | Total net finance receivables | $ | 18,091 | $ | (7) | $ | 18,084 | ||||||||||||||||||||||||||||||||||||||
Delinquency ratio | Delinquency ratio | Delinquency ratio | ||||||||||||||||||||||||||||||||||||||||||||||||||
30-89 days past due | 30-89 days past due | 2.28 | % | * | 2.28 | % | 30-89 days past due | 2.28 | % | * | 2.28 | % | ||||||||||||||||||||||||||||||||||||||||
30+ days past due | 30+ days past due | 4.03 | % | * | 4.03 | % | 30+ days past due | 4.03 | % | * | 4.03 | % | ||||||||||||||||||||||||||||||||||||||||
60+ days past due | 60+ days past due | 2.64 | % | * | 2.64 | % | 60+ days past due | 2.64 | % | * | 2.64 | % | ||||||||||||||||||||||||||||||||||||||||
90+ days past due | 90+ days past due | 1.75 | % | * | 1.75 | % | 90+ days past due | 1.75 | % | * | 1.75 | % |
(dollars in millions) | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | Consolidated Total | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | Consolidated Total | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 2,075 | $ | (13) | $ | 2,062 | Balance at beginning of period | $ | 2,011 | $ | (11) | $ | 2,000 | ||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 130 | 2 | 132 | Provision for finance receivable losses | 224 | 2 | 226 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | (252) | — | (252) | Charge-offs | (223) | — | (223) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 58 | — | 58 | Recoveries | 58 | — | 58 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 2,011 | $ | (11) | $ | 2,000 | Balance at end of period | $ | 2,070 | $ | (9) | $ | 2,061 | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 2,202 | $ | (20) | $ | 2,182 | Balance at beginning of period | $ | 2,342 | $ | (18) | $ | 2,324 | ||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 422 | 1 | 423 | Provision for finance receivable losses | 232 | (1) | 231 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | (322) | 1 | (321) | Charge-offs | (274) | — | (274) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 40 | — | 40 | Recoveries | 42 | 1 | 43 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 2,342 | $ | (18) | $ | 2,324 | Balance at end of period | $ | 2,342 | $ | (18) | $ | 2,324 |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 2,283 | $ | (14) | $ | 2,269 | Balance at beginning of period | $ | 2,283 | $ | (14) | $ | 2,269 | ||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 127 | 3 | 130 | Provision for finance receivable losses | 351 | 5 | 356 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | (507) | — | (507) | Charge-offs | (730) | — | (730) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 108 | — | 108 | Recoveries | 166 | — | 166 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 2,011 | $ | (11) | $ | 2,000 | Balance at end of period | $ | 2,070 | $ | (9) | $ | 2,061 | ||||||||||||||||||||||||||||||||||||||
Allowance ratio | Allowance ratio | 11.07 | % | (a) | 11.01 | % | Allowance ratio | 10.98 | % | (a) | 10.94 | % | ||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | Balance at beginning of period | $ | 849 | $ | (20) | $ | 829 | Balance at beginning of period | $ | 849 | $ | (20) | $ | 829 | ||||||||||||||||||||||||||||||||||||||
Impact of adoption of ASU 2016-13 (b) | Impact of adoption of ASU 2016-13 (b) | 1,119 | (1) | 1,118 | Impact of adoption of ASU 2016-13 (b) | 1,119 | (1) | 1,118 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for finance receivable losses | Provision for finance receivable losses | 952 | 2 | 954 | Provision for finance receivable losses | 1,184 | 2 | 1,186 | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | Charge-offs | (658) | 1 | (657) | Charge-offs | (932) | 1 | (931) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries | Recoveries | 80 | — | 80 | Recoveries | 122 | — | 122 | ||||||||||||||||||||||||||||||||||||||||||||
Balance at end of period | Balance at end of period | $ | 2,342 | $ | (18) | $ | 2,324 | Balance at end of period | $ | 2,342 | $ | (18) | $ | 2,324 | ||||||||||||||||||||||||||||||||||||||
Allowance ratio | Allowance ratio | 13.21 | % | (a) | 13.12 | % | Allowance ratio | 13.14 | % | (a) | 13.05 | % |
(dollars in millions) | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | GAAP Basis | (dollars in millions) | Consumer and Insurance | Segment to GAAP Adjustment | GAAP Basis | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
TDR net finance receivables | TDR net finance receivables | $ | 708 | $ | (28) | $ | 680 | TDR net finance receivables | $ | 681 | $ | (25) | $ | 656 | ||||||||||||||||||||||||||||||||||||||
Allowance for TDR finance receivable losses | Allowance for TDR finance receivable losses | 318 | (13) | 305 | Allowance for TDR finance receivable losses | 292 | (11) | 281 | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
TDR net finance receivables | TDR net finance receivables | $ | 728 | $ | (37) | $ | 691 | TDR net finance receivables | $ | 728 | $ | (37) | $ | 691 | ||||||||||||||||||||||||||||||||||||||
Allowance for TDR finance receivable losses | Allowance for TDR finance receivable losses | 332 | (18) | 314 | Allowance for TDR finance receivable losses | 332 | (18) | 314 |
(dollars in millions) | (dollars in millions) | June 30, 2021 | December 31, 2020 | (dollars in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
FICO scores * | FICO scores * | FICO scores * | ||||||||||||||||||||||||||
660 or higher | 660 or higher | $ | 5,301 | $ | 4,653 | 660 or higher | $ | 4,896 | $ | 4,653 | ||||||||||||||||||
620-659 | 620-659 | 5,145 | 4,877 | 620-659 | 5,172 | 4,877 | ||||||||||||||||||||||
619 or below | 619 or below | 7,717 | 8,554 | 619 or below | 8,775 | 8,554 | ||||||||||||||||||||||
Total | Total | $ | 18,163 | $ | 18,084 | Total | $ | 18,843 | $ | 18,084 |
Liquidity and Capital Resources |
Declaration Date | Declaration Date | Record Date | Payment Date | Dividend Per Share | Amount Paid | Declaration Date | Record Date | Payment Date | Dividend Per Share | Amount Paid | ||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
February 8, 2021 | February 8, 2021 | February 18, 2021 | February 25, 2021 | $ | 3.95 | * | $ | 531 | February 8, 2021 | February 18, 2021 | February 25, 2021 | $ | 3.95 | * | $ | 531 | ||||||||||||||||||||||||||||||||||||||||||
April 26, 2021 | April 26, 2021 | May 6, 2021 | May 13, 2021 | $ | 0.70 | $ | 94 | April 26, 2021 | May 6, 2021 | May 13, 2021 | 0.70 | 94 | ||||||||||||||||||||||||||||||||||||||||||||||
July 21, 2021 | July 21, 2021 | August 6, 2021 | August 13, 2021 | 4.20 | * | 555 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 4.65 | $ | 625 | Total | $ | 8.85 | $ | 1,180 |
(dollars in millions) | (dollars in millions) | Issue Amount (a) | Initial Collateral Balance | Current Note Amounts Outstanding (a) | Current Collateral Balance (b) | Current Weighted Average Interest Rate | Original Revolving Period | (dollars in millions) | Issue Amount (a) | Initial Collateral Balance | Current Note Amounts Outstanding (a) | Current Collateral Balance (b) | Current Weighted Average Interest Rate | Original Revolving Period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SLFT 2015-B | $ | 314 | $ | 336 | $ | 100 | $ | 127 | 4.42 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SLFT 2017-A | SLFT 2017-A | 652 | 685 | 266 | 323 | 3.39 | % | 3 years | SLFT 2017-A | $ | 652 | $ | 685 | $ | 201 | $ | 261 | 3.62 | % | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2015-3 | OMFIT 2015-3 | 293 | 329 | 140 | 160 | 4.85 | % | 5 years | OMFIT 2015-3 | 293 | 329 | 107 | 130 | 5.23 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2016-3 | OMFIT 2016-3 | 350 | 397 | 280 | 353 | 4.40 | % | 5 years | OMFIT 2016-3 | 350 | 397 | 212 | 290 | 4.58 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2018-1 | OMFIT 2018-1 | 632 | 650 | 478 | 519 | 3.68 | % | 3 years | OMFIT 2018-1 | 632 | 650 | 381 | 423 | 3.78 | % | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2018-2 | OMFIT 2018-2 | 368 | 381 | 350 | 400 | 3.87 | % | 5 years | OMFIT 2018-2 | 368 | 381 | 350 | 400 | 3.87 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2019-1 | OMFIT 2019-1 | 632 | 654 | 449 | 493 | 3.90 | % | 2 years | OMFIT 2019-1 | 632 | 654 | 356 | 402 | 4.01 | % | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2019-2 | OMFIT 2019-2 | 900 | 947 | 900 | 995 | 3.30 | % | 7 years | OMFIT 2019-2 | 900 | 947 | 900 | 995 | 3.30 | % | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2019-A | OMFIT 2019-A | 789 | 892 | 750 | 892 | 3.78 | % | 7 years | OMFIT 2019-A | 789 | 892 | 750 | 892 | 3.78 | % | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2020-1 | OMFIT 2020-1 | 821 | 958 | 821 | 958 | 4.12 | % | 2 years | OMFIT 2020-1 | 821 | 958 | 821 | 958 | 4.12 | % | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2020-2 | OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | OMFIT 2020-2 | 1,000 | 1,053 | 1,000 | 1,053 | 2.03 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2021-1 (c) | 850 | 904 | 850 | 904 | 1.56 | % | 5 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OMFIT 2021-1 | OMFIT 2021-1 | 850 | 904 | 850 | 904 | 1.57 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ODART 2018-1 | ODART 2018-1 | 947 | 964 | 415 | 445 | 3.72 | % | 2 years | ODART 2018-1 | 947 | 964 | 327 | 354 | 3.79 | % | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ODART 2019-1 | ODART 2019-1 | 737 | 750 | 700 | 750 | 3.79 | % | 5 years | ODART 2019-1 | 737 | 750 | 700 | 750 | 3.79 | % | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securitizations | Total securitizations | $ | 9,285 | $ | 9,900 | $ | 7,499 | $ | 8,372 | Total securitizations | $ | 8,971 | $ | 9,564 | $ | 6,955 | $ | 7,812 |
(dollars in millions) | Advance Maximum Balance | Amount Drawn | ||||||||||||||||||||||||
$ | 850 | $ | ||||||||||||||||||||||||
— | ||||||||||||||||||||||||||
OneMain Financial Funding VII, LLC | 850 | — | ||||||||||||||||||||||||
OneMain Financial Funding IX, LLC | 850 | — | ||||||||||||||||||||||||
Seine River Funding, LLC | 650 | — | ||||||||||||||||||||||||
Mystic River Funding, LLC | 600 | — | ||||||||||||||||||||||||
Chicago River Funding, LLC | 500 | — | ||||||||||||||||||||||||
Columbia River Funding, LLC | — | |||||||||||||||||||||||||
Hudson River Funding, LLC | 500 | — | ||||||||||||||||||||||||
OneMain Financial Funding VIII, LLC | 500 | — | ||||||||||||||||||||||||
Thayer Brook Funding, LLC | 500 | — | ||||||||||||||||||||||||
Hubbard River Funding, LLC | 250 | — | ||||||||||||||||||||||||
New River Funding Trust | 250 | — | ||||||||||||||||||||||||
River Thames Funding, LLC | 250 | — | ||||||||||||||||||||||||
St. Lawrence River Funding, LLC | 250 | — | ||||||||||||||||||||||||
Total | $ | 7,300 | $ | — |
Off-Balance Sheet Arrangements |
Critical Accounting Policies and Estimates |
Recent Accounting Pronouncements |
Seasonality |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. Controls and Procedures. |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs* | ||||||||||||||||||||||
April 1 - April 30 | — | $ | — | $ | — | $ | 154,687,295 | |||||||||||||||||||
May 1 - May 31 | 385,088 | 54.87 | 385,088 | 133,558,152 | ||||||||||||||||||||||
June 1 - June 30 | 227,267 | 59.01 | 227,267 | $ | 120,146,427 | |||||||||||||||||||||
Total | 612,355 | $ | 56.41 | 612,355 | ||||||||||||||||||||||
Period | Total Number of Shares Purchased (a) | Average Price paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (b) | ||||||||||||||||||||||
July 1 - July 31 | 132,376 | $ | 59.73 | 132,376 | $ | 112,239,658 | ||||||||||||||||||||
August 1 - August 31 | 2,009,513 | 58.26 | 309,513 | 94,383,679 | ||||||||||||||||||||||
September 1 - September 30 | 293,600 | 56.51 | 293,600 | 77,791,092 | ||||||||||||||||||||||
Total | 2,435,489 | $ | 58.13 | 735,489 | ||||||||||||||||||||||
Item 3. Defaults Upon Senior Securities. |
Item 4. Mine Safety Disclosures. |
Item 5. Other Information. |
Item 6. Exhibit Index. |
OMH Signature |
ONEMAIN HOLDINGS, INC. | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | By: | /s/ Micah R. Conrad | ||||||||||||
Micah R. Conrad | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |
OMFC Signature |
ONEMAIN FINANCE CORPORATION | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | By: | /s/ Micah R. Conrad | ||||||||||||
Micah R. Conrad | ||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||
(Duly Authorized Officer and Principal Financial Officer) |